0001006837-22-000015 | 10-K | XBRL Viewer

(50.3)

6.7

(57.0)

(4.0)

Other

2.1

Other comprehensive (loss) income

(97.4)

(92.0)

(5.4)

237.2

228.2

9.0

Ending balance (in shares) at Dec. 31, 2020

76.7

Ending balance at Dec. 31, 2020

600.2

559.8

$ 0.1

355.7

(4.2)

(188.7)

396.9

40.4

Beginning balance at Dec. 31, 2019

21.6

Temporary Equity

Fair value adjustment of redeemable noncontrolling interest

1.3

Preferred stock accretion

(2.0)

2.0

Issuance of preferred stock

0.0

$ 25.0

Series B Preferred Share Conversion

(27.0)

Redemption of Series A and A-2 Preferred Stock

27.0

(50.3)

6.7

(57.0)

(4.0)

Other comprehensive income

(4.7)

1.5

Ending balance at Dec. 31, 2020

15.7

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Share-based compensation

2.4

Fair value adjustment of redeemable noncontrolling interest

0.2

Taxes paid in lieu of shares issued for share-based compensation

(1.0)

Preferred stock dividend

(2.2)

Issuance of common stock (in shares)

1.1

Issuance of common stock

0.2

Series B Preferred Share Conversion

(10.4)

Purchase of preferred stock by subsidiary

(0.3)

(34.9)

(22.2)

(12.7)

9.4

Other

(1.7)

(3.2)

Other comprehensive (loss) income

(229.5)

(227.5)

(2.0)

(389.6)

(390.5)

0.9

Ending balance (in shares) at Dec. 31, 2021

77.8

Ending balance at Dec. 31, 2021

(56.2)

(84.3)

$ 0.1

330.6

$ (5.2)

$ (416.2)

$ 6.4

28.1

Temporary Equity

Fair value adjustment of redeemable noncontrolling interest

0.1

Issuance of preferred stock

$ 19.1

Redemption of Series A and A-2 Preferred Stock

(10.4)

(34.9)

$ (22.2)

$ (12.7)

9.4

Ending balance at Dec. 31, 2021

(6.7)

$ 68.1

[1]	Inclusive of other comprehensive income, foreign currency cumulative translation adjustments totaled $7.3 million and $13.4 million as of December 31, 2021 and 2020, respectively.

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities
Net loss	$ (236.2)	$ (102.1)
Less: Loss from discontinued operations, net of tax	(149.9)	(48.4)
Loss from continuing operations	(86.3)	(53.7)
Adjustments to reconcile net loss to cash provided by operating activities
Share-based compensation expense	2.4	2.9
Depreciation and amortization	37.6	26.8
Amortization of deferred financing costs and debt discount	10.5	15.1
Amortization of discount on investments, net	0.0	(0.1)
Loss on extinguishment of debt	12.5	9.4
Loss from equity investees	2.8	3.4
Asset impairment expense	2.8	13.7
Net realized and unrealized gains on investments	0.0	(72.5)
Deferred income taxes	2.0	(4.7)
Other operating activities	(4.2)	(10.3)
Changes in assets and liabilities, net of acquisitions:
Accounts receivable	(38.3)	92.9
Contract assets	(19.1)	(36.1)
Other current assets	(0.3)	4.8
Other assets	10.6	9.9
Accounts payable	57.9	5.8
Accrued liabilities	8.5	(4.7)
Contract liabilities	7.2	(17.5)
Other current liabilities	(2.2)	(17.0)
Other liabilities	(10.9)	(23.3)
Cash provided by operating activities	(6.5)	(55.2)
Cash provided by discontinued operating activities	33.5	96.3
Cash used in continuing operating activities	27.0	41.1
Cash flows from investing activities
Purchase of property, plant and equipment	(24.1)	(17.8)
Proceeds from disposal of property, plant and equipment	13.2	41.2
Sale of investments	0.0	0.6
Sale of equity method investments	0.0	85.5
Cash received from dispositions, net of cash disposed	74.0	147.4
Extraordinary dividend received in business disposition	62.5	0.0
Cash paid for acquisitions, net of cash acquired	128.5	0.0
Other investing activities	1.0	5.0
Cash (used in) provided by continuing investing activities	(1.9)	261.9
Cash used in discontinued investing activities	(221.3)	(99.8)
Cash (used in) provided by investing activities	(223.2)	162.1
Cash flows from financing activities
Proceeds from (Repayments of) debt obligations	487.6	(4.1)
Principal payments on debt obligations	(458.1)	(181.9)
Proceeds from sale of preferred stock	0.0	38.0
Cash received by subsidiary to issue preferred stock	10.5	37.2
Redemption of preferred stock	(10.4)	0.0
Transactions with noncontrolling interests	(13.5)	(62.9)
Other financing activities	(4.2)	(8.8)
Cash provided by (used in) continuing financing activities	11.9	(182.5)
Cash used in discontinued financing activities	(7.6)	(22.0)
Cash provided by (used in) financing activities	4.3	(204.5)
Effects of exchange rate changes on cash, cash equivalents and restricted cash	(1.3)	1.1
Net decrease in cash and cash equivalents, including restricted cash and cash classified within assets held for sale	(193.2)	(0.2)
Less: Net decrease in cash and cash equivalents from discontinued operations	(195.4)	(20.8)
Net change in cash, cash equivalents and restricted cash	2.2	20.6
Cash, cash equivalents and restricted cash, beginning of period	45.3	24.7
Cash, cash equivalents and restricted cash, end of period	$ 47.5	$ 45.3

Consolidated Statements of Stockholders’ (Deficit) Equity (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Other comprehensive (loss) income	$ (389.6)	$ 237.2
Foreign Currency Cumulative Translation Adjustments
Other comprehensive (loss) income	$ 7.3	$ 13.4

Organization and Business	12 Months Ended
Organization and Business	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Business	1. Organization and Business INNOVATE Corp. ("INNOVATE", formerly known as HC2 Holdings, Inc.) and, together with its consolidated subsidiaries, the "Company", "we" and "our") is a diversified holding company that has a portfolio of subsidiaries in a variety of operating segments. We seek to grow these businesses so that they can generate long-term sustainable free cash flow and attractive returns in order to maximize value for all stakeholders. While the Company generally intends to acquire controlling equity interests in its operating subsidiaries, the Company may invest to a limited extent in a variety of debt instruments or noncontrolling equity interest positions. The Company’s shares of common stock trade on the NYSE under the symbol "VATE". The Company currently has three reportable segments, plus our Other segment, based on management’s organization of the enterprise: Infrastructure, Life Sciences, Spectrum, and Other which includes businesses that do not meet the separately reportable segment thresholds. 1.Our Infrastructure segment is comprised of DBM Global Inc. ("DBMG") and its wholly-owned subsidiaries. DBMG is a fully integrated Industrial Construction, Structural Steel and Facility Maintenance provider that provides fabrication and erection of structural steel and heavy steel plate services and also fabricates trusses and girders and specializes in the fabrication and erection of large-diameter water pipe and water storage tanks, as well as 3-D Building Information Modeling (“BIM”) and detailing. DBMG provides these services on commercial, industrial, and infrastructure construction projects such as high- and low-rise buildings and office complexes, hotels and casinos, convention centers, sports arenas and stadiums, shopping malls, hospitals, dams, bridges, mines, metal processing, refineries, pulp and paper mills and power plants. Through GrayWolf, DBMG provides integrated solutions for digital engineering, modeling and detailing, construction, heavy equipment installation and facility services including maintenance, repair, and installation to a diverse range of end markets. Through Aitken Manufacturing, DBMG manufactures pollution control scrubbers, tunnel liners, pressure vessels, strainers, filters, separators and a variety of customized products. Through the recently acquired Banker Steel, DBMG provides full-service fabricated structural steel and erection services primarily for the East Coast and Southeast commercial and industrial construction market, in addition to full design-assist services. The Company maintains an approximately 91% controlling interest in DBMG. 2.Our Life Sciences segment is comprised of Pansend Life Sciences, LLC ("Pansend"). Pansend maintains controlling interests of approximately 80% in Genovel Orthopedics, Inc. ("Genovel"), which seeks to develop products to treat early osteoarthritis of the knee and approximately 56% in R2 Technologies, Inc. ("R2"), which develops aesthetic and medical technologies for the skin. Pansend also invests in other early stage or developmental stage healthcare companies including an approximately 47% interest in MediBeacon Inc. ("MediBeacon"), and an approximately 26% interest in Triple Ring Technologies, Inc ("Triple Ring"). 3.Our Spectrum segment is comprised of HC2 Broadcasting Holdings Inc. ("Broadcasting") and its subsidiaries. Broadcasting strategically acquires and operates over-the-air broadcasting stations across the United States. In addition, Broadcasting, through its wholly-owned subsidiary, HC2 Network Inc. ("Network"), operates Azteca America, a Spanish-language broadcast network offering high quality Hispanic content to a diverse demographic across the United States. The Company maintains a 98% controlling interest in Broadcasting and maintains a controlling interest of approximately 77%, inclusive of approximately 10% proxy and voting rights from minority holders of DTV America Corporation ("DTV"). 4.Our Other segment represents all other businesses or investments that do not meet the definition of a segment individually or in the aggregate. Included in the Other segment is the former Marine Services segment, which includes its holding company, Global Marine Holdings, LLC ("GMH"), in which the Company maintains approximately 73% controlling interest. GMH results include the current and prior year equity investment in HMN Technologies Co., Ltd. (“HMN”), its 19% equity method investment, and the discontinued operations of Global Marine Systems Limited ("GMSL"). Also included in the Other segment is the discontinued operations of Beyond6, Inc. ("Beyond6"), Continental Insurance Group ("CIG") and PTGi International Carrier Services, Inc. and its subsidiaries ("ICS").

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Principles of Consolidation

The Consolidated Financial Statements include the accounts of the Company, its wholly owned subsidiaries and all other subsidiaries over which the Company exerts control. All intercompany profits, transactions and balances have been eliminated in consolidation. For the years ended December 31, 2021 and December 31, 2020, the results of DBMG, Genovel, R2, Broadcasting, CIG, GMH and Beyond6 have been consolidated into the Company’s results based on guidance from the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC" 810, Consolidation). The remaining interests not owned by the Company are presented as a noncontrolling interest component of total equity.

Basis of Presentation

The accompanying Consolidated Financial Statements of the Company included herein have been prepared in U.S. dollars in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain prior amounts have been reclassified or combined to conform to the current year presentation.

Liquidity

At this time, we believe that we will be able to continue to meet our liquidity requirements and fund our fixed obligations (such as debt service and operating leases) and other cash needs for our operations for at least the next twelve months from the issuance of the Consolidated Financial Statements through a combination of available cash and distributions from our subsidiaries. The ability of INNOVATE’s subsidiaries to make distributions to INNOVATE is subject to numerous factors, including restrictions contained in each subsidiary’s financing agreements, availability of sufficient funds at each subsidiary and the approval of such payment by each subsidiary’s board of directors, which must consider various factors, including general economic and business conditions, tax considerations, strategic plans, financial results and condition, expansion plans, any contractual, legal or regulatory restrictions on the payment of dividends, and such other factors each subsidiary’s board of directors considers relevant. Although the Company believes, to the extent needed, that it will be able to raise additional equity capital, refinance indebtedness or preferred stock, enter into other financing arrangements or engage in asset sales and sales of certain investments sufficient to fund any cash needs that we are not able to satisfy with the funds on hand or expected to be provided by our subsidiaries, there can be no assurance that it will be able to do so on terms satisfactory to the Company, if at all. Such financing options, if pursued, may also ultimately have the effect of negatively impacting our liquidity profile and prospects over the long-term. Our ability to sell assets and certain of our investments to meet our existing financing needs may also be limited by our existing financing instruments. In addition, the sale of assets or the Company’s investments may also make the Company less attractive to potential investors or future financing partners.

COVID-19

There are many uncertainties regarding the current coronavirus ("COVID-19") pandemic, and the Company continues to closely monitor the impact of the COVID-19 pandemic, including the effectiveness of the vaccine programs, on all aspects of its business, including how it will impact its customers, employees, suppliers, vendors, business partners and distribution channels and any potential prolonging or worsening of the pandemic due to COVID-19 variants. We are unable to predict the impact that COVID-19 will have on the Company's financial position and operating results due to numerous uncertainties. However, as the pandemic continues, it may have an adverse effect on the Company’s results of operations, financial condition, or liquidity.

COVID-19 has continued to cause supply chain challenges related to labor shortages and supply chain disruptions, which may create significant delays in our ability to complete projects or deliver products. The receipt of material from impacted areas has been slowed or disrupted and our suppliers are expected to face similar challenges in fulfilling orders. In addition, reductions in the number of ocean carrier voyages, ocean freight capacity issues, congestion at major international gateways and other economic factors continue to persist worldwide due to COVID-19 and worldwide supply impacts as there is much greater demand for shipping and reduced capacity and equipment, which has resulted in recent price increases per shipping container. In addition, in the United States, trucking costs have risen dramatically due to driver shortages and increased labor costs, as well as new federal and state safety, environmental and labor regulations. These changes, as well as COVID-19 related state and local restrictions on domestic trucking and the operation of distribution centers, may disrupt our supply chain, which may result in a delay in the completion of our projects and cause us to incur significant additional costs. Although we may attempt to pass on certain of these increased costs to our customers, we may not be able to pass all of these cost increases on to our customers. As a result, our margins may be adversely impacted by such cost increases. These supply chain disruptions and transportation challenges could have a material adverse effect on our results of operations or financial condition.

The Company expects to continue to assess the evolving impact of the COVID-19 pandemic.

Cash and Cash Equivalents

Cash and cash equivalents are comprised principally of amounts in money market accounts with original maturities of three months or less.

Acquisitions

The Company’s acquisitions are accounted for using the acquisition method of accounting, which requires, among other things, that assets acquired and liabilities assumed be recognized at their estimated fair values as of the acquisition date. Estimates of fair value included in the Consolidated Financial Statements, in conformity with ASC 820, Fair Value Measurements and Disclosures, represent the Company’s best estimates and valuations developed, when needed, with the assistance of independent appraisers or, where such valuations have not yet been completed or are not available, industry data and trends and by reference to relevant market rates and transactions. Such estimates and assumptions are inherently subject to significant uncertainties and contingencies beyond the control of the Company. Accordingly, the Company cannot provide assurance that the estimates, assumptions, and values reflected in the valuations will be realized, and actual results could vary materially.

Equity Method Investments

The Company utilizes the equity method to account for investments when it possesses the ability to exercise significant influence, but not control, over the operating and financial policies of the investee. The ability to exercise significant influence is presumed when an investor possesses more than 20% of the voting interests of the investee, such as with our investments in MediBeacon and Triple Ring, of which we own an approximately 47% interest in MediBeacon and an approximately 26% interest in Triple Ring. This presumption may be overcome based on specific facts and circumstances that demonstrate that the ability to exercise significant influence is restricted, such as with our 19% equity method investment in HMN, as we continue to maintain a seat on the entity's board of directors and can exert significant influence. The Company applies the equity method to investments in common stock and to other investments when such other investments possess substantially identical subordinated interests to common stock. In applying the equity method, the Company records the investment at cost and subsequently increases or decreases the carrying amount of the investment by its proportionate share of the net earnings or losses in (Loss) income from equity investees and other comprehensive income of the investee. The Company records dividends or other equity distributions as reductions in the carrying value of the investment. In the event that net losses of the investee reduce the carrying amount to zero, additional net losses may be recorded if other investments in the investee are at-risk, even if the Company has not committed to provide financial support to the investee. Such additional equity method losses, if any, are based upon the change in the Company's claim on the investee’s book value.

Fair Value Measurements

General accounting principles for Fair Value Measurements and Disclosures define fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. These principles also establish a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value and describes three levels of inputs that may be used to measure fair value:

Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities. Active markets are defined as having the following characteristics for the measured asset/liability: (i) many transactions, (ii) current prices, (iii) price quotes not varying substantially among market makers, (iv) narrow bid/ask spreads and (v) most information publicly available. The Company’s Level 1 financial instruments consist primarily of publicly traded equity securities and highly liquid government bonds for which quoted market prices in active markets are available.

Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or market standard valuation techniques and assumptions with significant inputs that are observable or can be corroborated by

observable market data for substantially the full term of the assets or liabilities. Such observable inputs include benchmarking prices for similar assets in active, liquid markets, quoted prices in markets that are not active and observable yields and spreads in the market. The Company’s Level 2 financial instruments include corporate and municipal fixed maturity securities, mortgage-backed non-affiliated common stocks priced using observable inputs. Level 2 inputs include benchmark yields, reported trades, corroborated broker/dealer quotes, issuer spreads and benchmark securities. When non-binding broker quotes can be corroborated by comparison to similar securities priced using observable inputs, they are classified as Level 2.

Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the related assets or liabilities. Level 3 assets and liabilities include those whose value is determined using market standard valuation techniques. When observable inputs are not available, the market standard techniques for determining the estimated fair value of certain securities that trade infrequently, and therefore have little transparency, rely on inputs that are significant to the estimated fair value and that are not observable in the market or cannot be derived principally from or corroborated by observable market data. These unobservable inputs can be based in large part on management judgment or estimation and cannot be supported by reference to market activity. Even though unobservable, management believes these inputs are based on assumptions deemed appropriate given the circumstances and consistent with what other market participants would use when pricing similar assets and liabilities. For the Company’s invested assets, most of which relate to the 2020 held-for-sale assets of the Insurance segment, this category primarily includes private placements, asset-backed securities, and to a lesser extent, certain residential and commercial mortgage-backed securities, among others. Prices are determined using valuation methodologies such as discounted cash flow models and other similar techniques. Non-binding broker quotes, which are utilized when pricing service information is not available, are reviewed for reasonableness based on the Company’s understanding of the market, and are generally considered Level 3. Under certain circumstances, based on its observations of transactions in active markets, the Company may conclude the prices received from independent third-party pricing services or brokers are not reasonable or reflective of market activity. In those instances, the Company would apply internally developed valuation techniques to the related assets or liabilities.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for any given financial instrument is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument.

The Company may utilize information from third parties, such as pricing services and brokers, to assist in determining the fair value for certain assets and liabilities; however, management is ultimately responsible for all fair values presented in the Company’s financial statements. This includes responsibility for monitoring the fair value process, ensuring objective and reliable valuation practices and pricing of assets and liabilities, and approving changes to valuation methodologies and pricing sources. The selection of the valuation technique(s) to apply considers the definition of an exit price and the nature of the asset or liability being valued and significant expertise and judgment is required.

Accounts Receivable

Accounts receivable are stated at amounts due from customers net of an allowance for doubtful accounts. Our allowance for doubtful accounts considers historical experience, the age of certain receivable balances, credit history, current economic conditions and other factors that may affect the counterparty’s ability to pay.

The policy for determining past due status is based on the contractual payment terms of each customer. Once collection efforts by the Company are exhausted, the determination for charging off uncollectible receivables is made. For the years ended December 31, 2021 and 2020, the Company recorded bad debt expense of $0.1 million and $0.6 million, respectively.

Inventory

Inventory is valued at the lower of cost or net realizable value under the first-in, first-out method. Provision for obsolescence is made where appropriate and is charged to cost of revenue in the consolidated statements of operations. Short-term work in progress on contracts is stated at cost less foreseeable losses. These costs include only direct labor and expenses incurred to date and exclude any allocation of overhead. The policy for long-term work in progress contracts is disclosed within the Revenue and Cost Recognition accounting policy.

Accounting for Income Taxes

We recognize deferred tax assets and liabilities for the expected future tax consequences of transactions and events. Under this method, deferred tax assets and liabilities are determined based on the difference between the book basis and the tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. If necessary, deferred tax assets are reduced by a valuation allowance to an amount that is determined to be more likely than not recoverable. We must make significant estimates and assumptions about future taxable income and future tax consequences when determining the amount of the valuation allowance. The additional guidance provided by ASC No. 740, “Income Taxes” (“ASC 740”), clarifies the accounting for uncertainty in income taxes recognized in the financial statements. Expected outcomes of current or anticipated tax examinations, refund claims and tax-related litigation and estimates regarding additional tax liability (including interest and penalties thereon) or refunds resulting therefrom will be recorded based on the guidance provided by ASC 740 to the extent applicable.

We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. These assessments of uncertain tax positions contain judgments related to the interpretation of tax regulations in the jurisdictions in which we transact business. The judgments and estimates made at a point in time may change based on the outcome of tax audits, expiration of statutes of limitations, as well as changes to, or further interpretations of, tax laws and regulations.

At December 31, 2021, our U.S. and foreign companies have significant deferred tax assets resulting from tax loss carryforwards. Additionally, the deferred tax assets generated by certain businesses that do not qualify to be included in the INNOVATE Corp. U.S. consolidated income tax return have been reduced by a full valuation allowance. Based on consideration of both positive and negative evidence, we determined that it was more likely than not that the net deferred tax assets of the INNOVATE Corp. U.S. consolidated filing group will not be realized. Therefore, a valuation allowance was maintained against the INNOVATE Corp. U.S. consolidated filing group’s net deferred tax assets as of December 31, 2021. The appropriateness and amount of the valuation allowance are based on cumulative history of losses and our assumptions about the future taxable income of each affiliate and the timing of the reversal of deferred tax assets and liabilities.

In relation to tax effects for accumulated OCI, our policy is to release the tax effects of amounts reclassified from accumulated OCI to pre-tax income (loss) from continuing operations. Any remaining tax effect in accumulated OCI is released following a portfolio approach.

Property, Plant and Equipment

Property, plant and equipment are stated at cost less accumulated depreciation, which is provided on the straight-line method over the estimated useful lives of the assets. Cost includes major expenditures for improvements and replacements which extend useful lives or increase capacity of the assets as well as expenditures necessary to place assets into readiness for use. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its intended use. Cost includes finance costs incurred prior to the asset being available for use. Expenditures for maintenance and repairs are expensed as incurred.

Costs for internal use software that are incurred in the preliminary project stage and in the post-implementation stage are expensed as incurred. Costs incurred during the application development stage are capitalized and amortized over the estimated useful life of the software, beginning when the software project is ready for its intended use, over the estimated useful life of the software.

Depreciation is determined on a straight-line basis over the estimated useful lives of the assets, which range from 5 to 40 years for buildings and leasehold improvements, 3 to 15 years for equipment, furniture and fixtures, and 3 to 20 years for transportation equipment. Leasehold improvements are amortized over the lives of the leases or estimated useful lives of the assets, whichever is shorter. Assets under construction are not depreciated until they are complete and available for use.

When assets are sold or otherwise retired, the costs and accumulated depreciation are removed from the books and the resulting gain or loss is included in operating results. Property, plant and equipment that have been included as part of the assets held for sale are no longer depreciated from the time that they are classified as such. The Company periodically evaluates the carrying value of its property, plant and equipment based upon the estimated cash flows to be generated by the related assets. If impairment is indicated, a loss is recognized.

Goodwill and Other Intangible Assets

Under ASC 350, Intangibles - Goodwill and Other ("ASC 350"), goodwill and indefinite lived intangible assets are not amortized but are reviewed annually for impairment, or more frequently, if impairment indicators arise. Intangible assets that have finite lives are amortized over their estimated useful lives and are subject to the provisions of ASC 360, Property, plant, and equipment ("ASC 360").

Goodwill impairment is tested at least annually (October 1st) or when factors indicate potential impairment using a two-step process that begins with a qualitative evaluation of each reporting unit. If such test indicates potential for impairment, a one-step quantitative test is performed and, if there is excess of a reporting unit's carrying amount over its fair value, impairment is recorded, not to exceed the total amount of goodwill allocated to the reporting unit.

Estimating the fair value of a reporting unit requires various assumptions including projections of future cash flows, perpetual growth rates and discount rates. The assumptions about future cash flows and growth rates are based on the Company’s assessment of a number of factors, including the reporting unit’s recent performance against budget, performance in the market that the reporting unit serves, and industry and general economic data from third-party sources. Discount rate assumptions are based on an assessment of the risk inherent in those future cash flows. Changes to the underlying businesses could affect the future cash flows, which in turn could affect the fair value of the reporting unit.

Intangible assets not subject to amortization consist of certain licenses. Such indefinite lived intangible assets are tested for impairment annually, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The impairment test shall consist of a comparison of the fair value of an intangible asset with its carrying amount. If the carrying amount of the intangible asset exceeds its fair value, an impairment loss shall be recognized in an amount equal to the excess.

Intangible assets subject to amortization consists of certain trade names, customer contracts and developed technology. These finite lived intangible assets are amortized based on their estimated useful lives. Such assets are subject to the impairment provisions of ASC 360, wherein impairment is recognized and measured only if there are events and circumstances that indicate that the carrying amount may not be recoverable. The carrying amount is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use of the asset group. An impairment loss is recorded if after determining that it is not recoverable, the carrying amount exceeds the fair value of the asset.

In addition to the foregoing, the Company reviews its goodwill and intangible assets for possible impairment whenever events or circumstances indicate that the carrying amounts of assets may not be recoverable. The factors that the Company considers important, and which could trigger an impairment review, include, but are not limited to: a more likely than not expectation of selling or disposing all, or a portion, of a reporting unit; a significant decline in the market value of our common stock or debt securities for a sustained period; a material adverse change in economic, financial market, industry or sector trends; a material failure to achieve operating results relative to historical levels or projected future levels; and significant changes in operations or business strategy. For details regarding goodwill impairment, see Note 8. Goodwill and Intangibles, net.

Licensing: Television broadcast licenses generally are granted for eight-year periods. They are renewable after application and reviewed by the FCC and historically are renewed except in rare cases in which a petition to deny, a complaint or an adverse finding as to the licensee's qualifications results in loss of the license.

Valuation of Long-lived Assets

The Company reviews long-lived assets for impairment whenever events or changes indicate that the carrying amount of an asset may not be recoverable. In making such evaluations, the Company compares the expected undiscounted future cash flows to the carrying amount of the assets. If the total of the expected undiscounted future cash flows is less than the carrying amount of the assets, the Company is required to make estimates of the fair value of the long-lived assets in order to calculate the impairment loss equal to the difference between the fair value and carrying value of the assets.

The Company makes significant assumptions and estimates in this process regarding matters that are inherently uncertain, such as determining asset groups and estimating future cash flows, remaining useful lives, discount rates and growth rates. The resulting undiscounted cash flows are projected over an extended period of time, which subjects those assumptions and estimates to an even larger degree of uncertainty. While the Company believes that its estimates are reasonable, different assumptions could materially affect the valuation of the long-lived assets. The Company derives future cash flow estimates from its historical experience and its internal business plans, which include consideration of industry trends, competitive actions, technology changes, regulatory actions, available financial resources for marketing and capital expenditures and changes in its underlying cost structure.

The Company makes assumptions about the remaining useful life of its long-lived assets. The assumptions are based on the average life of its historical capital asset additions and its historical asset purchase trend. In some cases, due to the nature of a particular industry in which the company operates, the Company may assume that technology changes in such industry render all associated assets, including equipment, obsolete with no salvage value after their useful lives. In certain circumstances in which the underlying assets could be leased for an additional period of time or salvaged, the Company includes such estimated cash flows in its estimate.

The estimate of the appropriate discount rate to be used to apply the present value technique in determining fair value was the Company’s weighted average cost of capital which is based on the effective rate of its debt obligations at the current market values (for periods during which the Company had debt obligations) as well as the current volatility and trading value of the Company’s common stock.

Leases

The Company accounts for leases in accordance with ASC 842, Leases, which requires the balance sheet recognition of lease assets and lease liabilities by lessees for those leases classified as operating and finance leases. The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease assets, current operating lease liabilities and long-term operating lease liabilities in the Consolidated Balance Sheets and are recognized based on the present value of lease payments over the lease term at the commencement date. Finance leases are included in finance lease assets, current finance lease liabilities and long-term finance lease liabilities in the Consolidated Balance Sheets and are recognized based on the present value of lease payments over the lease term at commencement date. The majority of the Company’s leases do not provide an implicit rate of return; therefore, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. For lease agreements that contain non-lease components, the Company elected to combine lease and non-lease components as a single lease component.

The Company has operating leases for land, office space, and certain Company vehicles and equipment and finance leases for certain Company vehicles and equipment. The leases are expiring between 2022 and 2045. Leases with an initial term of 12 months or less are not recorded on the balance sheets. Lease expense is recognized on a straight-line basis over the lease term. For purposes of calculating operating lease liabilities, lease terms may be deemed to include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. As of December 31, 2021, the operating lease liability does not include any options to extend or terminate leases.

Presentation of Taxes Collected

The Company reports a value-added tax assessed by a governmental authority that is directly imposed on a revenue-producing transaction between the Company and a customer on a net basis (excluded from revenues).

Foreign Currency Transactions

Foreign currency transactions are transactions denominated in a currency other than a subsidiary’s functional currency. A change in the exchange rates between a subsidiary’s functional currency and the currency in which a transaction is denominated increases or decreases the expected amount of functional currency cash flows upon settlement of the transaction. That increase or decrease in expected functional currency cash flows is reported by the Company as a foreign currency transaction gain (loss). The primary component of the Company’s foreign currency transaction gain (loss) is due to agreements in place with certain subsidiaries in foreign countries regarding intercompany transactions. The Company anticipates repayment of these transactions in the foreseeable future, and recognizes the realized and unrealized gains or losses on these transactions that result from foreign currency changes in the period in which they occur as foreign currency transaction gain (loss).

Foreign Currency Translation

The assets and liabilities of the Company’s foreign subsidiaries are translated at the exchange rates in effect on the reporting date. Income and expenses are translated at the average exchange rate during the period. The net effect of such translation gains and losses are reflected within AOCI in the stockholders’ equity section of the consolidated balance sheets. If there is a planned or completed sale or liquidation of the Company's ownership in a foreign operation, the relevant foreign currency translation adjustment is recognized in the consolidated statement of operations.

Convertible Instruments

The Company evaluates and accounts for conversion options embedded in convertible instruments in accordance with ASC 815, Derivatives and Hedging Activities. Applicable U.S. Generally Accepted Accounting Principals ("GAAP") requires companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not remeasured at fair value under other GAAP with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. The Company accounts for convertible instruments, when it has been determined that the embedded conversion options should not be bifurcated from their host instruments, as follows: The Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their stated date of redemption. The Company accounts for the conversion of convertible debt when a conversion option has been bifurcated using the general extinguishment standards. The debt and equity linked derivatives are removed at their carrying amounts and the shares issued are measured at their then-current fair value, with any difference recorded as a gain or loss on extinguishment of the two separate accounting liabilities.

Deferred Financing Costs

The Company capitalizes certain expenses incurred in connection with its debt and line of credit obligations and amortizes them over the term of the respective debt agreement. The amortization expense of the deferred financing costs is included in interest expense on the consolidated statements of operations. If the Company extinguishes portions of its debt prior to the maturity date, deferred financing costs are charged to expense on a pro-rata basis and are included in loss on early extinguishment or restructuring of debt on the consolidated statements of operations.

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of net revenue and expenses during the reporting period. Actual results may differ from these estimates. Significant estimates include allowance for doubtful accounts receivable, the extent of progress towards completion on contracts, contract revenue and costs on long-term contracts, valuation of certain investments and the insurance reserves, market assumptions used in estimating the fair values of certain assets and liabilities, the calculation used in determining the fair value of INNOVATE’s stock options required by ASC 718, Compensation - Stock Compensation ("ASC 718"), income taxes and various other contingencies.

Estimates of fair value represent the Company’s best estimates developed with the assistance of independent appraisals or various valuation techniques and, where the foregoing have not yet been completed or are not available, industry data and trends and by reference to relevant market rates and transactions. The estimates and assumptions are inherently subject to significant uncertainties and contingencies beyond the

control of the Company. Accordingly, the Company cannot provide assurance that the estimates, assumptions, and values reflected in the valuations will be realized, and actual results could vary materially.

Share-Based Compensation

The Company accounts for share-based compensation issued to employees and non-employees in accordance with the provisions of ASC 718. All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for using a fair-value based method. The Company records share-based compensation expense for all new and unvested stock options that are ultimately expected to vest as the requisite service is rendered. The Company issues new shares of common stock upon the exercise of stock options.

The Company uses a Black-Scholes option valuation model to determine the grant date fair value of share-based compensation under ASC 718. The Black-Scholes model incorporates various assumptions including the expected term of awards, volatility of stock price, risk-free rates of return and dividend yield. The expected term of an award is no less than the option vesting period and is based on the Company’s historical experience. Expected volatility is based upon the historical volatility of the Company’s stock price. The risk-free interest rate is approximated using rates available on U.S. Treasury securities with a remaining term similar to the option’s expected life. The Company uses a dividend yield of zero in the Black-Scholes option valuation model as it does not anticipate paying cash dividends in the foreseeable future. Share-based compensation is recorded net of actual forfeitures.

Concentrations of Credit Risk and of Significant Suppliers

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, and accounts receivable. The Company maintains all cash and cash equivalents at accredited financial institutions, in amounts that exceed federally insured limits. The Company has not experienced any losses in such accounts. The Company holds $4.7 million and $8.5 million cash in foreign accounts as of December 31, 2021 and 2020, respectively. The Company attempts to minimize the risks related to cash and cash equivalents by investing in a range of financial instruments as defined by the Company. Concentrations of credit risk with respect to accounts receivable are limited by the large number of customers comprising the Company's customer base and their geographic and business dispersion. The Company performs ongoing credit evaluations of the customers' financial condition and generally does not require collateral to support customer receivables.

For the year ended December 31, 2021, one customer exceeded 10% of the Company's revenue and accounted for approximately 13.9%. No customers accounted for more than 10% of accounts receivable. For the fiscal year ended December 31, 2020, no customer accounted for more than 10% of the Company's revenue and no customers accounted for more than 10% of accounts receivable.

For the year ended December 31, 2021, one supplier accounted for more than 10% of the Company's accounts payable for approximately 15.1%. For the fiscal year ended December 31, 2020, no suppliers accounted for more than 10% of the Company's accounts payable.

Income (Loss) Per Common Share

Basic income (loss) per common share is computed using the weighted average number of shares of common stock outstanding during the period. Diluted income (loss) per common share is computed using the weighted average number of shares of common stock, adjusted for the dilutive effect of potential common stock and related income from continuing operations, net of tax. Potential common stock, computed using the treasury stock method or the if-converted method, includes options, warrants, restricted stock, restricted stock units and convertible preferred stock.

In periods when the Company generates income, the Company calculates basic Earnings Per Share ("EPS") using the two-class method, pursuant to ASC No. 260, Earnings Per Share. The two-class method is required as the shares of the Company’s preferred stock qualify as participating securities, having the right to receive dividends should dividends be declared on common stock. Under this method, earnings for the period are allocated to the common stock and preferred stock to the extent that each security may share in earnings as if all of the earnings for the period had been distributed. The Company does not use the two-class method in periods when it generates a loss as the holders of the preferred stock do not participate in losses.

Discontinued Operations

In accordance with ASC 205-20, Presentation of Financial Statements - Discontinued Operations, the Company reports the results of operations of a business as discontinued operations if a disposal represents a strategic shift that has or will have a major effect on the Company's operations and financial results when the business is disposed of or classified as held-for-sale. Under ASC 360, Property, Plant and Equipment, assets may be classified as held-for-sale even though the discontinued operations criteria is not met. The results of discontinued operations are reported in Loss from discontinued operations in the Consolidated Statement of Operations.

Other Income (Loss)

The following table provides information relating to Other income (in millions):


	Years Ended December 31,
	2021		2020
Loss on embedded derivatives	$	(0.7)	$	(2.8)
Gain on sale of equity method investments	—		71.2
Other income, net	5.0		0.8
Total	$	4.3	$	69.2

Statement of Cash Flows

The following table provides a reconciliation of cash and cash equivalents and restricted cash to amounts reported within the Consolidated Balance Sheets and Consolidated Statements of Cash Flows (in millions):


	December 31,
	2021		2020
Cash and cash equivalents, beginning of period	$	43.8	$	23.3
Restricted cash included in other assets	1.5		1.4
Total cash and cash equivalents and restricted cash	$	45.3	$	24.7

Cash and cash equivalents, end of period	$	45.5	$	43.8
Restricted cash included in other assets	2.0		1.5
Total cash and cash equivalents and restricted cash	$	47.5	$	45.3

Cash and cash equivalents classified in Assets held for sale, beginning of period	$	195.2	$	216.0
Restricted cash classified in Assets held for sale	0.2		0.2
Total cash and cash equivalents and restricted cash classified in Assets held for sale	$	195.4	$	216.2

Cash and cash equivalents classified in Assets held for sale, end of period	$	—	$	195.2
Restricted cash classified in Assets held for sale	—		0.2
Total cash and cash equivalents and restricted cash classified in Assets held for sale	$	—	$	195.4

Supplemental cash flow information:
Cash paid for interest	$	32.6	$	65.1
Cash paid for taxes, net of refunds	$	5.4	$	0.2

Non-cash investing and financing activities:
Property, plant and equipment included in accounts payable	$	1.4	$	4.4

Investments included in accounts payable	$	—	$	17.1
Issuance of preferred stock	$	19.1	$	—
Issuance of redeemable noncontrolling interest	$	40.9	$	—
Extinguishment of convertible note in exchange	$	51.8	$	—
Issuance of convertible note in exchange	$	(51.8)	$	—
Debt assumed in acquisitions	$	6.3	$	—

Reclassification

Certain previous year amounts have been reclassified to conform with current year presentations, as related to the reporting of new balance sheet line items:

•The recast of Beyond6, ICS, and CIG's results to discontinued operations. Further, the reclassification of prior period assets and liabilities have been classified as held for sale. See Note 3. Discontinued Operations for further information;

•As a result of the sale of ICS, and in accordance with ASC 280, the Company no longer considers the results of operations and balance sheets of the retained ICS entities as a separate segment. Formerly the Telecommunications segment, these entities have been reclassified to the Other segment. See Note 17. Operating Segment and Related Information for further information;

•As a result of the sale of Beyond6, and in accordance with ASC 280, the Company no longer considers the results of operations and balance sheets of Beyond6 as a separate segment. Formerly the Clean Energy segment, this entity has been reclassified to the Other segment. See Note 17. Operating Segment and Related Information for further information;

•As a result of the sale of CIG, and in accordance with ASC 280, the Company no longer considers the results of operations and Balance Sheets of CIG as a separate segment. This entity has been reclassified to the Other segment. See Note 17. Operating Segment and Related Information for further information; and

•The recast of prior year earnings per share as a result of the discontinued operations noted above. This includes presenting EPS for Net income (loss) from continuing operations, Net income (loss) from discontinuing operations, and Net income (loss). See Note 18. Basic and Diluted Income (Loss) Per Common Share for further details.

Accounting Pronouncements Adopted in the Current Year

Accounting for Investments-Equity Securities

ASU 2020-01, Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815), was issued by the FASB in January 2020. This update clarifies the interaction between the accounting for investments in equity securities, investment in equity method and certain derivatives instruments. The Company adopted this update as of January 1, 2021 and the update did not have a material impact on the Company's consolidated financial statements.

Accounting for Debt with Conversion Options

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, was issued by the FASB in August 2020. This ASU (1) simplifies the accounting for convertible debt instruments and convertible preferred stock by removing the existing guidance in ASC 470-20, Debt: Debt with Conversion and Other Options, that requires entities to account for beneficial conversion features and cash conversion features in equity, separately from the host convertible debt or preferred stock; (2) revises the scope exception from derivative accounting in ASC 815-40 for freestanding financial instruments and embedded features that are both indexed to the issuer’s own stock and classified in stockholders’ equity, by removing certain criteria required for equity classification; and (3) revises the guidance in ASC 260, Earnings Per Share, to require entities to calculate diluted earnings per share (EPS) for convertible instruments by using the if-converted method. In addition, entities must presume share settlement for purposes of calculating diluted EPS when an instrument may be settled in cash or shares. The standard is effective on January 1, 2024, but the Company elected early adoption as of January 1, 2021. A modified retrospective method of transition was applied, which resulted in no impact to the Company.

Accounting for Contract Assets and Contract Liabilities from Contracts with Customers

ASU 2021-08, Accounting for Contract Assets and Liabilities from Contracts with Customers (Topic 805) was issued by the FASB in October 2021. This update requires that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606, Revenue Recognition (Topic 606). At the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts by assessing how the acquiree applied Topic 606 to determine what to record for the acquired revenue contracts. Generally, this should result in an acquirer recognizing and measuring the acquired contract assets and contract liabilities consistent with how they were recognized and measured in the acquiree's financial statements. The Company adopted this update as of January 1, 2021, and applied the guidance to the Company's acquisition of Banker Steel.

Accounting Pronouncements to be Adopted Subsequent to December 31, 2021

Credit Loss Standard

ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments, was issued by FASB in June 2016. This standard is effective January 1, 2020 (with early adoption permitted). This new standard changes the impairment model for most financial assets that are measured at amortized cost and certain other instruments, including trade receivables, from an incurred loss model to an expected loss model and adds certain new required disclosures. Under the expected loss model, entities will recognize estimated credit losses over the entire contractual term of the instrument rather than delaying recognition of credit losses until it is probable the loss has been incurred. The FASB has voted to delay the effective date of ASU 2016-13 to January 1, 2023 for smaller reporting companies with a revised ASU in the fourth quarter of 2019. The Company will not be required to adopt Topic 326 until January 1, 2023. Currently, the Company continues to evaluate the potential impact of the new standard on its financial results.

Subsequent Events

ASC 855, Subsequent Events requires the Company to evaluate events that occur after the balance sheet date as of which the financial statements are issued, and to determine whether adjustments to or additional disclosures in the financial statements are necessary. See Note 19. Subsequent Events for the summary of the subsequent events.

Discontinued Operations

12 Months Ended

Dec. 31, 2021

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

3. Discontinued Operations

The results of GMSL, ICS, Beyond6, and CIG and the related expenses directly attributable to the entities were reported as discontinued operations. Summarized operating results of the discontinued operations are as follows (in millions):


	Years Ended December 31,
		2021		2020
Revenue		$	1.7	$	519.6
Life, accident and health earned premiums, net		55.7		115.1
Net investment income		92.4		188.9
Realized/unrealized gains (losses) on investments		5.1		(15.0)
Total revenue		154.9		808.6
Cost of revenue		0.8		492.4
Policy benefits, changes in reserves, and commissions		126.0		250.0
Selling, general and administrative		21.1		62.0
Depreciation and amortization		(11.0)		(8.3)
Other operating expenses		—		0.3
Income from operations		18.0		12.2
Interest expense		(0.5)		(12.1)
Loss on sale and liquidation of subsidiaries		(159.9)		(44.1)
Income from equity investees		—		0.5
Other loss		(3.1)		(2.3)
Pre-tax loss from discontinued operations		(145.5)		(45.8)
Income tax expense		(4.4)		(2.6)
Loss from discontinued operations		$	(149.9)	$	(48.4)

Sale of CIG

The sale of CIG closed on July 1, 2021 to Continental General Holdings LLC, an entity controlled by Michael Gorzynski, a director of the Company and, as of December 31, 2021, a beneficial owner of approximately 6.6% of the Company's outstanding common stock who has also served as executive chairman of Continental since October 2020. The Insurance segment, which primarily consisted of a closed block of long-term care insurance, had a book value, inclusive of intercompany eliminations, at the time of the sale of $544.0 million, inclusive of $344.0 million of Accumulated other comprehensive income ("AOCI"). The carrying value of the Insurance segment at the time of sale excluded cash of $62.5 million and investments of $26.7 million which were distributed to the Company through an extraordinary dividend immediately prior to the sale. The extraordinary dividend was approved by our domestic regulator in connection with the approval of the sale. The amount included in AOCI was reversed from equity at the time of the sale and offset the loss recognized.

While several factors impacted the fair value of the Insurance segment at the end of 2019, following discussions with our domestic regulator, changes in the asset management fee arrangement and expectations of future dividends primarily and ultimately resulted in the full impairment of the goodwill associated with the Insurance segment during the year ended December 31, 2019. While these factors did not have a major impact on the operations of the stand-alone business, they did have a significant impact on the economic benefit that could be realized by the Company.

As a result of the factors described above, combined with the risks associated with the long-term care insurance industry, the Company exited the segment and sold the business resulting in a $200.8 million loss on the sale of CIG.

Sale of Beyond6

On December 31, 2020, the Company announced a plan to sell Beyond6 to an affiliate of Mercuria Investments US, Inc., pursuant to an Agreement and Plan of Merger (the "Merger Agreement") among Beyond6, Greenfill, Inc., a Delaware corporation ("Parent"), Greenfill Merger Inc., a newly-formed Delaware corporation and wholly-owned subsidiary of Parent, and an affiliate of INNOVATE as the Stockholder Representative for the Beyond6 stockholders. The sale closed on January 15, 2021. During the first quarter of 2021, the Company recognized a $39.2 million gain on the sale. During the third quarter of 2021, as a result of releases of related escrows and hold backs, the Company recognized an additional $0.5 million gain on the sale.

A portion of the proceeds from the sale of Beyond6 were used to repay $15.0 million of the then outstanding balance under the Revolving Credit Agreement and repay $27.9 million of the Company's 2021 Senior Secured Notes.

As a result of the repayment of $15.0 million Revolving Credit Agreement, the Company allocated the following interest and amortization of deferred financing costs and original issue discount for the years ended December 31, 2021 and 2020 associated with the principal prepayment from continuing operations to discontinued operations on the Company’s Consolidated Statements of Operations:


	Years Ended December 31,
		2021		2020
Interest expense		$	0.1	$	0.9
Amortization of deferred financing costs and original issuance discount		$	—	$	0.1

As a result of the repayment of $27.9 million of the 2021 Senior Secured Notes, the Company allocated the following pro-rata interest and amortization of deferred financing costs and original issuance discount for the years ended December 31, 2021 and 2020, from continuing operations to discontinued operations on the Company’s Consolidated Statements of Operations:


	Years Ended December 31,
		2021		2020
Interest expense		$	0.3	$	3.2
Amortization of deferred financing costs and original issuance discount		$	—	$	0.4

Sale of GMSL

The sale of GMSL closed on February 28, 2020. At the time of the sale, the Company recorded a $39.3 million loss on the sale and recognized $31.3 million of Accumulated other comprehensive loss. During the fourth quarter of 2020, the Company recognized a gain on sale of $2.4 million as a result of the cash collateralized bonding facility release. During the first quarter of 2021, the Company recognized a gain of $1.2 million as a result of an indemnity release.

The net proceeds from the sale of GMSL were used to repay $15.0 million of the then outstanding balance under the Revolving Credit Agreement and redeem $76.9 million aggregate principal amount of the Company's 11.5% senior secured notes due 2021 (the "2021 Senior Secured Notes"), plus accrued and unpaid interest since December 1, 2019 (the last regularly scheduled interest payment date).

As a result of the repayment of $15.0 million Revolving Credit Agreement, the Company allocated the following interest and the amortization of deferred financing costs for the years ended December 31, 2021 and 2020 associated with the principal prepayment from continuing operations to discontinued operations on the Company’s Consolidated Statement of Operations:


	Years Ended December 31,
		2021		2020
Interest expense		$	—	$	0.2
Amortization of deferred financing costs and original issuance discount		$	—	$	0.1

As a result of the mandatory redemption of $76.9 million of 2021 Senior Secured Notes, the Company allocated the following pro-rata interest and amortization of deferred financing costs and original issuance discount for the years ended December 31, 2021 and 2020, from continuing operations to discontinued operations on the Company’s Consolidated Statements of Operations:


	Years Ended December 31,
		2021		2020
Interest expense		$	—	$	2.2
Amortization of deferred financing costs and original issuance discount		$	—	$	0.2

Sale of ICS

The sale of ICS and its subsidiary, Go2 Tel, Inc., closed on October 31, 2020. The Company recorded a $0.9 million gain on the sale and recognized $8.2 million of accumulated other comprehensive loss related to the realization of foreign currency translation of PTGi International Carrier Services Ltd., which was essentially liquidated in conjunction with the sale. The proceeds were used for general corporate purposes.

Summarized assets and liabilities of the discontinued operations are as follows (in millions):


	December 31, 2021		December 31, 2020

Assets
Current assets
Cash and cash equivalents	$	—	$	195.2
Accounts receivable, net	—		13.6


Other current assets	1.5		8.7
Total current assets	1.5		217.5
Investments	—		4,610.2
Recoverable from reinsurers	—		957.5
Deferred tax asset	—		1.4
Property, plant and equipment, net	—		90.5
Goodwill	—		2.1
Intangibles, net	—		11.7
Other assets	—		51.2
Total assets held for sale	$	1.5	$	5,942.1

Liabilities
Current liabilities
Accounts payable	$	—	$	2.6
Accrued liabilities	—		35.8
Current portion of debt obligations	—		5.7


Other current liabilities	—		7.4
Total current liabilities	—		51.5
Life, accident and health reserves	—		4,627.5
Annuity reserves	—		228.8
Value of business acquired	—		199.8
Deferred tax liability	—		136.5
Debt obligations	—		50.6
Other liabilities	—		12.0
Total liabilities held for sale	$	—	$	5,306.7

Revenue

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue

4. Revenue

ASC 606 aligns revenue recognition with the timing of when promised goods or services are transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. To achieve this core principle, the Company applies the following five steps in accordance with ASC 606:

Identify the contract with a customer

A contract with a customer exists when: (a) the parties have approved the contract and are committed to perform their respective obligations, (b) the rights of the parties can be identified, (c) payment terms can be identified, (d) the arrangement has commercial substance, and (e) collectability of consideration is probable. Judgment is required when determining if the contractual criteria are met, specifically in the earlier stages of a project when a formally executed contract may not yet exist. In these situations, the Company evaluates all relevant facts and circumstances, including the existence of other forms of documentation or historical experience with our customers that may indicate a contractual agreement is in place and revenue should be recognized. In determining if the collectability of consideration is probable, the Company considers the customer’s ability and intention to pay such consideration through an evaluation of several factors, including an assessment of the creditworthiness of the customer and our prior collection history with such customer.

Identify the performance obligations in the contract

At contract inception, the Company assesses the goods or services promised in a contract and identifies, as a separate performance obligation, each distinct promise to transfer goods or services to the customer. The identified performance obligations represent the "unit of account" for purposes of determining revenue recognition. In order to properly identify separate performance obligations, the Company applies judgment in determining whether each good or service provided is: (a) capable of being distinct, whereby the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer, and (b) distinct within the context of the contract, whereby the transfer of the good or service to the customer is separately identifiable from other promises in the contract.

In addition, when assessing performance obligations within a contract, the Company considers the warranty provisions included within such contract. To the extent the warranty terms provide the customer with an additional service, other than assurance that the promised good or service complies with agreed upon specifications, such warranty is accounted for as a separate performance obligation. In determining whether a warranty provides an additional service, the Company considers each warranty provision in comparison to warranty terms which are standard in the industry.

Determine the transaction price

The transaction price represents the amount of consideration to which the Company expects to be entitled in exchange for transferring promised goods or services to our customers. The consideration promised within a contract may include fixed amounts, variable amounts, or both. To the extent the performance obligation includes variable consideration, including contract bonuses and penalties that can either increase or decrease the transaction price, the Company estimates the amount of variable consideration to be included in the transaction price utilizing one of two prescribed methods, depending on which method better predicts the amount of consideration to which the entity will be entitled. Such methods include: (a) the expected value method, whereby the amount of variable consideration to be recognized represents the sum of probability weighted amounts in a range of possible consideration amounts, and (b) the most likely amount method, whereby the amount of variable consideration to be recognized represents the single most likely amount in a range of possible consideration amounts. When applying these methods, the Company considers all information that is reasonably available, including historical, current and estimates of future performance.

Variable consideration is included in the transaction price only to the extent it is probable, in the Company’s judgment, that a significant future reversal in the amount of cumulative revenue recognized under the contract will not occur when the uncertainty associated with the variable consideration is subsequently resolved. This threshold is referred to as the variable consideration constraint. In assessing whether to apply the variable consideration constraint, the Company considers if factors exist that could increase the likelihood or the magnitude of a potential reversal of revenue, including, but not limited to, whether: (a) the amount of consideration is highly susceptible to factors outside of the Company’s influence, such as the actions of third parties, (b) the uncertainty surrounding the amount of consideration is not expected to be resolved for a long period of time, (c) the Company’s experience with similar types of contracts is limited or that experience has limited predictive value, (d) the Company has a practice of either offering a broad range of price concessions or changing the payment terms and conditions of similar contracts in similar circumstances, and (e) the contract has a large number and broad range of possible consideration amounts.

Pending change orders represent one of the most common forms of variable consideration included within contract value and typically represent contract modifications for which a change in scope has been authorized or acknowledged by our customer, but the final adjustment to contract price is yet to be negotiated. In estimating the transaction price for pending change orders, the Company considers all relevant facts, including documented correspondence with the customer regarding acknowledgment and/or agreement with the modification, as well as historical experience with the customer or similar contractual circumstances. Based upon this assessment, the Company estimates the transaction price, including whether the variable consideration constraint should be applied.

Changes in the estimates of transaction prices are recognized on a cumulative catch-up basis in the period in which the revisions to the estimates are made. Such changes in estimates can result in the recognition of revenue in a current period for performance obligations which were satisfied or partially satisfied in prior periods. Such changes in estimates may also result in the reversal of previously recognized revenue if the ultimate outcome differs from the Company’s previous estimate.

Allocate the transaction price to performance obligations in the contract

For contracts that contain multiple performance obligations, the Company allocates the transaction price to each performance obligation based on a relative standalone selling price. The Company determines the standalone selling price based on the price at which the performance obligation would have been sold separately in similar circumstances to similar customers. If the standalone selling price is not observable, the Company estimates the standalone selling price taking into account all available information such as market conditions and internal pricing guidelines. In certain circumstances, the standalone selling price is determined using an expected profit margin on anticipated costs related to the performance obligation.

Recognize revenue as performance obligations are satisfied

The Company recognizes revenue at the time the related performance obligation is satisfied by transferring a promised good or service to its customers. A good or service is considered to be transferred when the customer obtains control. The Company can transfer control of a good or service and satisfy its performance obligations either over time or at a point in time. The Company transfers control of a good or service over time and, therefore, satisfies a performance obligation and recognizes revenue over time if one of the following three criteria are met: (a) the customer simultaneously receives and consumes the benefits provided by the Company’s performance as we perform, (b) the Company’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced, or (c) the Company’s performance does not create an asset with an alternative use to us, and we have an enforceable right to payment for performance completed to date.

For our performance obligations satisfied over time, we recognize revenue by measuring the progress toward complete satisfaction of that performance obligation. The selection of the method to measure progress towards completion can be either an input method or an output method and requires judgment based on the nature of the goods or services to be provided.

Revenue from contracts with customers consist of the following (in millions):


	Years Ended December 31,
		2021		2020
Revenue
Infrastructure		$	1,159.7	$	676.6
Spectrum		42.0		40.3
Life Sciences		3.5		—

Total revenue		$	1,205.2	$	716.9

Accounts receivables, net from contracts with customers consist of the following (in millions):


	December 31, 2021		December 31, 2020

Accounts receivables with customers
Infrastructure	$	226.8	$	118.5
Spectrum	9.4		7.3
Life Sciences	0.3		—
Total accounts receivables with customers	$	236.5	$	125.8

Infrastructure Segment

DBMG performs its services primarily under fixed-price contracts and recognizes revenue over time using the input method to measure progress for its projects. The nature of the projects does not provide measurable value to the customer over time and control does not transfer to the customer at discrete points in time. The customer receives value over the term of the project based on the amount of work that has been completed towards the delivery of the completed project. The most reliable measure of progress is the cost incurred towards delivery of the completed project. Therefore, the input method provides the most reliable method to measure progress. Revenue recognition begins when work has commenced. Costs include all direct material and labor costs related to contract performance, subcontractor costs, indirect labor, and fabrication plant overhead costs, which are charged to contract costs as incurred. Revenues relating to changes in the scope of a contract are recognized when DBMG and customer or general contractor have agreed on both the scope and price of changes, the work has commenced, it is probable that the costs of the changes will be recovered and that realization of revenue exceeding the costs is assured beyond a reasonable doubt. Revisions in estimates during the course of contract work are reflected in the accounting period in which the facts requiring the revision become known. Provisions for estimated losses on uncompleted contracts are made in the period a loss on a contract becomes determinable.

Payment Terms

The timing of customer billings is generally dependent upon advance billing terms, milestone billings based on completion of certain phases of work, or when services are provided. Under the typical payment terms of master and other service agreements and fixed price contracts, the customer makes progress payments based on quantifiable measures of performance by the Company as defined by each specific agreement. Progress payments, generally net of amounts retained, are paid by the customer over the duration of the contract. Amounts billed and due from customers, as well as the amount of contract assets, are generally classified within current assets in the consolidated balance sheets. See Note 6. Accounts Receivable, net and Contract Assets and Contract Liabilities for related discussion. Amounts expected to be collected beyond one year are classified as other long-term assets.

Service Contracts

For service contracts (including maintenance contracts) where we have the right to consideration from the customer in an amount that corresponds directly with the value received by the customer based on our performance to date, revenue is recognized when services are performed and contractually billable. For all other types of service contracts, revenue is recognized over time using the input method to measure progress because it best depicts the transfer of value to the customer. Costs include all direct material and labor costs, subcontractor costs, and allocated overhead costs related to contract performance.

Construction contracts with customers generally provide that billings are to be made monthly in amounts which are commensurate with the extent of performance under the contracts. Contract receivables arise principally from the balance of amounts due on progress billings on jobs under construction. Retention on contract receivables are amounts due on progress billings, which are withheld until the completed project has been accepted by the customer.

Disaggregation of Revenues

DBMG's revenues are principally derived from contracts to provide fabrication and erection services to its customers. Contracts represent majority of the revenue of the Infrastructure segment and are generally recognized over time. A majority of contracts are domestic, fixed priced, and are in excess of one year. Disaggregation of the Infrastructure segment, by market or type of customer, is used to evaluate its financial performance.

The following table disaggregates DBMG's revenue by market (in millions):


	Years Ended December 31,
		2021		2020
Commercial		$	539.8	$	217.7
Industrial		292.5		214.9
Convention		85.8		10.6
Government		68.0		65.0
Healthcare		59.8		29.5
Transportation		52.7		72.6
Leisure		23.2		42.8
Other		37.7		22.8
Total revenue from contracts with customers		1,159.5		675.9
Other revenue		0.2		0.7
Total Infrastructure segment revenue		$	1,159.7	$	676.6

Contract Assets and Contract Liabilities

The timing of revenue recognition may differ from the timing of invoicing to customers. Contract assets include unbilled amounts from our long-term construction projects when revenue recognized under the cost-to-cost measure of progress exceed the amounts invoiced to our customers, as the amounts cannot be billed under the terms of our contracts. Such amounts are recoverable from our customers based upon various measures of performance, including achievement of certain milestones, completion of specified units or completion of a contract. In addition, many of our time and materials arrangements, as well as our contracts to perform turnaround services within the United States industrial services segment, are billed in arrears pursuant to contract terms that are standard within the industry, resulting in contract assets and/or unbilled receivables being recorded, as revenue is recognized in advance of billings. Also included in contract assets are amounts we seek or will seek to collect from customers or others for errors or changes in contract specifications or design, contract change orders or modifications in dispute or unapproved as to both scope and/or price or other customer-related causes of unanticipated additional contract costs (claims and unapproved change orders). Our contract assets do not include capitalized costs to obtain and fulfill a contract.

Retainage for which the Company has an unconditional right to payment that is only subject to the passage of time are classified as accounts receivable. Retainage receivable subject to conditions other than the passage of time, or conditional retainage, do not meet the definition of a receivable and are therefore included in contract assets and contract liabilities, as determined on a contract by contract basis.

Contract liabilities from our long-term construction contracts occur when amounts invoiced to our customers exceed revenues recognized. Contract liabilities additionally include advanced payments from our customers on certain contracts. Contract liabilities decrease as we recognize revenue from the satisfaction of the related performance obligation.

The Company classifies contract assets and liabilities that may be settled beyond one year from the balance sheet date as current, consistent with the length of time of the Company’s project operating cycle.

Retainage receivable represents amounts invoiced to customers where payments have been partially withheld (usually less than 10%) pending the completion of certain milestones, satisfaction of other contractual conditions or the completion of the project. Retainage agreements vary from project to project and balances could be outstanding for several months or years depending on a number of circumstances, such as contract-specific terms, project performance and other variables that may arise as the Company makes progress toward completion. As of December 31, 2021 and 2020, the amount of retainage receivable estimated by management to be collected beyond one year is approximately 24.6% and 1.0% of the balance, respectively.

When payment of the retainage is contingent upon the Company fulfilling its obligations under the contract it does not meet the criteria to be included in accounts receivable and remains in the contract’s respective contract assets or contract liability, determined on a contract-by-contract basis. The Company has reflected such amounts within the consolidated balance sheets as of December 31, 2021 and 2020. While retainage receivable have historically been presented and disclosed within accounts receivable, the impact to correct this immaterial error in the December 31, 2020 balance sheet resulted in a reduction of previously stated accounts receivable amounting to $50.0 million, offset by an increase of $31.0 million to current contract assets and a $19.0 million reduction to current contract liabilities.

Contract assets and contract liabilities consisted of the following (in millions):


	December 31, 2021		December 31, 2020

Cost in excess of billings	$	68.3	$	55.6
Conditional retainage	50.3		31.0
Contract assets	$	118.6	$	86.6

Billings in excess of costs	$	(137.6)	$	(52.2)
Conditional retainage	58.5		19.0
Contract liabilities	$	(79.1)	$	(33.2)

The change in contract assets is a result of the recording of $122.4 million of contract assets driven by new commercial projects and $22.7 million of contract assets for projects acquired in the Banker Steel acquisition, offset by $113.1 million of contract assets transferred to receivables from contract assets recognized at the beginning of the period.

The change in contract liabilities is a result of periodic contract liabilities of $72.7 million driven largely by new commercial projects and $38.6 million of contract liabilities for projects acquired as a result of the Banker Steel acquisition, offset by revenue recognized that was included in the contract liability balance at the beginning of the period in the amount of $65.4 million.

Transaction Price Allocated to Remaining Unsatisfied Performance Obligations

The transaction price allocated to remaining unsatisfied performance obligations consisted of the following (in millions):


	Within one year		Within five years		Total
Commercial	$	452.6	$	502.0	$	954.6
Industrial	278.9		7.6		286.5
Transportation	21.6		16.1		37.7
Government	26.9		—		26.9
Leisure	17.1		—		17.1
Healthcare	85.6		—		85.6
Convention	109.3		40.0		149.3
Other	8.0		—		8.0
Remaining unsatisfied performance obligations	$	1,000.0	$	565.7	$	1,565.7

DBMG's remaining unsatisfied performance obligations, otherwise referred to as backlog, increase with awards of new contracts and decrease as it performs work and recognizes revenue on existing contracts. DBMG includes a project within its remaining unsatisfied performance obligations at such time the project is awarded and agreement on contract terms has been reached. DBMG's remaining unsatisfied performance obligations include amounts related to contracts for which a fixed price contract value is not assigned when a reasonable estimate of total transaction price can be made. DBMG expects to recognize this revenue over the next twenty four months.

Remaining unsatisfied performance obligations include unrecognized revenues to be realized from uncompleted construction contracts. Although many of DBMG's contracts are subject to cancellation at the election of its customers, in accordance with industry practice, DBMG does not limit the amount of unrecognized revenue included within its remaining unsatisfied performance obligations due to the inherent substantial economic penalty that would be incurred by its customers upon cancellation.

Life Sciences Segment

Beginning in 2021, R2 Technologies commercially launched its first systems product, the GlacialRx, and other topical consumables. The GlacialRx system is primarily sold to dermatologist offices for an initial upfront fee. Software on the device controls the number of times the device may be used to perform a treatment. The initial upfront fee entitles the user to a defined number of uses. After the initial prepurchased uses are exhausted, the dermatologist office can purchase additional uses of the treatment for an additional fee, resulting in recurring revenues to R2 Technologies as the devices are utilized. Further, topical consumables are also separately sold to dermatologist offices which patients can utilize post-treatment to increase the efficacy of the treatment.

The following table disaggregates the Life Sciences segment's revenue by type (in millions):


	Years Ended December 31,
		2021		2020
Systems and consumables revenue		$	3.5	$	—






Total Life Sciences segment revenue		$	3.5	$	—

Spectrum Segment

Network advertising revenue is generated primarily from the sale of television airtime for programs or advertisements. Network advertising revenue is recognized when the program or advertisement is broadcast. Revenues are reported net of agency commissions, which are calculated as a stated percentage applied to gross billings. The Network advertising contracts are generally short-term in nature.

Network distribution revenue consists of payments received from cable, satellite and other multiple video program distribution systems for their retransmission of our network content. Network distribution revenue is recognized as earned over the life of the retransmission consent contract and varies from month to month. Variable fees are usage/sales based, calculated on the average number of subscribers, and recognized as revenue when the usage occurs. Transaction prices are based on the contract terms, with no material judgments or estimates.

Broadcast station revenue is generated primarily from the sale of television airtime in return for a fixed fee or a portion of the related ad sales recognized by the third party. In a typical broadcast station revenue agreement, the licensee of a station makes available, for a fee, airtime on its station to a party which supplies content to be broadcast during that airtime and collects revenue from advertising aired during such content. Broadcast station revenue is recognized over the life of the contract, when the program is broadcast. The fees that we charge can be fixed or variable and the contracts that the Company enters into are generally short-term in nature. Variable fees are usage/sales-based and recognized as revenue when the subsequent usage occurs. Transaction prices are based on the contract terms, with no material judgments or estimates.

Payment Terms

We have an unconditional right to receive payment of the amount billed generally within 30 days of the invoice date. Payment terms are expressly stated in our standard terms and conditions. The invoiced amount to be received is recorded in accounts receivable on our balance sheet.

Disaggregation of Revenues

The following table disaggregates the Spectrum segment's revenue by type (in millions):


	Years Ended December 31,
		2021		2020
Broadcast station		$	18.6	$	15.5
Network advertising		18.1		18.4
Network distribution		3.2		4.0
Other		2.1		2.4


Total Spectrum segment revenue		$	42.0	$	40.3

Transaction Price Allocated to Remaining Unsatisfied Performance Obligations

The transaction price allocated to remaining unsatisfied performance obligations consisted of $0.3 million, $4.3 million, and $0.1 million of network advertising, broadcasting station revenues, and other revenues, respectively, of which $3.3 million is expected to be recognized within one year and $1.4 million is expected to be recognized within five years.

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

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Business Combination and Asset Acquisition [Abstract]

Acquisitions, Depositions, and Deconsolidations

12 Months Ended

Dec. 31, 2021

Acquisitions, Dispositions, and Deconsolidations

5. Acquisitions, Dispositions, and Deconsolidations

Infrastructure Segment

Banker Steel Acquisition

On March 15, 2021, the Company announced that DBMG entered into an agreement to acquire 100% of Banker Steel Holdco LLC ("Banker Steel") for $145.0 million, which closed on May 27, 2021. The acquisition was financed with $64.1 million from a partial draw on a new $110.0 million revolving credit facility, $49.6 million of sellers' notes, $6.3 million of assumed debt of Banker Steel, and $25.0 million in cash received from INNOVATE in the settlement of certain intercompany balances.

Banker Steel provides full-service fabricated structural steel and erection services primarily for the East Coast and Southeast commercial and industrial construction market, in addition to full design-assist services. Banker Steel consists of six operating companies: Banker Steel Co., LLC; NYC Constructors, LLC; Memco LLC; Derr & Isbell Construction LLC; Innovative Detailing and Engineering Solutions; and Lynchburg Freight and Specialty LLC.

The transaction was accounted for as a business acquisition and the valuation was finalized in the last quarter of 2021. The allocation of the fair value of consideration transferred among the identified assets acquired, liabilities assumed, intangibles and residual goodwill is summarized as follows (in millions):


Purchase Consideration at Fair Value
Partial draw on new $110.0 million revolving credit facility	$	64.1
Sellers' notes	49.6
Bankers Steel debt - assumed	6.3
Cash	25.0
Gross consideration	145.0
Less: Seller transaction costs - assumed	0.4
Less: Bankers debt - assumed	6.3
Less: R&W premium paid by seller	0.5
Net consideration	$	137.8

Cash and cash equivalents	$	9.3
Accounts receivable, net	70.9
Contract assets	22.6
Assets held for sale	0.7
Inventory	5.7
Other current assets	1.7
Property, plant, and equipment, net	58.6
Other assets	40.1
Intangibles, net	60.8
Goodwill	16.7
Total assets to be acquired	287.1

Accounts Payable	39.1
Contract liabilities	38.6
Other current liabilities	31.1
Other liabilities	34.2
Long-term debt, less current portion	6.3
Total liabilities to be assumed	149.3

Total net assets acquired	$	137.8

During the 2021 measurement period, adjustments to our acquisition accounting were made to certain amounts. These include updates to accounts receivable based on additional information obtained regarding collectability, values assigned to intangible assets, and additional accrued liabilities. As such, the valuation was finalized during the fourth quarter of 2021.

Goodwill was determined based on the residual differences between fair value of consideration transferred and the value assigned to acquired assets and liabilities. Among the factors that contributed to goodwill was approximately $60.8 million assigned to intangibles, including customer relationships of $33.8 million with a useful life of 18 years, trade names of $7.4 million with a useful life of 15 years, existing customer contracts of $17.6 million with a useful life of 2 years and leasehold interests of $2.0 million with varying useful life. Goodwill is not amortized. The portion of goodwill that is deductible for tax purposes is $14.0 million.

Acquisition costs incurred by DBMG in connection with the acquisition of Banker Steel were approximately $2.0 million, which were included in selling, general and administrative expenses. The acquisition costs were primarily related to legal, accounting and valuation services.

The following schedule presents the results of operations data for the year ended December 31, 2021 for Banker Steel since the date of acquisition (in millions):


	Year Ended December 31, 2021
Revenue	$	265.9
Net income from operations	$	15.5
Net income attributable to INNOVATE	$	8.8

Pro Forma Adjusted Summary

The following schedule presents unaudited consolidated pro forma results of operations data as if the acquisition of Banker Steel had occurred on January 1, 2020. This information does not purport to be indicative of the actual results that would have occurred if the acquisitions had actually been completed on the date indicated, nor is it necessarily indicative of the future operating results or the financial position of the combined company (in millions):


	Year Ended December 31, 2021		Year Ended December 31, 2020
Revenue	$	1,402.7	$	1,114.1
Income (loss) from operations	$	0.9	$	1.5
Net loss attributable to INNOVATE	$	(219.2)	$	(70.6)

During the year ended December 31, 2021, the Company purchased an additional 53,759 shares of DBM Global, Inc. on the open market, increasing its ownership to approximately 91% from 89%.

Spectrum Segment

During the year ended December 31, 2021, the Company increased its controlling interest in DTV from approximately 60%, inclusive of approximately 10% proxy and voting rights from minority holders, to approximately 77%, inclusive of approximately 10% proxy and voting rights from minority holders, from private purchases and proxy voting rights.

Other Segment

Sale of GMSL

On January 30, 2020, the Company announced that, through its indirect subsidiary GMH in which the Company holds an approximately 73% controlling interest, the Company entered into a definitive agreement to sell 100% of the shares of GMSL to Trafalgar AcquisitionCo, Ltd. and an affiliate of J.F. Lehman & Company, LLC. The total base consideration was $250.0 million, subject to customary purchase price adjustments, working capital adjustments, and a potential earn-out of up to $12.5 million at such time, if any, if J.F. Lehman & Company, LLC and its investment affiliates achieve a specified multiple of their invested capital.

The purchase price is subject to customary potential downward or upward post-closing adjustments based on net working capital, cash, unpaid transaction expenses, indebtedness and certain of the Company’s pre-closing paid capital expenditures. The Share Purchase Agreement contained customary representations, warranties and covenants for a transaction of this nature.

The transaction closed on February 28, 2020. GMH received approximately $144.0 million of net proceeds from the sale, of which $36.8 million and $5.5 million were paid to noncontrolling interest holders and redeemable noncontrolling interest holders, respectively. INNOVATE received net proceeds of approximately $100.8 million. In connection with the closing of the transaction, the purchaser deposited (i) $1.25 million of the base price into an escrow fund for the purpose of securing certain indemnification obligations for losses payable in the first twelve months after closing and (ii) $1.91 million of the base price into an escrow fund for the purpose of securing a purchase price adjustment, if any, in favor of purchaser. Following the closing, the purchaser paid an amount equal to $2.4 million on the earlier of December 31, 2020 and the date on which a cash collateralized bonding facility was released.

In the first quarter of 2020, the Company recorded a $39.3 million loss on the sale and recognized a $31.3 million of Accumulated other comprehensive loss, which was comprised of $17.2 million of actuarial losses on pension and $14.1 million of currency translation adjustments. During the fourth quarter of 2020, the Company recognized a gain on sale of $2.4 million as a result of the cash collateralized bonding facility release. During the first quarter of 2021, the Company recognized a gain of $1.2 million as a result of indemnity release.

Sale of HMN

On October 30, 2019, the Company announced the sale of its stake in HMN, its 49% joint venture with Huawei Technologies Co., Ltd., to Hengtong Optic-Electric Co Ltd.

Under the terms of the Sale and Purchase Agreement, the sale of New Saxon’s 49% interest in HMN will be affected in two tranches. The sale of the portion of New Saxon’s 30% interest of HMN, closed on May 12, 2020 (the "First HMN Close"). The remaining 19% interest of HMN is retained by New Saxon and subject to a put option agreement by New Saxon, exercisable starting on the second year anniversary of the closing date of the First HMN Close at a price equal to the greater of the share price paid for the 30% interest or fair market value as of the exercisable date.

In the second quarter of 2020, in conjunction with the first tranche of the sale, the Company received $85.5 million in cash, of which $17.5 million and $2.1 million were paid to noncontrolling interest holders and redeemable noncontrolling interest holders, respectively. On the closing date, New Saxon recorded a $71.1 million gain, included in Other income (loss) in the Consolidated Statements of Operations. The gain recognized includes $11.3 million related to the fair value of the put option. In addition, on the closing date, the Company recorded a $7.2 million tax expense related to a foreign tax payment when the first tranche closed.

Sale of ICS

The sale of ICS and its subsidiary, Go2 Tel, Inc., closed on October 31, 2020. The Company recorded a $0.9 million gain on the sale and recognized $8.2 million of Accumulated other comprehensive loss related to the realization of foreign currency translation of PTGi International Carrier Services Ltd., which was essentially liquidated in conjunction with the sale. The proceeds were used for general corporate purposes.

Sale of Beyond6

On December 31, 2020, the Company announced a plan to sell Beyond6 to an affiliate of Mercuria Investments US, Inc., pursuant to an Agreement and Plan of Merger (the "Merger Agreement") among Beyond6, Greenfill, Inc., a Delaware Corporation ("Parent"), Greenfill Merger Inc., a newly-formed Delaware corporation and wholly-owned subsidiary of the Parent, and an affiliate of INNOVATE as the Stockholder Representative for the Beyond6 stockholders, for a total purchase price, net of Beyond6's debt and transaction expenses, customary purchase price adjustments and escrow arrangements, of approximately $106.5 million. Net proceeds received by INNOVATE at closing was cash consideration of approximately $70.0 million. The sale closed on January 15, 2021. During the first quarter of 2021, the Company recognized a $39.2 million gain on the sale. During the third quarter of 2021, as a result of releases of related escrows and hold backs, the Company recognized an additional $0.5 million gain on the sale.

Sale of CIG

See Note 3. Discontinued Operations for further details.

Accounts Receivable, net

12 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Accounts Receivable, net

6. Accounts Receivable, net

Accounts receivable, net consist of the following (in millions):


	December 31, 2021		December 31, 2020

Contracts in progress	$	226.8	$	118.6
Unbilled retentions	0.4		0.3
Trade receivables	9.9		7.5
Other receivables	10.6		8.9
Allowance for doubtful accounts	(0.6)		(0.6)
Total	$	247.1	$	134.7

Property, Plant, and Equipment, net

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Property, Plant, and Equipment, net

7. Property, Plant and Equipment, net

Property, plant and equipment, net consists of the following (in millions):


	December 31, 2021		December 31, 2020


Equipment, furniture and fixtures, and software	$	180.7	$	113.7
Building and leasehold improvements	43.0		41.0
Land	24.1		24.1
Construction in progress	8.9		3.1
Plant and transportation equipment	8.3		4.4
	265.0		186.3
Less: Accumulated depreciation	95.1		73.5
Total	$	169.9	$	112.8

Depreciation expense was $25.0 million and $20.8 million for the years ended December 31, 2021 and 2020, respectively. These amounts included $12.2 million and $9.1 million of depreciation expense recognized within cost of revenue for each of the years ended December 31, 2021 and 2020.

As of December 31, 2021 and 2020 the total net book value of equipment under capital leases consisted of $0.2 million and $0.9 million, respectively.

Goodwill and Intangibles, net

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangibles, net

8. Goodwill and Intangibles, net

On an annual basis, the Company performs its goodwill impairment review in accordance with ASC 350. Estimating the fair value of a reporting unit requires various assumptions including projections of future cash flows, perpetual growth rates and discount rates. The assumptions about future cash flows and growth rates are based on the Company’s assessment of a number of factors, including the reporting unit’s recent performance against budget, performance in the market that the reporting unit serves, and industry and general economic data from third-party sources. Discount rate assumptions are based on an assessment of the risk inherent in those future cash flows. Changes to the underlying businesses could affect the future cash flows, which in turn could affect the fair value of the reporting unit. After considering all quantitative and qualitative factors, the Company has determined that, other than noted below, it is more likely than not that the reporting units' fair values exceed carrying values as of the period end. The Company reports goodwill impairment charges within the Asset impairment expense line of our Consolidated Statements of Operations. The Company considered the current and expected future economic and market conditions surrounding the COVID-19 pandemic and its impact on each of the reporting units. Further, the Company assessed the current market capitalization, forecasts and the amount of headroom in the 2021 impairment test.

Spectrum

As a result of the goodwill assessment, the Company determined that COVID-19's impact to the Spectrum segment in the first quarter of 2020 was a “triggering event” and, as required, performed a quantitative analysis, with the assistance of a third-party valuation firm, of the value of the Spectrum reporting unit and its indefinite-lived intangible assets. Based on the analysis, the Company determined that the fair value of the Spectrum reporting unit and the related indefinite-lived intangible assets continue to exceed their carrying values and were not impaired as of March 31, 2020.

Determining the fair value of the Spectrum reporting unit and indefinite-lived intangible assets requires significant judgment and estimates by management, utilizing the income-approach, which utilizes several key inputs, including future cash flows consistent with management’s strategic plans, sales growth rates and a discount rate, amongst others. Estimating sales growth rates requires significant judgment by management in areas such as future economic conditions, growth rates, pricing, and consumer tastes and preferences. Given the inherent uncertainties in estimating the future impacts of the COVID-19 pandemic on global macroeconomic conditions and interest rates in general and on the Spectrum business, actual results may differ from management’s current estimates and could have an adverse impact on one or more of the assumptions used in our quantitative models related to the Spectrum reporting unit, resulting in potential impairment charges in subsequent periods. At March 31, 2020, while the fair value of the Spectrum reporting unit declined, the fair value of the Spectrum reporting unit continued to exceed its carrying value.

At December 31, 2021 and at December 31, 2020, the Company further reviewed qualitative factors of potential impairment for Goodwill and Intangible assets, inclusive of further impact of COVID-19, and there were no triggering events which would indicate impairment may have occurred.

Goodwill

The carrying amount of goodwill by segment was as follows (in millions):


	Infrastructure		Spectrum		Total
Balance at December 31, 2020	$	89.6	$	21.4	$	111.0

Acquisitions	16.7		—		16.7


Translation	(0.3)		—		(0.3)
Balance at December 31, 2021	$	106.0	$	21.4	$	127.4

Indefinite-lived Intangible Assets

The carrying amount of indefinite-lived intangible assets was as follows (in millions):


	December 31, 2021		December 31, 2020

FCC licenses	$	106.5	$	113.0

Total	$	106.5	$	113.0

For the year ended December 31, 2021, FCC licenses decreased $6.5 million predominantly as a result of our Spectrum segment selling non-core FCC licenses. In addition, for the years ending December 31, 2021 and 2020, the Company recorded impairment charges of $0.7 million and $13.5 million, respectively, in Other operating loss (gain) related to select FCC licenses which were sold in order to bring their carrying value equal to the agreed upon sales price prior to the execution of the sale.

The weighted-average period prior to the next renewal for FCC licenses was 3.0 years and 2.4 years as of December 31, 2021 and 2020, respectively, after taking into consideration licenses that were successfully renewed shortly after year-end. While broadcast television licenses are issued for a fixed period of time (generally eight years), renewals of these licenses have occurred routinely and at nominal cost. In addition, the Company does not believe that the expiration or non-renewal of any of our FCC licenses would have a material adverse effect on the expected future cash flows and profitability.

Definite Lived Intangible Assets

The gross carrying amount and accumulated amortization of definite lived intangible assets by major intangible asset class were as follows (in millions):


	Weighted-Average Original Useful Life	December 31, 2021							December 31, 2020
		Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Trade names	14 years	$	25.4		$	(6.3)	$	19.1	$	18.0		$	(4.6)	$	13.4
Customer relationships and contracts	11 years	87.7			(21.6)		66.1		36.4			(12.1)		24.3
Channel sharing arrangements	35 years	12.6			(1.1)		11.5		20.2			(1.6)		18.6
Other	10 years	8.5			(3.3)		5.2		5.5			(2.7)		2.8
Total		$	134.2		$	(32.3)	$	101.9	$	80.1		$	(21.0)	$	59.1

Amortization expense for definite lived intangible assets was $12.6 million and $6.0 million for the year ended December 31, 2021 and 2020, respectively, and was included in Depreciation and amortization in our Consolidated Statements of Operations.

For the year ended December 31, 2021, Channel sharing arrangements decreased $7.6 million predominantly as a result of our Spectrum segment selling a non-core channel sharing arrangement.

Amortization

The Company estimates the annual amortization expense of amortizable intangible assets for the next five fiscal years will be as follows (in millions):


	Estimated Amortization
2022	$	17.2
2023	11.4
2024	8.0
2025	7.3
2026	6.8
Thereafter	51.2
Total	$	101.9

Debt Obligations

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Debt Obligations

9. Debt Obligations

Debt obligations consist of the following (in millions):


	December 31, 2021		December 31, 2020
Infrastructure
LIBOR plus 5.85% Note, due 2023	$	—	$	71.6
LIBOR plus 1.50% Line of Credit	—		38.7
3.25% Note due 2026	107.2		—
PRIME minus 1.10% Line of Credit	30.4		—
4.00% Note due 2024	25.0		—
8.00% Note due 2024	19.6		—
11.00% Note due 2024	6.3		—
Obligations under finance leases	0.1		0.2
Spectrum
8.50% Note due 2021	—		19.3
10.50% Note due 2021	—		32.9
8.50% Note due 2022	19.3		—
10.50% Note due 2022	32.9		—
Other, various maturity dates	—		2.9
Obligations under finance leases	—		0.6
Non-Operating Corporate
11.50% Senior Secured Notes, due 2021	—		340.4
8.50% Senior Secured Notes, due 2026	330.0		—
7.50% Convertible Senior Notes, due 2022	3.2		55.0
7.50% Convertible Senior Notes, due 2026	51.8		—
LIBOR plus 5.75% Line of Credit	5.0		15.0
	630.8		576.6
Unamortized issuance discount, issuance premium, and deferred financing costs	(4.5)		(15.1)
Less: current portion of debt obligations	(69.5)		(433.6)
Debt obligations	$	556.8	$	127.9

Aggregate finance lease and debt payments, including interest are as follows (in millions):


	Finance Leases		Debt		Total
2022	$	0.1	$	115.7	$	115.8
2023	—		56.4		56.4
2024	—		107.5		107.5
2025	—		41.3		41.3
2026	—		487.3		487.3
Thereafter	—		—		—
Total minimum principal and interest payments	0.1		808.2		808.3
Less: Amount representing interest	—		(177.5)		(177.5)
Total aggregate finance lease and debt payments	$	0.1	$	630.7	$	630.8

The interest rates on the finance leases range from approximately 2.0% to 10.0%.

Infrastructure

In May 2021, DBMG repaid its LIBOR plus 1.50% revolving line of credit under the Credit and Security Agreement with Wells Fargo Bank ("Revolving Line") and its term loan due 2023 under a financing agreement with TCW Asset Management Company LLC ("TCW Loan"). In addition, DBMG entered into a new credit facility with UMB Bank ("UMB"). Under the terms of the agreement, UMB agreed to a $110.0 million term loan ("UMB Term Loan") and $110.0 million revolving credit agreement ("UMB Revolving Line"). The UMB Term loan expires in 2026 and will bear interest at a rate of 3.25% with an effective interest rate of 3.25%. The UMB Revolving Line expires in 2024 and will bear interest at a rate of Prime Rate minus 1.10%. The proceeds were used to fully repay DBMG's existing debt obligations, fund a portion of the Banker Steel acquisition, and provide additional working capital capacity to DBMG.

The extinguishment of the Revolving Line and the TCW Loan yielded a loss on extinguishment of $1.5 million included in Loss on early extinguishment or restructuring of debt in the Consolidated Statement of Operations.

Spectrum

On October 24, 2019, Spectrum issued $78.7 million 364-day secured notes (the "2020 Notes"). The 2020 Notes were comprised of a $36.2 million, 8.50% tranche funded by an affiliate of MSD Partners, L.P. (the “8.50% Note”). The remaining $42.5 million, 10.50% tranche (the “10.50% Note”) was a modification of the existing Secured Note, with certain institutional investors. The 2020 Notes had an original maturity date of October 2020, and were amended multiple times during 2020 as further described below. The net proceeds from the financing were used to retire Broadcasting’s existing debt, as well as fund pending acquisitions, working capital and general corporate purposes. In connection with the issuance of the 10.50% Note due 2020, Spectrum issued warrants to the same institutional investors to purchase 50,000 shares of common stock at $176.4 per share for a total purchase price of $8.8 million, or net settled, if exercised as of the issuance date, and as may be adjusted at any future exercise of the warrant pursuant to its terms. The warrant has a five-year term and is immediately exercisable.

In February 2020, Spectrum amended its agreement governing its 8.50% Note funded by MSD Partners, L.P., increasing the principal balance to $39.3 million. The proceeds were used to repay principal and interest on existing debt. In August 2020, Spectrum modified its agreement with MSD Partners, L.P. and Great American Life Insurance Company to extend the maturity on its 8.50% Note and 10.50% Note to October 2021. In September 2020, Spectrum further amended its agreement governing its 8.50% Note, increasing the principal balance by $4.0 million to $43.3 million. The proceeds were used to repay principal and interest on existing debt and for general business purposes. In November 2020, Spectrum paid down $2.9 million of its 8.50% Note and $3.0 million on other various notes. In December 2020, Spectrum paid down $21.0 million and $9.6 million of its 8.50% Note and 10.50% Note, respectively from the proceeds from the sale of stations.

On August 30, 2021, Broadcasting repurchased $1.0 million of DTV's outstanding notes payable, inclusive of accrued interest, to certain institutional investors. Also on August 30, 2021, DTV extended its remaining outstanding notes by 60 days.

On October 21, 2021, Broadcasting entered into the Fifth Omnibus Amendment to Secured Notes, Consent and Second Amendment to Asset Sale Under Secured Notes and Intercreditor Agreement (the “Amendment”), which, among other things, extended $52.2 million of its Senior Secured Notes, due October 21, 2021, through November 30, 2022. Concurrently, Broadcasting completed the last of a series of repurchases of all the outstanding secured notes, inclusive of accrued interest, of DTV America Corporation (“DTV”) for a total consideration of $6.2 million using a combination of cash on hand and proceeds from the sales on non-core assets.

On October 26, 2021, Broadcasting repurchased the outstanding convertible promissory notes of DTV for a total consideration of $0.7 million using proceeds from the sales of non-core assets. Subsequent to these acquisitions, DTV’s debt is held by Broadcasting and eliminated in consolidation.

The extinguishment of DTV's debt yielded a loss on extinguishment of $1.0 million included in Loss on early extinguishment or restructuring of debt in the Consolidated Statement of Operations.

Non-Operating Corporate

On February 1, 2021, INNOVATE repaid its 2021 Senior Secured Notes and issued $330.0 million aggregate principal amount of 8.50% senior secured notes due 2026 (the "2026 Senior Secured Notes"). In addition, the Company entered into exchange agreements with certain holders of approximately $51.8 million aggregate principal amount of its existing $55.0 million 7.50% convertible senior notes due 2022 (the "2022 Convertible Notes"), pursuant to which the Company exchanged such holders' 2022 Convertible Notes for newly issued 7.50% convertible notes due 2026 (the "2026 Convertible Notes"). The 2026 Senior Secured Notes were issued in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended.

The Company accounted for the transactions under the debt extinguishment model as the present value of cash flows under the terms of the 2026 Senior Secured Notes and 2026 Convertible Notes was at least 10% different from the present value of the remaining cash flows under the 2021 Senior Secured Notes and the 2022 Convertible Notes.

The extinguishment of the 2021 Senior Secured Notes yielded a loss on extinguishment of $4.5 million. The extinguishment of the $51.8 million of 2022 Convertible Notes yielded a loss on extinguishment of $5.5 million, an acceleration of the amortization of discount of $5.3 million, and extinguishment of the bifurcated conversion option classified as equity of $7.7 million.

2021 Senior Secured Notes

The Senior Secured Notes were issued under an indenture dated November 20, 2018, by and among the Company, the guarantors party thereto and U.S. Bank National Association, a national banking association ("U.S. Bank"), as trustee (the "Secured Indenture"). The Senior Secured Notes were issued at 98.75% of par with a stated interest rate of 11.50% and an effective interest rate of 13.20%, which reflects a discount of $5.9 million.

In March 2020, with the cash proceeds from the sale of GMSL, INNOVATE redeemed $76.9 million of its Senior Secured Notes at a price equal to 104.5% of the principal amount plus accrued interest through the redemption date. INNOVATE recognized $5.4 million in extinguishment loss related to the redemption of its Senior Secured Notes, which is included in Loss on early extinguishment or restructuring of debt in our Consolidated Statement of Operations.

In June 2020, with the cash proceeds from the partial sale of New Saxon's interest in HMN, INNOVATE redeemed $50.6 million of its Senior Secured Notes at a price equal to 104.5% of the principal amount plus accrued interest through the redemption date. INNOVATE recognized $3.4 million in extinguishment loss related to this redemption, which is included in Loss on early extinguishment or restructuring of debt in our Consolidated Statement of Operations.

In October 2020, INNOVATE redeemed an additional $2.1 million of its Senior Secured Notes at a price equal to 104.5% of the principal amount plus accrued interest through the redemption date. INNOVATE recognized $0.1 million in extinguishment loss related to this redemption, which is included in Loss on early extinguishment or restructuring of debt in our Consolidated Statement of Operations.

2026 Senior Secured Notes

The 2026 Senior Secured Notes were issued under an indenture dated February 1, 2021, by and among the Company, the guarantors party thereto and U.S. Bank National Association, a national banking association ("U.S. Bank"), as trustee (the "Secured Indenture"). The 2026 Senior Secured Notes were issued at 100% of par, with a stated interest rate of 8.50% and an effective interest rate of 9.26%, which reflects $2.7 million of deferred financing fees.

2022 Convertible Notes

The Convertible Notes were issued under a separate indenture dated November 20, 2018, between the Company and U.S. Bank, as trustee (the "Convertible Indenture"). The Convertible Notes were issued at 100% of par with an effective interest rate of 17.60%, which reflects the $12.6 million discount and $2.0 million of deferred financing fees.

Each $1,000 of principal of the Convertible Notes will initially be convertible into 234.2971 shares of our common stock, which is equivalent to an initial conversion price of approximately $4.27 per share, subject to adjustment upon the occurrence of specified events.

In accordance with ASC Topic 815-15, Derivatives and Hedging, the embedded conversion feature contained in the Convertible Notes is required to be bifurcated and recorded as a derivative liability and marked to market in each reporting period. The embedded conversion feature had a fair value of $12.5 million on the transaction date, which was recorded as a discount on the Convertible Notes and included within Other liabilities on our Consolidated Balance Sheets. The fair value of the embedded conversion feature was $5.8 million as of December 31, 2020, the change in fair value from the transaction date being recorded within Other income.

In conjunction with the issuance of the Convertible Notes in 2018, the Company incurred a consent fee payable to preferred stockholders of $3.8 million. This fee was recorded within the Preferred stock and deemed dividends line item of the Consolidated Statements of Operations as a deemed dividend.

At December 31, 2020, the Convertible Notes had a net carrying value of $48.1 million and an unamortized discount of $6.0 million. Based on the closing price of our common stock of $3.26 on December 31, 2020, the if-converted value of the Convertible Notes did not exceed its principal value. For the year ending December 31, 2020, interest expense recognized for the period relating to both the contractual interest coupon and amortization of the discount on the Convertible Notes was $4.1 million.

At December 31, 2021, the Convertible Notes had a net carrying value of $3.1 million and an unamortized discount of $0.1 million. Based on the closing price of our common stock of $3.71 on December 31, 2021, the if-converted value of the Convertible Notes did not exceed its principal value. For the year ending December 31, 2021, interest expense recognized for the period relating to both the contractual interest coupon and amortization of the discount on the Convertible Notes was $0.6 million.

2026 Convertible Notes

The 2026 Convertible Notes were issued under a separate indenture dated February 1, 2021, between the Company and U.S. Bank, as trustee (the "Convertible Indenture"). The 2026 Convertible Notes were issued at 100% of par with a stated interest rate of 7.50%. The fair value of the embedded conversion feature contained in the 2026 Convertible Notes had a fair value of $12.3 million, which was recorded as a premium on the 2026 Convertible Notes. The 2026 Convertible Notes have an effective interest rate of 3.21%, which reflects the $12.3 million premium and $1.1 million of deferred financing fees.

Each $1,000 of principal of the 2026 Convertible Notes will initially be convertible into 234.2971 shares of our common stock, which is equivalent to an initial conversion price of approximately $4.27 per share, subject to adjustment upon the occurrence of specified events.

At December 31, 2021, the 2026 Convertible Notes had a carrying value of $61.2 million and an unamortized premium of $10.4 million. Based on the closing price of our common stock of $3.71 on December 31, 2021, the if-converted value of the 2026 Convertible Notes did not exceed its principal value.

For the year ended December 31, 2021, interest expense recognized for the period relating to both the contractual interest coupon and amortization of discount net of premium was $3.6 million and $1.7 million, respectively.

Line of Credit

On February 23, 2021, the Company entered into a third amendment (the "Amendment") of the 6.75% line of credit with MSD PCOF Partners IX, LLC ("Revolving Credit Agreement"). Among other things, the Amendment (i) increases the aggregate principal amount of the Revolving Credit Agreement to $20.0 million, (ii) extends the maturity date of the Revolving Credit Amendment to February 23, 2024, (iii) updates the affirmative and negative covenants contained in the Amended Credit Agreement so that they are substantially consistent with the affirmative and negative covenants contained in the indenture that governs the 2026 Senior Secured Notes and (iv) reduces the interest rate margin applicable to loans borrowed under the Amended Credit Agreement to 5.75% from the 6.75% described above. Except as modified by the Amendment, the terms of the Revolving Credit Agreement remain in effect.

In May 2021, INNOVATE drew $5.0 million under the Revolving Credit Agreement. The Company used the proceeds to fund a portion of the redemption of the Company's Series A and A-2 Preferred Stock.

2026 Senior Secured Notes Terms and Conditions

Maturity. The 2026 Senior Secured Notes mature on February 1, 2026.

Interest. The 2026 Senior Secured Notes accrue interest at a rate of 8.50% per year. Interest on the 2026 Senior Secured Notes is paid semi-annually on February 1 and August 1 of each year.

Issue Price. The issue price of the 2026 Senior Secured Notes was 100% of par.

Ranking. The notes and the note guarantees are the Company’s and certain of its direct and indirect domestic subsidiaries’ (the "Subsidiary Guarantors") general senior secured obligations. The notes and the note guarantees will rank: (i) senior in right of payment to all of the Company’s and the Subsidiary Guarantors’ future subordinated debt; (ii) equal in right of payment, subject to the priority of any First-Out Obligations (as defined in the Secured Indenture), with all of the Company’s and the Subsidiary Guarantors’ existing and future senior debt and effectively senior to all of its and the Subsidiary Guarantor’s unsecured debt to the extent of the value of the collateral; and (iii) effectively subordinated to all liabilities of its non-guarantor subsidiaries. The notes and the note guarantees are secured on a first-priority basis by substantially all of the Company’s assets and the assets of the Subsidiary Guarantors, subject to certain exceptions and permitted liens.

Collateral. The 2026 Senior Secured Notes are secured by a first priority lien on substantially all of the Company’s assets (except for certain "Excluded Assets," and subject to certain "Permitted Liens," each as defined in the Secured Indenture), including, without limitation:

•all equity interests owned by the Company or a Subsidiary Guarantor (which, in the case of any equity interest in a foreign subsidiary, will be limited to 100% of the non-voting stock (if any) and 65% of the voting stock of such foreign subsidiary) and the related rights and privileges associated therewith (but excluding Equity Interests of Insurance Subsidiaries (as defined in the Secured Indenture), to the extent the pledge thereof is deemed a "change of control" under applicable insurance regulations);

•all equipment, goods and inventory owned by the Company or a Subsidiary Guarantor;

•all cash and investment securities owned by the Company or a Subsidiary Guarantor;

•all documents, books and records, instruments and chattel paper owned by the Company or a Subsidiary Guarantor;

•all general intangibles owned by the Company or a Subsidiary Guarantor; and

•any proceeds and supporting obligations thereof.

The Secured Indenture permits the Company, under specified circumstances, to incur additional debt in the future that could equally and ratably share in the collateral. The amount of such debt is limited by the covenants contained in the Secured Indenture.

Events of Default. The Secured Indenture contains customary events of default which could, subject to certain conditions, cause the 2026 Senior Secured Notes to become immediately due and payable.

Restricted Payments. The Secured Indenture contains specific covenants which restrict the Company's ability and the ability of its restricted subsidiaries (as defined in the Secured Indenture) to incur certain additional indebtedness; make certain dividends, distributions, investments and other restricted payments; repay certain debt; sell certain assets; or enter into certain transactions with affiliates. These covenants are subject to a number of exceptions and qualifications. At December 31, 2021, the Company was in compliance with all covenants contained in the 2026 Senior Secured Notes.

2022 Convertible Notes Terms and Conditions

Maturity. The 2022 Convertible Notes mature on June 1, 2022 unless earlier converted, redeemed or purchased.

Interest. The 2022 Convertible Notes accrue interest at a rate of 7.5% per year. Interest on the 2022 Convertible Notes is paid semi-annually on December 1 and June 1 of each year.

Issue Price. The issue price of the Convertible Notes was 100% of par.

Ranking. The notes are the Company’s general unsecured and unsubordinated obligations and will rank equally in right of payment with all of the Company’s existing and future unsecured and unsubordinated indebtedness, and senior in right of payment to any of the Company’s future indebtedness that is expressly subordinated to the notes. The notes will be effectively subordinated to all of the Company’s existing and future secured indebtedness, including the Company’s Secured Notes, to the extent of the value of the collateral securing that indebtedness, and structurally subordinated to all indebtedness and other liabilities of the Company’s subsidiaries, including trade credit.

Optional Redemption. The Company could not redeem the notes prior to June 1, 2020. From or after June 1, 2020, the Company may redeem for cash all of the notes if the last reported sale price of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (which need not be consecutive trading days) during any 30 consecutive trading-day period ending within five trading days prior to the date on which the Company provides notice of redemption. The redemption price will equal 100% of the principal amount of the notes being redeemed, plus accrued and unpaid interest, including additional interest, if any, to, but excluding, the redemption date.

Conversion Rights. The 2022 Convertible Notes are convertible into shares of the Company’s common stock based on a conversion rate of 234.2971 shares of common stock per $1,000 principal amount of Convertible Notes (equivalent to a conversion price of approximately $4.27 per share of the Company’s common stock), at any time prior to the close of business on the business day immediately preceding the maturity date, in principal amounts of $1,000 or an integral multiple of $1,000 in excess thereof. In addition, following a Make-Whole Fundamental Change (as defined in the indenture governing the 2022 Convertible Notes) or the Company’s delivery of a notice of redemption for the 2022 Convertible Notes, the Company will, in certain circumstances, increase the conversion rate for a holder who elects to convert its 2022 Convertible Notes in connection with (i) such Make-Whole Fundamental Change or (ii) such notice of redemption. However, to comply with certain listing standards of The New York Stock Exchange, the Company will settle in cash its obligation to increase the conversion rate in connection with a Make-Whole Fundamental Change or redemption until it has obtained the requisite stockholder approval.

Events of Default. The indenture governing the 2022 Convertible Notes contains customary events of default which could, subject to certain conditions, cause the 2022 Convertible Notes to become immediately due and payable.

2026 Convertible Notes Terms and Conditions

Maturity. The 2026 Convertible Notes mature on August 1, 2026 unless earlier converted, redeemed or purchased.

Interest. The 2026 Convertible Notes accrue interest at a rate of 7.5% per year. Interest on the 2026 Convertible Notes is paid semi-annually on February 1 and August 1 of each year.

Issue Price. The issue price of the 2026 Convertible Notes was 100% of par.

Ranking. The notes are the Company’s general unsecured and unsubordinated obligations and will rank equally in right of payment with all of the Company’s existing and future unsecured and unsubordinated indebtedness, and senior in right of payment to any of the Company’s future indebtedness that is expressly subordinated to the notes. The notes will be effectively subordinated to all of the Company’s existing and future secured indebtedness, including the Company’s 2026 Senior Secured Notes, to the extent of the value of the collateral securing that indebtedness, and structurally subordinated to all indebtedness and other liabilities of the Company’s subsidiaries, including trade credit.

Optional Redemption. The Company may not redeem the notes prior to August 1, 2023. On or after August 1, 2023, the Company may redeem for cash all of the notes if the last reported sale price of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (which need not be consecutive trading days) during any 30 consecutive trading-day period ending within five trading days prior to the date on which the Company provides notice of redemption. The redemption price will equal 100% of the principal amount of the notes being redeemed, plus accrued and unpaid interest, including additional interest, if any, to, but excluding, the redemption date.

Conversion Rights. The 2026 Convertible Notes are convertible into shares of the Company’s common stock based on an initial conversion rate of 234.2971 shares of common stock per $1,000 principal amount of Convertible Notes (equivalent to a conversion price of approximately $4.27 per share of the Company’s common stock), at any time prior to the close of business on the business day immediately preceding the maturity date, in principal amounts of $1,000 or an integral multiple of $1,000 in excess thereof. In addition, following a Make-Whole Fundamental Change (as defined in the Convertible Indenture) or the Company’s delivery of a notice of redemption for the 2026 Convertible Notes, the Company will, in certain circumstances, increase the conversion rate for a holder who elects to convert its 2026 Convertible Notes in connection with (i) such Make-Whole Fundamental Change or (ii) such notice of redemption. However, to comply with certain listing standards of The New York Stock Exchange, the Company will settle in cash its obligation to increase the conversion rate in connection with a Make-Whole Fundamental Change or redemption until it has obtained the requisite stockholder approval.

Events of Default. The Convertible Indenture contains customary events of default which could, subject to certain conditions, cause the Convertible Notes to become immediately due and payable.

Revolving Credit Agreement

Lender. MSD PCOF Partners IX, LLC (“MSD”)

Maturity. The Revolving Credit Agreement matures on February 23, 2024.

Ranking. Obligations under the Revolving Credit Agreement constitute a First-Out Debt, as defined in the Secured Indenture, and are secured on a pari passu basis with the 2026 Senior Secured Notes.

Collateral: As provided under a Collateral Trust Joinder, the lender was added as a secured party to the Collateral Trust Agreement, and accordingly the pari passu obligations and commitments under the Revolving Credit Agreement are secured equally and ratably by the collateral of the Secured Notes.

INNOVATE is in compliance with its debt covenants as of December 31, 2021.

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI http://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Section 50
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-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 470
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Supplementary Financial Information

Supplementary Financial Information

12 Months Ended

Dec. 31, 2021

Offsetting [Abstract]

10. Supplementary Financial Information

Contracts in Progress

Contract assets and contract liabilities and recognized earnings consist of the following (in millions):


	December 31, 2021		December 31, 2020

Costs incurred on contracts in progress	$	2,161.5	$	752.9
Estimated earnings	316.4		139.0
Contract revenue earned on uncompleted contracts	2,477.9		891.9
Less: progress billings	2,438.4		838.5
	$	39.5	$	53.4

The above is included in the accompanying consolidated balance sheet under the following line items:
Contract assets	$	118.6	$	86.6
Contract liabilities	(79.1)		(33.2)
	$	39.5	$	53.4

Inventory

Inventory consists of the following (in millions):


	December 31, 2021		December 31, 2020

Raw materials and consumables	$	14.3	$	8.7
Work in process	1.2		—
Finished goods	1.5		1.2
Total inventory	$	17.0	$	9.9

Investments

Carrying values of other invested assets were as follows (in millions):


	December 31, 2021						December 31, 2020
	Measurement Alternative(1)		Equity Method		Total		Measurement Alternative(1)		Equity Method		Total
Common stock	$	—	$	2.1	$	2.1	$	—	$	2.5	$	2.5
Preferred stock	—		7.5		7.5		—		15.4		15.4
Fixed maturities	0.5		—		0.5		0.5		—		0.5
Put option	11.3		—		11.3		11.3		—		11.3
Equity method securities	—		34.6		34.6		—		25.7		25.7
Total	$	11.8	$	44.2	$	56.0	$	11.8	$	43.6	$	55.4

(1) The Company accounts for its equity securities without readily determinable fair values under the measurement alternative election of ASC 321, whereby the Company can elect to measure an equity security without a readily determinable fair value, that does not qualify for the practical expedient to estimate fair value (net asset value), at its cost minus impairment, if any.

Fair Value of Financial Instruments Not Measured at Fair Value

The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments, which were not measured at fair value on a recurring basis. The table excludes carrying amounts for cash and cash equivalents, accounts receivable, accounts payable and other current liabilities, and other assets and liabilities that approximate fair value due to relatively short periods to maturity (in millions):


December 31, 2021					Fair Value Measurement Using:
	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Assets
Other invested assets	$	11.3	$	11.3	$	—	$	—	$	11.3
Total assets not accounted for at fair value	$	11.3	$	11.3	$	—	$	—	$	11.3
Liabilities
Debt obligations (1)	$	626.3	$	648.2	$	—	$	648.2	$	—
Total liabilities not accounted for at fair value	$	626.3	$	648.2	$	—	$	648.2	$	—


December 31, 2020					Fair Value Measurement Using:
	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Assets
Other invested assets	$	11.3	$	11.3	$	—	$	—	$	11.3
Total assets not accounted for at fair value	$	11.3	$	11.3	$	—	$	—	$	11.3
Liabilities
Debt obligations (1)	$	560.7	$	579.2	$	—	$	579.2	$	—
Total liabilities not accounted for at fair value	$	560.7	$	579.2	$	—	$	579.2	$	—

(1) Excludes certain lease obligations accounted for under ASC 842, Leases.

Debt Obligations. The fair value of the Company’s long-term obligations was determined using Bloomberg Valuation Service BVAL. The methodology combines direct market observations from contributed sources with quantitative pricing models to generate evaluated prices and classified as Level 2.

Carrying amounts of the Company's long-term obligations of $626.3 million and $560.7 million for the years ending December 31, 2021 and December 31, 2020 are inclusive of $(4.5) million and $(15.1) million of Unamortized issuance discount, issuance premium, and deferred financing costs. See Footnote 9. Debt Obligations for further information.

Equity Method Investments

For the year ended December 31, 2021, certain investments subject to Regulation S-X Rule 4-08(g) held by the Company in aggregate have met the significance criteria as defined under SEC guidance. In accordance with Rule 8-03(b)(3) of Regulation S-X, the Company must assess whether its equity method investment is a significant equity method investment. In evaluating the significance of this investment, the Company performed the income, asset, and investment tests described in S-X 3-05 and S-X 1-02(w). Rule 8-03(b)(3) of Regulation S-X requires summarized financial information in a quarterly report if any of the three tests exceeds 20%. Under the income test, the Company’s proportionate share of its equity method investee's aggregated net income exceeded the applicable threshold of 20%, and accordingly it is required to provide summarized income statement information for this investee for all periods presented. The Company's share of net loss from its equity method investment totaled $2.8 million and $3.4 million for the years ended December 31, 2021 and 2020, respectively.

The following tables provide summarized financial information for the Company's equity method investments (in millions):


	December 31, 2021		December 31, 2020

Assets	$	604.5	$	524.2
Liabilities	481.5		405.9
Equity	$	123.0	$	118.3


	Years Ended December 31,
		2021		2020
Total revenues		$	624.1	$	468.2
Gross profit		$	95.5	$	82.7
Income from continuing operations		$	11.5	$	11.1
Net income		$	6.4	$	6.8

Other Non-Current Assets

The following tables provide information relating to Other non-current assets (in millions):


	December 31, 2021		December 31, 2020

Right of use asset	$	69.6	$	39.8
Other	3.7		2.4
Total other non-current assets	$	73.3	$	42.2

Accrued Liabilities

Accrued liabilities consist of the following (in millions):


	December 31, 2021		December 31, 2020

Accrued expenses and other current liabilities	$	24.5	$	27.9

Accrued payroll and employee benefits	38.9		34.7
Accrued interest	29.6		13.9
Accrued income taxes	0.4		0.6
Total accrued liabilities	$	93.4	$	77.1

Other Non-Current Liabilities

The following tables provide information relating to Other non-current liabilities (in millions):


	December 31, 2021		December 31, 2020

Lease liability, net of current portion	$	58.5	$	31.6

Other	4.8		8.2
Total other non-current liabilities	$	63.3	$	39.8

Leases

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Leases

11. Leases

Operating lease right-of-use-assets and finance leases are recognized in the Consolidated Balance Sheets within Other assets and Property, plant and equipment, net, respectively. Operating lease liability and finance lease liability are recognized in the Consolidated Balance Sheets within Other liabilities and Debt obligations, respectively. As of December 31, 2021 and December 31, 2020, lease right-of-use assets and lease liabilities consist of the following (in millions):


	December 31, 2021		December 31, 2020

Right-of-use assets:
Operating lease (Other non-current assets)	$	69.6	$	39.8
Finance lease (Property, plant and equipment, net)	0.2		0.9
Total right-of-use assets	$	69.8	$	40.7

Lease liabilities:
Current portion of operating lease (Other current liabilities)	$	15.5	$	11.2
Non-current portion of operating lease (Other non-current liabilities)	58.5		31.6
Finance lease (Debt obligations)	0.1		0.8
Total lease liabilities	$	74.1	$	43.6

The tables below present financial information associated with the Company's leases. This information is presented as of, and for the years ended December 31, 2021 and 2020. The Company has entered into operating and finance lease agreements primarily for land, office space, equipment and vehicles, expiring between 2022 and 2045. In addition, for the year ended December 31, 2021, the Company recorded an impairment of the right-of-use assets totaling $2.1 million in Other operating loss (gain).

For the years ended December 31, 2021 and 2020, the Company recorded short-term lease costs totaling $19.2 million and $18.0 million, respectively. The Company is expected to incur $9.9 million future short-term lease costs for the year ended December 31, 2022.

The following table summarizes the components of lease expense for the year ended December 31, 2021 and 2020 (in millions):


	Years Ended December 31,
		2021		2020
Finance lease cost:
Amortization of right-of-use assets		$	0.8	$	0.9
Interest on lease liabilities		—		0.1
Net finance lease cost		0.8		1.0
Operating lease cost		21.7		14.0

Variable lease cost		0.5		0.2
Sublease income		(0.5)		—
Total lease cost		$	22.5	$	15.2

Cash flow information related to leases for the years ended December 31, 2021 and 2020 is as follows (in millions):


	Years Ended December 31,
		2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases		$	—	$	0.1
Financing cash flows from finance leases		$	0.7	$	0.7
Operating cash flows from operating leases		$	21.9	$	13.9
Right-of-use assets obtained in exchange for new lease liabilities
Finance leases		$	0.1	$	0.1
Operating leases		$	48.3	$	15.6

As of December 31, 2021 and December 31, 2020, the weighted-average remaining lease term and the weighted-average discount rate for finance leases and operating leases are as follows:


	December 31, 2021		December 31, 2020

Weighted-average remaining lease term (years) - operating lease	7.5		4.0
Weighted-average remaining lease term (years) - finance lease	2.3		1.1
Weighted-average discount rate - operating lease	5.4	%	6.3	%
Weighted-average discount rate - finance lease	4.2	%	9.0	%

As of December 31, 2021, undiscounted cash flows for finance and operating leases are as follows (in millions):


	Operating Leases		Finance Leases
2022	$	18.7	$	0.1
2023	16.4		—
2024	11.6		—
2025	8.3		—
2026	5.5		—
Thereafter	30.7		—
Total future lease payments	91.2		0.1
Less: Present values	(17.2)		—
Total lease liability balance	$	74.0	$	0.1

In November 2021, INNOVATE Corp. entered into a ten-year lease agreement for a special purpose space in West Palm Beach, Florida. The new lease has not yet commenced, but will require future monthly lease payments of approximately $0.2 million over the entire lease term and yearly common area maintenance charges of $0.6 million, both of which are subject to 3% annual upward adjustments, with total square footage of 20,950. The new lease also provides for the Company to receive an allowance from the Landlord of $2.1 million to be used toward costs to design, engineer, install, supply and to construct improvements which is payable at the end of the lease. The future lease payments and the allowance are not yet recorded on our consolidated balance sheet. We expect the accounting lease commencement date for this initial portion of the lease for financial reporting purposes to begin no later than November 2023.

Also in November 2021, the Company entered into a three-year lease agreement for office space in West Palm Beach, Florida. The lease commencement date was November 15, 2021, and requires monthly lease payments of approximately $12.5 thousand over the entire lease term, subject to a 3% annual upward adjustment, with total square footage of 2,723. The future lease payments and corresponding right of use asset of $0.4 million were recorded on our consolidated balance sheet as a lease liability.

In December 2021, the Company entered into a five-year lease agreement with an option to extend the lease for another five years for office space in West Palm Beach, Florida. The new lease has not commenced yet, but will require future monthly lease payments of approximately $0.14 million over the entire lease term, subject to 3% annual upward adjustment, with total square footage of 15,786. The future lease payments are not yet recorded on our consolidated balance sheet, as the building is still under construction. We expect the accounting lease commencement date for this initial portion of the lease for financial reporting purposes to begin in the fourth quarter of 2023.

Leases

11. Leases


	December 31, 2021		December 31, 2020

Right-of-use assets:
Operating lease (Other non-current assets)	$	69.6	$	39.8
Finance lease (Property, plant and equipment, net)	0.2		0.9
Total right-of-use assets	$	69.8	$	40.7

Lease liabilities:
Current portion of operating lease (Other current liabilities)	$	15.5	$	11.2
Non-current portion of operating lease (Other non-current liabilities)	58.5		31.6
Finance lease (Debt obligations)	0.1		0.8
Total lease liabilities	$	74.1	$	43.6

The following table summarizes the components of lease expense for the year ended December 31, 2021 and 2020 (in millions):


	Years Ended December 31,
		2021		2020
Finance lease cost:
Amortization of right-of-use assets		$	0.8	$	0.9
Interest on lease liabilities		—		0.1
Net finance lease cost		0.8		1.0
Operating lease cost		21.7		14.0

Variable lease cost		0.5		0.2
Sublease income		(0.5)		—
Total lease cost		$	22.5	$	15.2

Cash flow information related to leases for the years ended December 31, 2021 and 2020 is as follows (in millions):


	Years Ended December 31,
		2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases		$	—	$	0.1
Financing cash flows from finance leases		$	0.7	$	0.7
Operating cash flows from operating leases		$	21.9	$	13.9
Right-of-use assets obtained in exchange for new lease liabilities
Finance leases		$	0.1	$	0.1
Operating leases		$	48.3	$	15.6

As of December 31, 2021 and December 31, 2020, the weighted-average remaining lease term and the weighted-average discount rate for finance leases and operating leases are as follows:


	December 31, 2021		December 31, 2020

Weighted-average remaining lease term (years) - operating lease	7.5		4.0
Weighted-average remaining lease term (years) - finance lease	2.3		1.1
Weighted-average discount rate - operating lease	5.4	%	6.3	%
Weighted-average discount rate - finance lease	4.2	%	9.0	%

As of December 31, 2021, undiscounted cash flows for finance and operating leases are as follows (in millions):


	Operating Leases		Finance Leases
2022	$	18.7	$	0.1
2023	16.4		—
2024	11.6		—
2025	8.3		—
2026	5.5		—
Thereafter	30.7		—
Total future lease payments	91.2		0.1
Less: Present values	(17.2)		—
Total lease liability balance	$	74.0	$	0.1

Income Taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

12. Income Taxes

The provisions expense for income taxes for the years ended December 31, 2021 and 2020 were as follows (in millions):


	Years Ended December 31,
	2021		2020
Current: Federal	$	0.1	$	(10.6)
State	1.8		1.5
Foreign	1.8		9.5
Subtotal Current	3.7		0.4
Deferred: Federal	0.8		3.1
State	0.2		0.1
Foreign	0.9		3.4
Subtotal Deferred	1.9		6.6
Income tax expense	$	5.6	$	7.0

The US and foreign components of income (loss) from continuing operations before income taxes for the years ended December 31, 2021 and 2020 were as follows (in millions):


	Years Ended December 31,
	2021		2020
US	$	(89.7)	$	(125.0)
Foreign	9.0		78.3
Loss from continuing operations before income taxes	$	(80.7)	$	(46.7)

The provisions expense for income taxes differed from the amount computed by applying the federal statutory income tax rate to income (loss) before income taxes due to the following items for the years ended December 31, 2021 and 2020 (in millions):


	Years Ended December 31,
	2021		2020
Tax provision (benefit) at federal statutory rate	$	(17.0)	$	(9.8)
Permanent differences	0.4		0.2
State tax, net of federal benefit	(1.6)		(6.9)
Foreign rate differential	0.4		0.2

Executive and stock compensation	0.4		1.2
Increase (decrease) in valuation allowance	(0.6)		24.3
Transaction costs	0.5		0.5
Return to provision	3.3		5.6


Rate Change	20.2		(3.0)
Transition to the Coronavirus Aid, Relief, and Economic Security Act	—		(10.9)
Withholding Tax Expense	—		7.3
Gain/loss on sale or deconsolidation of a subsidiary	—		(5.8)
Outside Basis Difference	0.9		(0.9)
Contingent Liability	—		2.2
AOCI Recycling	—		2.1
Other	1.6		1.3
Equity Income/Loss	(1.1)		(0.6)
Derivative	(1.8)		—
Income tax (benefit) expense	$	5.6	$	7.0

The income tax expense as of December 31, 2021 is $5.6 million. The amount recorded primarily relates to tax expense as calculated under ASC 740 for taxpaying entities. Additionally, the tax benefits associated with losses generated by the INNOVATE Corp. U.S. tax consolidated group and certain other businesses have been reduced by a full valuation allowance as we do not believe it is more-likely-than-not that the losses will be utilized.

The income tax expense was $7.0 million for the years ended December 31, 2020. The amount recorded primarily relates to tax expense incurred in China from the partial sale of HMN and the tax expense as calculated under ASC 740 for taxpaying entities which was mostly offset by a tax benefit from the carryback of net operating losses at the Insurance segment as a result of the enactment of the Coronavirus Aid, Relief, and Economic Security Act. Additionally, the tax benefits associated with losses generated by the INNOVATE Corp. U.S. tax consolidated group and certain other businesses were reduced by a full valuation allowance as we do not believe it is more-likely-than-not that the losses will be utilized.

Deferred income taxes reflect the net income tax effect of temporary differences between the basis of assets and liabilities for financial reporting purposes and for income tax purposes. Net deferred tax balances are comprised of the following as of December 31, 2021 and 2020 (in millions):


	December 31,
	2021		2020
Net operating loss carryforwards	$	63.8	$	77.0
Basis difference in fixed assets	0.7		0.8
Deferred compensation	6.7		6.6



Sec. 163(j) Carryforward	58.1		58.6

Lease liability	20.9		13.0
Other deferred tax assets	13.4		20.5
Total deferred tax assets	163.6		176.5
Valuation Allowance	(102.8)		(115.5)
Total net deferred tax assets	60.8		61.0

Basis difference in fixed assets	(14.1)		(22.1)

Right of use assets	(19.8)		(12.1)
Basis difference in intangibles	(26.1)		(22.2)
Other deferred tax liabilities	(6.9)		(8.6)
Total deferred tax liabilities	(66.9)		(65.0)

Net deferred tax liabilities	$	(6.1)	$	(4.0)

Deferred tax assets refer to assets that are attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets in essence represent future savings of taxes that would otherwise be paid in cash. The realization of the deferred tax assets is dependent upon the generation of sufficient future taxable income, including capital gains. If it is determined that the deferred tax assets cannot be realized, a valuation allowance must be established, with a corresponding charge to net income.

In accordance with ASC 740, the Company establishes valuation allowances for deferred tax assets that, in its judgment are not more likely-than-not realizable. These judgments are based on projections of future income or loss and other positive and negative evidence by individual tax jurisdiction. Changes in industry and economic conditions and the competitive environment may impact these projections. In accordance with ASC Topic 740, during each reporting period the Company assesses the likelihood that its deferred tax assets will be realized and determines if adjustments to its valuation allowances are appropriate.

Management evaluated the need to maintain the valuation allowance against the deferred taxes of the INNOVATE Corp. U.S. consolidated tax group (“the group”) for each of the reporting periods based on the positive and negative evidence available. The objective negative evidence evaluated was the group’s historical operating results over the prior three-year period. The group is in a cumulative three-year loss as of December 31, 2021 which provide negative evidence that is difficult to overcome and would require a substantial amount of objectively verifiable positive evidence of future income to support the realizability of the group’s deferred tax assets. While positive evidence exists by way of unrealized gains in the Company’s investments, management concluded that the negative evidence now outweighs the positive evidence. Thus, it is more likely than not that the group’s US deferred tax assets will not be realized.

Valuation allowances have been maintained against deferred tax assets based on losses generated by certain businesses that do not qualify to be included in the INNOVATE Corp. U.S. consolidated income tax return.

At December 31, 2021, the Company has gross U.S. net operating loss carryforwards available to reduce future taxable income of the U.S. consolidated group in the amount of $164.5 million. The Company expects that approximately $95.7 million of the gross U.S. net operating loss carryforwards would be available to offset taxable income in 2022. This estimate may change based on changes to actual results reported on the 2021 U.S. tax return. The amount of U.S. net operating loss carryforwards reflected in the financial statements differ from the amounts reported on the U.S. tax return due to uncertain tax positions related to tax laws and regulations that are subject to varied interpretation by the IRS.

Additionally, the Company has $103.6 million of gross U.S. net operating loss carryforwards from its subsidiaries that do not qualify to be included in the INNOVATE Corp. U.S. consolidated income tax return, including $66.2 million from R2, $33.1 million from DTV America, and other entities of $4.3 million.

Due to U.S. enacted Public Law 115-97, known informally as the Tax Cuts and Jobs Act (the "TCJA") in 2017, U.S. net operating loss carryforwards in the amount of $58.1 million, generated after 2017 have an indefinite carryforward period. U.S. net operating loss carryforwards, in the amount of $106.4 million, generated prior to 2018 will expire, if unused, by 2037.

Pursuant to the rules under Section 382, the Company believes that it underwent an ownership changes on May 29, 2014 and $46.1 million gross U.S. net operating losses recorded in the consolidated financial statements are subject to an annual limitation under IRC Sec. 382 of approximately $2.3 million. On November 4, 2015, INNOVATE issued 8.5 million shares of its stock in a primary offering. The Company believes the issuance resulted in a Section 382 ownership change and $31.7 million gross U.S. net operating losses recorded in the consolidated financial statements are subject to IRC Sec. 382.

The purchase of GrayWolf Industrial on November 30, 2018 triggered a Section 382 ownership change. $57.1 million of federal net operating losses acquired are subject to an annual limitation between $3.0 million and $4.0 million for the first five years beginning in 2019 and $1.1 million afterwards. $25.4 million of the GrayWolf U.S. net operating losses subject to Section 382 were generated in 2018, and, therefore, they do not expire.

Additionally, the Company has $11.4 million of acquired U.S. net operating losses from DTV America, which is subject to an annual limitation under Section 382 of the Internal Revenue Code.

As of December 31, 2021, the Company had foreign operating loss carryforwards of approximately $2.5 million.

The Company follows the provision of ASC 740 which prescribes a comprehensive model for how a company should recognize, measure, present, and disclose in its financial statements uncertain tax positions that the Company has taken or expects to take on a tax return. The Company is subject to challenge from various taxing authorities relative to certain tax planning strategies, including certain intercompany transactions as well as regulatory taxes.

The Company did not have any unrecognized tax benefits as of December 31, 2021 and 2020 related to uncertain tax positions that would impact the effective income tax rate if recognized. The company has reduced the net operating loss carryforward by $58.7 million for uncertain tax positions based on our interpretation of tax laws and regulations that are subject to varied interpretation by the IRS.

Below is a tabular reconciliation of the total amount of unrecognized tax benefits (in millions):


	December 31,
	2021		2020
Uncertain tax benefits - January 1	$	22.9	$	—
Gross increases - Tax positions in prior period	—		—
Gross decreases - Tax positions in prior period	(5.3)		—
Gross increases - Tax positions in current period	—		22.9
Settlement	—		—
Lapse in statute of limitations	—		—
Uncertain tax benefits - December 31	$	17.6	$	22.9

The Company conducts business globally, and as a result, INNOVATE or one or more of its subsidiaries files income tax returns in the United States federal jurisdiction and various state and foreign jurisdictions. In the normal course of business the Company is subject to examination by taxing authorities throughout the world. Tax years 2002-2020 remain open for examination.

The Company is currently under examination in various domestic and foreign tax jurisdictions. The open tax years contain matters that could be subject to differing interpretations of applicable tax laws and regulations as they relate to the amount, character, timing or inclusion of revenue and expenses or the applicability of income tax credits for the relevant tax period. Given the nature of tax audits, there is a risk that disputes may arise.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies

13. Commitments and Contingencies

Future minimum purchase obligations as of December 31, 2021 were as follows (in millions):


2022	$	347.1
2023	29.8
2024	1.4
2025	—
2026	—
Thereafter	—
Total obligations	$	378.3

The Company’s future minimum purchase obligations are primarily for materials and subcontractor costs to be used in its construction projects. The amounts are fixed and determinable and do not include variable components.

Litigation

The Company is subject to claims and legal proceedings that arise in the ordinary course of business. Such matters are inherently uncertain, and there can be no guarantee that the outcome of any such matter will be decided favorably to the Company or that the resolution of any such matter will not have a material adverse effect upon the Company’s Consolidated Financial Statements. The Company does not believe that any of such pending claims and legal proceedings will have a material adverse effect on its Consolidated Financial Statements. The Company records a liability in its Consolidated Financial Statements for these matters when a loss is known or considered probable and the amount can be reasonably estimated. The Company reviews these estimates each accounting period as additional information is known and adjusts the loss provision when appropriate. If a matter is both probable to result in a liability and the amount of loss can be reasonably estimated, the Company estimates and discloses the possible loss or range of loss to the extent necessary for its Consolidated Financial Statements not to be misleading. If the loss is not probable or cannot be reasonably estimated, a liability is not recorded in the Company's Consolidated Financial Statements. Any legal or other expenses associated with the litigation are accrued for as the expenses are incurred.

Based on a review of the current facts and circumstances with counsel in each of the matters disclosed, management has provided for what is believed to be a reasonable estimate of loss exposure. While acknowledging the uncertainties of litigation, management believes that the ultimate outcome of litigation will not have a material effect on its financial position and will defend itself vigorously.

VAT assessment

On February 20, 2017, and on August 15, 2017, the Company's subsidiary, PTGi International Carrier Services Ltd. (“PTGi-ICS Ltd”), received notices from Her Majesty’s Revenue and Customs office in the U.K. (the "HMRC") indicating that it was required to pay certain Value-Added Taxes ("VAT") for the 2015 and 2016 tax years. On February 15, 2022, the Upper Tribunal (Tax and Chancery) Chamber (the "Tax Tribunal") found in favor of PTGi-ICS Ltd. HMRC has acknowledged that it will not appeal the Tax Tribunal’s decision and it must pay reasonable legal fees incurred by PTGi-ICS Ltd. While repayment of the outstanding VAT payment is expected to be made soon, the Company shall separately pursue reimbursement of legal fees.

Fair Value Investments Litigation

On October 1, 2020, Fair Value Investments Incorporated (“FVI”) filed a putative stockholder class action and derivative complaint in the Delaware Court of Chancery (the "Court") against INNOVATE Corp. (f/k/a HC2 Holdings, Inc.) and certain of DBMG’s current and former officers and directors, including current and former INNOVATE officers and directors AJ Stahl, Kenneth S. Courtis, Robert V. Leffler, Jr., Philip A. Falcone, Michael J. Sena, and Paul Voigt (together with INNOVATE, the “INNOVATE Defendants”) styled Fair Value Investments Incorporated v. Roach, et al., C.A. No. 2020-0847-JTL (Del. Ch.) (the “FVI Action”). In the FVI Action, FVI alleges that the Company, in its capacity as DBMG’s controlling stockholder, and DBMG’s current and former officers and directors breached their fiduciary duties to DBMG and DBMG’s minority stockholders by approving certain transactions that allegedly provide disproportionate benefits to the Company. FVI challenges the following transactions: (i) DBMG’s payments to the Company from 2016–present pursuant to a Tax Sharing Agreement between DBMG and the Company; (ii) DBMG acting as a guarantor or providing collateral for loans taken on by the Company; (iii) DBMG’s issuance of dividends to its common and preferred stockholders in 2017–2020; (iv) DBMG’s issuance of preferred stock to the Company to finance DBMG’s 2018 acquisition of GrayWolf Industrial; and (v) the Company’s appointment of directors to DBMG’s board of directors by written consent in lieu of holding an annual stockholder meeting. On February 23, 2021, FVI filed an Amended Verified Stockholder Class Action Complaint (the "Amended Complaint"). In the Amended Complaint, FVI named two additional defendants: the Company’s Chief Executive Officer, Wayne Barr, and DBMG’s General Counsel, Scott D. Sherman. The Amended Complaint includes additional fact allegations in support of the largely similar claims raised in the original complaint. Defendants moved to dismiss the Amended Complaint on April 23, 2021. The Court heard argument on the motions to dismiss on January 21, 2022. Ruling from the bench, the Court granted Defendants’ motions to dismiss, in part. The Court dismissed all claims against all individual defendants other than Ronald Yagoda, including all claims against AJ Stahl, Kenneth S. Courtis, Robert V. Leffler, Jr., Philip A. Falcone, Michael J. Sena, and Paul Voigt. As to the two remaining defendants—INNOVATE Corp. and Ronald Yagoda—the Court dismissed all claims regarding (i) DBMG acting as a guarantor or providing collateral for loans taken on by the Company; (ii) DBMG’s issuance of dividends to its common and preferred stockholders in 2017–2020; (iii) the Company’s appointment of directors to DBMG’s board of directors by written consent in lieu of holding an annual stockholder meeting; and (iv) DBMG’s payments to the Company in 2016 and May 2017 pursuant to a Tax Sharing Agreement between DBMG and the Company. The Company believes the surviving claims in the FVI Amended Complaint relating to (i) DBMG’s payments to the Company after May 2017 pursuant to a Tax Sharing Agreement between DBMG and the Company and (ii) DBMG’s issuance of preferred stock to the Company to finance DBMG’s 2018 acquisition of GrayWolf Industrial are without merit, and the Company intends to vigorously defend this litigation.

DTV Derivative Litigation

On March 15, 2021, twenty-two DTV stockholders and eight holders of DTV stock options filed a stockholder class action and derivative complaint in the Delaware Court of Chancery in an action styled Bocock, et al., v. HC2 Holdings, Inc. et al., C.A. No. 2021-0224 (Del. Ch.). Plaintiffs named as defendants INNOVATE Corp. (f/k/a HC2 Holdings, Inc.), HC2 Broadcasting Holdings, Inc., HC2 Broadcasting Inc., and Continental General Insurance Corporation (the “INNOVATE Entities”) and certain current and former officers and directors of the INNOVATE Entities and DTV, including Phillip Falcone, Michael Sena, Wayne Barr, Jr., Les Levi, Paul Voigt, Ivan Minkov, and Paul Robinson (the “Individual Defendants”). Plaintiffs principally allege that the defendants breached their fiduciary duties and/or aided and abetted breaches of fiduciary duty by participating in a “scheme” in which the INNOVATE Entities (i) acquired majority voting and operating control over DTV; (ii) exploited that control to misappropriate DTV’s assets and business opportunities for the benefit of the INNOVATE Entities; and (iii) purchased DTV stock at a discount to fair value and diminished the value of DTV stock options. Plaintiffs allege that the Individual Defendants (i) “prompted” the INNOVATE Entities to purchase more than 100 low-power television (“LPTV”) broadcast stations originally identified for potential acquisition by DTV, (ii) allowed the INNOVATE Entities to misappropriate DTV technology, known as “DTV Cast,” (iii) caused DTV to transfer unspecified LPTV broadcasting station licenses to INNOVATE affiliates “without paying any value,” and (iv) transferred to the INNOVATE Entities unspecified DTV broadcasting stations that had been “repacked” by the FCC. Defendants moved to dismiss the Complaint on May 19, 2021. On June 23, 2021, plaintiffs amended their complaint. In the amended complaint, plaintiffs assert the same claims they asserted in their initial complaint, added a claim for waste associated with DTV’s purported transfer of licenses and construction permits for less than fair value, and dropped Paul Robinson as a defendant. Defendants moved to dismiss the amended complaint in its entirety on August 25, 2021, and the parties completed briefing on the motions to dismiss on November 10, 2021. The Court will hear argument on the motions to dismiss on March 29, 2022. The Company believes the allegations in the amended complaint are without merit and the INNOVATE-related defendants intend to move to dismiss the amended complaint. The Company intends to vigorously defend this litigation.

Separation from Philip A. Falcone

The Company has engaged in ongoing negotiations with Philip A. Falcone, the former Chairman, President and Chief Executive Officer of the Company, regarding his separation. On December 18, 2020, Mr. Falcone filed a demand for arbitration against the Company with the American Arbitration Association ("AAA"). The Company filed its Answering Statement and Counterclaims with the AAA on March 5, 2021. The Company contends that the claims in Mr. Falcone’s demand are without merit and that the Company has both factual and legal defenses. Mr. Falcone filed his Answer to the Company’s Counterclaims on March 19, 2021. The Company and Mr. Falcone mediated on July 14, 2021, and on July 19, 2021, both the Company and Mr. Falcone accepted the mediator’s proposal, and the Company has reserved for an amount consistent with the mediator’s proposal. The parties executed an agreement on January 31, 2022 memorializing the terms of their settlement. The Company paid the settlement amount in February 2022 in accordance with the agreement except for a portion of the amount that will be paid following court approval. The settlement reached was consistent with the amount accrued for.

Books and Records DemandOn July 28, 2021, the Company received a demand from a company stockholder pursuant to 8 Del. C. § 220 to inspect books and records of the Company relating to, among other things, the Company's sale of its Insurance segment. The Company has responded to the demand and cannot determine at this time if the books and records demand will lead to litigation.

Share-based Compensation

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Share-based Compensation

14. Share-based Compensation

On April 11, 2014, INNOVATE’s Board of Directors adopted the INNOVATE Corp. Omnibus Equity Award Plan (the "2014 Plan"), which was originally approved at the annual meeting of stockholders held on June 12, 2014. On April 21, 2017, the Board of Directors, subject to stockholder approval, adopted the Amended and Restated 2014 Omnibus Equity Award Plan (the "Restated 2014 Plan"). The Restated 2014 Plan was approved by INNOVATE's stockholders at the annual meeting of stockholders held on June 14, 2017. Subject to adjustment as provided in the Restated 2014 Plan, the Restated 2014 Plan authorizes the issuance of 3,500,000 shares of common stock of INNOVATE, plus any shares that again become available for awards under the 2014 Plan, plus any shares that again become available for awards under the Restated 2014 Plan.

On April 20, 2018, the Board of Directors, subject to stockholder approval, adopted the Second Amended and Restated 2014 Omnibus Equity Award Plan (the "Second A&R 2014 Plan"). The Second A&R 2014 Plan was approved by INNOVATE's stockholders at the annual meeting of stockholders held on June 13, 2018. Subject to adjustment as provided in the Second A&R 2014 Plan, the Second A&R 2014 Plan authorizes the issuance of up to 3,500,000 shares of common stock of INNOVATE plus any shares that again become available for awards under the 2014 Plan or the Amended 2014 Plan.

The Second A&R 2014 Plan provides that no further awards will be granted pursuant to the Amended 2014 Plan. However, awards previously granted under either the 2014 Plan or the Amended 2014 Plan will continue to be subject to and governed by the terms of the 2014 Plan and Amended 2014 Plan, respectively. The Compensation Committee of INNOVATE's Board of Directors administers the 2014 Plan, the Amended 2014 Plan and the Second A&R 2014 Plan and has broad authority to administer, construe and interpret the plans.

The Second A&R 2014 Plan provides for the grant of awards of non-qualified stock options, incentive (qualified) stock options, stock appreciation rights, restricted stock awards, restricted stock units, other stock based awards, performance compensation awards (including cash bonus awards) or any combination of the foregoing. The Company typically issues new shares of common stock upon the exercise of stock options, as opposed to using treasury shares.

The Company follows guidance which addresses the accounting for share-based payment transactions whereby an entity receives employee services in exchange for either equity instruments of the enterprise or liabilities that are based on the fair value of the enterprise’s equity instruments or that may be settled by the issuance of such equity instruments. The guidance generally requires that such transactions be accounted for using a fair-value based method and share-based compensation expense be recorded, based on the grant date fair value, estimated in accordance with the guidance, for all new and unvested stock awards that are ultimately expected to vest as the requisite service is rendered.

The Company granted zero and 143,096 options during the year ended December 31, 2021 and 2020, respectively. For the year ended December 31, 2020, the weighted average fair value at date of grant for options granted was $1.47 per option.


									Year Ended December 31,
									2020
Expected option life (in years)									4.3 years
Risk-free interest rate									0.24%
Expected volatility									62.23%
Dividend yield									—%

Total share-based compensation expense recognized by the Company and its subsidiaries under all equity compensation arrangements was $2.4 million and $3.0 million for the years ended December 31, 2021 and 2020, respectively.

All grants are time based and vest either immediately or over a period established at grant, typically with a requisite service period of two to three years for the employee to vest in the stock-based award, subject to discretion by Compensation Committee of the Board of Directors. There are no other substantive conditions for vesting. The Company recognizes compensation expense for equity awards, reduced by actual forfeitures, using the straight-line basis.

The Company was authorized to issue approximately 2.2 million and 4.8 million shares for awards for the years ended December 31, 2021 and 2020, respectively.

Restricted Stock

A summary of INNOVATE’s restricted stock activity is as follows:


	Shares	Weighted Average Grant Date Fair Value
Unvested - December 31, 2019	2,213,775	$	5.12
Granted	1,152,202	$	2.74
Vested	(2,258,905)	$	4.08
Forfeited	(478,639)	$	5.87
Unvested - December 31, 2020	628,433	$	3.93
Granted	593,458	$	3.81
Vested	(514,543)	$	3.89
Forfeited	(151,469)	$	4.13
Unvested - December 31, 2021	555,879	$	3.79

At December 31, 2021, the total unrecognized stock-based compensation expense related to unvested restricted stock was $1.2 million. The unrecognized compensation cost is expected to be recognized over the remaining weighted average period of 1.8 years.

Stock Options

A summary of INNOVATE’s stock option activity is as follows:


	Shares	Weighted Average Exercise Price
Outstanding - December 31, 2019	7,067,592	$	6.52
Granted	143,096	$	2.62
Exercised	—	$	—
Forfeited	(142,503)	$	5.45
Expired	(2,328,327)	$	9.18
Outstanding - December 31, 2020	4,739,858	$	5.13
Granted	—	$	—
Exercised	—	$	—
Forfeited	—	$	—
Expired	(23,999)	$	5.31
Outstanding - December 31, 2021	4,715,859	$	5.13

Eligible for exercise	4,714,509	$	5.13

At December 31, 2021, the intrinsic value and average remaining life of the Company's outstanding options were $0.2 million and approximately 2.6 years, and intrinsic value and average remaining life of the Company's exercisable options were $0.2 million and approximately 2.6 years. The maximum contractual term of the Company's exercisable options is approximately 10 years.

At December 31, 2021, the total unrecognized stock-based compensation expense related to unvested stock options was $0.1 million. The unrecognized compensation cost is expected to be recognized over the remaining weighted average period of 0.2 years. There are 1,350 unvested stock options expected to vest, with a weighted average remaining life of 7.2 years, a weighted average exercise price of $2.62, and an intrinsic value of $0.1 million.

Equity

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

Equity

15. Equity

Rights Offering

On September 9, 2020, INNOVATE announced its intention to commence a rights offering (the “Rights Offering”), pursuant to which each holder of its outstanding common stock and participating preferred stock would receive transferable subscription rights entitling such stockholder to purchase shares of INNOVATE’s common stock at a subscription price equal to $2.27 per share based on the last sale price for our common stock on the trading day prior to September 9, 2020.

On the same date, INNOVATE entered into an investment agreement (the "Investment Agreement") with Lancer Capital LLC ("Lancer Capital"), an investment fund led by Avram Glazer, the Chairman of our Board of Directors, pursuant to which Lancer Capital agreed to purchase up to $35.0 million of Series B Preferred Stock (as defined below) in connection with the Rights Offering based on subscription participation of common shareholders (the "Backstop Commitment"). The Investment Agreement provides for an advance of up to $10.0 million of the Backstop Commitment at the option of the Company.

On September 17, 2020, Lancer Capital funded $5.56 million, receiving 5,560 shares of Series B Preferred stock.

The Investment Agreement provides that, to the extent that Lancer Capital is precluded by applicable rules and regulations (including those of the NYSE, the Texas Department of Insurance and any other applicable regulators) from purchasing common stock by exercising rights received in the Rights Offering, Lancer Capital will purchase additional shares of Series B Preferred Stock (in excess of any Initial Funding amount) equivalent to its allocable participation right. The Investment Agreement also restricts Lancer Capital from purchasing or otherwise acquiring any other rights we issue in the Rights Offering.

Lancer Capital did not receive any compensation or other consideration for entering into or consummating the Investment Agreement. The Backstop Commitment is defined as a financial instrument and measurable at fair value on each reporting period. INNOVATE used both market observable inputs and unobservable data to derive the fair value as of the reporting date. The Backstop Commitment was classified as Level 3. Fair value for the Backstop Commitment as of September 30, 2020, was zero. The Backstop Commitment ceased upon the consummation of the Rights Offering.

On November 20, 2020, INNOVATE's stockholders voted to approve (i) an amendment to the Company’s certificate of incorporation to increase the number of authorized shares of common stock of the Company to 160,000,000 shares and (ii) the conversion of up to 35,000 shares of Series B preferred stock of the Company in connection with the Company’s Rights Offering.

On November 20, 2020, we completed the Rights Offering and issued a total of 28,716,820 shares of our common stock, 16,825,280 common shares were issued immediately, and 11,891,540 were issued from the conversion of 26,994 shares of Series B Preferred stock as noted below.

Net proceeds of the November 20, 2020 issuance was $59.6 million. Inclusive of the initial Series B issuance on September 17, 2020, total net proceeds of the Rights Offering, after deducting the dealer manager fees and other offering expenses, were approximately $61.5 million.

Preferred Shares

The Company’s preferred shares authorized, issued and outstanding consisted of the following:


	December 31, 2021	December 31, 2020

Preferred shares authorized, $0.001 par value	20,000,000	20,000,000
Series A shares issued and outstanding(1)	—	6,375
Series A-2 shares issued and outstanding(1)	—	4,000
Series A-3 shares issued and outstanding	6,125	—
Series A-4 shares issued and outstanding	10,000	—

(1) In 2020, CGI, formerly a wholly owned subsidiary of the Company, owned 6,125 shares of Series A Preferred Stock and 10,000 shares of Series A-2 Preferred Stock which were eliminated in consolidation.

Preferred Share Activity

Series A Shares

CGI Purchase

On December 18, 2018, and December 20, 2018, CGI, a wholly owned subsidiary of the Company closed on the purchase of 6,125 shares of Series A Preferred Stock, and on January 11, 2019, CGI purchased 10,000 shares of Series A-2 Preferred Stock. The shares and dividends accrued related to the Series A-2 Preferred Stock owned by CGI were eliminated in consolidation prior to its sale on July 1, 2021. See Note 3. Discontinued Operations for further information.

Luxor and Corrib Conversions

On August 2, 2016, the Company entered into separate agreements with each of Corrib Master Fund, Ltd. ("Corrib"), then a holder of 1,000 shares of Series A Preferred Stock, and certain investment entities managed by Luxor Capital Group, LP ("Luxor"), that together then held 9,000 shares of Series A-1 Preferred Stock. In conjunction with the conversions, the Company agreed to provide the following two forms of additional consideration for as long as the Preferred Stock remained entitled to receive dividend payments (the "Additional Share Consideration"):

•The Company agreed that in the event that Corrib and Luxor would have been entitled to any Participating Dividends payable, had they not converted the Preferred Stock (as defined in the respective Series A and Series A-1 Certificate of Designation), after the date of their Preferred Share conversion, then the Company will issue to Corrib and Luxor, on the date such Participating Dividends become payable by the Company, in a transaction exempt from the registration requirements of the Securities Act the number of shares of common stock equal to (a) the value of the Participating Dividends Corrib or Luxor would have received pursuant to Sections (2)(c) and (2)(d) of the respective Series A and Series A-1 Certificates of Designation, divided by (b) the Thirty Day VWAP (as defined in the respective Series A and Series A-1 Certificates of Designation) for the period ending two business days prior to the underlying event or transaction that would have entitled Corrib or Luxor to such Participating Dividend had Corrib’s or Luxor’s Preferred Stock remain unconverted.

•The Company agreed that it will issue to Corrib and Luxor, on each quarterly anniversary commencing May 29, 2017 (or, if later, the date on which the corresponding dividend payment is made to the holders of the outstanding Preferred Stock), through and until the Maturity Date (as defined in the respective Series A and Series A-1 Certificates of Designation), in a transaction exempt from the registration requirements of the Securities Act the number of shares of common stock equal to (a) 1.875% the Accrued Value (as defined in the respective Series A and Series A-1 Certificates of Designation) of Corrib’s or Luxor’s Preferred Stock as of the Closing Date (as defined in applicable Voluntary Conversion Agreements) divided by (b) the Thirty Day VWAP (as defined in the respective Series A and Series A-1 Certificate of Designation) for the period ending two business days prior to the applicable Dividend Payment Date (as defined in the respective Series A and Series A-1 Certificate of Designation).

For the year ended December 31, 2021, 119,784 and 13,477 shares of the Company's common stock have been issued to Luxor and Corrib, respectively, in conjunction with the conversion agreements. For the year ended December 31, 2020, 278,194 and 31,379 shares of the Company's common stock have been issued to Luxor and Corrib, respectively, in conjunction with the conversion agreements.

The fair value of the Additional Share Consideration for the year ended December 31, 2021 was valued by the Company at $0.3 million and for the year ended December 31, 2020 was valued by the Company at $0.8 million on the date of issuance and was recorded within Preferred stock and deemed dividends from conversion line item of the Consolidated Statements of Operations as a deemed dividend.

On May 29, 2021, pursuant to the terms of the Additional Share Consideration, the final Participating Dividend payments were made to Luxor and Corrib.

Redemption and Conversion of Series A and A-2 Shares

On May 29, 2021, pursuant to the Certificate of Designation, holders of the Series A and A-2 Preferred Stock caused the Company to redeem the Series A and A-2 Preferred Stock at the accrued value per share plus accrued but unpaid dividends (to the extent not included in the accrued value of Series A and A-2 Preferred Stock), of which $10.4 million was paid in cash to holders of the Series A and A-2 Preferred Stock. Each share of Series A and A-2 Preferred Stock that was not so redeemed was automatically converted into shares of common stock at the conversion price then in effect, of which 50,410 shares of the Company's common stock were issued in lieu of cash to holders of the Series A Preferred Stock. In connection with the Stock Purchase Agreement, CGI, formerly a wholly owned subsidiary of the Company, entered into a letter agreement with the Company to not redeem at maturity or seek redemption of 6,125 shares of the Company's Series A and 10,000 shares of the Company's Series A-2 Preferred Stock with a combined redemption value of $16.1 million with a current fair value as of December 31, 2021 of $18.8 million.

Series A-3 and A-4 Share Issuance and Conversion

On July 1, 2021 (the "Exchange Date") and as a part of the sale of CIG, INNOVATE entered into an exchange agreement (the "Exchange Agreement") with the now deconsolidated CGIC, who held the remaining shares of the Series A and Series A-2 Preferred Stock. Per the Exchange Agreement, INNOVATE exchanged the Series A and Series A-2 shares that CGIC held for an equivalent number of Series A-3 Convertible Participating Preferred Stock ("Series A-3") and Series A-4 Convertible Participating Preferred Stock ("Series A-4"), respectively. The terms remained substantially the same, except that the Series A-3 and Series A-4 will mature on July 1, 2026. A cash payment of $0.3 million was made as a part of the exchange for accrued and unpaid dividends on the Series A and Series A-2 being exchanged.

Upon issuance of the Series A-3 and Series A-4 Preferred Stock on July 1, 2021, the Series A-3 and Series A-4 have been classified as temporary equity in the Company's Balance Sheet.

Dividends. The Series A-3 and Series A-4 Preferred Stock accrues a cumulative quarterly cash dividend at an annualized rate of 7.50%. The accrued value of the Series A-3 and Series A-4 Preferred Stock will accrete quarterly at an annualized rate of 4.00% that is reduced to 2.00% or 0.0% if the Company achieves specified rates of growth measured by increases in its net asset value; provided, that the accreting dividend rate will be 7.25% in the event that (A) the daily volume weighted average price ("VWAP") of the Company's common stock is less than a certain threshold amount, (B) the Company's common stock is not registered under Section 12(b) of the Securities Exchange Act of 1934, as amended, (C) the Company's common stock is not listed on certain national securities exchanges or the Company is delinquent in the payment of any cash dividends. The Series A-3 and Series A-4 Preferred Stock is also entitled to participate in cash and in-kind distributions to holders of shares of Company's common stock on an as-converted basis.

Subsequent Measurement. The Company has elected to account for the Series A-3 and Series A-4 Preferred Stock by immediately recognizing changes in the redemption value as they occur. The carrying value of the Series A-3 and Series A-4 Preferred Stock will be adjusted to equal what the redemption amount would be as if the redemption were to occur at the end of the reporting period as if it were also the redemption date for the Series A-3 and Series A-4 Preferred Stock. Any cash dividends paid will directly reduce the carrying value of the Series A-3 and Series A-4 Preferred Stock until the carrying value equals the redemption value. The Company has a history of paying dividends on its preferred stock and expects to continue to pay such dividends each quarter.

Optional Conversion. Each share of Series A-3 and Series A-4 may be converted by the holder into shares of the Company's common stock at any time based on the then-applicable Conversion Price. Each share of Series A-3 is initially convertible at a conversion price of $4.25 (as it may be adjusted from time to time, the "Series A-3 Conversion Price"), and each share of Series A-4 is initially convertible at a conversion price of $8.25 (as it may be adjusted from time to time, the "Series A-4 Conversion Price") (“collectively the “Conversion Prices”). The Conversion Prices are subject to adjustment for dividends, certain distributions, stock splits, combinations, reclassifications, reorganizations, mergers, recapitalizations and similar events, as well as in connection with issuances of equity or equity-linked or other comparable securities by the Company at a price per share (or with a conversion or exercise price or effective issue price) that is below the Conversion Prices’ (which adjustment shall be made on a weighted average basis). Actual conversion prices at the time of the exchange were $3.52 for the Series A and $5.33 for the Series A-2.

Redemption by the Holder / Automatic Conversion. On July 1, 2026, holders of the Series A-3 and Series A-4 shall be entitled to cause the Company to redeem the Series A-3 and Series A-4 at the accrued value per share plus accrued but unpaid dividends (to the extent not included in the accrued value of Series A-3 and Series A-4). Each share of Series A-3 and Series A-4 that is not so redeemed will be automatically converted into shares of the Company's common stock at the Conversion Price then in effect.

Upon a change of control (as defined in each Certificate of Designation) holders of the Series A-3 and Series A-4 shall be entitled to cause the Company to redeem their shares of Series A-3 and Series A-4 at a price per share of Series A-3 and Series A-4 equal to the greater of (i) the accrued value of the Series A-3 and Series A-4, plus any accrued and unpaid dividends (to the extent not included in the accrued value of Series A-3 and Series A-4 Preferred Stock), and (ii) the value that would be received if the share of Series A-3 and Series A-4 were converted into shares of the Company's common stock immediately prior to the change of control.

Redemption by the Company / "Company Call Option". At any time after the third anniversary of the Original Issue Date, the Company may redeem the Series A-3/Series A-4, in whole but not in part, at a price per share generally equal to 150% of the accrued value per share, plus accrued but unpaid dividends (to the extent not included in the accrued value of the Series A-3/Series A-4), subject to the holder's right to convert prior to such redemption.

Forced Conversion. The Company may force conversion of the Series A-3 and Series A-4 into shares of the Company's common stock if the common stock's thirty-day VWAP exceeds 150% of the then-applicable Conversion Price and the Common Stock’s daily VWAP exceeds 150% of the then-applicable Conversion Price for at least twenty trading days out of the thirty trading day period used to calculate the thirty-day VWAP. In the event of a forced conversion, the holders of Series A-3 and Series A-4 will have the ability to elect cash settlement in lieu of conversion if certain market liquidity thresholds for the Company's common stock are not achieved.

Liquidation Preference. In the event of any liquidation, dissolution or winding up of the Company (any such event, a “Liquidation Event”), the holders of Series A-3 and Series A-4 will be entitled to receive per share the greater of (i) the accrued value of the Series A-3 and Series A-4, plus any accrued and unpaid dividends (to the extent not included in the accrued value of Series A-3 and Series A-4), and (ii) the value that would be received if the share of Series A-4 and Series A-4 were converted into shares of the Company's common stock immediately prior to such occurrence. The Series A-3 and Series A-4 will rank junior to any existing or future indebtedness but senior to the Company's common stock and any future equity securities other than any future senior or pari passu preferred stock issued in compliance with each Certificate of Designation. The Series A-3 Preferred Stock and the Series A-4 Preferred Stock rank at parity.

Voting Rights. Except as required by applicable law, the holders of the shares of the Series A-3 and Series A-4 will be entitled to vote on an as-converted basis with the holders of the Series A-3 Preferred Stock and the Series A-4 Preferred Stock (on an as-converted basis), as applicable, and the holders of the Company’s common stock on all matters submitted to a vote of the holders of the Company's common stock with the holders of New Preferred Stock on certain matters, and separately as a class on certain limited matters.

Consent Rights. For so long as any of the Series A-3 and Series A-4 is outstanding, consent of the holders of shares representing at least 75% of certain of the Series A-3 and Series A-4 then outstanding is required for certain material actions.

Participation Rights. Pursuant to the securities purchase agreements entered into with the initial purchasers of the Series A-3 Preferred Stock and the Series A-4 Preferred Stock, subject to meeting certain ownership thresholds, certain purchasers of the Series A-3 Preferred Stock and the Series A-4 Preferred Stock are entitled to participate, on a pro-rata basis in accordance with their ownership percentage, determined on an as-converted basis, in issuances of equity and equity linked securities by the Company. In addition, subject to meeting certain ownership thresholds, certain initial purchasers of the Series A-3 Preferred Stock and the Series A-4 Preferred Stock will be entitled to participate in issuances of preferred securities and in debt transactions of the Company.

At December 31, 2021, Series A-3 Preferred Stock and Series A-4 Preferred Stock were convertible into 1,740,700 and 1,875,533 shares, respectively, of INNOVATE's common stock.

Preferred Share Dividends

During the year ended December 31, 2021 and 2020, INNOVATE's Board of Directors (the "Board") declared cash dividends with respect to INNOVATE’s issued and outstanding Preferred Stock, excluding the Series A and Series A-2 Preferred Stock which was owned by CGIC and was eliminated in consolidation prior to the sale of the Insurance segment on July 1, 2021, as presented in the following table (in millions):

2021

Declaration Date

March 31, 2021

May 29, 2021

September 30, 2021

December 31, 2021

Holders of Record Date

March 31, 2021

May 29, 2021

September 30, 2021

December 31, 2021

Payment Date

April 15, 2021

June 4, 2021

October 15, 2021

January 15, 2022

Total Dividend

0.2

0.1

0.3

2020

Declaration Date

March 31, 2020

June 30, 2020

September 30, 2020

December 31, 2020

Holders of Record Date

March 31, 2020

June 30, 2020

September 30, 2020

December 31, 2020

Payment Date

April 15, 2020

July 15, 2020

October 15, 2020

January 15, 2021

Total Dividend

0.2

DBMGi Series A Preferred Stock Issuance

On November 30, 2018, CGIC purchased 40,000 shares of DBMGi's Series A Preferred Stock, which was eliminated in consolidation. On July 1, 2021, as a part of the sale of CIG which results in the deconsolidation of the entity, INNOVATE was deemed to have issued $40.9 million of DBMGi Series A Preferred Stock to the now deconsolidated CGIC.

Upon issuance of the DBMGi Series A Preferred Stock on July 1, 2021, the DBMGi Series A Preferred Stock has been classified as temporary equity in the Company's Balance Sheet.

Redemption Option. The DBMGi Preferred Stock is redeemable at any time, in whole or in part, at the option of the Company, or at any time or by the holder prior to July 2026.

Dividends. The DBMGi Series A Preferred Stock will accrue a cumulative quarterly cash or payment in kind dividend at a rate of (a) for the first five years following the date of issuance, (i) 9.00% per annum if dividends are paid in kind or (ii) 8.25% per annum if dividends are paid in cash and (b) starting on the fifth anniversary of the date of issuance, a rate per annum equal to (i) LIBOR (as defined in the Certificate of Designation) plus a spread of 5.85% (together, the “LIBOR Rate”) per annum, plus 0.75% if dividends are paid in kind or (ii) the LIBOR Rate per annum in the case of dividends paid in cash.

Subsequent Measurement. The DBMGi Series A Preferred Stock will be subsequently measured each reporting period at its maximum redemption value, which is equal to the stated value plus all accrued, accumulated and unpaid dividends as of the end of each reporting period as they are currently redeemable. The Company pays accrued dividends quarterly in cash (with an option to PIK), and there will likely not be any subsequent measurement adjustments recorded to the initial carrying amount. As such no accretion will be recognized until future dividend payments would otherwise reduce the carrying value below its redemption value. In such a case, the Company will adjust the carrying value to its maximum redemption amount.

During the year ending December 31, 2021, DBMGi's Board of Directors declared cash dividends with respect to DBMGi’s issued and outstanding Preferred Stock, as presented in the following table (in millions):

2021

Declaration Date

September 30, 2021

December 31, 2021

Holders of Record Date

September 30, 2021

December 31, 2021

Payment Date

October 15, 2021

January 15, 2022

Total Dividend

0.8

0.9

Stockholders’ Rights Agreement

On August 30, 2021, the Company entered into a Tax Benefits Preservation Plan (the “Plan”) with Computershare Trust Company, N.A., as rights agent (the “Rights Agent”), and the Board of the Company declared a dividend distribution of one right (a “Right”) for each outstanding share of our common stock to stockholders of record at the close of business on September 9, 2021 (the “Record Date”). Each Right is governed by the terms of the Plan and entitles the registered holder to purchase from the Company a unit consisting of one one-thousandth of a share (a “Unit”) of Series B Preferred Stock, par value $0.001 per share (the “Series B Preferred Stock”), at a purchase price of $20.00 per Unit, subject to adjustment (the “Purchase Price”). The Plan is intended to help protect the Company’s ability to use its tax net operating losses and certain other tax assets (“Tax Benefits”) by deterring an “ownership change” as defined under Section 382 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder (the “Code”) .

Initially, the Rights will be attached to all common stock certificates representing shares of our common stock then outstanding, and no separate rights certificates (“Rights Certificates”) will be distributed. Subject to certain exceptions specified in the Plan, the Rights will separate from our shares of common stock then outstanding and a distribution date (the “Distribution Date”) will occur upon the earlier of (i) 10 business days following a public announcement that a person or group of affiliated or associated persons (an “Acquiring Person”) has become the beneficial owner of 4.9% or more of our common stock and (ii) 10 business days (or such later date as the Board shall determine) following the commencement of a tender offer or exchange offer that would result in a person or group becoming an Acquiring Person.

The Rights are not exercisable until the Distribution Date and will expire at the earliest of (i) 11:59 p.m. (New York City time) on August 30, 2022 or such later date and time as may be determined by the Board and approved by the stockholders of the Company by a vote of the majority of the votes cast by the holders of shares entitled to vote thereon at a meeting of the stockholders of the Company prior to 11:59 p.m. (New York City time) on August 30, 2022 (which later date and time shall be in no event later than 11:59 p.m. (New York City time) on August 30, 2024), (ii) the time at which the Rights are redeemed or exchanged as provided in the Plan, (iii) the time at which the Board determines that the Plan is no longer necessary or desirable for the preservation of Tax Benefits, and (iv) the close of business on the first day of a taxable year of the Company to which the Board determines that no Tax Benefits may be carried forward.

Unless terminated early, the Tax Benefits Preservation Plan will terminate on August 30, 2022, unless at the Company’s 2022 annual meeting the Company’s stockholders approve an extension of the Tax Benefits Preservation Plan, in which case the Tax Benefits Preservation Plan would be extended and expire at the Company’s 2024 annual meeting.

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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Operating Segment and Related Information

Related Parties	12 Months Ended
Related Parties	Dec. 31, 2021
Related Party Transactions [Abstract]
Related Parties	16. Related Parties Non-Operating Corporate Pansend Life Sciences, LLC ("Pansend") has an investment in Triple Ring Technologies, Inc. ("Triple Ring"). A subsidiary of INNOVATE utilized the services of Triple Ring, incurring zero and $1.0 million in services for the years ended December 31, 2021 and 2020, respectively. In September 2018, the Company entered into a 75-month lease for office space. As part of the agreement, INNOVATE was able to pay a lower security deposit and lease payments, and received favorable lease terms as consideration for landlord required cross default language in the event of default of the shared space leased by Harbinger Capital Partners, formerly a related party, in the same building. With the adoption of ASC 842, as of January 1, 2019, this lease was recognized as a right of use asset and lease liability on the Consolidated Balance Sheets. During the year ended December 31, 2021, and subsequent to the sale of CGIC on July 1, 2021, to Continental General Holdings LLC, an entity controlled by Michael Gorzynski, a director of the Company and, as of December 31, 2021, a beneficial owner of approximately 6.6% of the Company's outstanding common stock who has also served as executive chairman of Continental since October 2020, INNOVATE's Board of Directors declared cash dividends of $0.6 million to CGIC with respect to INNOVATE’s issued and outstanding Preferred Stock, and DBMGi's Board of Directors declared cash dividends of $1.7 million to CGIC with respect to DBMGi’s issued and outstanding Preferred Stock. Infrastructure Banker Steel, a subsidiary of DBMG, has leased two office spaces from 2940 Fulks St LLC, a related party that is owned by Donald Banker, CEO of Banker Steel and a related party, with monthly lease payments of $10 thousand and a total lease liability of $0.2 million. For the year ended December 31, 2021, and 2020, DBMG incurred lease expense of $55 thousand and zero, respectively. Banker Steel has leased two planes from Banker Aviation LLC, a related party that is owned by Donald Banker, a related party, with monthly lease payments of $0.2 million and a total lease liability of $3.6 million. For the year ended December 31, 2021, and 2020, DBMG incurred lease expense of $1.0 million and zero, respectively. Banker Steel also has a subordinated note payable of $6.3 million to Donald Banker, a related party, that has a maturity date of June 30, 2024 at a 11% interest rate. For the year ended December 31, 2021, and 2020, DBMG incurred interest expense of $0.4 million and zero, respectively. Refer to Footnote 9. Debt Obligations to our Consolidated Financial Statements for additional information. Life Sciences During 2021, R2 Technologies paid $0.4 million of a milestone payment to Blossom Innovations, LLC, a related party.

Operating Segment and Related Information

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

17. Operating Segment and Related Information

The Company currently has one primary reportable geographic segment - United States. The Company has three reportable operating segments, plus our Other segment, based on management’s organization of the enterprise - Infrastructure, Life Sciences, Spectrum, and Other. We also have included a Non-operating Corporate segment. All inter-segment revenues are eliminated. The Company's revenue concentration of 10% and greater are as follows:

Years Ended December 31,

Segment

2021

2020

Customer A

Infrastructure

13.9%

*Less than 10% revenue concentration

As a result of the sale of GMSL, ICS, and Beyond6, and in accordance with ASC 280, the Company no longer considers the results of operations and balance sheets of these entities and related subsidiaries as separate segments. Formerly part of the Marine Services, Telecommunications, and Clean Energy segments, these entities and the investment in HMN have been reclassified to the Other segment. In addition, as GMSL, ICS, Beyond6, and CIG are discontinued operations, all operating results of these entities have been reclassified to discontinued operations. This has been reflected in the tables below for both the current and historical periods presented.

Summary information with respect to the Company’s operating segments is as follows (in millions):


	Years Ended December 31,
		2021		2020
Revenue
Infrastructure		$	1,159.7	$	676.6
Life Sciences		3.5		—
Spectrum		42.0		40.3




Total revenue		$	1,205.2	$	716.9


	Years Ended December 31,
		2021		2020
Income (loss) from operations
Infrastructure		$	35.2	$	20.5
Life Sciences		(19.9)		(16.9)
Spectrum		(0.8)		(2.2)

Other		(2.0)		(2.7)
Non-operating Corporate		(23.1)		(27.0)

Total loss from operations		$	(10.6)	$	(28.3)

A reconciliation of the Company's consolidated segment operating income to consolidated earnings before income taxes is as follows (in millions):


	Years Ended December 31,
		2021		2020
Loss from operations		$	(10.6)	$	(28.3)
Interest expense		(59.1)		(74.8)

Loss on early extinguishment or restructuring of debt		(12.5)		(9.4)


Loss from equity investees		(2.8)		(3.4)

Other income		4.3		69.2
Loss from continuing operations before income taxes		(80.7)		(46.7)
Income tax expense		(5.6)		(7.0)
Loss from continuing operations		(86.3)		(53.7)
Loss from discontinued operations (including loss on sale of $159.9 million and $44.1 million for the years ended December 31, 2021 and 2020, respectively)		(149.9)		(48.4)
Net loss		(236.2)		(102.1)
Net loss attributable to noncontrolling interest and redeemable noncontrolling interest		8.7		10.1
Net loss attributable to INNOVATE Corp.		(227.5)		(92.0)
Less: Preferred dividends and deemed dividends from conversions		2.2		3.6
Net loss attributable to common stock and participating preferred stockholders		$	(229.7)	$	(95.6)


	Years Ended December 31,
		2021		2020
Depreciation and Amortization
Infrastructure		$	19.1	$	10.7
Infrastructure recognized within cost of revenue		12.2		9.1
Total Infrastructure		31.3		19.8
Life Sciences		0.2		0.1
Spectrum		6.0		6.8


Non-operating Corporate		0.1		0.1


Total depreciation and amortization		$	37.6	$	26.8


	Years Ended December 31,
		2021		2020
Capital Expenditures (*)
Infrastructure		$	18.3	$	5.7
Life Sciences		0.5		0.1
Spectrum		5.3		11.8


Non-operating Corporate		—		0.2
Total		$	24.1	$	17.8

(*) The above capital expenditures exclude assets acquired under terms of capital lease and vendor financing obligations.


	December 31, 2021		December 31, 2020

Investments
Infrastructure	$	0.7	$	0.9
Life Sciences	10.2		18.4


Other	45.1		36.1


Total	$	56.0	$	55.4


	December 31, 2021		December 31, 2020

Equity Method Investees
Infrastructure	$	0.7	$	0.9
Life Sciences	9.6		17.9

Other	33.9		24.8
Total	$	44.2	$	43.6


	December 31, 2021		December 31, 2020

Total Assets
Infrastructure	$	786.4	$	475.8
Life Sciences	22.0		21.4
Spectrum	198.9		213.6

Other	48.0		6,021.3
Non-operating Corporate	25.3		30.1
Eliminations	—		(38.4)
Total	$	1,080.6	$	6,723.8

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

Basic and Diluted Income (Loss) Per Common Share

Basic and Diluted Income (Loss) Per Common Share

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

18. Basic and Diluted Income (Loss) Per Common Share

Earnings per share ("EPS") is calculated using the two-class method, which allocates earnings among common stock and participating securities to calculate EPS when an entity's capital structure includes either two or more classes of common stock or common stock and participating securities. Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities. As such, shares of any unvested restricted stock of the Company are considered participating securities. The dilutive effect of options and their equivalents (including non-vested stock issued under stock-based compensation plans), is computed using the "if-converted method" as this measurement was determined to be more dilutive between the two available methods in each period.

The Company had no dilutive common share equivalents during the year ended December 31, 2021 and 2020 due to results from continuing operations being a loss, net of tax. The following table presents a reconciliation of net income (loss) used in basic and diluted EPS calculations (in millions, except per share amounts):


	Years Ended December 31,
		2021		2020
Loss from continuing operations		$	(86.3)	$	(53.7)
Income (loss) from continuing operations attributable to noncontrolling interest and redeemable noncontrolling interest		7.8		(5.9)
Loss from continuing operations attributable to the Company		(78.5)		(59.6)
Less: Preferred dividends, deemed dividends and repurchase gains		2.2		3.6


Loss from continuing operations attributable to INNOVATE common stockholders	(80.7)			(63.2)
Loss from discontinued operations	(149.9)			(48.4)
Income from discontinued operations attributable to noncontrolling interest and redeemable noncontrolling interest	0.9			16.0
Loss from discontinued operations, net of tax and noncontrolling interest	(149.0)			(32.4)
Net loss attributable to common stock and participating preferred stockholders	$	(229.7)		$	(95.6)

Earnings allocable to common shares:
Participating shares at end of period:
Weighted-average common stock outstanding	77.1			50.3
Unvested restricted stock	—			—
Preferred stock (as-converted basis)	—			0.4
Total	77.1			50.7

Percentage of loss allocated to:
Common stock	100.0		%	99.2		%
Unvested restricted stock	—		%	—		%
Preferred stock	—		%	0.8		%

Numerator for earnings per share, basic:
Net loss from continuing operations attributable to common stock, basic	$	(80.7)		$	(62.7)
Net loss from discontinued operations attributable to common stock, basic	$	(149.0)		$	(32.1)
Net loss attributable to common stock, basic	$	(229.7)		$	(94.8)

Earnings allocable to common shares, diluted:
Numerator for earnings per share, diluted
Effect of assumed shares under the if-converted method for convertible instruments	$	—		$	—

Net loss from continuing operations attributable to common stock, basic	$	(80.7)		$	(62.7)
Net loss from discontinued operations attributable to common stock, basic	$	(149.0)		$	(32.1)
Net loss attributable to common stock, basic	$	(229.7)		$	(94.8)

Denominator for basic and dilutive earnings per share
Weighted average common shares outstanding - basic	77.1			50.3
Effect of assumed shares under treasury stock method for stock options and restricted shares and if-converted method for convertible instruments	—			—
Weighted average common shares outstanding - diluted	77.1			50.3

Loss per share - continuing operations
Basic	$	(1.05)		$	(1.25)
Diluted	$	(1.05)		$	(1.25)

Loss per share - discontinued operations
Basic	$	(1.93)		$	(0.63)
Diluted	$	(1.93)		$	(0.63)

Loss per share - Net loss attributable to common stock and participating preferred stockholders
Basic	$	(2.98)		$	(1.88)
Diluted	$	(2.98)		$	(1.88)

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2021
Subsequent Events [Abstract]
Subsequent Events	19. Subsequent Events None.

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Dec. 31, 2021
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company, its wholly owned subsidiaries and all other subsidiaries over which the Company exerts control. All intercompany profits, transactions and balances have been eliminated in consolidation. For the years ended December 31, 2021 and December 31, 2020, the results of DBMG, Genovel, R2, Broadcasting, CIG, GMH and Beyond6 have been consolidated into the Company’s results based on guidance from the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC" 810, Consolidation). The remaining interests not owned by the Company are presented as a noncontrolling interest component of total equity.
Basis of Presentation	Basis of Presentation The accompanying Consolidated Financial Statements of the Company included herein have been prepared in U.S. dollars in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain prior amounts have been reclassified or combined to conform to the current year presentation.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents are comprised principally of amounts in money market accounts with original maturities of three months or less.
Acquisitions	AcquisitionsThe Company’s acquisitions are accounted for using the acquisition method of accounting, which requires, among other things, that assets acquired and liabilities assumed be recognized at their estimated fair values as of the acquisition date. Estimates of fair value included in the Consolidated Financial Statements, in conformity with ASC 820, Fair Value Measurements and Disclosures, represent the Company’s best estimates and valuations developed, when needed, with the assistance of independent appraisers or, where such valuations have not yet been completed or are not available, industry data and trends and by reference to relevant market rates and transactions. Such estimates and assumptions are inherently subject to significant uncertainties and contingencies beyond the control of the Company. Accordingly, the Company cannot provide assurance that the estimates, assumptions, and values reflected in the valuations will be realized, and actual results could vary materially.
Equity Method Investments	Equity Method InvestmentsThe Company utilizes the equity method to account for investments when it possesses the ability to exercise significant influence, but not control, over the operating and financial policies of the investee. The ability to exercise significant influence is presumed when an investor possesses more than 20% of the voting interests of the investee, such as with our investments in MediBeacon and Triple Ring, of which we own an approximately 47% interest in MediBeacon and an approximately 26% interest in Triple Ring. This presumption may be overcome based on specific facts and circumstances that demonstrate that the ability to exercise significant influence is restricted, such as with our 19% equity method investment in HMN, as we continue to maintain a seat on the entity's board of directors and can exert significant influence. The Company applies the equity method to investments in common stock and to other investments when such other investments possess substantially identical subordinated interests to common stock. In applying the equity method, the Company records the investment at cost and subsequently increases or decreases the carrying amount of the investment by its proportionate share of the net earnings or losses in (Loss) income from equity investees and other comprehensive income of the investee. The Company records dividends or other equity distributions as reductions in the carrying value of the investment. In the event that net losses of the investee reduce the carrying amount to zero, additional net losses may be recorded if other investments in the investee are at-risk, even if the Company has not committed to provide financial support to the investee. Such additional equity method losses, if any, are based upon the change in the Company's claim on the investee’s book value.
Fair Value Measurements	Fair Value Measurements General accounting principles for Fair Value Measurements and Disclosures define fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. These principles also establish a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value and describes three levels of inputs that may be used to measure fair value: Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities. Active markets are defined as having the following characteristics for the measured asset/liability: (i) many transactions, (ii) current prices, (iii) price quotes not varying substantially among market makers, (iv) narrow bid/ask spreads and (v) most information publicly available. The Company’s Level 1 financial instruments consist primarily of publicly traded equity securities and highly liquid government bonds for which quoted market prices in active markets are available. Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or market standard valuation techniques and assumptions with significant inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Such observable inputs include benchmarking prices for similar assets in active, liquid markets, quoted prices in markets that are not active and observable yields and spreads in the market. The Company’s Level 2 financial instruments include corporate and municipal fixed maturity securities, mortgage-backed non-affiliated common stocks priced using observable inputs. Level 2 inputs include benchmark yields, reported trades, corroborated broker/dealer quotes, issuer spreads and benchmark securities. When non-binding broker quotes can be corroborated by comparison to similar securities priced using observable inputs, they are classified as Level 2. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the related assets or liabilities. Level 3 assets and liabilities include those whose value is determined using market standard valuation techniques. When observable inputs are not available, the market standard techniques for determining the estimated fair value of certain securities that trade infrequently, and therefore have little transparency, rely on inputs that are significant to the estimated fair value and that are not observable in the market or cannot be derived principally from or corroborated by observable market data. These unobservable inputs can be based in large part on management judgment or estimation and cannot be supported by reference to market activity. Even though unobservable, management believes these inputs are based on assumptions deemed appropriate given the circumstances and consistent with what other market participants would use when pricing similar assets and liabilities. For the Company’s invested assets, most of which relate to the 2020 held-for-sale assets of the Insurance segment, this category primarily includes private placements, asset-backed securities, and to a lesser extent, certain residential and commercial mortgage-backed securities, among others. Prices are determined using valuation methodologies such as discounted cash flow models and other similar techniques. Non-binding broker quotes, which are utilized when pricing service information is not available, are reviewed for reasonableness based on the Company’s understanding of the market, and are generally considered Level 3. Under certain circumstances, based on its observations of transactions in active markets, the Company may conclude the prices received from independent third-party pricing services or brokers are not reasonable or reflective of market activity. In those instances, the Company would apply internally developed valuation techniques to the related assets or liabilities. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for any given financial instrument is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument. The Company may utilize information from third parties, such as pricing services and brokers, to assist in determining the fair value for certain assets and liabilities; however, management is ultimately responsible for all fair values presented in the Company’s financial statements. This includes responsibility for monitoring the fair value process, ensuring objective and reliable valuation practices and pricing of assets and liabilities, and approving changes to valuation methodologies and pricing sources. The selection of the valuation technique(s) to apply considers the definition of an exit price and the nature of the asset or liability being valued and significant expertise and judgment is required
Accounts Receivable	Accounts Receivable Accounts receivable are stated at amounts due from customers net of an allowance for doubtful accounts. Our allowance for doubtful accounts considers historical experience, the age of certain receivable balances, credit history, current economic conditions and other factors that may affect the counterparty’s ability to pay. The policy for determining past due status is based on the contractual payment terms of each customer. Once collection efforts by the Company are exhausted, the determination for charging off uncollectible receivables is made.
Inventory	InventoryInventory is valued at the lower of cost or net realizable value under the first-in, first-out method. Provision for obsolescence is made where appropriate and is charged to cost of revenue in the consolidated statements of operations. Short-term work in progress on contracts is stated at cost less foreseeable losses. These costs include only direct labor and expenses incurred to date and exclude any allocation of overhead. The policy for long-term work in progress contracts is disclosed within the Revenue and Cost Recognition accounting policy.
Accounting for Income Taxes	Accounting for Income Taxes We recognize deferred tax assets and liabilities for the expected future tax consequences of transactions and events. Under this method, deferred tax assets and liabilities are determined based on the difference between the book basis and the tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. If necessary, deferred tax assets are reduced by a valuation allowance to an amount that is determined to be more likely than not recoverable. We must make significant estimates and assumptions about future taxable income and future tax consequences when determining the amount of the valuation allowance. The additional guidance provided by ASC No. 740, “Income Taxes” (“ASC 740”), clarifies the accounting for uncertainty in income taxes recognized in the financial statements. Expected outcomes of current or anticipated tax examinations, refund claims and tax-related litigation and estimates regarding additional tax liability (including interest and penalties thereon) or refunds resulting therefrom will be recorded based on the guidance provided by ASC 740 to the extent applicable. We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. These assessments of uncertain tax positions contain judgments related to the interpretation of tax regulations in the jurisdictions in which we transact business. The judgments and estimates made at a point in time may change based on the outcome of tax audits, expiration of statutes of limitations, as well as changes to, or further interpretations of, tax laws and regulations. At December 31, 2021, our U.S. and foreign companies have significant deferred tax assets resulting from tax loss carryforwards. Additionally, the deferred tax assets generated by certain businesses that do not qualify to be included in the INNOVATE Corp. U.S. consolidated income tax return have been reduced by a full valuation allowance. Based on consideration of both positive and negative evidence, we determined that it was more likely than not that the net deferred tax assets of the INNOVATE Corp. U.S. consolidated filing group will not be realized. Therefore, a valuation allowance was maintained against the INNOVATE Corp. U.S. consolidated filing group’s net deferred tax assets as of December 31, 2021. The appropriateness and amount of the valuation allowance are based on cumulative history of losses and our assumptions about the future taxable income of each affiliate and the timing of the reversal of deferred tax assets and liabilities. In relation to tax effects for accumulated OCI, our policy is to release the tax effects of amounts reclassified from accumulated OCI to pre-tax income (loss) from continuing operations. Any remaining tax effect in accumulated OCI is released following a portfolio approach.
Property, Plant and Equipment	Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation, which is provided on the straight-line method over the estimated useful lives of the assets. Cost includes major expenditures for improvements and replacements which extend useful lives or increase capacity of the assets as well as expenditures necessary to place assets into readiness for use. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its intended use. Cost includes finance costs incurred prior to the asset being available for use. Expenditures for maintenance and repairs are expensed as incurred. Costs for internal use software that are incurred in the preliminary project stage and in the post-implementation stage are expensed as incurred. Costs incurred during the application development stage are capitalized and amortized over the estimated useful life of the software, beginning when the software project is ready for its intended use, over the estimated useful life of the software. Depreciation is determined on a straight-line basis over the estimated useful lives of the assets, which range from 5 to 40 years for buildings and leasehold improvements, 3 to 15 years for equipment, furniture and fixtures, and 3 to 20 years for transportation equipment. Leasehold improvements are amortized over the lives of the leases or estimated useful lives of the assets, whichever is shorter. Assets under construction are not depreciated until they are complete and available for use. When assets are sold or otherwise retired, the costs and accumulated depreciation are removed from the books and the resulting gain or loss is included in operating results. Property, plant and equipment that have been included as part of the assets held for sale are no longer depreciated from the time that they are classified as such. The Company periodically evaluates the carrying value of its property, plant and equipment based upon the estimated cash flows to be generated by the related assets. If impairment is indicated, a loss is recognized.
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets Under ASC 350, Intangibles - Goodwill and Other ("ASC 350"), goodwill and indefinite lived intangible assets are not amortized but are reviewed annually for impairment, or more frequently, if impairment indicators arise. Intangible assets that have finite lives are amortized over their estimated useful lives and are subject to the provisions of ASC 360, Property, plant, and equipment ("ASC 360"). Goodwill impairment is tested at least annually (October 1st) or when factors indicate potential impairment using a two-step process that begins with a qualitative evaluation of each reporting unit. If such test indicates potential for impairment, a one-step quantitative test is performed and, if there is excess of a reporting unit's carrying amount over its fair value, impairment is recorded, not to exceed the total amount of goodwill allocated to the reporting unit. Estimating the fair value of a reporting unit requires various assumptions including projections of future cash flows, perpetual growth rates and discount rates. The assumptions about future cash flows and growth rates are based on the Company’s assessment of a number of factors, including the reporting unit’s recent performance against budget, performance in the market that the reporting unit serves, and industry and general economic data from third-party sources. Discount rate assumptions are based on an assessment of the risk inherent in those future cash flows. Changes to the underlying businesses could affect the future cash flows, which in turn could affect the fair value of the reporting unit. Intangible assets not subject to amortization consist of certain licenses. Such indefinite lived intangible assets are tested for impairment annually, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The impairment test shall consist of a comparison of the fair value of an intangible asset with its carrying amount. If the carrying amount of the intangible asset exceeds its fair value, an impairment loss shall be recognized in an amount equal to the excess. Intangible assets subject to amortization consists of certain trade names, customer contracts and developed technology. These finite lived intangible assets are amortized based on their estimated useful lives. Such assets are subject to the impairment provisions of ASC 360, wherein impairment is recognized and measured only if there are events and circumstances that indicate that the carrying amount may not be recoverable. The carrying amount is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use of the asset group. An impairment loss is recorded if after determining that it is not recoverable, the carrying amount exceeds the fair value of the asset. In addition to the foregoing, the Company reviews its goodwill and intangible assets for possible impairment whenever events or circumstances indicate that the carrying amounts of assets may not be recoverable. The factors that the Company considers important, and which could trigger an impairment review, include, but are not limited to: a more likely than not expectation of selling or disposing all, or a portion, of a reporting unit; a significant decline in the market value of our common stock or debt securities for a sustained period; a material adverse change in economic, financial market, industry or sector trends; a material failure to achieve operating results relative to historical levels or projected future levels; and significant changes in operations or business strategy. For details regarding goodwill impairment, see Note 8. Goodwill and Intangibles, net. Licensing: Television broadcast licenses generally are granted for eight-year periods. They are renewable after application and reviewed by the FCC and historically are renewed except in rare cases in which a petition to deny, a complaint or an adverse finding as to the licensee's qualifications results in loss of the license.
Valuation of Long-lived Assets	Valuation of Long-lived Assets The Company reviews long-lived assets for impairment whenever events or changes indicate that the carrying amount of an asset may not be recoverable. In making such evaluations, the Company compares the expected undiscounted future cash flows to the carrying amount of the assets. If the total of the expected undiscounted future cash flows is less than the carrying amount of the assets, the Company is required to make estimates of the fair value of the long-lived assets in order to calculate the impairment loss equal to the difference between the fair value and carrying value of the assets. The Company makes significant assumptions and estimates in this process regarding matters that are inherently uncertain, such as determining asset groups and estimating future cash flows, remaining useful lives, discount rates and growth rates. The resulting undiscounted cash flows are projected over an extended period of time, which subjects those assumptions and estimates to an even larger degree of uncertainty. While the Company believes that its estimates are reasonable, different assumptions could materially affect the valuation of the long-lived assets. The Company derives future cash flow estimates from its historical experience and its internal business plans, which include consideration of industry trends, competitive actions, technology changes, regulatory actions, available financial resources for marketing and capital expenditures and changes in its underlying cost structure. The Company makes assumptions about the remaining useful life of its long-lived assets. The assumptions are based on the average life of its historical capital asset additions and its historical asset purchase trend. In some cases, due to the nature of a particular industry in which the company operates, the Company may assume that technology changes in such industry render all associated assets, including equipment, obsolete with no salvage value after their useful lives. In certain circumstances in which the underlying assets could be leased for an additional period of time or salvaged, the Company includes such estimated cash flows in its estimate. The estimate of the appropriate discount rate to be used to apply the present value technique in determining fair value was the Company’s weighted average cost of capital which is based on the effective rate of its debt obligations at the current market values (for periods during which the Company had debt obligations) as well as the current volatility and trading value of the Company’s common stock.
Leases	Leases The Company accounts for leases in accordance with ASC 842, Leases, which requires the balance sheet recognition of lease assets and lease liabilities by lessees for those leases classified as operating and finance leases. The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease assets, current operating lease liabilities and long-term operating lease liabilities in the Consolidated Balance Sheets and are recognized based on the present value of lease payments over the lease term at the commencement date. Finance leases are included in finance lease assets, current finance lease liabilities and long-term finance lease liabilities in the Consolidated Balance Sheets and are recognized based on the present value of lease payments over the lease term at commencement date. The majority of the Company’s leases do not provide an implicit rate of return; therefore, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. For lease agreements that contain non-lease components, the Company elected to combine lease and non-lease components as a single lease component. The Company has operating leases for land, office space, and certain Company vehicles and equipment and finance leases for certain Company vehicles and equipment. The leases are expiring between 2022 and 2045. Leases with an initial term of 12 months or less are not recorded on the balance sheets. Lease expense is recognized on a straight-line basis over the lease term. For purposes of calculating operating lease liabilities, lease terms may be deemed to include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. As of December 31, 2021, the operating lease liability does not include any options to extend or terminate leases.
Presentation of Taxes Collected	Presentation of Taxes Collected The Company reports a value-added tax assessed by a governmental authority that is directly imposed on a revenue-producing transaction between the Company and a customer on a net basis (excluded from revenues).
Foreign Currency Transactions and Translation	Foreign Currency Transactions Foreign currency transactions are transactions denominated in a currency other than a subsidiary’s functional currency. A change in the exchange rates between a subsidiary’s functional currency and the currency in which a transaction is denominated increases or decreases the expected amount of functional currency cash flows upon settlement of the transaction. That increase or decrease in expected functional currency cash flows is reported by the Company as a foreign currency transaction gain (loss). The primary component of the Company’s foreign currency transaction gain (loss) is due to agreements in place with certain subsidiaries in foreign countries regarding intercompany transactions. The Company anticipates repayment of these transactions in the foreseeable future, and recognizes the realized and unrealized gains or losses on these transactions that result from foreign currency changes in the period in which they occur as foreign currency transaction gain (loss). Foreign Currency Translation The assets and liabilities of the Company’s foreign subsidiaries are translated at the exchange rates in effect on the reporting date. Income and expenses are translated at the average exchange rate during the period. The net effect of such translation gains and losses are reflected within AOCI in the stockholders’ equity section of the consolidated balance sheets. If there is a planned or completed sale or liquidation of the Company's ownership in a foreign operation, the relevant foreign currency translation adjustment is recognized in the consolidated statement of operations.
Convertible Instruments	Convertible Instruments The Company evaluates and accounts for conversion options embedded in convertible instruments in accordance with ASC 815, Derivatives and Hedging Activities. Applicable U.S. Generally Accepted Accounting Principals ("GAAP") requires companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not remeasured at fair value under other GAAP with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. The Company accounts for convertible instruments, when it has been determined that the embedded conversion options should not be bifurcated from their host instruments, as follows: The Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their stated date of redemption. The Company accounts for the conversion of convertible debt when a conversion option has been bifurcated using the general extinguishment standards. The debt and equity linked derivatives are removed at their carrying amounts and the shares issued are measured at their then-current fair value, with any difference recorded as a gain or loss on extinguishment of the two separate accounting liabilities.
Deferred Financing Costs	Deferred Financing Costs The Company capitalizes certain expenses incurred in connection with its debt and line of credit obligations and amortizes them over the term of the respective debt agreement. The amortization expense of the deferred financing costs is included in interest expense on the consolidated statements of operations. If the Company extinguishes portions of its debt prior to the maturity date, deferred financing costs are charged to expense on a pro-rata basis and are included in loss on early extinguishment or restructuring of debt on the consolidated statements of operations.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of net revenue and expenses during the reporting period. Actual results may differ from these estimates. Significant estimates include allowance for doubtful accounts receivable, the extent of progress towards completion on contracts, contract revenue and costs on long-term contracts, valuation of certain investments and the insurance reserves, market assumptions used in estimating the fair values of certain assets and liabilities, the calculation used in determining the fair value of INNOVATE’s stock options required by ASC 718, Compensation - Stock Compensation ("ASC 718"), income taxes and various other contingencies. Estimates of fair value represent the Company’s best estimates developed with the assistance of independent appraisals or various valuation techniques and, where the foregoing have not yet been completed or are not available, industry data and trends and by reference to relevant market rates and transactions. The estimates and assumptions are inherently subject to significant uncertainties and contingencies beyond the control of the Company. Accordingly, the Company cannot provide assurance that the estimates, assumptions, and values reflected in the valuations will be realized, and actual results could vary materially.
Share-Based Compensation	Share-Based Compensation The Company accounts for share-based compensation issued to employees and non-employees in accordance with the provisions of ASC 718. All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for using a fair-value based method. The Company records share-based compensation expense for all new and unvested stock options that are ultimately expected to vest as the requisite service is rendered. The Company issues new shares of common stock upon the exercise of stock options. The Company uses a Black-Scholes option valuation model to determine the grant date fair value of share-based compensation under ASC 718. The Black-Scholes model incorporates various assumptions including the expected term of awards, volatility of stock price, risk-free rates of return and dividend yield. The expected term of an award is no less than the option vesting period and is based on the Company’s historical experience. Expected volatility is based upon the historical volatility of the Company’s stock price. The risk-free interest rate is approximated using rates available on U.S. Treasury securities with a remaining term similar to the option’s expected life. The Company uses a dividend yield of zero in the Black-Scholes option valuation model as it does not anticipate paying cash dividends in the foreseeable future. Share-based compensation is recorded net of actual forfeitures.
Concentration of Credit Risk	Concentrations of Credit Risk and of Significant Suppliers Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, and accounts receivable. The Company maintains all cash and cash equivalents at accredited financial institutions, in amounts that exceed federally insured limits. The Company has not experienced any losses in such accounts. The Company holds $4.7 million and $8.5 million cash in foreign accounts as of December 31, 2021 and 2020, respectively. The Company attempts to minimize the risks related to cash and cash equivalents by investing in a range of financial instruments as defined by the Company. Concentrations of credit risk with respect to accounts receivable are limited by the large number of customers comprising the Company's customer base and their geographic and business dispersion. The Company performs ongoing credit evaluations of the customers' financial condition and generally does not require collateral to support customer receivables. For the year ended December 31, 2021, one customer exceeded 10% of the Company's revenue and accounted for approximately 13.9%. No customers accounted for more than 10% of accounts receivable. For the fiscal year ended December 31, 2020, no customer accounted for more than 10% of the Company's revenue and no customers accounted for more than 10% of accounts receivable. For the year ended December 31, 2021, one supplier accounted for more than 10% of the Company's accounts payable for approximately 15.1%. For the fiscal year ended December 31, 2020, no suppliers accounted for more than 10% of the Company's accounts payable.
Income (Loss) Per Common Share	Income (Loss) Per Common Share Basic income (loss) per common share is computed using the weighted average number of shares of common stock outstanding during the period. Diluted income (loss) per common share is computed using the weighted average number of shares of common stock, adjusted for the dilutive effect of potential common stock and related income from continuing operations, net of tax. Potential common stock, computed using the treasury stock method or the if-converted method, includes options, warrants, restricted stock, restricted stock units and convertible preferred stock. In periods when the Company generates income, the Company calculates basic Earnings Per Share ("EPS") using the two-class method, pursuant to ASC No. 260, Earnings Per Share. The two-class method is required as the shares of the Company’s preferred stock qualify as participating securities, having the right to receive dividends should dividends be declared on common stock. Under this method, earnings for the period are allocated to the common stock and preferred stock to the extent that each security may share in earnings as if all of the earnings for the period had been distributed. The Company does not use the two-class method in periods when it generates a loss as the holders of the preferred stock do not participate in losses.
Discontinued Operations	Discontinued OperationsIn accordance with ASC 205-20, Presentation of Financial Statements - Discontinued Operations, the Company reports the results of operations of a business as discontinued operations if a disposal represents a strategic shift that has or will have a major effect on the Company's operations and financial results when the business is disposed of or classified as held-for-sale. Under ASC 360, Property, Plant and Equipment, assets may be classified as held-for-sale even though the discontinued operations criteria is not met. The results of discontinued operations are reported in Loss from discontinued operations in the Consolidated Statement of Operations.
Reclassification	Reclassification Certain previous year amounts have been reclassified to conform with current year presentations, as related to the reporting of new balance sheet line items: •The recast of Beyond6, ICS, and CIG's results to discontinued operations. Further, the reclassification of prior period assets and liabilities have been classified as held for sale. See Note 3. Discontinued Operations for further information; •As a result of the sale of ICS, and in accordance with ASC 280, the Company no longer considers the results of operations and balance sheets of the retained ICS entities as a separate segment. Formerly the Telecommunications segment, these entities have been reclassified to the Other segment. See Note 17. Operating Segment and Related Information for further information; •As a result of the sale of Beyond6, and in accordance with ASC 280, the Company no longer considers the results of operations and balance sheets of Beyond6 as a separate segment. Formerly the Clean Energy segment, this entity has been reclassified to the Other segment. See Note 17. Operating Segment and Related Information for further information; •As a result of the sale of CIG, and in accordance with ASC 280, the Company no longer considers the results of operations and Balance Sheets of CIG as a separate segment. This entity has been reclassified to the Other segment. See Note 17. Operating Segment and Related Information for further information; and •The recast of prior year earnings per share as a result of the discontinued operations noted above. This includes presenting EPS for Net income (loss) from continuing operations, Net income (loss) from discontinuing operations, and Net income (loss). See Note 18. Basic and Diluted Income (Loss) Per Common Share for further details.
Accounting Pronouncements	Accounting Pronouncements Adopted in the Current Year Accounting for Investments-Equity Securities ASU 2020-01, Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815), was issued by the FASB in January 2020. This update clarifies the interaction between the accounting for investments in equity securities, investment in equity method and certain derivatives instruments. The Company adopted this update as of January 1, 2021 and the update did not have a material impact on the Company's consolidated financial statements. Accounting for Debt with Conversion Options 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, was issued by the FASB in August 2020. This ASU (1) simplifies the accounting for convertible debt instruments and convertible preferred stock by removing the existing guidance in ASC 470-20, Debt: Debt with Conversion and Other Options, that requires entities to account for beneficial conversion features and cash conversion features in equity, separately from the host convertible debt or preferred stock; (2) revises the scope exception from derivative accounting in ASC 815-40 for freestanding financial instruments and embedded features that are both indexed to the issuer’s own stock and classified in stockholders’ equity, by removing certain criteria required for equity classification; and (3) revises the guidance in ASC 260, Earnings Per Share, to require entities to calculate diluted earnings per share (EPS) for convertible instruments by using the if-converted method. In addition, entities must presume share settlement for purposes of calculating diluted EPS when an instrument may be settled in cash or shares. The standard is effective on January 1, 2024, but the Company elected early adoption as of January 1, 2021. A modified retrospective method of transition was applied, which resulted in no impact to the Company. Accounting for Contract Assets and Contract Liabilities from Contracts with Customers ASU 2021-08, Accounting for Contract Assets and Liabilities from Contracts with Customers (Topic 805) was issued by the FASB in October 2021. This update requires that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606, Revenue Recognition (Topic 606). At the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts by assessing how the acquiree applied Topic 606 to determine what to record for the acquired revenue contracts. Generally, this should result in an acquirer recognizing and measuring the acquired contract assets and contract liabilities consistent with how they were recognized and measured in the acquiree's financial statements. The Company adopted this update as of January 1, 2021, and applied the guidance to the Company's acquisition of Banker Steel. Accounting Pronouncements to be Adopted Subsequent to December 31, 2021 Credit Loss Standard ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments, was issued by FASB in June 2016. This standard is effective January 1, 2020 (with early adoption permitted). This new standard changes the impairment model for most financial assets that are measured at amortized cost and certain other instruments, including trade receivables, from an incurred loss model to an expected loss model and adds certain new required disclosures. Under the expected loss model, entities will recognize estimated credit losses over the entire contractual term of the instrument rather than delaying recognition of credit losses until it is probable the loss has been incurred. The FASB has voted to delay the effective date of ASU 2016-13 to January 1, 2023 for smaller reporting companies with a revised ASU in the fourth quarter of 2019. The Company will not be required to adopt Topic 326 until January 1, 2023. Currently, the Company continues to evaluate the potential impact of the new standard on its financial results. Subsequent Events ASC 855, Subsequent Events requires the Company to evaluate events that occur after the balance sheet date as of which the financial statements are issued, and to determine whether adjustments to or additional disclosures in the financial statements are necessary.

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Schedule of Other Nonoperating Income (Expense)

The following table provides information relating to Other income (in millions):


	Years Ended December 31,
	2021		2020
Loss on embedded derivatives	$	(0.7)	$	(2.8)
Gain on sale of equity method investments	—		71.2
Other income, net	5.0		0.8
Total	$	4.3	$	69.2

Schedule of Restricted Cash and Cash Equivalents


	December 31,
	2021		2020
Cash and cash equivalents, beginning of period	$	43.8	$	23.3
Restricted cash included in other assets	1.5		1.4
Total cash and cash equivalents and restricted cash	$	45.3	$	24.7

Cash and cash equivalents, end of period	$	45.5	$	43.8
Restricted cash included in other assets	2.0		1.5
Total cash and cash equivalents and restricted cash	$	47.5	$	45.3

Cash and cash equivalents classified in Assets held for sale, beginning of period	$	195.2	$	216.0
Restricted cash classified in Assets held for sale	0.2		0.2
Total cash and cash equivalents and restricted cash classified in Assets held for sale	$	195.4	$	216.2

Cash and cash equivalents classified in Assets held for sale, end of period	$	—	$	195.2
Restricted cash classified in Assets held for sale	—		0.2
Total cash and cash equivalents and restricted cash classified in Assets held for sale	$	—	$	195.4

Supplemental cash flow information:
Cash paid for interest	$	32.6	$	65.1
Cash paid for taxes, net of refunds	$	5.4	$	0.2

Non-cash investing and financing activities:
Property, plant and equipment included in accounts payable	$	1.4	$	4.4

Investments included in accounts payable	$	—	$	17.1
Issuance of preferred stock	$	19.1	$	—
Issuance of redeemable noncontrolling interest	$	40.9	$	—
Extinguishment of convertible note in exchange	$	51.8	$	—
Issuance of convertible note in exchange	$	(51.8)	$	—
Debt assumed in acquisitions	$	6.3	$	—

Schedule of Cash and Cash Equivalents


	December 31,
	2021		2020
Cash and cash equivalents, beginning of period	$	43.8	$	23.3
Restricted cash included in other assets	1.5		1.4
Total cash and cash equivalents and restricted cash	$	45.3	$	24.7

Cash and cash equivalents, end of period	$	45.5	$	43.8
Restricted cash included in other assets	2.0		1.5
Total cash and cash equivalents and restricted cash	$	47.5	$	45.3

Cash and cash equivalents classified in Assets held for sale, beginning of period	$	195.2	$	216.0
Restricted cash classified in Assets held for sale	0.2		0.2
Total cash and cash equivalents and restricted cash classified in Assets held for sale	$	195.4	$	216.2

Cash and cash equivalents classified in Assets held for sale, end of period	$	—	$	195.2
Restricted cash classified in Assets held for sale	—		0.2
Total cash and cash equivalents and restricted cash classified in Assets held for sale	$	—	$	195.4

Supplemental cash flow information:
Cash paid for interest	$	32.6	$	65.1
Cash paid for taxes, net of refunds	$	5.4	$	0.2

Non-cash investing and financing activities:
Property, plant and equipment included in accounts payable	$	1.4	$	4.4

Investments included in accounts payable	$	—	$	17.1
Issuance of preferred stock	$	19.1	$	—
Issuance of redeemable noncontrolling interest	$	40.9	$	—
Extinguishment of convertible note in exchange	$	51.8	$	—
Issuance of convertible note in exchange	$	(51.8)	$	—
Debt assumed in acquisitions	$	6.3	$	—

Discontinued Operations (Tables)

12 Months Ended

Dec. 31, 2021

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations


	Years Ended December 31,
		2021		2020
Revenue		$	1.7	$	519.6
Life, accident and health earned premiums, net		55.7		115.1
Net investment income		92.4		188.9
Realized/unrealized gains (losses) on investments		5.1		(15.0)
Total revenue		154.9		808.6
Cost of revenue		0.8		492.4
Policy benefits, changes in reserves, and commissions		126.0		250.0
Selling, general and administrative		21.1		62.0
Depreciation and amortization		(11.0)		(8.3)
Other operating expenses		—		0.3
Income from operations		18.0		12.2
Interest expense		(0.5)		(12.1)
Loss on sale and liquidation of subsidiaries		(159.9)		(44.1)
Income from equity investees		—		0.5
Other loss		(3.1)		(2.3)
Pre-tax loss from discontinued operations		(145.5)		(45.8)
Income tax expense		(4.4)		(2.6)
Loss from discontinued operations		$	(149.9)	$	(48.4)


	Years Ended December 31,
		2021		2020
Interest expense		$	0.1	$	0.9
Amortization of deferred financing costs and original issuance discount		$	—	$	0.1


	Years Ended December 31,
		2021		2020
Interest expense		$	0.3	$	3.2
Amortization of deferred financing costs and original issuance discount		$	—	$	0.4


	Years Ended December 31,
		2021		2020
Interest expense		$	—	$	0.2
Amortization of deferred financing costs and original issuance discount		$	—	$	0.1


	Years Ended December 31,
		2021		2020
Interest expense		$	—	$	2.2
Amortization of deferred financing costs and original issuance discount		$	—	$	0.2

Summarized assets and liabilities of the discontinued operations are as follows (in millions):


	December 31, 2021		December 31, 2020

Assets
Current assets
Cash and cash equivalents	$	—	$	195.2
Accounts receivable, net	—		13.6


Other current assets	1.5		8.7
Total current assets	1.5		217.5
Investments	—		4,610.2
Recoverable from reinsurers	—		957.5
Deferred tax asset	—		1.4
Property, plant and equipment, net	—		90.5
Goodwill	—		2.1
Intangibles, net	—		11.7
Other assets	—		51.2
Total assets held for sale	$	1.5	$	5,942.1

Liabilities
Current liabilities
Accounts payable	$	—	$	2.6
Accrued liabilities	—		35.8
Current portion of debt obligations	—		5.7


Other current liabilities	—		7.4
Total current liabilities	—		51.5
Life, accident and health reserves	—		4,627.5
Annuity reserves	—		228.8
Value of business acquired	—		199.8
Deferred tax liability	—		136.5
Debt obligations	—		50.6
Other liabilities	—		12.0
Total liabilities held for sale	$	—	$	5,306.7

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

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Revenue from Contract with Customer [Abstract]

Revenue (Tables)

12 Months Ended

Dec. 31, 2021

Reconciliation of Revenue from Segments to Consolidated

Revenue from contracts with customers consist of the following (in millions):


	Years Ended December 31,
		2021		2020
Revenue
Infrastructure		$	1,159.7	$	676.6
Spectrum		42.0		40.3
Life Sciences		3.5		—

Total revenue		$	1,205.2	$	716.9

Schedule of Accounts Receivable

Accounts receivables, net from contracts with customers consist of the following (in millions):


	December 31, 2021		December 31, 2020

Accounts receivables with customers
Infrastructure	$	226.8	$	118.5
Spectrum	9.4		7.3
Life Sciences	0.3		—
Total accounts receivables with customers	$	236.5	$	125.8

Accounts receivable, net consist of the following (in millions):


	December 31, 2021		December 31, 2020

Contracts in progress	$	226.8	$	118.6
Unbilled retentions	0.4		0.3
Trade receivables	9.9		7.5
Other receivables	10.6		8.9
Allowance for doubtful accounts	(0.6)		(0.6)
Total	$	247.1	$	134.7

Disaggregation of Revenue

The following table disaggregates DBMG's revenue by market (in millions):


	Years Ended December 31,
		2021		2020
Commercial		$	539.8	$	217.7
Industrial		292.5		214.9
Convention		85.8		10.6
Government		68.0		65.0
Healthcare		59.8		29.5
Transportation		52.7		72.6
Leisure		23.2		42.8
Other		37.7		22.8
Total revenue from contracts with customers		1,159.5		675.9
Other revenue		0.2		0.7
Total Infrastructure segment revenue		$	1,159.7	$	676.6

The following table disaggregates the Life Sciences segment's revenue by type (in millions):


	Years Ended December 31,
		2021		2020
Systems and consumables revenue		$	3.5	$	—






Total Life Sciences segment revenue		$	3.5	$	—

The following table disaggregates the Spectrum segment's revenue by type (in millions):


	Years Ended December 31,
		2021		2020
Broadcast station		$	18.6	$	15.5
Network advertising		18.1		18.4
Network distribution		3.2		4.0
Other		2.1		2.4


Total Spectrum segment revenue		$	42.0	$	40.3

Contract with Customer, Asset and Liability

Contract assets and contract liabilities consisted of the following (in millions):


	December 31, 2021		December 31, 2020

Cost in excess of billings	$	68.3	$	55.6
Conditional retainage	50.3		31.0
Contract assets	$	118.6	$	86.6

Billings in excess of costs	$	(137.6)	$	(52.2)
Conditional retainage	58.5		19.0
Contract liabilities	$	(79.1)	$	(33.2)

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction

The transaction price allocated to remaining unsatisfied performance obligations consisted of the following (in millions):


	Within one year		Within five years		Total
Commercial	$	452.6	$	502.0	$	954.6
Industrial	278.9		7.6		286.5
Transportation	21.6		16.1		37.7
Government	26.9		—		26.9
Leisure	17.1		—		17.1
Healthcare	85.6		—		85.6
Convention	109.3		40.0		149.3
Other	8.0		—		8.0
Remaining unsatisfied performance obligations	$	1,000.0	$	565.7	$	1,565.7

Acquisitions, Dispositions, and Deconsolidations (Tables)

12 Months Ended

Dec. 31, 2021

Business Combination and Asset Acquisition [Abstract]

Schedule of Purchase Price Allocation

The allocation of the fair value of consideration transferred among the identified assets acquired, liabilities assumed, intangibles and residual goodwill is summarized as follows (in millions):


Purchase Consideration at Fair Value
Partial draw on new $110.0 million revolving credit facility	$	64.1
Sellers' notes	49.6
Bankers Steel debt - assumed	6.3
Cash	25.0
Gross consideration	145.0
Less: Seller transaction costs - assumed	0.4
Less: Bankers debt - assumed	6.3
Less: R&W premium paid by seller	0.5
Net consideration	$	137.8

Cash and cash equivalents	$	9.3
Accounts receivable, net	70.9
Contract assets	22.6
Assets held for sale	0.7
Inventory	5.7
Other current assets	1.7
Property, plant, and equipment, net	58.6
Other assets	40.1
Intangibles, net	60.8
Goodwill	16.7
Total assets to be acquired	287.1

Accounts Payable	39.1
Contract liabilities	38.6
Other current liabilities	31.1
Other liabilities	34.2
Long-term debt, less current portion	6.3
Total liabilities to be assumed	149.3

Total net assets acquired	$	137.8

Business Acquisition, Pro Forma Information

The following schedule presents the results of operations data for the year ended December 31, 2021 for Banker Steel since the date of acquisition (in millions):


	Year Ended December 31, 2021
Revenue	$	265.9
Net income from operations	$	15.5
Net income attributable to INNOVATE	$	8.8

Pro Forma Adjusted Summary


	Year Ended December 31, 2021		Year Ended December 31, 2020
Revenue	$	1,402.7	$	1,114.1
Income (loss) from operations	$	0.9	$	1.5
Net loss attributable to INNOVATE	$	(219.2)	$	(70.6)

Accounts Receivable, net (Tables)

12 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Schedule of Accounts Receivable

Accounts receivables, net from contracts with customers consist of the following (in millions):


	December 31, 2021		December 31, 2020

Accounts receivables with customers
Infrastructure	$	226.8	$	118.5
Spectrum	9.4		7.3
Life Sciences	0.3		—
Total accounts receivables with customers	$	236.5	$	125.8

Accounts receivable, net consist of the following (in millions):


	December 31, 2021		December 31, 2020

Contracts in progress	$	226.8	$	118.6
Unbilled retentions	0.4		0.3
Trade receivables	9.9		7.5
Other receivables	10.6		8.9
Allowance for doubtful accounts	(0.6)		(0.6)
Total	$	247.1	$	134.7

Property, Plant, and Equipment, net (Tables)

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Summary of Property, Plant, and Equipment

Property, plant and equipment, net consists of the following (in millions):


	December 31, 2021		December 31, 2020


Equipment, furniture and fixtures, and software	$	180.7	$	113.7
Building and leasehold improvements	43.0		41.0
Land	24.1		24.1
Construction in progress	8.9		3.1
Plant and transportation equipment	8.3		4.4
	265.0		186.3
Less: Accumulated depreciation	95.1		73.5
Total	$	169.9	$	112.8

Goodwill and Intangibles, net (Tables)

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of the Changes in the Carrying Amount of Goodwill by Reporting Unit

The carrying amount of goodwill by segment was as follows (in millions):


	Infrastructure		Spectrum		Total
Balance at December 31, 2020	$	89.6	$	21.4	$	111.0

Acquisitions	16.7		—		16.7


Translation	(0.3)		—		(0.3)
Balance at December 31, 2021	$	106.0	$	21.4	$	127.4

Schedule of Indefinite-Lived Intangible Assets

The carrying amount of indefinite-lived intangible assets was as follows (in millions):


	December 31, 2021		December 31, 2020

FCC licenses	$	106.5	$	113.0

Total	$	106.5	$	113.0

Schedule of Intangible Assets Subject to Amortization

The gross carrying amount and accumulated amortization of definite lived intangible assets by major intangible asset class were as follows (in millions):


	Weighted-Average Original Useful Life	December 31, 2021							December 31, 2020
		Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Trade names	14 years	$	25.4		$	(6.3)	$	19.1	$	18.0		$	(4.6)	$	13.4
Customer relationships and contracts	11 years	87.7			(21.6)		66.1		36.4			(12.1)		24.3
Channel sharing arrangements	35 years	12.6			(1.1)		11.5		20.2			(1.6)		18.6
Other	10 years	8.5			(3.3)		5.2		5.5			(2.7)		2.8
Total		$	134.2		$	(32.3)	$	101.9	$	80.1		$	(21.0)	$	59.1

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

The Company estimates the annual amortization expense of amortizable intangible assets for the next five fiscal years will be as follows (in millions):


	Estimated Amortization
2022	$	17.2
2023	11.4
2024	8.0
2025	7.3
2026	6.8
Thereafter	51.2
Total	$	101.9

Debt Obligations (Tables)

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Schedule of Debt and Finance Lease Obligations

Debt obligations consist of the following (in millions):


	December 31, 2021		December 31, 2020
Infrastructure
LIBOR plus 5.85% Note, due 2023	$	—	$	71.6
LIBOR plus 1.50% Line of Credit	—		38.7
3.25% Note due 2026	107.2		—
PRIME minus 1.10% Line of Credit	30.4		—
4.00% Note due 2024	25.0		—
8.00% Note due 2024	19.6		—
11.00% Note due 2024	6.3		—
Obligations under finance leases	0.1		0.2
Spectrum
8.50% Note due 2021	—		19.3
10.50% Note due 2021	—		32.9
8.50% Note due 2022	19.3		—
10.50% Note due 2022	32.9		—
Other, various maturity dates	—		2.9
Obligations under finance leases	—		0.6
Non-Operating Corporate
11.50% Senior Secured Notes, due 2021	—		340.4
8.50% Senior Secured Notes, due 2026	330.0		—
7.50% Convertible Senior Notes, due 2022	3.2		55.0
7.50% Convertible Senior Notes, due 2026	51.8		—
LIBOR plus 5.75% Line of Credit	5.0		15.0
	630.8		576.6
Unamortized issuance discount, issuance premium, and deferred financing costs	(4.5)		(15.1)
Less: current portion of debt obligations	(69.5)		(433.6)
Debt obligations	$	556.8	$	127.9

Schedule of Maturities of Debt and Finance Lease Obligations

Aggregate finance lease and debt payments, including interest are as follows (in millions):


	Finance Leases		Debt		Total
2022	$	0.1	$	115.7	$	115.8
2023	—		56.4		56.4
2024	—		107.5		107.5
2025	—		41.3		41.3
2026	—		487.3		487.3
Thereafter	—		—		—
Total minimum principal and interest payments	0.1		808.2		808.3
Less: Amount representing interest	—		(177.5)		(177.5)
Total aggregate finance lease and debt payments	$	0.1	$	630.7	$	630.8

Supplementary Financial Information (Tables)

12 Months Ended

Dec. 31, 2021

Offsetting [Abstract]

Schedule of Costs and Recognized Earnings in Excess of Billings and Billings in Excess of Costs and Recognized Earnings on Uncompleted Contracts

Contract assets and contract liabilities and recognized earnings consist of the following (in millions):


	December 31, 2021		December 31, 2020

Costs incurred on contracts in progress	$	2,161.5	$	752.9
Estimated earnings	316.4		139.0
Contract revenue earned on uncompleted contracts	2,477.9		891.9
Less: progress billings	2,438.4		838.5
	$	39.5	$	53.4

The above is included in the accompanying consolidated balance sheet under the following line items:
Contract assets	$	118.6	$	86.6
Contract liabilities	(79.1)		(33.2)
	$	39.5	$	53.4

Schedule of Inventory

Inventory consists of the following (in millions):


	December 31, 2021		December 31, 2020

Raw materials and consumables	$	14.3	$	8.7
Work in process	1.2		—
Finished goods	1.5		1.2
Total inventory	$	17.0	$	9.9

Schedule of Other Invested Assets

Carrying values of other invested assets were as follows (in millions):


	December 31, 2021						December 31, 2020
	Measurement Alternative(1)		Equity Method		Total		Measurement Alternative(1)		Equity Method		Total
Common stock	$	—	$	2.1	$	2.1	$	—	$	2.5	$	2.5
Preferred stock	—		7.5		7.5		—		15.4		15.4
Fixed maturities	0.5		—		0.5		0.5		—		0.5
Put option	11.3		—		11.3		11.3		—		11.3
Equity method securities	—		34.6		34.6		—		25.7		25.7
Total	$	11.8	$	44.2	$	56.0	$	11.8	$	43.6	$	55.4

Schedule of Financial Instruments Measured at Fair Value on Nonrecurring Basis


December 31, 2021					Fair Value Measurement Using:
	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Assets
Other invested assets	$	11.3	$	11.3	$	—	$	—	$	11.3
Total assets not accounted for at fair value	$	11.3	$	11.3	$	—	$	—	$	11.3
Liabilities
Debt obligations (1)	$	626.3	$	648.2	$	—	$	648.2	$	—
Total liabilities not accounted for at fair value	$	626.3	$	648.2	$	—	$	648.2	$	—


December 31, 2020					Fair Value Measurement Using:
	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Assets
Other invested assets	$	11.3	$	11.3	$	—	$	—	$	11.3
Total assets not accounted for at fair value	$	11.3	$	11.3	$	—	$	—	$	11.3
Liabilities
Debt obligations (1)	$	560.7	$	579.2	$	—	$	579.2	$	—
Total liabilities not accounted for at fair value	$	560.7	$	579.2	$	—	$	579.2	$	—

(1) Excludes certain lease obligations accounted for under ASC 842, Leases.

Summarized Information for Equity Method Investments

The following tables provide summarized financial information for the Company's equity method investments (in millions):


	December 31, 2021		December 31, 2020

Assets	$	604.5	$	524.2
Liabilities	481.5		405.9
Equity	$	123.0	$	118.3


	Years Ended December 31,
		2021		2020
Total revenues		$	624.1	$	468.2
Gross profit		$	95.5	$	82.7
Income from continuing operations		$	11.5	$	11.1
Net income		$	6.4	$	6.8

Schedule of Other Non-Current Assets

The following tables provide information relating to Other non-current assets (in millions):


	December 31, 2021		December 31, 2020

Right of use asset	$	69.6	$	39.8
Other	3.7		2.4
Total other non-current assets	$	73.3	$	42.2

Schedule of Accrued Liabilities

Accrued liabilities consist of the following (in millions):


	December 31, 2021		December 31, 2020

Accrued expenses and other current liabilities	$	24.5	$	27.9

Accrued payroll and employee benefits	38.9		34.7
Accrued interest	29.6		13.9
Accrued income taxes	0.4		0.6
Total accrued liabilities	$	93.4	$	77.1

Schedule of Other Noncurrent Liabilities

The following tables provide information relating to Other non-current liabilities (in millions):


	December 31, 2021		December 31, 2020

Lease liability, net of current portion	$	58.5	$	31.6

Other	4.8		8.2
Total other non-current liabilities	$	63.3	$	39.8

Leases (Tables)

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Schedule of Lease ROUs and Lease Liabilities

As of December 31, 2021 and December 31, 2020, lease right-of-use assets and lease liabilities consist of the following (in millions):


	December 31, 2021		December 31, 2020

Right-of-use assets:
Operating lease (Other non-current assets)	$	69.6	$	39.8
Finance lease (Property, plant and equipment, net)	0.2		0.9
Total right-of-use assets	$	69.8	$	40.7

Lease liabilities:
Current portion of operating lease (Other current liabilities)	$	15.5	$	11.2
Non-current portion of operating lease (Other non-current liabilities)	58.5		31.6
Finance lease (Debt obligations)	0.1		0.8
Total lease liabilities	$	74.1	$	43.6

Schedule of Leases, Cost

The following table summarizes the components of lease expense for the year ended December 31, 2021 and 2020 (in millions):


	Years Ended December 31,
		2021		2020
Finance lease cost:
Amortization of right-of-use assets		$	0.8	$	0.9
Interest on lease liabilities		—		0.1
Net finance lease cost		0.8		1.0
Operating lease cost		21.7		14.0

Variable lease cost		0.5		0.2
Sublease income		(0.5)		—
Total lease cost		$	22.5	$	15.2

Cash flow information related to leases for the years ended December 31, 2021 and 2020 is as follows (in millions):


	Years Ended December 31,
		2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases		$	—	$	0.1
Financing cash flows from finance leases		$	0.7	$	0.7
Operating cash flows from operating leases		$	21.9	$	13.9
Right-of-use assets obtained in exchange for new lease liabilities
Finance leases		$	0.1	$	0.1
Operating leases		$	48.3	$	15.6

As of December 31, 2021 and December 31, 2020, the weighted-average remaining lease term and the weighted-average discount rate for finance leases and operating leases are as follows:


	December 31, 2021		December 31, 2020

Weighted-average remaining lease term (years) - operating lease	7.5		4.0
Weighted-average remaining lease term (years) - finance lease	2.3		1.1
Weighted-average discount rate - operating lease	5.4	%	6.3	%
Weighted-average discount rate - finance lease	4.2	%	9.0	%

Schedule of Finance Lease, Liability, Maturity

As of December 31, 2021, undiscounted cash flows for finance and operating leases are as follows (in millions):


	Operating Leases		Finance Leases
2022	$	18.7	$	0.1
2023	16.4		—
2024	11.6		—
2025	8.3		—
2026	5.5		—
Thereafter	30.7		—
Total future lease payments	91.2		0.1
Less: Present values	(17.2)		—
Total lease liability balance	$	74.0	$	0.1

Schedule of Operating Lease, Liability, Maturity

As of December 31, 2021, undiscounted cash flows for finance and operating leases are as follows (in millions):


	Operating Leases		Finance Leases
2022	$	18.7	$	0.1
2023	16.4		—
2024	11.6		—
2025	8.3		—
2026	5.5		—
Thereafter	30.7		—
Total future lease payments	91.2		0.1
Less: Present values	(17.2)		—
Total lease liability balance	$	74.0	$	0.1

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Provisions (Benefits) for Income Taxes

The provisions expense for income taxes for the years ended December 31, 2021 and 2020 were as follows (in millions):


	Years Ended December 31,
	2021		2020
Current: Federal	$	0.1	$	(10.6)
State	1.8		1.5
Foreign	1.8		9.5
Subtotal Current	3.7		0.4
Deferred: Federal	0.8		3.1
State	0.2		0.1
Foreign	0.9		3.4
Subtotal Deferred	1.9		6.6
Income tax expense	$	5.6	$	7.0

Components of Income (Loss) from Continuing Operations Before Income Taxes

The US and foreign components of income (loss) from continuing operations before income taxes for the years ended December 31, 2021 and 2020 were as follows (in millions):


	Years Ended December 31,
	2021		2020
US	$	(89.7)	$	(125.0)
Foreign	9.0		78.3
Loss from continuing operations before income taxes	$	(80.7)	$	(46.7)

Federal Statutory Income Tax Rate to Income (Loss) Before Income Taxes


	Years Ended December 31,
	2021		2020
Tax provision (benefit) at federal statutory rate	$	(17.0)	$	(9.8)
Permanent differences	0.4		0.2
State tax, net of federal benefit	(1.6)		(6.9)
Foreign rate differential	0.4		0.2

Executive and stock compensation	0.4		1.2
Increase (decrease) in valuation allowance	(0.6)		24.3
Transaction costs	0.5		0.5
Return to provision	3.3		5.6


Rate Change	20.2		(3.0)
Transition to the Coronavirus Aid, Relief, and Economic Security Act	—		(10.9)
Withholding Tax Expense	—		7.3
Gain/loss on sale or deconsolidation of a subsidiary	—		(5.8)
Outside Basis Difference	0.9		(0.9)
Contingent Liability	—		2.2
AOCI Recycling	—		2.1
Other	1.6		1.3
Equity Income/Loss	(1.1)		(0.6)
Derivative	(1.8)		—
Income tax (benefit) expense	$	5.6	$	7.0

Significant Components of Company's Deferred Tax Assets and Liabilities

Net deferred tax balances are comprised of the following as of December 31, 2021 and 2020 (in millions):


	December 31,
	2021		2020
Net operating loss carryforwards	$	63.8	$	77.0
Basis difference in fixed assets	0.7		0.8
Deferred compensation	6.7		6.6



Sec. 163(j) Carryforward	58.1		58.6

Lease liability	20.9		13.0
Other deferred tax assets	13.4		20.5
Total deferred tax assets	163.6		176.5
Valuation Allowance	(102.8)		(115.5)
Total net deferred tax assets	60.8		61.0

Basis difference in fixed assets	(14.1)		(22.1)

Right of use assets	(19.8)		(12.1)
Basis difference in intangibles	(26.1)		(22.2)
Other deferred tax liabilities	(6.9)		(8.6)
Total deferred tax liabilities	(66.9)		(65.0)

Net deferred tax liabilities	$	(6.1)	$	(4.0)

Summary of Reconciliation of Unrecognized Tax Benefits

Below is a tabular reconciliation of the total amount of unrecognized tax benefits (in millions):


	December 31,
	2021		2020
Uncertain tax benefits - January 1	$	22.9	$	—
Gross increases - Tax positions in prior period	—		—
Gross decreases - Tax positions in prior period	(5.3)		—
Gross increases - Tax positions in current period	—		22.9
Settlement	—		—
Lapse in statute of limitations	—		—
Uncertain tax benefits - December 31	$	17.6	$	22.9

Commitment and Contingencies (Tables)

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Purchase Obligations and Non-Cancellable Operating Leases

Future minimum purchase obligations as of December 31, 2021 were as follows (in millions):


2022	$	347.1
2023	29.8
2024	1.4
2025	—
2026	—
Thereafter	—
Total obligations	$	378.3

Share-based Compensation (Tables)

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Fair Value of Each Option Grant Estimated


									Year Ended December 31,
									2020
Expected option life (in years)									4.3 years
Risk-free interest rate									0.24%
Expected volatility									62.23%
Dividend yield									—%

Summary of Company's Restricted Stock Activity

A summary of INNOVATE’s restricted stock activity is as follows:


	Shares	Weighted Average Grant Date Fair Value
Unvested - December 31, 2019	2,213,775	$	5.12
Granted	1,152,202	$	2.74
Vested	(2,258,905)	$	4.08
Forfeited	(478,639)	$	5.87
Unvested - December 31, 2020	628,433	$	3.93
Granted	593,458	$	3.81
Vested	(514,543)	$	3.89
Forfeited	(151,469)	$	4.13
Unvested - December 31, 2021	555,879	$	3.79

Summary of Company's Stock Option Activity

A summary of INNOVATE’s stock option activity is as follows:


	Shares	Weighted Average Exercise Price
Outstanding - December 31, 2019	7,067,592	$	6.52
Granted	143,096	$	2.62
Exercised	—	$	—
Forfeited	(142,503)	$	5.45
Expired	(2,328,327)	$	9.18
Outstanding - December 31, 2020	4,739,858	$	5.13
Granted	—	$	—
Exercised	—	$	—
Forfeited	—	$	—
Expired	(23,999)	$	5.31
Outstanding - December 31, 2021	4,715,859	$	5.13

Eligible for exercise	4,714,509	$	5.13

Equity (Tables)

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

Schedule of Stock by Class

The Company’s preferred shares authorized, issued and outstanding consisted of the following:


	December 31, 2021	December 31, 2020

Preferred shares authorized, $0.001 par value	20,000,000	20,000,000
Series A shares issued and outstanding(1)	—	6,375
Series A-2 shares issued and outstanding(1)	—	4,000
Series A-3 shares issued and outstanding	6,125	—
Series A-4 shares issued and outstanding	10,000	—

Summary of Cash, PIK and Special Cash Dividends

2021

Declaration Date

March 31, 2021

May 29, 2021

September 30, 2021

December 31, 2021

Holders of Record Date

March 31, 2021

May 29, 2021

September 30, 2021

December 31, 2021

Payment Date

April 15, 2021

June 4, 2021

October 15, 2021

January 15, 2022

Total Dividend

0.2

0.1

0.3

2020

Declaration Date

March 31, 2020

June 30, 2020

September 30, 2020

December 31, 2020

Holders of Record Date

March 31, 2020

June 30, 2020

September 30, 2020

December 31, 2020

Payment Date

April 15, 2020

July 15, 2020

October 15, 2020

January 15, 2021

Total Dividend

0.2

2021

Declaration Date

September 30, 2021

December 31, 2021

Holders of Record Date

September 30, 2021

December 31, 2021

Payment Date

October 15, 2021

January 15, 2022

Total Dividend

0.8

0.9

Tabular disclosure of an entity's stock, including par or stated value per share, number and dollar amount of share subscriptions, shares authorized, shares issued, shares outstanding, number and dollar amount of shares held in an employee trust, dividend per share, total dividends, share conversion features, par value plus additional paid in capital, the value of treasury stock and other information necessary to a fair presentation, and EPS information. Stock by class includes common, convertible, and preferred stocks which are not redeemable or redeemable solely at the option of the issuer. Includes preferred stock with redemption features that are solely within the control of the issuer and mandatorily redeemable stock if redemption is required to occur only upon liquidation or termination of the reporting entity. If more than one issue is outstanding, state the title of each issue and the corresponding dollar amount; dollar amount of any shares subscribed but unissued and the deduction of subscriptions receivable there from; number of shares authorized, issued, and outstanding.

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Schedules of Concentration of Risk, by Risk Factor

Operating Segment and Related Information (Tables)

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

The Company's revenue concentration of 10% and greater are as follows:

Years Ended December 31,

Segment

2021

2020

Customer A

Infrastructure

13.9%

*Less than 10% revenue concentration

Summary of Company's Operating Segments

Summary information with respect to the Company’s operating segments is as follows (in millions):


	Years Ended December 31,
		2021		2020
Revenue
Infrastructure		$	1,159.7	$	676.6
Life Sciences		3.5		—
Spectrum		42.0		40.3




Total revenue		$	1,205.2	$	716.9


	Years Ended December 31,
		2021		2020
Income (loss) from operations
Infrastructure		$	35.2	$	20.5
Life Sciences		(19.9)		(16.9)
Spectrum		(0.8)		(2.2)

Other		(2.0)		(2.7)
Non-operating Corporate		(23.1)		(27.0)

Total loss from operations		$	(10.6)	$	(28.3)

A reconciliation of the Company's consolidated segment operating income to consolidated earnings before income taxes is as follows (in millions):


	Years Ended December 31,
		2021		2020
Loss from operations		$	(10.6)	$	(28.3)
Interest expense		(59.1)		(74.8)

Loss on early extinguishment or restructuring of debt		(12.5)		(9.4)


Loss from equity investees		(2.8)		(3.4)

Other income		4.3		69.2
Loss from continuing operations before income taxes		(80.7)		(46.7)
Income tax expense		(5.6)		(7.0)
Loss from continuing operations		(86.3)		(53.7)
Loss from discontinued operations (including loss on sale of $159.9 million and $44.1 million for the years ended December 31, 2021 and 2020, respectively)		(149.9)		(48.4)
Net loss		(236.2)		(102.1)
Net loss attributable to noncontrolling interest and redeemable noncontrolling interest		8.7		10.1
Net loss attributable to INNOVATE Corp.		(227.5)		(92.0)
Less: Preferred dividends and deemed dividends from conversions		2.2		3.6
Net loss attributable to common stock and participating preferred stockholders		$	(229.7)	$	(95.6)


	Years Ended December 31,
		2021		2020
Depreciation and Amortization
Infrastructure		$	19.1	$	10.7
Infrastructure recognized within cost of revenue		12.2		9.1
Total Infrastructure		31.3		19.8
Life Sciences		0.2		0.1
Spectrum		6.0		6.8


Non-operating Corporate		0.1		0.1


Total depreciation and amortization		$	37.6	$	26.8


	Years Ended December 31,
		2021		2020
Capital Expenditures (*)
Infrastructure		$	18.3	$	5.7
Life Sciences		0.5		0.1
Spectrum		5.3		11.8


Non-operating Corporate		—		0.2
Total		$	24.1	$	17.8

(*) The above capital expenditures exclude assets acquired under terms of capital lease and vendor financing obligations.

Segment Reporting for Long-term investments, Property and Equipment - Net and Assets


	December 31, 2021		December 31, 2020

Investments
Infrastructure	$	0.7	$	0.9
Life Sciences	10.2		18.4


Other	45.1		36.1


Total	$	56.0	$	55.4


	December 31, 2021		December 31, 2020

Equity Method Investees
Infrastructure	$	0.7	$	0.9
Life Sciences	9.6		17.9

Other	33.9		24.8
Total	$	44.2	$	43.6


	December 31, 2021		December 31, 2020

Total Assets
Infrastructure	$	786.4	$	475.8
Life Sciences	22.0		21.4
Spectrum	198.9		213.6

Other	48.0		6,021.3
Non-operating Corporate	25.3		30.1
Eliminations	—		(38.4)
Total	$	1,080.6	$	6,723.8

Basic and Diluted Income (Loss) Per Common Share (Tables)

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Calculation of Basic Income (Loss) Per Common Share to Diluted Income (Loss) Per Common Share

The following table presents a reconciliation of net income (loss) used in basic and diluted EPS calculations (in millions, except per share amounts):


	Years Ended December 31,
		2021		2020
Loss from continuing operations		$	(86.3)	$	(53.7)
Income (loss) from continuing operations attributable to noncontrolling interest and redeemable noncontrolling interest		7.8		(5.9)
Loss from continuing operations attributable to the Company		(78.5)		(59.6)
Less: Preferred dividends, deemed dividends and repurchase gains		2.2		3.6


Loss from continuing operations attributable to INNOVATE common stockholders	(80.7)			(63.2)
Loss from discontinued operations	(149.9)			(48.4)
Income from discontinued operations attributable to noncontrolling interest and redeemable noncontrolling interest	0.9			16.0
Loss from discontinued operations, net of tax and noncontrolling interest	(149.0)			(32.4)
Net loss attributable to common stock and participating preferred stockholders	$	(229.7)		$	(95.6)

Earnings allocable to common shares:
Participating shares at end of period:
Weighted-average common stock outstanding	77.1			50.3
Unvested restricted stock	—			—
Preferred stock (as-converted basis)	—			0.4
Total	77.1			50.7

Percentage of loss allocated to:
Common stock	100.0		%	99.2		%
Unvested restricted stock	—		%	—		%
Preferred stock	—		%	0.8		%

Numerator for earnings per share, basic:
Net loss from continuing operations attributable to common stock, basic	$	(80.7)		$	(62.7)
Net loss from discontinued operations attributable to common stock, basic	$	(149.0)		$	(32.1)
Net loss attributable to common stock, basic	$	(229.7)		$	(94.8)

Earnings allocable to common shares, diluted:
Numerator for earnings per share, diluted
Effect of assumed shares under the if-converted method for convertible instruments	$	—		$	—

Net loss from continuing operations attributable to common stock, basic	$	(80.7)		$	(62.7)
Net loss from discontinued operations attributable to common stock, basic	$	(149.0)		$	(32.1)
Net loss attributable to common stock, basic	$	(229.7)		$	(94.8)

Denominator for basic and dilutive earnings per share
Weighted average common shares outstanding - basic	77.1			50.3
Effect of assumed shares under treasury stock method for stock options and restricted shares and if-converted method for convertible instruments	—			—
Weighted average common shares outstanding - diluted	77.1			50.3

Loss per share - continuing operations
Basic	$	(1.05)		$	(1.25)
Diluted	$	(1.05)		$	(1.25)

Loss per share - discontinued operations
Basic	$	(1.93)		$	(0.63)
Diluted	$	(1.93)		$	(0.63)

Loss per share - Net loss attributable to common stock and participating preferred stockholders
Basic	$	(2.98)		$	(1.88)
Diluted	$	(2.98)		$	(1.88)

Organization and Business (Details) - segment	12 Months Ended
Organization and Business (Details) - segment	Dec. 31, 2021	Dec. 31, 2020	May 12, 2020	Oct. 30, 2019
Business And Organization [Line Items]
Number of reportable segments	3
DBMG
Business And Organization [Line Items]
Parents interest, controlling (approximately)	91.00%	89.00%
Genoval Orthopedics inc.
Business And Organization [Line Items]
Parents interest, controlling (approximately)	80.00%
R2 Technologies, Inc.
Business And Organization [Line Items]
Parents interest, controlling (approximately)	56.00%
MediBeacon Inc.
Business And Organization [Line Items]
Parents interest, controlling (approximately)	47.00%
Triple Ring
Business And Organization [Line Items]
Parents interest, controlling (approximately)	26.00%
HC2 Broadcasting Holdings, Inc
Business And Organization [Line Items]
Parents interest, controlling (approximately)	98.00%
DTV America
Business And Organization [Line Items]
Parents interest, controlling (approximately)	77.00%	60.00%
Minority Holders
Business And Organization [Line Items]
Percentage of proxy and voting rights from minority holders	10.00%	10.00%
GMSL
Business And Organization [Line Items]
Parents interest, controlling (approximately)	73.00%		30.00%	49.00%
HMN
Business And Organization [Line Items]
Parents interest, controlling (approximately)	19.00%

Summary of Significant Accounting Policies - Equity Method Investments (Details)	Dec. 31, 2021
MediBeacon Inc.
Schedule of Equity Method Investments [Line Items]
Parents interest, controlling (approximately)	47.00%
Triple Ring
Schedule of Equity Method Investments [Line Items]
Parents interest, controlling (approximately)	26.00%
HMN
Schedule of Equity Method Investments [Line Items]
Parents interest, controlling (approximately)	19.00%

Summary of Significant Accounting Policies - Accounts Receivable (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Accounting Policies [Abstract]
Accounts receivable, bad debt expense	$ 0.1	$ 0.6

Summary of Significant Accounting Policies - Property, Plant and Equipment (Details)	12 Months Ended
	Dec. 31, 2021
Minimum \| Buildings and Leasehold Improvements
Property, Plant and Equipment [Line Items]
Useful lives	5 years
Minimum \| Equipment, Furniture and Fixtures
Property, Plant and Equipment [Line Items]
Useful lives	3 years
Minimum \| Plant and Transportation Equipment
Property, Plant and Equipment [Line Items]
Useful lives	3 years
Maximum \| Buildings and Leasehold Improvements
Property, Plant and Equipment [Line Items]
Useful lives	40 years
Maximum \| Equipment, Furniture and Fixtures
Property, Plant and Equipment [Line Items]
Useful lives	15 years
Maximum \| Plant and Transportation Equipment
Property, Plant and Equipment [Line Items]
Useful lives	20 years

Summary of Significant Accounting Policies - Concentrations of Credit Risk and of Significant Suppliers (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Concentration Risk [Line Items]
Cash in foreign accounts	$ 4.7	$ 8.5
Accounts Payable \| Supplier Concentration Risk \| Supplier One
Concentration Risk [Line Items]
Concentration risk, percentage	15.10%

Summary of Significant Accounting Policies - Schedule of Other Income (Expense) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Accounting Policies [Abstract]
Loss on embedded derivatives	$ (0.7)	$ (2.8)
Gain on sale of equity method investments	0.0	71.2
Other income, net	5.0	0.8
Total	$ 4.3	$ 69.2

Summary of Significant Accounting Policies - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Restricted Cash and Cash Equivalents Items [Line Items]
Cash and cash equivalents	$ 45.5	$ 43.8	$ 23.3
Restricted cash included in other assets	2.0	1.5	1.4
Total cash and cash equivalents and restricted cash	47.5	45.3	24.7
Supplemental cash flow information:
Cash paid for interest	32.6	65.1
Cash paid for taxes, net of refunds	5.4	0.2
Non-cash investing and financing activities:
Property, plant and equipment included in accounts payable	1.4	4.4
Investments included in accounts payable	0.0	17.1
Issuance of redeemable noncontrolling interest	40.9	0.0
Extinguishment of convertible note in exchange	51.8	0.0
Issuance of convertible note in exchange	(51.8)	0.0
Debt assumed in acquisitions	6.3	0.0
Temporary Equity
Non-cash investing and financing activities:
Issuance of redeemable noncontrolling interest	40.9
Preferred stock
Non-cash investing and financing activities:
Issuance of preferred stock	19.1	0.0
Preferred stock \| Temporary Equity
Non-cash investing and financing activities:
Issuance of preferred stock	19.1	25.0
Discontinued Operations
Restricted Cash and Cash Equivalents Items [Line Items]
Cash and cash equivalents classified in assets held for sale	0.0	195.2	216.0
Restricted cash classified in Assets held for sale	0.0	0.2	0.2
Total cash and cash equivalents and restricted cash classified in Assets held for sale	$ 0.0	$ 195.4	$ 216.2

Discontinued Operations - Summarized Operating Results of the Discontinued Operations (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loss on sale and liquidation of subsidiaries		$ (44.1)
Loss from discontinued operations	$ (149.9)	(48.4)
Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenue	1.7	519.6
Life, accident and health earned premiums, net	55.7	115.1
Net investment income	92.4	188.9
Realized/unrealized gains (losses) on investments	5.1	(15.0)
Total revenue	154.9	808.6
Cost of revenue	0.8	492.4
Policy benefits, changes in reserves, and commissions	126.0	250.0
Selling, general and administrative	21.1	62.0
Depreciation and amortization	(11.0)	(8.3)
Other operating expenses	0.0	0.3
Income from operations	18.0	12.2
Interest expense	(0.5)	(12.1)
Loss on sale and liquidation of subsidiaries	(159.9)	(44.1)
Income from equity investees	0.0	0.5
Other loss	(3.1)	(2.3)
Pre-tax loss from discontinued operations	(145.5)	(45.8)
Income tax expense	(4.4)	(2.6)
Loss from discontinued operations	$ (149.9)	$ (48.4)

Discontinued Operations - Narrative (Details) - USD ($) $ in Millions					3 Months Ended				12 Months Ended
	Jul. 01, 2021	Jan. 15, 2021	Oct. 31, 2020	Feb. 28, 2020	Sep. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Nov. 20, 2018
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Accumulated other comprehensive income							$ 396.9		$ 6.4	$ 396.9
Cash and cash equivalents							43.8		45.5	43.8	$ 23.3
Investments							55.4		56.0	55.4
Gain (loss) on sale of subsidiary										(44.1)
Repayments of long-term debt									458.1	181.9
Loss on disposal of subsidiary									334.0	(30.3)
Foreign currency translation adjustment, net of tax									(2.1)	(7.9)
Secured Indenture
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Interest rate												98.75%
Beyond6 \| 2020 Revolving Credit Agreement
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Repayments of long-term debt		$ 15.0
Beyond6 \| 11.5% Senior Secured Notes
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Repayments of long-term debt		27.9
GMSL
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain (loss) on sale of subsidiary						$ 1.2	2.4	$ (39.3)
Loss on disposal of subsidiary								$ 31.3
GMSL \| 11.5% Senior Secured Notes
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Debt instrument, amount redeemed				$ 76.9
Interest rate				11.50%
GMSL \| Revolving Credit Agreement
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Repayments of long-term debt				$ 15.0
GMSL \| Secured Indenture
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Debt instrument, amount redeemed				76.9
Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain (loss) on sale of subsidiary									$ (159.9)	$ (44.1)
Discontinued Operations \| CIG
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Beneficial ownership interest									6.60%
Gain (loss) on sale of subsidiary	$ (200.8)
Discontinued Operations \| CIG \| Insurance
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Segment book value	544.0
Accumulated other comprehensive income	344.0
Cash and cash equivalents	62.5
Investments	$ 26.7
Discontinued Operations \| Beyond6
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain (loss) on sale of subsidiary		$ 39.2			$ 0.5
Discontinued Operations \| GMSL
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain (loss) on sale of subsidiary				(39.3)		$ 1.2	$ 2.4
Loss on disposal of subsidiary				31.3
Discontinued Operations \| GMSL \| Revolving Credit Agreement
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Repayments of long-term debt				$ 15.0
Discontinued Operations \| ICS
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain (loss) on sale of subsidiary			$ 0.9
Foreign currency translation adjustment, net of tax			$ 8.2

Discontinued Operations - Interest and Amortization (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Interest expense	$ 59.1	$ 74.8
2020 Revolving Credit Agreement \| Beyond6 \| Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Interest expense	0.1	0.9
Amortization of deferred financing costs and original issuance discount	0.0	0.1
11.5% Senior Secured Notes \| Beyond6 \| Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Interest expense	0.3	3.2
Amortization of deferred financing costs and original issuance discount	0.0	0.4
Revolving Credit Agreement \| GMSL \| Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Interest expense	0.0	0.2
Amortization of deferred financing costs and original issuance discount	0.0	0.1
Secured Indenture \| GMSL \| Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Interest expense	0.0	2.2
Amortization of deferred financing costs and original issuance discount	$ 0.0	$ 0.2

Discontinued Operations - Summarized Assets and Liabilities of the of Discontinued Operations (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Current assets
Total assets held for sale	$ 1.5	$ 5,942.1
Current liabilities
Total liabilities held for sale	0.0	5,306.7
Discontinued Operations
Current assets
Cash and cash equivalents	0.0	195.2	$ 216.0
Accounts receivable, net	0.0	13.6
Other current assets	1.5	8.7
Total current assets	1.5	217.5
Investments	0.0	4,610.2
Recoverable from reinsurers	0.0	957.5
Deferred tax asset	0.0	1.4
Property, plant and equipment, net	0.0	90.5
Goodwill	0.0	2.1
Intangibles, net	0.0	11.7
Other assets	0.0	51.2
Total assets held for sale	1.5	5,942.1
Current liabilities
Accounts payable	0.0	2.6
Accrued liabilities	0.0	35.8
Current portion of debt obligations	0.0	5.7
Other current liabilities	0.0	7.4
Total current liabilities	0.0	51.5
Life, accident and health reserves	0.0	4,627.5
Annuity reserves	0.0	228.8
Value of business acquired	0.0	199.8
Deferred tax liability	0.0	136.5
Debt obligations	0.0	50.6
Other liabilities	0.0	12.0
Total liabilities held for sale	$ 0.0	$ 5,306.7

Revenue - Reconciliation of Revenue from Segments to Consolidated (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Revenue	$ 1,205.2	$ 716.9
Infrastructure
Segment Reporting Information [Line Items]
Revenue	1,159.5	675.9
Spectrum
Segment Reporting Information [Line Items]
Revenue	42.0	40.3
Life Sciences
Segment Reporting Information [Line Items]
Revenue	3.5	0.0
Operating Segments \| Infrastructure
Segment Reporting Information [Line Items]
Revenue	1,159.7	676.6
Operating Segments \| Spectrum
Segment Reporting Information [Line Items]
Revenue	42.0	40.3
Operating Segments \| Life Sciences
Segment Reporting Information [Line Items]
Revenue	$ 3.5	$ 0.0

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Revenue - Schedule of Accounts Receivable (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Total accounts receivables with customers	$ 236.5	$ 125.8
Infrastructure
Segment Reporting Information [Line Items]
Total accounts receivables with customers	226.8	118.5
Spectrum
Segment Reporting Information [Line Items]
Total accounts receivables with customers	9.4	7.3
Life Sciences
Segment Reporting Information [Line Items]
Total accounts receivables with customers	$ 0.3	$ 0.0

Revenue - Infrastructure Segment Disaggregation of Revenue (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Disaggregation of Revenue [Line Items]
Revenue	$ 1,205.2	$ 716.9
Total revenue	1,205.2	716.9
Infrastructure
Disaggregation of Revenue [Line Items]
Revenue	1,159.5	675.9
Other revenue	0.2	0.7
Total revenue	1,159.7	676.6
Infrastructure \| Commercial
Disaggregation of Revenue [Line Items]
Revenue	539.8	217.7
Infrastructure \| Industrial
Disaggregation of Revenue [Line Items]
Revenue	292.5	214.9
Infrastructure \| Convention
Disaggregation of Revenue [Line Items]
Revenue	85.8	10.6
Infrastructure \| Government
Disaggregation of Revenue [Line Items]
Revenue	68.0	65.0
Infrastructure \| Healthcare
Disaggregation of Revenue [Line Items]
Revenue	59.8	29.5
Infrastructure \| Transportation
Disaggregation of Revenue [Line Items]
Revenue	52.7	72.6
Infrastructure \| Leisure
Disaggregation of Revenue [Line Items]
Revenue	23.2	42.8
Infrastructure \| Other
Disaggregation of Revenue [Line Items]
Revenue	$ 37.7	$ 22.8

Revenue - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
Revenue - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Revenue from External Customer [Line Items]
Usual maximum percentage of payment withheld	10.00%
Retainage receivable, percent to be collected beyond one year	24.60%	1.00%
Accounts receivable, net	$ (247.1)	$ (134.7)
Contract assets	236.5	125.8
Contract liabilities	79.1	33.2
Retainage Receivable Immaterial Error Correction
Revenue from External Customer [Line Items]
Accounts receivable, net		50.0
Contract assets		31.0
Contract liabilities		19.0
Infrastructure
Revenue from External Customer [Line Items]
Contract assets	226.8	$ 118.5
Contract assets, increase due to new projects	122.4
Contract assets, reclassified to receivables	113.1
Contract liabilities, increase due to new projects	72.7
Contract liabilities, revenue recognized	65.4
Infrastructure \| Banker Steel Acquisition
Revenue from External Customer [Line Items]
Contract assets, increase due to contracts acquired in acquisition	22.7
Contract liabilities, increase due to projects acquired in acquisition	$ 38.6

Revenue - Infrastructure Segment Contract with Customer, Asset and Liability (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Contract assets	$ 118.6	$ 86.6
Contract liabilities	(79.1)	(33.2)
Infrastructure
Segment Reporting Information [Line Items]
Costs in Excess of Billings	68.3	55.6
Conditional Retainage, Assets	50.3	31.0
Contract assets	118.6	86.6
Billings in Excess of Cost	(137.6)	(52.2)
Conditional Retainage, Liability	58.5	19.0
Contract liabilities	$ (79.1)	$ (33.2)

Revenue - Life Sciences Segment Disaggregation of Revenue (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Revenue	$ 1,205.2	$ 716.9
Life Sciences
Segment Reporting Information [Line Items]
Revenue	3.5	0.0
Systems and consumables revenue \| Life Sciences
Segment Reporting Information [Line Items]
Revenue	$ 3.5	$ 0.0

Revenue - Spectrum Segment Disaggregation of Revenue (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Revenue	$ 1,205.2	$ 716.9
Spectrum
Segment Reporting Information [Line Items]
Revenue	42.0	40.3
Broadcast station \| Spectrum
Segment Reporting Information [Line Items]
Revenue	18.6	15.5
Network advertising \| Spectrum
Segment Reporting Information [Line Items]
Revenue	18.1	18.4
Network distribution \| Spectrum
Segment Reporting Information [Line Items]
Revenue	3.2	4.0
Other \| Spectrum
Segment Reporting Information [Line Items]
Revenue	$ 2.1	$ 2.4

Revenue - Remaining Unsatisfied Performance Obligations (Details) - Spectrum $ in Millions	Dec. 31, 2021 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 \| Within one year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations	$ 3.3
Remaining performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 \| Within five years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations	$ 1.4
Remaining performance obligation period	5 years
Network advertising \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations	$ 0.3
Broadcast station \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations	4.3
Other \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations	$ 0.1

Acquisitions, Dispositions, and Deconsolidations - Infrastructure Segment Narrative (Details)		12 Months Ended
	May 27, 2021 USD ($) company	Dec. 31, 2021 segment shares	Dec. 31, 2020
Business Acquisition [Line Items]
Number of reportable operating segments \| segment		3
DBMG
Business Acquisition [Line Items]
Issuance of common stock (in shares) \| shares		53,759
Parents interest, controlling (approximately)		91.00%	89.00%
Customer relationships and contracts
Business Acquisition [Line Items]
Weighted-average original useful life		11 years
Banker Steel Acquisition
Business Acquisition [Line Items]
Percentage of business acquired	100.00%
Gross consideration	$ 145,000,000
Long-term debt, less current portion	6,300,000
Cash acquired from acquisition	$ 25,000,000
Number of reportable operating segments \| company	6
Intangibles, net	$ 60,800,000
Goodwill, tax deductible amount	14,000,000
Banker Steel Acquisition \| Trade names
Business Acquisition [Line Items]
Indefinite-lived intangible assets	$ 7,400,000
Indefinite-lived intangible assets, useful life	15 years
Banker Steel Acquisition \| Customer relationships and contracts
Business Acquisition [Line Items]
Finite-lived intangibles	$ 33,800,000
Weighted-average original useful life	18 years
Banker Steel Acquisition \| Customer Contracts
Business Acquisition [Line Items]
Finite-lived intangibles	$ 17,600,000
Weighted-average original useful life	2 years
Banker Steel Acquisition \| Leasehold Interests
Business Acquisition [Line Items]
Finite-lived intangibles	$ 2,000,000
Banker Steel Acquisition \| Sellers' Notes
Business Acquisition [Line Items]
Face amount	49,600,000
Banker Steel Acquisition \| Revolving Credit Facility
Business Acquisition [Line Items]
Face amount	64,100,000
Banker Steel Acquisition \| Term Loan
Business Acquisition [Line Items]
Face amount	110,000,000
DBMG
Business Acquisition [Line Items]
Acquisition related costs	$ 2,000,000

Acquisitions, Dispositions, and Deconsolidations - Schedule of Purchase Price Allocations, Bank Steel Acquisition (Details) - USD ($)	May 27, 2021	Dec. 31, 2021	Dec. 31, 2020
Purchase Consideration at Fair Value
Goodwill		$ 127,400,000	$ 111,000,000.0
Banker Steel Acquisition
Purchase Consideration at Fair Value
Bankers Steel debt - assumed	$ 6,300,000
Cash	25,000,000
Gross consideration	145,000,000
Less: Seller transaction costs - assumed	400,000
Less: Bankers debt - assumed	6,300,000
Less: R&W premium paid by seller	500,000
Net consideration	137,800,000
Cash and cash equivalents	9,300,000
Accounts receivable, net	70,900,000
Contract assets	22,600,000
Assets held for sale	700,000
Inventory	5,700,000
Other current assets	1,700,000
Property, plant, and equipment, net	58,600,000
Other assets	40,100,000
Intangibles, net	60,800,000
Goodwill	16,700,000
Total assets to be acquired	287,100,000
Accounts Payable	39,100,000
Contract liabilities	38,600,000
Other current liabilities	31,100,000
Other liabilities	34,200,000
Long-term debt, less current portion	6,300,000
Total liabilities to be assumed	149,300,000
Total net assets acquired	137,800,000
Banker Steel Acquisition \| Sellers' Notes
Purchase Consideration at Fair Value
Face amount	49,600,000
Banker Steel Acquisition \| Term Loan
Purchase Consideration at Fair Value
Face amount	110,000,000
Banker Steel Acquisition \| Revolving Credit Facility
Purchase Consideration at Fair Value
Face amount	$ 64,100,000

Acquisitions, Dispositions, and Deconsolidations - Business Acquisition, Pro Forma Information (Details) - Banker Steel Acquisition - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Business Acquisition [Line Items]
Revenue	$ 265.9
Net income from operations	15.5
Net income attributable to INNOVATE	8.8
Revenue	1,402.7	$ 1,114.1
Income (loss) from operations	0.9	1.5
Net loss attributable to INNOVATE	$ (219.2)	$ (70.6)

Acquisitions, Dispositions, and Deconsolidations - Spectrum Segment and Other Segments (Details) $ in Thousands								3 Months Ended					12 Months Ended
	Jul. 01, 2021 USD ($)	Jan. 15, 2021 USD ($)	Oct. 31, 2020 USD ($)	May 12, 2020 USD ($)	Feb. 28, 2020 USD ($)	Jan. 30, 2020 USD ($)	Oct. 30, 2019 tranche	Sep. 30, 2021 USD ($)	Mar. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Jun. 30, 2020 USD ($)	Mar. 31, 2020 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Business Acquisition [Line Items]
Cash received from dispositions, net of cash disposed													$ 74,000	$ 147,400
Gain (loss) on sale of subsidiary														(44,100)
Loss on disposal of subsidiary													334,000	(30,300)
Gain on sale of equity method investments													0	71,200
Tax expense													1,800	9,500
Foreign currency translation adjustment, net of tax													(2,100)	(7,900)
Accumulated other comprehensive income										$ 396,900			6,400	396,900
Cash and cash equivalents										43,800			45,500	43,800	$ 23,300
Investments										55,400			56,000	55,400
Discontinued Operations
Business Acquisition [Line Items]
Gain (loss) on sale of subsidiary													$ (159,900)	$ (44,100)
GMSL
Business Acquisition [Line Items]
Ownership percentage before sale of stock						100.00%
Consideration to be received						$ 250,000
Potential earn-out, maximum						$ 12,500
Proceeds from divestiture of businesses					$ 144,000						$ 85,500
Cash received from dispositions, net of cash disposed					100,800
Consideration held in escrow for future losses payable					1,250
Consideration held of escrow for purchase price adjustment					1,910
Consideration paid on the earlier of December 31, 2020 or the date on which a cash collateralized bond in connection with Company's bonding facility is released					2,400
Gain (loss) on sale of subsidiary									$ 1,200	2,400		$ (39,300)
Loss on disposal of subsidiary												31,300
Actuarial losses on pension												17,200
Currency translation adjustments												$ 14,100
Gain on sale of equity method investments				$ 71,100
Tax expense				7,200
GMSL \| Discontinued Operations
Business Acquisition [Line Items]
Gain (loss) on sale of subsidiary					(39,300)				$ 1,200	$ 2,400
Loss on disposal of subsidiary					31,300
GMSL \| Put option
Business Acquisition [Line Items]
Gain on sale of equity method investments				$ 11,300
GMSL \| Non- controlling Interest
Business Acquisition [Line Items]
Proceeds from divestiture of businesses											17,500
Cash divested from deconsolidation					36,800
GMSL \| Noncontrolling Interest Redeemable
Business Acquisition [Line Items]
Proceeds from divestiture of businesses											$ 2,100
Cash divested from deconsolidation					$ 5,500
ICS \| Discontinued Operations
Business Acquisition [Line Items]
Gain (loss) on sale of subsidiary			$ 900
Foreign currency translation adjustment, net of tax			$ 8,200
Beyond6
Business Acquisition [Line Items]
Consideration to be received		$ 106,500
Proceeds from divestiture of businesses		70,000
Beyond6 \| Discontinued Operations
Business Acquisition [Line Items]
Gain (loss) on sale of subsidiary		$ 39,200						$ 500
CIG \| Discontinued Operations
Business Acquisition [Line Items]
Gain (loss) on sale of subsidiary	$ (200,800)
Beneficial ownership interest													6.60%
CIG \| Discontinued Operations \| Insurance
Business Acquisition [Line Items]
Segment book value	544,000
Accumulated other comprehensive income	344,000
Cash and cash equivalents	62,500
Investments	$ 26,700
DTV America
Business Acquisition [Line Items]
Parents interest, controlling (approximately)										60.00%			77.00%	60.00%
Minority Holders
Business Acquisition [Line Items]
Percentage of proxy and voting rights from minority holders										10.00%			10.00%	10.00%
New Saxon 2019 Limited
Business Acquisition [Line Items]
Parents interest, controlling (approximately)				19.00%		73.00%
HMN
Business Acquisition [Line Items]
Ownership percentage before sale of stock							49.00%
GMSL
Business Acquisition [Line Items]
Parents interest, controlling (approximately)				30.00%			49.00%						73.00%
Number of payment tranches \| tranche							2

Accounts Receivable, net (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Receivables [Abstract]
Contracts in progress	$ 226.8	$ 118.6
Unbilled retentions	0.4	0.3
Trade receivables	9.9	7.5
Other receivables	10.6	8.9
Allowance for doubtful accounts	(0.6)	(0.6)
Total	$ 247.1	$ 134.7

Property, Plant, and Equipment, net - Summary of Property, Plant, and Equipment, net (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 265.0	$ 186.3
Less: Accumulated depreciation	95.1	73.5
Property, plant and equipment, net	169.9	112.8
Equipment, furniture and fixtures, and software
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	180.7	113.7
Building and leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	43.0	41.0
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	24.1	24.1
Construction in progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	8.9	3.1
Plant and transportation equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 8.3	$ 4.4

Property, Plant, and Equipment, net - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 25.0	$ 20.8
Net book value of equipment under capital leases	0.2	0.9
Operating Segments
Property, Plant and Equipment [Line Items]
Depreciation expense with cost of revenue	$ 12.2	$ 9.1

Goodwill and Intangibles, net - Changes in the Carrying Amount of Goodwill (Details) $ in Millions	12 Months Ended
	Dec. 31, 2021 USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 111.0
Acquisitions	16.7
Translation	(0.3)
Ending balance	127.4
Infrastructure
Goodwill [Roll Forward]
Beginning balance	89.6
Acquisitions	16.7
Translation	(0.3)
Ending balance	106.0
Spectrum
Goodwill [Roll Forward]
Beginning balance	21.4
Acquisitions	0.0
Translation	0.0
Ending balance	$ 21.4

Goodwill and Intangibles, net - Indefinite-lived Intangible Assets (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Acquired Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	$ 106.5	$ 113.0
FCC licenses
Acquired Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	$ 106.5	$ 113.0

Goodwill and Intangibles, net - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Weighted average period until next FCC license renewal	3 years	2 years 4 months 24 days
Amortization expense	$ 12.6	$ 6.0
FCC licenses
Finite-Lived Intangible Assets [Line Items]
Definite-lived intangible assets, period decrease	7.6
FCC licenses
Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets, period decrease	6.5
Intangible assets, impairment charges	$ 0.7	$ 13.5

Goodwill and Intangibles, net - Definite Lived Intangible Assets (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 134.2	$ 80.1
Accumulated Amortization	(32.3)	(21.0)
Net	$ 101.9	59.1
Trade names
Finite-Lived Intangible Assets [Line Items]
Weighted-Average Original Useful Life	14 years
Gross Carrying Amount	$ 25.4	18.0
Accumulated Amortization	(6.3)	(4.6)
Net	$ 19.1	13.4
Customer relationships and contracts
Finite-Lived Intangible Assets [Line Items]
Weighted-Average Original Useful Life	11 years
Gross Carrying Amount	$ 87.7	36.4
Accumulated Amortization	(21.6)	(12.1)
Net	$ 66.1	24.3
Channel sharing arrangements
Finite-Lived Intangible Assets [Line Items]
Weighted-Average Original Useful Life	35 years
Gross Carrying Amount	$ 12.6	20.2
Accumulated Amortization	(1.1)	(1.6)
Net	$ 11.5	18.6
Other
Finite-Lived Intangible Assets [Line Items]
Weighted-Average Original Useful Life	10 years
Gross Carrying Amount	$ 8.5	5.5
Accumulated Amortization	(3.3)	(2.7)
Net	$ 5.2	$ 2.8

Goodwill and Intangibles, net - Estimated Amortization Expense (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
2022	$ 17.2
2023	11.4
2024	8.0
2026	7.3
2026	6.8
Thereafter	51.2
Net	$ 101.9	$ 59.1

Debt Obligations - Schedule of Debt (Details) - USD ($) $ in Millions		12 Months Ended
	Feb. 23, 2021	Dec. 31, 2021	Dec. 31, 2020	Feb. 01, 2021	Oct. 31, 2020	Jun. 30, 2020	Jun. 01, 2020	Mar. 31, 2020	Nov. 20, 2018
Debt Instrument [Line Items]
Obligations under finance leases		$ 0.1	$ 0.8
Total aggregate finance lease and debt payments		630.8	576.6
Unamortized issuance discount, issuance premium, and deferred financing costs		(4.5)	(15.1)
Less: current portion of debt obligations		(69.5)	(433.6)
Debt obligations		556.8	127.9
11.50% Senior Secured Notes, due 2021
Debt Instrument [Line Items]
Outstanding debt					$ 2.1	$ 50.6		$ 76.9
8.50% Senior Secured Notes, due 2026
Debt Instrument [Line Items]
Interest rate				100.00%
7.50% Convertible Senior Notes, due 2022
Debt Instrument [Line Items]
Interest rate							100.00%		100.00%
7.50% Convertible Senior Notes, due 2026
Debt Instrument [Line Items]
Interest rate				100.00%
Infrastructure
Debt Instrument [Line Items]
Obligations under finance leases		0.1	0.2
Infrastructure \| LIBOR plus 5.85% Note, due 2023 \| Real Estate Term Advance
Debt Instrument [Line Items]
Outstanding debt		0.0	71.6
Infrastructure \| LIBOR plus 1.50% Line of Credit \| Real Estate Term Advance
Debt Instrument [Line Items]
Outstanding debt		0.0	38.7
Infrastructure \| 3.25% Note due 2026 \| Real Estate Term Advance
Debt Instrument [Line Items]
Outstanding debt		$ 107.2	0.0
Infrastructure \| 3.25% Note due 2026 \| Real Estate Term Advance \| Revolving Credit Facility
Debt Instrument [Line Items]
Basis spread on variable rate		3.25%
Infrastructure \| PRIME minus 1.10% Line of Credit \| Real Estate Term Advance
Debt Instrument [Line Items]
Outstanding debt		$ 30.4	0.0
Infrastructure \| 4.00% Note due 2024 \| Real Estate Term Advance
Debt Instrument [Line Items]
Interest rate		4.00%
Outstanding debt		$ 25.0	0.0
Infrastructure \| 8.00% Note due 2024 \| Real Estate Term Advance
Debt Instrument [Line Items]
Interest rate		8.00%
Outstanding debt		$ 19.6	0.0
Infrastructure \| 11.00% Note due 2024 \| Real Estate Term Advance
Debt Instrument [Line Items]
Interest rate		11.00%
Outstanding debt		$ 6.3	$ 0.0
Infrastructure \| LIBOR \| LIBOR plus 5.85% Note, due 2023
Debt Instrument [Line Items]
Basis spread on variable rate			5.85%
Infrastructure \| LIBOR \| LIBOR plus 1.50% Line of Credit \| Real Estate Term Advance \| Revolving Credit Facility
Debt Instrument [Line Items]
Basis spread on variable rate			1.50%
Infrastructure \| Prime Rate \| PRIME minus 1.10% Line of Credit \| Real Estate Term Advance \| Revolving Credit Facility
Debt Instrument [Line Items]
Basis spread on variable rate		1.10%
Spectrum
Debt Instrument [Line Items]
Obligations under finance leases		$ 0.0	$ 0.6
Spectrum \| 8.50% Note due 2021
Debt Instrument [Line Items]
Interest rate			8.50%
Outstanding debt		0.0	$ 19.3
Spectrum \| 10.50% Note due 2021
Debt Instrument [Line Items]
Interest rate			10.50%
Outstanding debt		$ 0.0	$ 32.9
Spectrum \| 8.50% Note due 2022
Debt Instrument [Line Items]
Interest rate		8.50%
Outstanding debt		$ 19.3	0.0
Spectrum \| 10.50% Note due 2022
Debt Instrument [Line Items]
Interest rate		10.50%
Outstanding debt		$ 32.9	0.0
Spectrum \| Other, various maturity dates
Debt Instrument [Line Items]
Outstanding debt		0.0	$ 2.9
Non-Operating Corporate \| 11.50% Senior Secured Notes, due 2021
Debt Instrument [Line Items]
Interest rate			11.50%
Outstanding debt		$ 0.0	$ 340.4
Non-Operating Corporate \| 8.50% Senior Secured Notes, due 2026
Debt Instrument [Line Items]
Interest rate		8.50%		8.50%
Outstanding debt		$ 330.0	0.0
Non-Operating Corporate \| 7.50% Convertible Senior Notes, due 2022
Debt Instrument [Line Items]
Interest rate		7.50%		7.50%			7.50%
Outstanding debt		$ 3.2	55.0
Non-Operating Corporate \| 7.50% Convertible Senior Notes, due 2026
Debt Instrument [Line Items]
Interest rate		7.50%		7.50%
Outstanding debt		$ 51.8	0.0
Non-Operating Corporate \| LIBOR plus 5.75% Line of Credit
Debt Instrument [Line Items]
Basis spread on variable rate	6.75%	5.75%
Outstanding debt		$ 5.0	$ 15.0

Debt Obligations - Schedule of Aggregate Debt Maturities (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Finance Leases
2022	$ 0.1
2023	0.0
2024	0.0
2025	0.0
2026	0.0
Thereafter	0.0
Total minimum principal and interest payments	0.1
Less: Amount representing interest	0.0
Total lease liability balance	0.1	$ 0.8
Debt
2022	115.7
2023	56.4
2024	107.5
2025	41.3
2026	487.3
Thereafter	0.0
Total minimum principal and interest payments	808.2
Less: Amount representing interest	(177.5)
Total aggregate finance lease and debt payments	630.7
Total
2022	115.8
2023	56.4
2024	107.5
2025	41.3
2026	487.3
Thereafter	0.0
Total aggregate finance lease and debt payments	808.3
Less: Amount representing interest	(177.5)
Total aggregate finance lease and debt payments	$ 630.8	$ 576.6

Debt Obligations - Narrative (Details)									1 Months Ended							12 Months Ended
Debt Obligations - Narrative (Details)	Oct. 26, 2021 USD ($)	Oct. 21, 2021 USD ($)	Aug. 30, 2021 USD ($)	Feb. 23, 2021 USD ($)	Feb. 01, 2021 USD ($) $ / shares	Jun. 01, 2020 $ / shares	Oct. 24, 2019 USD ($) $ / shares shares	Nov. 20, 2018 USD ($) $ / shares	May 31, 2021 USD ($)	Dec. 31, 2020 USD ($) $ / shares	Nov. 30, 2020 USD ($)	Oct. 31, 2020 USD ($)	Sep. 30, 2020 USD ($)	Jun. 30, 2020 USD ($)	Mar. 31, 2020 USD ($)	Dec. 31, 2021 USD ($) $ / shares	Dec. 31, 2020 USD ($) $ / shares	Aug. 31, 2020	Feb. 29, 2020 USD ($)
Debt Instrument [Line Items]
Loss on extinguishment of debt																$ 12,500,000	$ 9,400,000
Number of warrants outstanding (in shares) \| shares							50,000
Exercise price of warrants (in usd per share) \| $ / shares							$ 176.4
Value of warrants issued							$ 8,800,000
Term of warrants outstanding							5 years
Repayments of long-term debt																458,100,000	181,900,000
Amortization of discount (premium) on investments, net																0	(100,000)
Less: Preferred dividends and deemed dividends from conversions																2,200,000	3,600,000
Non-Voting Stock
Debt Instrument [Line Items]
Ownership percentage					100.00%
Voting Stock
Debt Instrument [Line Items]
Ownership percentage					65.00%
LIBOR plus 1.50% Line of Credit \| Real Estate Term Advance \| Infrastructure
Debt Instrument [Line Items]
Outstanding debt										$ 38,700,000						0	$ 38,700,000
Senior Notes Due October2020 8.5% \| Spectrum
Debt Instrument [Line Items]
Short-term loan							$ 78,700,000
Debt instrument, term							364 days
Tranche A Senior Notes Due October2020 \| Spectrum
Debt Instrument [Line Items]
Face amount													$ 43,300,000						$ 39,300,000
Interest rate							8.50%			8.50%	8.50%		8.50%				8.50%	8.50%	8.50%
Short-term loan							$ 36,200,000
Proceeds from issuance of long-term debt													$ 4,000,000
Repayments of long-term debt										$ 21,000,000	$ 2,900,000
Tranche B Senior Notes Due October2020 \| Spectrum
Debt Instrument [Line Items]
Interest rate							10.50%			10.50%							10.50%	10.50%
Short-term loan							$ 42,500,000
Repayments of long-term debt										$ 9,600,000
Other, various maturity dates \| Spectrum
Debt Instrument [Line Items]
Repayments of long-term debt											$ 3,000,000
Outstanding debt										2,900,000						$ 0	$ 2,900,000
DTV America’s Secured Notes
Debt Instrument [Line Items]
Repurchased outstanding notes payable		$ 6,200,000
DTV America’s Secured Notes \| Sellers' Notes
Debt Instrument [Line Items]
Repurchased outstanding notes payable			$ 1,000,000
Term extension period			60 days
Senior Secured Notes Due November 30, 2022 \| Senior Notes
Debt Instrument [Line Items]
Face amount		$ 52,200,000
DTV America’s Convertible Promissory Notes \| Convertible Notes Payable
Debt Instrument [Line Items]
Repurchased outstanding notes payable	$ 700,000
DTV America's Total Debt
Debt Instrument [Line Items]
Loss on extinguishment of debt	$ 1,000,000
8.50% Senior Secured Notes, due 2026
Debt Instrument [Line Items]
Interest rate					100.00%
Interest rate, effective percentage					9.26%
Deferred financing cost					$ 2,700,000
8.50% Senior Secured Notes, due 2026 \| Non-Operating Corporate
Debt Instrument [Line Items]
Interest rate					8.50%											8.50%
Repayments of long-term debt					$ 330,000,000
Outstanding debt										0						$ 330,000,000.0	0
7.50% Convertible Senior Notes, due 2022
Debt Instrument [Line Items]
Interest rate						100.00%		100.00%
Interest rate, effective percentage								17.60%
Amortization of discount (premium) on investments, net								$ (12,600,000)
Deferred financing cost								2,000,000
Conversion price (in usd per share) \| $ / shares						$ 4.27
Embedded conversion feature, fair value								$ 12,500,000									5,800,000
Redemption threshold percentage						130.00%
Trading days effective for redemption						20 days
Consecutive trading days effective for redemption						30 days
Days prior to redemption notice						5 days
7.50% Convertible Senior Notes, due 2022 \| Non-Operating Corporate
Debt Instrument [Line Items]
Face amount					$ 51,800,000
Interest rate					7.50%	7.50%										7.50%
Loss on extinguishment of debt					$ 5,500,000
Repayments of long-term debt					55,000,000
Amortization of discount (premium) on investments, net					5,300,000
Extinguishment of the bifurcated conversion option equity					7,700,000
Outstanding debt										55,000,000.0						$ 3,200,000	55,000,000.0
7.50% Convertible Senior Notes, due 2022 \| Convertible Debt
Debt Instrument [Line Items]
Amortization of discount (premium) on investments, net																600,000	4,100,000
Debt discount										6,000,000						100,000	6,000,000
Convertible notes, conversion ratio								0.2342971
Conversion price (in usd per share) \| $ / shares								$ 4.27
Less: Preferred dividends and deemed dividends from conversions								$ 3,800,000
Long-term debt, gross										$ 48,100,000						$ 3,100,000	$ 48,100,000
Share price (in usd per share) \| $ / shares										$ 3.26						$ 3.71	$ 3.26
Interest cost relating to contractual interest coupon																$ 600,000	$ 4,100,000
11.50% Senior Secured Notes, due 2021
Debt Instrument [Line Items]
Interest rate, effective percentage								13.20%
Loss on extinguishment of debt												$ 100,000		$ 3,400,000	$ 5,400,000
Outstanding debt												$ 2,100,000		$ 50,600,000	$ 76,900,000
Convertible notes, conversion ratio												1.045		1.045	1.045
11.50% Senior Secured Notes, due 2021 \| Non-Operating Corporate
Debt Instrument [Line Items]
Interest rate										11.50%							11.50%
Loss on extinguishment of debt					$ 4,500,000
Outstanding debt										$ 340,400,000						0	$ 340,400,000
Secured Indenture
Debt Instrument [Line Items]
Interest rate								98.75%
Debt discount								$ 5,900,000
Redemption price, percentage					100.00%	100.00%
7.50% Convertible Senior Notes, due 2026
Debt Instrument [Line Items]
Face amount					$ 12,300,000
Interest rate					100.00%
Interest rate, effective percentage					3.21%
Amortization of discount (premium) on investments, net																(1,700,000)
Convertible notes, conversion ratio					0.2342971
Deferred financing cost					$ 1,100,000
Conversion price (in usd per share) \| $ / shares					$ 4.27
Long-term debt, gross																$ 61,200,000
Share price (in usd per share) \| $ / shares																$ 3.71
Interest cost relating to contractual interest coupon																$ 3,600,000
Unamortized premium																$ 10,400,000
Redemption threshold percentage					130.00%
Trading days effective for redemption					20 days
Consecutive trading days effective for redemption					30 days
Days prior to redemption notice					5 days
7.50% Convertible Senior Notes, due 2026 \| Non-Operating Corporate
Debt Instrument [Line Items]
Interest rate					7.50%											7.50%
Amortization of discount (premium) on investments, net					$ (12,300,000)
Outstanding debt										0						$ 51,800,000	0
LIBOR plus 5.75% Line of Credit \| Non-Operating Corporate
Debt Instrument [Line Items]
Basis spread on variable rate				6.75%												5.75%
Outstanding debt										$ 15,000,000.0						$ 5,000,000.0	$ 15,000,000.0
Revolving Credit Facility \| Revolving Credit Agreement \| Line of Credit
Debt Instrument [Line Items]
Face amount				$ 20,000,000					$ 5,000,000
Revolving Credit Facility \| LIBOR \| LIBOR plus 1.50% Line of Credit \| Real Estate Term Advance \| Infrastructure
Debt Instrument [Line Items]
Basis spread on variable rate																	1.50%
Revolving Credit Facility \| UMB Bank
Debt Instrument [Line Items]
Face amount									$ 110,000,000
Interest rate									3.25%
Interest rate, effective percentage									3.25%
Revolving Credit Facility \| UMB Bank \| Prime Rate
Debt Instrument [Line Items]
Basis spread on variable rate									1.10%
Revolving Credit Facility \| TCW Loan
Debt Instrument [Line Items]
Loss on extinguishment of debt									$ 1,500,000
Term Loan \| UMB Bank
Debt Instrument [Line Items]
Face amount									$ 110,000,000
Minimum
Debt Instrument [Line Items]
Finance leases rate																2.00%
Minimum \| LIBOR plus 5.75% Line of Credit \| Non-Operating Corporate
Debt Instrument [Line Items]
Basis spread on variable rate				5.75%
Maximum
Debt Instrument [Line Items]
Finance leases rate																10.00%
Maximum \| LIBOR plus 5.75% Line of Credit \| Non-Operating Corporate
Debt Instrument [Line Items]
Basis spread on variable rate				6.75%

Supplementary Financial Information - Contract in Progress (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Offsetting [Abstract]
Costs incurred on contracts in progress	$ 2,161.5	$ 752.9
Estimated earnings	316.4	139.0
Contract revenue earned on uncompleted contracts	2,477.9	891.9
Less: progress billings	2,438.4	838.5
Net of cost earned on uncompleted contracts	39.5	53.4
Contract assets	118.6	86.6
Contract liabilities	(79.1)	(33.2)
Contract with customer, net asset	$ 39.5	$ 53.4

Supplementary Financial Information - Inventory (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Offsetting [Abstract]
Raw materials and consumables	$ 14.3	$ 8.7
Work in process	1.2	0.0
Finished goods	1.5	1.2
Total inventory	$ 17.0	$ 9.9

Supplementary Financial Information - Schedule of Other Invested Assets (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Summary of Investment Holdings [Line Items]
Measurement Alternative	$ 11.8	$ 11.8
Equity Method	44.2	43.6
Total	56.0	55.4
Common stock
Summary of Investment Holdings [Line Items]
Measurement Alternative	0.0	0.0
Equity Method	2.1	2.5
Total	2.1	2.5
Preferred stock
Summary of Investment Holdings [Line Items]
Measurement Alternative	0.0	0.0
Equity Method	7.5	15.4
Total	7.5	15.4
Fixed maturities
Summary of Investment Holdings [Line Items]
Measurement Alternative	0.5	0.5
Equity Method	0.0	0.0
Total	0.5	0.5
Put option
Summary of Investment Holdings [Line Items]
Measurement Alternative	11.3	11.3
Equity Method	0.0	0.0
Total	11.3	11.3
Equity method securities
Summary of Investment Holdings [Line Items]
Measurement Alternative	0.0	0.0
Equity Method	34.6	25.7
Total	$ 34.6	$ 25.7

Supplementary Financial Information - Schedule of Financial Instruments Measured on Not Measured at Fair Value (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Liabilities
Unamortized issuance discount, issuance premium, and deferred financing costs	$ (4.5)	$ (15.1)
Nonrecurring \| Level 1
Assets
Other invested assets	0.0	0.0
Total assets not accounted for at fair value	0.0	0.0
Liabilities
Debt obligations	0.0	0.0
Total liabilities not accounted for at fair value	0.0	0.0
Nonrecurring \| Level 2
Assets
Other invested assets	0.0	0.0
Total assets not accounted for at fair value	0.0	0.0
Liabilities
Debt obligations	648.2	579.2
Total liabilities not accounted for at fair value	648.2	579.2
Nonrecurring \| Level 3
Assets
Other invested assets	11.3	11.3
Total assets not accounted for at fair value	11.3	11.3
Liabilities
Debt obligations	0.0	0.0
Total liabilities not accounted for at fair value	0.0	0.0
Carrying Value \| Nonrecurring
Assets
Other invested assets	11.3	11.3
Total assets not accounted for at fair value	11.3	11.3
Liabilities
Debt obligations	626.3	560.7
Total liabilities not accounted for at fair value	626.3	560.7
Estimated Fair Value \| Nonrecurring
Assets
Other invested assets	11.3	11.3
Total assets not accounted for at fair value	11.3	11.3
Liabilities
Debt obligations	648.2	579.2
Total liabilities not accounted for at fair value	$ 648.2	$ 579.2

Supplementary Financial Information - Equity Method Investments (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Schedule of Equity Method Investments [Line Items]
Loss from equity investees	$ 2.8	$ 3.4
Assets	1,080.6	6,723.8
Liabilities	1,068.7	6,107.9
Total stockholders’ (deficit) equity	(56.2)	600.2	$ 443.6
Total revenue	1,205.2	716.9
Gross profit	183.7	128.4
Income from continuing operations	(78.5)	(59.6)
Net loss attributable to INNOVATE Corp.	(227.5)	(92.0)
Equity Method Investments
Schedule of Equity Method Investments [Line Items]
Assets	604.5	524.2
Liabilities	481.5	405.9
Total stockholders’ (deficit) equity	123.0	118.3
Total revenue	624.1	468.2
Gross profit	95.5	82.7
Income from continuing operations	11.5	11.1
Net loss attributable to INNOVATE Corp.	$ 6.4	$ 6.8

Supplementary Financial Information - Schedule of Other Non-Current Assets (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Offsetting [Abstract]
Right of use asset	$ 69.6	$ 39.8
Other	3.7	2.4
Total other non-current assets	$ 73.3	$ 42.2

Supplementary Financial Information - Accrued Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Offsetting [Abstract]
Accrued expenses and other current liabilities	$ 24.5	$ 27.9
Accrued payroll and employee benefits	38.9	34.7
Accrued interest	29.6	13.9
Accrued income taxes	0.4	0.6
Total accrued liabilities	$ 93.4	$ 77.1

Supplementary Financial Information - Other Non-Current Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Offsetting [Abstract]
Lease liability, net of current portion	$ 58.5	$ 31.6
Other	4.8	8.2
Total other non-current liabilities	$ 63.3	$ 39.8

Leases - Right-of-use Assets and Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2021	Nov. 30, 2021	Dec. 31, 2020
Right-of-use assets:
Operating lease (Other non-current assets)	$ 69.6		$ 39.8
Finance lease (Property, plant and equipment, net)	0.2		0.9
Total right-of-use assets	69.8		40.7
Lease liabilities:
Current portion of operating lease (Other current liabilities)	15.5		11.2
Non-current portion of operating lease (Other non-current liabilities)	58.5		31.6
Finance lease (Debt obligations)	0.1		0.8
Total lease liabilities	$ 74.1		$ 43.6
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other assets	Other assets	Other assets
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Property, plant and equipment, net		Property, plant and equipment, net
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Other current liabilities		Other current liabilities
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other liabilities	Other liabilities	Other liabilities
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Debt obligations		Debt obligations

Leases - Narrative (Details)	1 Months Ended		12 Months Ended
Leases - Narrative (Details)	Dec. 31, 2021 USD ($) ft²	Nov. 30, 2021 USD ($) ft²	Dec. 31, 2021 USD ($) ft²	Dec. 31, 2020 USD ($)
Lessee, Lease, Description [Line Items]
Impairment of the right-of-use asset			$ 2,100,000
Short-term lease cost			19,200,000	$ 18,000,000
Future short-term lease cost	$ 9,900,000		9,900,000
Monthly lease payments			21,900,000	13,900,000
Right of use asset	69,600,000		69,600,000	39,800,000
Non-current portion of operating lease (Other non-current liabilities)	$ 58,500,000		$ 58,500,000	$ 31,600,000
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other assets	Other assets	Other assets	Other assets
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other liabilities	Other liabilities	Other liabilities	Other liabilities
Total lease liability balance	$ 74,000,000.0		$ 74,000,000.0
West Palm Beach, Florida, Lease Commencing November 2023
Lessee, Lease, Description [Line Items]
Lease not yet commenced, term of contract		10 years
Monthly lease payments		$ 200,000
Maintenance charges		$ 600,000
Percentage of annual adjustment in lease payment and charges		3.00%
Area of land leased, not yet commenced \| ft²		20,950
Lease not yet commenced allowance receivable		$ 2,100,000
West Palm Beach, Florida, Lease Commencing November 15, 2021
Lessee, Lease, Description [Line Items]
Lease term		3 years
Monthly lease payments		$ 12,500
Lessee, escalation percentage		3.00%
Area of office space leased \| ft²		2,723
Right of use asset		$ 400,000
Non-current portion of operating lease (Other non-current liabilities)		$ 400,000
West Palm Beach, Florida, Lease Commencing Fourth Quarter 2023
Lessee, Lease, Description [Line Items]
Lease not yet commenced, term of contract	5 years		5 years
Monthly lease payments	$ 140,000
Percentage of annual adjustment in lease payment and charges	3.00%
Area of land leased, not yet commenced \| ft²	15,786		15,786
Lease not yet commenced, option to extend term	five years

Leases - Lease Cost (Details) - USD ($) $ in Millions	12 Months Ended
Leases - Lease Cost (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Finance lease cost:
Amortization of right-of-use assets	$ 0.8	$ 0.9
Interest on lease liabilities	0.0	0.1
Net finance lease cost	0.8	1.0
Operating lease cost	21.7	14.0
Variable lease cost	0.5	0.2
Sublease income	(0.5)	0.0
Total lease cost	$ 22.5	$ 15.2

Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$ 0.0	$ 0.1
Financing cash flows from finance leases	0.7	0.7
Operating cash flows from operating leases	21.9	13.9
Right-of-use assets obtained in exchange for new lease liabilities
Finance leases	0.1	0.1
Operating leases	$ 48.3	$ 15.6

Leases - Weighted Average Remaining Lease Term and Discount Rate (Details)	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Weighted-average remaining lease term (years) - operating lease	7 years 6 months	4 years
Weighted-average remaining lease term (years) - finance lease	2 years 3 months 18 days	1 year 1 month 6 days
Weighted-average discount rate - operating lease	5.40%	6.30%
Weighted-average discount rate - finance lease	4.20%	9.00%

Leases - Future Payments of Lease Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Operating Leases
2022	$ 18.7
2023	16.4
2024	11.6
2025	8.3
2026	5.5
Thereafter	30.7
Total future lease payments	91.2
Less: Present values	(17.2)
Total lease liability balance	74.0
Finance Leases
2022	0.1
2023	0.0
2024	0.0
2025	0.0
2026	0.0
Thereafter	0.0
Total minimum principal and interest payments	0.1
Less: Present values	0.0
Total lease liability balance	$ 0.1	$ 0.8

Income Taxes - Provisions (Benefits) for Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Current: Federal	$ 0.1	$ (10.6)
State	1.8	1.5
Foreign	1.8	9.5
Subtotal Current	3.7	0.4
Deferred: Federal	0.8	3.1
State	0.2	0.1
Foreign	0.9	3.4
Subtotal Deferred	1.9	6.6
Income tax expense	$ 5.6	$ 7.0

Income Taxes - Components of Income from Continuing Operations Before Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
US	$ (89.7)	$ (125.0)
Foreign	9.0	78.3
Loss from continuing operations before income taxes	$ (80.7)	$ (46.7)

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

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