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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________________________________________________________________________________________________________ 
Form 10-K

________________________________________ 
(Mark One)
þANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 20172022
OR
¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO
Commission File Number 001-33520

________________________________________ 
COMSCORE, INC.
(Exact Name of Registrant as Specified in its Charter)
Delaware54-1955550
(State or Other Jurisdiction of
Incorporation or Organization)
(I.R.S. Employer
Identification Number)
11950 Democracy Drive, Suite 600
Reston, Virginia 20190
(Address of Principal Executive Offices)
(703) 438-2000
(Registrant’sRegistrant's Telephone Number, Including Area Code)
Securities registered pursuant to Section 12(b) of the Act:Act:
None
Title of Each ClassTrading SymbolName of Each Exchange on Which Registered
Common Stock, par value $0.001 per shareSCORNASDAQ Global Select Market
Securities registered pursuant to Section 12(g) of the Act:Act: None.
Title of Each Class ___________________________________________________________________
Common Stock, par value $0.001 per share
________________________________________ 
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.  Yes ¨  No þ
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.  Yes   No 
Yes ¨  No þ
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes   No 
Yes ¨    No þ
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  
Yes ¨  No þ
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  ¨


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Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large"large accelerated filer,” “accelerated filer”" "accelerated filer", “smaller"smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filerþAccelerated filer¨
Non-accelerated filer
o (Do not check if a smaller reporting company)
Smaller reporting company¨
Emerging growth company¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to § 240.10D-1(b). ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ¨   No þ
The aggregate market value of the registrant’sregistrant's voting and non-voting common equity held by non-affiliates of the registrant, as of June 30, 2017,2022, the last business day of the registrant’sregistrant's most recently completed second fiscal quarter, was approximately $1,032.3$160.0 million (based on the last reported bidclosing price of the registrant’sregistrant's common stock on the OTC Pink TierNasdaq Global Select Market on that date). Solely for purposes of this disclosure, shares of the registrant’sregistrant's common stock held by executive officers and directors and each person who owned 10% or more of the outstanding common stock of the registrant have been excluded in that such persons may be deemed to be affiliates. This determination of affiliate status is not necessarily a conclusive determination for other purposes.
Indicate the number of shares outstanding of each of the registrant’sregistrant's classes of common stock, as of the latest practicable date: As of February 28, 2018,24, 2023, there were 54,689,04792,187,156 shares of the registrant’sregistrant's common stock outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Specified portions of the registrant’sregistrant's Proxy Statement with respect to its 2018 annual meeting2023 Annual Meeting of stockholders,Stockholders, to be filed with the Securities and Exchange Commission no later than 120 days following the registrant’send of the registrant's fiscal year ended December 31, 2017,2022, are incorporated by reference in Part III of this Annual Report on Form 10-K.




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COMSCORE, INC.
ANNUAL REPORT ON FORM 10-K
FOR THE PERIOD ENDED DECEMBER 31, 20172022
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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
ThisWe may make certain statements, including in this Annual Report on Form 10-K, or 10-K, including the information contained in Item 7,“Management’s "Management's Discussion and Analysis of Financial Condition and Results of Operations”Operations" of this 10-K, and the information incorporated by reference in this 10-K, containthat constitute forward-looking statements within the meaning of federal and state securities laws. Forward-looking statements are all statements other than statements of historical fact. We attempt whenever possible, to identify these forward-looking statements by words such as may,” “will,” “should,” “could,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “intend,” “potential,” “continue,” “seek” or the negative of those words"may," "will," "should," "could," "might," "expect," "plan," "anticipate," "believe," "estimate," "target," "goal," "predict," "intend," "potential," "continue," "seek" and other comparable words. Similarly, statements that describe our business strategy, goals, prospects, opportunities, outlook, objectives, plans or intentions are also forward-looking statements. These statements may relate to, but are not limited to, expectations of future operating results or financial performance,performance; expectations regarding the impact on our business of the coronavirus ("COVID-19") pandemic and global measures to mitigate the spread of the virus; expectations regarding our restructuring activities and cost-reduction initiatives; macroeconomic trends that we expect may influence our business, including any recession or changes in consumer behavior resulting from the COVID-19 pandemic or other factors; plans for financing and capital expenditures,expenditures; expectations regarding liquidity, customer payments and compliance with debt and financing covenants and other payment obligations; expectations regarding enhanced commercial relationships and the development and introduction of new products,products; potential limitations on our net operating loss carryforwards and other tax assets; regulatory compliance and expected changes in the regulatory or privacy landscape affecting our business, planned remediation activities, plans for relisting our common stock,business; expected impact of litigation and litigation settlements, including the expected contribution by insurance providers,regulatory proceedings; and plans for growth and future operations, effects of acquisitions, divestitures and partnerships, as well as assumptions relating to the foregoing.
Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. These statements are based on current expectations and assumptions as of the date of this 10-K regarding future events and business performance and involve known and unknown risks, uncertainties and other factors that may cause actual events or results to be materially different from any future events or results expressed or implied by these statements. These factors include those set forth in the following discussion and within Item 1A, “Risk Factors”"Risk Factors" of this 10-K and elsewhere within this report.report, and those identified in other documents that we file from time to time with the U.S. Securities and Exchange Commission, or SEC.
We believe that it is important to communicate our future expectations to our investors. However, there may be events in the future that we are not able to accurately predict or control and that may cause our actual results to differ materially from the expectations we describe in our forward-looking statements. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this 10-K. You should carefully review the risk factors described in this 10-K and in other documents that we file from time to time with the U.S. Securities and Exchange Commission, or "SEC".SEC. Except as required by applicable law, including the rules and regulations of the SEC, we do not planundertake no obligation, and expressly disclaim any duty, to publicly update or revise any forward-looking statements, whether as a result of any new information, future events or otherwise, other than through the filing of periodic reports in accordance with the Securities Exchange Act of 1934, as amended.otherwise. Although we believe that the expectations reflected in the forward-looking statements are reasonable we cannot guaranteeas of the date of this 10-K, our statements are not guarantees of future results, levels of activity, performance, or achievements.achievements, and actual outcomes and results may differ materially from those expressed in, or implied by, any of our statements.













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EXPLANATORY NOTEPART I

ITEM 1.BUSINESS
Unless the context requires otherwise, references in this 10-K to “comScore,” “we,” “us,”"Comscore," "we," "us," the “Company”"Company" and “our”"our" refer to comScore, Inc. and its consolidated subsidiaries and wesubsidiaries. We have registered trademarks around the globe, including Unified Digital Measurement®Measurement®, UDM®UDM®, vCE®vCE®, Metrix®Metrix®, and Analytix®, Essentials®Essentials®, Box Office Essentials®Essentials®, OnDemand Essentials®, OnDemand Everywhere®Essentials®, and TV Essentials®Essentials®. This 10-K also contains additional trademarks and trade names of our Companycompany and our subsidiaries. We file and maintain trademark protection for our products and services. All trademarks and trade names appearing in this 10-K are the property of their respective holders.
Financial Information Included in this 10-K
This is the first periodic report filed by comScore covering periods after September 30, 2015. Readers should be aware that several aspects of this report differ from other annual reports on Form 10-K. This Annual Report on Form 10-K for the year ended December 31, 2017 contains our audited Consolidated Financial Statements for the years ended December 31, 2017 and 2016, which have not previously been filed, as well as adjustments or restatements of certain previously furnished or filed Consolidated Financial Statements and data as explained herein. This 10-K includes our Consolidated Balance Sheets as of December 31, 2017 and 2016, and the related Consolidated Statements of Operations and Comprehensive Loss, Stockholders' Equity and Cash Flows for the years ended December 31, 2017, 2016 and 2015. The Consolidated Statements of Operations and Comprehensive Loss and Cash Flows for the year ended December 31, 2015 and the condensed consolidated balance sheet data as of December 31, 2015 have been adjusted from the unaudited information previously furnished in our Current Report on Form 8-K on February 17, 2016.
This 10-K also includes selected condensed consolidated financial data as of, and for the years ended, December 31, 2014 (Restated) and 2013 (Restated), which has been derived from our unaudited Consolidated Financial Statements, which were prepared on the same basis as our audited financial statements and reflect adjustments to our previously filed Consolidated Financial Statements. Refer to Item 6, “Selected Financial Data-Audit Committee Investigation and Subsequent Management Review” for information regarding the applicable adjustments or restatements of our financial results for 2015, 2014 and 2013. Refer to Footnote 1, Organization, of the Notes to Consolidated Financial Statements for information regarding the applicable adjustments and restatement of our stockholders' equity as of January 1, 2015.
We have not filed and do not intend to file amendments to any of our previously filed Annual Reports on Form 10-K or Quarterly Reports on Form 10-Q for the periods affected by the restatements of our Consolidated Financial Statements. Instead, we are only restating and correcting the selected financial data for the years ended December 31, 2014 and 2013 that are included in this 10-K in Item 6, “Selected Financial Data.” Accordingly, as disclosed in our Current Reports on Form 8-K filed September 15, 2016 and November 17, 2016, the Consolidated Financial Statements and related financial information contained in previously filed financial reports, including any related reports of our independent registered public accounting firm, should no longer be relied upon. We have not filed and do not intend to file separate Annual Reports on Form 10-K for the years ended December 31, 2015 and 2016 or Quarterly Reports on Form 10-Q for the periods ended March 31, June 30 or September 30, 2016, respectively. Concurrent with this filing, we are filing unaudited quarterly and year to date Condensed Consolidated Financial Statements and Quarterly Reports on Form 10-Q for each of the quarters ended March 31, June 30 and September 30, 2017 (the “2017 Form 10-Qs”). Accordingly, investors should rely only on the financial information and other disclosures, including the adjusted or restated financial information, included in this 10-K and the 2017 Form 10-Qs, as applicable, and should not rely on any previously furnished or filed reports, earnings releases, guidance, investor presentations, or similar communications, including regarding the Company's customer count and validated Campaign Essentials (or vCE) products, regarding these periods.
Background of Audit Committee Investigation and Subsequent Management Review
In February 2016, the Audit Committee ("Audit Committee") of the comScore Board of Directors ("Board") commenced an internal investigation, with the assistance of outside advisors, into matters related to the Company's revenue recognition practices, disclosures, internal controls, corporate culture and certain employment practices. As a result of the issues identified in the Audit Committee's investigation and management's subsequent review, on September 12, 2016, the Company announced that the Audit Committee, in consultation with outside advisors and management, had concluded that the Company could no longer support the prior accounting for non-monetary contracts recorded by the Company during 2013, 2014 and 2015. As a result, we concluded that (i) our previously issued, unaudited quarterly and year-to-date Consolidated Financial Statements for the quarters ended March 31, June 30 and September 30, 2015 filed on Quarterly Reports on Form 10-Q on May 5, August 7, and November 6, 2015, respectively, (ii) our previously issued, audited Consolidated Financial Statements for the years ended December 31, 2014 and 2013 filed on Annual Reports on Form 10-K on February 20, 2015 and February 18, 2014, respectively (including the interim periods within those years) and (iii) our preliminary unaudited Condensed Consolidated Financial Statements for the quarter and

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year ended December 31, 2015 included as an exhibit to our Current Report on Form 8-K furnished on February 17, 2016, should no longer be relied upon.
On November 23, 2016, in a Current Report on Form 8-K, the Company reported that the Audit Committee's investigation was complete and had concluded that, as a result of certain instances of misconduct and errors in accounting determinations, adjustments to the Company's accounting for certain non-monetary and monetary transactions were required. As a result of the Audit Committee's conclusions and observations, we began a process of reviewing substantially all of our accounting policies, significant accounting transactions, related party transactions, and other financial, internal control and disclosure matters. In addition to the above-referenced adjustments related to revenue and expenses associated with non-monetary transactions, we also concluded that the accounting treatment for certain monetary transactions, certain business and asset acquisitions, our deferred tax assets and other accounting matters required adjustments. The Audit Committee's investigation and this review also identified various material weaknesses in internal control, including in our entity level controls and in certain accounting practices, all as described under Item 9A, "Controls and Procedures" in this Annual Report on Form 10-K. For further information regarding the specific adjustments resulting from the investigation and subsequent management review, refer to Item 6, "Selected Financial Data" in this 10-K.


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PART I

ITEM 1.BUSINESS
Overview
We are a global information and analytics company that measures advertising, content, and the consumer audiences and advertisingof each, across media platforms. We create our products using a global data platform that combines information about content and advertising consumption on digital (smartphones,platforms (connected (Smart) televisions, mobile devices, tablets and computers), television ("TV"), direct to consumer applications, and movie screens with demographics and other descriptive information. We have developed proprietary data science that enables measurement of person-level and household-level audiences, removing duplicated viewing across devices and over time. This combination of data and methods enables a common standard for buyers and sellers to transact on advertising. This helps companies across the media ecosystem better understand and monetize their audiences and develop marketing plans, content and products to more efficiently and effectively reach those audiences. Our ability to unify behavioral and other descriptive data enables us to provide accredited audience ratings, advertising verification, and granular consumer segments that describe hundreds of millions of consumers. Our customers include buyers and sellers of advertising including digital publishers, television networks, movie studios, content owners, brand advertisers, agencies and technology providers.
The platforms we measure include television sets, smartphones, computers, tablets, over-the-top ("OTT") devices and movie theaters, and the information we analyze crosses geographies, types of content and activities, including websites, mobile and over the top ("OTT") applications ("apps"), video games, television and movie programming, electronic commerce ("e-commerce") and advertising.
We are a Delaware corporation headquartered in Reston, Virginia with principal offices located at 11950 Democracy Drive, Suite 600, Reston, VA 20190. Our telephone number is 703-438-2000.
Recent Key Developments in 2016-2018
Merger with Rentrak CorporationLeadership Changes
On January 29, 2016, comScore completed a merger with Rentrak Corporation (“Rentrak”July 5, 2022, our Board of Directors (the "Board") with the goal of creating a new cross-platform measurement company capable of offering a more comprehensive and precise set of solutions for measuring media consumption and advertising across platforms. The financial results of Rentrak are included inappointed Jonathan Carpenter as our Consolidated Financial Statements from the date the merger was completed, January 29, 2016. For further information on the merger with Rentrak, refer to Footnote 3, Business Combinations and Acquisitions of the Notes to Consolidated Financial Statements included in this 10-K.
Audit Committee Investigation, Subsequent Management Review and Related Matters
As described above in the Explanatory Note and in ItemChief Executive Officer, effective July 6,, “Selected Financial Data-Background of Audit Committee Investigation and Subsequent Management Review” of this 10-K, we have completed an extensive investigation into matters related to our prior revenue recognition practices, disclosures, internal controls, corporate culture and certain employment practices. As a result, we have adjusted or restated certain previously reported consolidated financial information for 2015 and prior periods. Due to our accounting investigation and review, and our subsequent inability to remain current in our SEC reporting obligations, our common stock ("Common Stock") was suspended from trading on The Nasdaq Stock Market (“Nasdaq”) on February 8, 2017, and subsequently delisted. We intend to seek relisting of our Common Stock in connection with becoming current in our SEC reporting obligations. 2022. In connection with Mr. Carpenter's appointment, William Livek retired as our announcement ofChief Executive Officer. Also on July 5, 2022, the accounting investigation and review, we also became subject to litigationBoard appointed Mary Margaret Curry as discussed in Item 3, “Legal Proceedings” of this 10-K. We also identified various material weaknesses in our internal control over financial reporting, as discussed in Item 9A, “Controls and Procedures” of this 10-K.
Leadership Changes to our Management and Board of Directors
Since January 1, 2016, our entire executive leadership team has changed. Our current executive officers are Bill Livek, our President and Executive Vice Chairman, appointed on January 29, 2016; Carol DiBattiste, our General Counsel & Chief Compliance, Privacy and People Officer, appointed on January 23, 2017; Gregory A. Fink, our Chief Financial Officer and Treasurer, effective July 6, 2022. Ms. Curry continues to serve as our principal accounting officer.
On August 22, 2022, our Board appointed on October 17, 2017;Greg Dale as Chief Operating Officer and David Algranati as Chief Innovation Officer of the Company, effective August 23, 2022. We also announced that our Chief Commercial Officer, Chris Wilson, our Chief Revenue Officer, appointed on Junewould depart the Company effective October 1, 2017; Dan Hess, our Chief Product Officer, appointed on January 30, 2018; and Joe Rostock, our Chief Information and Technology Operations Officer, appointed on January 30, 2018. In addition, our Board has formed a committee to direct the search for a new Chief Executive Officer and has retained an executive search firm to assist in the search. Also since January 1, 2016, eight of our nine current directors, including our current Board and Audit Committee Chair, have joined our Board. Seven of our nine directors meet the “independence” criteria of the Nasdaq listing standards.2022.
For further information regarding our Board and executive officers, refer to Item 10, “Directors, Executive Officers and Corporate Governance” in this 10-K.

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2017 Agreement with Starboard Value LP
In September 2017, we entered into an agreement with Starboard Value LP and certain of its affiliates (collectively, “Starboard”), which at the time beneficially owned approximately 4.8% of our Common Stock and had filed a lawsuit in Delaware seeking an order to compel us to hold an annual meeting of stockholders.
Pursuant to this agreement, among other things, we agreed to appoint to the Board four new independent directors recommended by Starboard, and granted Starboard the right, subject to certain conditions, to appoint up to two additional members of the Board, and Starboard agreed to dismiss the lawsuit it had filed and to vote its shares in favor of all of the Company’s director nominees, and otherwise in accordance with the Board’s recommendations on all other proposals, at the Company's next annual meeting of stockholders.
Organizational Restructuring
On September 29, 2022, we communicated a workforce reduction as part of our broader efforts to improve cost efficiency and better align our operating structure and resources with strategic priorities (collectively, the "Restructuring Plan"). In December 2017, we announced that we were implementing an organizational restructuringaddition to employee terminations, the Restructuring Plan is expected to include the reallocation of commercial and product development resources; reinvestment in and modernization of key technology platforms; consolidation of data storage and processing activities to reduce staffing levels by approximately 10%our data center footprint; and reduction of other operating expenses, including software and facility costs. We may also determine to exit certain activities in certain geographic regions in order to enable us to decrease our global costs and more effectively align resources towith business priorities. The majority of the employees impacted by the restructuring exited the Company in the fourth quarter of 2017, and the remainder are expected
Amendment to exit in the first quarter of 2018. In connection with the restructuring, in the fourth quarter of 2017, we recorded a charge of $10.5 million related to termination benefits and other costs. We expect to incur an incremental charge in the first quarter of 2018 related to certain employees who exit in 2018.Revolving Credit Agreement
2018 Convertible Notes Financing
In January 2018,On February 25, 2022, we entered into an amendment to our senior secured revolving credit agreement (the "Revolving Credit Agreement") to expand our aggregate borrowing capacity from $25.0 million to $40.0 million. The 2022 amendment also replaced the Eurodollar Rate with a SOFR-based interest rate and modified the Applicable Rate definition in the Revolving Credit Agreement to increase the Applicable Rate payable on SOFR-based loans to 2.50%. Finally, the amendment modified certain financial covenants under the Revolving Credit Agreement.
On February 24, 2023, we entered into an additional agreements with Starboard pursuantamendment to the Revolving Credit Agreement that further modified our financial covenants, introduced a minimum liquidity covenant, and increased the Applicable Rate payable on SOFR-based loans to 3.50%. Refer to Footnote 16, Subsequent Events, of the Notes to the Consolidated Financial Statements for additional information about the 2023 amendment.
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Macroeconomic Factors
During 2020 and 2021, the COVID-19 pandemic and related government mandates and restrictions had a significant impact on the media, advertising and entertainment industries in which we (i) issued $150.0 millionoperate. The pandemic also had an impact on our business, including with respect to the execution of new and renewal contracts, the impact of closed movie theaters on our customers, customer payment delays and requests to modify contractual payment terms. In response to the COVID-19 pandemic, we took actions in new senior secured convertible notes2020 and 2021 to Starboardmitigate the liquidity impact, including freezing hiring, exiting non-critical consultants and contractors, terminating or negotiating reductions in exchangevendor agreements and leases, and reducing certain travel, marketing, recruiting and other corporate activities. Although we cannot quantify the impact that the pandemic may have on our business in the future, we saw positive recovery in 2022, including the reopening of theaters in most markets worldwide. At the same time, however, macroeconomic factors such as inflation, rising interest rates, and supply chain disruptions caused some advertisers to reduce or delay advertising expenditures in the second half of 2022. These declines had a direct impact on demand for $85.0 millionour products, particularly those for which we recognize revenue based on impressions used. We expect that softness in cash and $65.0 millionthe advertising market will continue to affect our business in shares of our Common Stock held by Starboard, (ii) granted Starboard the option to acquire up to an additional $50.0 million of such convertible notes, (iii) agreed to grant Starboard warrants to purchase 250,000 shares of Common Stock and (iv) have the right to conduct a rights offering, open to all our stockholders, for up to an additional $150.0 million in such convertible notes, and Starboard agreed to enter into one or more backstop commitment agreements by which it will backstop up to $100.0 million of the convertible notes offered in a rights offering.2023.
Background and Market
We were founded in 1999 on the belief that digital technology would transform the interactions between people, media and brands in ways that would generate substantial demand for data and analytics about that interaction. The growing adoption of digital technologies also allowed measurement of the behavior of consumers' online activities. Based on this vision, we built a global opt-in panel of over two million individuals that provided insight into online activities. In 2002,Over the years we acquired Media Metrix, an internet ratings brand with its own panel of consumers. Anticipating that mobile would become a key digital platform in the future, we acquired mobile measurement specialist M:Metrics in 2008. In 2009, we introducedhave enhanced our proprietary Unified Digital Measurement ("UDM") methodology, which allowed us to unite consumerproduct offerings by uniting panel data with census-level data from website tags thatand other sources, and we implemented on websites and their content and, later from software development kits on mobile apps.
To expandexpanded our global presence in Latin America and Europe, respectively, we acquired Certifica in 2009 and NedStat in 2010. To enhance our product offerings, we acquired ARS in 2010 and M.Labs, LLC in 2014. As consumer media consumption and the availability of television and video programming expanded across a myriad of consumer devices, the ability to measure this dynamic cross-platform world became more important for buyers and sellers of advertising. In response, we partnered with ESPN and Arbitron to pioneer a cross-platform measurement solution, and in 2015 launched Xmedia, a syndicated cross-platform measurement product. Arbitron was later acquired by Nielsen Holdings N.V. ("Nielsen"), although we continue to have access to legacy Arbitron data through a 2013 license agreement with Nielsen. This cross-platform measurement strategy led to our 2015 strategic alliance with WPP plc ("WPP"), one of the largest communications services businesses in the world, and the January 2016 merger with Rentrak, a global media measurement and advanced consumer targeting company serving the entertainment, television, video and advertising industries. Following the Rentrak merger, we nowvarious markets. We also have access to millions of television and video on demand ("VOD") screens and the ability to measure box office results from movie screens across the world. As announced in 2016, we have begun to develop our opt-in Total Home Panel, which enables measurement of household devices that use a home’s internet connection, whether traditional mobile and computer devices, streaming media devices, gaming consoles or Internet of Things ("IOT") devices, which may include devices such as smart speakers, thermostats, and appliances.

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In addition to the Rentrak merger,December 2021, we have completed the following significant transactions since January 1, 2015:
During the first quarter of 2015, we and WPP entered into a series of agreements whereby WPP became the beneficial owner of 15% of our then outstanding Common Stock and agreed to grant us certain voting rights with respect to its shares of Common Stock; we and WPP formed a strategic alliance for the development and delivery of cross-media audience measurement outside of the U.S.; we purchased WPP’s Nordic Internet Audience Measurement (“IAM”) business; and WPP’s subsidiary, GroupM Worldwide ("GroupM"), entered into a five-year minimum commitment agreement with us ("Subscription Receivable"). Refer to Item 6, "Selected Financial Data," for discussion of adjustments made with respect to the WPP agreements for the year ended December 31, 2015. For additional information, refer to Footnote 3, Business Combinations and Acquisitions and Footnote 17, Related Party Transactions of the Notes to Consolidated Financial Statements.
In April 2015, we purchased Proximic, Inc., for $9.5 million, to enhance brand safety and content categorization capabilities across our product offerings.
In May 2015, we sold certain assets of our mobile operator analytics businesses, in exchange for the assumption of certain customer liabilities.
In January 2016, we sold our Digital Analytix business ("DAx") to Adobe Systems Incorporated ("Adobe") for $45.0 million. In addition, in February 2016, we entered into a Strategic Partnership Agreement with Adobe, which was terminated in September 2017.
In April 2016, we purchased certain assets of Compete,acquired Shareablee, Inc. ("Compete"Shareablee") for $27.3 million in cash, net of a working capital adjustment of $1.4 million. Compete was owned by Kantar Millward Brown Company, a subsidiary of WPP. We acquired the Compete assets, allowing us to expand our presenceMedia Metrix® and Video Metrix® currencies to include Shareablee's social media engagement and video insights, in certain markets, such asorder to bridge the auto industry gap of traditional digital and financial services, with improved solution offerings regarding digital performance, including path to purchase, advertising impact analysis and shopping configuration analysis.social measurement services.
Our Approach to Media Measurement
Our approach to measuring media consumption addresses the ubiquitous nature of media content and the fragmentation caused by the variety of platforms and technologies used to access such content. Advertising exposure and effectiveness is another rapidly changing and fragmented area where we apply scale for validation and campaign measurement across devices, platforms and ecosystem technology providers. We believe this fragmentation presents major challenges to using legacy measurement systems that are comprised of relatively small panels of cooperating consumers or limited to specific media platforms. Our products and services are built on measurement and analytic capabilities comprised of broad-based data collection, proprietary databases, internally developed software and a computational infrastructure to measure, analyze and report on digital, television and movie activity at the level of granularity that we believe the media and advertising industries need. We have more than 100 patents covering various aspects of our data collection and data processing systems.
Data Collection
The following collection methods illustrate our extensive data sourcing:
We collect data from proprietary opt-in consumer panels that measure the use of computers, tablets and smartphones that access the internet. These panelists have agreed to install our passive metering software on their devices, home network or both.
We collect data fromComscore's Digital Census Data is our near-censuscensus digital network whereby content publishers implementshare information with us. That sharing includes direct integrations with the publishers, as well as publishers' implementation of our software code (referred to as "tagging") on their websites, in mobile applications and video players to provide us usage information on an anonymous basis.information.
We license certain demographic and behavioral mobile and panel data from third-party data providers.
We obtain U.S. television viewership information from satellite, telecommunications, connected (Smart) TV and cable operators covering millions of television and VOD screens.
We measure gross receipts and attendance information from movie screens across the world.
We anonymously integrate our digital and television viewership information with other third-party datasets that include consumer demographic characteristics, attitudes, lifestyles and purchase behavior.
We integrate many of our services with ad serving platforms.
We utilize knowledgeable in-house industry analysts that span verticals such as pharmaceuticals, media, finance, consumer packaged goods and political information to add value to our data.
We have created an opt-in Total Home Panel, which can capture data that runruns through a home’shome's internet connection. This expands our intelligence to include such activity as game console and IOTInternet of Things ("IOT") device usage.

We collect content and advertising data from major social platforms for measurement, audience, and lift analysis.
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Data Science and Management
The ability to integrate, manage and transform massive amounts of data is core to our company. We continue to invest in technologies to enable large-scale measurement with protection of consumer privacy and attractive economics. Our systems contain multiple redundancies and advanced distributed processing technologies. We have created innovations such as:
Our UDMUnited Digital Measurement® ("UDM") methodology, which allows us to combine person-centric panel data with website server data. We believe this gives our customers greater accuracy, granularity and relevance in audience measurement.
Our TV measurement systems, underpinned by multiple patents, which enable us to provide a consistent measurement of TV audience sizes across national, local, and addressable television to customers evaluating programming as well as customers selling and buying TV advertising.
An ability to de-duplicate audiences across platforms, which is based on direct observations within our consumer panel and census data combined with proprietary data science. This de-duplication allows us to measure the reach and frequency of advertising and content exposure across platforms and over time.
An ability to validate advertising delivery and detect fraud through our Invalid Traffic and Sophisticated Invalid Traffic filtration methods. These methods have been accredited by the Media Rating Council, which provides our customers with added assurances of validity and reliability.
An ability to capture the full content of a website or app session, which allows us to measure activity beyond page views such as purchase transactions, application submissions and product configurations.
An ability to intelligently categorize massive amounts of web and video content, which allows us to inform targeted and brand-safe advertising.
Product Delivery
We deliver our products and services through diverse methods to meet the needs of our customers. These include Software-as-a-Service ("SaaS"SAAS") delivery platforms, application programming interface ("API") and other data feeds that integrate directly with customer systems, and integrations with advertising technology providers such as data management platforms ("DMPs") and demand-side platforms ("DSPs") that enable data management, ad management and programmatic ad trading.
Our Products and Services
Our products and services help our customers measure audiences and consumer behavior across media platforms, while offering validation of advertising delivery and its effectiveness. Our customers include:
Local and national television broadcasters and content owners;
Network operators including cable companies, mobile operators and internet service providers;
Distributors of streaming video content;
Digital content publishers and internet technology companies;
Advertising technology companies that aggregate supply and demand side inventory for sale to end customers;
Advertising agencies;
Movie studios;studios and movie theater operators;
Hardware device and component manufacturers;
Financial service companies, including buy and sell-side investment firms, consumer banks and credit card issuers;
Manufacturers and retailers of consumer products such as consumer packaged goods, pharmaceuticals, automotive and electronics; and
Political campaigns and related organizations.

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OurDuring 2022, our products and services arewere organized around two solution groups:
•    Digital Ad Solutions provide measurement planningof the behavior and optimization in four offerings:
Digital Audience: focused on the size, engagement, and other behavioral and qualitative characteristics of audiences around the world, across multiple digital platforms, including computers, tablets, smartphonesmobile and other connected devices.
TV and Cross-Platform Audience: focused on consumer viewership of both linear and on-demand television content in the U.S. at the national level and in local markets. Provides a view of cross-platform consumer behavior when integrated with our Digital Audience and Advertising products and services.
Advertising: provides This solution group also includes custom offerings that provide end-to-end solutions for planning, optimization and evaluation of advertising campaigns.campaigns and brand protection across digital platforms, including transactional outcome-based measurement driven by our Activation and Comscore Campaign Ratings ("CCR") products.
Movies: measures•    Cross Platform Solutions provide measurement of content and advertising audiences across local, national and addressable television, including consumption through connected (Smart) televisions, and are designed to help customers find the most relevant viewing audience whether that viewing is linear, non-linear, online or on-demand. This solution group also includes custom offerings that provide end-to-end solutions for planning, optimization and evaluation of advertising campaigns across platforms. In addition, this solution group includes products that measure movie viewership captures audience demographics and sentiment via social mediabox office results by capturing movie ticket sales in real time or near real time and exit pollingincludes box office analytics, trend analysis and provides software tools toinsights for movie studios and movie theater customers around the world.  operators worldwide.
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We categorize our revenue for 2022 and prior periods along these four offerings;two solution groups; however, our shared cost structure is defined and tracked by function and not by our product offerings.solution groups. These shared costs include but are not limited to, employee costs, operational overhead, data centers and our technology that supports our product offerings.
Digital Audience Ad Solutions products and services provide measurement of the behavior and characteristics of digital consumers based on information from our panels, including our Total Home Panel, census network, demographic and other available data, across multiple digital platforms. Many of these products are accredited by industry standard setting groups. These products and services provide person-centric insight (the “Who”) across different devices (the “Where”) and can capture various types of content (the “What”).include:
These products and services include:
Media Metrix Multi-Platform and Mobile Metrix, which measure websites and apps on computers, smartphones and tablets across dozens of countries, and is aare leading currencycurrencies for online media planning and enablesenable customers to analyze audience size, reach, engagement, demographics and other characteristics. Publishers use Media Metrix Multi-Platform and Mobile Metrix to demonstrate the value of their audiences and understand market dynamics, and advertisers and their agencies use Media Metrix Multi-Platform and Mobile Metrix to plan and execute effective marketing and content campaigns. These products also provide competitive intelligence such as cross-site visiting patterns, traffic source/loss reporting and local market trends.
Video Metrix Multi-Platform, which delivers de-duplicatedunduplicated measurement of digital video consumption across computer, smartphone, tablet and OTT devices. Video Metrixconnected TV ("CTV") devices and provides TV-comparable reach and engagement metrics, as well as audience demographics.
Plan Metrix, which provides an understanding of consumer lifestyle, buying and other consumption habits, online and offline, by integrating attitudes and interests with online behavior. Plan Metrixbehavior and provides customers with insight into patterns and trends needed to develop and execute advertising and marketing campaigns.
comScoreTotal Home Panel Suite, including CTV Intelligence and Connected Home, which capture CTV and IOT device usage and content consumption. Comscore Connected Home enables users to better understand consumer engagement with technology and media by measuring behavior across network and router-connected devices in the home. Comscore CTV Intelligence provides clients with critical insight into consumer streaming activity on TV-connected devices, including smart TVs, streaming sticks and boxes, and gaming consoles.
CCR, which expands upon validated Campaign Essentials ("vCE") verification of mobile and desktop video campaigns with the addition of video advertising delivered via digital, CTV and TV and provides unduplicated reporting that enables ad buyers and sellers to negotiate and evaluate campaigns across media platforms.
XMedia Enhanced, which provides a deduplicated view of national programming content across TV, digital, and CTV platforms.
Comscore Marketing Solutions, which provide analytics that integrate online visitation and advertising data, televisionTV viewing, purchase transactions, attitudinal research and other comScore information assets. These custom deliverables are designed to meet client needs in specific industries such as automotive, financial services, media, retail, travel, telecommunications and technology. Applications include path to purchasepath-to-purchase analyses, competitive benchmarking, and market segmentation studies.studies, and branded content analytics.
TVLift Models, which measure the impact of advertising on a brand across multiple behavioral and Cross-Platformattitudinal dimensions such as brand awareness, purchase intent, online visitation, online and offline purchase behavior and retail store visitation, enabling customers to fine tune campaign strategy and execution.
Survey Analytics, which measure various types of consumer insights including brand health metrics.
Activation Solutions, including Audience Activation and Content Activation. Comscore Audience Activation offers targeting with demographics and cross-screen behaviors for digital, mobile and CTV campaigns. Comscore Content Activation provides a robust set of pre-bid inventory filters to help marketers and media companies achieve brand-safe, relevant campaign delivery across desktop, mobile, podcasts, and CTV. A new addition to the Content Activation suite, Predictive Audiences delivers contextually delivered, ID-free segments based on granular audience behaviors.
Cross Platform Solutions products and services measure consumer television viewership and behavior across digital andinclude:
Comscore TV platforms. Our products and services help our customers understand TV and digital audience characteristics including not only traditional demographics, but also advanced audience descriptors such as interests, lifestyles and product ownership. This insight allows both sellers and buyers to find the most relevant audiences, whether viewing linear, time shifted/recorded, online or on-demand content.
These products and services include:
TV Essentials - National, which combines TV viewing information with marketing segmentation and consumer databases for enhanced audience intelligence. Comscore TV Essentials- National data areis also used in analytical applications to help customers better understand the performance of network advertising campaigns.
StationView EssentialsComscore TV - Local, which allows customers to better understand consumer viewing patterns and characteristics across local TV stations and cable channels in their market(s) to promote viewership of a particular station and negotiate inventory pricing based on the size, value and relevance of the audience.
OnDemand Essentials, which provides multichannel video programming distributors and content providers with transactional tracking and reporting based on millions of television screens. This product also incorporates our advanced audience descriptor,screens, enabling our customers to plan advertising campaigns that more precisely target consumers watching on-demand video content.
Cross-Platform Suite,Movie Solutions, including XMedia and Extended TV (currently in development), provides the integration of person-level linear TV viewership with digital audience data. This combination enables the creation of cross-platform media plans based on an analysis of de-duplicated reach, engagement and audience overlap across TV and digital platforms using a self-service tool. Customers can simulate cross-platform media planning and share scenarios, understand

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incremental reach and frequency that digital provides compared to that of linear TV media buys and simulate various media-mix scenarios to better understand the optimal mix.
Advertising includes a suite of tools that enable customers to execute, measure and optimize ad campaigns and to protect the integrity of their brands.
validated Campaign Essentials ("vCE") is a solution that validates whether digital ad impressions are visible to humans, identifies those that are fraudulent (e.g., delivered to automated bots or requested by malware), and verifies that ads are shown in brand safe content and delivered to the right audience targets. Advertisers and their agencies use vCE as the basis for negotiating and evaluating campaign performance against their contracts with, and payments to, digital publishers for ad campaigns.
Lift Models measure the impact of advertising on a brand across multiple behavioral and attitudinal dimensions such as brand awareness, purchase intent, online visitation, online and offline purchase behavior and retail store visitation. comScore Lift Models enable customers to fine tune campaign strategy and execution.
Activation Solutions use comScore-collected media consumption data to enhance customer databases for use in advanced analytic and media planning applications. For example, a customer may use our Activation Solutions within a customer relationship management platform to identify characteristics of consumers that are in the market for a specific product or digital content users that are also heavy watchers of specific television content.
Movies products and services measure movie viewership and box office results by capturing movie ticket sales in real time or near real time. We provide comprehensive box office analytics, trend analysis and insights for movie studios and movie theater operators worldwide. We further incorporate social media analytics and theater exit polling to capture audience sentiment before and after movie release.  
These products and services include:
Box Office Essentials and International Box Office Essentials, which provide detailed measurement of domestic and international theatrical gross receipts and attendance, with movie specificmovie-specific information across the globe.
Box Office Analytics provide release-date optimization using predictive analytics to estimate the gross potential for future films, long-lead measurement to help gauge the health of a movie’s marketing campaign before theatrical release, and post-releaseglobe; PostTrak, which is an exit polling service that reports of audience demographics and the aspects of each movietitle that
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trigger interest and attendance.
attendance; and Swift, which is an electronic box office reporting system that facilitates the flow of reconciled theater-level ticket transactions.
Hollywood Software Suite, including Comscore Theatrical Distribution System ("TDS"), Comscore Exhibitor Management System ("EMS"), Comscore Enterprise Web, and Cinema Auditorium Control Engine ("ACE"). Comscore TDS is an advanced software to help manage theatrical distribution worldwide. Comscore EMS provides moviea virtual staff of booking assistants and accountants working to consolidate point-of-sale data. Comscore Enterprise Web gives circuit managers an over-the-shoulder look at operations inside their theaters. Cinema ACE is a theater distributorsmanagement system that drives productivity and exhibitors with the software and infrastructure necessary to manage and control end-to-end processes and equipment forefficiency across digital cinema exhibition.  These applications enable customers to plan releases, program theater screens, and manage payments across multiple theaters from any location.operations.
Business Organization
We employ people across the globe, and prior to January 2018, we were organized as follows:
Software Engineering and Technology - this team was responsible for development of analytical platforms which support our products and services based on data integration, computational processing, warehousing and customer delivery technologies. Our data processing environment spanned five domestic and three international data centers.
Data Analytics, Research and Products - this team was responsible for managing and enhancing our various data assets, including data scientists, statisticians and product managers.
Sales, Customer Service/Insights and Marketing - this team sold, marketed and serviced our products and services to customers. We employed a direct sales force to market to new and existing customers and use our insights and team members to work with and support our existing customers.
In January 2018, we reorganized our business to enable a clearer focus on our priorities and cross-platform strategy as follows:
Product, Custom Solutions, and Client Success - this team is responsible for ensuring the consistent, timely provision of comScore products and solutions, delivering on core products and our vision of unique cross-platform offerings.
Software Engineering, Technology, and Technology Operations -this team is responsible for ensuring that we deliver and execute quality products and solutions at scale. This team includes software engineering, analytics, statistics, operations, and infrastructure functions.
Sales and Customer Service -this team is responsible for the sales, service, and relationship management of our products and solutions to current and prospective customers and strategic partners.

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Research and Development
Our research and development activities span our business of media and cross-platform measurement, encompassing data collection, data science, analytical application development and product delivery. We continue to focus on expanding our coverage and scale, precision and granularity across diverse types of media, devices and geographies using our census, panel and other data assets.
Examples of our research and development initiatives include:
Enhancing our recruiting methods and software applications;
Developing new technologies to manage, stage and deliver cross-platform data and analytics through traditional web-based user interfaces and via integration with customer systems;
Designing solutions to continue to measure the online media space while honoring increased privacy concerns, including the development of industry-compatible, interoperable methodologies that will function as browser, regulatory, and legal environments change;
Creating new methodologies to measure person-level TV and digital consumption at scale and across platforms; and
Continuing to develop expertise in combining ourmultiple data assets, both to leverage single-platform datasets into representative cross-platform measurements as well as working with thosethe data of partner companies, which allowsallowing us to enhance existing services and create new and innovative audience ratingmeasurement products. These efforts include original research into the measurement of data overlaps and de-duplication in the measurement of reach.
Recent Product Investments and Releases
Cookieless - Engineering Products in a Privacy Centric World
Our digital measurement is centered upon using first party panel data combined with additional information captured through census measurement and data partnerships. Historically, we have used cookies and mobile advertising IDs to provide additional context and scale to our digital audience measurement solutions, as well as to assist in more targeted measurement and reportability. The development of new opt-in permissions and enhanced focus on consent-based measurement provide the benefit of limiting the transfer of consumer personal information, but also mean changes to data collection and measurement processes.
We are adopting and developing new methodologies to lead this transition to a more privacy-centric world. A key component is leveraging our capabilities in panels, which we believe give us a competitive advantage in digital and cross-platform management. In parallel, our work with existing and new partners to collaborate and test emerging solutions is intended to expand the reach of our large-scale integrations. We are creating measurement innovations designed to produce stronger products engineered for privacy, building from the pioneering UDM concept and insight into audience behavior.moving toward privacy-first consented identifiers and methodologies.
We are also engaged in industry initiatives that focus on the viability and success of cross media measurement to support the "free web," which is driven by advertising investment. One of these initiatives, championed by the Association of National Advertisers ("ANA"), Google, Meta, and TikTok, is a global privacy measurement framework proposal from the World Federation of Advertisers ("WFA"). In 2021, we were selected by the ANA as a partner in their Cross-Media Measurement initiative for a pilot in measuring privacy-preserving reach and frequency measurements for television and digital media audiences, which is capable of reporting both demographics and cross-platform de-duplication. During 2022, we worked with the ANA to demonstrate that the WFA's framework for content and ad measurement can be successful and scale.
Comscore Predictive Audiences
With third-party cookie deprecation fast approaching, advertisers need bold new solutions to ensure their campaigns continue to reach the right audiences without interruption. In 2021 we launched Predictive Audiences – a cookie-free targeting capability that enables advertisers to reach audiences based on granular consumer behavior through privacy-friendly contextual signals. This solution delivers scale and precision beyond what was previously available in the industry, and can be used across digital, mobile, and CTV campaigns.
Intellectual Property
Our intellectual property assets are important to protect our business. We protect our innovations and products with numerous patents, trademarks, copyrights, trade secrets, and other intellectual property. In particular, we file for, and seek to acquire patent rights for our
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innovations and we continue to seek to enhance our patent portfolio through targeted and strategic patent filings and licensing opportunities. We believe that we own the material trademarks used in connection with the marketing, distributingdistribution and sale of our products, both domestically and internationally. We will continue to pursue intellectual property opportunities in areas and technologies that we deem to be strategic and appropriate for our business.
Patents
Our patents extend across our data capture and processing techniques and include the following:
Data Collection - metering such as biometrics and audio fingerprinting, tagging such as video view-ability,viewability, browser optimization, IP obfuscation and TV-off measurement methodology.
Data Processing - traffic and content categorization, demographic attribution, ad effectiveness measurement, data overlap and fusion, invalid traffic detection, data weighting, projection and processing of return path data.
Trademarks
We file and maintain trademark protection for our products and services. We rely on trademarks and service marks to protect our intellectual property assets and believe these are important to our marketing efforts and the competitive value of our products and services. We have registered trademarks around the globe, including Unified Digital Measurement®Measurement®, UDM®UDM®, vCE®vCE®, Metrix®Metrix®, and Analytix®, Essentials®Essentials®, Box Office Essentials®Essentials®, OnDemand Essentials®, OnDemand Everywhere®Essentials®, and TV Essentials®Essentials®. This 10-K also contains additional trademarks and trade names of our Company and our subsidiaries. We file and maintain trademark protection for our products and services.  All trademarks and trade names appearing in this 10-K are the property of their respective holders.

Licenses
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TableWe license data from third-party providers across the media platforms that we measure. Our licenses include agreements with satellite, telecommunications and cable operators covering television and VOD viewership data, third-party scheduling datasets and data matching partners, and agreements with providers of Contents


demographic and behavioral mobile and panel data. See "Our Approach to Media Measurement" above for a discussion of our data sourcing.
Competition
The market for audience and advertising measurement products is highly competitive and is evolving rapidly. We compete primarily with other providers of media intelligence and related analytical products and services. We also compete with providers of marketing services and solutions, with full-service survey providers and with internal solutions developed by customers and potential customers. Our principal competitors include:
Full serviceFull-service market research firms, including Nielsen, Ipsos and GfK;
Television measurement competitors, which are evolving with the marketplace and now include advertising measurement startups such as VideoAmp, iSpot and others;
Companies that provide audience ratings for TV, radio and other media that have extended or may extend their current services, particularly in certain international markets, to the measurement of digital media, including Nielsen Audio (formerly Arbitron) and TiVoXperi Corporation;
Online advertising companies that provide measurement of online ad effectiveness and ad delivery used for billing purposes, including Nielsen, Google and Facebook;Meta;
Companies that provide digital advertising technology point solutions, including DoubleVerify, Integral Ad Science, Oracle Moat (owned by Oracle), and WhiteOps;HUMAN;
Companies that provide audience measurement and competitive intelligence across digital platforms, including Nielsen, SimilarWeb,Similarweb and App Annie;Data AI;
Analytical services companies that provide customers with detailed information ofabout behavior on their own websites, including Adobe Analytics, IBM Digital Analytics and WebTrends Inc.;
Companies that report Smart TV data such as Vizio, AlphonsoLG, Samsung and Samba TV; and
Companies that provide consumers with TV and digital services such as AT&TDirecTV and Comcast.
We compete based on the following principal competitive factors:
theThe ability to provide accurate measurement of digital audiences across multiple digital platforms;
theThe ability to provide TV audience measurement based on near-censuslarge-scale data that increases accuracy and reduces variability;
theThe ability to provide de-duplicateddeduplicated audience measurement across platforms;
theThe ability to provide actual, accurate and reliable data regarding audience behavior and activity in a timely manner, including the ability to maintain large and statistically representative panels;
theThe ability to provide reliable and objective third-party data that, as needed, is able to receive industry-accepted accreditation;
theThe ability to adapt product offerings to emerging digital media technologies and standards;
the
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The breadth and depth of products and their flexibility and ease of use;
theThe availability of data across various industry verticals and geographic areas and expertise across these verticals and in these geographic areas; and
theThe ability to offer products that meet the changing needs of customers.customers, particularly in the evolving privacy environment.
We believe we compete favorably on these factors and that our innovative culturevision and investments in meetingthe future industry needsof media measurement across platforms will deliver products and services that our customers will continue to purchase.trust and value.
Government Regulation and Privacy
U.S.Data security and international privacy and data security laws apply to our various businesses. We have programs in place to detect, contain and respond to data security incidents; however, increasing technology risks or unauthorized users who successfully breach our network security could misappropriate or misuse our proprietary information or cause interruptions in our services. Many countries have more stringent data protection laws with different requirements than those in the U.S., and thismany states in the U.S. have or are developing their own data protection and privacy requirements. This may result in inconsistent requirements and differing interpretations across jurisdictions.
Governments, privacy advocates and class action attorneys are increasingly scrutinizing how companies collect, process, use, store, share and transmit personal data. NewA number of laws such ashave recently come into effect, and there are proposals pending before federal, state and foreign legislative and regulatory bodies that have affected and are likely to continue to affect our business. For example, the European Union's ("EU") General Data Protection Regulation, ("GDPR")or GDPR, became effective in Europe2018, imposing more stringent EU data protection requirements and industry self-regulatory codesproviding for greater penalties for noncompliance. In addition, regulators in the EU, the U.S. and elsewhere are increasingly focused on transparency, consent, consumer choice and the collection of data using tracking technologies. In the EU, cross-border data transfers are increasingly scrutinized to ensure compliance, and there have been enacted, and more are being considered that will affect our ability (and our customers’ ability) to reach current and prospective customers, to respond to individual customer requests under theexpanded enforcement efforts in this area. Five U.S. states now have comprehensive privacy laws and to implement our business models effectively. The GDPR is scheduled to take effect in May 2018 and includes additional requirements regardinggoverning the collection and handlinguse of individuals’ personal data.information. The California Consumer Privacy Act, which went into effect in 2020, was substantially expanded by the California Privacy Rights Act of 2020, which went into effect in January 2023. The Virginia Consumer Data Protection Act, the Colorado Privacy Act, the Connecticut Data Privacy Act and the Utah Consumer Privacy Act all came into effect or will come into effect in 2023. These U.S. federal and state and foreign laws and regulations, which in some cases can be enforced by private parties in addition to government entities, are constantly evolving and impose new and complex requirements on our business. Failure to meet the GDPRcomply with these laws or other privacy, data collection, data transfer or consent requirements, or privacy requirements in other jurisdictions, could result in substantial penalties. comScore participates in the EU-U.S. Privacy Shield Frameworkpenalties and the Swiss-U.S. Privacy Shield Framework as set forth by the U.S. Department of Commerce regarding the collection, use, and retention of personal information transferred from the European Economic Area and Switzerland to the U.S. 

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reputational harm.
We also monitor actions by the Federal Communications Commission, and the Federal Trade Commission, and their state and foreign counterparts, including regulatory developments affecting Internet Service Providers. ParticipationProviders, advertisers and other industry participants.
Human Capital Management
Our management of human capital is essential to the success of our company, and our management team is actively engaged in developing a strong, engaged team to execute on our research panelsbusiness plans.
As of January 31, 2023, we had 1,382 employees and 174 contingent providers/contractors. Our employee population, which is voluntary or “opt-in.”comprised 94% of full-time employees and 6% of part-time employees, is dispersed across the globe, as outlined below as of December 31, 2022.
Percent of Employees
North America61%
Asia-Pacific Rim17%
Europe12%
Latin America10%
The following table outlines the percentage of employees in different functional areas as of December 31, 2022:
Percent of Employees
Product and Technology52%
Sales and Service23%
Movies15%
General and Administrative10%

Employee Engagement & Retention
The development, attraction and retention of talent is critical to the success of our business. We recognizefocus on building employee engagement; developing a positive culture of trust, transparency, learning, and involvement; and competitive pay and benefits
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structures to attract and retain employees and protect the importanceintellectual capital that we have built. We regularly review our employee turnover and satisfaction rates, and develop strategies and tactics to improve employee engagement and retention. On average, employee tenure is approximately five years, and more than 10% of privacy,our employees have been employed by our company for more than ten years.
We seek to attract and retain the best talent from a diverse group of sources around the world, in order to meet our current and future staffing needs. In addition to a robust employee referral practice and independent outreach, we have developed relationships with universities, professional associations, and industry alliances to further increase our outreach and talent pool. In 2022, our company conducted hiring in North America, Europe, India, and Latin America.
Where feasible within the countries in which we operate, we provide a competitive and varied portfolio of healthcare, wellness, financial, and other benefit offerings to suit the diverse needs and lifestyles of our employees. Within the United States, 84% of our employee population was enrolled in one of our healthcare plans as of December 31, 2022.
We provide virtual, on-demand learning opportunities to all employees, and we also develop and deliver custom learning programs to meet specific business needs and employee interests. In 2022, approximately 80% of our employees participated in learning activities through the on-demand portal.
We believe we have strong labor practices and employee-friendly policies that enable a culture of trust, collaboration, and compliance. Our employment standards begin and end with respect for the dignity and worth of each person. Employees have multiple avenues through which to express opinions, ideas, and concerns, which enables an open culture of communication and inclusion; our policies require that participants consent to our privacycomplaints are investigated and data security practices before our software collects information on the user’s online activity. Where we receive data from third-party service providers, we require such providers to meet privacy and data security standards set forth in our contracts with them, including a requirement to obtain appropriate consent. Our policies and protocolsany findings are designed to be consistent with the American Institute of Certified Public Accountants, Inc. ("AICPA") and the Canadian Institute of Chartered Accountants ("CICA") Trust Service Principles criteria for online privacy.
Employees
As of February 28, 2018, we had approximately 1,830 employees and we believe our employee relations are good.addressed. Our employees are not represented by labor unions outside of those few countries where union representation is a mandatorycustomary practice forof doing business. The Company operates a Compliance Management System, a key component of which is mandatory training for all employees in areas including workplace harassment and our code of business conduct.
Work Environment
We believe we have created a work environment, whether in person or virtually, that represents our commitment to safety and wellness. We provide both system and technology capability as well as personal support, including wellness activities and resources, virtual social activities, and support for working parents. Supporting the person, not just the "worker," allows us to maintain business operations without endangering employees or customers. We had no safety incidents reported in 2022.
Diversity and Inclusion
We strive to build and develop a workforce that reflects diversity, equity, and inclusion at all levels of the organization. As of December 31, 2022, over 40% of our global workforce was female and approximately 40% of our executive leaders were female. Within the United States, more than 30% of our employees identified as a person of color or as other than white. Our view is that our culture of involvement and appreciation of others enables us to more fully develop and leverage the strengths of our workforce to meet our business objectives. We place a high value on inclusion and employee-led opportunities across the Company, including the Employee Resource Groups ("ERGs") which are sponsored by senior leadership but are developed and maintained by diverse groups of employees who share or champion common interests, representations, or causes. We currently have ERGs in support of LGBTQ+ persons, people of color, women, young professionals, and remote workers. We have amplified our conversation and actions relating specifically to inclusion and diversity in the last year, taking a more active executive stance and implementing learning and development initiatives, additional ERGs, virtual employee gatherings and activities, and talent acquisition opportunities.
Locations and Geographic Areas
We are strategically located around the globe with employees in 2017 countries. Our primary geographic markets aremarket is the U.S., Canada,United States, followed by Asia, Europe, Latin America and Asia.Canada. For information with respect to oursales by geographic markets, refer to Footnote 164, Geographic InformationRevenue Recognition, of the Notes to Consolidated Financial Statements.
Executive Officers and Directors
Executive Officers
Jonathan (Jon) Carpenter has served as our Chief Executive Officer since July 2022 and was our Chief Financial Officer and Treasurer from November 2021 to July 2022. Mr. Carpenter previously served as Chief Financial Officer of Publishers Clearing House, a direct marketing and media company, from June 2016 until November 2021. Prior to Publishers Clearing House, he served in divisional CFO roles for Nielsen Company, Sears Holdings and NBC Universal. He began his career with General Electric in the GE Financial Management Program. Mr. Carpenter holds a bachelor's degree in economics from the University of Vermont.
Mary Margaret Curry has served as our Chief Financial Officer and Treasurer since July 2022 and as our Chief Accounting Officer since December 2021. Ms. Curry joined Comscore in 2011 and has served in roles of increasing scope and responsibility since then, including as Global Tax Director (August 2011 to July 2015), Senior Director of Global Tax Compliance and Reporting (July 2015 to May 2018), Vice President of Tax and Treasury (May 2018 to November 2020) and Senior Vice President and Controller (November
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2020 to December 2021). Prior to joining Comscore, she spent nine years with KPMG. Ms. Curry holds bachelor's and master's degrees in accounting from East Carolina University and is a Certified Public Accountant.
David Algranati has served as our Chief Innovation Officer since August 2022. Dr. Algranati was our Chief Product Officer from May 2019 to August 2022 and our Senior Vice President, Product Management from January 2016 to May 2019. He previously served as Senior Vice President, Product Innovation and Custom Research at Rentrak Corporation from July 2011 until our merger with Rentrak in January 2016. Prior to Rentrak, he held various roles with Simmons Market Research and Experian. Dr. Algranati holds a bachelor's degree in political science from The George Washington University, master's degrees in statistics and public policy from Carnegie Mellon University, and a doctorate in statistics and public policy from Carnegie Mellon University.
Gregory (Greg) Dale has served as our Chief Operating Officer since August 2022 and was our General Manager, Digital from December 2021 to August 2022. Mr. Dale previously served as Chief Operating Officer of Shareablee, Inc., a social media marketing analytics company, from July 2018 through our acquisition of Shareablee in December 2021. Prior to Shareablee, he was Chief Operating Officer of Persado, an artificial intelligence-based marketing content platform, from April 2016 to February 2018. Mr. Dale previously held senior roles with Comscore from 1999 to 2016, and prior to that, worked with data and analytics firm Information Resources, Inc. He holds a bachelor's degree from Purdue University.
Non-Executive Directors
Nana Banerjee has served as Chairman of the Board since July 2022 and as a director since March 2021. Dr. Banerjee serves as a senior advisor to the CEO of Cerberus Capital Management, a private equity firm, since September 2021. He also serves on the Board of multiple Cerberus portfolio companies. From March 2020 to September 2021, he served as a Senior Managing Director of Cerberus Global Technology Solutions. Dr. Banerjee brings extensive experience in leading, innovating and scaling analytics and technology businesses globally. Prior to joining Cerberus, he served as the President and CEO of McGraw-Hill, an education solutions company, and a member of its Board of Directors from April 2018 to October 2019. From September 2012 to March 2018, he was Group President and an Executive Officer of Verisk Analytics, a data analytics company, with responsibility for its high-growth businesses as well as oversight responsibility for its joint data and development environment and its centralized AI and advanced analytics organizations. He joined Verisk as part of its acquisition of Argus Information and Advisory Services, where he was CEO, and co-president and chief operating officer in prior roles. In other prior roles, Dr. Banerjee served as head of Citibank's credit card business in the United Kingdom and as vice president of marketing and analytics at GE Capital. Dr. Banerjee has a Ph.D. in applied mathematics from the State University of New York, a M.S. degree in mathematics from the Indian Institute of Technology, Delhi, and a B.S. degree with honors in mathematics from St. Stephens College, Delhi. Dr. Banerjee's extensive experience in analytics and technology enable him to bring valuable perspective to our Board.
Itzhak Fisher has served as a director since March 2021. Mr. Fisher is the Chairman and founder (2014 to present) of Pereg Ventures, a venture capital fund that invests in B2B information services businesses across the United States and Israel. Previously, he served as the EVP of global product, strategy and business development at Nielsen, as founder and Executive Chairman of Trendum, and as President and CEO of RSL Communications, where he built a telecommunications company that operated in over 20 countries and generated more than $1.5 billion in revenues. Mr. Fisher received a B.S. in Computer Science from New York Institute of Technology and completed advanced studies in computer science at New York University. He served on the board of directors of SITO Mobile from June 2017 to July 2018. His other affiliations include the Strategic Advisory Group, Goldman Sachs; Advisory Board, NYU Courant Institute of Mathematical Sciences; and President's Council, Tufts University. Mr. Fisher brings to our Board substantial experience in creating, operating and investing in digital, media and retail companies.
Leslie Gillin has served as a director since January 2023. Ms. Gillin is Chief Growth Officer of Pagaya Technologies, a financial technology company, where she oversees global growth strategy, business development, marketing, public relations and external communications. She joined Pagaya in October 2021 from JPMorgan Chase, where she served as Chief Marketing Officer of the firm (December 2019 to April 2021) and prior to that was President of Chase's CoBrand Cards Services (February 2017 to December 2019). Ms. Gillin has also held senior executive leadership positions at Bank of America, Citi and MBNA, including leadership roles in Canada and Europe. She has been recognized as a Top 50 Women Leaders by Women We Admire in 2022, as one of 2022's Top 25 Women Leaders in Financial Technology by The Financial Technology Report, honored as a Woman of the Year 2022 by The Stevie Awards' Women in Business and a Top 25 CMO to Watch by Business Insider in 2020. Ms. Gillin serves on the board of directors of Establishment Labs, a Nasdaq-listed women's biotech company, and has served on the board of The Ad Council, MasterCard UK Forum, the Philadelphia International Council of the Arts, The Please Touch Museum and the Delaware Bankers Association. She holds a degree in international relations and Spanish from the University of Delaware and also attended the University of Salamanca. Ms. Gillin brings a strong background in buy-side media analytics, marketing and financial services to our Board.
David Kline has served as a director since March 2021. Mr. Kline is Executive Vice President at Charter Communications, a communications and media company, and President of Spectrum Reach, the advertising sales division of Charter. Mr. Kline joined Charter in 2015 and provides strategic leadership to guide the company in both the traditional and advanced TV advertising space. Mr. Kline joined Charter from Visible World (now FreeWheel), where he served as President and COO directing their household addressable sales and programmatic advertising efforts. Earlier in his career, he served as President and COO of Cablevision Media Sales (now Altice Media Solutions) for more than 17 years. Mr. Kline serves on the board of directors for the Video Advertising Bureau and private companies Ampersand, Blockgraph (where he was appointed Chairman in April 2022) and Canoe. He received a
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B.A. in a personalized study program focusing on marketing, finance, accounting and management from Ohio State University. Mr. Kline is a pioneering leader in the traditional and advanced TV advertising space and brings valuable relationships and perspective to our Board.
Pierre Liduena has served as a director since April 2021. Mr. Liduena is Group Vice President, Business Development at Charter Communications, a communications and media company, where he manages strategic partnerships for Charter. Prior to this he was Vice President, Corporate Development at Charter, where he managed M&A and Corporate Ventures activities. Prior to joining Charter in 2012, Mr. Liduena worked at UBS in the Technology, Media & Telecom investment banking group, and at EY in the Audit and Transaction Advisory groups. Mr. Liduena holds a Master in Management from EDHEC Business School in France, and an M.B.A. from the Wharton School of the University of Pennsylvania. In addition, he is a graduate of the Cable Executive Management program at Harvard Business School. Mr. Liduena brings to our Board financial expertise and substantial M&A and industry experience.
William (Bill) Livek has served as our Vice Chairman since January 2016. Mr. Livek was our Chief Executive Officer from November 2019 to July 2022 and our President from January 2016 to May 2018. He previously served as Vice Chairman and Chief Executive Officer of Rentrak Corporation, a media measurement and consumer targeting company, from June 2009 until our merger with Rentrak in January 2016. Prior to Rentrak, Mr. Livek was founder and Chief Executive Officer of Symmetrical Capital, an investment and consulting firm; Senior Vice President, Strategic Alliances and International Expansion, of Experian Information Solutions, Inc., a provider of information, analytical and marketing services; and co-President of Experian's subsidiary Experian Research Services. Mr. Livek has served on the board of directors of the Advertising Research Foundation ("ARF") since July 2022, and prior to that was a member of the ARF board of trustees. He holds a B.S. degree in Communications Radio/Television from Southern Illinois University. Mr. Livek brings substantial industry experience and audience measurement expertise to our Board.
Kathleen (Kathi) Love has served as a director since April 2019. Ms. Love is currently the CEO of Motherwell Resources LLC, a company devoted to management consulting and executive coaching. Prior to founding Motherwell in 2013, Ms. Love served as the President and CEO of GFK MRI (formerly Mediamark Research). MRI produced audience ratings for the consumer magazine industry in the United States, along with offering a projectable database on the demographics, attitudes, activities and buying behaviors of the U.S. consumer. MRI also developed and sold various software products. In 2018, Ms. Love was inducted into the Market Research Council Hall of Fame. Prior to joining MRI, Ms. Love held executive positions at The New York Times, EMAP Publishing and The Magazine Publishers of America. She has been an adjunct or guest instructor at Rutgers University, Brooklyn College and Queens College. Ms. Love holds a B.A. degree from Douglass College, Rutgers – The State University, an M.A. from Michigan State University and an M.Phil. from The Graduate Center, C.U.N.Y. She has advanced to candidacy for a Ph.D. in psychology and is a professional certified executive coach (PCC) and a member of the International Coach Federation (ICF). She has served on the board of directors of the Advertising Research Foundation, The Media Behavior Institute and the Market Research Council, of which she is past President. She sits on the board of the Associate Alumnae of Douglass College and serves as the treasurer and on the investment committee. She also uses her coaching skills during pro bono work at the Atlas School for Autism.
Martin (Marty) Patterson has served as a director since March 2021. Mr. Patterson currently serves as Vice President of Liberty Media Corporation, Qurate Retail, Inc., Liberty TripAdvisor Holdings, Inc. and Liberty Broadband Corporation. He has been with Liberty Media Corporation, a media, communications and entertainment company, and its predecessors since 2010. Mr. Patterson currently serves as a director of Skyhook Wireless, Inc. and was formerly a director of Ideiasnet S.A. He received his B.A. from Colorado College and is a CFA Charterholder. Mr. Patterson brings to our Board extensive experience identifying and evaluating investment opportunities in the technology, media and telecommunications sectors.
Brent Rosenthal has served as Lead Director since July 2022 and as a director since January 2016. He served as Chairman of the Board from April 2018 to July 2022. Mr. Rosenthal is the Founder of Mountain Hawk Capital Partners, LLC, an investment fund focused on small and microcap equities in the technology, media, telecom (TMT) and food industries. Mr. Rosenthal has been the Lead Independent Director/Non-Executive Chairman of the board of directors of RiceBran Technologies, a food company, since July 2016 and served as an advisor to the board of directors and executive management of FLYHT Aerospace from December 2019 to June 2020 and as a member of the FLYHT Aerospace board of directors since June 2020. He also served on the board of directors of SITO Mobile, Ltd., a mobile location-based media platform, from August 2016 to July 2018, and as Non-Executive Chairman of its board of directors from June 2017 to July 2018. Previously, Mr. Rosenthal was a Partner in affiliates of W.R. Huff Asset Management where he worked from 2002 to 2016. Mr. Rosenthal served as the Non-Executive Chairman of Rentrak Corporation from 2011 to 2016. He was Special Advisor to the board of directors of Park City Group from November 2015 to February 2018. Mr. Rosenthal earned his B.S. from Lehigh University and M.B.A. from the S.C. Johnson Graduate School of Management at Cornell University. He is an inactive Certified Public Accountant. Mr. Rosenthal brings to our Board financial expertise and experience in the media and information industries.
Brian Wendling has served as a director since March 2021. Mr. Wendling is Chief Accounting Officer and Principal Financial Officer of Liberty Media Corporation, Qurate Retail, Inc. and Liberty Broadband Corporation. He is also Senior Vice President and Chief Financial Officer of Liberty TripAdvisor Holdings, Inc. Mr. Wendling has held various positions with these companies and their predecessors since 1999. Prior to joining these companies, he worked in the assurance practice of the accounting firm KPMG. Mr. Wendling has previously served on the boards of Fun Technologies Inc. and CommerceHub, Inc. He also serves on the board of
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Clothes to Kids of Colorado. He received his Bachelor of Science degree in accounting from Indiana University. Mr. Wendling brings over 25 years of accounting, public reporting and compliance experience to our Board.
Available Information
We make our periodic and current reports along with amendments to such reports available, free of charge, on our website as soon as reasonably practicable after such material is electronically filed with or furnished to the SEC.Securities and Exchange Commission ("SEC"). Our website address is www.comscore.com, and such reports are filedmade available free of charge under “SEC Filings” on"SEC Filings" in the Investor Relations section of our website. Information contained on our website is not part of this 10-K and is not incorporated herein by reference.
You can read our SEC filings, including this annual report10-K as well as our other periodic and current reports, on the SEC’sSEC's website at www.sec.gov. You may also read and copy any document we file with the SEC at its public reference facilities at 100 F Street, N.E., Room 1580, Washington, D.C. 20549. You may also obtain copies of the documents at prescribed rates by writing to the Public Reference Section of the SEC at 100 F Street, N.E., Room 1580, Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for further information on the operation of the public reference facilities.


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ITEM 1A.RISK FACTORS
An investment in our Common Stock involves a substantial risk of loss. You should carefully consider thesethe following risk factors, together with all of the other information included herewith,in this 10-K, before you decide whether to invest in shares of our Common Stock.stock. The occurrence of any of the following risks identified below could materially and adversely affect our business, financial condition orand operating results. In that case, the trading price of our Common Stock could decline, and you maycould lose part or all of your investment.
Risks Related The risks described below are not the only risks we face. Additional risks and uncertainties not currently known to Our Audit Committee Investigationus or that we currently deem to be immaterial also may materially and Subsequent Management Review, Consolidated Financial Statements, Internal Controls and Related Matters
We have identified deficiencies in our internal control over financial reporting which resulted in material weaknesses in our internal control over financial reporting and have concluded that our internal control over financial reporting and our disclosure controls and procedures were not effective as of December 31, 2017. If we fail to properly remediate these or any future material weaknesses or deficiencies or to maintain proper and effective internal controls, further material misstatements in our financial statements could occur and impair our ability to produce accurate and timely financial statements and could adversely affect investor confidence in our financial reports, which could negatively affect our business.
We have concluded that our internal control over financial reporting was not effective as of December 31, 2017 due to the existence of material weaknesses in such controls, and we have also concluded that our disclosure controls and procedures were not effective as of December 31, 2017 due to material weaknesses in our control over financial reporting, all as described in Item 9A, “Controls and Procedures,” of this 10-K. While we initiated meaningful remediation efforts during 2016 and 2017 to address the identified weaknesses, we were not able to fully remediate our material weaknesses in internal controls as of December 31, 2017, and we cannot provide assurance that our remediation efforts will be adequate to allow us to conclude that such controls will be effective as of December 31, 2018. We also cannot assure you that additional material weaknesses in our internal control over financial reporting will not arise or be identified in the future. We intend to continue our control remediation activities and to continue to improve our operational, information technology, financial systems, and infrastructure procedures and controls, as well as to continue to expand, train, retain and manage our personnel who are essential to effective internal controls. In doing so, we will continue to incur expenses and expend management time on compliance-related issues.
If our remediation measures are insufficient to address the identified deficiencies, or if additional deficiencies in our internal control over financial reporting are discovered or occur in the future, our consolidated financial statements may contain material misstatements and we could be required to restate our financial results. Moreover, because of the inherent limitations of any control system, material misstatements due to error or fraud may not be prevented or detected on a timely basis, or at all. If we are unable to provide reliable and timely financial reports in the future, our business, financial condition and reputation may be further harmed. Restated financial statements and failures in internal controls may also cause us to fail to meet reporting obligations, negatively affect investor confidence in our management and the accuracy of our financial statements and disclosures, or result in adverse publicity and concerns from investors, any of which could have a negative effect on the price of our Common Stock, subject us to further regulatory investigations and penalties or shareholder litigation, and materially adversely impact our business and financial condition.
The accounting review of our previously issued Consolidated Financial Statements and the audits of years ended 2015, 2016 and 2017 have been time-consuming and expensive,operating results, and may result in additional expense.the loss of part or all of your investment.
We have incurred significant expenses, including audit, legal, consulting and other professional fees, in connection with the Audit Committee’s investigation, the review of our accounting, the audits and the ongoing remediation of deficiencies in our internal control over financial reporting. Specifically, in connection with the Company’s investigation, audit and compliance efforts and related litigation, the Company incurred various legal and accounting expenses in the amount of $83.4 million and $46.6 million during the years ended 2017 and 2016, respectively. As described above, we have takenSummary Risk Factors
Our business is subject to a number of steps in order to strengthen our accounting function and attempt to reduce the risk of future recurrence and errors in accounting determinations. To the extent these steps are not successful, we could be forced to incur significant additional time and expense. The incurrence of significant additional expense, or the requirementrisks, including risks that management devote significant time that could reduce the time available to execute onmay prevent us from achieving our business strategies, could have a material adverse effect on our business, results of operations and financial condition.

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We and certain of our current and former officers and directors have been named in shareholder class action lawsuits and derivative lawsuits related to the merger with Rentrak and circumstances that gave rise to our restatement and extended filing delay in filing our periodic reports with the SEC, and may be named in further litigation, government investigations and proceedings, which could require significant additional management time and attention, result in significant additional legal expenses or result in government enforcement actions, any of which could have a material adverse impact on our results of operations, financial condition, liquidity and cash flows.
We and certain of our current and former officers and directors have been named in shareholder class action lawsuits and derivative lawsuits relating to the merger with Rentrak and the matters identified in the Audit Committee’s investigation and audit and compliance efforts, and may become subject to further litigation, government investigations or proceedings arising out of the restatement. The pending litigation and settlements have been, and any future litigation, investigation or other actions that may be filed or initiated against us or our current or former officers or directors may be, time consuming and expensive. We cannot predict what losses we may incur in these litigation matters, and contingencies related to our obligations under the federal and state securities laws, or in other legal proceedings or governmental investigations or proceedings related to the restatement.
To date, we have incurred significant costs in connection with pending litigation. Any legal proceedings, if decided adversely to us, could result in significant monetary damages, penalties and reputational harm, and will likely involve significant defense and other costs. We have entered into indemnification agreements with each of our directors and certain of our officers, and our amended and restated certificate of incorporation requires us to indemnify each of our directors and officers, to the fullest extent permitted by Delaware law, who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding by reason of the fact that he or she is or was a director or officer of the Company. Although we maintain insurance coverage in amounts and with deductibles that we believe are appropriate for our operations, our insurance coverage may not cover all claims that have beenobjectives or may be brought against us, and insurance coverage may not continue to be available to us at a reasonable cost. As a result, we have been and may continue to be exposed to substantial uninsured liabilities, including pursuant to our indemnification obligations, which could materially adversely affect our business, prospects,financial condition, results of operations, cash flows and financial condition.
Although we have completed the restatement, we cannot guarantee that we willprospects. These risks are discussed more fully below and include, but are not receive inquiries from the SEC, Nasdaq or other regulatory authorities regarding our restated financial statements or matters relating thereto, or that we will not be subject to future claims, investigations or proceedings. Any future inquiries from the SEC, Nasdaq or other regulatory authority, or future claims or proceedings as a result of the restatement or any related regulatory investigation will, regardless of the outcome, likely consume a significant amount of our internal resources and result in additional legal and accounting costs.limited to:
For additional discussion of these matters, refer to Item 3, “Legal Proceedings and Footnote 11, Commitments and Contingencies of the Notes to Consolidated Financial Statements.
We cannot assure you that our Common Stock will be relisted, or that once relisted, it will remain listed.
As a result of the delay in filing our periodic reports with the SEC, we were unable to comply with the listing standards of Nasdaq and our Common Stock was suspended from trading on The Nasdaq Global Select Market effective February 8, 2017 and formally delisted effective May 30, 2017. Following the filing of our delayed periodic reports, we intend to apply to relist our Common Stock. However, while we are working expeditiously to relist our Common Stock, no assurances can be provided that we will be able to do so in an expeditious manner or at all. If we are unable to relist our Common Stock, or even if our Common Stock is relisted, no assurance can be provided that an active trading market will develop or, if one develops, will continue. The lack of an active trading market may limit the liquidity of an investment in our Common Stock, meaning you may not be able to sell any shares of Common Stock you own at times, or at prices, attractive to you. Any of these factors may materially adversely affect the price of our Common Stock.
Matters relating to or arising from the restatement and the Audit Committee’s investigation into our internal control over financial reporting, including adverse publicity and potential concerns from our customers, have had and could continue to have an adverse effect on our business and financial condition.
We have been and could continue to be the subject of negative publicity focusing on the restatement and adjustment of our financial statements, and may be adversely impacted by negative reactions from our customers or others with whom we do business. Concerns include the perception of the effort required to address our accounting and control environment and the ability for us to be a long-term provider to our customers. The continued occurrence of any of the foregoing could harm our business and have an adverse effect on our financial condition.

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Risks Related to Our Business and Our Technologies
Macroeconomic factors could negatively impact demand for our products and increase our costs.
The market for media measurement and analyticsour products is highly competitive, and our revenues could decline if we cannot compete effectively, our revenues could decline and our business could be harmed.effectively.
The market for audience and advertising measurement products is highly competitive and is evolving rapidly. We compete primarily with providers of media intelligence and related analytical products and services. We also compete with providers of marketing services and solutions, with full-service survey providers, and with internal solutions developed by customers and potential customers.
Some of our competitors have longer operating histories, access to larger customer bases and substantially greater resources than we do. As a result, these competitors may be able to devote greater resources to marketing and promotional campaigns, panel retention, panel development or development of systems and technologies than we can. In addition, some of our competitors may adopt more aggressive pricing policies or have started to provide some services at no cost.
Furthermore, large software companies, internet portals and database management companies may enter our market or enhance their current offerings, either by developing competing services or by acquiring our competitors, and could leverage their significant resources and pre-existing relationships with our current and potential customers. Finally, consolidation of our competitors could make it difficult for us to compete effectively.
If we are unable to compete successfully against our current and future competitors, we may not be able to retain and acquire customers, and we may consequently experience a decline in revenues, reduced operating margins, loss of market share and diminished value from our products.
The market for cross-platform products is developing, and if it does not develop further, or develops more slowly than expected, our business could be harmed.
The market for cross-platform products is still developing, and it is uncertain whether these products will achieve or maintain high levels of demand and increased market acceptance. Our success will depend to a substantial extent on the willingness of companies to increase their use of such products and to continue use of such products on a long-term basis. Factors that may affect market acceptance include:
the reliability of cross-platform products;
decisions of our customers and potential customers to develop cross-platform solutions internally rather than purchasing such products from third-party suppliers like us;
decisions by industry associations in the U.S. or in other countries that result in association-directed awards, on behalf of their members, of digital measurement contracts to one or a limited number of competitive vendors;
the rate of growth in e-commerce and mobile commerce ("m-commerce"), cross-platform focused advertising and continued growth in television and digital media consumption; and
public and regulatory concern regarding privacy and data security.
The adoption of advertising across television and digital platforms, particularly by advertisers that have historically relied on traditional offline media, requires the acceptance of new approaches to conducting business and a willingness to invest in such new approaches. Moreover, the decision to adopt a cross-platform approach to buying advertisement campaigns requires a change to buying approaches and a willingness to adopt new data analytics to assist in evaluating such approaches by advertisement buyers who traditionally focus on buying advertising campaigns through one medium. Advertisers may perceive such new approaches to advertising or understanding advertising to be less effective than traditional methods for marketing their products. They may also be unwilling to pay premium rates for advertising that is targeted at specific segments of validated users based on their demographic profile or internet behavior across digital media platforms. The digital media advertising and e-commerce markets may also be adversely affected by privacy issues relating to such targeted advertising, including that which makes use of personalized information or online behavioral information. Because of the foregoing factors, among others, the market for cross-platform focused digital media advertising and e-commerce may not continue to grow at significant rates. If these markets do not continue to develop, or if they develop more slowly than expected, our business could suffer.
If we are unable to provide cross-platformcomplete analytics, or if our cross-platform analytics are incomplete, our ability to maintain and grow our business may be harmed.
As the media and advertising industries increasingly evaluate advertising campaigns across various forms of media, such as television, online, and mobile, the ability to measure the combined size and composition of audiences across platforms is increasingly important and in demand.

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If we are unable to gain access to information measuring a media component or type, or if we are unable to do so on commercially reasonable terms, our ability to meet our customers' demands and our business and financial performance may be harmed. Furthermore, even if we do have access to cross-platform data, if we have insufficient technology, encounter challenges in our methodological approaches or inadequate source materials to parse the information across such media components to avoid duplications or to do so in a cost-effective manner, our products may be inferior to other offerings, and we may be unable to meet our customers' demands. In such event, our business and financial performance may be harmed.
In particular, our acquisition of television data may be reliant on companies that have historically held a dominant market position measuring television to produce industry-accepted measurement across a combination of media platforms. Our competitors, such as Nielsen, or other providers may have more leverage with data providers and may be unable or unwilling to provide us with access to quality data to support our cross-platform products. Likewise, our acquisition of digital data may be reliant on large digital publishers that may technologically or legally prevent access to their proprietary platforms for research or measurement purposes. Moreover, as mobile devices and technology continue to proliferate, gaining cost-effective access to mobile data will become increasingly critical, and the difficulty in accessing these forms of data will continue to grow. If we are unable to acquire data effectively and efficiently, or if the cost of data acquisition increases, our business, financial condition and results of operations may be harmed.
We depend on third parties for data and hosting/delivery services that isare critical to our business, and our business could suffer if we cannot continue to obtain reliable data from these suppliers or if third parties place additional restrictions on our use of such data.business.
We rely on third-party data sources for information usage across the media platforms that we measure, as well as demographics about the people that use such platforms. The availability and accuracy of this data is important to the continuation and development of our products. These suppliers of data may increase restrictions on our use of such data, fail to adhere to our quality control standards or otherwise satisfactorily perform services, increase the price they charge us for the data or refuse to license the data to us. Additional restrictions on third-party data could limit our ability to include that data in certain products, which could lead to decreased commercial opportunities for certain products.  To comply with any additional restrictions, we may be required to implement certain additional technological and manual controls that could put pressure on our cost structure and could affect our pricing. Supplier consolidation and increased pricing for additional use cases could also put pressure on our cost structure. We may be required to enter into vendor relationships, strategic alliances, or joint ventures with some third parties in order to obtain access to the data sources that we need. If our partners do not apply rigorous standards to their data collection methodology and actions, notwithstanding our best efforts, we may receive third-party data that is inaccurate, defective, or delayed. If third-party information is not available to us on commercially reasonable terms, or is found to be inaccurate, it could harm our products, our reputation, and our business and financial performance.
If we fail to respond to technological developments or evolving industry standards, our products may become obsolete or less competitive.
Our future success will depend in part on our ability to develop new and modify or enhance our existing products and services, including without limitation, our data collection technologies and approaches, in order to meet customer needs, add functionality and address technological advancements. For example, if certain proprietary hand-held mobile devices become the primary mode of receiving content and conducting transactions on the internet, and we are unable to adapt to collect information from such devices, then we would not be able to report on digital usage activity. To remain competitive, we will need to develop new products that address these evolving technologies and standards across the universe of digital media including television, online, and mobile usage. However, we may be unsuccessful in identifying new product opportunities, developing or marketing new products in a timely or cost-effective manner, or obtaining the necessary access to data or technologies needed to support new products, or we may be limited in our ability to operate due to patents held by others. In addition, our product innovations may not achieve the market penetration or price levels necessary for profitability. If we are unable to develop timely enhancements to, and new features for, our existing methodologies or products or if we are unable to develop new products and technology that keep pace with rapid technological developments or changing industry standards, our products may become obsolete, less marketable and less competitive, and our business will be harmed.
Furthermore, the market for our products is characterized by changes in protocols and evolving industry standards. For example, industry associations such as the Advertising Research Foundation, the Council of American Survey Research Organizations, the Internet Advertising Bureau ("IAB"), and the Media Rating Council ("MRC") as well as internationally-based industry associations have independently initiated efforts to either review market research methodologies across the media that we measure or develop minimum standards for such research. Failure to achieve accreditation may adversely impact the market acceptance of our products. Meanwhile, successful accreditation may lead to costly changes to our procedures and methodologies.

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Our business may be harmed if we deliver or are perceived to deliver, inaccurate information products.
The metrics contained in our products may be viewed as an important measure of the success of certain businesses, especially those that utilize our metrics to evaluate a variety of investments ranging from their internal operations to advertising initiatives. If the information that we provide to our customers, the media, or the public is inaccurate or perceived to be inaccurate, whether due to inadequate methodological approaches, errors, biases towards certain available data sources or partners, defects or errors in data collection and processing (conducted by us or by third parties), or the systems used to collect, process or deliver data, our business may be harmed.
Any inaccuracy or perceived inaccuracy in the data reported by us could lead to consequences that could adversely impact our operating results, including:
loss of customers;
sales credits, refunds or liability to our customers;
the incurrence of substantial costs to correct any material defect or error;
increased warranty and insurance costs;
potential litigation;
interruptions in the availability of our products;
diversion of development resources;
lost or delayed market acceptance and sales of our products; and
damage to our brand.
Our business may be harmed if weuntimely information products, change our methodologies or the scope of information we collect.
We have in the past and may in the future change our methodologies, the methodologies of companies we acquire,collect, or the scope of information we collect. Such changes may result from identified deficiencies in current methodologies, development of more advanced methodologies, changes in our business plans, changes in technology used by websites, browsers, mobile applications, servers, or media we measure, integration of acquired companies or expressed or perceived needs of our customers or potential customers. Any such changes or perceived changes, or our inability to accurately or adequately communicate to our customers and the media such changes and the potential implications of such changes on the data we have published or will publish in the future, may result in customer dissatisfaction, particularly if certain information is no longer collected or information collected in future periods is not comparable with information collected in prior periods. As a result of future methodology changes, some of our customers that may also supply us with data may decide not to continue buying products or services from us or may decide to discontinue providing us with their server-side information to support our products. Such customers may elect to publicly air their dissatisfaction with the methodological changes made by us, which may damage our brand and harm our reputation.
If we are not ableunable to maintain panels of sufficient size and scope, or if the costs of establishing and maintaining our panels materially increase, our business could be harmed.panels.
We believe that the quality, size and scope of our research panels are critical to our business. There can be no assurance, however, that we will be able to maintain panels of sufficient size and scope to provide the quality of marketing intelligence that our customers demand from our products. We anticipate that the cost of panel recruitment will increase with the proliferation of proprietary and secure media content delivery platforms, and that the difficulty in collecting these forms of data will continue to grow, which may require significant hardware and software investments, as well as increases to our panel incentive and panel management costs.
We have historically established and/or acquired new panels. We plan to continue to make significant investments in our panels in the future. Our panel costs may significantly increase our cost of revenues in the future. To the extent that such additional expenses are not accompanied by increased revenues, our operating margins may be reduced and our financial results could be adversely affected.
We derive a significant portion of our revenues from sales ofsubscription-based products, and our subscription-based products. If our customers could terminate or fail to renew their subscriptions, our business could suffer.subscriptions.
We currently derive a significant portion of our revenues from our syndicated products, which are generally a one-year subscription based products. This has generally provided us with recurring revenue due to high renewal rates. If our customers terminate their subscriptions for our products, do not renew their subscriptions, delay renewals of their subscriptions or renew on terms less favorable to us, our revenues could decline and our business could suffer.
Our customers have no obligation to renew after the expiration of their initial subscription period, and we cannot be assured that current subscriptions will be renewed at the same or higher dollar amounts,financial results may suffer if at all. Furthermore, our new subscription products, for which revenue is recognized based on impressions used, may be subject to higher fluctuations in revenue.

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Our customer renewal rates may decline or fluctuate due to a number of factors, including customer satisfaction or dissatisfaction with our products, the costs or functionality of our products, the prices or functionality of products offered by our competitors, the health of the advertising marketplace, mergers and acquisitions affecting our customer base, general economic conditions or reductions in our customers’ spending levels.
Our growth depends upon our ability to retain existing large customers and add new large customers. To the extent we are not successful in doing so, our ability to attain profitability and positive cash flow may be impaired.
Our success depends in part on our ability to sell our products to large customers and on the renewal of these subscriptions and contracts to these customers in subsequent years. For the years ended 2017 and 2016, we derived 27% and 25%, respectively, of our total revenues from our top 10 customers. Uncertain economic conditions or other factors, such as the failure or consolidation of large customer companies, internal reorganization or changes in focus, or dissatisfaction with our products, may cause certain large customers to terminate or reduce their subscriptions and contracts with us. The loss of any one or more of these customers could decrease our revenues and harm our current and future operating results. The addition of new large customers or increases in sales to existing large customers may require particularly long implementation periods and other significant upfront costs, which may adversely affect our profitability. To compete effectively, we have in the past been, and may in the future be, forced to offer significant discounts to maintain existing customers or acquire other large customers. In addition, we may be forced to reduce or withdraw from our relationships with certain existing customers or refrain from acquiring certain new customers in order to acquire or maintain relationships with important large customers. As a result, new large customers or increased usage of our products by large customers may cause our profits to decline, and our ability to sell our products to other customers could be adversely affected.
If we are unable to effectivelyretain or add large customers or if we cannot persuade customers to buysubstitute our products in substitution for those of an incumbent service provider, our revenue growth may suffer.providers.
Some of our newer products require that we persuade prospective customers,Our acquisitions or customers of our existing products, to buy our newer products in substitution for those of an incumbent service provider. In some instances, the customer may have built their systems and processes around the incumbent provider's products. Persuading such customers to switch service providers may be difficult and require longer sales cycles, affecting our ability to increase revenue in these areas. Moreover, the incumbent service provider may have the ability to significantly discount its services or enter into long-term agreements, which could further impede our ability to persuade customers to switch service providers, and accordingly, our ability to increase our revenues.
We may expand through investments in, acquisitions of, or the development of new productspartnerships with assistance from, other companies any of which may not be successful and may divert our management’smanagement's attention.
InSystem failures, security breaches, delays in system operations, or failure to pass customer or partner security reviews may harm our business.
Our restructuring activities may not deliver the past, we completed several strategic acquisitions. We also may evaluateexpected results and enter into discussions regarding an array of potential strategic transactions, including acquiring complementary products, technologies or businesses.
An acquisition, investment or business relationship may result in unforeseen operating difficulties and expenditures. In particular, we may encounter difficulties integrating the businesses, technologies, products, personnel or operations of the acquired companies, particularly if the key personnel of the acquired company choose not to be employed by us, and we may have difficulty retaining the customers of any acquired business due to changes in management and ownership. Acquisitions may alsocould disrupt our ongoing business divert our resources and require significant management attention that would otherwise be available for ongoing development of our business. Moreover, we cannot assure you that the anticipated benefits of any acquisition, investment or business relationship would be realized timely, if at all, or that we would not be exposed to unknown liabilities. In connection with any such transaction, we may:operations.
encounter difficulties retaining key employees of the acquired company or integrating diverse business cultures;
incur large charges or substantial liabilities, including without limitation, liabilities associated with products or technologies accused or found to infringe third-party intellectual property rights or violate existing or future privacy regulations;
issue shares of our capital stock as part of the consideration, which may be dilutive to existing stockholders;
become subject to adverse tax consequences, legal disputes, substantial depreciation or deferred compensation charges;
use cash that we may otherwise need for ongoing or future operation of our business;
enter new geographic markets that subject us to different laws and regulations that may have an adverse impact on our business;
experience difficulties effectively utilizing acquired assets;
encounter difficulties integrating the information and financial reporting systems of acquired businesses, particularly those that operated under accounting principles other than those generally accepted in the U.S. prior to the acquisition by us; and
incur debt, which may be on terms unfavorable to us or that we are unable to repay.

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We also have entered into relationships with certain third-party providers to expand our product offerings, and may enter into similar arrangements in the future. These or other future relationships or transactions involve preferred or exclusive licenses, discount pricing or investments in other businesses to expand our sales capabilities. These transactions could be material to our financial condition and results of operations, and though these transactions may provide additional benefits, they may not be profitable immediately or in the long term. Negotiating any such transactions could be time-consuming, difficultable to adequately retain and expensive, and our ability to close these transactions may be subject to regulatory or other approvalshire qualified personnel.
The COVID-19 pandemic and other conditions that are beyond our control. Consequently, we can make no assurances that any such transactions, investments or relationships, if undertaken and announced, would be completed or successful.
The impact of any one or more of these factorsglobal events could materiallycontinue to adversely affect our business, financial condition or results of operations.business.
System failures or delays in the operation of our computer and communications systems may harm our business.
Our success depends on the efficient and uninterrupted operation of our computer and communications systems and the third-party data centers we use. Our ability to collect and report accurate data may be interrupted by a number of factors, including, the failure of our network or software systems, computer viruses, security breaches or variability in user traffic on customer websites. A failure of our network or data gathering procedures, or those of our third-party data suppliers, could impede the processing of data, cause the corruption or loss of data or prevent the timely delivery of our products.
In the future, we may need to expand our network and systems at a more rapid pace than we have in the past. Our network or systems may not be capable of meeting the demand for increased capacity, or we may incur additional unanticipated expenses to accommodate these capacity demands. In addition, we may lose valuable data, be unable to obtain or provide data on a timely basis or our network may temporarily shut down if we fail to adequately expand or maintain our network capabilities to meet future requirements. Any lapse in our ability to collect or transmit data may decrease the value of our products and prevent us from providing the data requested by our customers. Any disruption in our network processing or loss of internet user data may damage our reputation and result in the loss of customers and legal and regulatory action, and our business, financial condition and results of operations could be materially adversely affected.
We rely on a small number of third-party service providers to host and deliver our products, and any interruptions or delays in services from these third parties could impair the delivery of our products and harm our business.
We host our products and serve our customers from data center facilities located throughout the U.S. and Europe. While we operate our equipment inside these facilities, we do not control the operation of these facilities, and, depending on service level requirements and costs, we may not continue to operate or maintain redundant data center facilities for all of our products or for all of our data, which could increase our vulnerability. These facilities are vulnerable to damage or interruption from earthquakes, hurricanes, floods, fires, power loss, telecommunications failures and similar events. They are also subject to break-ins, computer viruses, sabotage, intentional acts of vandalism and other misconduct. A natural disaster or an act of terrorism, a decision to close the facilities without adequate notice, or other unanticipated problems could result in lengthy interruptions in availability of our products. We may also encounter capacity limitations at our third-party data centers. Additionally, our data center facility agreements are of limited durations, and our data center facilities have no obligation to renew their agreements with us on commercially reasonable terms, if at all. We believe that we have good relationships with our data center facility vendors and believe that we will be able to renew, or find alternative data center facilities, at commercially reasonable terms, although there can be no guarantee of this. If we are unable to renew our agreements with the owners of the facilities on commercially reasonable terms, or if we migrate to a new data center, we may experience delays in delivering our products until an agreement with another data center facility can be arranged or the migration to a new facility is completed.
If we or the third-party data centers that we use were to experience a major power outage, we would have to rely on back-up generators, which may not function properly, and their supply may be inadequate. Such a power outage could result in the disruption of our business. Additionally, if our current facilities fail to have sufficient cooling capacity or availability of electrical power, we would need to find alternative facilities.
We currently leverage a large content delivery network ("CDN"), to provide services that allow us to offer a more efficient tagging methodology. If that network faced unplanned outage or the service became immediately unavailable, an alternate CDN provider or additional capacity in our data centers would need to be established to support the large volume of tag requests that we currently manage, which would either require additional investments in equipment and facilities or a transition plan. This could unexpectedly raise our costs and could contribute to delays or losses in tag data that could affect the quality and reputation of our Media Metrix, vCE, and other data products that involve the measurement of a large amount of digitally transmitted activity across multiple providers.
Further, we depend on access to the internet through third-party bandwidth providers to operate our business. If we lose the services of one or more of our bandwidth providers for any reason, we could experience disruption in the delivery of our products or be required to retain the services of a replacement bandwidth provider. It may be difficult for us to replace any lost bandwidth on a timely basis, on commercially reasonable terms, or at all, due to the large amount of bandwidth our operations require.

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Any errors, defects, disruptions or other performance problems related to our products or the delivery of our services caused by third parties could reduce our revenues, harm our reputation, result in legal and regulatory actions and otherwise damage our business. Interruptions in the availability of our products and the delivery of our services may reduce our revenues due to increased turnaround time to complete projects, cause us to issue credits to customers, cause customers to terminate their agreements or adversely affect our renewal rates. Our business, financial condition and results of operations would be materially adversely affected if there were errors or delays in delivering our products or services, including for reasons beyond our control, and our reputation would be harmed if our customers or potential customers believe our products and services are unreliable.
We rely on our management team, many of whom are recent hires and may need additional personnel to operate and grow our business. The loss of one or more key employees, the inability to attract and retain qualified personnel, or the failure to integrate new personnel could harm our business.
Our success and future growth depends to a significant degree on the skills and continued services of our management team, many of whom are recent hires. Our future success also depends on our ability to retain, attract and motivate highly skilled technical, managerial, marketing and customer service personnel, including members of our management team. We may experience a loss of productivity due to the departure of key personnel and the associated loss of institutional knowledge, or while new personnel integrate into our business and transition into their respective roles. This transition may not ultimately be successful.
A substantial majority of our U.S. employees work for us on an at-will basis. We continually evaluate our personnel needs in all areas of our business, particularly in our sales, marketing, finance and technology development areas, both domestically and internationally, which could increase our recruiting and hiring costs in the foreseeable future. Competition for these types of personnel is intense, particularly in the internet and software industries. As a result of the delay in filing our periodic financial reports with the SEC and the expiration of our equity incentive plan in 2017, we have temporarily stopped granting equity awards to our employees.  In addition, we have restricted our employees from trading in our stock during the pendency of the filing delay.  Our inability to grant equity awards, and our employees’ inability to trade the Common Stock that they hold, poses a risk to our ability to successfully attract and retain qualified personnel. Our inability to retain and attract the necessary personnel could adversely affect our business.
Risks Related to Our Results of Operations
Our revenues and results of operations may fluctuate in the future. As a result, weWe may fail to meet or exceed the expectations of securities analysts or investors, which could cause our stock price to decline.
Our results of operations may fluctuate as a result of a variety of factors, many of which are outside of our control. If our revenues or results of operations do not meet or exceed the expectations of securities analysts or investors, the price of our Common Stock could decline substantially. Factors that may cause fluctuations in our revenues or results of operations include:
the uncertainties associated with the integration of acquired businesses and the cost and timing of organizational restructuring;
our ability to increase sales to existing customers and attract new customers;
the potential loss or reduction in spending by significant customers;
changes in our customers' subscription renewal behaviors and spending on projects;
the impact on our contract renewal rates caused by our customers’ budgetary constraints, competition, customer dissatisfaction, customer corporate restructuring or change in control, or our customers’ actual or perceived lack of need for our products;
the timing of contract renewals, delivery of products and duration of contracts and the corresponding timing of revenue recognition as well as the effects of revenue derived from recently-acquired companies;
variations in the demand for our products and the implementation cycles of our products by our customers;
the challenges of persuading existing and prospective customers to switch from incumbent service providers;
the timing of revenue recognition for usage-based or impression-based products;
the effect of revenues generated from significant one-time projects or the loss of such projects;
the timing and success of new product introductions by us or our competitors;
changes in our pricing and discounting policies or those of our competitors;
the impact of our decision to discontinue certain products;
our failure to accurately estimate or control costs - including those incurred as a result of investments, other business or product development initiatives, litigation, and the integration of acquisitions;
adverse judgments or settlements in legal disputes;

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the amount and timing of capital expenditures and operating costs related to the maintenance and expansion of our operations and infrastructure;
the risks associated with operating in countries in which we may have little or no previous experience and with maintaining or reorganizing corporate entity structures in international jurisdictions;
service outages, other technical difficulties or security breaches;
limitations relating to the capacity of our networks, systems and processes;
maintaining appropriate staffing levels and capabilities relative to projected growth, or retaining key personnel as a result of the integration of recent acquisitions or otherwise;
the extent to which certain expenses are deductible for tax purposes, such as share-based compensation that fluctuates based on the timing of vesting and our stock price;
the timing of any changes to our deferred tax valuation allowance;
adoption of new accounting pronouncements; and
general economic, political, regulatory, industry and market conditions and those conditions specific to internet usage and online businesses.
We believe that our revenues and results of operations on a year-over-year and sequential quarter-over-quarter basis may vary significantly in the future and that period-to-period comparisons of our operating results may not be meaningful. Investors are cautioned notgenerate sufficient cash to rely on the results of prior periods as an indication of future performance.service our debt, dividend obligations, lease facilities and trade payables.
Our financial condition and results of operations could suffer and be adversely affected if weWe may incur ananother impairment of goodwill or other intangible assets.
We are required to test intangible assets and goodwill, annually and on an interim basis if an event occurs or there is a changeChanges in circumstance that would more likely than not reduce the fair value of reporting unitsour financing derivatives or warrants could adversely affect our financial condition and intangible assets below their carrying values. When the carrying value of a reporting unit’s goodwill exceeds its implied fair value of goodwill, a charge to operations is recorded. If the carrying amount of an intangible asset with an indefinite life exceeds its fair value, a charge to operations is recognized. Either event would result in incremental expenses for that period, which would reduce any earnings or increase any loss for the period in which the impairment was determined to have occurred.results.
Our impairment analysis is sensitive to changes in key assumptions used in our analysis, such as expected future cash flows, the degree of volatility in equity and debt markets and our stock price. Additionally, changes in our strategy or significant technical developments could significantly impact the recoverability of our intangible assets. If the assumptions used in our analysis are not realized, it is possible that an impairment charge may need to be recorded in the future. There were no impairment charges taken during the years ended 2017, 2016 and 2015. We cannot predict the amount and timing of any future impairment of goodwill or other intangible assets.
We may encounter difficulties managing our costs, which could adversely affect our results of operations.
We believe that we will need tomay continue to effectively manage our organization, operations and facilities in order to accommodate changes in our business and to successfully integrate acquired businesses. If we continue to grow or change, either organically or through acquired businesses, our current systems and facilities may not be adequate and may need to be expanded or reduced. Our need to effectively manage our operations and cost structure requires that we continue to assess and improve our operational, financial and management controls, reporting systems and procedures. For example, we may be required to enter into leases for additional facilities or commit to significant investments in the build out of current or new facilities, or we may need to renegotiate or terminate leases to reflect changes in our business. If we are unable to effectively forecast our facilities needs or if we are unable to sublease or terminate leases for unused space, we may experience increased and unexpected costs. From time to time, as a result of acquisition integration initiatives, or through efforts to streamline our operations, we may and have reduced our workforce or reassigned personnel. Such actions may expose us to disruption by dissatisfied employees or employee-related claims, including without limitation, claims by terminated employees who believe they are owed more compensation than we believe these employees are due under our compensation and benefit plans, or claims maintained internationally in jurisdictions whose laws and procedures differ from those in the U.S. If we are not able to efficiently and effectively manage our cost structure or are unable to find appropriate space to support our needs, our business may be impaired.
We have a history of significantincur net losses, may incur significant net losses in the future and may not achieve profitability.
We incurred net losses of $281.4 million, $117.2 million, and $78.2 million for the years ended 2017, 2016 and 2015, respectively. We cannot make assurances that we will be able to achieve profitability in the future, particularly due to acquisition activity and costs associated with the restatement of our financial statements, regulatory inquiries and litigation matters. As of December 31, 2017, we had an accumulated deficit of $609.1 million. Because a large portion of our costs are fixed, we may not be able to reduce our expenses in response to any decrease in our revenues, which would materially and adversely affect our operating results. In addition, our operating expenses may increase as we implement certain growth initiatives, which include, among other things,

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the development of new products and enhancements of our infrastructure. If our revenues do not increase to offset these increases in costs and operating expenses, our operating results would be materially and adversely affected.
Our net operating loss carryforwards may expire unutilized or underutilized, which could prevent us from offsetting future taxable income.
We have experienced “changes in control” that have triggered the limitations of Section 382 of the Internal Revenue Code on a significant portion of our net operating loss carryforwards. As a result, we may be limited in the amount of net operating loss carryforwards that we can use in the future to offset taxable income for U.S. federal income tax purposes.
As of December 31, 2017, we estimate our U.S. federal and state net operating loss carryforwards for tax purposes are $387.0 million and $1,013.7 million, respectively. These net operating loss carryforwards will begin to expire in 2022 for federal income tax reporting purposes and in 2018 for state income tax reporting purposes. In addition, as of December 31, 2017, we estimate our aggregate net operating loss carryforwards for tax purposes related to our foreign subsidiaries are $14.8 million, which will begin to expire in 2019.
We apply a valuation allowance to our deferred tax assets when management does not believe that it is more-likely-than-not that they will be realized. In assessing the need for a valuation allowance, we consider all sources of taxable income, including potential opportunities for loss carrybacks, the reversal of existing temporary differences associated with our deferred tax assets and liabilities, tax planning strategies and future taxable income. We also consider other evidence such as historical pre-tax book income in making the determination.
As a result of the material changes to our Consolidated Financial Statements, we re-evaluated the valuation allowance determinations made in prior years. Our analysis was updated to consider the changes to our historical operating results following the investigation and subsequent review by management, with revised projections of our future taxable income in order to assess the realizability of our deferred tax assets. In that process, we evaluated the weight of all evidence, including the decline in earnings and the resulting impact on our projections of future taxable income beginning in 2012 and for each subsequent period through 2017. We have concluded that as of December 31, 2013 our U.S. federal and state net deferred tax assets were no longer more-likely-than-not to be realized and that a valuation allowance was required. For additional information refer to Item 6, "Selected Financial Data".
As of December 31, 2017, we continue to have a valuation allowance recorded against the net deferred tax assets of our U.S. entities and certain foreign subsidiaries, including net operating loss carryforwards. To the extent we determine that, based on the weight of available evidence, all or a portion of our valuation allowance attributable to the net operating loss carryforwards is no longer necessary, we will reduce the valuation allowance accordingly.
We have limited experience with respect to our pricing model for our new offerings, and if the fees we charge for our products are unacceptable to our customers, our revenues and operating results will be harmed.
Many of our customers purchase specifically tailored contracts that are priced in the aggregate. Due to the level of customization of such contracts, the pricing of contracts or individual product components of such packages may not be readily comparable across customers or periods. Existing and potential customers may have difficulty assessing the value of our products and services when comparing them to competing products and services. As the market for our products matures, or as new competitors introduce new products or services that compete with ours, we may be unable to renew our agreements with existing customers or attract new customers with the fees we have historically charged. As a result, it is possible that future competitive dynamics in our market may require us to reduce our fees, which could have an adverse effect on our revenues, profitability and operating results.underutilized.
Risks Related to Legal and Regulatory Compliance, Litigation and Tax Matters
Concern over privacy violations and data breaches could cause public relations problems, regulatory scrutiny and potential class action lawsuits, which couldmaterially harm our business.
We are subject to data privacy and protection laws and regulations that apply to the collection, transmission, storage and use of proprietary information and personally identifiable information. The regulatory environment surrounding information security and data privacy varies from jurisdiction to jurisdiction and is constantly evolving and increasingly demanding. The restrictions imposed by such laws continue to develop and may require us to incur substantial costs and fines or adopt additional compliance measures, such as notification requirements and corrective actions in the event of a security breach.
Any perception of our practices, products or services as a violation of individual privacy rights, whether or not consistent with current regulations and industry practices, may subject us to public criticism, class action lawsuits, reputational harm, or investigations or claims by regulators, industry groups or other third parties, all of which could disrupt our business and expose us to increased liability. Additionally, laws regulating privacy and third-party products purporting to address privacy concerns could negatively affect the functionality of, and demand for, our products and services, thereby resulting in loss of customers and harm to our business.

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We also rely on contractual representations made to us by customers that their own use of our services and the information they provide to us via our services do not violate any applicable privacy laws, rules and regulations or their own privacy policies. As a component of our client contracts, we obligate customers to provide their consumers the opportunity to obtain the appropriate level of consent (including opt outs) for the information collection associated with our services, as applicable. If these representations are false or inaccurate, or if our customers do not otherwise comply with applicable privacy laws, we could face adverse publicity and possible legal or regulatory action.
Outside parties may attempt to fraudulently induce our employees or users of our solutions to disclose sensitive information via illegal electronic spamming, phishing or other tactics. Unauthorized parties may also attempt to gain physical access to our information systems. Any breach of our security measures or the accidental loss, inadvertent disclosure or unauthorized dissemination of proprietary information or sensitive, personal or confidential data about us, our employees or our customers, including the potential loss or disclosure of such information or data as a result of hacking, fraud, trickery or other forms of deception, could expose us, our employees, our customers or the individuals affected to risks of loss or misuse of this information. Any actual or potential breach of our security measures may result in litigation and potential liability or fines, governmental inquiry or oversight or a loss of customer confidence, any of which could harm our business or damage our brand and reputation, possibly impeding our present and future success in retaining and attracting new customers and thereby requiring time and resources to repair our brand.
Domestic or foreign laws regulations or enforcement actions may limit our ability to collect and incorporate media usage information in our products which may decrease their value and cause an adverse impactimpose costly requirements on our business and financial results.business.
U.S. federal and state and foreign laws and regulations, which may be able to be enforced by privateThird parties or governmental entities, are constantly evolving and can be subject to significant change.
Our business could be adversely impacted by existing or future laws, regulations of or actions by domestic or foreign regulatory agencies. For example, privacy concerns could lead to legislative, judicial and regulatory limitations on our ability to collect, maintain and use information about consumers’ behavior or media consumption in the U.S. and abroad. State and federal laws within the U.S. and foreign laws and regulations are varied, and at times conflicting, resulting in higher risk related to compliance. A number of new laws coming into effect and/or proposals pending before federal, state and foreign legislative and regulatory bodies will likely affect our business. For example, the European Commission has enacted the GDPR that becomes effective in May 2018 and will supersede current EU data protection legislation, impose more stringent EU data protection requirements, and provide for greater penalties for noncompliance. Additionally, the European Commission is evaluating changes to the ePrivacy Regulation, a companion regulation to GDPR that will likely have a significant impact on our solutions. The costs of compliance with, and the other burdens imposed by, these and other laws or regulatory actions may prevent us from selling our products or increase the costs associated with selling our products, and may affect our ability to invest in or jointly develop products in the U.S. and in foreign jurisdictions. In addition, failure to comply with these and other laws and regulations may result in, among other things, administrative enforcement actions and significant fines, class action lawsuits and civil and criminal liability. Any regulatory or civil action that is brought against us, even if unsuccessful, may distract our management’s attention, divert our resources, negatively affect our public image or reputation among our panelists and customers and harm our business.
An assertion from a third partyassert that we are infringing itstheir intellectual property rights, whether such assertion is valid or not, could subject us to costly and time-consuming litigation or expensive licenses.
The media measurement, software and technology industries are characterized by the existence of a large number of patents, copyrights, trademarks and trade secrets and by frequent litigation based on allegations of infringement or other violations of intellectual property rights, domestically or internationally. As we grow and face increasing competition, the probability that one or more third parties will make intellectual property rights claims against us increases. In such cases, our technologies may be found to infringe on the intellectual property rights of others. Additionally, many of our agreements may require us to indemnify our customers for third-party intellectual property infringement claims, which would increase our costs if we have to defend such claims and may require that we pay damages and provide alternative services if there were an adverse ruling in any such claims. Intellectual property claims could harm our relationships with our customers, deter future customers from buying our products or expose us to litigation, which could be expensive and divert considerable attention of our management team from the normal operation of our business. Even if we are not a party to any litigation between a customer and a third party, an adverse outcome in any such litigation could make it more difficult for us to defend against intellectual property claims by the third party in any subsequent litigation in which we are a named party. Any of these results could adversely affect our brand, business and results of operations.
With respect to any intellectual property rights claim against us or our customers, we may have to pay damages or stop using technology found to be in violation of a third party’s rights. We may have to seek a license for the technology, which may not be available on reasonable terms or at all, may significantly increase our operating expenses or may significantly restrict our business activities in one or more respects. We may also be required to develop alternative non-infringing technology, which could require significant effort and expense. Any of these outcomes could adversely affect our business and results of operations. Even if we prove successful in defending ourselves against such claims, we may incur substantial expenses and the defense of such claims

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may divert considerable attention of our management team from the normal operation of our business.The success of our business depends in large part on our abilityunable to protect and enforce our own intellectual property rights.
We rely on a combination of patent, copyright, service mark, trademark and trade secret laws, as well as confidentiality procedures and contractual restrictions, to establish and protect our proprietary rights, all of which provide only limited protection. We endeavor to enter into agreements with our employees and contractors and with parties with whom we do business in order to limit access to and disclosure of our proprietary information. We cannot be certain that the steps we have taken will prevent unauthorizedOur use of open source software could limit our technologyability to sell our products or the reverse engineering ofrequire us to reengineer our technology. We cannot make assurances that any additional patents willproducts.
There could be issued with respect to any of our pending or future patent applications, nor can we assure that any patent issued to us will provide adequate protection, or that any patents issued to us will not be challenged, invalidated, circumvented, or held to be unenforceableadverse developments in actions against alleged infringers. Also, we cannot make assurances that any future trademark or service mark registrations will be issued with respect to pending or future applications or that any of our registered trademarks and service marks will be enforceable or provide adequate protection of our proprietary rights.
The recently passed comprehensive tax reform bill could adversely affect our business and financial condition.
On December 22, 2017, U.S. tax reform legislation known as the Tax Cuts and Jobs Act (the “TCJA”) was signed into law. The TCJA makes substantial changes to U.S. tax law, including a reduction in the corporate tax rate, a limitation on deductibility of interest expense, a limitation on the use of net operating losses to offset future taxable income, the allowance of immediate expensing of capital expenditures, deemed repatriation of foreign earnings and significant changes to the taxation of foreign earnings going forward. Although, we do not expect the TCJA to have a significant effect on us, except for the reduction in the corporate tax rate which has decreased the value of our deferred tax assets and liabilities, including our U.S. net operating loss carryforwards, the extent of the impact of the TCJA remains uncertain and is subject to any regulatory or administrative developments, including any regulations or other guidance promulgated by the U.S. Internal Revenue Service. The TCJA contains numerous, complex provisions impacting U.S. multinational companies, and we continue to review and assess the legislative language and its potential impact on us.
We are subject to taxation in multiple jurisdictions. Any adverse development in the tax laws of any of these jurisdictions or any disagreementdisagreements with our tax positions could have a material adverse effect on our business, financial condition or results of operations.
We are subject to taxation in, and to the tax laws and regulations of, multiple jurisdictions as a result of the international scope of our operations and our corporate entity structure. We are also subject to transfer pricing laws with respect to our intercompany transactions, including those relating to the flow of funds among our companies. Adverse developments in these laws or regulations, or any change in position regarding the application, administration or interpretation thereof, in any applicable jurisdiction, could have a material adverse effect on our business, financial condition or results of operations. In addition, the tax authorities in any applicable jurisdiction, including the U.S., may disagree with the positions we have taken or intend to take regarding the tax treatment or characterization of any of our transactions. If any applicable tax authorities, including U.S. tax authorities, were to successfully challenge the tax treatment or characterization of any of our transactions, it could have a material adverse effect on our business, financial condition or results of operations.
Taxing authorities may successfully assert that we should have collected or in the future should collect sales and use, value added or similar taxes, andjurisdictions where we could be subject to liability with respect to past or future sales, which could adversely affect our results of operations.
In certain cases, we have concluded that we do not need to collect sales and use, value added and similar taxes in jurisdictions in which we have sales.  Sales and use, value added and similar tax laws and rates vary greatly by jurisdiction.  Certain jurisdictions in which we do not collect such taxes may assert that such taxes are applicable, which could result in tax assessments, penalties and interest, and we may be required to collect such taxes in the future.  Such tax assessments, penalties and interest or future requirements may adversely affect our financial condition and results of operations.
Our annual effective income tax rate can change materially as a result of changes in our mix of U.S. and foreign earnings and other factors, including changes in tax laws and changes made by regulatory authorities.
Our overall effective income tax rate is equal to our total tax expense as a percentage of total earnings before tax. However, income tax expense and benefits are not recognized on a global basis but rather on a jurisdictional or legal entity basis. Losses in one jurisdiction may not be used to offset profits in other jurisdictions and may cause an increase in our tax rate. Changes in statutory tax rates and laws, as well as ongoing audits by domestic and international authorities, could affect the amount of income taxes and other taxes paid by us. For example, the changes to the U.S. corporate tax rate and the U.S. taxation of foreign earnings as a result of the TCJA may have a material impact on our effective tax rate. Also, changes in the mix of earnings (or losses) between jurisdictions and assumptions used in the calculation of income taxes, among other factors, could have a significant effect on our overall effective income tax rate.

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We have incurred and will continue to incur costs and demands upon management as a result of complying with the laws and regulations affecting a public company, which could adversely affect our operating results.
As a public company, we have incurred and will continue to incur significant legal, accounting and other expenses that we would not otherwise incur if we were a private company, including expenses relating to the Audit Committee investigation, restatement and audits, and remediation of deficiencies in our internal control over financial reporting. (Refer to “Risks Related to Our Audit Committee Investigation and Subsequent Management Review, Consolidated Financial Statements, Internal Controls and Related Matters” above for a discussion of these costs.) In addition, the Sarbanes-Oxley Act of 2002 and the Dodd-Frank Wall Street Reform and Consumer Protection Act, as well as rules implemented by the SEC and the securities exchanges, require certain corporate governance practices for public companies. Our management and other personnel have devoted and expect to continue to devote a substantial amount of time to public reporting requirements and corporate governance, particularly following the Audit Committee investigation. These rules and regulations have significantly increased our legal and financial compliance costs and made some activities more time-consuming and costly. We also have incurred and expect to continue to incur substantial additional costs associated with our public company reporting and internal control requirements, including the audit-related costs and remediation efforts described under “Risks Related to Our Audit Committee Investigation and Subsequent Management Review, Consolidated Financial Statements, Internal Controls and Related Matters” above. If these costs are not offset by increased revenues and improved financial performance, our financial condition and results of operations will be materially adversely affected. These rules and regulations, together with ongoing regulatory and litigation matters, also make it more difficult and more expensive for us to obtain director and officer liability insurance, and we may be required to accept reduced policy limits and coverage or incur substantially higher costs to obtain the same or similar coverage if these costs continue to rise. As a result, it may be more difficult for us to attract and retain qualified people to serve on our Board or as executive officers.
Risks Related to International Operations
Our business could become increasingly susceptible to risks associated with international operations.
Export controls and sanctions laws could impair our ability to compete in international markets and subject us to liability.
Changes in foreign currencies could have a significant effect on our operating results.
Risks Related to Our Capital Structure and Financings
The holders of our Series B Convertible Preferred Stock ("Preferred Stock") have significant influence and rights that may conflict with the interests of our other stockholders.
We may not realize the anticipated benefits of our Preferred Stock transactions, including commercial benefits from our data license with Charter.
The market value of our Common Stock could decline if the holders of our Preferred Stock sell their shares when transfer restrictions expire.
Our financing and debt covenants could restrict our operating flexibility.
Any failure to meet our debt obligations could adversely affect our business and financial condition.
We may need additional capital to support our business or meet our debt or dividend obligations, which may not be available on acceptable terms or at all.
General Risks Related to Ownership of Our Common Stock
Securities that we may become obligated to issue under existing or future agreements may cause immediate and substantial dilution to our current stockholders.
Provisions in our governing documents and under Delaware law might discourage, delay or prevent a change of control or changes in our management.
Risks Related to Our Business and Our Technologies
Macroeconomic factors could adversely affect our business and financial results.
Our business depends on the health of the media and advertising industries in which we operate. The strength of the advertising market can fluctuate in response to the economic prospects of specific advertisers or industries, advertisers' spending priorities, and the economy in general. In recent months, macroeconomic factors such as inflation, rising interest rates and supply chain disruptions have caused some advertisers to reduce or delay advertising expenditures. These declines, which may continue in future periods, have a direct impact on demand for our products, which measure advertising campaigns and audiences across platforms.
Sustained reductions in advertising spending could result in customers terminating their subscriptions for our products, delaying renewals, or renewing on terms less favorable to us. Furthermore, our newer products, for which we recognize revenue based on impressions used, may be subject to higher fluctuations in revenue from changes in our customers' advertising budgets and spending. Macroeconomic factors could also increase our costs, reducing margins and preventing us from meeting our profitability goals. Finally, these factors make it more difficult for us to predict our future revenue and costs, which could result in misallocation of resources or operating inefficiencies that could harm our business. The extent of the impact of macroeconomic factors on our business is uncertain and may continue to adversely affect our operations and financial results.
The market for media measurement and analytics products is highly competitive, and if we cannot compete effectively, our revenues could decline and our business could be harmed.
The market for audience and advertising measurement products is highly competitive and is evolving rapidly. We compete primarily with providers of media intelligence and related analytical products and services. We also compete with providers of marketing services and solutions, with full-service survey providers, and with internal solutions developed by customers and potential customers. In recent years, competition has intensified as a result of the entrance of new competitors and the development of new technologies, products and services in our industry, and we expect this trend to continue. Some of our competitors have substantially greater resources than we do. As a result, these competitors may be able to devote greater resources to development of systems and technologies, acquisition of data, recruitment and retention of personnel, marketing and promotional campaigns, panel retention and development, and other key areas that can impact our ability to compete effectively. In addition, some of our competitors have adopted and may continue to adopt aggressive pricing policies, including the provision of certain services at little or no cost, in order to retain or acquire customers. Furthermore, large software companies, internet platforms and database management companies may enter our market or enhance their current offerings, either by developing competing services or by acquiring our competitors, and could leverage their significant resources and pre-existing relationships with our current and potential customers. Finally, consolidation of our competitors could make it difficult for us to compete effectively. If we are unable to compete successfully against our current and future competitors, we may not be able to retain and acquire customers, and we may consequently experience a decline in revenues, reduced operating margins, loss of market share and diminished value from our products.
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If we are unable to provide television, digital or cross-platform analytics, or if our analytics are incomplete, our ability to maintain and grow our business may be harmed.
As the media and advertising industries increasingly evaluate advertising campaigns across various forms of media, such as television, online, and mobile, the ability to measure the combined size and composition of audiences across platforms is increasingly important and in demand. If we are unable to gain or maintain access to information measuring a media component or type, or if we are unable to do so on commercially reasonable terms, our ability to meet our customers' demands and our business and financial performance may be harmed. Furthermore, even if we do have access to television and digital (including mobile and CTV) data, if we have insufficient technology, or encounter challenges in our methodological approaches, our products may be inferior to other offerings, and we may be unable to meet our customers' demands. In such event, our business and financial performance may be harmed.
In particular, our acquisition of television data may be reliant on companies that have historically held a dominant market position measuring television to produce industry-accepted measurement across a combination of media platforms. Our competitors or other providers may have more leverage with data providers and may be unable or unwilling to provide us with access to quality data to support our products, on reasonable terms or at all. Likewise, our acquisition of digital data may be reliant on large digital publishers that may technologically or legally prevent access to their proprietary platforms for research or measurement purposes. Moreover, as mobile devices, technology and CTV viewing continue to proliferate, gaining and maintaining cost-effective access to mobile and CTV data will become increasingly critical, and we could face difficulty in accessing these forms of data. If we are unable to acquire and integrate data effectively and efficiently, or if the cost of data acquisition or integration increases, our business, financial condition and results of operations may be harmed.
We depend on third parties for data and services that are critical to our business, and our business could suffer if we cannot continue to obtain reliable data from these suppliers or if third parties place additional restrictions on our use of such data.
We rely on third-party data sources for information usage across the media platforms that we measure, as well as demographics about the people that use such platforms. The availability and accuracy of this data is important to the continuation and development of our products and the performance of our obligations to customers. These data suppliers, some of whom compete with us or our significant stockholders, may increase restrictions on our use of such data, undertake audits (at either our or their expense) of our use of such data, require us to implement new processes with respect to such data, fail to adhere to our quality control, privacy or security standards or otherwise satisfactorily perform services, increase the price they charge us for the data or refuse to license the data to us. Additional restrictions on third-party data could limit our ability to include that data in our products, which could lead to decreased commercial opportunities for our products as well as loss of customers, sales credits, refunds or liability to our customers. To comply with any additional restrictions, we may be required to implement certain additional technological and manual controls that could put pressure on our cost structure and could affect our pricing. Supplier consolidation and increased pricing for additional use cases, including in connection with the integration of acquired companies and technologies, could also put pressure on our cost structure and our ability to meet obligations to our customers. We may be required to enter into vendor relationships, strategic alliances, or joint ventures with some third parties in order to obtain access to the data sources that we need. If our partners do not apply rigorous standards to their data collection methodology and actions, notwithstanding our best efforts, we may receive third-party data that is inaccurate, defective, or delayed. If third-party information is not available to us on commercially reasonable terms, or is found to be inaccurate, it could harm our products, our reputation, and our business and financial performance.
If we fail to respond to technological developments or evolving industry standards, our products may become obsolete or less competitive.
We operate in industries that require sophisticated data collection and processing technologies. Our future success will depend in part on our ability to develop new and modify or enhance our existing products and services, including without limitation, our data collection technologies and approaches, in order to meet customer needs, add functionality and address technological advancements and industry standards. For example, the development of opt-in permissions and enhanced focus on consent-based measurement provide the benefit of limiting the transfer of consumer personal information, but also mean changes to our data collection, storage and delivery processes. If we are unable to innovate and adapt our methodologies to meet evolving customer needs, our products may become obsolete or less competitive. As another example, if certain proprietary devices become the primary mode of receiving content and conducting transactions on the internet, and we are unable to adapt to collect information from such devices, then we would not be able to report on digital usage activity. To remain competitive, we will need to develop new products that address these evolving technologies and standards across the universe of media including television, online, and mobile usage. However, we may be unsuccessful in identifying new product opportunities, developing or marketing new products in a timely or cost-effective manner, or obtaining the necessary access to data or technologies needed to support new products, or we may be limited in our ability to operate due to patents held by others. In addition, our product innovations may not achieve the market penetration or price levels necessary for profitability. If we are unable to develop and integrate timely enhancements to, and new features for, our existing methodologies or products or if we are unable to develop new products and technology that keep pace with rapid technological developments, changing industry standards or consumer preferences, our products may become obsolete, less marketable and less competitive, and our business will be harmed.
Furthermore, the market for our products is characterized by changes in protocols and evolving industry standards. For example, industry associations such as the Advertising Research Foundation, the Council of American Survey Research Organizations, the
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Internet Advertising Bureau, and the Media Rating Council as well as foreign and international industry associations have initiated efforts to either review market research methodologies across the media that we measure or develop minimum standards for such research. Failure to seek or achieve accreditation, delays in accreditation, or adverse audit findings may negatively impact the market acceptance of our products. Meanwhile, successful accreditation or audits may lead to costly changes to our procedures and methodologies and may not result in the anticipated commercial benefits.
Our business may be harmed if we deliver, or are perceived to deliver, inaccurate or untimely information products.
The metrics contained in our products may be viewed as an important measure of the success of certain businesses, especially those that utilize our metrics to evaluate a variety of investments ranging from their internal operations to advertising initiatives. If the information that we provide to our customers, the media, or the public is inaccurate, or perceived to be inaccurate, whether due to inadequate methodological approaches, errors, biases towards certain available data sources or partners, disparate data sets across our products, defects or errors in data collection and processing (conducted by us or by third parties) or the systems used to collect, process or deliver data, our business may be harmed. Similarly, if the information that we provide to our customers is delayed or perceived to be untimely, our business may be harmed.
Any inaccuracy, perceived inaccuracy, inconsistency or delay in the data reported by us could lead to consequences that could adversely impact our operating results, including loss of customers; sales credits, refunds or liability to our customers; the incurrence of substantial costs to correct any material defect, error or inconsistency; increased warranty and insurance costs; potential litigation; interruptions in the availability of our products; diversion of development resources to improve our processes or delivery; lost or delayed market acceptance and sales of our products; and damage to our brand.
Our business may be harmed if we change our methodologies or the scope of information we collect.
We have in the past and may in the future change our methodologies, the methodologies of companies we acquire, or the scope of information we collect. Such changes may result from identified deficiencies in current methodologies, development of more advanced methodologies, changes in our business plans or in industry standards, changes in law or regulatory requirements, changes in technology used by websites, browsers, mobile applications, servers, or media we measure, integration of acquired companies or expressed or perceived needs of our customers, potential customers or partners. Any such changes or perceived changes, or our inability to accurately or adequately communicate to our customers and the media such changes and the potential implications of such changes on the data we have published or will publish in the future, may result in customer dissatisfaction, particularly if certain information is no longer collected or information collected in future periods is not comparable with information collected in prior periods. As a result of future methodology changes, some of our customers that may also supply us with data may decide not to continue buying products or services from us or may decide to discontinue providing us with their data to support our products. Such customers may elect to publicly air their dissatisfaction with the methodological changes made by us, which may damage our brand and harm our reputation.
If we are not able to maintain panels of sufficient size and scope, or if the costs of establishing and maintaining our panels materially increase, our business could be harmed.
We believe that the quality, size and scope of our research panels are important to our business. In recent years, however, panel participation has declined, in part due to changes by software providers that have made it more difficult to obtain consent to participate in panels. At the same time, the cost of recruiting new panelists has increased. Although we have taken steps to mitigate the impact of these changes on our business, there can be no assurance that we will be able to maintain panels of sufficient size and scope to provide the quality of marketing intelligence that our customers demand from our products. We anticipate that the cost of panel recruitment will continue to increase with the proliferation of proprietary and secure media content delivery platforms and evolving regulatory requirements, and that the difficulty in collecting these forms of data will continue to grow, which may require significant hardware and software investments, as well as increases to our panel incentive and panel management costs. To the extent that such additional expenses are not accompanied by increased revenues, our operating margins may be reduced and our financial results could be adversely affected. If we are unable to maintain panels of sufficient size and scope, we could face negative consequences, including degradation in the quality of our products, failure to receive accreditation from industry associations, loss of customers and damage to our brand.
We derive a significant portion of our revenues from sales of our subscription-based products. If our customers terminate or fail to renew their subscriptions, our business could suffer.
We currently derive a significant portion of our revenues from our syndicated products, which are typically one-year subscription-based products. This has generally provided us with recurring revenue due to high renewal rates among our enterprise customers; however, syndicated digital revenue from our smaller and international customers has declined in recent years. If additional customers terminate their subscriptions for our products, do not renew their subscriptions, delay renewals of their subscriptions or renew on terms less favorable to us, our revenues could decline and our business could suffer.
Our customers have no obligation to renew after the expiration of their initial subscription period, and we cannot be assured that current subscriptions will be renewed at the same or higher dollar amounts, if at all. Furthermore, our newer products, for which revenue is recognized based on impressions used, may be subject to higher fluctuations in revenue. Our customer renewal rates may decline or fluctuate due to a number of factors, including customer satisfaction or dissatisfaction with our products, the costs or
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functionality of our products, the prices or functionality of products offered by our competitors, the health of the advertising marketplace and the industries in which we operate, mergers and acquisitions affecting our customer base, general economic conditions or reductions in our customers' spending levels.
Our growth depends upon our ability to retain existing large customers and add new large customers. To the extent we are not successful in doing so, our ability to grow revenue and attain profitability and positive cash flow may be impaired.
Our success depends in part on our ability to sell our products to large customers and on the renewal of subscriptions and contracts with these customers in subsequent years. For the years ended 2022, 2021 and 2020, we derived 34%, 35% and 30%, respectively, of our total revenues from our top 10 customers. Uncertain economic conditions, changes in the regulatory environment or other factors, such as the failure or consolidation of large customer companies, internal reorganization or changes in focus, or dissatisfaction with our products, may cause certain large customers to terminate or reduce their subscriptions and contracts with us. The loss of any one or more of these customers could decrease our revenues and harm our current and future operating results. The addition of new large customers or increases in sales to existing large customers may require particularly long implementation periods and other significant upfront costs, which may adversely affect our profitability or divert resources from our other priorities. To compete effectively, we have in the past been, and may in the future be, forced to offer significant discounts to maintain existing customers or acquire other large customers. In addition, we may be forced to reduce or withdraw from our relationships with certain existing customers or refrain from acquiring certain new customers in order to acquire or maintain relationships with important large customers. As a result, new large customers or increased usage of our products by large customers may cause our profit margins to decline, and our ability to sell our products to other customers could be adversely affected.
If we are unable to effectively persuade customers to buy our products in substitution for those of an incumbent services provider, our revenue growth may suffer.
Some of our products require that we persuade prospective customers, or customers of our existing products, to buy our products in substitution for those of an incumbent service provider. In some instances, the customer may have built their systems and processes around the incumbent provider's products. Persuading such customers to switch service providers may be difficult and require longer sales cycles, affecting our ability to increase revenue in these areas. Moreover, the incumbent service provider may have the ability to significantly discount its services or enter into long-term agreements, which could further impede our ability to persuade customers to switch service providers, and accordingly, our ability to increase our revenues.
We may expand through investments in, acquisitions of, or the development of new products with assistance from, other companies, any of which may not be successful and may divert our management's attention.
In the past, we completed several strategic acquisitions, most recently our acquisition of Shareablee in 2021. We also may evaluate and enter into discussions regarding an array of potential strategic transactions, including acquiring complementary products, technologies or businesses. An acquisition, investment or business relationship may involve significant operating challenges, expenditures and risks. In particular, we may encounter difficulties integrating the businesses, data, technologies, products, personnel or operations of the acquired companies, particularly if the key personnel of the acquired company choose not to be employed by us, and we may have difficulty retaining the customers and partners of any acquired business due to changes in management and ownership. Acquisitions may also disrupt our ongoing business, divert our resources and require significant management attention that would otherwise be available for ongoing development of our business. Moreover, we cannot guarantee that the anticipated benefits of any acquisition, investment or business relationship would be realized timely, if at all, or that we would not be exposed to unknown liabilities. In connection with any such transaction, we may:
encounter difficulties retaining key employees of the acquired company or integrating diverse business cultures, particularly in countries where we have not previously had employees;
incur large charges or substantial liabilities, including without limitation, liabilities associated with products or technologies accused or found to infringe on third-party intellectual property or contractual rights or violate existing or future privacy or security regulations;
issue shares of our capital stock as part of the consideration, which has been and may be dilutive to existing stockholders;
become subject to adverse tax consequences, legal disputes, substantial depreciation or deferred compensation charges;
use cash that we may otherwise need for ongoing or future operation of our business or dividends;
enter new geographic markets that subject us to different laws and regulations that may have an adverse impact on our business;
experience difficulties effectively utilizing acquired assets or obtaining required third-party consents;
encounter difficulties integrating the information and financial reporting systems of acquired businesses, particularly those that operated under accounting principles other than those generally accepted in the U.S. prior to the acquisition by us; and
incur debt, which may be on terms unfavorable to us or that we are unable to repay.
We also have entered into relationships with certain third-party providers to expand our product offerings, and we may enter into similar arrangements in the future. These or other future relationships or transactions may involve preferred or exclusive licenses,
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discount pricing, provision of our products and services without charge, or investments in other businesses to expand our sales capabilities. These transactions could be material to our financial condition and results of operations, and though these transactions may provide additional benefits, they may not be profitable immediately or in the long term. Negotiating any such transactions could be time-consuming, difficult and expensive, and our ability to close these transactions may be subject to regulatory or other approvals and other conditions that are beyond our control. Consequently, we can make no assurances that any such transactions, investments or relationships, if undertaken and announced, would be completed or successful. The impact of any one or more of these factors could materially and adversely affect our business, financial condition or results of operations.
System failures, security breaches or delays in the operation of our computer and communications systems may harm our business.
Our success depends on the efficient and uninterrupted operation of our computer and communications systems and the third-party data centers, cloud providers and SAAS platforms we use. Our ability to collect and report accurate data may be interrupted by a number of factors, including the failure of our network or software systems, computer viruses, security breaches, or variability in the information we ingest.
Our product, information technology and security teams regularly review our systems and security posture and evaluate ways to enhance our processes and controls. In addition, our board of directors and audit committee receive quarterly updates on developments in information technology, security and data governance. We regularly train our employees on information security and related risks, and we conduct third-party audits on our security program (ISO 27001). Nevertheless, we cannot guarantee that a security incident will not occur or that any such incident will be timely detected or remediated. Cyber breaches continue to evolve in sophistication and may be difficult to detect. A security incident or failure of our network or data gathering procedures, or those of our third-party data suppliers, could result in liability to the Company, impede the processing of data, cause the corruption or loss of data, prevent the timely delivery of our products, give rise to government inquiries or enforcement actions, or damage our brand and reputation.
In the future, we may need to expand our network and systems at a more rapid pace than we have in the past. Our network or systems may not be capable of meeting the demand for increased capacity, or we may incur additional expenses to accommodate these capacity demands. In addition, we may lose valuable data or be unable to obtain or provide data on a timely basis or our network may temporarily shut down if we fail to adequately expand or maintain our network capabilities to meet future requirements. Any lapse in our ability to collect or transmit data may decrease the value of our products and prevent us from providing the data requested by our customers and partners. Any disruption in our data processing or any loss, exposure or misuse of internet user data may damage our reputation and result in the loss of customers, partners and vendors and the imposition of penalties or other legal or regulatory action, and our business, financial condition and results of operations could be materially and adversely affected.
We are subject to customer and partner security reviews, and failure to pass these reviews could have an adverse impact on our operations.
Many of our customer and partner contracts require that we maintain certain physical and/or information security standards. Any failure to meet such standards could have an adverse impact on our business. In certain cases, we permit a customer or partner to audit our compliance with contractual standards. Negative findings in an audit and/or the failure to adequately remediate in a timely fashion such negative findings could cause customers or partners to terminate their contracts or otherwise have an adverse effect on our reputation, results of operations and financial condition. Further, customers or partners from time to time may require new or stricter physical or information security than they negotiated in their contracts and may condition continued volumes and business on the satisfaction of such additional requirements. Some of these requirements may be expensive to implement or maintain and may not be factored into our contract pricing. Failure to meet these requirements could have an adverse effect on our business.
We rely on a small number of third-party service providers to host and deliver our products, and any interruptions or delays in services from these third parties could impair the delivery of our products and harm our business.
We host some of our products and serve our customers from data center facilities located throughout the U.S. While we operate our equipment inside these facilities, we do not control the operation of these facilities, and, depending on service level requirements and costs, we may not continue to operate or maintain redundant data center facilities for all of our products or for all of our data, which could increase our vulnerability. These facilities are vulnerable to damage or interruption from earthquakes, hurricanes, floods, fires, power loss, telecommunications failures and similar events. They are also subject to break-ins, computer viruses, security breaches, sabotage, intentional acts of vandalism and other misconduct. A natural disaster or an act of terrorism, a decision to close the facilities without adequate notice, or other unanticipated problems could result in lengthy interruptions in availability of our products. We may also encounter capacity limitations at our third-party data centers. Additionally, our data center facility agreements are of limited durations, and our data center facilities have no obligation to renew their agreements with us on commercially reasonable terms, if at all. We select our third-party data center providers through a rigorous process based on redundant capability and compliance with industry standards and audits. We believe that we will be able to renew, or find alternative data center facilities, on commercially reasonable terms, although there can be no guarantee of this. If we are unable to renew our agreements with the owners of the facilities on commercially reasonable terms, or if we migrate to a new data center, we may experience delays in delivering our products until an agreement with another data center facility can be arranged or the migration to a new facility is completed.
If we or the third-party data centers that we use were to experience a major power outage, we would have to rely on back-up generators, which may not function properly, and their supply may be inadequate. Such a power outage could result in the disruption
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of our business. Additionally, if our current facilities fail to have sufficient cooling capacity or availability of electrical power, we would need to find alternative facilities and could experience delays in delivering our products.
We have engaged in an initiative to transform certain data collection, processing and delivery systems from traditional data centers to cloud-based platforms. The migration of these processes requires significant time and resources from our management, technology and operations personnel and introduces new requirements for security, financial and software development controls. This initiative may divert resources from other priorities, which could have a negative impact on our revenue and growth opportunities. If the migration of these processes is not successful, or if the initiative takes longer or requires more resources than we anticipate, our results of operations and financial condition could be adversely affected.
We depend on access to the internet through third-party bandwidth providers to operate our business. If we lose the services of one or more of our bandwidth providers for any reason, we could experience disruption in the delivery of our products or be required to retain the services of a replacement bandwidth provider. It may be difficult for us to replace any lost bandwidth on a timely basis, on commercially reasonable terms, or at all, due to the large amount of bandwidth our operations require.
Any errors, defects, breaches, disruptions or other performance problems related to our products or the delivery of our services caused by third parties could reduce our revenues, harm our reputation, result in the loss of customers, partners and vendors and the imposition of penalties or other legal or regulatory actions and otherwise damage our business. Interruptions in the availability of our products and the delivery of our services may reduce our revenues due to increased turnaround time to complete projects, cause us to issue credits or refunds to customers, cause customers to terminate their agreements or adversely affect our renewal rates. Our business, financial condition and results of operations would be materially and adversely affected if there were errors or delays in delivering our products or services, including for reasons beyond our control, and our reputation would be harmed if our customers or potential customers believe our products and services are unreliable.
Our restructuring activities and cost reduction initiatives may not deliver the expected results and could disrupt our business operations.
Achieving our long-term revenue and profitability goals depends significantly on our ability to allocate resources in line with our strategic objectives and control our operating costs. As described in Footnote 15, Organizational Restructuring of the Notes to the Consolidated Financial Statements included in Part II, Item 8 of this 10-K, we recently communicated a workforce reduction as part of our broader efforts to improve cost efficiency and better align our operating structure and resources with strategic priorities (collectively, the "Restructuring Plan"). In addition to employee terminations, the Restructuring Plan includes the reallocation of commercial and product development resources; reinvestment in and modernization of key technology platforms; consolidation of data storage and processing activities to reduce our data center footprint; and reduction of other operating expenses, including software and facility costs. We may also determine to exit certain activities in certain geographic regions in order to more effectively align resources with business priorities.
If we are not able to implement the Restructuring Plan as currently contemplated, if the Restructuring Plan does not generate the expected cost savings, or if we incur higher than expected costs to implement the Restructuring Plan, our business and financial results could be adversely affected. Moreover, some of the organizational and operational changes we are making in connection with the Restructuring Plan will require careful management to avoid disrupting customer, partner and employee relationships. If we do not successfully manage our restructuring activities, including the Restructuring Plan, the expected benefits may be delayed or not realized, and our operations and business could be disrupted.
We rely heavily on our management team and other personnel to operate and grow our business. The loss of one or more key employees, the inability to attract and retain qualified personnel, or the failure to integrate new personnel could harm our business.
Our success and future growth depend to a significant degree on the skills and continued services of our management team. Our future success also depends on our ability to retain, attract and motivate highly skilled technical, managerial, sales and marketing personnel. The market for these personnel is extremely competitive, particularly for software engineers, data scientists and other technical staff, and like many companies in our industry, we have faced higher rates of attrition in recent years. Our restructuring activities have put additional pressure on our ability to retain, attract and motivate key personnel. If we cannot retain highly skilled workers and key leaders, our ability to develop and deliver our products and increase our revenues may be materially and adversely affected. If we must increase employee compensation and benefits in order to remain competitive for these personnel, our operating costs and financial condition may be adversely affected. Recruiting and training costs may also place significant demands on our resources. We may experience a loss of productivity due to the departure of key personnel and the associated loss of institutional knowledge, or while new personnel integrate into our business and transition into their respective roles. Failure to ensure effective transitions and knowledge transfers may adversely affect our operations and our ability to execute on our strategic plans and growth initiatives.
The effectiveness of our equity awards as a means to recruit and retain key personnel has diminished, and we may need to grant equity awards outside of our existing plan.
Historically, we have relied on equity awards as one means of recruiting and retaining key personnel, including our senior management. Due to declines in our stock price in recent years, the effectiveness of our outstanding equity awards as a means to retain key personnel has diminished. Moreover, the quantity of equity awards we are able to grant under our 2018 Equity and Incentive
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Compensation Plan ("2018 Plan") is limited. These limits have impacted our ability to offer new awards to current and prospective employees, which in turn has contributed to employee retention and hiring challenges. In order to address our compensation needs, we plan to seek an amendment to our 2018 Plan to increase the number of shares available for future equity awards. We also may need to consider granting equity awards outside of our 2018 Plan, as we did with a 2021 executive hire. Either of these options would result in additional dilution to our existing stockholders. If the amendment to our 2018 Plan is not approved by our stockholders or if our stock price continues to decline, we may need to shift a larger portion of employee compensation to cash, which could adversely affect our liquidity and financial condition.
The COVID-19 pandemic and related economic repercussions could continue to have adverse effects on our business, financial position, results of operations and cash flows.
The COVID-19 pandemic and related government mandates and restrictions have had a significant impact on the media, advertising and entertainment industries in which we operate. To date, the COVID-19 pandemic has had some impact on our business, including with respect to the execution of new and renewal contracts, the impact of closed movie theaters on our customers, customer payment delays and requests to modify contractual payment terms. These conditions have negatively impacted our revenue and cash flows, particularly in our movies business, and could continue to have an impact in future periods. It is possible that long-term changes in consumer behavior will impact our customers' operations, and thus their demand for our services and ability to pay, even after the spread of COVID-19 has been contained and businesses resume normal operations. While we have taken actions to mitigate the impact of the COVID-19 pandemic, these steps may not be successful or adequate if customer demand or cash collection efforts are further impacted by the COVID-19 pandemic or other factors.
We face risks related to the Russian invasion of Ukraine, including from the resulting geopolitical effects.
The Russian invasion of Ukraine has resulted in worldwide geopolitical and macroeconomic uncertainty. The U.S. and others have imposed financial and economic sanctions on certain industry sectors and parties in and associated with Russia and Belarus, and additional sanctions could be adopted in the future. Compliance with the sanctions and export controls regime is complex and may lead to increased regulatory scrutiny, particularly with respect to data collection and data transfer in affected regions. The conflict may also heighten risks relating to employee safety, cybersecurity incidents or disruptions to our information systems, operational costs, reputational damage and potential retaliatory action by the Russian government or other actors. As the situation develops and the regulatory environment continues to evolve, we may adjust our business practices as required or appropriate to respond to the changes. While we do not currently expect the conflict to have a direct material impact on our business, it is not possible to predict the broader consequences, which could include additional sanctions, embargoes, regional instability, geopolitical shifts and adverse effects on the global economy or on our business and operations, as well as those of our customers, partners and third-party service providers.
Risks Related to Our Results of Operations
Our revenues and results of operations may fluctuate in the future. As a result, we may fail to meet or exceed the expectations of securities analysts or investors, which could cause our stock price to decline.
Our results of operations may fluctuate as a result of a variety of factors, many of which are outside of our control. If our revenues or results of operations do not meet or exceed the expectations of securities analysts or investors, the price of our Common Stock could decline substantially. Factors that may cause fluctuations in our revenues or results of operations include:
our ability to increase sales to existing customers and attract new customers in the current economic environment;
our ability to respond to changes in our customers' businesses and consumer behavior resulting from the COVID-19 pandemic and other factors;
changes in our customers' subscription renewal behaviors and spending on projects, particularly custom projects and usage-based products;
the impact of our contract renewal rates caused by our customers' budgetary constraints, competition, customer dissatisfaction or customer corporate restructuring;
the timing of contract renewals, delivery of products and duration of contracts and the corresponding timing of revenue recognition;
the effect of revenues generated from significant one-time projects or the loss of such projects;
the timing and success of new product introductions or changes in methodology by us or our competitors;
the impact of our Preferred Stock transactions, including our long-term data license with Charter;
changes in our pricing and discounting policies or those of our competitors;
the impact of our decision to discontinue certain products or exit certain geographic regions;
our failure to accurately estimate or control costs, including those incurred as a result of business or product development initiatives, restructuring activities, legal proceedings, strategic or financing transactions, and the integration of acquired businesses;
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the cost and availability of data from third-party sources and the cost to integrate such data into our systems and products and implement new use cases;
adverse judgments or settlements, or increased legal fees, in legal disputes or government proceedings;
costs incurred in connection with corporate transactions, including financial advisory, legal, accounting, consulting and other advisory fees and expenses;
service of our existing debt and incurrence of additional debt;
the amount and timing of capital expenditures and operating costs related to the maintenance, migration and expansion of our operations and infrastructure;
service outages, other technical difficulties or security breaches;
limitations relating to the capacity of our networks, systems and processes;
maintaining appropriate staffing levels and capabilities, particularly during organizational restructuring;
limitations on our ability to use equity awards to compensate current and prospective employees;
the cost and timing of organizational restructuring;
the timing of any changes to our deferred tax valuation allowance;
changes in the fair value of our financing derivatives or warrants; and
general economic, political, regulatory, industry and market conditions and those conditions specific to media and advertising internet usage and online businesses.
We believe that our revenues and results of operations on a year-over-year and sequential quarter-over-quarter basis may vary significantly in the future and that period-to-period comparisons of our operating results may not be meaningful. Investors are cautioned not to rely on the results of prior periods as an indication of future performance.
We may not be able to generate or obtain sufficient cash to service our debt, dividend obligations, lease facilities and trade payables.
We currently have indebtedness and lease facilities, as well as trade payables, including expenses incurred in prior periods. In addition, we are required to pay annual cash dividends on our Preferred Stock, and we may incur additional debt for operations or to fund a special dividend to the holders of our Preferred Stock. These obligations could require us to use a large portion of our cash flow from operations to service our debt, dividend obligations and lease facilities and pay accrued expenses. They could also limit our flexibility to invest in our business and adjust to market conditions, which could impact our customer relationships and place us at a competitive disadvantage.
We expect to obtain the funds to pay our expenses and meet our financial obligations from cash flow from our operations and, potentially, from other debt or equity offerings. Accordingly, our ability to meet our obligations depends on our future performance and capital-raising activities, which will be affected by financial, business, contractual, economic and other factors, some of which are beyond our control. Failure to meet our payment obligations to vendors could disrupt our supply of goods and services and impact our reputation, creditworthiness and relations with customers and partners. It could also lead to costly litigation. Failure to meet our dividend payment obligations could result in an increase in the annual dividend rate, among other things.
If our cash flow and capital resources prove inadequate to allow us to pay the interest and principal on our debt when due and meet our other financial obligations, we could face substantial liquidity challenges and might be required to dispose of material assets or operations, restructure or refinance our debt (which we may be unable to do on acceptable terms) or forego attractive business opportunities. In addition, the terms of our existing or future financing agreements and Preferred Stock may restrict us from pursuing these alternatives. Failure to meet our financial obligations could have important consequences including, potentially, forcing us into bankruptcy or liquidation.
Our financial condition and results of operations could suffer and be adversely affected if we incur another impairment of goodwill or other intangible assets.
We are required to test goodwill and intangible assets, annually and on an interim basis if an event occurs or there is a change in circumstance that would more likely than not reduce the fair value of our reporting unit below its carrying value or indicate that the carrying value of such intangibles is not recoverable. When the carrying value of a reporting unit exceeds its fair value, a charge to operations, up to the total amount of goodwill, is recorded. If the carrying amount of an intangible asset is not recoverable, a charge to operations is recognized. Either event would result in incremental expense for that period, which would reduce any earnings or increase any loss for the period in which the impairment was determined to have occurred. We recorded a $224.3 million impairment charge related to goodwill and a $17.3 million impairment charge for our strategic alliance intangible asset in 2019. We recorded a $4.7 million impairment charge related to our right-of-use ("ROU") assets, and related leasehold improvements, during 2020. We recorded a $46.3 million impairment charge related to goodwill in the third quarter of 2022.
Our impairment analysis is sensitive to changes in key assumptions used in our analysis, such as expected future cash flows, the degree of volatility in equity and debt markets and our stock price. Additionally, changes in our strategy or significant technical
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developments could significantly impact the recoverability of our intangible assets. If the assumptions used in our analysis are not realized, it is possible that an additional impairment charge may need to be recorded in the future.
Changes in the fair value of our derivative financial instruments or warrants could adversely affect our financial condition and results of operations.
Our financing derivatives and warrants are classified as liabilities in our consolidated financial statements. We use various models and assumptions to determine the fair value of these liabilities, including assumptions with respect to market rates, the price and volatility of our Common Stock, the probability of occurrence of certain events, and term. Any change in our assumptions could result in a change in the fair value of our derivative liabilities or warrants, which would be recorded to earnings and could significantly affect our financial condition and results of operations. Any adjustment to the terms of our warrants (whether due to the application of antidilution provisions, payment of a special dividend or otherwise) also could result in a change in the fair value of the warrants and affect our financial condition and results of operations.
We may encounter difficulties managing our costs, which could adversely affect our results of operations.
We believe that we will need to continue to effectively manage our organization, operations and facilities in order to accommodate changes in our business and to successfully integrate acquired data and businesses. If we continue to change or grow, either organically or through acquired businesses, our current systems and facilities may not be adequate and may need to be expanded or reduced. For example, we may be required to enter into leases for additional facilities or commit to significant investments in the build out of current or new facilities, or we may need to renegotiate or terminate leases to reflect changes in our business and workforce. If we are unable to effectively forecast our facilities needs or if we are unable to sublease or terminate leases for unused space, we may experience increased and unexpected costs. Moreover, our need to effectively manage our operations and cost structure requires that we continue to assess and improve our operational, financial and management controls, reporting systems and procedures.
From time to time, as a result of acquisition integration initiatives, or through efforts to improve or streamline our operations (including the Restructuring Plan), we have reduced our workforce or reassigned personnel, and we may do so in the future. Such actions may expose us to disruption by dissatisfied employees or employee-related claims, including claims by terminated employees who believe they are owed more compensation than we believe these employees are due under our compensation and benefit plans, or claims maintained internationally in jurisdictions whose laws and procedures differ from those in the U.S.
If we are not able to efficiently and effectively manage our cost structure and resolve employee-related claims, or if we are unable to manage our space to support our needs, our business may be impaired.
We have a history of significant net losses, may incur significant net losses in the future and may not achieve profitability.
We incurred net losses of $66.6 million, $50.0 million and $47.9 million for the years ended December 31, 2022, 2021 and 2020, respectively. We cannot make assurances that we will be able to achieve profitability in the future. As of December 31, 2022, we had an accumulated deficit of $1.3 billion. Because a large portion of our costs are fixed, we may not be able to adequately reduce our expenses in response to any decrease in our revenues, which would materially and adversely affect our operating results. In addition, our operating expenses may increase as we implement certain growth initiatives and restructuring activities, which include, among other things, the development of new products, enhancement of our data assets and infrastructure, and payment of severance and other costs in connection with organizational restructuring. If our revenues do not increase to offset these increases in costs and operating expenses, our operating results would be materially and adversely affected.
Our net operating loss carryforwards may expire unutilized or underutilized, which could prevent us from offsetting future taxable income.
Under the provisions of Internal Revenue Code Section 382, certain substantial changes in the Company's ownership may result in a limitation on the amount of U.S. net operating loss carryforwards that can be utilized annually to offset future taxable income and taxes payable. A significant portion of our net operating loss carryforwards are subject to an annual limitation under Section 382 of the Internal Revenue Code. We anticipate that our 2021 Preferred Stock transactions may have triggered further limitations, but we have not yet reached a final conclusion as to whether an ownership change occurred and to what extent our carryforwards are further limited.
As of December 31, 2022, we estimate our U.S. federal and state net operating loss carryforwards for tax purposes were $584.8 million and $1.4 billion, respectively, subject to limitation as described above. These net operating loss carryforwards will begin to expire in 2031 for federal income tax reporting purposes and in 2023 for state income tax reporting purposes. The federal and certain state net operating losses generated after December 31, 2017 have an indefinite carryforward period as a result of the enactment of the Tax Cuts and Jobs Act ("TCJA"). As of December 31, 2022, we estimate our aggregate net operating loss carryforwards for tax purposes related to our foreign subsidiaries were $9.8 million, which will begin to expire in 2024.
We apply a valuation allowance to our deferred tax assets when management does not believe that it is more-likely-than-not that they will be realized. In assessing the need for a valuation allowance, we consider all sources of taxable income, including potential opportunities for loss carrybacks, the reversal of existing temporary differences associated with our deferred tax assets and liabilities, tax planning strategies and future taxable income. We also consider other evidence such as historical pre-tax book income in making
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the determination. As of December 31, 2022, we continue to have a valuation allowance recorded against the net deferred tax assets of our U.S. entities and certain foreign subsidiaries, including net operating loss carryforwards.
Risks Related to Legal and Regulatory Compliance, Litigation and Tax Matters
Concern over privacy violations and data breaches could lead to public relations problems, regulatory scrutiny and lawsuits, which could harm our business.
We are subject to data privacy and protection laws and regulations that apply to the collection, transmission, storage and use of personal information. The regulatory environment surrounding information security and data privacy varies from jurisdiction to jurisdiction and is constantly evolving and increasingly demanding. The restrictions imposed by such laws continue to develop and may require us to incur substantial costs and fines or adopt additional compliance measures, such as notification requirements and corrective actions.
Any perception of our practices, products or services as a violation of individual privacy rights may subject us to public criticism, loss of customers, partners or vendors, litigation (including class action lawsuits), reputational harm, or investigations or claims by regulators, industry groups or other third parties, all of which could significantly disrupt our business and expose us to increased liability. Additionally, laws regulating privacy and third-party products purporting to address privacy concerns could negatively affect the functionality of, and demand for, our products and services, thereby resulting in loss of customers, partners and vendors and harm to our business.
We also rely on security questionnaires and contractual representations made to us by customers, partners, vendors and other third-party data providers that their own use of our services and the information they provide to us do not violate any applicable privacy laws, rules and regulations or their own privacy or security policies. As a component of our client contracts, we generally obligate customers to provide their consumers the opportunity to obtain the appropriate level of consent (including opt outs) for the information collection associated with our services, as applicable, or provide another appropriate legal basis for collection. If these questionnaires or representations are false, inaccurate or incomplete, or if our customers, partners, vendors and other third-party data providers do not otherwise comply with applicable privacy laws or security practices, we could face adverse publicity and possible legal or regulatory action.
Outside parties, including foreign actors, may attempt to fraudulently induce our employees or users of our solutions to disclose sensitive information via illegal electronic spamming, phishing, threats or other tactics. Unauthorized parties may also attempt to gain physical access to our information systems. This risk may be heightened in U.S. election years, particularly from foreign governments and other foreign actors. Any breach of our security measures or the accidental loss, inadvertent disclosure or unauthorized dissemination of proprietary information or sensitive, personal or confidential data about us, our employees or our customers, partners or vendors, including the potential loss or disclosure of such information or data as a result of hacking, fraud, trickery or other forms of deception, could expose us, our employees, our customers or the individuals affected to risks of loss or misuse of this information. Any actual or potential breach of our security measures may result in litigation and potential liability or fines, governmental inquiry or oversight or a loss of customer confidence, any of which could harm our business and damage our brand and reputation, possibly impeding our present and future success in retaining and attracting new customers and thereby requiring time and resources to repair our brand.
Domestic or foreign laws, regulations or enforcement actions may limit our ability to collect and incorporate media usage information in our products, which may decrease their value and cause an adverse impact on our business and financial results.
Our business could be adversely impacted by existing or future laws, regulations or actions by domestic or foreign regulatory agencies, or by our customers' or partners' efforts to comply with these laws. For example, privacy, data protection and personal information, intellectual property, advertising, data security, data retention and deletion, protection of minors, consumer protection, economic or other trade prohibitions or sanctions concerns have and could continue to lead to legislative, judicial and regulatory limitations on our and our partners' ability to collect, maintain and use information about consumers' behavior and media consumption in the U.S. and abroad, impacting the amount and quality of data in our products and increasing our costs.
State and federal laws within the U.S. and foreign laws and regulations are varied, overlapping and at times conflicting, resulting in higher risk related to compliance. A number of laws have recently come into effect, and there are proposals pending before federal, state and foreign legislative and regulatory bodies that have affected and are likely to continue to affect our business. For example, the European Union's ("EU") General Data Protection Regulation, or GDPR, became effective in 2018, imposing more stringent EU data protection requirements and providing for greater penalties for noncompliance. In addition, regulators in the EU, the U.S. and elsewhere are increasingly focused on transparency, consent, consumer choice and the collection of data using tracking technologies. In the EU, cross-border data transfers are increasingly scrutinized to ensure compliance, and there have been expanded enforcement efforts in this area. Five U.S. states now have comprehensive privacy laws governing the collection and use of personal information. The California Consumer Privacy Act, which went into effect in 2020, was substantially expanded by the California Privacy Rights Act of 2020, which went into effect in January 2023. The Virginia Consumer Data Protection Act, the Colorado Privacy Act, the Connecticut Data Privacy Act and the Utah Consumer Privacy Act all came into effect or will come into effect in 2023. These U.S.
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federal and state and foreign laws and regulations, which in some cases can be enforced by private parties in addition to government entities, are constantly evolving and impose new and complex requirements on our business.
We have implemented policies and procedures to comply with the GDPR, state privacy laws, the Children's Online Privacy Protection Act and other laws and regulations, and we continue to evaluate and implement processes and enhancements and monitor changes in laws and regulations. However, the application, interpretation, and enforcement of these laws and regulations are often uncertain, particularly in the rapidly evolving industries in which we operate, and may be interpreted and applied inconsistently from country to country, state to state, and customer to customer, and inconsistently with our current policies and practices. Additionally, the costs of compliance with, and the other burdens imposed by, these and other laws, regulatory actions and customer or partner policies may prevent us from selling our products, may require us to alter our products in ways that make them less competitive or compelling to customers, may divert development resources from other priorities, may continue to increase the costs associated with selling our products, and may affect our ability to invest in or jointly develop products in the U.S. and in foreign jurisdictions. In addition, failure to comply with these and other laws and regulations may result in, among other things, administrative enforcement actions and substantial fines, individual and class action lawsuits, contractual breaches, significant legal fees, and civil and criminal liability. Any regulatory or civil action that is brought against us, even if unsuccessful, may distract our management's attention, divert our resources, negatively affect our public image or reputation among our panelists, customers, partners and vendors, and harm our business.
An assertion from a third party that we are infringing its intellectual property rights, whether such assertion is valid or not, could subject us to costly and time-consuming litigation or expensive licenses.
The media measurement, software and technology industries are characterized by the existence of a large number of patents, copyrights, trademarks and trade secrets and by frequent litigation based on allegations of infringement or other violations of intellectual property rights, domestically or internationally. As we grow, evolve our products and methodologies, and face increasing competition, the probability that one or more third parties will make intellectual property rights claims against us increases. In such cases, our products, technologies or methodologies may be found to infringe on the intellectual property rights of others. Additionally, many of our agreements may require us to indemnify our customers for third-party intellectual property infringement claims, which would increase our costs if we have to defend such claims and may require that we pay damages and provide alternative services if there were an adverse ruling in any such claims. Intellectual property claims could harm our relationships with our customers, deter future customers from buying our products or expose us to litigation, which could be expensive and divert considerable attention of our management team from the normal operation of our business. Even if we are not a party to any litigation between a customer and a third party, an adverse outcome in any such litigation could make it more difficult for us to defend against intellectual property claims by the third party in any subsequent litigation in which we are a named party. Any of these results could adversely affect our brand, business and results of operations.
With respect to any intellectual property rights claim against us or our customers, we may have to pay damages or stop using technology or methodologies found to be in violation of a third party's rights. We may have to seek a license for the technology, which may not be available on reasonable terms or at all, may significantly increase our operating expenses or may significantly restrict our business activities in one or more respects. We may also be required to develop alternative non-infringing technology or methodologies, which could require significant effort and expense. Any of these outcomes could adversely affect our business and results of operations. Even if we prove successful in defending ourselves against such claims, we may incur substantial expenses and the defense of such claims may divert considerable attention of our management team from the normal operation of our business.
The success of our business depends in large part on our ability to protect and enforce our intellectual property rights.
We rely on a combination of patent, copyright, service mark, trademark and trade secret laws, as well as confidentiality procedures and contractual restrictions, to establish and protect our proprietary rights, all of which provide only limited protection. We endeavor to enter into agreements with our employees and contractors and with parties with whom we do business in order to limit access to and disclosure of our proprietary information. We cannot be certain that the steps we have taken will prevent unauthorized use of our technology or the reverse engineering of our technology. Moreover, we may not have adequate resources to devote to obtaining new intellectual property protection for our technology and products, defending our existing rights, or maintaining the security of our know-how and data. We cannot make assurances that any additional patents will be issued with respect to any of our pending or future patent applications, nor can we assure that any patent issued to us will provide adequate protection, or that any patents issued to us will not be challenged, invalidated, circumvented, or held to be unenforceable in actions against alleged infringers. Also, we cannot make assurances that any future trademark or service mark registrations will be issued with respect to pending or future applications or that any of our registered trademarks and service marks will be enforceable or provide adequate protection of our proprietary rights. If we are unable to protect our intellectual property rights, or if we must engage in costly and time-consuming litigation to enforce our rights, our results of operations and financial condition could be adversely affected.
Our use of open source software could limit our ability to sell our products, subject our code to public disclosure or require us to reengineer our products.
We use open source software in certain of our products, and it is also contained in some third-party software that we license. There are many types of open source licenses, some of which have not been interpreted or adjudicated by U.S. or other courts. Our use of open
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source licenses could limit our ability to sell our products or subject our proprietary code to public disclosure if not properly managed. Remediation of such issues may involve licensing software on costly or unfavorable terms or reengineering our products, either of which could have an adverse effect on our results of operations and financial condition.
We are subject to taxation in multiple jurisdictions. Any adverse development in the tax laws of any of these jurisdictions or any disagreement with our tax positions could have a material and adverse effect on our business, financial condition or results of operations.
We are subject to taxation in, and to the tax laws and regulations of, multiple jurisdictions as a result of the international scope of our operations and our corporate entity structure. We are also subject to transfer pricing laws with respect to our intercompany transactions, including those relating to the flow of funds among our companies. Adverse developments in these laws or regulations, or any change in position regarding the application, administration or interpretation thereof, in any applicable jurisdiction, could have a material and adverse effect on our business, financial condition or results of operations. In addition, the tax authorities in any applicable jurisdiction, including the U.S., may disagree with the positions we have taken or intend to take regarding the tax treatment or characterization of any of our transactions. If any applicable tax authorities, including U.S. tax authorities, were to successfully challenge the tax treatment or characterization of any of our transactions, it could have a material and adverse effect on our business, financial condition or results of operations.
In August 2022, the Inflation Reduction Act ("IRA") was enacted in the U.S. Although we do not currently expect the IRA to have a material impact on our business, we are continuing to analyze its provisions. Moreover, the current U.S. presidential administration has made various other proposals that, if enacted, would cause significant changes to existing tax law, in particular, an increase in U.S. federal income taxes on corporations and the tax rate on foreign earnings.
In addition to changes in U.S. law, longstanding international tax norms that determine each country's jurisdiction to tax cross-border international trade are subject to potential evolution. In October 2021, the Organization for Economic Cooperation and Development ("OECD") announced the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (the "Framework"), which included a two-pillar solution to address tax challenges arising from digitalization of the economy. In December 2021, the OECD released Pillar Two Model Rules, defining global minimum tax rules that contemplate a minimum tax rate of 15% for multinational enterprises with annual global turnover exceeding €750 million. Although our current results are below the threshold for application of the global minimum tax, future growth in our business or changes in the Framework or related laws and regulations could result in the application of a minimum tax to our business, which could adversely affect our financial condition and results.
There can be no assurance that future changes to federal and state tax laws in the U.S. and foreign tax laws will not be proposed or enacted that could materially impact our business or financial results. If and when any of these changes are put into effect, they could result in tax increases where we do business both in and outside of the U.S. and could have a material and adverse effect on our results of operations.
Taxing authorities may successfully assert that we should have collected or in the future should collect sales and use, value added or similar taxes, and we could be subject to liability with respect to past or future sales.
In certain cases, we have concluded that we do not need to collect sales and use, value added and similar taxes in jurisdictions in which we have sales or operations. Certain jurisdictions in which we do not collect such taxes may assert that such taxes are applicable, which could result in tax assessments, penalties and interest, and we may be required to collect such taxes in the future. Such tax assessments, penalties and interest or future requirements may adversely affect our financial condition and results of operations.
Risks Related to International Operations
Our business could become increasingly susceptible to risks associated with international operations.
In the past, we acquired various businesses with substantial presence or clientele in multiple Latin American, European and Asian countries. Prior to these acquisitions, we otherwise had limited experience operating in markets outside of the U.S. Our inexperience in operating our business outside of the U.S. may increase the risk that the international businesses in which we are engaged will not be successful. In addition, conductingConducting international operations subjects us to risks that we havegenerally do not generally facedface in the U.S. These risks include:
recruitment and maintenance of a sufficiently large and representative panel both globally and in certain countries;
difficulties and expenses associated with tailoring our products to local and international markets as may be required by local customers and joint industry committees or similar industry organizations;
difficulties in expanding the adoption of our server- or census-based web beacon data collection in internationalcertain countries or obtaining access to other necessary data sources;
differences in customer buying behaviors;
the complexities and expense of complying with a wide variety of foreign laws and regulations, including the GDPR, other privacy and data protection laws and regulations, and foreign anti-corruption laws, (asas well as the U.S. Foreign Corrupt Practices Act);Act;
difficulties in staffing and managing international operations, including complex and costly hiring, disciplinary, and termination requirements;requirements as well as third-party contracting arrangements;
the complexities of foreign value-added taxes and restrictions on the repatriation of earnings;earnings, particularly following the enactment of the TCJA;
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reduced or varied protection for intellectual property rights in some countries;
political, social and economic instability abroad, terrorist attacks and security concerns;
fluctuations in currency exchange rates; and
increased accounting and reporting burdens and complexities.
Additionally, operating in international markets requires significant additional management attention and financial resources. We cannot be certain that the investments and additional resources required to establish and maintain operations in other countries will hold their value or produce desired levels of revenues or profitability. We cannot be certain that we will be able to comply with laws, rules, regulations or local guidelines to maintain andor increase the size of the user panels that we currently have in various countries, that we will be able to recruit a representative sample for our audience measurement products or that we will be able to enter into arrangements with a sufficient number of website and mobile app content providers and/or television operators to allow us to collect server-based information for inclusion in our digital media analytics products. In addition, there can be no assurance that internet usage and e-commerce will continue to grow in international markets. In addition, governmental authorities in various countries have different views regarding regulatory oversight of the internet, data protection and consumer privacy.
The impact of these risks could negatively affect our international business and, consequently, our financial conditionscondition and results of operations.

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Export controls and economic and trade sanctions laws could impair our ability to compete in international markets and subject us to liability if we are not in full compliance with applicable laws.
Our business activities include the collection of survey data from panelists around the world, and such activities aremay be subject to various restrictions under U.S. export controls and economic and trade sanctions laws, including the U.S. Commerce Department’s Export Administration Regulations and sanctions administered by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC).laws. If we fail to comply with these laws and regulations, we could be subject to civil or criminal penalties and reputational harm.
Although we take precautions to prevent the collection of survey data from panelists in embargoed countries that aremay be subject to export controls and economic and trade sanctions under these laws and regulations, we have collected such data in the past, and there is a risk that we could collect such data in the future despite suchour precautions. We are currently implementinghave implemented a number of additional screening and other remedial measures designed to prevent such transactions with embargoed countries and other U.S. sanctions targets. Changes in the list of embargoed countries and regions or prohibited persons may require us to modify these procedures in order to comply with governmental regulations. Our failure to screen potential panelists properly could result in negative consequences to us, including government investigations, penalties and reputational harm, any of which could materially and adversely affect our business, financial condition or results of operations.
Changes in foreign currencies could have an increaseda significant effect on our operating results.
We operate in severalnumerous countries in Latin America, Europe and Asia. A portion of our revenues and expenses from business operations in foreign countries are derived from transactions denominated in currencies other than the functional currency of our operations in those countries. As such, we have exposure to adverse changes in exchange rates associated with revenues and operating expenses of our foreign operations, but weand these changes have impacted our results in prior periods. We do not currently enter into any hedging instruments that hedge foreign currency exchange rate risk. If we grow our international operations, orif we acquire companies with established business in international regions, or if exchange rates become more variable, our exposure to foreign currency risk could become more significant.
Risks Related to Our Capital Structure and Financings
Restrictive covenantsThe holders of our Preferred Stock have significance influence over the Company, may prevent other stockholders from influencing significant corporate decisions, and may have interests that conflict with those of our other stockholders.
On January 7, 2021, we entered into separate Series B Convertible Preferred Stock Purchase Agreements (collectively, the "Securities Purchase Agreements") with each of Charter Communications Holding Company, LLC ("Charter"), Qurate Retail, Inc. ("Qurate") and Pine Investor, LLC ("Pine") (collectively, the "Investors"). The issuance of securities pursuant to the Securities Purchase Agreements (the "Transactions") and related matters were approved by our stockholders on March 9, 2021 and completed on March 10, 2021. In connection with the Transactions, we also entered into a long-term data license with Charter, which was intended to enhance our ability to execute on our strategic plans and growth initiatives.
At the closing of the Transactions, the Preferred Stock was initially convertible into an aggregate of 82,527,609 shares of our Common Stock (subject to adjustment). On an as-converted basis, this collectively represented approximately 50.6% of our issued and outstanding Common Stock immediately following the closing (equating to approximately 16.9% per Investor), and the Investors became the largest stockholders of the Company. The Investors remained the largest stockholders of the Company as of December 31, 2022, with each Investor's Preferred Stock representing approximately 16.1% of our issued and outstanding Common Stock on an as-converted basis and certain Investors holding (or reporting beneficial ownership of) additional shares of Common Stock beyond their Preferred Stock holdings. This concentration of ownership, together with the voting rights, director designation rights, consent rights and dividend rights described below, has been criticized by certain stockholders, may be perceived negatively by other investors and, as a result, may adversely affect the market price of our Common Stock.
As of December 31, 2022, each Investor's Preferred Stock represented approximately 15.6% of the outstanding voting power of the Company on an as-converted basis. In addition, under the Stockholders Agreement that we entered into in connection with the
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Transactions, each Investor has the right to designate two directors to serve on our board of directors until the earlier of such time as the Investor (a) beneficially owns less than 50% of the shares of Preferred Stock held by such Investor as of the date of the closing (the "Initial Preferred Stock Ownership") as a result of the Investor's transfer of such shares to any of the other Investors or (b) beneficially owns voting stock representing less than 10% of the outstanding shares of Common Stock (on an as-converted basis), after which the Investor's designation rights will be reduced to one designee until such time as the Investor beneficially owns Voting Stock representing less than 5% of the outstanding shares of Common Stock (on an as-converted basis). Additionally, under certain circumstances, an Investor may gain additional board designation rights and in some instances, we may even be obligated to increase the size of our board to enable an Investor to designate one additional director nominee. As of the date of this 10-K, each Investor has designated two directors on our board of directors.
Pursuant to the Stockholders Agreement, each Investor has consent rights over certain significant matters of our business. These include, but are not limited to, decisions: (a) to amend our organizational documents; (b) to create, increase, reclassify, issue or sell any additional Preferred Stock; (c) to consummate a change of control transaction; (d) to create or issue indebtedness that would cause us to exceed a specified leverage ratio; (e) to increase or decrease the number of directors on our board of directors or certain committees thereof; (f) to change the nature of our business in any material respect; (g) to make certain changes to our management; (h) to declare cash dividends or distributions; (i) to enter into certain related-party transactions; and (j) to adopt certain shareholder rights plans. As a result, each Investor is able to influence fundamental corporate matters and transactions.
As holders of our Preferred Stock, the Investors are entitled to a cumulative dividend at the rate of 7.5% per annum, payable annually in arrears and subject to increase under certain circumstances. In addition, each Investor is entitled to request, and we are obligated to take all actions reasonably necessary to pay, a one-time special dividend equal to the highest amount that our board of directors determines can be paid at the applicable time, subject to additional conditions and limitations set forth in the agreements governing our current and future indebtedness could restrict our operating flexibility.Stockholders Agreement. As described in the Stockholders Agreement, we may be obligated to obtain debt financing in order to effectuate the special dividend.
The agreements governinginterests of the Investors may not always coincide with our existing debt,interests or the interests of our other stockholders, and debtthe rights described above may delay, deter or prevent acts that would be favored by our other stockholders. Also, the Investors may seek to cause us to take courses of action that, in their judgment, could enhance their investment in us, but which might involve risks to our other stockholders or adversely affect us or our other stockholders.
We may not be able to realize the anticipated benefits of the Transactions.
The anticipated benefits of the Transactions, including expected commercial benefits from the data license with Charter and other relationships and expertise from the Investors, may not be realized fully or may take longer to realize than we expect. Actual operating, strategic and revenue opportunities may incurbe less significant than we expect or may take longer to achieve than we anticipate. If we are not able to achieve these objectives and realize the anticipated benefits from the Transactions, our business, financial condition and operating results may be adversely affected.
The market value of our Common Stock could decline if the Investors sell their Preferred Stock or Common Stock after certain transfer restrictions expire.
Pursuant to the Stockholders Agreement, until the second anniversary of the Transactions closing (March 10, 2023), and subject to certain exceptions, each Investor has agreed not to sell more than 50% of such Investor's Initial Preferred Stock Ownership, including any shares of Common Stock issued or issuable upon conversion of such Preferred Stock. Pursuant to the Registration Rights Agreement that we entered into in connection with the Transactions, we registered the resale of the shares of Preferred Stock and the shares of Common Stock underlying the Preferred Stock with the SEC, which means that such shares may be eligible for resale in the public markets following the expiration of applicable transfer restrictions. Any sale of such shares, or the anticipation of the possibility of such sales, could create downward pressure on the market price of our Common Stock.
Our credit facility may impact our ability to operate our business and secure additional financing in the future, contain, or may contain, affirmative and negativeany failure to meet our debt obligations could adversely affect our business and financial condition.
We have a senior secured revolving credit agreement (the "Revolving Credit Agreement") with a borrowing capacity of $40.0 million. As of the date of this 10-K, we had borrowings and letters of credit outstanding under the Revolving Credit Agreement totaling $19.4 million. Amounts outstanding under the Revolving Credit Agreement currently bear interest at a rate per annum equal to the Daily SOFR (as defined in the Revolving Credit Agreement) plus 3.50%. In addition, the Revolving Credit Agreement provides for an unused commitment fee equal to 0.25% of the unused commitments. The Revolving Credit Agreement matures on May 5, 2024.
Servicing our indebtedness under the Revolving Credit Agreement could divert resources from other priorities, including investment in our products and operations and satisfaction of our outstanding trade payables. If our cash flow from operations is inadequate to allow us to pay the interest and principal on our debt when due and meet our other financial obligations, we could face substantial liquidity challenges.
Under the Revolving Credit Agreement, we are subject to restrictive covenants that materially limitlimiting our ability to, take certain actions, including our ability toamong other things, incur debt, payadditional indebtedness, permit additional liens, make investments and loans, enter into mergers and acquisitions, make or declare dividends and repurchase stock, make certain investments and other payments, enter into certain mergerscontracts, sell assets, and consolidations,engage in transactions with affiliates. These covenants could limit our operating flexibility and encumbercause us to forego attractive business opportunities, which could hurt our customer relationships and
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put us at a competitive disadvantage. The covenants also could prevent us from securing additional financing in the future, including to fund our operations, satisfy liabilities, or pay dividends to the holders of our Preferred Stock.
In addition, we are subject to financial covenants under the Revolving Credit Agreement, including a requirement to maintain a minimum Consolidated Asset Coverage Ratio and minimum Liquidity through maturity, minimum Consolidated EBITDA for periods through December 31, 2023, and a minimum Consolidated Fixed Charge Coverage Ratio for periods after December 31, 2023 (each term as defined in the Revolving Credit Agreement). While we are currently in compliance with these covenants, there is no guarantee that we will be able to achieve our plans and remain in compliance in future periods. Moreover, our ability to comply with the covenants could be affected by economic, financial, competitive, regulatory and other factors beyond our control.
If we fail to meet our financial covenants or other obligations under the Revolving Credit Agreement, the lender(s) may accelerate any amounts outstanding under the Revolving Credit Agreement and may terminate their commitments to extend further credit. This could have important consequences for our company, including requiring us to restructure or refinance our debt (which we may be unable to do on acceptable terms or at all), dispose of assets.assets or, potentially, enter into liquidation or bankruptcy.
We may require additional capital to support our business, and this capital may not be available on acceptable terms or at all.
We intend to continue to make investments to support our business growth and may require additional funds to respond to business challenges, including the need to develop new products or enhance our existing products, enhance our operating infrastructure, retain and hire key personnel, and acquire complementary businesses and technologies.
In addition, as described above, the holders of our Preferred Stock have certain dividend rights, including the right to request a special dividend. Accordingly, we may need to engage in equity or debt financings to secure additional funds. If we raise additional funds through further issuances of equity or convertible debt securities, our existing stockholders could suffer significant dilution, and any new securities we issue could have rights, preferences and privileges superior to those of holders of our Common Stock. Any financing secured by us in the future could include restrictive covenants relating to our capital raising activities and other financial and operational matters, which may make it more difficult for us to obtain additional capital and to pursue business opportunities, including potential acquisitions. Servicing future debt obligations could also limit our flexibility to invest in the business and adjust to market conditions, which could impact our customer relationships and place us at a competitive disadvantage.
In addition, due to the delayed filingAs a result of our periodic reportssettlement with the SEC relating to financial accounting and disclosure practices between February 2014 and February 2016, we are not currently eligiblesubject to use a "bad actor" disqualification and are unable to rely on certain exemptions from registration statement on Form S-3under the federal securities laws, including Regulation D. This could make it more difficult for us to registerraise necessary financing in the offerfuture.
Capital and sale of securities, which could delay potential financings. As a result, we may not be able to obtain additional financing within a timetable, or on terms, favorable to us or at all.
Creditcredit market turmoil,conditions, adverse events affecting our business or industry, the tightening of lending standards, rising interest rates, negative actions by regulatory authorities or rating agencies, or other factors also could negatively impact our ability to obtain future financing or to refinance our outstanding indebtedness on terms acceptable to us or at all. If we are unable to obtain adequate financing or financing on terms satisfactory to us when we require it, our ability to support our business growth, meet our dividend payment obligations, and to respond to business challenges could be significantly limited. In addition, the terms of any additional equity or debt issuances may adversely affect the value and price of our Common Stock.Stock, our results of operations, financial condition and cash flows.

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General Risks Related to the Securities Markets and Ownership of Our Common Stock
Our Common Stock is quoted on the OTC Markets, which may limit your ability to sell your shares of Common Stock.
Our Common Stock is currently quoted on the OTC Pink Tier of the OTC Markets under the symbol “SCOR.” Stocks quoted on the OTC Markets generally have limited trading volume and exhibit a wider spread between the bids and ask quotations as compared to stocks traded on national exchanges. Accordingly, you may not be able to sell your shares of Common Stock quickly or at the market price if trading in our Common Stock is not active.
The trading price of our Common Stock may be subject to significant fluctuations and volatility, and our stockholders may be unable to resell their shares at a profit.
The stock markets, in general, and the markets for technology stocks in particular, have experienced high levels of volatility. The market for technology stocks has been extremely volatile and frequently reaches levels that bear no relationship to the past or present operating performance of those companies. These broad market fluctuations may adversely affect the trading price of our Common Stock. In addition, the trading price of our Common Stock has been subject to significant fluctuations and may continue to fluctuate or decline.
The price of our Common Stock in the market may be higher or lower, depending on many factors, some of which are beyond our control and may not be related to our operating performance. It is possible that, in future quarters, our operating results may be below the expectations of analysts or investors. As a result of these and other factors, the price of our Common Stock may decline, possibly materially. These fluctuations could cause an investor to lose all or part of their investment in our Common Stock.
The Company’sCompany's outstanding securities, the stock or securities that we may become obligated to issue under existing or future agreements, and certain provisions of those securities, may cause immediate and substantial dilution to our existing stockholders.
Our existing stockholders have and may continue to experience substantial dilution as a result of our obligations to issue shares of Common Stock.
On January 16, 2018, we enteredAs of December 31, 2022, our Preferred Stock was convertible into certain agreements with Starboard, pursuant to which we issued and sold to Starboard $150.0 million in senior secured convertible notes (the “Notes”) and also granted to Starboard an option (the “Notes Option”) to acquire up to an additional $50.0 million in senior secured convertible notes (the “Option Notes”).  The Notes, and the Option Notes, if issued, are convertible, at the optionaggregate of Starboard, into85,708,361 shares of Common Stock at a conversion pricethe election of $31.29 per share.  If Starboard were to fully exercise their Notes Option, up to 6,391,819the holders. Furthermore, we have reserved 5,457,026 shares of Common Stock would be issuable upon conversion of the Notes and the Option Notes.  Interest on the Notes, and the Option Notes, iffor issuance pursuant to our Series A Warrants. We have also issued is payable, at our option, in cash or through the issuance of additional8,066,876 shares of Common Stock (the “PIK Interest Shares”).  Any PIK Interest Shares so issued would be valued at the arithmetic average of the volume-weighted average trading prices of our Common Stock on each trading day during the ten consecutive trading days ending immediately preceding the applicable interest payment date.  Pursuantfor distribution to the agreements,selling stockholders of Shareablee (which we also agreedacquired in December 2021), and we may elect to grant Starboard warrantspay any deferred consideration due to purchase 250,000the Shareablee sellers in 2023 and 2024 in shares of Common Stock.
In addition, we have the right to conduct a rights offering (the “Rights Offering”) for up to $150.0 million in senior secured convertible notes (the “Rights Offering Notes”).  The Rights Offering Notes would be substantially similar to the Notes, except with respect to, among other things, the conversion price thereof, which would be equal to 130% of the closing price of our Common Stock on the last trading day immediately prior to the commencement of the Rights Offering (subject to a conversion price floor of $28.00 per share).  If we were to issue $150.0 million in Rights Offering Notes, and assuming such notes were convertible into shares of Common Stock at a conversion price of $28.00 per share, up to 5,357,143 shares of Common Stock would be issuable upon conversion of the Rights Offering Notes.  Interest on the Rights Offering Notes would also be payable, at our option, in cash or through the issuance of PIK Interest Shares.
As of December 31, 2017 and based on the closing price of our Common Stock on March 15, 2018, $26.29 per share, up to 3,453,785 shares of Common Stock were reserved or contemplated for issuance pursuant to or in connection with the settlements of certain litigation matters, 4,310,4142022, 2,283,987 shares of Common Stock were reserved for issuance pursuant to outstanding stock options under our equity incentive plans (including stock option awards we assumed in the Shareablee acquisition), 4,644,619 shares of Common Stock were reserved for issuance pursuant to outstanding restricted stock unit awards under our equity incentive plans and programs,arrangements (including assumed Shareablee awards and 1,633,146an employment inducement award we granted in 2021), 5,693,104 shares of Common Stock were otherwise contemplatedavailable for issuance asfuture equity incentive or similar awards.awards under our 2018 Equity and Incentive Compensation Plan, and 176,435 shares of Common Stock were available for future equity awards under our acquired Shareablee plan.
The issuance of shares of Common Stock (i) upon the conversion of the Notes, the Option Notes (if issued) or the Rights Offering Notes (if issued),our Preferred Stock, (ii) as payment-in-kind of interest on any such notes through the issuance of PIK Interest Shares, (iii) upon the exercise of warrants, (iii) as deferred consideration to the Shareablee sellers, (iv) in connection with settlement of litigation, (iv) in connection with our pendingpursuant to outstanding and contemplatedfuture equity awards, or (v) upon the conversion of other existing or future convertible securities, may result in substantial dilution to each of our stockholders by reducing that stockholder’sstockholder's percentage ownership of our outstanding Common Stock.

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Provisions in our certificate of incorporation, bylaws and under Delaware law might discourage, delay or prevent a change of control of our company or changes in our management and, therefore, depress the trading price of our Common Stock.
Our certificate of incorporation and bylaws contain provisions that could depress the trading price of our Common Stock by acting to discourage, delay or prevent a change of control of our company or changes in our management that the stockholders of our company may deem advantageous.
These provisions:
provide for a classified board of directors so that not all members of our Boardboard are elected at one time;
authorize “blank check”"blank check" preferred stock that our Boardboard could issue to increase the number of outstanding shares to discourage a takeover attempt;
prohibit stockholder action by written consent, which means that all stockholder actions must be taken at a meeting of our stockholders;
prohibit stockholders from calling a special meeting of our stockholders;
provide that the Boardour board is expressly authorized to make, alter or repeal our bylaws; and
provide for advance notice requirements for nominations for elections to our Boardboard or for proposing matters that can be acted upon by stockholders at stockholder meetings.
In addition, we are subject to Section 203 of the Delaware General Corporation Law, which prohibits a Delaware corporation from engaging in any of a broad range of business combinations with any “interested”"interested" stockholder for a period of three years following the date on which the stockholder became an “interested”"interested" stockholder and which may discourage, delay or prevent a change of control of our company.
Shareholder activists could cause a disruption to our business.
We may be subject, from time to time, to legal and business challenges in the operation of our company due to actions instituted by activist shareholders or others, such as shareholder proposals, media campaigns, proxy contests and other such actions. Responding to proxy contests or such other actions could be costly and time-consuming, disrupt our operations and divert the attention of our Board and senior management from the pursuit of business strategies, which could adversely affect our results of operations and financial condition. Additionally, perceived uncertainties as to our future direction as a result of shareholder activism or potential changes to the composition of our Board may lead to the perception of a change in the direction of the business, loss of potential business opportunities, instability or lack of continuity. This may be exploited by our competitors, cause concern to our current or potential customers, and make it more difficult to attract and retain qualified personnel. In addition, actions of activist shareholders may cause significant fluctuations in our stock price based on temporary or speculative market perceptions or other factors that do not necessarily reflect the underlying fundamentals and prospects of our business.

ITEM 1B.UNRESOLVED STAFF COMMENTS
None.

ITEM 2.PROPERTIES
Our corporate headquarters and executive offices are located in Reston, Virginia, where we occupy approximately 111,00084,000 square feet of office space under leases that initially expire in 2022, although we have an option to extend until 2032, subject to certain conditions.space. We also lease space in various locations throughout North America, South America, Europe, and Asia Pacific for sales and other personnel. If we require additional space, we believe that we would be able to obtain such space on commercially reasonable terms.
Our other significantmaterial locations, all of which are leased under operating leases, include the following:
Portland, Oregon
New York, New York
Chicago, Illinois
Seattle, Washington
San Francisco, California
London, England

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Portland, Oregon
As of December 31, 2017,2022, we haveleased facilities in 26 locations worldwide, including approximately 293,00048,000 square feet leasedof subleased space in 47 locations worldwide.six properties. Currently, however, most of our employees are operating under remote or hybrid working arrangements.
For additional information regarding our obligations under operating and finance leases, refer to Footnote 119, Commitments and ContingenciesLeases of the Notes to Consolidated Financial Statements.


ITEM 3.LEGAL PROCEEDINGS
We are involved in variousFor a discussion of material legal proceedings, from timeplease refer to time.  We establish reserves for specific legal proceedings when management determines that the likelihood of an unfavorable outcome is probableFootnote 12, Commitments and the amount of loss can be reasonably estimated. Management has also identified certain other legal matters where an unfavorable outcome is reasonably possible and/or for which no estimate of possible losses can be made. In these cases, we do not establish a reserve until we can reasonably estimate the loss. The outcomes of legal proceedings are inherently unpredictable, subject to significant uncertainties, and could be material to our operating results and cash flows for a particular period.  
Rentrak Merger Litigation
In October 2015, four class action complaints were filed in the Multnomah County Circuit Court in Oregon in connection with our merger with Rentrak, which became a wholly-owned subsidiaryContingencies of the Company on January 29, 2016. On November 23, 2015, these four actions were consolidated as In re Rentrak Corporation Shareholders Litigation, with us, Rentrak and certain former directors and officers of Rentrak named as defendants. On July 21, 2016, the lead plaintiff filed a second amended class action complaint, which alleged that Rentrak and its former officers and directors breached their fiduciary dutiesNotes to Rentrak stockholders by, among other things, failing to disclose all material facts necessary for a fully informed stockholder vote on the merger. The complaint also alleged that we aided and abetted these alleged breaches of fiduciary duties. The complaint sought equitable reliefConsolidated Financial Statements included in the form of a rescission of the merger, rescissionary damages, attorneys’ fees and costs. On February 6, 2017, a separate action, John Hulme v. William P. Livek et al., was also filed in the Multnomah County Circuit Court in Oregon, alleging materially similar claims and seeking the same relief as that of In re Rentrak. On March 24, 2017, the court dismissed the lead plaintiff’s aiding-and-abetting claim against us, and allowed the lead plaintiff to replead the claim. The court also dismissed the lead plaintiff’s claim seeking rescission of the merger.
On April 17, 2017, the parties in all cases reached an agreement in principle, settling all claims in the above-referenced matters. The defendants or their insurers agreed to pay the plaintiff class $19.0 million, of which amount we would contribute $1.7 million, or approximately 9%, and the remainder will be funded by our insurers. On May 24, 2017, the court signed an order granting preliminary approval of the parties' stipulation of settlement. Our contribution of $1.7 million was paid on July 18, 2017. A fairness hearing for final approval of the settlement took place on September 12, 2017, and the court granted final approval of the settlement and entered the final approval order that day. The relevant time periods for any appeal have lapsed and the settlement is final.
Derivative Litigation
The Consolidated Virginia Derivative Action. In May 2016 and July 2016, two purported shareholder derivative actions, Terry Murphy v. Serge Matta et al. and Ron Levy v. Serge Matta et al., were filed in the Circuit Court of Fairfax County, Virginia against us as a nominal defendant and against certain of our current and former directors and officers. The complaints alleged that the defendants intentionally or recklessly made materially false or misleading statements regarding the Company and asserted claims of breach of fiduciary duty, unjust enrichment, abuse of control, gross mismanagement and waste of corporate assets against the defendants. The complaints sought declarations that the plaintiffs can maintain the action on behalf of the Company, declarations that the individual defendants have breached fiduciary duties or aided and abetted such breaches, awards to us for damages sustained, purported corporate governance reforms, awards to us of restitution from the individual defendants and reasonable attorneys’ and experts’ fees. On FebruaryPart II, Item 8 2017, the Levy plaintiff filed a motion for leave to file an amended complaint, attaching a proposed amended complaint (the “Proposed Amended Complaint”) alleging claims substantially similar to those alleged in the original complaint. On April 7, 2017, the Murphy and Levy parties filed a consent order consolidating the Murphy and Levy actions and designating the Proposed Amended Complaint as the operative complaint in the action if the court grants the motion for leave to file an amended complaint. The court entered the consent order on April 13, 2017 and granted the motion for leave to amend the complaint on May 19, 2017, designating the Proposed Amended Complaint as the operative complaint in the consolidated action.

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The Assad Action. On April 14, 2017, another purported shareholder derivative action, George Assad v. Gian Fulgoni et al., was filed in the Circuit Court of Fairfax County, Virginia against us as a nominal defendant and against the same current and former directors and officers of the Company as the Murphy and Levy actions, as well as certain additional individuals. The Assad complaint alleges claims for breach of fiduciary duty, waste of corporate assets, and unjust enrichment, as well as a claim seeking to compel our Board to hold an annual stockholders’ meeting. In addition to an order compelling the Board to hold an annual stockholders’ meeting, the Assad complaint seeks judgment against the defendants in the amount by which we were allegedly damaged, an order directing defendants to provide operations reports and financial statements for all previous quarters allegedly identified by the Audit Committee as inaccurate, purported corporate governance reforms, the restriction of proceeds of defendants’ trading activities pending judgment, an award of restitution from the defendants, and an award of attorneys’ fees and costs. On May 25, 2017, the Assad plaintiff moved to vacate or modify the consent order in the consolidated Murphy and Levy actions insofar as that order appointed lead counsel and to allow for submission of briefs regarding the appointment of lead counsel. Lead counsel in the consolidated case responded to this motion on June 2, 2017. The court has not taken action on these motions. From June to August 2017, the parties filed, and the court entered, several agreed orders extending the time for parties who had been served to respond to the Assad complaint. On August 4, 2017, we moved for an order of consolidation of the Assad action into the consolidated Virginia action. The motion has not been brought for a hearing due to the pendency of the proposed derivative litigation settlement.
The Consolidated Federal Derivative Action. In December 2016 and February 2017, two purported shareholder derivative actions, Wayne County Employees’ Retirement System v. Fulgoni et al. and Michael C. Donatello v. Gian Fulgoni et al., were filed in the District Court for the Southern District of New York against us and certain of our current and former directors and officers. The complaints alleged, among other things, that the defendants provided materially false and misleading information regarding the Company, its business and financial performance. The Donatello complaint also alleged that the defendants breached their fiduciary duties, failed to maintain internal controls and were unjustly enriched to the detriment of the Company. The complaints sought awards of monetary damages, purported corporate governance reforms, the award of punitive damages, and attorneys’, accountants’ and experts’ fees and other relief. On March 3, 2017, the court granted a stay pending consideration of the parties’ stipulation to consolidate the Wayne County and Donatello actions. On April 25, 2017, the court signed and entered the parties’ stipulation to consolidate the two actions and lead plaintiffs filed a consolidated amended complaint on May 25, 2017. On June 20, 2017 and August 25, 2017, the court entered the parties’ stipulations and proposed orders temporarily staying the case and extending the time for us and all defendants to respond to the complaint. Following the proposed settlement discussions noted below, the court entered the parties’ stipulation and proposed order further staying proceedings pending application for preliminary approval of settlement on September 21, 2017.
Proposed Derivative Litigation Settlement. On September 10, 2017 we, along with all derivative plaintiffs and named individual defendants, reached a proposed settlement, subject to court approval, to resolve all of the above shareholder derivative actions on behalf of the Company. Under the terms of the proposed settlement, we would receive a $10.0 million cash payment, funded by our insurer. Pursuant to this proposed settlement, we have agreed, subject to court approval, to contribute $8.0 million in comScore Common Stock toward the payment of attorneys’ fees. We have also agreed as part of the proposed settlement to adopt certain corporate governance and compliance terms that were negotiated by derivative plaintiffs’ counsel and the Company. On January 31, 2018, the parties entered into a Stipulation of Settlement and the plaintiffs filed a motion for preliminary approval of the settlement on February 2, 2018. The Court held a hearing on the plaintiffs' motion for preliminary approval on February 14, 2018, indicated that it would grant preliminary approval with minor modifications to the proposed notice of settlement and scheduled a hearing to determine whether to finally approve settlement on June 7, 2018. On February 23, 2018, the Court entered an order preliminarily approving the proposed settlement. As of December 31, 2017, we reserved $8.0 million in accrued litigation settlements, and recorded $10.0 million in insurance recoverable on litigation settlements for the insurance proceeds expected from our insurers. For the year ended 2017, $2.0 million was recorded as a reduction to investigation and audit related expenses on our Consolidated Statements of Operations and Comprehensive Loss.
Oregon Section 11 Litigation
In October 2016, a class action complaint, Ira S. Nathan v. Serge Matta et al., was filed in the Multnomah County Circuit Court in Oregon against certain of our current and former directors and officers and Ernst & Young LLP ("EY"). The complaint alleged that the defendants provided untrue statements of material fact in our registration statement on Form S-4 filed with the SEC and declared effective on December 23, 2015. The complaint sought a determination of the propriety of the class, a finding that the defendants are liable and an award of attorneys’ and experts’ fees. On March 17, 2017, a separate action, John Hulme v. Serge Matta et al., was filed in the Multnomah County Circuit Court in Oregon alleging materially similar claims as the Nathan complaint against the same defendants. On April 18, 2017, the Nathan and Hulme cases were consolidated by order of the court. On April 24, 2017, all defendants filed motions to dismiss. After the motion was fully briefed and after a hearing, the Court denied all motions to dismiss on August 4, 2017. The parties are currently engaged in discovery, and on September 25, 2017, the Hulme plaintiff moved to certify the class. We filed our opposition to the Hulme plaintiff’s motion to certify the class on November 9, 2017. The Court held a hearing on the motion on December 5, 2017, and at that hearing, the Court deferred ruling on the motion

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until February 14, 2018 pending the proposed settlement in the Fresno County Employees’ Retirement Association case (“Fresno County”, described below). On February 14, 2018, following a hearing, the Court granted class certification only as to EY and deferred ruling on class certification as to all other defendants, pending the final approval hearing in Fresno County scheduled for June 7, 2018. The outcome of this matter is unknown but management does not believe a material loss was probable or estimable as of December 31, 2017 or 2016.
Federal Securities Class Action Litigation
Also in October 2016, a consolidated class action complaint, Fresno County Employees’ Retirement Association et al. v. comScore, Inc. et al., was filed in the District Court for the Southern District of New York against us, certain of our current and former directors and officers, Rentrak and certain former directors and officers of Rentrak. On January 13, 2017, the lead plaintiffs filed a second consolidated amended class action complaint, which alleged that the defendants provided materially false and misleading information regarding the Company and its financial performance, including in our and Rentrak’s joint proxy statement/prospectus, and failed to disclose material facts necessary in order to make the statements made not misleading. The complaint sought a determination of the propriety of the class, compensatory damages and the award of reasonable costs and expenses incurred in the action, including attorneys’ and experts’ fees. We and the individual defendants filed motions to dismiss, the court held oral argument on those motions on July 14, 2017, however, on July 28, 2017, the court denied those motions. On September 10, 2017, the parties reached a proposed settlement, subject to court approval, pursuant to the terms of which the settlement class will receive a total of $27.2 million in cash and $82.8 million in Common Stock to be issued and contributed by comScore to a settlement fund to resolve all claims asserted against us. All of the $27.2 million in cash would be funded by our insurers. We have the option to fund all or a portion of the $82.8 million with cash in lieu of Common Stock. The proposed settlement further provides that comScore denies all claims of wrongdoing or liability. On December 28, 2017, the parties entered into a Stipulation and Agreement of Settlement to be filed in the United States District Court for the Southern District of New York. The plaintiffs filed a motion for preliminary approval of the settlement on January 12, 2018. On January 29, 2018, the Court held a hearing regarding the plaintiffs' motion for preliminary approval and entered an order granting preliminary approval of the settlement that same day. The settlement remains subject to final approval by the Court, and to that end, the Court has scheduled a hearing to determine whether to finally approve the settlement on June 7, 2018. As of December 31, 2017, we have reserved $110.0 million in accrued litigation settlements for the gross settlement amount, and recorded $27.2 million in insurance recoverable on litigation settlements for the insurance proceeds expected from our insurers. For the year ended 2017, $82.8 million is recorded as settlement of litigation, net, on our Consolidated Statements of Operations and Comprehensive Loss.
Delaware General Corporation Law Section 211 Litigation
On July 25, 2017, Starboard Value and Opportunity Master Fund Ltd., a comScore shareholder, filed a verified complaint in the Delaware Court of Chancery pursuant to Delaware General Corporation Law Section 211(c), alleging that we had not held an annual meeting of stockholders for the election of directors since July 21, 2015 and seeking an order compelling us to hold an annual meeting. The plaintiff also moved for an order expediting proceedings. The court granted the order to expedite shortly thereafter, and the parties agreed to a trial date of September 14, 2017. The parties exchanged discovery on an expedited basis and filed pretrial briefs on September 7, 2017. On September 13, 2017, the parties agreed to continue the trial date to September 29, 2017. On September 28, 2017, we entered into an agreement with Starboard Value LP and certain of its affiliates (collectively, “Starboard”), which beneficially owned approximately 4.8% of our outstanding Common Stock as of that date, regarding, among other things, the membership and composition of the Board. Starboard also agreed to dismiss its litigation against us. On September 29, 2017, the parties canceled the trial and on October 2, 2017, the parties filed a joint stipulation dismissing the case with prejudice.
Privacy Demand Letters
On September 11, 2017, we and a wholly-owned subsidiary, Full Circle Studies, Inc., (“Full Circle”) received demand letters on behalf of named plaintiffs and all others similarly situated alleging that we and Full Circle collected personal information from users under the age of 13 without verifiable parental consent in violation of Massachusetts General Laws chapter 93A and the federal Children’s Online Privacy Protection Act (“COPPA”), 15 U.S.C. §§ 6501-06. The letters alleged that we and Full Circle collected such personal information by embedding advertising software development kits ("SDKs") in applications created or developed by Disney. The letters sought monetary damages, attorneys’ fees and damages under Massachusetts law. We and Full Circle responded to the demand letters on October 11, 2017. The responses advised that, after investigating the allegations, we and Full Circle do not believe the threatened claims have any legal merit or factual support. No lawsuit has been filed. If a lawsuit is filed, we and Full Circle intend to vigorously defend ourselves.

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Nielsen Arbitration/Litigation
On September 22, 2017, Nielsen Holdings PLC (“Nielsen”) filed for arbitration against comScore alleging that comScore breached the parties’ agreement regarding an alleged unauthorized use of Nielsen’s data to compete directly against Nielsen’s linear television services.  comScore denied the allegations, and the matter is pending. On September 22 and 25, 2017, Nielsen also filed a civil complaint against comScore in the United States District Court for the Southern District of New York before Judge Vernon Broderick seeking preliminary injunctive relief against any unauthorized use of Nielsen’s data.  On October 11, 2017, we responded and objected to the request for a preliminary injunction.  On March 6, 2018, Judge Broderick denied Nielsen's motion for preliminary injunction and stayed the case pending completion of arbitration. We are vigorously defending ourselves in these matters.
SEC Investigation
The United States Securities and Exchange Commission (“SEC”) is investigating allegations regarding revenue recognition, internal controls, non-GAAP disclosures and whistleblower retaliation. The SEC has made no decisions regarding these matters including whether any securities laws have been violated. We are cooperating fully with the SEC.
Export Controls Review
We have recently become aware of possible violations of U.S. export controls and economic sanctions laws and regulations involving the Company. The circumstances giving rise to these possible violations pertain to the Company’s collection of survey data from panelists within U.S. embargoed countries, as a part of the Company’s larger global survey efforts not intentionally targeted at such countries. The Company has filed a joint initial notice of voluntary disclosure with the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) and the U.S. Commerce Department’s Bureau of Industry and Security (“BIS”) and commenced an internal review to identify the causes and scope of transactions that could constitute violations of the OFAC and BIS regulations. We have notified OFAC and BIS of the ongoing internal review,10-K, which is being conducted with the assistance of the Company’s outside counsel. If any violations are confirmed as part of our review, we could be subject to fines or penalties. Although the ultimate outcome of this matter is unknown, we believe that a material loss was not probable or estimable as of December 31, 2017 or 2016.incorporated herein by reference.
Other Matters
In addition to the matters described above, we are, and may become, a party to a variety of legal proceedings from time to time that arise in the normal course of our business. While the results of such legal proceedings cannot be predicted with certainty, management believes that, based on current knowledge, the final outcome of any such current pending matters will not have a material adverse effect on our financial position, results of operations or cash flows. Regardless of the outcome, legal proceedings can have an adverse effect on us because of defense costs, diversion of management resources and other factors.
Indemnification
We have entered into indemnification agreements with each of our directors and certain officers, and our amended and restated certificate of incorporation requires us to indemnify each of our officers and directors, to the fullest extent permitted by Delaware law, who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding by reason of the fact that he or she is or was a director or officer of the Company. We have paid and continue to pay legal counsel fees incurred by the present and former directors and officers who are involved in legal proceedings that require indemnification.
Similarly, certain of our commercial contracts require us to indemnify contract counterparties under specified circumstances, and we may incur legal counsel fees and other costs in connection with these obligations.
ITEM 4.MINE SAFETY DISCLOSURES
Not applicable.

28
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PART II

ITEM 5.MARKET FOR REGISTRANT’SREGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
PRICE RANGE OF COMMON STOCKMARKET INFORMATION
As a result of our delay in filing our periodic reports with the SEC, we were unable to comply with the listing standards of Nasdaq and ourOur Common Stock was suspended from tradingtrades on The Nasdaq Global Select Market on February 8, 2017 and delisted effective May 30, 2017. Following the suspension of trading, our Common Stock has been trading on the OTC Pink Tier under the symbol “SCOR.” The following table sets forth, for the periods indicated, the high and low sales prices and bid quotations of our Common Stock as reported by The Nasdaq Global Select Market and the OTC Pink Tier, as applicable. The OTC Pink Tier quotations reflect inter-dealer prices, without retail mark-up, mark down or commission and may not represent actual transactions.
  2017 2016 2015
Fiscal Period High Low High Low High Low
First Quarter $33.99 $20.81 $43.53 $26.21 $55.40 $39.89
Second Quarter $27.25 $21.60 $33.69 $21.74 $58.22 $44.40
Third Quarter $30.40 $26.00 $33.02 $23.65 $65.00 $41.37
Fourth Quarter $31.00 $27.25 $34.85 $26.99 $51.37 $36.91
On March 15, 2018, the last reported bid price of our Common Stock on the OTC Pink Tier was $26.29 per share."SCOR".
HOLDERS
As of February 28, 2018,24, 2023, there were 101132 stockholders of record of our Common Stock, although we believe that there may beare a significantly larger number of beneficial owners of our Common Stock. We derived the number of stockholders by reviewing the listing of outstanding Common Stock recorded by our transfer agent as of February 28, 2018.24, 2023.
STOCK PERFORMANCE GRAPH
The following graph compares the cumulative total stockholder return on our Common Stock between December 31, 20122017 and December 31, 20172022 to the cumulative total returns of the Nasdaq Composite Index, the S&P MidCap 400 Index and the Nasdaq Computer Index over the same period. This graph assumes the investment of $100 at the closing price of the markets on December 31, 20122017 in our Common Stock, the Nasdaq Composite Index, the S&P MidCap 400 Index and the Nasdaq Computer Index, and assumes the reinvestment of dividends, if any. We have never paid cash dividends on our Common Stock and have no present plans to do so.
comScore was added to the S&P MidCap 400 Index on February 1, 2016. Due to the delisting of our Common Stock from The Nasdaq Global Select Market, comScore was removed from the S&P MidCap 400 Index on February 10, 2017.
The comparisons shown in the following graph are based upon historical data. We caution that the stock price performance shown in the graph below is not necessarily indicative of, nor is it intended to forecast, the potential future performance of our Common Stock.

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COMPARISON OF CUMULATIVE TOTAL RETURN*
among comScore, Inc.,
The Nasdaq Composite Index, The Nasdaq Computer Index and The S&P MidCap 400 Index
and The Nasdaq Computer Indexscor-20221231_g1.jpg

 
_________________
*$100 invested upon market close of The Nasdaq Global Select Market on December 31, 2012,2017, including reinvestment of dividends.
The preceding Stock Performance Graph is not deemed filed with the SEC and shall not be incorporated by reference in any of our filings under the Securities Act of 1933, as amended, or the Exchange Act, as amended, (the "Exchange Act") whether made before or after the date hereof and irrespective of any general incorporation language in any such securities filing.filing, except to the extent that we specifically incorporate it by reference.
DIVIDEND POLICY
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Since our inception, we have not declared or paid any cash dividends. We do not anticipate paying any cash dividends in the foreseeable future. Under the terms of the Notes we issued and sold to Starboard, we must satisfy certain qualifying conditions or obtain the consent of the holders of at least a majority of the aggregate principal amount of Notes then outstanding before we may declare or pay any dividends, subject to certain exceptions. 
SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS
The information required by this item regardingrelating to our equity compensation plans required by Item 5 is incorporated by reference to such information as set forth in Part III, Item 12, Security"Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters of this 10-K.Matters."
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
Unregistered SalesInformation required by Item 701 of Equity Securities during the Years Ended December 31, 2017, 2016 and the Three Months Ended December 31, 2015
As a result ofRegulation S-K was previously included in our inability to file our periodic reports with the SEC during our investigation, review and audit, we have been unable to use our registration statementQuarterly Report on Form S-8 to make equity grants to our directors or employees since February 2016. In addition, we have not made any equity awards to directors or employees, including executive officers, since February 2016 other than those outlined below.
The following summarizes (1) a settlement of a previously issued restricted stock unit ("RSU") award and (2) an equity award approved by the Compensation Committee of the Board10-Q filed on the dates listed below during the year ended December 31, 2016, under a private placement exemption to executive officers qualifying as accredited investors:
(1)issuance of 3,300 shares of restricted Common Stock in consideration for vested RSUs to Melvin Wesley, the former Chief Financial Officer of the Company, on October 10, 2016, in connection with his termination of employment with the Company; and
(2)an award of 35,000 RSUs to David Chemerow, the Company's former Chief Financial Officer, on August 5, 2016, in connection with his appointment to the position of Chief Financial Officer, which is subject to continued vesting under his separation agreement with the Company.
These securities were issued pursuant to an exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended.
Refer to Footnote 20, Subsequent Events of the Notes to Consolidated Financial Statements, for additional information related to the unregistered sale of equity securities after December 31, 2017.

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Use of Proceeds from Sale of Registered Equity Securities
None.August 9, 2022.
PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS
Since our last 10-Q filing for the three and nine months ended September 30, 2015, we repurchased shares of our Common Stock in connection with the following:
(i)The payment of minimum statutory withholding taxes due upon the vesting of certain restricted stock and RSU awards, which shares were repurchased at the then current fair market value of the shares;
(ii)The repurchase right afforded to us upon the cessation of employment of certain of our employees; and
(iii)As part of a publicly announced plan or program.
(i) The shares we repurchased in connection with the payment of minimum statutory withholding taxes due upon the vesting of certain restricted stock and RSU awards were repurchased at the then current fair market value of the shares and consisted of the following:None.
  
Total Number of
Shares Purchased
 
Average Price
Paid Per Share
2015    
Total - Three Months Ended March 31, 2015 430,778
 $50.28
Total - Three Months Ended June 30, 2015 46,511
 $56.53
Total - Three Months Ended September 30, 2015 48,226
 $57.87
October 1 - October 31, 2015 
 $
November 1 - November 30, 2015 18,854
 $54.81
December 1 - December 31, 2015 1,042
 $43.38
Total - Three Months Ended December 31, 2015 19,896
 $54.21
Total - Twelve Months Ended December 31, 2015 545,411
 $51.63
2016 (1)
    
January 1 - January 31, 2016 
 $
February 1 - February 29, 2016 190,312
 $41.79
March 1 - March 31, 2016 82,366
 $32.18
Total - Three Months Ended March 31, 2016 272,678
 $38.89
October 1 - October 31, 2016 5,420
 $29.65
November 1 - November 30, 2016 
 $
December 1 - December 31, 2016 1,203
 $29.16
Total - Three Months Ended December 31, 2016 6,623
 $29.56
Total - Twelve Months Ended December 31, 2016 279,301
 $38.67
2017 (1)
   
January 1 - January 31, 2017 
 $
February 1 - February 28, 2017 
 $
March 1 - March 31, 2017 59,707
 $21.14
Total - Three Months Ended March 31, 2017 59,707
 $21.14
Three Months Ended June 30, 2017 
 
July 1 - July 31, 2017 
 $
August 1 - August 31, 2017 9,597
 $26.20
September 1 - September 30, 2017 
 $
Three Months Ended September 30, 2017 9,597
 $26.20
Three Months Ended December 31, 2017 
 
Total - Twelve Months Ended December 31, 2017 69,304
 $21.84
(1) Table includes only those quarters during the years ended 2017 and 2016 with activity.

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(ii) The shares we repurchased, at no cost to us, in connection with the repurchase right afforded to us upon the cessation of employment of certain of our employees consisted of the following:
ITEM 6.
Total Number of
Shares Purchased
Average Price
Paid Per Share
2015 (1)
Total - Three Months Ended March 31, 20151,650
$
Total - Three Months Ended June 30, 20158,113
$
Total - Three Months Ended September 30, 2015500
$
Total - Twelve Months Ended December 31, 201510,263
$
2016 (1)
January 1 - January 31, 2016
$
February 1 - February 29, 2016
$
March 1 - March 31, 20161,750
$
Total - Three Months Ended March 31, 20161,750
$
Total - Twelve Months Ended December 31, 20161,750
$
2017 (1)
[RESERVED]
(1) Table includes only those quarters during the years ended 2017, 2016 and 2015 with activity.
(iii) As part of our share repurchase programs, shares were purchased in open market transactions or pursuant to trading plans that were adopted in accordance with Rule 10b5-1 of the Exchange Act. The timing, manner, price and amount of any repurchases could be determined at our discretion, and the share repurchase program could be suspended, terminated or modified at any time for any reason. Shares repurchased were classified as treasury stock. Details of the share repurchases during the periods noted below under our share repurchase programs were as follows:
30
(In millions, except share and per share data) Total Number of
Shares Purchased
 Average Price
Paid Per Share
 
Value of Shares Repurchased (1)
2015 (2)
      
Total - Three Months Ended March 31, 2015 (3)
 80,661
 $46.56
 $3.8
Total - Three Months Ended June 30, 2015 (3)(4)
 1,045,140
 $53.78
 $56.2
Total - Three Months Ended September 30, 2015 (4)
 823,779
 $55.78
 $45.9
Total - Twelve Months Ended December 31, 2015 1,949,580
 $54.33
 $105.9
2016 (2)
      
January 1 - January 31, 2016 
 $
  
February 1 - February 29, 2016 222,763
 40.42
  
March 1 - March 31, 2016 452,909
 40.34
  
Total - Three Months Ended March 31, 2016 (5)
 675,672
 $40.39
 $27.3
Total - Twelve Months Ended December 31, 2016 675,672
 $40.39
 $27.3
2017 (2)
      
(1) Total value of shares repurchased, as measured at the time of repurchase.
(2) Table includes only those quarters during the years ended 2017, 2016 and 2015 with activity.
(3) June 2014 Share Repurchase Program - On June 6, 2014, we announced that the Board had approved the repurchase of up to $50 million of Common Stock. This repurchase program concluded on May 5, 2015 and resulted in the repurchase of $6.0 million of shares of Common Stock during the year ended 2015 (as measured at the time of repurchase).
(4) May 2015 Share Repurchase Program - On May 5, 2015, we announced that the Board had approved the repurchase of up to $150 million of our Common Stock which commenced on May 6, 2015. Such repurchases were made at various times subject to pre-determined price and volume guidelines established by the Board. Through December 31, 2015, this program resulted in the repurchase of $99.9 million of shares of Common Stock (as measured at the time of repurchase). The program was suspended in September 2015 pending the closing of the Rentrak merger.
(5) February 2016 Share Repurchase Program - On February 17, 2016, the Company announced that the Board had approved the adoption of a new share repurchase program, superseding prior programs, for $125.0 million of Common Stock commencing at the end of February 2016. Through December 31, 2016, this program resulted in the repurchase of $27.3 million of shares of Common Stock (as measured at the time of repurchase). On March 5, 2016, the Board suspended the share repurchase program indefinitely, with such suspension to be re-evaluated following the completion of the Audit Committee’s investigation and the Company regaining compliance with its SEC reporting requirements. At the time of suspension, $97.7 million remained available for the repurchase of Common Stock under the February 2016 Share Repurchase Program.



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ITEM 6.SELECTED FINANCIAL DATA
The selected condensed Consolidated Statement of Operations data and condensed consolidated balance sheet data displayed below is derived from our audited Consolidated Financial Statements for the three-year period ended December 31, 2017. As described below, the selected financial data as of and for the years ended December 31, 2014 (As Restated) and 2013 (As Restated) are unaudited, have been derived from our unaudited Consolidated Financial Statements, which were prepared on the same basis as our audited Consolidated Financial Statements, and reflect the impact of adjustments to, or restatement of, our previously furnished or filed financial information, including a January 1, 2013 cumulative effect adjustment to Stockholders’ Equity for the impact of accounting errors that impacted periods prior to January 1, 2013. The selected financial data set forth below is not necessarily indicative of results of future operations, and should be read in conjunction with Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations" and the Consolidated Financial Statements and related Notes thereto included in this 10-K under the caption Item 8, "Financial Statements and Supplementary Data."

  Years Ended December 31,
(In thousands, except share and per share data) 2017 2016 
2015 (1)
 
2014
(As Restated) (Unaudited)
 
2013
(As Restated) (Unaudited)
Condensed Consolidated Statement
of Operations Data:
        
Revenues $403,549
 $399,460
 $270,803
 $304,275
 $282,602
Total expenses from operations 699,052
 531,302
 345,898
 327,750
 281,612
(Loss) income from operations (295,503) (131,842) (75,095) (23,475) 990
Non-operating income (expenses), net 11,393
 10,662
 (2,643) (504) (1,019)
Income tax benefit (provision) 2,717
 4,007
 (484) (4,794) (22,745)
Net loss $(281,393) $(117,173) $(78,222) $(28,773) $(22,774)
Net loss per common share:          
Basic and diluted $(4.90) $(2.10) $(2.07) $(0.85) $(0.66)
Weighted-average number of shares used in per share calculations - Common Stock:      
Basic and diluted 57,485,755
 55,728,090
 37,879,091
 33,689,660
 34,443,126
(1) The financial data for the year ended December 31, 2015 is adjusted from our unaudited financial information for the year ended December 31, 2015 previously included as an exhibit to our Current Report on Form 8-K furnished on February 17, 2016. Our audited Consolidated Financial Statements for the year ended December 31, 2015, were not previously issued or filed.

  December 31,
(In thousands) 2017 2016 
2015 (1)
(Unaudited)
 
2014
(As Restated) (Unaudited)
 
2013
(As Restated) (Unaudited)
Condensed Consolidated Balance Sheet Data:          
Cash, cash equivalents, restricted cash and marketable securities $45,125
 $116,753
 $146,986
 $43,015
 $67,795
Total current assets 179,554
 232,433
 247,263
 148,245
 163,379
Total assets 1,022,439
 1,120,792
 446,196
 315,344
 344,041
Capital lease obligations and software license arrangements, current and long-term (2)
 13,162
 28,578
 32,299
 26,428
 24,044
Total liabilities 365,947
 215,939
 184,018
 182,612
 165,867
Stockholders’ equity 656,492
 904,853
 262,178
 132,732
 178,174
(1) The financial data as of December 31, 2015 is adjusted from our unaudited financial information for the year ended December 31, 2015 previously included as an exhibit to our Current Report on Form 8-K furnished on February 17, 2016. Our audited Consolidated Financial Statements for the year ended December 31, 2015, were not previously issued or filed.
(2) Amounts shown for December 31, 2017 and 2016 include software license obligations in the amount of $4.8 million and $7.7 million, respectively. Amounts shown for 2015, 2014 and 2013 include capital lease obligations only. The Company had no other outstanding debt obligations in each of the five years ended December 31, 2017. However, the Company entered into a new financing arrangement in January 2018, refer to Footnote 20, Subsequent Events, for additional details.

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Background of Audit Committee Investigation and Subsequent Management Review
As discussed in the Explanatory Note, in February 2016, the Audit Committee of the Board commenced an internal investigation, with the assistance of outside advisors, into matters related to the Company's revenue recognition practices, disclosures, internal controls, corporate culture, and certain employment practices. As a result of the issues identified in the Audit Committee's investigation and management's subsequent review, on September 12, 2016, the Company announced that the Audit Committee, in consultation with outside advisors and management, had concluded that the Company could no longer support the prior accounting for non-monetary contracts recorded by the Company during 2013, 2014 and 2015. As a result, we concluded that (i) our previously issued, unaudited quarterly and year-to-date Consolidated Financial Statements for the quarters ended March 31, June 30 and September 30, 2015 filed on Quarterly Reports on Form 10-Q on May 5, August 7, and November 6, 2015, respectively, (ii) our previously issued, audited Consolidated Financial Statements for the years ended December 31, 2014 and 2013 filed on Annual Reports on Form 10-K on February 20, 2015 and February 18, 2014, respectively (including the interim periods within those years) and (iii) our preliminary unaudited Condensed Consolidated Financial Statements for the quarter and year ended December 31, 2015 included as an exhibit to our Current Report on Form 8-K furnished on February 17, 2016, should no longer be relied upon.
On November 23, 2016, the Company, in a Current Report on Form 8-K, reported that the Audit Committee's investigation was complete and had concluded that, as a result of certain instances of misconduct and errors in accounting determinations, adjustments to the Company's accounting, for certain non-monetary and monetary transactions were required. As a result of the Audit Committee's conclusions and observations, we began a process of reviewing substantially all of our accounting policies, significant accounting transactions, related party transactions, and other financial, internal control and disclosure matters. In addition to the above-referenced adjustments related to revenue and expenses associated with non-monetary transactions, we also concluded that the accounting treatment for certain monetary transactions, certain business and asset acquisitions, our deferred tax assets and other accounting matters required adjustments. This review also identified various material weaknesses in internal control, including in our entity level controls and in certain accounting practices. For further information regarding our evaluation of our control environment, our material weaknesses and our remediation initiatives, refer to Item 9A, "Controls and Procedures" in this Annual Report on Form 10-K.
The following tables summarize the effects of the adjustments on our previously provided unaudited financial information for the year ended December 31, 2015 that were included as an exhibit to our Current Report on Form 8-K furnished on February 17, 2016.

  Year Ended December 31, 2015
(In thousands, except share and per share information) 
As Previously Reported
(Unaudited) (1)
 Adjustments Total Adjustments As Adjusted
  ABCDE  
Revenues $368,817
 $(57,537)$(28,964)$(11,513)$
$
 $(98,014) $270,803
Total expenses from operations 371,467
 (5,098)(20,815)(2,419)2,763

 (25,569) 345,898
Loss from operations (2,650) (52,439)(8,149)(9,094)(2,763)
 (72,445) (75,095)
Non-operating (expenses) income, net (2,367) 555

(586)(245)
 (276) (2,643)
Income tax (provision) benefit (1,745) 



1,261
 1,261
 (484)
Net loss $(6,762) $(51,884)$(8,149)$(9,680)$(3,008)$1,261
 $(71,460) $(78,222)
             
Net (loss) income per common share:        
Basic and diluted $(0.18) $(1.37)$(0.22)$(0.26)$(0.08)$0.03
 $(1.89) $(2.07)
Weighted-average number of shares used in per share calculations - Common Stock:        
Basic and diluted 37,879,091
       
 37,879,091
(1) The financial data as of December 31, 2015 is derived from our unaudited financial information for the year ended December 31, 2015 previously included as an exhibit to our Current Report on Form 8-K furnished on February 17, 2016. Our audited Consolidated Financial Statements for the year ended December 31, 2015, were not previously issued or filed.


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  December 31, 2015
  
As Previously Reported
(Unaudited)(1)
 Adjustments Total Adjustments 
As Adjusted
(Unaudited)
(In thousands)  ABCDE  
Cash, cash equivalents, restricted cash and marketable securities $146,986
 $
$
$
$
$
 $
 $146,986
Total current assets 272,095
 (5,227)(10,560)(8,146)(782)(117) (24,832) 247,263
Total assets 563,242
 (68,725)(10,560)(8,146)(1,633)(27,982) (117,046) 446,196
Capital lease obligations, current and long-term 33,039
 


(740)
 (740) 32,299
Total liabilities 169,365
 

10,114
1,648
2,891
 14,653
 184,018
Stockholders’ equity 393,877
 (68,725)(10,560)(18,260)(3,281)(30,873) (131,699) 262,178
(1) The financial data as of December 31, 2015 is derived from our unaudited financial information for the year ended December 31, 2015 previously included as an exhibit to our Current Report on Form 8-K furnished on February 17, 2016. Our audited Consolidated Financial Statements for the year ended December 31, 2015, were not previously issued or filed.

The following tables summarize the effects of the restatement adjustments on our previously issued, audited Consolidated Financial Statements for the years ended December 31, 2014 and 2013 filed on Annual Reports on Form 10-K.

  Year Ended December 31, 2014
(In thousands, except share and per share information) As Previously Reported Restatement Adjustments Total Restatement Adjustments 
As Restated
(Unaudited)
  ABCDE  
Revenues $329,151
 $
$(16,251)$(8,625)$
$
 $(24,876) $304,275
Total expenses from operations 343,931
 
(16,263)(628)710

 (16,181) 327,750
Loss from operations (14,780) 
12
(7,997)(710)
 (8,695) (23,475)
Non-operating (expenses) income, net (438) 

119
(185)
 (66) (504)
Income tax benefit (provision) 5,315
 



(10,109) (10,109) (4,794)
Net (loss) income $(9,903) $
$12
$(7,878)$(895)$(10,109) $(18,870) $(28,773)
             
Net loss per common share:        
Basic and diluted $(0.29) $
$
$(0.23)$(0.03)$(0.30) $(0.56) $(0.85)
Weighted-average number of shares used in per share calculations - Common Stock:        
Basic and diluted 33,689,660
       
 33,689,660

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  December 31, 2014
(In thousands) As Previously Reported Restatement Adjustments Total Restatement Adjustments 
As Restated
(Unaudited)
  ABCDE  
Cash, cash equivalents, restricted cash and marketable securities $43,015
 $
$
$
$
$
 $
 $43,015
Total current assets 178,883
 
(2,411)(6,748)(382)(21,097) (30,638) 148,245
Total assets 353,952
 
(2,411)(6,748)(160)(29,289) (38,608) 315,344
Capital lease obligations, current and long-term 26,425
 


3

 3
 26,428
Total liabilities 178,687
 

1,850
134
1,941
 3,925
 182,612
Stockholders’ equity 175,265
 
(2,411)(8,598)(294)(31,230) (42,533) 132,732


  Year Ended December 31, 2013
(In thousands, except share and per share information) As Previously Reported Restatement Adjustments Total Restatement Adjustments 
As Restated
(Unaudited)
  ABCDE  
Revenues $286,860
 $
$(3,245)$(1,013)$
$
 $(4,258) $282,602
Total expenses from operations 283,767
 
(1,796)(228)(131)
 (2,155) 281,612
Income (loss) from operations 3,093
 
(1,449)(785)131

 (2,103) 990
Non-operating expenses, net (1,000) 

(17)(2)
 (19) (1,019)
Income tax provision (4,426) 



(18,319) (18,319) (22,745)
Net (loss) income $(2,333) $
$(1,449)$(802)$129
$(18,319) $(20,441) $(22,774)
             
Net loss per common share:        
Basic and diluted $(0.07) $
$(0.04)$(0.02)$
$(0.53) $(0.59) $(0.66)
Weighted-average number of shares used in per share calculations - Common Stock:        
Basic and diluted 34,443,126
       
 34,443,126

  December 31, 2013
(in thousands) As Previously Reported Restatement Adjustments Total Restatement Adjustments 
As Restated
(Unaudited)
  ABCDE  
Cash, cash equivalents, restricted cash and marketable securities $67,795
 $
$
$
$
$
 $
 $67,795
Total current assets 178,799
 
(2,423)(1,372)(823)(10,802) (15,420) 163,379
Total assets 363,413
 
(2,423)(1,372)371
(15,948) (19,372) 344,041
Capital lease obligations, current and long-term 23,681
 


363

 363
 24,044
Total liabilities 164,611
 

(735)(224)2,215
 1,256
 165,867
Stockholders’ equity 198,802
 
(2,423)(637)595
(18,163) (20,628) 178,174

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The components of the cumulative effect of the restatement adjustments that we made, as of January 1, 2013, to the opening balance of accumulated deficit in our Consolidated Statements of Stockholders' Equity are also detailed in the table below.
  
Cumulative Effect Adjustment on January 1, 2013 Stockholders' Equity (1)
(in thousands) As Previously Reported Restatement Adjustments Total Restatement Adjustments 
As Restated
(Unaudited)
  ABCDE  
Stockholders’ equity $195,643
 $
$(974)$159
$464
$157
 $(194) $195,449
(1) Certain errors impacted years prior to 2013 and as such these errors are aggregated to adjust the January 1, 2013 opening balance of Stockholders’ Equity.

The following is a discussion of the significant adjustments that were made to our previously provided Consolidated Financial Statements for the years ended December 31, 2015, 2014 and 2013.
(A) WPP Capital Transactions and GroupM Arrangement: WPP Capital Transactions As described in Footnote 3, Business Combinations and Acquisitions of the Notes to Consolidated Financial Statements, during the first quarter of 2015, we entered into several agreements with WPP, that ultimately resulted in, among other things, WPP becoming a related party, as described below (collectively, the "WPP Capital Transactions").

We agreed to acquire all of the outstanding common stock of WPP's Nordic Internet Audience Measurement ("IAM") business in Norway, Sweden and Finland in exchange for shares of our Common Stock.
We entered into a Strategic Alliance Agreement ("Strategic Alliance") in which we and WPP agreed to collaborate on the cross-media audience and campaign measurement (“CMAM”) business for certain areas outside the U.S. for an initial ten-year term. Under the terms of the Strategic Alliance, the parties agreed to jointly develop and market CMAM, leveraging our digital assets and the television assets and global footprint of WPP.
WPP agreed to conduct a tender offer for shares of our Common Stock from existing stockholders at an offered price of $46.13 per share.
If the shares issued and the shares WPP acquired in the tender offer represented less than 15% of our then outstanding Common Stock, the Company agreed to sell to WPP, at a price of $46.13 per share, such newly issued shares that would cause WPP’s aggregate holdings to equal 15% of our then outstanding Common Stock.

On April 1, 2015:
We closed the acquisition of the IAM business and the Strategic Alliance and issued 1,605,330 shares of our Common Stock from treasury, which represented 4.45% of our then outstanding Common Stock; and
We sold to WPP 4,438,353 newly issued shares of Common Stock for an aggregate purchase price of $204.7 million. After this issuance and including shares acquired by WPP via the tender offer, WPP held 15% of our then outstanding shares of Common Stock.
The closing Common Stock share price was $51.42, resulting in a total market value of shares of Common Stock held by WPP of $310.8 million.
As a result of the investigation and the subsequent process of reviewing our accounting for significant transactions, we have re-evaluated the underlying projections supporting the intangible asset associated with the Strategic Alliance. The projections and valuation at the time of the transaction resulted in a fair value of $97.6 million. Following the investigation and our accounting review, we have modified the assumptions, projections and valuations related to the Strategic Alliance intangible asset. As a result, we and our independent valuation consultants determined the fair value of the Strategic Alliance asset to be $30.1 million. As part of this adjustment, we reduced by $5.1 million the amount of amortization expense of intangible assets that we previously incurred for the year ended 2015.
GroupM Arrangement
At approximately the same time that we closed the WPP Capital Transactions, we also entered into an agreement with GroupM, a WPP affiliate (the "GroupM Arrangement"), in which GroupM agreed to a minimum commitment of $20.9 million ("Subscription Receivable"). We have determined that the negotiation and execution of this agreement happened concurrently with the WPP Capital Transactions and that these transactions should have been considered, for accounting purposes, as contemporaneous. Accordingly, $9.3 million of revenue originally recognized in 2015 for this GroupM agreement was reversed and the present value of the Subscription Receivable, $(19.2) million, was classified as contra equity within additional paid-in capital on our Consolidated Statements of Stockholders' Equity. We reversed the accounts receivable balance associated with the transaction and have no longer characterized it as a revenue arrangement, and no future revenue will be recognized. As cash is received on the contract, the Subscription Receivable is decreased by the amount of cash received, and results in an increase to additional paid-in capital. We expect to collect the remaining Subscription Receivable in 2018. We recognized interest income related to this receivable during the years ended 2017, 2016 and 2015 of $0.3 million, $0.6 million and $0.6 million, respectively.

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Overall Impact of WPP Capital Transactions and GroupM Arrangement
The total consideration related to the WPP Capital Transactions and GroupM Arrangement was less than the market value of our Common Stock issued by us. This difference is characterized as vendor consideration and is accounted for as a reduction of revenue upon the closing of the WPP Capital Transactions. Previous revenue transactions and future revenue transactions with WPP and its affiliates are expected to exceed the vendor consideration in this transaction. A summary of the components of the transactions are as follows:
(In millions)  
Fair value of assets received:  
Cash $204.7
Strategic Alliance asset 30.1
IAM business 8.5
Total assets received 243.3
   
Increase to stockholders' equity for the WPP Capital Transactions  
Market value of Common Stock issued to WPP on issuance date (April 1, 2015) 310.8
Subscription Receivable (19.2)
Total increase to stockholders' equity 291.6
Vendor consideration provided to WPP (reduction in revenue) $(48.3)



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The following table summarizes the effects of the adjustments to the December 31, 2015 Consolidated Balance Sheet associated with the WPP Capital Transactions and GroupM Arrangement.
  WPP Capital Transactions Adjustment 
GroupM
Arrangement Adjustment
 Total Adjustments
(in thousands)      
Total assets:      
Accounts receivable $
 $(5,227) $(5,227)
Current assets 
 (5,227) (5,227)
       
Intangible assets, net (63,382) 
 (63,382)
Goodwill (116) 
 (116)
Total assets $(63,498) $(5,227) $(68,725)
       
Stockholders' equity:      
Common stock 
 
 
Additional paid-in capital (20,260) 3,502
 (16,758)
Accumulated deficit (43,155) (8,729) (51,884)
Accumulated other comprehensive loss (83) 
 (83)
Total Stockholders' equity $(63,498) $(5,227) $(68,725)
The following table summarizes the effects of the adjustments to the December 31, 2015 Consolidated Statements of Operations associated with the WPP Capital Transactions and GroupM Arrangement.
  WPP Capital Transactions Adjustment 
GroupM
Arrangement Adjustment
 Total Adjustments
(in thousands)      
Revenues $(48,253) $(9,284) $(57,537)
Total expenses from operation:      
General and administrative 42
 
 42
Amortization of intangible assets (5,140) 
 (5,140)
Total expenses from operations (5,098) 
 (5,098)
Income (loss) from operations (43,155) (9,284) (52,439)
Non-operating expenses, net:     
Interest income, net 
 555
 555
Income tax provision (1)
 
 
 
Net loss $(43,155) $(8,729) $(51,884)
(1) The tax effect of the adjustments associated with WPP Capital Transactions and GroupM Arrangement were not separately identified. The tax effect of all adjustments is encapsulated in Footnote (E) Tax Adjustments.


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(B) Non-monetary revenue contracts: Our non-monetary transactions are exchanges of data products between us and certain customers. Under Accounting Standards Codification 845, Non-Monetary Transactions ("ASC 845"), a non-monetary exchange of goods can be recorded at fair value if fair value is determinable, the exchanged goods given and received would not be held for sale in the same line of the business and the exchange has commercial substance. Based on the Audit Committee’s investigation and management’s review of its accounting, we have concluded that the original accounting for all of our non-monetary transactions did not meet the applicable guidance in ASC 845. This adjustment reverses the revenue and associated expense related to these non-monetary transactions. For the non-monetary revenue contracts, since there is no historical cost basis associated with the assets exchanged, there is no revenue recognized or expense incurred for these transactions. While a non-monetary transaction inherently has no effect on operating income or cash flow over the life of the relevant agreement governing such transaction, the timing of revenue recognized relative to the related expense recognized may have an effect on net income on a period-by-period basis.
(C) Monetary revenueadjustments: There were adjustments to revenue and costs for the investigation-related contracts (contracts that were specifically subject to the Audit Committee's investigation) as well as additional contracts that the Company deemed had similar characteristics as the investigation-related contracts. Both groups of contracts had historical data deliverables where there was not a clear indication that the customer needed or requested the historical data and the contracts were multiple-element arrangements requiring a best estimate of selling price ("BESP") determination. When these contracts were re-evaluated, the historical data components were re-valued for BESP purposes, generally resulting in a substantially reduced or zero value for the historical data. In addition, the investigation-related contracts had additional arrangements, including offsetting purchase contracts that were not previously disclosed. These additional arrangements resulted in revenue either being deferred until the arrangement was considered fixed and determinable, or, in some cases, purchases and sales of data with the same customer were accounted for as a single arrangement, resulting in revenue being netted against expenses under purchase contracts. Also included are other revenue accounting adjustments that are the result of a number of miscellaneous errors related to our prior revenue accounting processes being ineffective in properly accounting for contracts, errors in revenue recognition, or in the consistent application of our revenue accounting policies.
(D) Other adjustments: There were certain other non-revenue related adjustments that were primarily timing adjustments for expense accruals and recording accounts for amounts not previously provided for.
(E) Tax adjustments: As a result of the material changes to our Consolidated Financial Statements, we re-evaluated the valuation allowance determinations made in prior years. Our analysis was updated to consider the changes to our historical operating results following the investigation and subsequent review by management. In that process, we evaluated the weight of all evidence, including the decline in earnings, and we concluded that as of December 31, 2013 our U.S. federal and state net deferred tax assets were no longer more-likely-than-not to be realized and that a valuation allowance was required. As a result, we established a $19.7. million valuation allowance against our net deferred tax assets as of December 31, 2013. For the years ended 2014 and 2015, the primary tax adjustments to the Consolidated Balance Sheets are related to establishing an additional valuation allowance as a result of increases in our net deferred tax assets. We also adjusted income taxes, as necessary, to reflect the tax effect of the adjustments made to operating results for the years ended 2015, 2014 and 2013, respectively.
During the year ended December 31, 2015, we applied Accounting Standards Update ("ASU") No. 2015-17 retrospectively to all deferred tax assets and liabilities for all periods presented. We have reclassified current deferred tax assets and liabilities to non-current deferred tax assets and liabilities for all prior year periods presented. As a result, the reclassification of current deferred tax assets and liabilities to non-current deferred tax assets and liabilities, respectively, is reflected as part of the tax adjustments.


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ITEM 7.  MANAGEMENT’S MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our Consolidated Financial Statements and the related Notes to Consolidated Financial Statements included elsewhere in Part II, Item 8 of this Annual Report on Form 10-K, or 10-K. In addition to historical financial information, the following discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. Our actual results and timing of selected events in future periods may differ materially from those anticipated or implied in these forward-looking statements as a result of many factors, including those discussed under Item 1A, “Risk Factors”"Risk Factors," and elsewhere in this 10-K. See also "Cautionary Note Regarding Forward-Looking Statements" at the beginning of this 10-K.
Background of Audit Committee Investigation and Subsequent Management Review
As discussed in the Explanatory Note, in February 2016, the Audit Committee ("Audit Committee") of the comScore Board of Directors ("Board") commenced an internal investigation, with the assistance of outside advisors, into matters related to the Company's revenue recognition practices, disclosures, internal controls, corporate culture and certain employment practices. As a result of the issues identified in the Audit Committee's investigation and management's subsequent review, on September 12, 2016, the Company announced that the Audit Committee, in consultation with outside advisors and management, had concluded that the Company could no longer support the prior accounting for non-monetary contracts recorded by the Company during 2013, 2014 and 2015. As a result, we concluded that (i) our previously issued, unaudited quarterly and year-to-date Consolidated Financial Statements for the quarters ended March 31, June 30 and September 30, 2015 filed on Quarterly Reports on Form 10-Q on May 5, August 7, and November 6, 2015, respectively, (ii) our previously issued, audited Consolidated Financial Statements for the years ended December 31, 2014 and 2013 filed on Annual Reports on Form 10-K on February 20, 2015 and February 18, 2014, respectively (including the interim periods within those years) and (iii) our preliminary unaudited Condensed Consolidated Financial Statements for the quarter and year ended December 31, 2015 included as an exhibit to our Current Report on Form 8-K furnished on February 17, 2016, should no longer be relied upon.
On November 23, 2016, the Company, in a Current Report on Form 8-K, reported that the Audit Committee's investigation was complete and had concluded that, as a result of certain instances of misconduct and errors in accounting determinations, adjustments to the Company's accounting for certain non-monetary and monetary transactions were required. As a result of the Audit Committee's conclusions and observations, we began a process of reviewing substantially all of our accounting policies, significant accounting transactions, related party transactions, and other financial, internal control and disclosure matters. In addition to the above-referenced adjustments related to revenue and expenses associated with non-monetary transactions, we also concluded that the accounting treatment for certain monetary transactions, certain business and asset acquisitions, our deferred tax assets and other accounting matters required adjustments. This review also identified various material weaknesses in internal control, including in our entity level controls and in certain accounting practices, all as described under Item 9A, "Controls and Procedures" in this Annual Report on Form 10-K. For further information regarding the specific adjustments resulting from the investigation and subsequent management review, refer to Item 6, "Selected Financial Data" in this 10-K and Footnote 1, Organization, of the Notes to Consolidated Financial Statements for information regarding the applicable adjustments and restatement of our stockholders' equity as of January 1, 2015.
Nasdaq Delisting of our Common Stock
As a result of the delay in filing our periodic reports with the SEC, we were unable to comply with the listing standards of the Nasdaq Stock Market ("Nasdaq") and our common stock ("Common Stock") was suspended from trading on the Nasdaq Global Select Market effective February 8, 2017 and formally delisted effective May 30, 2017. Following the suspension of trading, our Common Stock has been traded on the OTC Pink Tier under the symbol “SCOR”. For further information regarding trading in our Common Stock, refer to Item 5, “Market for Registrant’s Common Equity, Related Stockholder Matters and Price Range of Common Stock” in this 10-K.
Overview
We are a global information and analytics company that measures advertising, content, and the consumer audiences and advertisingof each, across media platforms. We create our products using a global data platform that combines information about content and advertising consumption on digital (smartphones,platforms (connected (Smart) televisions, mobile devices, tablets and computers), televisionTV, direct to consumer applications and movie screens with demographics and other descriptive information. We have developed proprietary data science that enables measurement of person-level and household-level audiences, removing duplicated viewing across devices and over time. This combination of data and methods enables a common standard for buyers and sellers to transact on advertising. This helps companies across the media ecosystem better understand and monetize their broad range of audiences and develop marketing plans and products to more efficiently and effectively reach those audiences. Our ability to unify behavioral and other descriptive data enables us to provide accredited audience ratings, advertising verification, and granular consumer segments that describe hundreds of millions of

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consumers. Our customers include buyers and sellers of advertising including digital publishers, television networks, movie studios, content owners, brand advertisers, agencies and technology providers.
The platforms we measure include television sets, smartphones,televisions, mobile devices, computers, tablets, over-the-top ("OTT")CTV devices and movie theaters, and thetheaters. The information we analyze crosses geographies, types of content and activities, including websites, mobile and OTT apps, video games, television and movie programming, e-commerce, and advertising.
Results of Operations
The following table sets forth selected Consolidated Statements of Operations and Comprehensive Loss data as a percentage of total revenues for each of the periods indicated. Percentages may not add due to rounding.
 Years Ended December 31,
 202220212020
(In thousands)Dollars% of RevenueDollars% of RevenueDollars% of Revenue
Revenues$376,423 100.0 %$367,013 100.0 %$356,036 100.0 %
Cost of revenues205,294 54.5 %203,044 55.3 %180,712 50.8 %
Selling and marketing68,453 18.2 %66,937 18.2 %70,220 19.7 %
Research and development36,987 9.8 %39,123 10.7 %38,706 10.9 %
General and administrative61,200 16.3 %61,736 16.8 %55,783 15.7 %
Amortization of intangible assets27,096 7.2 %25,038 6.8 %27,219 7.6 %
Impairment of goodwill46,300 12.3 %— — %— — %
Restructuring5,810 1.5 %— — %— — %
Impairment of right-of-use and long-lived assets156 — %— — %4,671 1.3 %
Total expenses from operations451,296 119.9 %395,878 107.9 %377,311 106.0 %
Loss from operations(74,873)(19.9)%(28,865)(7.9)%(21,275)(6.0)%
Loss on extinguishment of debt— — %(9,629)(2.6)%— — %
Interest expense, net(915)(0.2)%(7,801)(2.1)%(35,805)(10.1)%
Other income (expense), net9,785 2.6 %(5,778)(1.6)%14,554 4.1 %
Gain (loss) from foreign currency transactions1,166 0.3 %2,895 0.8 %(4,490)(1.3)%
Loss before income taxes(64,837)(17.2)%(49,178)(13.4)%(47,016)(13.2)%
Income tax provision(1,724)(0.5)%(859)(0.2)%(902)(0.3)%
Net loss$(66,561)(17.7)%$(50,037)(13.6)%$(47,918)(13.5)%
  Years Ended December 31,
  2017 2016 2015
(In thousands) Dollars % of Revenue Dollars % of Revenue Dollars % of Revenue
Revenues $403,549
 100.0% $399,460
 100.0% $270,803
 100.0%
Cost of revenues 193,605
 48.0% 173,080
 43.3% 111,904
 41.3%
Selling and marketing 130,509
 32.3% 126,311
 31.6% 96,344
 35.6%
Research and development 89,023
 22.1% 86,975
 21.8% 52,718
 19.5%
General and administrative 74,651
 18.5% 97,517
 24.4% 72,493
 26.8%
Investigation and audit related 83,398
 20.7% 46,617
 11.7% 
 —%
Amortization of intangible assets 34,823
 8.6% 31,896
 8.0% 8,608
 3.2%
(Gain) loss on asset dispositions 
 —% (33,457) (8.4)% 4,671
 1.7%
Settlement of litigation, net 82,533
 20.5% 2,363
 0.6% (840) (0.3)%
Restructuring 10,510
 2.6% 
 —% 
 —%
Total expenses from operations 699,052
 173.2% 531,302
 133.0% 345,898
 127.7%
Loss from operations (295,503) (73.2)% (131,842) (33.0)% (75,095) (27.7)%
Interest expense, net (661) (0.2)% (478) (0.1)% (1,321) (0.5)%
Other income, net 15,205
 3.8% 12,371
 3.1% 9
 —%
Loss from foreign currency transactions (3,151) (0.8)% (1,231) (0.3)% (1,331) (0.5)%
Loss before income tax provision (284,110) (70.4)% (121,180) (30.3)% (77,738) (28.7)%
Income tax benefit (provision) 2,717
 0.7% 4,007
 1.0% (484) (0.2)%
Net loss $(281,393) (69.7)% $(117,173) (29.3)% $(78,222) (28.9)%
Significant changes in our results of operations are more fully described below.
Revenues
Our products and services are organized around solution groups that address customer needs. Accordingly, we evaluate revenues around two solution groups:
Digital Ad Solutions provide measurement planningof the behavior and optimization in four offerings:
Digital Audience: focused on the size, engagement, and other behavioral and qualitative characteristics of audiences around the world, across multiple digital platforms, including computers, tablets, smartphonesmobile and other connected devices.
TV and Cross-Platform: focused on consumer viewership of both linear and on-demand television content in the U.S. at both the national level and in local markets. Provides a view of cross-platform consumer behavior when integrated with our Digital Audience and Advertising products and services.
Advertising: provides This solution group also includes custom offerings that provide end-to-end solutions for planning, optimization and evaluation of advertising campaigns.campaigns and brand protection across digital platforms, including transactional outcome-based measurement driven by our Activation and CCR products.
Movies: measures
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Cross Platform Solutions provide measurement of content and advertising audiences across local, national and addressable television, including consumption through connected (Smart) televisions, and are designed to help customers find the most relevant viewing audience whether that viewing is linear, non-linear, online or on-demand. This solution group also includes custom offerings that provide end-to-end solutions for planning, optimization and evaluation of advertising campaigns across platforms. In addition, this solution group includes products that measure movie viewership captures audience demographics and sentiment via social mediabox office results by capturing movie ticket sales in real time or near real time and exit pollingincludes box office analytics, trend analysis and provides software tools toinsights for movie studios and movie theater customers around the world.  operators worldwide.
We categorize our revenue along these four offerings;solution groups; however, our shared cost structure is defined and tracked by functionat the corporate level and not by our product offerings.solution groups. These shared costs include, but are not limited to, employee costs, purchased data, operational overhead, data centersstorage and our technology that supports multiple product offerings.


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solution groups.
Revenues from these four offerings of productsfor the years ended December 31, 2022 and services2021 are as follows:
 Years Ended December 31,
(In thousands)2017 2016 2015
Digital Audience$222,783
 $237,593
 $231,108
TV and Cross-Platform96,982
 79,875
 2,735
Advertising45,081
 48,030
 55,277
Movies38,703
 32,662
 
DAx (1)

 1,300
 29,534
CSWS (2)

 
 402
Total revenues$403,549
 $399,460
 $319,056
Vendor consideration (3)

 
 (48,253)
Total revenues$403,549
 $399,460
 $270,803
(1) On January 21, 2016, the sale of our Digital Analytix business ("DAx") was completed, and this revenue has been excluded from our four product and service offerings.
(2) On May 11, 2015, the sale of CSWS, our mobile operator analytics business, was completed, and this revenue has been excluded from our four product and service offerings.
(3) For additional information concerning vendor consideration reduction to revenue for 2015, refer to Footnote 3, Business Combinations.

Total revenues for the years ended 2017 and 2016 are as follows:
 Years Ended December 31,
(In thousands)2017 2016 $ Variance % Variance
Digital Audience$222,783
 $237,593
 $(14,810) (6.2)%
TV and Cross-Platform96,982
 79,875
 17,107
 21.4%
Advertising45,081
 48,030
 (2,949) (6.1)%
Movies38,703
 32,662
 6,041
 18.5%
DAx (1)

 1,300
 (1,300) (100.0)%
Total revenues$403,549
 $399,460
 $4,089
 1.0%
(1) On January 21, 2016, the sale of DAx was completed, and this revenue has been excluded from our four product and service offerings.
 Year Ended December 31,
(In thousands)2022% of Revenue2021% of Revenue$ Variance% Variance
Digital Ad Solutions$212,510 56.5 %$221,979 60.5 %$(9,469)(4.3)%
Cross Platform Solutions163,913 43.5 %145,034 39.5 %18,879 13.0 %
Total revenues$376,423 100.0 %$367,013 100.0 %$9,410 2.6 %
Total revenues increased by $4.1$9.4 million, or 1.0%2.6%, for the year ended 2017December 31, 2022 as compared to 2016. During 2017, increased2021.
Digital Ad Solutions revenue in TV and Cross-Platform and Movies were offset by decreased revenue in Digital Audience and Advertising. On January 29, 2016, we completed a merger with Rentrak Corporation (“Rentrak”), andprimarily due to lower usage of our Activation product as well as a result,decline in our revenues for 2017 includedsyndicated digital products and custom digital deliveries. Additionally, we recognized $2.4 million in license revenue under a full yearmulti-year contract in 2021 (related to delivery of Rentrak revenue versus 11 monthsour digital measurement products in 2016, which was slightly offset by the inclusion of one month of DAx revenueEurope) that did not recur in 2016.
The increase2022. We believe that macroeconomic factors (including inflation, rising interest rates and supply chain disruptions) caused a reduction or delay in TV and Cross-Platform revenue related to increasedadvertising expenditures in 2022, impacting demand for our national and local TV station offerings. These products continue to experience solid growth from both the acquisition of new customers and the expansion of agreements with existing customers. Movies revenue increased as our global footprint remained strong and our products continued to result in higher contract values. As we collect data from nearly all box office locations worldwide, our customers continue to expand and renew agreements which we expect will continue into 2018.
The decrease in Digital Audience revenue related to both changes in our products and an evolving advertising market. Our investment to strengthen our products by adding mobile data sources resulted in disrupting some data trends, which impacted customers. As a result, some customers ceased purchases and others delayed renewals. In addition, changes in industry-wide ad buying weakened smaller publishers and as such, some of our small customers did not renew. As a result, while our largest customers continued to purchase these products, our overall customer base shrunk during 2017. While wecertain digital products. We expect this trend to continue into 2023.
Cross Platform Solutions revenue increased primarily due to some extent into 2018,higher TV revenues from new partnerships, higher contract values from renewals and increased agency adoption. In addition, we expectrecognized $4.1 million more revenue decreasesrelated to be smaller since losses in our customer base are slowing.
Advertising revenue in 2017 saw growth in our emerging products, which was offset by lower sales in some legacy offerings. We expect higher revenue from Advertising in 2018 as we continuecost reimbursements of cloud computing and processing costs attributable to place more emphasis on growing certain product groups while we expect legacy product revenues will remain flat.


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Total revenue for the years ended 2016 and 2015 are as follows:
 Years Ended December 31,
(In thousands)2016 2015 
$ Variance
 % Variance
Digital Audience$237,593
 $231,108
 $6,485
 2.8%
TV and Cross-Platform79,875
 2,735
 77,140
 2,820.5%
Advertising48,030
 55,277
 (7,247) (13.1)%
Movies32,662
 
 32,662
 N/A
DAx (1)
1,300
 29,534
 (28,234) (95.6)%
CSWS (2)

 402
 (402) (100.0)%
 $399,460
 $319,056
 $80,404
 25.2%
Vendor consideration provided to WPP
 (48,253) 48,253
 (100.0)%
Total revenues$399,460
 $270,803
 $128,657
 47.5%
(1) On January 21, 2016, the sale of DAx was completed, and this revenue has been excluded from our four product and service offerings.
(2) On May 11, 2015, the sale of CSWS, our mobile operator analytics business, was completed, and this revenue has been excluded from our four product and service offerings.
(3) For additional information concerning vendor consideration reduction to revenue for 2015, refer to Footnote 3, Business Combinations.

Total revenues increased by $128.7 million, or 47.5%, for 2016 ascustom TV data set deliveries during 2022 compared to 2015. The increase in revenue, excluding the reduction of the vendor consideration, was primarily related to our merger with Rentrak, as Rentrak revenue was included for eleven months of 2016. The increase was partially offset by our divestiture of DAx in January 2016. Absent these transactions, revenue was flat as increased Digital Audience revenue was offset by decreased revenue in Advertising.
Digital Audience2021. Our movies revenue increased due to the continued acceptancereturn of our productsconsumers to theaters in markets worldwide.
Revenues for the years ended December 31, 2021 and 2020 are as follows:
 Year Ended December 31,
(In thousands)2021% of Revenue2020% of Revenue$ Variance% Variance
Digital Ad Solutions$221,979 60.5 %$213,504 60.0 %$8,475 4.0 %
Cross Platform Solutions145,034 39.5 %142,532 40.0 %2,502 1.8 %
Total revenues$367,013 100.0 %$356,036 100.0 %$10,977 3.1 %
Total revenues increased by $11.0 million, or 3.1%, for the industry standard. Our well diversified customersyear ended December 31, 2021 as compared to 2020.
Digital Ad Solutions revenue increased primarily due to double-digit year-over-year growth related to Activation as we continued to purchasebring new solutions to market. Additionally, revenue in 2021 included $2.4 million in license revenue recognized under the multi-year contract described above. This increase was partially offset by lower revenue from our syndicated digital products. Syndicated digital revenue was lower primarily due to our smaller customers who continued to be impacted by ongoing industry changes in ad buying and renewconsolidations.
Cross Platform Solutions revenue increased primarily due to higher revenue from our products onTV products. TV revenue was higher primarily due to new partnerships, increased agency adoption and higher deliveries of custom TV data. This increase was partially offset by a recurring basis.
Advertising revenue decreased in 2016 as some of our new and emerging products were in the early stage of development and industry acceptance and as such, generated only small amounts of revenue. However, the focus on these newer products resulted in lower salesdecrease in our legacy products,movies business primarily driven by lower revenues during the first quarter of 2021, which were also subject to a more competitive landscape.reflected the full impact of the COVID-19 pandemic and its effect on theater closures, movie releases and consumer behavior worldwide.
The addition of Rentrak in 2016 added revenue in both TV and Cross-Platform and Movies. During 2016, our Cross-Platform products were beginning to be integrated with the national and local TV products of Rentrak. The legacy Rentrak products continued to see strong growth both from the acquisition of new customers and the expansion of agreements with existing customers. We did not have any Movies products prior to the Rentrak merger. Movies revenue continued the growth seen by Rentrak prior to the merger, as our global footprint remained strong and our products continued to result in higher contract values.
RevenueRevenues by Geographic Location
We attribute revenues to customers based on the locationRevenue from outside of the customer. The composition of our sales to customers among those in the United States was $38.6 million, $45.1 million and those in other locations$45.3 million for the years ended 2017, 2016December 31, 2022, 2021, and 2015 were2020, respectively. Non-U.S. revenue declined in 2022 primarily due to the $2.4 million in license fee revenue recognized in Europe under a multi-year contract in 2021 that did not recur in 2022, as follows:well as a decline in revenue from our syndicated digital products.
 Years Ended December 31,
(In thousands)

2017 2016 2015
United States$332,344
 $316,755
 $220,172
Europe43,218
 54,289
 63,071
Latin America13,460
 12,470
 14,904
Canada9,273
 10,206
 13,673
Other5,254
 5,740
 7,236
 $403,549
 $399,460
 $319,056
Vendor consideration provided to WPP(1)

 
 (48,253)
Total revenues$403,549
 $399,460
 $270,803
As a percentage of total revenues:     
United States82.4% 79.3% 69.0%
International17.6% 20.7% 31.0%
(1) For additional information concerning vendor consideration reduction to revenue for 2015, refer to Footnote 3, Business Combinations.


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We generate the majority of our revenues from the sale and delivery of our products to companies and organizations located within the U.S. FollowingUnited States. For information with respect to sales by geographic markets, refer to Footnote 4, Revenue Recognition, of the merger with Rentrak in 2016, we significantly increasedNotes to Consolidated Financial Statements. Our chief operating decision maker (our CEO) does not evaluate the percentage of our revenue generated in the U.S., as Rentrak historically generated approximately 95% of its total revenues in the U.S. In addition, the DAx business, sold in January 2016, was highly concentrated in Europe. profit or loss from any separate geography.
We anticipate that revenues from our U.S. customerssales will continue to constitute a substantial and increasing portion of our revenues in future periods. We expect our non-U.S. revenues to continue to decline as a percentage of our total revenues as a result of relative growth in our domestic product offerings.
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WPP Related Party Revenue
As of December 31, 2017, WPP owned approximately 19.7% of our then outstanding Common Stock. We provide WPP plc ("WPP") and its affiliates, in the normal course of business, services relating to our different product lines and receive various services from WPP and its affiliates in supporting our data collection efforts. For the years ended 2017, 2016December 31, 2022, 2021, and 2015, the2020, related party revenues with WPP and its affiliates were $13.2$11.7 million, $9.7$13.6 million and $(41.4)$13.3 million, respectively. Included in related party revenues is the vendor consideration provided to WPP. We reduced revenue by the amount of the vendor consideration WPP received as part of the WPP Capital Transactions and GroupM Arrangement. Because WPP and its affiliates became a related party following the April 2015 transactions, only the transactions with WPP and its affiliates for the period April 1, 2015 through December 31, 2015 are included in related party revenue for the year ended 2015.
Operating Expenses
The majority of our operating expenses consist of employee costs including salaries, benefits, and related personnel costs (including stock-based compensation), professional fees, data costs, expenses related to operating our network infrastructure, producing our products, and the recruitment, maintenance and support of our consumer panels, rent and other facility related costs, depreciation expense, amortization and litigation-related expenses. Our single largest operating expense relates to our people, and a significant portion of our short-term incentive compensation and long-term incentive compensation have been provided through equity-based instruments. In January 2016, we merged with Rentrak and as such, operating expenses for 2016 reflect eleven months of combined activity. 2016 operating expenses for Rentrak were accumulated in total for 2016 for comparison to 2015, but were reclassified to their respective expense categorization for comparison to 2017.  
Total expenses from operations for the years ended 2017 and 2016 are as follows:
 Years Ended December 31,  
(In thousands)2017 % of Revenue 2016 % of Revenue $ Variance % Variance
Cost of revenues$193,605
 48.0% $173,080
 43.3% $20,525
 11.9%
Selling and marketing130,509
 32.3% 126,311
 31.6% 4,198
 3.3%
Research and development89,023
 22.1% 86,975
 21.8% 2,048
 2.4%
General and administrative74,651
 18.5% 97,517
 24.4% (22,866) (23.4)%
Investigation and audit related83,398
 20.7% 46,617
 11.7% 36,781
 78.9%
Amortization of intangible assets34,823
 8.6% 31,896
 8.0% 2,927
 9.2%
Gain on asset dispositions
 —% (33,457) (8.4)% 33,457
 (100.0)%
Settlement of litigation, net82,533
 20.5% 2,363
 0.6% 80,170
 3,392.7%
Restructuring10,510
 2.6% 
 —% 10,510
 100.0%
Total expenses from operations$699,052
 173.2% $531,302
 133.0% $167,750
 31.6%
Total expenses from operations increased by $167.8 million, or 31.6%, for 2017 as compared to 2016. The increase is attributable to the following:
Increased settlement of litigation expenses primarily attributable to the proposed settlement of the federal securities class action litigation.
Increased investigation and audit related expenses as result of increased professional fees associated with legal and forensic accounting services rendered as part of our Audit Committee’s investigation and our subsequent review of policies, practices, internal controls and disclosure matters. Audit related expenses consist of professional fees associated with accounting related consulting services and external auditor fees associated with the audit of our Consolidated Financial Statements.
Increased cost of revenues expenses primarily from higher employee costs for investments made to improve our operations, panel costs and systems and bandwidth costs to support our infrastructure to deliver our products and services.
Increased costs associated with our December 2017 organizational restructuring for costs primarily related to severance.
Decreased gains from asset dispositions as the DAx disposition occurred during 2016 and there were no similar dispositions in 2017.

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Decreased general and administrative expenses primarily due to merger and integration costs in 2016 related to our merger with Rentrak as well as decreased stock-based compensation expense.
Total expenses from operations for the years ended 2016 and 2015 are as follows:
 Years Ended December 31,    
(In thousands)2016 2015 

$ Variance
 

% Variance
Cost of revenues$173,080
 $111,904
 $61,176
 54.7%
Selling and marketing126,311
 96,344
 29,967
 31.1%
Research and development86,975
 52,718
 34,257
 65.0%
General and administrative97,517
 72,493
 25,024
 34.5%
Investigation and audit related46,617
 
 46,617
 100.0%
Amortization of intangible assets31,896
 8,608
 23,288
 270.5%
(Gain) loss on asset dispositions(33,457) 4,671
 (38,128) (816.3)%
Settlement of litigation, net2,363
 (840) 3,203
 (381.3)%
Total expenses from operations$531,302
 $345,898
 $185,404
 53.6%
Total expenses from operations increased by approximately $185.4 million, or 53.6%, for 2016 as compared to 2015. The increase in expenses is primarily attributable to the following:
Rentrak's operating expenses for the period subsequent to the merger added $164.3 million of operating expenses, or 88.6% of the total increase. Included in these costs were amortization expenses of $22.3 million relating to intangible assets acquired of $170.3 million and stock-based compensation expense of $21.9 million recognized as a result of the acceleration of equity awards held by certain Rentrak executives upon consummation of the merger. Such stock-based compensation expense is reported in operating expenses on our Consolidated Statement of Operations and Comprehensive Loss as follows:
Selling and marketing expenses include $2.9 million of stock-based compensation expense;
Research and development expenses include $1.7 million of stock-based compensation expense; and
General and administrative expenses include $17.3 million of stock-based compensation expense.
Increased cost of revenues expenses relating to Rentrak subsequent to the merger. Additionally, we had an increase in cost of revenues that was primarily due to an increase in panel costs incurred, largely for investment into new products, expenses associated with engineering services provided by Compete, Inc. ("Compete") pursuant to a transition services agreement and an increase in systems and bandwidth costs due to continued investment in our services.
Increased investigation and audit related expenses as a result of increased professional fees associated with legal and forensic accounting services rendered as part of our Audit Committee’s investigation. Audit related expenses consist of professional fees associated with accounting related consulting services and external auditor fees associated with the audit of our Consolidated Financial Statements.
Decreased total expenses from operations as a result of gain recognized as a result of our DAx disposition during 2016 compared to a loss on disposition of CSWS during 2015.


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Cost of Revenues
Cost of revenues consists primarily of expenses related to producing our products, operating our network infrastructure, producing our products, and the recruitment, maintenance and support of our consumer panels. Expenses associated with these areaspanels and amortization of capitalized fulfillment costs. These expenses include the employee costs includingfor salaries, benefits, stock-based compensation and other related personnel costs of network operations, survey operations, custom analytics and technical support, all of which are expensed as they are incurred. Cost of revenues also includes costs to obtain processmultichannel video programming distributor ("MVPD") data sets and cleanse our panel, census-based and census basedother data sets used in our products as well as operational costs associated with our data centers, including depreciation expense associated with computer equipment and internally developed software that supports our panels and systems, allocated overhead, which is comprised of rent and other facilities related costs, and depreciation expense generated by general purpose equipment and software.
Cost of revenues for 2017 and 2016 are as follows:
 Years Ended December 31,  
(In thousands)2017 % of Revenue 2016 
% of Revenue 
 $ Change % Change
Employee costs$63,143
 15.6% $57,704
 14.4% $5,439
 9.4%
Data costs40,324
 10.0% 28,922
 7.2% 11,402
 39.4%
Panel costs23,966
 5.9% 20,091
 5.0% 3,875
 19.3%
Rent and depreciation17,479
 4.3% 17,241
 4.3% 238
 1.4%
Systems and bandwidth costs20,803
 5.2% 17,581
 4.4% 3,222
 18.3%
Professional fees6,053
 1.5% 6,207
 1.6% (154) (2.5)%
Technology5,369
 1.3% 4,510
 1.1% 859
 19.0%
Sample and survey costs5,845
 1.4% 5,334
 1.3% 511
 9.6%
Compete transition services
 —% 5,909
 1.5% (5,909) (100.0)%
Royalties and resellers3,271
 0.8% 2,944
 0.7% 327
 11.1%
Other7,352
 1.8% 6,637
 1.7% 715
 10.8%
Total cost of revenues$193,605
 48.0% $173,080
 43.3% $20,525
 11.9%
Cost of revenues increased by $20.5 million, or 11.9%, for 2017 as compared to 2016. The increase insystems. Additionally, cost of revenues was largely attributable to a $11.4 million increase in data costs, a $5.4 million increase in employee costs, an increase of $3.9 million in panel costsincludes allocated overhead, lease expense and an increase of $3.2 million in systems and bandwidthother facilities-related costs. These increases were offset by a reduction of $5.9 million in expenses associated with engineering services provided by Compete pursuant to a transition services agreement. During 2017, we continued to invest in TV and Cross-Platform through the acquisition of additional TV data as well investing in our digital platform through purchasing additional mobile data and panels. This investment was needed to support our products and expand our offering and these costs are expected to continue to increase in 2018.

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Cost of revenues for the years ended 2016December 31, 2022 and 20152021 are as follows:
Years Ended December 31,   Year Ended December 31,
(In thousands)2016 % of Revenue 2015 % of Revenue $ Change % Change(In thousands)2022% of Revenue2021
% of Revenue
$ Variance% Variance
Data costsData costs$70,707 18.8 %$74,196 20.2 %$(3,489)(4.7)%
Employee costs$45,567
 11.4% $44,584
 16.5% $983
 2.2%Employee costs41,003 10.9 %41,386 11.3 %(383)(0.9)%
Inclusion of Rentrak since the merger36,703
 9.2% 
 —% 36,703
 100.0%
Systems and bandwidth costsSystems and bandwidth costs34,526 9.2 %27,565 7.5 %6,961 25.3 %
Lease expense and depreciationLease expense and depreciation21,016 5.6 %18,946 5.2 %2,070 10.9 %
Panel costs20,091
 5.0% 11,357
 4.2% 8,734
 76.9%Panel costs15,747 4.2 %15,198 4.1 %549 3.6 %
Rent and depreciation17,193
 4.3% 17,885
 6.6% (692) (3.9)%
Systems and bandwidth costs17,206
 4.3% 13,765
 5.1% 3,441
 25.0%
Data costs8,373
 2.1% 6,888
 2.5% 1,485
 21.6%
Sample and survey costs5,334
 1.3% 4,545
 1.7% 789
 17.4%Sample and survey costs7,013 1.9 %7,008 1.9 %0.1 %
Compete transition services agreement5,909
 1.5% 
 —% 5,909
 100.0%
Professional feesProfessional fees5,954 1.6 %5,109 1.4 %845 16.5 %
Technology4,493
 1.1% 4,265
 1.6% 228
 5.3%Technology4,701 1.2 %5,689 1.6 %(988)(17.4)%
Consulting fees2,553
 0.6% 1,299
 0.5% 1,254
 96.5%
Royalties and resellersRoyalties and resellers3,534 0.9 %4,039 1.1 %(505)(12.5)%
Other9,658
 2.4% 7,316
 2.7% 2,342
 32.0%Other1,093 0.3 %3,908 1.1 %(2,815)(72.0)%
Total cost of revenues$173,080
 43.3% $111,904
 41.3% $61,176
 54.7%Total cost of revenues$205,294 54.5 %$203,044 55.3 %$2,250 1.1 %
Cost of revenues increased $61.2by $2.3 million, or 54.7%1.1%, for 2016the year ended December 31, 2022 as compared to 2015. Costs relating2021. Systems and bandwidth costs increased primarily due to Rentrak subsequentcloud computing and processing costs attributable to certain custom TV data set deliveries, including $4.1 million that was recognized as revenue in 2022 as described above. Lease expense and depreciation increased due to higher depreciation primarily driven by the merger added $36.7addition of capitalized internal-use software costs as a result of our acquisition of Shareablee in 2021. These increases were offset by a decrease in data costs primarily due to an amended data licensing agreement with Charter Communications, which resulted in a credit of $4.5 million or 60.0%,recognized in 2022. Additionally, other expenses decreased primarily due to higher contract fulfillment costs associated with the delivery of this increase. Excluding Rentrak costs, costour cross-platform products in Europe in 2021.
Cost of revenues for the years ended December 31, 2021 and 2020 are as follows:
Year Ended December 31,
(In thousands)2021% of Revenue2020
% of Revenue
$ Variance% Variance
Data costs$74,196 20.2 %$63,598 17.9 %$10,598 16.7 %
Employee costs41,386 11.3 %38,920 10.9 %2,466 6.3 %
Systems and bandwidth costs27,565 7.5 %24,349 6.8 %3,216 13.2 %
Lease expense and depreciation18,946 5.2 %16,970 4.8 %1,976 11.6 %
Panel costs15,198 4.1 %19,075 5.4 %(3,877)(20.3)%
Sample and survey costs7,008 1.9 %5,133 1.4 %1,875 36.5 %
Technology5,689 1.6 %5,710 1.6 %(21)(0.4)%
Professional fees5,109 1.4 %4,272 1.2 %837 19.6 %
Royalties and resellers4,039 1.1 %(33)— %4,072 
NM (1)
Other3,908 1.1 %2,718 0.8 %1,190 43.8 %
Total cost of revenues$203,044 55.3 %$180,712 50.8 %$22,332 12.4 %
(1) Calculation is not meaningful.
Cost of revenues increased by $24.5$22.3 million, or 21.9%12.4%, for the year ended December 31, 2021 as compared to 2015, and was2020. Data costs increased primarily due to an $8.7higher TV data licensing costs to expand our data footprint and data rights, including our expanded data license with Charter Communications. Royalties and resellers expenses increased primarily due to a $2.0 million increaseone-time, non-cash benefit related to certain revenue share arrangements recorded in the fourth quarter of 2020, lower costs during 2020 due to less revenue associated with revenue sharing arrangements, and a reclassification of costs historically captured in data costs to better reflect the nature of the services provided. Systems and
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bandwidth costs increased primarily due to increases in cloud-based data storage and bandwidth capacity. Employee costs increased as we allocated more employee resources towards support of our products and operating infrastructure and modified certain employee incentive compensation. Lease expense and depreciation increased primarily due to higher depreciation driven by previously capitalized internal-use software costs. Sample and survey costs increased primarily due to higher sales and deliveries of digital marketing solutions. Other expenses increased primarily due to higher contract fulfillment costs associated with the delivery of our cross-platform products in Europe. Offsetting these increases was a decrease in panel costs largely to help grow our Total Home Panel, $5.9 million in 2016 expenses associated with engineering services provided by Compete a pursuant to a transition services agreement, an increase of $3.4 million in systems and bandwidth costs, an increase of $1.5 million in data costs and an increase in consulting fees of $1.3 millionprimarily due to continued investment inlower recruitment and support costs for our services. In addition, we incurred an increase in various other costs, largely attributable to costs associated with our license agreement with Adobe Systems Incorporated ("Adobe") following the sale of the DAx business, which allowed us to service certain non-DAx customers using the proprietary technology sold to Adobe as the Company developed an alternative platform.mobile panels.
Selling and Marketing
Selling and marketing expenses consist primarily of employee costs, including salaries, benefits, commissions, stock-based compensation and other related costs paid to our directfor personnel associated with sales force and industry experts,marketing activities, as well as costs related to online and offline advertising, industry conferences, promotional materials, public relations, other sales and marketing programs and allocated overhead, which is comprised of rentlease expense and other facilities relatedfacilities-related costs, and depreciation expense generated by general purpose equipment and software. All selling and marketing costs are expensed as they are incurred. Commission plans are developed for our account managers with criteria and size of sales quotas that vary depending upon the individual’s role.
Selling and marketing expenses for the years ended 2017December 31, 2022 and 20162021 are as follows:
Years Ended December 31,   Year Ended December 31,
(In thousands)2017 % of Revenue 2016 % of Revenue $ Change % Change(In thousands)2022% of Revenue2021% of Revenue$ Variance% Variance
Employee costs$100,236
 24.8% $93,480
 23.4% $6,756
 7.2%Employee costs$55,416 14.7 %$55,966 15.2 %$(550)(1.0)%
Rent and depreciation10,304
 2.6% 10,425
 2.6% (121) (1.2)%
Lease expense and depreciationLease expense and depreciation3,849 1.0 %4,217 1.1 %(368)(8.7)%
TechnologyTechnology3,360 0.9 %2,621 0.7 %739 28.2 %
Professional fees6,551
 1.6% 6,729
 1.7% (178) (2.6)%Professional fees2,464 0.7 %2,024 0.6 %440 21.7 %
Travel6,926
 1.7% 7,555
 1.9% (629) (8.3)%
Compete transition services agreement
 —% 1,682
 0.4% (1,682) (100.0)%
Marketing and advertisingMarketing and advertising1,751 0.5 %953 0.3 %798 83.7 %
Other6,492
 1.6% 6,440
 1.6% 52
 0.8%Other1,613 0.4 %1,156 0.3 %457 39.5 %
Total selling and marketing expenses$130,509
 32.3% $126,311
 31.6% $4,198
 3.3%Total selling and marketing expenses$68,453 18.2 %$66,937 18.2 %$1,516 2.3 %
Selling and marketing expenses increased by $4.2$1.5 million, or 3.3%2.3%, for 2017the year ended December 31, 2022 as compared to 2016. The increase in selling2021. Marketing and marketing expenses was a result of an increase in employee costs that was largely attributableadvertising expense increased primarily due to increased headcount to support our globalparticipation in marketing needs. This increase was offset by a decrease associated with the Compete transition services agreement, and our reduction in outside professional fees. We expect these costs to decrease in 2018 due to lower personnel costs as a result of headcount reductions undertaken at the end of 2017.

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events during 2022.
Selling and marketing expenses for the years ended 2016December 31, 2021 and 20152020 are as follows:
Years Ended December 31,   Year Ended December 31,
(In thousands)2016 % of Revenue 2015 % of Revenue $ Change % Change(In thousands)2021% of Revenue2020% of Revenue$ Variance% Variance
Employee costs$65,365
 16.4% $76,257
 28.2% $(10,892) (14.3)%Employee costs$55,966 15.2 %$57,629 16.2 %$(1,663)(2.9)%
Inclusion of Rentrak since the merger40,572
 10.2% 
 —% 40,572
 100.0%
Rent and depreciation6,839
 1.7% 8,159
 3.0% (1,320) (16.2)%
Lease expense and depreciationLease expense and depreciation4,217 1.1 %4,980 1.4 %(763)(15.3)%
TechnologyTechnology2,621 0.7 %2,579 0.7 %42 1.6 %
Professional fees4,001
 1.0% 3,542
 1.3% 459
 13.0%Professional fees2,024 0.6 %2,651 0.7 %(627)(23.7)%
Travel4,969
 1.2% 5,295
 2.0% (326) (6.2)%
Compete transition services1,682
 0.4% 
 —% 1,682
 100.0%
Marketing and advertisingMarketing and advertising953 0.3 %817 0.2 %136 16.6 %
Other2,883
 0.7% 3,091
 1.1% (208) (6.7)%Other1,156 0.3 %1,564 0.4 %(408)(26.1)%
Total selling and marketing expenses$126,311
 31.6% $96,344
 35.6% $29,967
 31.1%Total selling and marketing expenses$66,937 18.2 %$70,220 19.7 %$(3,283)(4.7)%
Selling and marketing expenses increaseddecreased by $30.0$3.3 million, or 31.1%4.7%, during 2016for the year ended December 31, 2021 as compared to 2015. Costs relating2020. Employee costs decreased primarily due to Rentrak subsequent to the merger added $40.6 million of selling and marketing expenses. Excluding the impact of Rentrak, selling and marketing expenses decreased by $10.6 million, or 11.0%, which was largely attributable to a decrease of $10.9 million in employee costslower commission expense and a decrease of $1.3 million in rentemployee headcount. Lease and depreciation expense decreased primarily due to lower rent as we reduced our office footprint and sublet two locations during 2016. These decreases were attributable to the reduction in force that occurred in 2016 as well as the sale of the DAx business in 2016. The decrease in expenses were offset by an increase of $1.7 million in Compete transition services costs in 2017.2020.
Research and Development
Research and development expenses include new product development costs, consisting primarily of employee costs including salaries, benefits, stock-based compensation and other related costs for personnel associated with research and development activities, third-party expenses to develop new products and third-party data costs and allocated overhead, which is comprised of rentlease expense and other facilities relatedfacilities-related costs, and depreciation expense related to general purpose equipment and software.
Research and development expenses for the years ended 2017December 31, 2022 and 20162021 are as follows:
Year Ended December 31,
(In thousands)2022% of Revenue2021% of Revenue$ Variance% Variance
Employee costs$28,955 7.7 %$29,116 7.9 %$(161)(0.6)%
Technology3,685 1.0 %4,264 1.2 %(579)(13.6)%
Lease expense and depreciation2,783 0.7 %3,555 1.0 %(772)(21.7)%
Professional fees1,002 0.3 %1,664 0.5 %(662)(39.8)%
Other562 0.1 %524 0.1 %38 7.3 %
Total research and development expenses$36,987 9.8 %$39,123 10.7 %$(2,136)(5.5)%
34

 Years Ended December 31,    
(In thousands)2017 % of Revenue 2016 % of Revenue $ Change % Change
Employee costs$71,527
 17.7% $66,972
 16.8% $4,555
 6.8%
Rent and depreciation7,729
 1.9% 7,453
 1.9% 276
 3.7%
Compete transition services agreement
 —% 3,622
 0.9% (3,622) (100.0)%
Technology4,736
 1.2% 3,792
 0.9% 944
 24.9%
Professional fees2,351
 0.6% 2,962
 0.7% (611) (20.6)%
Other2,680
 0.7% 2,174
 0.5% 506
 23.3%
Total research and development expenses$89,023
 22.1% $86,975
 21.8% $2,048
 2.4%
Table of Contents

Research and development expenses increaseddecreased by $2.0$2.1 million, or 2.4%5.5%, for 2017the year ended December 31, 2022 as compared to 2016. The increase was2021. Lease and depreciation expense decreased primarily attributabledue to increases in employee costs and technology costslower rent as we increased focus on new product offerings. These increases were offset byreduced our office footprint. Professional fees decreased primarily due to a decrease in Compete transition services agreementconsulting services. Technology expenses and a reduction in professional fees which were higher in 2016decreased due to the development of a platform following the acquisition of Compete assets. While we continuedecreases in various license and maintenance agreements compared to focus on research and development to support new products, we expect these costs to decrease in 2018 as a result of lower personnel costs from our headcount reduction completed at the end of 2017.

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2021.
Research and development expenses for the years ended 2016December 31, 2021 and 20152020 are as follows:
Years Ended December 31,   Year Ended December 31,
(In thousands)2016 % of Revenue 2015 % of Revenue $ Change % Change(In thousands)2021% of Revenue2020% of Revenue$ Variance% Variance
Employee costs$37,361

9.4% $40,511
 15.0% $(3,150) (7.8)%Employee costs$29,116 7.9 %$28,512 8.0 %$604 2.1 %
Inclusion of Rentrak since the merger33,392
 8.4% 
 —% 33,392
 100.0%
Rent and depreciation5,244

1.3% 5,003
 1.8% 241
 4.8%
Compete transition services agreement3,622
 0.9% 
 —% 3,622
 100.0%
Technology3,335

0.8% 3,901
 1.4% (566) (14.5)%Technology4,264 1.2 %4,322 1.2 %(58)(1.3)%
Lease expense and depreciationLease expense and depreciation3,555 1.0 %3,999 1.1 %(444)(11.1)%
Professional fees2,279

0.6% 1,181
 0.4% 1,098
 93.0%Professional fees1,664 0.5 %1,258 0.4 %406 32.3 %
Other1,742

0.4% 2,122
 0.8% (380) (17.9)%Other524 0.1 %615 0.2 %(91)(14.8)%
Total research and development expenses$86,975

21.8% $52,718
 19.5% $34,257
 65.0%Total research and development expenses$39,123 10.7 %$38,706 10.9 %$417 1.1 %
Research and development expenses increased by $34.3$0.4 million, or 65.0%1.1%, for 2016the year ended December 31, 2021 as compared to 2015. Costs relating to Rentrak subsequent to the merger added $33.4 million of research and development expenses. Excluding the impact of Rentrak, research and development expenses only2020. Employee costs increased slightlyprimarily due to an increase in costs attributable tohigher stock-based compensation expense and the Compete transition services agreement and professional fees to develop the platform following the acquisitionmodification of Compete assets, partially offset by a reduction incertain employee costs.incentive compensation.
General and Administrative
General and administrative expenses consist primarily of employee costs including salaries, benefits, stock-based compensation and other related costs, and related expenses for executive management, finance, accounting, human capital, legal and other administrative functions, as well as professional fees, overhead, including allocated overhead, which is comprised of rentlease expense and other facilities relatedfacilities-related costs, and depreciation expense related to general purpose equipment and software, and expenses incurred for other general corporate purposes.
General and administrative expenses for the years ended 2017December 31, 2022 and 20162021 are as follows:
Year Ended December 31,
(In thousands)2022% of Revenue2021% of Revenue$ Variance% Variance
Employee costs$31,298 8.3 %$33,571 9.1 %$(2,273)(6.8)%
Professional fees15,706 4.2 %16,194 4.4 %(488)(3.0)%
Technology3,379 0.9 %2,922 0.8 %457 15.6 %
Lease expense and depreciation1,668 0.4 %1,888 0.5 %(220)(11.7)%
Other9,149 2.4 %7,161 2.0 %1,988 27.8 %
Total general and administrative expenses$61,200 16.3 %$61,736 16.8 %$(536)(0.9)%
 Years Ended December 31,    
(In thousands)2017 % of Revenue 2016 % of Revenue $ Change % Change
Employee costs$30,362
 7.5% $47,265
 11.8% $(16,903) (35.8)%
Professional fees17,383
 4.3% 21,279
 5.3% (3,896) (18.3)%
DAx transition services agreement11,004
 2.7% 12,395
 3.1% (1,391) (11.2)%
Rent and depreciation3,148
 0.8% 3,595
 0.9% (447) (12.4)%
Office expenses2,065
 0.5% 2,272
 0.6% (207) (9.1)%
Other10,689
 2.6% 10,711
 2.7% (22) (0.2)%
Total general and administrative expenses$74,651
 18.5% $97,517
 24.4% $(22,866) (23.4)%
General and administrative expenses decreased by $22.9$0.5 million, or 23.4%0.9%, for 2017the year ended December 31, 2022 as compared to 2016, largely attributable2021. Employee costs decreased primarily due to a decrease in employee costs. The decrease primarily resulted from a reduction inlower stock-based compensation expense which wasas a result of various executive departures in 2022 offset by an increase in salary costs. These decreases were partially offset by an increase in Other primarily attributablerelated to the acceleration of equity awards held by certain Rentrak executives upon consummationchange in fair value of the merger during 2016. In addition, professional fees decreased from lower merger and integration costs and expenses associated withcontingent consideration recognized as part of the DAx transition services agreement.

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business combination described in TableFootnote 2, Summary of Contents


Significant Accounting Policies.
General and administrative expenses for the years ended 2016December 31, 2021 and 20152020 are as follows:
Year Ended December 31,
(In thousands)2021% of Revenue2020% of Revenue$ Variance% Variance
Employee costs$33,571 9.1 %$28,205 7.9 %$5,366 19.0 %
Professional fees16,194 4.4 %12,922 3.6 %3,272 25.3 %
Technology2,922 0.8 %2,246 0.6 %676 30.1 %
Lease expense and depreciation1,888 0.5 %2,114 0.6 %(226)(10.7)%
Other7,161 2.0 %10,296 2.9 %(3,135)(30.4)%
Total general and administrative expenses$61,736 16.8 %$55,783 15.7 %$5,953 10.7 %
 Years Ended December 31,    
(In thousands)2016 
% of Revenue 
 2015 % of Revenue $ Change % Change
Inclusion of Rentrak since the merger$31,375
 7.9% $
 —% $31,375
 100.0%
Professional fees18,441
 4.6% 17,223
 6.4% 1,218
 7.1%
Employee costs21,884
 5.5% 39,429
 14.6% (17,545) (44.5)%
DAx transition services agreement12,395
 3.1% 
 —% 12,395
 100.0%
Rent and depreciation1,968
 0.5% 2,203
 0.8% (235) (10.7)%
Office expenses2,055
 0.5% 2,086
 0.8% (31) (1.5)%
Other9,399
 2.4% 11,552
 4.3% (2,153) (18.6)%
Total general and administrative expenses$97,517
 24.4% $72,493
 26.8% $25,024
 34.5%
(1) Calculation is not meaningful.
General and administrative expenses increased by $25.0$6.0 million, or 34.5%10.7%, during 2016for the year ended December 31, 2021 as compared to 2015. Costs relating2020. Employee costs increased primarily due to Rentrak subsequent to the merger added $31.4 million of general and administrative expenses, including $17.3 million inhigher stock-based compensation expense associated withand the accelerationmodification of equity awards held by certain Rentrak executives upon consummation of the merger. Excluding the increase in expenses associated with Rentrak, general and administrative expenses decreased by $6.4 million, or 8.8%,employee incentive compensation. Professional fees increased primarily due to increased consulting and audit fees in 2021 related to implementation support for our new ERP system. These increases were offset by a $17.5 million decrease in employee costs which were largely a result of a significant reduction in stock-based compensation in 2016. This decrease was partially offset by increases in professional fees and fees and expensesother, primarily related to higher bad debt expense in the DAx transition services agreement.
Investigation and Audit Related
In February 2016, the Audit Committee commenced an internal investigation, with the assistancefirst half of outside advisors. Investigation, audit, and litigation related expenses were $83.4 million and $46.6 million for 2017 and 2016, respectively. Investigation expenses include professional fees associated with legal and forensic accounting services rendered as part of the investigation. Audit related expenses consist of professional fees associated with accounting related consulting services and external auditor fees associated with the audit of our Consolidated Financial Statements. Litigation related expenses include legal fees associated with various lawsuits or investigations that were initiated either directly or indirectly2020 as a result of the Audit Committee's investigation. We expect these costs to continue into 2018, but at a reduced level following completionCOVID-19 pandemic.
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Table of prior year audits and filing of this 10-K.  However, we expect to continue to incur legal costs throughout 2018 related to the Audit Committee's investigation, litigation, and other investigations or proceedings, and legal expenses associated with indemnification of current and former directors and officers. Contents

Amortization of Intangible Assets
Amortization expense consists of charges related to the amortization of intangible assets associated with acquisitions.
acquisitions, primarily our Rentrak merger in which we acquired $170.3 million of finite-lived intangible assets. Amortization of intangible assets increased by $2.9$2.1 million, or 9.2%8.2%, for 20172022 as compared to 2016. In January 2016, we merged with Rentrak2021 primarily due to amortization related to the customer relationships, methodologies and technology acquired $170.3 million definite-lived intangible assets and as such, only incurred eleven monthspart of amortization of these intangibles for 2016.
the Shareablee acquisition in December 2021. Amortization of intangible assets increaseddecreased by $23.3$2.2 million, or 270.5%8.0%, for 20162021 as compared to 2015, largely2020 due primarily to certain acquired software and customer relationship intangibles having reached the end of their useful lives.
Impairment of Goodwill
As of September 30, 2022, as a result of the recognition of definite-lived intangible assets following the consummation of the Rentrak merger and the acquisition of Compete. In addition, during 2016, we recognized twelve months of amortization on the intangible assets acquireda decline in our April 2015 acquisitionstock price and market capitalization, among other factors, we performed an interim impairment review of our goodwill in conjunction with our October 1, 2022 annual testing date. Our reporting unit did not pass the IAM business, including the strategic alliance with WPPgoodwill impairment test, and as a result we recorded a $46.3 million non-cash impairment charge.
For further information refer to jointly deliver cross-media audienceFootnote 10, Goodwill and campaign measurement in markets outside the U.S.Intangible Assets andItem 7, Critical Accounting Estimates.
(Gain) Loss on Asset DispositionRestructuring
(Gain) loss on asset disposition decreased by $33.5We incurred restructuring expenses of $5.8 million for 2017 compared to 2016. (Gain) loss on asset disposition increased by $38.1 million, during the year ended 2016 as comparedDecember 31, 2022, related to the year ended 2015. During 2016,implementation of a restructuring plan that included a workforce reduction. Certain other initiatives are expected to be completed as part of the restructuring plan, as described in Footnote 15, Organizational Restructuring. No restructuring expenses were incurred during 2021 or 2020.
Impairment of Right-of-use and Long-lived Assets
In 2020, we sold our DAx business to Adobe and realizedrecorded a gain on disposition of $33.5$4.7 million and during 2015, we completed a sale of our CSWS mobile operator analytics business and recognized a loss on disposition of $4.7 million.

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Settlement of Litigation, Net
Settlement of litigation, net, consists of losses from the settlementimpairment charge related to our various litigation matters offsetfacility lease right-of-use assets and associated leasehold improvements for certain properties on the market for sublease. The impairment charge was driven by gains fromchanges in our patent litigation settlements. The losses are netprojected undiscounted cash flows for certain properties, primarily as a result of insurance proceeds. Settlement of litigation, net, increased $80.2 million for 2017 as comparedchanges in the real estate market related to 2016. Thethe COVID-19 pandemic, that led to an increase in the net settlementestimated marketing time and a reduction of litigation expenses for 2017 primarily relatesexpected receipts.
Loss on Extinguishment of Debt
Loss on extinguishment of debt represents the difference between the carrying value of our debt instruments and any consideration paid to our creditors in the form of cash or shares of our Common Stock on the extinguishment date.
In 2021, we recorded a $9.6 million loss on debt extinguishment related to the proposed settlementpayoff of our senior secured convertible notes issues to Starboard Value LP (the "Notes") and a subsidiary-issued secured promissory note (the "Secured Term Note") on March 10, 2021. The primary drivers of the federal securities class action litigation for which we have reserved a totalextinguishment loss were the write-off of $110.0 million in accrued litigation settlements for the gross settlement amount, and recorded $37.2 million in insurance recoverable on litigation settlements for the insurance proceeds expected from our insurers on our Consolidated Balance Sheets as of December 31, 2017.
Settlement of litigation, net, increased by $3.2 million, during 2016 as compared to 2015. The increase is attributable to net losses associated with the settlement of certain employee related matters that arose and were settled during 2016.
Organizational Restructuring
In December 2017, we announced that we were implementing an organizational restructuring to reduce staffing levels by approximately 10% and exit certain geographic regions, in order to enable us to decrease our globalunamortized deferred financing costs and more effectively align resources to business priorities. The majorityissuance discounts, the issuance of the employees impacted by the restructuring exitedadditional shares of Common Stock in the fourth quarter of 2017, and the remainder are expected to exit in the first quarter 2018. In connection with the restructuring,extinguishment, and the derecognition of the interest rate reset derivative liability on the Notes. These components are described in the fourth quarter of 2017 we incurred expenses of $10.5 million related to termination benefits and other costs. We expect to incur an incremental charge in the first quarter of 2018 related to certain employees who exit in 2018.Footnote 6, Debt.
Interest Expense, Net
Interest expense, net consists of interest income and interest expense. Interest income primarily consists of interest earned from our cash and cash equivalent balances, marketable securities and imputed interest on the minimum commitment agreements entered into with WPP and its affiliates.balances. Interest expense relates to interest on our capital leases pursuant to several equipment loanNotes, Secured Term Note, Revolving Credit Agreement, sale-leaseback agreement, and security agreements on financing of equipment, software and hardware purchases well as our revolving credit facility.finance leases.
Interest expense, net, increaseddecreased $6.9 million during 20172022 to $0.9 million as compared to 2016 as result of a decrease$7.8 million in interest income from lower marketable securities balances during the year and lower imputed interest income on the minimum commitment agreements with WPP and its affiliates as we continue to receive payments, therefore reducing the carrying value of these assets.2021. The decrease in interest incomeexpense for the year ended December 31, 2022 as compared to 2021 was partially offset by a decreaseprimarily due to the extinguishment of the Notes and the Secured Term Note in interest expense incurred on our capital lease agreements.March 2021, as described in Footnote 6, Debt.
Interest expense, net, decreased during 2016to $7.8 million in 2021 as compared to 2015 as a result$35.8 million in 2020. Interest expense decreased in 2021 primarily due to the extinguishment of the imputed interest income earnedNotes and the Secured Term Note in March 2021.
Refer to Footnote 6, Debt for information on the minimum commitment contracts with WPPour debt and its affiliates and interest income earned on the marketable securities acquired during 2016 from the Rentrak merger.related extinguishments.
Other Income (Expense), Net
Other income (expense), net represents income and expenses incurred that are generally not recurring in nature noror are not part of our normal operations.
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The following is a summary of other income (expense), net:
 Years Ended December 31,
(In thousands)202220212020
Change in fair value of financing derivatives$— $1,800 $10,287 
Change in fair value of warrants liability9,802 (7,689)4,894 
Other(17)111 (627)
Total other income (expense), net$9,785 $(5,778)$14,554 
 Years Ended December 31,
(In thousands)2017 2016 2015
Transition services agreement income from the DAx disposition$11,080
 $12,395
 $
Gain on forgiveness of obligation4,000
 
 
Other125
 (24) 9
Total other income, net$15,205
 $12,371
 $9
IncomeTotal other income, net for the year ended December 31, 2022 was $9.8 million as compared to total other expense, net of $5.8 million in 2021. The increase in other income, net was primarily driven by gains from transition services represents Adobe's reimbursementthe change in fair value of costs incurred under the transition services agreement following the DAx disposition and are offset in general and administrative expenses. Thewarrants liability due to a decrease in 2017the trading price of our Common Stock during the year. This compared to 2016 relatesother expense, net for 2021 due to reduced activitythe loss on the warrants liability resulting from an exercise price adjustment described in Footnote 5, Convertible Redeemable Preferred Stock and Stockholders' Equity, and an increase in the secondtrading price of our Common Stock during 2021.
Total other expense, net for the year ended December 31, 2021 was $5.8 million as compared to total other income, net of $14.6 million in 2020. The shift from other income, net was largely driven by a loss from the transaction services agreement. change in the fair value of our warrants liability and lower gains from the change in fair value of our financing derivatives. The loss on the warrants liability for 2021 was due primarily to the exercise price adjustment described in Footnote 5, Convertible Redeemable Preferred Stock and Stockholders' Equity, and an increase in the trading price of our Common Stock during 2021. The gain on forgivenessthe financing derivatives was primarily due to the passage of obligation in 2017 representstime as our remaining future interest obligations declined over the terminationterm of the Strategic Partnership Agreement with Adobe, which released us from our remaining obligation.Notes prior to their extinguishment in March 2021.
LossGain (Loss) from Foreign Currency Transactions
Our foreign currency transactions are recorded as a result of fluctuations in the exchange rate between the U.S. dollartransactional currency and the functional currency of foreign subsidiaries functional currency. subsidiary transactions.
For 2017, 2016the year ended December 31, 2022, the gain from foreign currency transactions was $1.2 million. The gain was primarily driven by fluctuations in the Euro and 2015,Chilean Peso against the U.S. Dollar and U.S. Dollar against the Canadian Dollar and Argentine Peso.
For the year ended December 31, 2021, the gain from foreign currency transactions was $2.9 million. The gain was primarily driven by fluctuations in the Euro and Chilean Peso against the U.S. Dollar and Chilean Peso against the Euro.
For the year ended December 31, 2020, the loss from foreign currency transactions was $3.2 million, $1.2 million and $1.3 million, respectively.$4.5 million. The increased loss in 2017 was primarily related to increasesdriven by fluctuations in the averageChilean Peso against both the U.S. dollar to euroDollar and British pound exchange rates which increased 12%Brazilian Real and 7%, respectively, from December 2016 to December 2017.the U.S. Dollar against the Euro.

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Provision for Income TaxesTax Provision
A valuation allowance has been established against our net U.S. federal and state deferred tax assets, and certain foreign deferred tax assets, including net operating loss carryforwards. As a result, our income tax position is primarily related to foreign tax activity and U.S. deferred taxes for tax deductible goodwill and other indefinite-lived liabilities.
We recognizedDuring the years ended December 31, 2022, 2021, and 2020, we recorded an income tax provision of $1.7 million, $0.9 million, and $0.9 million, resulting in an effective tax rate of 2.7%, 1.7%, and 1.9%, respectively. These effective tax rates differ from the U.S. federal statutory rate primarily due to the effects of certain permanent items, foreign tax rate differences, and increases in the valuation allowance against our domestic deferred tax assets.
Included within tax expense for the year ended December 31, 2022 is income tax benefit of $2.7$2.6 million duringfor permanent differences in the year ended 2017 which is comprised of current tax expense of $0.5 million primarily related to foreign taxesbook and a deferred tax benefit of $3.2 million related to temporary differences between the tax treatment of nontaxable gain on fair market value adjustment of stock warrants, offset by certain nondeductible stock-based compensation and financial reporting treatment for certain items. Included withinexecutive compensation. Also included in the total tax benefitexpense is an income tax benefitadjustment of $8.3$12.7 million related to the impactimpairment of the TCJA provisions on our U.S. deferred taxes, including the reduction in the corporate tax rate from 35% to 21% and a change in our valuation allowance assessment. Also included is incomegoodwill. Income tax expense of $126.1$18.5 million related to thehas also been included for an increase in the valuation allowance recorded against our deferred tax assets to offset the tax benefit of our operating losses in the U.S. and certain foreign jurisdictions. IncomeThese tax adjustments, along with state and local taxes and book losses in foreign jurisdictions where the income tax rate is substantially lower than the U.S. federal statutory rate, are the primary drivers of the annual effective income tax rate.
Included within tax expense for the year ended December 31, 2021 are income tax adjustments of $2.5$9.2 million has also been included for permanent differences in the book and tax treatment of certain stock-based compensation, mealslimitations on the deductibility of certain executive compensation, nondeductible interest expense on debt instruments and entertainmentassociated derivatives, and other nondeductible expenses.
We recognized an income tax benefit Also included is a favorable return to provision true-up adjustment of $4.0$8.3 million during thefor a prior year ended 2016 which is comprised of a current tax benefit of $0.8 million related to federal and state taxes, current tax expense of $0.8 millionpermanent difference related to foreign taxes, andearnings taxable in the U.S. as a deferredresult of a tax benefit of $4.0 million related to temporary differences between the tax treatment and financial reporting treatment for certain items. Included within total tax benefit is income taxrestructuring that occurred during 2020. Tax expense of $54.9$16.3 million related to thehas also been included for an increase in the valuation allowance recorded against our deferred tax assets to offset the tax benefit of our operating losses in the U.S. and certain foreign jurisdictions. Also included is an incomeThis increase was offset by a tax benefit of $6.9$2.8 million related tofor the release of thea portion of our U.S. valuation allowance as a result of the merger with Rentrak andShareablee acquisition.
Included within tax expense for the year ended December 31, 2020 are income tax expenseadjustments of $12.7$8.9 million for permanent differences in the book and tax treatment of certain stock-based compensation, limitations on the DAx disposition,deductibility of certain transaction costs, excess officers'executive compensation, nondeductible
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interest expense on debt instruments and associated derivatives, and other nondeductible expenses.
We recognized Also included is an income tax provisionadjustment of $0.5$11.2 million during the year ended 2015 which is comprised offor a current tax benefit of $1.3 million related to federal and state taxes, current tax expense of $1.9 millionpermanent difference related to foreign taxes and a deferred tax benefit of $0.1 million related to temporary differences between the tax treatment and financial reporting treatment for certain items. Included within total tax expense is income tax expenses of $7.2 million related to the increase in the valuation allowance recorded against our deferred tax assets and an income tax benefit of $6.7 million related to a worthless stock deduction resulting from the disposition of the CSWS mobile operator analytics business. Also included is income tax expense of $20.6 million related to the permanent difference in the book and tax treatment of the WPP capital transactions and income tax expense of $4.6 million for other permanent differences such as certain revenue related adjustments, certain transaction costs, excess officers' compensation, and other nondeductible expenses.

Key Metrics
 Years Ended December 31,
(in thousands)2017 2016 2015
Revenue$403,549
 $399,460
 $270,803
Non-GAAP revenue (1)(3)(4)
$403,549
 $398,160
 $240,867
Net loss$(281,393) $(117,173) $(78,222)
Adjusted EBITDA (2)(3)(4)
$(18,710) $24,505
 $52,264
Adjusted EBITDA margin (3)(4)
(4.6)% 6.2% 21.7%
(1) Non-GAAP revenue is not calculated in accordance with generally accepted accounting principlesearnings taxable in the U.S. ("GAAP"). A reconciliation of this non-GAAP measure to the most directly comparable GAAP-based measure, along with a summary of the definition and its material limitations, are included in the section titled "Non-GAAP Financial Measures."
(2) Adjusted EBITDA is not calculated in accordance with GAAP. A reconciliation of this non-GAAP measure to the most directly comparable GAAP-based measure, along with a summary of the definition and its material limitations, are included in the section titled “Non-GAAP Financial Measures.”
(3) We divested our DAx business on January 21, 2016. Amounts for the years ended December 31, 2016 and 2015 include adjustments to exclude DAx products and are based on the revenue and estimates of the direct costs attributable to the disposed products.
(4) We completed the disposition of CSWS, on May 11, 2015. Amounts for the year ended December 31, 2015 include adjustments to exclude CSWS and are based on the revenue and estimates of the direct costs attributable to CSWS.
We monitor the key financial and operating metrics set forth in the preceding table to help us evaluate trends and measure the effectiveness and efficiency of our operations. We discuss our revenue in the section titled “Results of Operations” and Adjusted EBITDA and Adjusted EBITDA margin in the section titled “Non-GAAP Financial Measures.”
Subsequent to our disclosure of Adjusted EBITDA for the quarter and year ended December 31, 2015 that was presented in our preliminary unaudited Condensed Consolidated Financial Statements for the quarter and year ended December 31, 2015 included as an exhibit to our Current Report on Form 8-K furnished on February 17, 2016, we have refined the definition of Adjusted EBITDA as utilized by our current management. Such prior period disclosures may not be comparable with the disclosures

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presented herein. Accordingly, investors should rely only on the financial information and other disclosures in this 10-K and our Quarterly Reports on Form 10-Q for the quarters ended March 31, June 30, and September 30, 2017 (which are being filed concurrently with this 10-K), as applicable, and should not rely on any previously issued or filed reports, earnings releases, guidance, investor presentations, or similar communications, including regarding the Company's customer count and validated Campaign Essentials (or vCE) products, regarding these periods.
Non-GAAP Financial Measures
To provide investors with additional information regarding our financial results, we are disclosing herein non-GAAP revenue, Adjusted EBITDA and Adjusted EBITDA margin, each of which are non-GAAP financial measures used by our management to understand and evaluate our core operating performance and trends. We believe that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our operating results, as they permit our investors to view our core business performance using the same metrics that management uses to evaluate our performance.
Non-GAAP revenue is GAAP revenue less the revenue earned from our disposed businesses, DAx and CSWS.
EBITDA is defined as GAAP net income (loss) plus or minus interest, taxes, depreciation and amortization of intangible assets. We define Adjusted EBITDA as EBITDA plus or minus stock-based compensation expense as well as other items and amounts which we view as not indicative of our core operating performance, specifically: charges for matters relating to the Audit Committee investigation described herein, such as litigation and investigation-related costs, costs associated with tax projects, audits and other professional, consulting or other fees; settlement of litigation, net; (gain) loss on asset disposition(s); restructuring costs, acquisition and third-party post-merger integration costs; income/expenses of divested businesses, such as the DAx and CSWS businesses (including by adjusting prior years' results to exclude those businesses from operating results); vendor consideration and other income, net.
Adjusted EBITDA margin is the quotient of Adjusted EBITDA divided by non-GAAP revenue.
Our use of these non-GAAP financial measures has limitations as an analytical tool, and investors should not consider these measures in isolation or as a substitute for analysisresult of our results as reported under GAAP. The limitations of such non-GAAP measures include the following:
Adjusted EBITDA does not reflecta tax or interest paymentsrestructuring that represent a reduction in cash available to us;
Depreciation and amortization are non-cash charges and the assets being depreciated may have to be replaced in the future. Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements;
Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;
Adjusted EBITDA does not reflect cash payments relating to litigation and the Audit Committee investigation described herein, such as litigation and investigation-related costs, costs associated with tax projects, restructuring costs, audits and other professional, consulting or other fees incurred in connection with our just-completed audit and all related legal proceedings, all of which represent a reduction in cash available to us;
Adjusted EBITDA does not consider the impact of stock-based compensation and similar arrangements; and
Other companies, including companies in our industry, may calculate any of these non-GAAP financial measures differently, which reduces their usefulness as comparative measures.
Because of these and other limitations, you should consider non-GAAP revenue and Adjusted EBITDA alongside GAAP-based financial performance measures, including GAAP revenue and various cash flow metrics, net income (loss) and our other GAAP financial results. Management addresses the inherent limitations associated with using non-GAAP financial measures through disclosure of such limitations, presentation of our financial statements in accordance with GAAP and a reconciliation of non-GAAP revenue and Adjusted EBITDA to the most directly comparable GAAP measures, GAAP revenue and net income (loss), respectively. Consolidated EBITDA, as defined for purposes of the senior secured convertible notes issued in January 2018, was the same as Adjusted EBITDA as presented below for 2017.
The following table presents a reconciliation of non-GAAP revenue to GAAP revenue, for each of the periods identified:
 Years Ended December 31,
(In thousands)2017 2016 2015
Revenues (GAAP)$403,549
 $399,460
 $270,803
Less: Non-GAAP revenue adjustments (1)

 (1,300) (29,936)
Non-GAAP revenue$403,549
 $398,160
 $240,867
(1) Adjustments to remove revenue attributable to DAx and CSWS, which were disposed of during 2016 and 2015, respectively.

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The following table presents a reconciliation of Adjusted EBITDA to net loss for each of the periods identified:
 Years Ended December 31,
(In thousands)
2017 2016 2015
Net loss (GAAP)$(281,393) $(117,173) $(78,222)
      
Income tax (benefit) provision(2,717) (4,007) 484
Interest expense, net661
 478
 1,321
Depreciation23,339
 25,439
 22,595
Amortization of intangible assets34,823
 31,896
 8,608
EBITDA(225,287) (63,367) (45,214)
      
Adjustments:     
Stock-based and expected awards compensation expense (1)
34,261
 46,495
 46,983
Investigation and audit related83,398
 46,617
 
Settlement of litigation, net82,533
 2,363
 (840)
(Gain) loss on asset disposition
 (33,457) 4,671
Restructuring costs10,510
 
 
Post-merger integration costs (2)

 15,772
 
Acquisition costs (3)

 10,351
 7,788
Adjustments related to dispositions (4)

 (293) (9,368)
Vendor consideration provided to WPP
 
 48,253
Other (income) expense, net (5)
(4,125) 24
 (9)
Adjusted EBITDA$(18,710) $24,505
 $52,264
Adjusted EBITDA margin(4.6)% 6.2% 21.7%
(1) Amount includes, as of December 31, 2017, $16.9 million related to an accrued stock-based retention program that, in the event of employee departure prior to issuance of Common Stock, will be settled in cash.
(2) Post-merger integration costs consist of third-party costs incurred following our merger with Rentrak and acquisition of the Compete business.
(3) Acquisition costs are largely comprised of third-party costs incurred related to our merger with Rentrak, and acquisitions and related transactions with Compete and WPPoccurred during the years ended 2016 and 2015, respectively.year.
(4) Adjustments related to dispositions consists of costs incurred and adjustments to remove revenue and expenses, and related costs, attributable to DAx and CSWS, which were disposed of during the years ended 2016 and 2015, respectively.
(5) Adjustments to other income, net, include items classified as non-operating other income, net on our consolidated Statements of Operations and Comprehensive Loss, excluding the other income associated with the transition services agreement income for the DAx disposition.
Liquidity and Capital Resources
The following table summarizes our cash flows:flows for each of the periods identified:
 Years Ended December 31,
(In thousands)202220212020
Net cash provided by operating activities$34,937 $9,856 $717 
Net cash used in investing activities(17,822)(14,648)(15,555)
Net cash used in financing activities(18,132)(22,452)(2,096)
Effect of exchange rate changes on cash, cash equivalents and restricted cash(820)(1,218)902 
Net decrease in cash, cash equivalents and restricted cash(1,837)(28,462)(16,032)
  Years Ended December 31,
(In thousands) 2017 2016 2015
Consolidated Statements of Cash Flow Data:      
Net cash (used in) provided by operating activities $(56,405) $(55,912) $59,357
Net cash provided by (used in) investing activities $18,254
 $47,820
 $(16,977)
Net cash (used in) provided by financing activities $(7,518) $(51,329) $63,466
Effect of exchange rate changes on cash $2,453
 $776
 $(1,875)
Net (decrease) increase in cash, cash equivalents and restricted cash $(43,216) $(58,645) $103,971
Overview
Our principal uses of cash historically consistedconsist of cash paid for stock repurchases (including withholding taxes relating to employee equity awards), business acquisitions,data, payroll and other operating expenses, including restructuring-related costs and expenses incurred in prior periods; payments related to investments in equipment, primarily to support our consumer panels and technical infrastructure required to deliver our products and services and support our customer base. Beginning in 2016 and continuing through 2017, we incurred significant professional fees primarily consisting of legal, forensic accounting and related advisory services as a resultcustomers; service of our Audit Committee's investigation, subsequent auditdebt and compliance efforts relatinglease facilities; and dividend payment obligations with respect to the filing of our 2015, 2016 and 2017 Consolidated Financial Statements included in this 10-K.

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Preferred Stock.
As of December 31, 2017,2022, our principal sources of liquidity consisted of cash, and cash equivalents and restricted cash totaling $45.1$20.4 million, including $7.3$0.4 million in restricted cash.cash; cash flows from our operations; and amounts available to us under our Revolving Credit Agreement, as described below.
On June 30, 2022, we made cash dividend payments totaling $15.5 million to the holders of our Preferred Stock, representing dividends accrued for the period from June 30, 2021 through June 29, 2022. The next scheduled dividend payment date for the Preferred Stock is June 30, 2023, and as of December 31, 2022, accrued dividends for the Preferred Stock totaled $7.9 million.
On May 5, 2021, we entered into the Revolving Credit Agreement with Bank of America N.A. The Revolving Credit Agreement provides a borrowing capacity equal to $40.0 million, which was increased from $25.0 million on February 25, 2022. As of December 31, 2022, we had outstanding borrowings of $16.0 million and outstanding letters of credit totaling $3.4 million under the Revolving Credit Agreement, leaving a remaining borrowing capacity of $20.6 million.
Macroeconomic Factors
During 2020 and 2021, the COVID-19 pandemic and related government mandates and restrictions had a significant impact on the media, advertising and entertainment industries in which we operate. The pandemic also had an impact on our business, including with respect to the execution of new and renewal contracts, the impact of closed movie theaters on our customers, customer payment delays and requests to modify contractual payment terms. In response to the COVID-19 pandemic, we took actions in 2020 and 2021 to mitigate the liquidity impact, including freezing hiring, exiting non-critical consultants and contractors, terminating or negotiating reductions in vendor agreements and leases, and reducing certain travel, marketing, recruiting and other corporate activities. Although we cannot quantify the impact that the pandemic may have on our business in the future, we saw positive recovery in 2022, including the reopening of theaters in most markets worldwide. At the same time, however, macroeconomic factors such as inflation, rising interest rates, and supply chain disruptions caused some advertisers to reduce or delay advertising expenditures in the second half of 2022. These declines had a direct impact on demand for our products, particularly those for which we recognize revenue based on impressions used. We expect that softness in the advertising market will continue to affect our business in 2023.
Preferred Stock
On March 10, 2021, we issued 82,527,609 shares of Preferred Stock in exchange for gross cash proceeds of $204.0 million. Net proceeds from the issuance totaled $187.9 millionafter deducting issuance costs. Shares of Preferred Stock are convertible into Common Stock as described in Footnote 5, Convertible Redeemable Preferred Stock and Stockholders' Equity. As of December 31, 2022, each share of Preferred Stock was convertible into 1.038542 shares of Common Stock, with such conversion rate scheduled to return to 1.00 upon payment of accrued dividends on June 30, 2023.
The holders of Preferred Stock are entitled to participate in all dividends declared on the Common Stock on an as-converted basis and are also entitled to a cumulative dividend at the rate of 7.5% per annum, payable annually in arrears and subject to increase under certain specified circumstances. In addition, such holders are entitled to request, and we must take all actions reasonably necessary to pay, a one-time special dividend on the Preferred Stock equal to the highest dividend that our Board of Directors determines can be paid at the applicable time (or a lesser amount agreed by the holders), subject to additional conditions and limitations described in Footnote 5, Convertible Redeemable Preferred Stock and Stockholders' Equity. We may be obligated to obtain debt financing in order to effectuate the special dividend, which could significantly impact our financial position and liquidity depending on the timing and scope of the dividend payment and related financing.
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Moreover, this obligation could lead us to refinance or terminate the Revolving Credit Agreement prior to its maturity, due to its restrictions on our ability to incur additional debt.
The proceeds from the Preferred Stock issuance were used to repay the Notes. In connection with the closing, we also repaid the Secured Term Note and certain transaction-related expenses with cash from our balance sheet. For additional information on the Preferred Stock issuance and related debt extinguishments, refer to Footnote 6, Debt and Footnote 5, Convertible Redeemable Preferred Stock and Stockholders' Equity.
Revolving Credit Agreement
On May 5, 2021, we entered into the Revolving Credit Agreement, which matures on May 5, 2024. The Revolving Credit Agreement provides a borrowing capacity equal to $40.0 million (increased from $25.0 million on February 25, 2022). We may also request the issuance of letters of credit under the Revolving Credit Agreement in an aggregate amount up to $5.0 million, which reduces the amount of available borrowings by the amount of such issued and outstanding letters of credit.
On February 25, 2022, we entered into an amendment to the Revolving Credit Agreement to expand our aggregate borrowing capacity from $25.0 million to $40.0 million. The 2022 amendment also replaced the previous Eurodollar Rate (as defined in the Revolving Credit Agreement) with a SOFR-based interest rate and modified the Applicable Rate definition in the Revolving Credit Agreement to increase the Applicable Rate payable on SOFR-based loans to 2.50%. On February 24, 2023, we entered into an additional amendment to the Revolving Credit Agreement that further increased the Applicable Rate payable on SOFR-based loans to 3.50%.
The amount we are able to borrow under the Revolving Credit Agreement is subject to compliance with the financial covenants, satisfaction of various conditions precedent to borrowing and other provisions of the Revolving Credit Agreement. Notably, the Revolving Credit Agreement (as amended) contains financial covenants that require us to maintain a minimum Consolidated Asset Coverage Ratio and minimum Liquidity through maturity, minimum Consolidated EBITDA for periods through December 31, 2023, and a minimum Consolidated Fixed Charge Coverage Ratio for periods after December 31, 2023 (each term as defined in the Revolving Credit Agreement). As of December 31, 2022, we were in compliance with our covenants under the Revolving Credit Agreement, and based on our current plans, we do not anticipate a breach of these covenants that would result in an event of default under the Revolving Credit Agreement.
As of December 31, 2017, $11.92022, we had outstanding borrowings of $16.0 million and outstanding letters of credit totaling $3.4 million under the Revolving Credit Agreement, leaving a remaining borrowing capacity of $20.6 million. The borrowed funds were used to reduce our $37.9 millionaccounts payable balances, primarily related to expenses incurred in available cashprior periods, and cash equivalents is held by foreign subsidiaries that could be subject to tax withholding payments if repatriated to the U.S., which could range from 5% to 17.5% of the amount repatriated. It is management’s current intention thatsupport our foreign earnings will be indefinitely reinvested back into foreign business operations and will not be repatriated to the U.S.  However,working capital position. While we will continue to monitortake steps to reduce our cash flow needsoutstanding trade payables and re-evaluateimprove our working capital position, on foreign earnings if and when changes in circumstances arise.
Our principal sources of liquidity have historically been our cash and cash equivalents, as well as cash flow generated from our operations. Our recent operating losses, including the significant costs associated with the investigation and completing the audit of our financial statements, resulted in a need to secure long-term financing. In January 2018, we issued senior secured convertible notes as described below to support our anticipated liquidity requirements and provide capital for future investment. We believe that our sources of funding are sufficient to satisfy our currently anticipated requirements for at least the next twelve months. Our liquidity could be negatively affected by a decrease in demand for our products and services or additional lossesif we are unable to generate sufficient cash from operations including ongoing costs relating to compliancesatisfy outstanding payables and litigation.
Restricted cash representsmeet our requirement to collateralize letter of credit and certain capital leaseother financial obligations as well asthey come due. Our liquidity could also be negatively affected if we are unable to repay or refinance our corporate credit card obligations. Asoutstanding borrowings under the Revolving Credit Agreement upon its maturity in 2024.
For additional information on the Revolving Credit Agreement, refer to Footnote 6, Debt.
Sale of December 31, 2017Common Stock and 2016, we had $7.3 million and $4.2 million of restricted cash, respectively.
Credit FacilityWarrants
On September 26, 2013,June 23, 2019, we entered into a CreditSecurities Purchase Agreement (the “Credit Agreement”) with several banks. Bank of America, N.A. was the administrative agent and lead lender of this revolving credit facility. The Credit Agreement provided for a five-year revolving credit facility of $100.0 million, which included a $10.0 million sublimit for issuance of standby letters of credit (subsequently reduced to $3.6 million in September 2017), a $10.0 million sublimit for swing line loans and a $10.0 million sublimit for alternative currency lending. The maturity date of the Credit Agreement was September 26, 2018.  The Credit Agreement also contained an expansion option permitting us to request an increase of the credit facility up to an aggregate additional $50.0 million, subject to certain conditions. Borrowings under the revolving credit facility were to be used towards working capital and other general corporate purposes as well as for the issuance of letters of credit.
Due to our delay in filing periodic reports, we were restricted from borrowing under the Credit Agreement. We entered into various waiver and amendment agreements during the period of non-compliance with our filings. Significant amendments to the Credit Agreement were as follows:
On August 19, 2016, we agreed to pay a fee to the lenders equal to 0.15% of the revolving credit facility commitments. In addition, we agreed to reduce the letter of credit sublimit under the Credit Agreement from $10.0 million to $4.8 million.
On June 30, 2017, we agreed to pay an additional fee to the lenders equal to 0.15% of the revolving credit facility commitments.
On September 29, 2017, the parties agreed to further reduce the revolving commitment amount from $100.0 million to $3.6 million, equal to the amount of outstanding letters of credit. The facility was to expire on the earlier of September 26, 2018 or the date the letter of credit commitments was equal to zero.
As of December 31, 2017, we did not have an outstanding balance under the revolving credit facility. As of December 31, 2017, $3.5 million in letters of credit were outstanding, all of which had been fully cash collateralized by us.
On January 11, 2018, we voluntarily terminated the Credit Agreement and the Security and Pledge Agreement between the Company and Bank of America, N.A. At the time of termination of the Credit Agreement, the $3.5 million in letters of credit remained outstanding; these letters of credit remain outstanding and are cash collateralized.
Issuance and Sale of Senior Secured Convertible Notes
On January 16, 2018, we entered into certain agreements with funds affiliated with or managed by Starboard Value LP (collectively, “Starboard”CVI Investments, Inc. ("CVI"), pursuant to which among other things, we issued and sold to Starboard $150.0CVI for aggregate gross proceeds of $20.0 million in senior secured convertible notes (“Notes”) in exchange for $85.0 million in cash and 2,600,000(i) 2,728,513 shares of Common Stock valued at $65.0 million. We also grantedand (ii) Series A Warrants, Series B-1 Warrants, Series B-2 Warrants and Series C Warrants to Starboard an option (the “Notes Option”) to acquireinitially purchase up to an additional $50.0 million in senior secured convertible notes (the “Option Notes”). In addition, under the agreements, we have the right to conduct a rights offering (the “Rights Offering”), which would be open to all of our stockholders, for up to $150.0 million in senior secured convertible notes (the “Rights Offering Notes”).
The conversion price for the Notes (the “Conversion Price”) is equal to a 30% premium to the volume weighted average trading prices of the Common Stock on each trading day during the ten consecutive trading days commencing on January 16, 2018, subject to a Conversion Price floor of $28.00 per share. In accordance with the foregoing, the Conversion Price was set at $31.29 per share.

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The Notes mature on January 16, 2022 (the “Maturity Date”). Based upon the determination of the Conversion Price, interest on the Notes will accrue at 6.0% per year through January 30, 2019. On each of January 30, 2019, January 30, 2020 and February 1, 2021, the interest rate on the Notes will reset, and interest will thereafter accrue at a minimum of 4.0% per year and a maximum of 12.0% per year, based upon the then-applicable conversion premium in accordance with the terms of the Notes. Interest on the Notes is payable, at the option of the Company, in cash, or, subject to certain conditions, through the issuance by the Company of additional11,654,033 shares of Common Stock (the “PIK Interest Shares”"Private Placement"). Any PIK Interest Shares soOn October 14, 2019, we issued will be valued at the arithmetic average of the volume-weighted average trading prices of the Common Stock on each trading day during the ten consecutive trading days ending immediately preceding the applicable interest payment date.
The Notes Option granted to Starboard is exercisable, in whole or in part, at any time or times through the date that is five business days after we file a registration statement relating to the Rights Offering. Option Notes may be purchased, at the option of Starboard, through the exchange of a combination of cash and2,728,513 shares of Common Stock ownedto CVI upon exercise by Starboard, subject to certain limitations. Any Option Notes purchased pursuantCVI of the Series C Warrants. As a result of this exercise, the number of shares issuable under our Series A Warrants was increased by 2,728,513. On January 29, 2020, the Series B-1 Warrants expired unexercised. On August 3, 2020, the Series B-2 Warrants expired unexercised.
For additional information on the Private Placement and the 2021 adjustment to the Notes Option will haveexercise price of our Series A Warrants in connection with the same terms, including asPreferred Stock issuance (which adjustment could reduce the cash proceeds we receive upon exercise of the Series A Warrants), refer to maturity, interest rate, convertibility,Footnote 5, Convertible Redeemable Preferred Stock and Stockholders' Equity.
Restricted Cash
Restricted cash represents security asdeposits for subleased office space. As of December 31, 2022 and 2021, we had $0.4 million of restricted cash. Repayment of the Notes.
SubjectSecured Term Note in 2021 resulted in the termination of the collateralization requirement thereunder, and no cash was restricted relating to the termsSecured Term Note as of December 31, 2022. We also transferred outstanding letters of credit totaling $3.4 million under the Rights Offering, if undertaken, we will distributeRevolving Credit Agreement, which further reduced our restricted cash balance as this facility does not require letters of credit to all of our stockholders' rights to acquire Rights Offering Notes. Stockholders of the Company who elect to participate in the Rights Offering will be allowed to elect to have up to 30% of the Rights Offering Notes they acquire pursuant thereto delivered through the sale to or exchange with the Company of shares of Common Stock, with the per share value thereof equal to the closing price of the Common Stock on the last trading day immediately prior to the commencement of the Rights Offering. The Rights Offering Notes will be substantially similar to the Notes, except, among other things, with respect to: (i) the date from which interest thereon will begin to accrue and the maturity date thereof (which will be four years from the date of issuance of the Rights Offering Notes) and (ii) the conversion price thereof, which will be equal to 130% of the closing price of the Common Stock on the last trading day immediately prior to the commencement of the Rights Offering (subject to a conversion price floor of $28.00 per share). Starboard also agreed to enter into one or more backstop commitment agreements, pursuant to which they will backstop up to $100.0 million in aggregate principal amount of Rights Offering Notes through the purchase of additional Notes.cash collateralized.
Operating Activities
Our primary source of cash provided by operating activities is revenues generated from sales of our digital audience, advertising, TV and cross-platform and movies measurement, planning and optimization products and services. Our primary uses of cash from operating activities include investments in personnel costs and costs related to data and infrastructure used to develop and maintain our products and services and support the anticipated growth in our business and customers using our products. Beginning in 2016 and continuing into 2018, we have also incurred significant professional fees relating to the Audit Committee's investigation and subsequent audit and compliance efforts and related litigation.services.
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Cash provided by operating activities is calculated by adjusting our net loss for changes in working capital, as well as to excludeby excluding non-cash items such as: depreciation, non-cash operating lease expense, amortization expense of finance leases and intangible assets, provision for bad debts,impairment of right-of-use assets and goodwill, stock-based compensation, deferred tax provision, (benefit), accrued litigation settlements to be settled in Common Stock, non-cash vendor consideration, (gain) loss on asset dispositions, realized gain (loss) on marketable securities, change in the fair value of ourfinancing derivatives, warrants liability and equity investment, gainsecurities, loss on forgivenessextinguishment of obligationsdebt, non-cash interest expense on the Notes, accretion of debt discount, and dispositionsamortization of property and equipment.deferred financing costs.
Net cash used inprovided by operating activities in 20172022 was $56.4$34.9 million compared to net cash used of $55.9$9.9 million in 2016.2021. The increase in cash usedprovided by operating activities was primarily reflective of higher revenues, shorter billing cycles, and improved cash collections during 2022 as compared to 2021. These increases were partially offset by payments of $4.6 million related to our organizational restructuring during 2022.
Net cash provided by operating activities in 2021 was $9.9 million compared to $0.7 million in 2020. The increase in cash provided by operating activities was primarily attributable to an increasea decrease in the cash interest paid on the Notes in 2021 of $21.4 million compared to 2020 (interest of $10.8 million on the Notes was paid in shares of Common Stock in 2021). Offsetting the reduction in cash interest paid was a net loss of $164.2 million, partially offset by an increase in changesdecrease in operating assets and liabilities of $72.1$23.8 million and a decrease of $91.7 million in non-cash expenditures in 2017 asfor 2021 compared to 2016.$20.3 million for 2020. The increase in our net loss and the changedecrease in operating assets and liabilities was primarily attributabledue to the significant increasedecreases in our accounts payable and accrued expensesexpense balances in 2021 as we paid invoices related to our investigation and audit as well as the accrual associated with the proposed settlement of the federal securities class action litigation. The 2017 increaseexpenses incurred in non-cash expenditures was largely attributable to the accrual of certain litigation settlements to be settled in Common Stock and was partially offset by a decrease in stock-based compensation expense as a result of the 2016 acceleration of equity awards held by certain Rentrak executives upon consummation of the merger, and as a result of the 2016 gain on asset dispositions of $33.5 million.
Net cash used in operating activities in 2016 was $55.9 million compared to net cash provided by of $59.4 million in 2015. The change in cash used in (provided by) operating activities for 2016 was primarily related to an increase in the net loss by $39.0 million, a net increase of $65.6 million in the non-cash expenditures, and net changes in operating assets and liabilities that resulted in a $10.7 million increase in cash used in operating activities in 2016. The net increase in non-cash expenditures was largely attributable to non-cash vendor consideration and a $26.1 million increase in amortization of intangibles in 2016, attributable to the definite-lived intangible assets acquired as part of the acquisitions of Rentrak and the Compete assets during 2016, partially offset by a net change of $38.1 million in the net gain on asset disposition, a net change of $3.9 million in net deferred tax benefits and a $0.5 million decrease in stock-based compensation expense.

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prior periods.
Investing Activities
Cash provided by or used in investing activities primarily consists of payments related to the acquisition or disposition of companies or assets and, to a lesser degree,capitalized internal-use software costs, purchases of computer and network equipment to support our technical infrastructure, maintenance of our databases and furniture and equipment to support our operations.equipment. The extent of these investments will be affected by our ability to expand relationships with existing customers, grow our customer base and introduce new digital formats.formats, as well as constraints on cash expenditures due to our financial position and the current economic environment.
Net cash provided byused in investing activities for 2017in 2022 was $18.3$17.8 million compared to net$14.6 million in 2021. The increase in cash provided byused in investing activities was primarily due to an increase in cash paid for capitalized internally developed software offset by cash acquired from our 2021 acquisition of $47.8Shareablee.
Net cash used in investing activities in 2021 was $14.6 million for 2016. Thiscompared to $15.6 million in 2020. The decrease in cash provided byused in investing activities was largely attributableprimarily due to $37.1 million acquired in 2016 as result of our merger with Rentrak, and $43.0 million in net cash received as part of the Shareablee acquisition in 2021.
Financing Activities
Net cash used in financing activities in 2022 was $18.1 million compared to $22.5 million in 2021. The decrease in cash used for financing activities was primarily due to repayment of the Notes and the Secured Term Note in 2021, which outflows were partially offset by cash proceeds received from the dispositionissuance of the DAx assets, offset by $27.3 millionPreferred Stock (net of net cash used to acquire certain assets of Competerelated transaction costs) in 2016.the same year. These decreases were partially offset by $26.2a net increase of $10.8 million in cash dividends paid to holders of cash provided by the sale of marketable securities during 2017.Preferred Stock in 2022, reflecting a full annual dividend period, as compared to 2021, which included only a partial dividend period.
Net cash provided by investingused in financing activities in 20162021 was $47.8$22.5 million compared to net cash used$2.1 million in investing activities of $17.0 million for 2015. This2020. The increase in cash provided by investing activities was largely attributable to $37.1 million acquired in 2016 as a result of our merger with Rentrak, and $43.0 million in net cash received from the disposition of the DAx business and $2.2 million of cash provided by the sale of marketable securities during 2016. These increases were offset by $27.3 million of cash used to acquire certain assets of Compete and an increase in purchases of property and equipment to maintain and expand our technical infrastructure.
Financing Activities
We used $7.5 million of cash in financing activities during 2017 compared to $51.3 million during 2016. The decrease in cash used was largely attributable to a $27.3 million reduction in cash used to repurchase shares under our share repurchase program, which was suspended indefinitely in March 2016 after the Audit Committee's investigation had commenced. We also used $16.8 million less in cash for shares repurchased pursuant to the exercise by stock incentive plan participants of their right to use shares of Common Stock to satisfy their tax withholding obligations. In addition, we received $4.1 million less in proceeds from the exercise of employee stock options and we used $1.8 million less in cash to make principal payments on capital lease obligations. These decreases were partially offset by the receipt of $2.1 million more in proceeds from the minimum commitment agreements with WPP during 2017 compared to 2016.
Cash used in financing activities was $51.3 million during 2016 comparedprimarily due to cash provided by financing activitiesthe repayment of $63.5 million for 2015. The decrease in cash used was largely attributable to $200.8the Notes and the Secured Term Note and payment of $4.8 million in cash received from shares we issueddividends to WPP, netthe holders of equity issuance costs incurred of $3.9 million, during the year ended 2015. In addition, during 2016 we received $7.5 million lessPreferred Stock in proceeds from the exercise of our stock options, we used $9.9 million less2021. These increases in cash for shares repurchased pursuant to the exercise by stock incentive plan participants of their right to use shares of Common Stock to satisfy their tax withholding obligations and we received $5.5 million more in proceeds from the minimum commitment agreements. These changesused were partially offset by a decreasecash proceeds of $78.6$204.0 million from the issuance of the Preferred Stock (net of $16.1 million in related transaction costs) and cash used to repurchase sharesproceeds of $16.0 million from borrowing under our share repurchase program during 2016 compared to 2015 and a $2.2 million increase in cash used for payments on our capital lease obligations.the Revolving Credit Agreement.
Contractual Payment Obligations
The information set forth below summarizes ourWe have certain long-term contractual obligations as of December 31, 2017arrangements that arehave fixed and determinable.determinable payment obligations including unconditional purchase obligations with MVPDs and connected (Smart) TV data providers, operating and financing leases, and data storage and bandwidth arrangements.
(In thousands) Total 
Less Than
1 Year
 1-3 Years 
3-5
Years
 More
Than 5
Years
Operating lease obligations $79,857
 $15,190
 $27,108
 $21,265
 $16,294
Capital lease obligations 8,603
 6,525
 2,032
 36
 10
Software license arrangements 5,001
 3,158
 1,843
 
 
Long-term debt obligations (1)
 
 
 
 
 
Unconditional purchase obligations 77,157
 19,330
 49,405
 8,422
 
Other purchase obligations 22,412
 7,706
 14,706
 
 
Total $193,030
 $51,909
 $95,094
 $29,723
 $16,304
(1) On January 11, 2018, we voluntarily terminated the Credit Agreement and the Security and Pledge Agreement between us and BankWe have data licensing agreements with a number of America N.A., as administrative agent,MVPDs and other lenders. We did notproviders for set-top box and connected TV data. These agreements have accessremaining terms from one to other borrowings under the Credit Agreement at the time of termination. Refer to Footnote 20, Subsequent Events, for details of the new financing arrangements with Starboard in January 2018.
eight years. As of December 31, 2017, we had non-current deferred tax liabilities of $3.62022, the total fixed payment obligations related to set-top box and connected TV data agreements are $299.7 million and gross unrecognized tax benefits$8.3 million, respectively. In addition, we expect to make variable payments related to a set-top box data agreement totaling an estimated $8.8 million by the end of $2.5 million, including $0.3 million of interest and penalties classified as other long-term liabilities on our Consolidated Balance Sheets.

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2023.
We are unablehave both operating and financing leases related to make a reasonable estimate of the timing of payments in individual years in connection with these tax liabilities; therefore, such amounts are not included in the above contractual payment obligations table.
Our principal lease commitments consist of obligations under leases forcorporate office space computer and telecommunications equipment and software agreements. We financed the purchase of some of our computer equipment under capital lease arrangements over a period of 36equipment. Our leases have remaining terms from one to 42 months.
Other unconditional purchase obligations are comprised of commitments associated with network operators. Other purchase obligations are primarily comprised of commitments associated with vendors to perform operational aspects of panel recruitment, compliance, inventory management, support and collection of panel demographic data.
five years. As of December 31, 2017, $3.5 million in letters2022, the total fixed payment obligation related to these agreements is $50.0 million.
We have an agreement for cloud-based data storage and bandwidth to help process and store our data. The remaining term for this agreement is one year. As of credit were outstanding underDecember 31, 2022, the Credit Agreement. These letters of credit may be reduced periodically, provided we meet the conditional criteria of eachtotal fixed payment obligation related lease agreement.to this agreement is $9.6 million.
Future Capital Requirements
Our ability to generate cash is subject to our performance, general economic conditions, industry trends and other factors, including the timing of cash collections from our customers, data costs and other trade payables, service of our debt and lease facilities and dividend payment obligations, and expenses from ongoing compliance efforts and related to various litigation.legal matters. To the extent that our existing cash, cash equivalents short-term investments, and
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operating cash flow, together with savings from repayment of the Notes and the proceeds from the 2018 issuanceSecured Term Note and sale of senior secured convertible notescost-reduction initiatives undertaken by our management, are insufficient to fund our future activities and requirements, we may need to raise additional funds through public or private equity or debt financing. We may also be required to raise additional funds in order to repay our Revolving Credit Agreement upon maturity or pay a special dividend to holders of our Preferred Stock, as described above. Our history of net losses, as well as disruption and volatility in global capital and credit markets, could impact our ability to access capital resources on terms acceptable to us or at all. If we issue additional equity securities in order to raise additional funds, pay dividends or for other purposes, further dilution to existing stockholders may occur. The delayed filing of our periodic reports with the SEC may impair our ability to obtain additional financing and access the capital markets. As a result of our delayed filings, we will not be eligible to register the offer and sale of our securities using a registration statement on Form S-3 until we have timely filed all periodic reports required under the Exchange Act for twelve months.
As described in Footnote 11, Commitments and Contingencies, of the Notes to Consolidated Financial Statements on September 10, 2017, we, along with all derivative plaintiffs and named individual defendants, reached a proposed settlement of the federal securities class action litigation, subject to court approval, pursuant to the terms of which the settlement class will receive a total of $27.2 million in cash and $82.8 million in our Common Stock to be issued and contributed by us to a settlement fund to resolve all claims asserted against us. All of the $27.2 million in cash would be funded by our insurers. We have the option to fund all or a portion of the $82.8 million with cash in lieu of our Common Stock. The proposed settlement further provides that comScore denies all claims of wrongdoing or liability. On December 28, 2017, the parties entered into a Stipulation and Agreement of Settlement to be filed in the United States District Court for the Southern District of New York. The plaintiffs filed a motion for preliminary approval of the settlement on January 12, 2018 and following a hearing on that motion, the Court entered an order preliminarily approving the settlement on January 29, 2018. The settlement remains subject to final approval by the Court, which is expected to occur in mid-2018. As of December 31, 2017, we have reserved $110.0 million in accrued litigation settlements for the gross settlement amount, and recorded $27.2 million in insurance recoverable on litigation settlements for the insurance proceeds expected from our insurers.
Pending Equity Awards
Due to our inability to file periodic reports with the SEC, we have been unable to use our registration statement on Form S-8 to grant equity awards to directors and employees, including executive officers, since February 2016. Further, in March 2017, the 2007 Equity Incentive Plan's ten-year term expired. We expect to propose a new equity incentive plan for adoption at our next annual meeting of stockholders, and to grant equity awards once that plan is adopted. As of December 31, 2017, in accordance with our compensation program for all employees and directors, we anticipate making equity awards having an aggregate value of $42.9 million, of which $16.9 million was accrued. These awards were recommended for employees and directors in 2016 and 2017 but were not granted as of December 31, 2017. Based on the closing bid price of our Common Stock on the OTC Pink Tier on March 15, 2018, $26.29 per share, we would expect to award approximately 1,633,146 shares in connection with the equity awards known as of December 31, 2017. In addition, we expect to issue additional equity awards for 2017 service or otherwise. The actual number of shares issued will be based upon the prevailing trading price of our Common Stock at the time the shares are actually issued.
Recent Accounting Pronouncements
Recent accounting pronouncements are detailed in Footnote 2, Summary of Significant Accounting Policies, of the Notes to Consolidated Financial Statements.
Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements (as defined in Item 303 of Regulation S-K) other than operating lease obligations and other purchase obligations.

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Critical Accounting Policies and Estimates
Our discussion and analysis of our financial condition and results of operations are based on our Consolidated Financial Statements, which have been prepared in accordance with generally accepted accounting principles in the U.S. ("GAAP"). The preparation of these financial statements requires us to make estimates, assumptions and judgments that affect the amounts reported in our Consolidated Financial Statements and the accompanying Notes to Consolidated Financial Statements. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ from these estimates.
While our significantThe accounting policiesestimates and assumptions discussed in this section are described in more detail in the Notes to Consolidated Financial Statements included in Item 8 of this 10-K,those that we believe the following accounting policiesconsider to be the most critical to thean understanding of our financial condition and results of operations because they involve significant judgments and estimates useduncertainties. Actual results in the preparationthese areas could differ from management's estimates. Refer to Footnote 2, Summary of Significant Accounting Policies for further information on our Consolidated Financial Statements.most significant accounting policies.
Revenue Recognition
We recognize revenues whenrevenue under the following criteria are met: (i) persuasive evidencecore principle of depicting the transfer of promised goods and services to our customers in an arrangement exists, (ii) delivery has occurred oramount that reflects the services have been rendered, (iii)consideration to which we expect to be entitled. Significant judgments used in the fee is fixed or determinable, and (iv) collectiondetermination of the resulting receivable is reasonably assured.
We generate revenues from delivery of subscription-based access to our online database or by delivering information obtained from the database, usually in the form of periodic custom reports. Subscription based revenues are typically recognized on a straight-line basis over the data delivery period, which generally ranges from three to twenty-four months. We recognize revenue net of sales taxes remitted to government authorities.
Revenues are also generated through survey services under contracts ranging in term from two months to one year. Survey services consist of survey design with subsequent data collection, analysisamount and reporting. At the outset of an arrangement, total arrangement consideration is allocated between the development of the survey and subsequent data collection, analysis and reporting services based on relative selling price. Revenue allocated to the survey is recognized when it is approved by the customer and revenue allocated to the data collection, analysis and reporting services is recognized on a straight-line basis over the estimated data collection and reporting period once the survey has been delivered. Any change in the estimated data collection and reporting period results in an adjustment to revenues recognized in future periods.
Certaintiming of our arrangements contain multiple elements, consistingrevenue recognition include the identification of distinct performance obligations and the various services we offer. Multiple element arrangements typically consistallocation of either subscriptions to multiple online products or a subscription to our online database combined with customized services. We allocate arrangementcontract consideration at the inception of an arrangement to all deliverables, if they represent a separate unit of accounting,among individual performance obligations based on their relative selling prices. A deliverable qualifies as a separate unit of accounting when the delivered element has stand-alone value to the customer. The guidance establishes a hierarchy to determine thestandalone selling price to be used for allocating arrangement consideration to deliverables: (i) vendor-specific objective evidence("SSP").
Performance obligations are identified by evaluating whether the promised goods and services are capable of fair value (“VSOE”), (ii) third-party evidence of selling price (“TPE”) if VSOE is not available, or (iii)being distinct and distinct within the vendor's BESP if neither VSOE nor TPE are available. VSOE generally exists only when we sell the deliverable separately and is the price charged by us for that deliverable on a stand-alone basis. BESP reflects our estimate of what the selling price of a deliverable would be if it were sold regularly on a stand-alone basis.
We generally do not have VSOE for its arrangements, and TPE is generally not available because our service offerings are highly differentiated and we are unable to obtain reliable information on the products and pricing practices of our competitors. As such, BESP is generally used to allocate the total arrangement consideration at the arrangement inception based on each element’s relative selling price.
Our process for determining BESP involves judgment based on multiple factors that may vary depending upon the unique facts and circumstances related to each product suite and deliverable. We determine BESP by considering external and internal factors including, but not limited to, current pricing practices, pricing concentrations such as industry, channel, customer class or geography, internal costs and market penetration of a product or service. The total arrangement consideration is allocated to eachcontext of the elements based on the relative selling price. If the BESP is determined as a range of selling prices, the mid-point of the range is used in the relative selling price method. Once the total arrangement consideration has been allocated to each deliverable based on the relative allocation of the arrangement fee, we commence revenue recognition for each deliverable on a stand-alone basis as the data or service is delivered. BESP is analyzed on an annual basis or more frequently if deemed likely that changes in the estimated selling pricescontract. We have occurred.
For contracts that include variable revenue amounts, the related portion of variable revenue is deferred until the amounts are fixed or determinable and we are reasonably assured that the amounts due are collectible.
Generally, contracts are non-refundable and non-cancellable. In the event a portion of a contract is refundable, revenue recognition is delayed until the refund provisions lapse. Some customers have the right to cancel their contracts by providing a written notice of cancellation. If a customer cancels its contract, the customer is generally not entitled to a refund for prior services.

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Advance payments are recorded as deferred revenue until services are delivered or obligations are met and revenue is earned. Deferred revenue represents the excess of amounts invoiced over amounts recognized as revenues. Deferred revenue to be recognized in the succeeding twelve-month period is classified as current deferred revenue and the remaining amounts are classified as non-current deferred revenue.
We may enter into multiple contracts with a single counterparty. We determine if the contracts were contemporaneous in nature and may determine, from time-to-time, that two or more contracts should be combined and accounted for as a single arrangement.
The determination of whether revenue should be reported on a gross or net basis is based on an assessment of whether we act as a principal or an agent in the transaction. In certain cases, we are considered the agent, and we record revenue equal to the net amount retained when the fee is earned. In these cases, costs incurred with third-party suppliers are excluded from our cost of revenues. We assess whether it or the third-party supplier is the primary obligor and evaluate the terms of our customer arrangements as part of this assessment. In addition, we consider other key indicators such as latitude in establishing price, inventory risk, nature of services performed, discretion in supplier selection and credit risk.
We enter a limited number of monetary contracts with MVPDs that involve both the purchase and sale of services with a single counterparty. We assess eachEach contract as it is executed,assessed to determine if the revenuegoods and expense should be provided grossservices exchanged between the two parties represent distinct performance obligations which can entail significant judgment. The conclusion regarding whether goods and services exchanged are distinct determines whether consideration received from the counterparty is recognized as revenues (up to the SSP of the distinct goods or net. We currently present expenses for these contracts net of subscription feesservices), or as cost of revenues in the Consolidated Statements of Operations and Comprehensive Loss.
Goodwill and Intangible Assets
Goodwill represents the excess ofa reduction to the purchase price of the goods or services recorded in our cost of revenues.
The transaction price is allocated to each performance obligation based on its relative SSP. In most sales contracts, we bundle multiple products and very few are sold on a standalone basis. As a result, our SSP is not directly observable and we have to develop internal estimates using information that is reasonably available to us. Our SSP is primarily developed using an adjusted market approach supported by rate cards and pricing calculators that are periodically reviewed and updated to reflect the best available information. Bundled arrangements may include a combination of distinct goods and services where some are satisfied over time and others are satisfied at a point in time. Changes to the fair valueSSP will impact the amount of identifiable assets acquiredconsideration allocated to each performance obligation, which could have an impact on the timing and liabilities assumed when a businessamount of revenues recognized in future periods as our performance obligations are satisfied. The determination of SSP also impacts the amount of revenues we can recognize in transactions where consideration is acquired. exchanged with counterparties as described above.
Goodwill
The valuation of intangible assets and goodwill involves the use of management’smanagement's estimates and assumptions and can have a significant impact on future operating results. We initially record our intangible assets at fair value. Intangible assets with finite lives are amortized over their estimated useful lives while goodwillGoodwill is not amortized but is evaluated for impairment at least annually, as of October 1, by comparing the fair value of a reporting unit to its carrying value including goodwill recorded by the reporting unit.
We have one reporting unit. As such, we perform the impairment assessment for goodwill at the enterprise level. Goodwill is reviewed for possible impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below itsthe carrying value. We initially assess qualitative factors to determine if it is necessary to performIn assessing the two-step goodwill impairment review. We review the goodwill for impairment using the two-step process if, based onpossibility that our assessment of the qualitative factors, we determine that it is more likely than not that thereporting unit's fair value of its reporting unit is less thanhas been reduced below its carrying value due to the occurrence of events or circumstances between annual impairment testing dates, we decideconsider all available evidence including, but not limited to: (i) the results of our impairment testing from the most recent testing date (in particular, the magnitude of the excess of fair value over carrying value observed), (ii) downward revisions to bypassinternal forecasts, if any, (iii) declines in market capitalization below book value (and the qualitative assessment. magnitude and duration of those declines), if any, and (iv) changes in general industry, market and macroeconomic conditions.
We reviewdetermine the carryingfair value of our reporting unit utilizingusing a combination of the income and market approaches. The results from each of these approaches are weighted appropriately taking into account the relevance and availability of data at the time we perform the valuation.
Under the income approach, the fair value is determined using a discounted cash flow model based on projected financial performance and wherediscount rates that take into account an appropriate a market value approach is also utilized to supplement therisk-adjusted return. The discounted cash flow model. We make assumptions regarding estimated future cash flows, discount rates, long-term growth rates and market values to determine the estimated fair value of its reporting unit.
A discounted cash flow analysismodel requires the use of various assumptions including, expectations of future cash flows, growth rates, tax rates, and discount rates in developing the present value of projected cash flows. Theflows, the following assumptionsof which are significant to our discounted cash flow analysis:
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Projected Financial Performance: financial performance: expected future cash flows and growth rates are based upon assumptions for the Company’sof our future revenue growth and operating costs. Actual results of operations and cash flows will likely differ from those utilized in our discounted cash flow analysis, and it is possible that those differences could be material. We monitor for events and circumstances that could negatively impact the key assumptions in determining fair value, including long-term revenue growth projections, profitability, discount rates, volatility in our market capitalization, general industry, micro and macro-economic conditions.
Long-term growth rate: rate: the long-term growth rate represents the rate at which our single reporting unit’sunit's earnings are expected to grow or losses to decrease. Our assumed long-term growth rate was based on projected long-term inflation and gross domestic product growth estimates for the countries in which we operate and a long-term growth estimate for our business and the industry in which we operate. The long-term growth rate utilized inselected for the 2017 analysis2022, 2021 and 2020 annual impairment analyses was 3.0%.
Discount rate: rate: our reporting unit’sunit's future cash flows are discounted at a rate that is consistent with our average weighted average cost of capital that is likely to be utilized by markedmarket participants. The weighted-average cost of capital is our estimate of the overall returns required by both debt and equity investors, weighted by their respective contributions of capital. We use discount rates that are commensurate with the risks and uncertainty inherent in our business and in our internally-developed forecasts. The discount rates selected for the 2022, 2021 and 2020 annual impairment analyses were 27.0%, 19.0% and 13.5%, respectively. Our selected discount rate utilizedwas higher in our 2017 analysis2022 primarily due to the increase in risk-free interest rates, cost of debt, unlevered beta assumptions, and company-specific risk premium ("CSRP"). The increase in CSRP was 10.5%.related to the utilization of higher growth rates in earnings before interest, taxes, depreciation, and amortization.
In addition,Under the market approach, the fair value is determined using certain financial metrics of publicly traded companies or historically completed transactions of comparable businesses. The selection of comparable businesses requires judgment and is based on the markets in which we operate giving consideration to, amongst other things, risk profiles, size and geography. The market approach may also usebe limited in instances where there is a market-based approachlack of recently executed transactions of comparable businesses. We determine fair value primarily based on selected market multiples based on current and projected revenues compared to estimatebusiness enterprise value, with an estimated control premium as applicable.
As of September 30, 2022, we concluded that it was more likely than not that the estimated fair value of our reporting unit. Theunit was less than its carrying value. In our assessment, we considered the decline in our stock price and market value is estimatedcapitalization among other factors. We performed a quantitative goodwill impairment test in conjunction with the annual test using a discounted cash flow model, supported by comparing it to publicly-traded companies and/or to publicly-disclosed business mergersa market approach. Our reporting unit did not pass the goodwill impairment test, and acquisitions in similar lines of business. The value of the business entity is based on pricing multiples of certain financial parameters observed in the comparable companies.

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as a result we recorded a $46.3 million non-cash impairment charge.
Goodwill allocated to our single reporting unit as of December 31, 20172022 was $642.4 million.$388.0 million, including $19.2 million initially attributable to our acquisition of Shareablee in 2021. The results of the October 1, 2017 annual impairment test resultedprojected long-term cash flows used in theour fair value estimate are consistent with our reporting unit exceedingmost recent operating plan and are dependent on the carrying value by 35%. successful execution of our business plan, overall industry growth rates and the competitive environment.
We monitor for events and circumstances that could negatively impact the key assumptions in determining the fair value of our goodwill, including long-term revenue growth projections, profitability, discount rates, volatility in our market capitalization, and general industry, market and macro-economicmacroeconomic conditions. It is possible that future changes in such circumstances, or in the variables associated with theThe judgments assumptions and estimates useddescribed above could change in assessingfuture periods. If the reporting unit's future performance falls below our expectations, or if there are negative revisions to our fair value of the reporting unit, would require usassumptions, including those that are significant and discussed above, we may need to record a material, non-cash goodwill impairment charge.
Impairment of Long-Lived Assets
Our long-lived assets primarily consist of property and equipment and intangible assets. We evaluate our long-lived assets for impairment whenever events or changescharge in circumstances indicate the carrying value of such assets may not be recoverable. Conditions that would necessitate an impairment assessment include a significant decrease in the market price of a long-lived asset, a significant adverse change in the extent or manner in which a long-lived asset is being used or in its physical condition, a significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset, including an adverse action or assessment by a regulator, an accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset, a current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset or a current expectation that, more likely than not, a long-lived asset will be sold or otherwise disposed of before the end of its previously estimated useful life.
If an indication of impairment is present, we compare the estimated undiscounted future cash flows to be generated by the asset group to its carrying amount. Recoverability measurement and estimation of undiscounted cash flows are grouped at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. If the undiscounted future cash flows are less than the carrying amount of the asset group, we record an impairment loss equal to the excess of the asset group’s carrying amount over its fair value. The fair value is determined based on valuation techniques such as a comparison to fair values of similar assets or using a discounted cash flow analysis. Although we believe that the carrying values of its long-lived assets are appropriately stated, changes in strategy or market conditions, significant technological developments or significant changes in legal or regulatory factors could significantly impact these judgments and require adjustments to recorded asset balances. There were no impairment charges recognized during the years ended 2017, 2016 or 2015.
Stock-Based Compensation
We estimate the fair value of stock-based awards on the date of grant. The fair value of stock options with only service conditions is determined using the Black-Scholes option-pricing model.
No stock options were granted during the years ended December 31, 2017, 2016 and 2015.
The following are the assumptions used in valuing the options that were assumed in the Rentrak merger during the year ended 2016:
Dividend yield0.00%
Expected volatility41.18%-44.51%
Risk-free interest rate0.54%-0.63%
Expected life of options (in years)1.37
-1.87
Dividend yield — We have never declared or paid a cash dividend on our Common Stock and have no plans to pay cash dividends in the foreseeable future.
Expected volatility — Volatility is a measure of the amount by which a financial variable such as a share price has fluctuated (historical volatility) or is expected to fluctuate (expected volatility) during a period. We considered the historical volatility of our stock price over a term similar to the expected life of the options in determining expected volatility.
Risk-free interest rate — We used rates on the grant date of zero-coupon government bonds with maturities over periods covering the term of the awards, converted to continuously compounded forward rates.
Expected life of the options — This is the period of time that the options granted are expected to remain outstanding.
The fair value of restricted stock units and restricted stock awards is based on the closing price of our Common Stock on the date of grant. We then amortize the fair value of awards expected to vest on a ratable straight-line basis over the requisite service periods of the awards, which is generally the period from the grant date to the end of the vesting period. The determination of the fair value of our stock option awards is based on a variety of factors including, but not limited to, our Common Stock price, risk free rate, expected stock price volatility over the expected life of awards, and actual and projected exercise behavior. Additionally, we have estimated forfeitures for stock-based awards at the dates of grant based on historical experience and adjusted for future

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expectation. We perform a review of the forfeiture rate assumption at least annually or as deemed necessary if there are changes that could potentially significantly impact the future rate of forfeiture of its stock-based awards. The forfeiture estimate is revised as necessary if actual forfeitures differ from these estimates.
We issue restricted stock awards with restrictions that lapse upon the passage of time (service vesting), achieving performance targets, or some combination. For those restricted stock awards with only service vesting, we recognize compensation cost on a straight-line basis over the service period. For awards with performance conditions only, or both performance and service conditions, we start recognizing compensation cost over the remaining service period, when it is probable the performance condition will be met. Stock awards that contain performance vesting conditions are excluded from diluted earnings per share computations until the contingency is met as of the end of that reporting period.
Due to our inability to file our periodic reports with the SEC, we have been unable to use our registration statement on Form S-8 to grant equity awards to directors and employees, including executive officers, since February 2016. For a discussion of our pending or otherwise contemplated equity awards, refer to the section "Pending Equity Awards" above. The pending or contemplated equity awards have vesting terms ranging from immediate vesting at time of grant to four-year vesting terms. The expected to vest fair value of the unvested equity awards at the grant date will amortize ratably on a straight-line basis over the requisite service period of the awards, the period from the grant date to the end of the vesting period.
Income Taxes
Income taxes are accounted for using the asset and liability method. Deferred income taxes are provided for temporary differences in recognizing certain income, expense and credit items for financial reporting purposes and tax reporting purposes. Such deferred income taxes primarily relate to the difference between the tax bases of assets and liabilities and their financial reporting amounts. Deferred tax assets and liabilities are measured by applying enacted statutory tax rates applicable to the future years in which deferred tax assets or liabilities are expected to be settled or realized. ASU 2016-09, Compensation - Stock Compensation (Topic 718), contains several amendments that simplify the accounting for employee share-based payment transactions, including the accounting for income taxes. The new standard eliminates the accounting recognition for excess tax benefits in additional paid-in capital and the recognition of tax deficiencies either as an offset to accumulated excess tax benefits in Additional Paid-In Capital or in the income tax provision. For tax benefits that were not previously recognized because the related tax deduction had not reduced taxes payable, a cumulative-effect adjustment must be recorded in retained earnings as of the beginning of the year of adoption, net of any valuation allowance required on the deferred tax asset created by the transition guidance. We adopted ASU 2016-09 in the first quarter of 2016 and have applied the modified retrospective transition approach. Early adoption of the new standard resulted in an adjustment as of January 1, 2016 to accumulated stockholders' deficit of $0.3 million related to the tax benefits of a foreign subsidiary. Beginning in 2016, all excess tax benefits and tax deficiencies are recognized in the income tax provision in the period in which they occur.
We record a valuation allowance when we determine, based on available positive and negative evidence, that it is more-likely-than-not that some portion or all of our deferred tax assets will not be realized. We determine the realizability of our deferred tax assets primarily based on the reversal of existing taxable temporary differences and projections of future taxable income (exclusive of reversing temporary differences and carryforwards). In evaluating such projections, we consider our history of profitability, the competitive environment, and general economic conditions. In addition, we consider the time frame over which it would take to utilize the deferred tax assets prior to their expiration.
For certain tax positions, we use a more-likely-than-not threshold based on the technical merits of the tax position taken. Tax positions that meet the more-likely-than-not recognition threshold are measured at the largest amount of tax benefits determined on a cumulative probability basis, which are more-likely-than-not to be realized upon ultimate settlement in the financial statements. Our policy is to recognize interest and penalties related to income tax matters in income tax expense. 
On December 22, 2017, the TCJA was signed into law. The TCJA made substantial changes to U.S. tax law, including a reduction in the corporate tax rate from 35% to 21%, a limitation on deductibility of interest expense, a limitation on the use of net operating losses to offset future taxable income, the allowance of immediate expensing of capital expenditures, deemed repatriation of foreign earnings through a transition tax and significant changes to the taxation of foreign earnings going forward. While these provisions are not effective until January 1, 2018 and beyond, we are required to recognize the effect of certain legislative changes, such as a change in tax rates, in the period the change is enacted.
In December 2017, the SEC staff issued Staff Accounting Bulletin ("SAB") 118, which provides guidance on how to appropriately report significant legislative changes in financial statements when the accounting for the changes has not been completed. The guidance allows companies to report a provisional amount based on a reasonable estimate of the impact in their financial statements that can be adjusted during a one-year measurement period, similar to the accounting for business combinations.
As of December 31, 2017, we consider accounting to be complete for the reduction in the U.S. corporate income tax rate, which resulted in an income tax benefit of $3.6 million for the re-measurement of our deferred tax liabilities associated with tax deductible goodwill and other indefinite-lived liabilities that are deemed to reverse at the lower tax rate. Absent these deferred tax liabilities,

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we are in a net U.S. deferred tax asset position that is offset by a full valuation allowance. The amount of valuation allowance required against our U.S. deferred tax assets also changed as a result of certain provisions in the TCJA, for which an income tax benefit of $4.7 million has been recorded. We consider the accounting to be complete for this change as well.
The TCJA includes a one-time mandatory repatriation transition tax on the net accumulated earnings and profits of a U.S. taxpayer’s foreign subsidiaries. We have performed an earnings and profits analysis and have determined that there will be no income tax effect in the current period. As such, the preliminary accounting for this matter is generally complete.
The other significant provisions are not yet effective but may impact income taxes in future years. These include: an exemption from U.S. tax on dividends of future foreign earnings, a limitation on the current deductibility of net interest expense in excess of 30% of adjusted taxable income, a limitation of net operating losses generated after 2018 to 80% of taxable income, an incremental tax (base erosion anti-abuse tax or “BEAT”) on excessive amounts paid to foreign related parties, and a minimum tax on certain foreign earnings in excess of 10% of the foreign subsidiaries tangible assets (global intangible low-taxed income or “GILTI”). We are still reviewing and assessing these provisions and their potential impact on our financial results.

ITEM 7A.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Market risk represents the risk of loss that may impact our financial position due to adverse changes in financial market prices and rates. As of December 31, 2022, we have outstanding warrants that are subject to market risk. We do not hold or issue financial instrumentsalso have interest rate risk for trading purposes or have any derivative financial instruments. To date, most payments madeamounts outstanding under our contracts are denominated in U.S. dollarsRevolving Credit Agreement, and we have not experienced material gains or losses as a result of transactions denominated in foreign currencies.currency exchange rate risk from our global operations.
Interest rate risk
As of December 31, 2017,2022, our cash reserves were maintainedborrowings, including letters of credit, under the Revolving Credit Agreement bore interest at a variable rate per annum equal to the Daily SOFR (as defined in bank depositthe Revolving Credit Agreement) plus an applicable rate of 2.50%. On February 24, 2023, our interest rate increased to a variable rate per annum equal to the Daily SOFR plus an applicable rate of 3.50%.
As a result, we are subject to interest rate risk based on the Daily SOFR, and money market accounts totaling $37.9 million. The cash is held for working capital purposes.our interest obligation on outstanding borrowings will fluctuate with movements in the Daily SOFR. We also maintained $7.3are permitted to repay any amounts borrowed under the Revolving Credit Agreement prior to the maturity date without any premium or penalty other than customary breakage costs.
As of December 31, 2022, our exposure to interest rate risk calculated using the Daily SOFR was not material.
Warrants liability financial instrument risk
As a result of having $0.7 million in restricted cash thatliability related to outstanding warrants as of December 31, 2022, which warrants are exercisable for shares of Common Stock under certain conditions, we are subject to market risk. The value of the warrants is requiredimpacted by changes in the market price of our Common Stock.
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As of December 31, 2022, a 10% increase in the market price of our Common Stock would result in a $0.2 million increase in the fair value of the Series A Warrants, while a 10% decrease in the market price of our Common Stock would result in a $0.2 million decrease in fair value of the Series A Warrants.
For further information on our outstanding warrants, refer to collateralize our letter of creditFootnote 5, Convertible Redeemable Preferred Stock and certain capital lease obligations with as well corporate credit card obligations.Stockholders' Equity.
Foreign currency risk
We operate globally, and we predominantly generate revenues and expenses in local currencies. We operate in several countries in South America,Europe, as well as countries throughout EuropeSouth America and Asia Pacific. As such, we have exposure to adverse changes in exchange rates associated with revenues and operating expenses of our foreign operations, but we believe this exposure is not material at this time.operations. We have not engaged in any transactions that hedge foreign currency exchange rate risk.
There can be no guarantee that exchange rates will remain constant in future periods. In addition to the impact from the U.S. Dollar to euroEuro exchange rate movements, we are also impacted by the movements in the exchange rates between the U.S. Dollar and various South American, Asia Pacific and other European currencies. We have evaluated and assessed the potential effect of this risk and concluded that near-term changes in currency rates should not materially adversely affect our financial position, results of operations or cash flows. We performed a sensitivity analysis, assuming a 10% decrease or increase in the value of foreign currencies in which we operate. Our analysis hasWe determined that a 10% decrease in value would have resulted in a $0.6 million decrease to our operatingnet loss for 2017of approximately $9.6 million and a 10% increase in value would have resulted in a $0.6 millionan increase to our operatingnet loss of approximately $5.2 million for the year ended 2017.December 31, 2022.
CashAs of December 31, 2022, of our total $20.4 million in cash and cash equivalents, including restricted cash, $10.6 million was held overseasby foreign subsidiaries. Of this amount, we believe $3.3 million could be subject to income tax withholding paymentsof 5% to 15% if the funds were repatriated to the U.S., which could range from 5% to 17.5% of the amount repatriated. As of December 31, 2017, $11.9 million of the $37.9 million in cash and cash equivalents was held by foreign subsidiaries that could be subject to repatriation.

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ITEM 8.FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
Page
comScore, Inc. Consolidated Financial Statements

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the stockholders and the Board of Directors of comScore, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheetsheets of comScore, Inc. and its subsidiaries (the "Company") as of December 31, 2017,2022 and 2021, the related consolidated statementstatements of operations and comprehensive loss, stockholders’convertible redeemable preferred stock and stockholders' equity, and cash flows, for each of the yearthree years in the period ended December 31, 2017,2022, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2017,2022 and 2021, and the results of its operations and its cash flows for each of the yearthree years in the period ended December 31, 2017,2022, in conformity with accounting principles generally accepted in the United States of America.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB)("PCAOB"), the Company's internal control over financial reporting as of December 31, 2017,2022, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated March 23, 2018,1, 2023, expressed an adverseunqualified opinion on the Company's internal control over financial reporting because of material weaknesses.reporting.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our auditaudits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our auditaudits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our auditaudits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit providesaudits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.
Revenues – Certain Complex Contracts – Refer to Notes 2 and 4 to the financial statements
Critical Audit Matter Description
The Company recognizes revenue under the core principle to depict the transfer of control to its customers in an amount reflecting the consideration to which it expects to be entitled. The Company's contracts with customers may include multiple promised goods and services. Contracts with multiple performance obligations typically consist of a mix of subscriptions to the Company's online database, customized data services, and delivery of periodic custom reports based on information obtained from the database. In such cases, the Company identifies performance obligations by evaluating whether the promised goods and services are capable of being distinct and distinct within the context of the contract at contract inception. Promised goods and services that are not distinct at contract inception are combined as one performance obligation.
Once the Company identifies the performance obligations, the Company will determine the transaction price based on contractually fixed amounts and an estimate of variable consideration. In general, the transaction price is determined by estimating the fixed amount of consideration to which the Company is entitled for transfer of goods and services and all relevant sources and components of variable consideration. Variable consideration is estimated based on the most likely amount or expected value approach, depending on which method the Company expects to better predict the amount of consideration to which it will be entitled. Once the Company elects one of the methods to estimate variable consideration for a particular type of performance obligation, the Company will apply that method consistently. Estimates of variable consideration are subject to constraint based on expected recovery from the customer.
The Company allocates the transaction price to each performance obligation based on relative standalone selling price ("SSP"). The Company recognizes revenue when (or as) it satisfies a performance obligation by transferring promised goods or services to a customer. Customers may obtain the control of promised goods or services over time or at a point in time.
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Given the complexity of certain of the Company's contracts, we concluded that revenue recognition from these contracts represents a critical audit matter because of the judgments necessary for management to identify performance obligations, determine the transaction price, allocate transaction price to the performance obligations and recognize revenue when performance obligations are satisfied. Performing audit procedures related to revenue recognition for these contracts required more extensive audit effort and a higher degree of auditor judgment.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to evaluating the significant estimates and judgments used by management in the determination of the accounting for certain more complex revenue contracts, including the identification of performance obligations, determination of the transaction price, allocation of the transaction price to the performance obligations and recognition of revenue when performance obligations are satisfied, included the following, among others:
We tested the effectiveness of controls, including controls over the identification of performance obligations, determination of the transaction price, allocation of the transaction price, and determination of when performance obligations are satisfied.
For a selection of revenue contracts identified as having more complex terms, we performed the following:
Analyzed the contract to determine if all arrangement terms that may have an impact on revenue recognition were identified and independently evaluated management's accounting for the contract.
Tested management's identification of distinct performance obligations by evaluating whether the underlying goods, services, or both were capable of being distinct and distinct within the context of the contract.
Tested the contract value allocation based on the Company's standalone selling price (SSP) through the performance of our revenue testing. We also evaluated the risks related to the Company's SSP determination.
Tested the timing of revenue recognition by evaluating whether revenue should be recognized over time or at a point in time, and whether the revenue was recognized in the appropriate period by examining evidence of delivery or access to support the timing of revenue recognition based on the product or service type.
Tested the mathematical accuracy of management's calculation of revenue.
Goodwill – Goodwill Impairment Analysis – Refer to Notes 2 and 10 to the financial statements
Critical Audit Matter Description
Goodwill is evaluated for impairment at least annually, as of October 1, by comparing the fair value of a reporting unit to its carrying value including goodwill. The Company has a single reporting unit. Accordingly, the impairment assessment for goodwill is performed at the enterprise level. Goodwill is reviewed for possible impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying value. The carrying value of the reporting unit is reviewed utilizing a combination of the discounted cash flow model and a market value approach. The estimated fair value of a reporting unit is determined based on assumptions regarding estimated future cash flows, discount rate, long-term growth rates and market values.
The Company monitors for events and circumstances that could negatively impact the key assumptions in determining fair value, including long-term growth rates, profitability, discount rates, volatility in the Company's market capitalization, general industry, and market and macro-economic conditions.
As of September 30, 2022, the Company concluded that it was more likely than not that the estimated fair value of its reporting unit was less than its carrying value. Accordingly, in conjunction with its annual test as of October 1, 2022, the Company completed its assessment, and concluded that it was more likely than not that the estimated fair value of its reporting unit was less than its carrying value. In its assessment, the Company considered the decline in the Company's stock price and market capitalization among other factors. The Company performed a quantitative goodwill impairment test using a discounted cash flow model, supported by a market approach. The Company's reporting unit did not pass the goodwill impairment test, and as a result the Company recorded a $46.3 million non-cash impairment charge during the three months ended September 30, 2022 and year ended December 31, 2022.
We identified goodwill for the Company as a critical audit matter because of the significant judgments made by management to estimate the fair value of the reporting unit, specifically related to the selection of the discount rate and forecasts of future revenue. Performing audit procedures to evaluate the reasonableness of management's estimates and assumptions related to selection of the discount rate and forecasts of future revenue required a high degree of auditor judgment and an increased extent of effort, including the need to involve our fair value specialists.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the forecasts of future revenue and the selection of the discount rate for the Company's goodwill impairment included the following, among others:
We tested the effectiveness of controls over management's goodwill impairment evaluations, including those over the forecasts of future revenue and management's selection of the discount rate.
We evaluated whether the internal specialists used by the Company to perform the goodwill valuation analysis had the necessary competence, capabilities, and objectivity.
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We evaluated management's ability to accurately forecast revenue by comparing the actual results to management's historical projections.
We sensitized management projections to determine areas of audit focus.
We evaluated the reasonableness of management's forecasted revenue by comparing the forecasts to:
Historical revenue growth.
Historical industry revenue growth rates and revenue growth rates of peer group companies.
Economic forecasts considering the impact of macro-economic conditions.
Internal communications to management and the Board of Directors.
Forecasted information included in analyst and industry reports for the Company and certain of its peer group.
Public information related to addressable market opportunities.
Corroborative inquiries with management regarding the projected revenue growth.
With the assistance of our fair value specialists, we evaluated the reasonableness of the (1) valuation methodology and (2) discount rate by:
Testing the source information underlying the determination of the discount rate and the mathematical accuracy of the calculation.
Developing a range of independent estimates and comparing those to the discount rate selected by management.
We evaluated the impact of changes in management's revenue forecasts from the October 1, 2022 annual measurement date to December 31, 2022.

/s/ Deloitte & Touche LLP
McLean, VAVirginia
March 23, 2018

1, 2023
We have served as the Company's auditor since 2017.

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Report of Independent Registered Public Accounting Firm

The Board of Directors and Stockholders of comScore, Inc.
We have audited the accompanying consolidated balance sheet of comScore, Inc. as of December 31, 2016, and the related consolidated statements of operations and comprehensive loss, stockholders’ equity and cash flows for each of the two years in the period ended December 31, 2016. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of comScore, Inc. at December 31, 2016, and the consolidated results of its operations and its cash flows for each of the two years in the period ended December 31, 2016, in conformity with U.S. generally accepted accounting principles.
As discussed in Note 1 to the consolidated financial statements, stockholders’ equity as of January 1, 2015 has been restated to correct various errors related to the Company’s internal investigation, including errors related to revenue recognition and income taxes.
/s/ Ernst & Young LLP
Tysons, Virginia
March 23, 2018


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COMSCORE, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
 December 31,
 2017 2016
Assets   
Current assets:   
Cash and cash equivalents$37,859
 $84,111
Restricted cash7,266
 4,230
Marketable securities
 28,412
Accounts receivable, net of allowance ($2,899 and $8,412 of accounts receivable attributable to related parties)82,029
 96,230
Prepaid expenses and other current assets ($0 and $2,923 attributable to related parties)15,168
 19,450
Insurance recoverable on litigation settlements37,232
 
Total current assets179,554
 232,433
Property and equipment, net28,893
 42,001
Other non-current assets ($0 and $185 attributable to related parties)7,259
 7,176
Deferred tax assets4,532
 5,117
Intangible assets, net159,777
 194,168
Goodwill642,424
 639,897
Total assets$1,022,439
 $1,120,792
Liabilities and Stockholders' Equity   
Current liabilities:   
Accounts payable ($2,715 and $17 attributable to related parties)$27,889
 $7,204
Accrued expenses ($5,857 and $5,141 attributable to related parties)86,031
 52,907
Accrued litigation settlements27,718
 
Other short-term liabilities2,998
 2,860
Deferred revenue ($2,755 and $4,654 attributable to related parties)98,367
 99,412
Deferred rent1,239
 590
Capital lease obligations6,248
 12,904
Total current liabilities250,490
 175,877
Deferred rent9,394
 9,009
Deferred revenue2,053
 2,733
Deferred tax liabilities3,641
 7,688
Capital lease obligations2,103
 8,003
Accrued litigation settlements90,800
 
Other long-term liabilities7,466
 12,629
Total liabilities365,947
 215,939
Commitments and contingencies
 
Stockholders’ equity:   
Preferred stock, $0.001 par value per share; 5,000,000 shares authorized at December 31, 2017 and 2016; no shares issued or outstanding as of December 31, 2017 or 2016
 
Common stock, $0.001 par value per share; 100,000,000 shares authorized as of December 31, 2017 and 2016; 60,053,843 shares issued and 57,289,047 shares outstanding as of December 31, 2017 and 59,937,393 shares issued and 57,172,597 shares outstanding as of December 31, 2016, respectively60
 60
Additional paid-in capital1,407,717
 1,380,881
Accumulated other comprehensive loss(6,224) (12,420)
Accumulated deficit(609,091) (327,698)
Treasury stock, at cost, 2,764,796 shares as of December 31, 2017 and 2016, respectively(135,970) (135,970)
Total stockholders’ equity656,492
 904,853
Total liabilities and stockholders’ equity$1,022,439
 $1,120,792
As of December 31,
(In thousands, except share and per share data)20222021
Assets
Current assets:
Cash and cash equivalents$20,044 $21,854 
Restricted cash398 425 
Accounts receivable, net of allowances of $798 and $1,173, respectively ($1,034 and $3,606 of accounts receivable attributable to related parties, respectively)68,457 72,059 
Prepaid expenses and other current assets15,922 14,769 
Total current assets104,821 109,107 
Property and equipment, net36,367 36,451 
Operating right-of-use assets23,864 29,186 
Deferred tax assets3,351 2,811 
Intangible assets, net13,327 39,945 
Goodwill387,973 435,711 
Other non-current assets10,883 10,263 
Total assets$580,586 $663,474 
Liabilities, Convertible Redeemable Preferred Stock and Stockholders' Equity
Current liabilities:
Accounts payable ($12,090 and $6,575 attributable to related parties, respectively)$29,090 $23,575 
Accrued expenses ($4,297 and $4,122 attributable to related parties, respectively)43,393 45,264 
Contract liabilities ($1,341 and $3,553 attributable to related parties, respectively)52,944 54,011 
Customer advances11,527 11,613 
Current operating lease liabilities7,639 7,538 
Warrants liability718 10,520 
Current portion of contingent consideration7,134 1,037 
Other current liabilities ($7,863 and $7,863 attributable to related parties, respectively)12,646 11,813 
Total current liabilities165,091 165,371 
Non-current operating lease liabilities29,588 36,055 
Non-current portion of accrued data costs ($15,471 and $7,843 attributable to related parties, respectively)25,106 16,005 
Revolving line of credit16,000 16,000 
Deferred tax liabilities2,127 2,103 
Other non-current liabilities ($159 and $1,582 attributable to related parties, respectively)10,627 16,879 
Total liabilities248,539 252,413 
Commitments and contingencies
Convertible redeemable preferred stock, $0.001 par value; 82,527,609 shares authorized, issued and outstanding as of December 31, 2022 and 2021; aggregate liquidation preference of $211,863 as of December 31, 2022 and 2021 (related parties)187,885 187,885 
Stockholders' equity:
Preferred stock, $0.001 par value; 7,472,391 shares authorized as of December 31, 2022 and 2021; no shares issued or outstanding as of December 31, 2022 or 2021— — 
Common stock, $0.001 par value; 275,000,000 shares authorized as of December 31, 2022 and 2021; 98,869,738 shares issued and 92,104,942 shares outstanding as of December 31, 2022, and 97,172,086 shares issued and 90,407,290 shares outstanding as of December 31, 202192 90 
Additional paid-in capital1,690,783 1,683,883 
Accumulated other comprehensive loss(15,940)(12,098)
Accumulated deficit(1,300,789)(1,218,715)
Treasury stock, at cost, 6,764,796 shares as of December 31, 2022 and 2021(229,984)(229,984)
Total stockholders' equity144,162 223,176 
Total liabilities, convertible redeemable preferred stock and stockholders' equity$580,586 $663,474 
See accompanying Notes to Consolidated Financial Statements.

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COMSCORE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In thousands, except share
 Years Ended December 31,
(In thousands, except share and per share data)202220212020
Revenues (2)
$376,423 $367,013 $356,036 
Cost of revenues (1) (2) (3)
205,294 203,044 180,712 
Selling and marketing (1) (3)
68,453 66,937 70,220 
Research and development (1) (3)
36,987 39,123 38,706 
General and administrative (1) (3)
61,200 61,736 55,783 
Amortization of intangible assets27,096 25,038 27,219 
Impairment of goodwill46,300 — — 
Restructuring5,810 — — 
Impairment of right-of-use and long-lived assets156 — 4,671 
Total expenses from operations451,296 395,878 377,311 
Loss from operations(74,873)(28,865)(21,275)
Loss on extinguishment of debt (2)
— (9,629)— 
Interest expense, net (2)
(915)(7,801)(35,805)
Other income (expense), net9,785 (5,778)14,554 
Gain (loss) from foreign currency transactions1,166 2,895 (4,490)
Loss before income taxes(64,837)(49,178)(47,016)
Income tax provision(1,724)(859)(902)
Net loss$(66,561)$(50,037)$(47,918)
Net loss available to common stockholders
Net loss$(66,561)$(50,037)$(47,918)
Convertible redeemable preferred stock dividends (2)
(15,513)(12,623)— 
Total net loss available to common stockholders$(82,074)$(62,660)$(47,918)
Net loss per common share:
Basic and diluted$(0.89)$(0.78)$(0.67)
Weighted-average number of shares used in per share calculation - Common Stock:
Basic and diluted92,683,564 80,802,053 71,181,496 
Comprehensive loss:
Net loss$(66,561)$(50,037)$(47,918)
Other comprehensive (loss) income:
Foreign currency cumulative translation adjustment(3,842)(5,068)5,303 
Total comprehensive loss$(70,403)$(55,105)$(42,615)
(1) Excludes amortization of intangible assets, which is presented separately in the Consolidated Statements of Operations and per share data)Comprehensive Loss.
(2) Transactions with related parties are included in the line items above as follows (refer to Footnote 14, Related Party Transactions, for further information):
  Years Ended December 31,
  2017 2016 2015
Revenues (1)
 $403,549

$399,460

$270,803
       
Cost of revenues (1) (2) (3)
 193,605
 173,080
 111,904
Selling and marketing (1) (2) (3)
 130,509
 126,311
 96,344
Research and development (1) (2) (3)
 89,023
 86,975
 52,718
General and administrative (1) (2) (3)
 74,651
 97,517
 72,493
Investigation and audit related (1)
 83,398
 46,617
 
Amortization of intangible assets 34,823
 31,896
 8,608
(Gain) loss on asset dispositions 
 (33,457) 4,671
Settlement of litigation, net 82,533
 2,363
 (840)
Restructuring 10,510
 
 
Total expenses from operations 699,052
 531,302
 345,898
Loss from operations (295,503) (131,842) (75,095)
Interest expense, net (1)
 (661) (478) (1,321)
Other income, net 15,205
 12,371
 9
Loss from foreign currency transactions (3,151) (1,231) (1,331)
Loss before income taxes (284,110)
(121,180)
(77,738)
Income tax benefit (provision)
2,717

4,007

(484)
Net loss $(281,393)
$(117,173)
$(78,222)
Net loss per common share:      
Basic $(4.90) $(2.10) $(2.07)
Diluted (4.90) (2.10) (2.07)
Weighted-average number of shares used in per share calculation - Common Stock:      
Basic 57,485,755
 55,728,090
 37,879,091
Diluted 57,485,755
 55,728,090
 37,879,091
Comprehensive loss:      
Net loss $(281,393) $(117,173) $(78,222)
Other comprehensive income (loss):      
Foreign currency cumulative translation adjustment 6,168
 (1,170) (5,775)
Unrealized gain on marketable securities, net 24
 169
 
Reclassification of realized loss on the sale of marketable securities, net 4
 19
 
Total comprehensive loss $(275,197) $(118,155) $(83,997)
       
       
       
       
       
       
       
       
       
       
       
       
       
Years Ended December 31,
202220212020
Revenues$14,934 $16,285 $13,314 
Cost of revenues26,971 34,534 10,094 
Interest expense, net— (4,692)(24,480)
Loss on extinguishment of debt— (9,608)— 
Convertible redeemable preferred stock dividends(15,513)(12,623)— 

(3) Stock-based compensation expense is included in the line items above as follows:
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Years Ended December 31,
      
(1) For the years ended December 31, 2017 and 2016 and for the period April 1, 2015 through December 31, 2015 (refer to Footnote 17, Related Party Transactions of the Notes to Consolidated Financial Statements for additional information), transactions with related parties are included in the line items above as follows:
 2017 2016 2015
Revenues $13,181
 $9,688
 $(41,422)
      
Cost of revenues 12,956
 15,695
 2,244
Selling and marketing 157
 1,743
 460
Research and development 119
 3,662
 13
General and administrative 777
 633
 24
Investigation and audit related 16,844
 2,563
 
      
Interest income, net 672
 1,106
 555
      
(2) Amortization of stock-based compensation expense is included in the line items above as follows:
 2017 2016 2015202220212020
Cost of revenues $1,766
 $4,841
 $5,886
Cost of revenues$1,144 $1,603 $1,288 
Selling and marketing 5,247
 10,967
 11,502
Selling and marketing1,021 1,791 2,226 
Research and development 2,270
 5,902
 5,193
Research and development827 1,079 886 
General and administrative 8,031
 24,785
 24,402
General and administrative5,186 9,375 5,673 
 $17,314
 $46,495
 $46,983
Total stock-based compensation expenseTotal stock-based compensation expense$8,178 $13,848 $10,073 
      
(3) Excludes amortization of intangible assets, which is presented separately in the Consolidated Statements of Operations and Comprehensive Loss.
See accompanying Notes to Consolidated Financial Statements.

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COMSCORE, INC.
CONSOLIDATED STATEMENTSSTATEMENT OF STOCKHOLDERS’CHANGES IN CONVERTIBLE REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY
 (In thousands, except share data)
(In thousands, except share data)Convertible Redeemable Preferred StockCommon StockAdditional
Paid-In
Capital
Accumulated
Other
Comprehensive
Loss
Accumulated
Deficit
Treasury stock, at costTotal
Stockholders'
Equity
SharesAmountSharesAmount
Balance as of December 31, 2019 $ 70,065,130 $70 $1,609,358 $(12,333)$(1,108,137)$(229,984)$258,974 
Net loss — — — — — (47,918)— (47,918)
Foreign currency translation adjustment— — — — — 5,303 — — 5,303 
Exercise of Common Stock options, net— — 75,000 — 143 — — — 143 
Interest paid in Common Stock (1)
— — 1,474,201 3,058 — — — 3,060 
Restricted stock units distributed— — 1,363,152 3,064 — — — 3,065 
Payments for taxes related to net share settlement of equity awards— — (38,937)— (117)— — — (117)
Amortization of stock-based compensation— — — — 6,480 — — — 6,480 
Balance as of December 31, 2020 $ 72,938,546 $73 $1,621,986 $(7,030)$(1,156,055)$(229,984)$228,990 
Net loss— — — — — — (50,037)— (50,037)
Convertible redeemable preferred stock, net of issuance costs (1)
82,527,609 187,885    — —  — 
Fair value of Common Stock issued in connection with acquisition  7,945,519 25,766 — — — 25,774 
Conversion shares issued as extinguishment cost on senior secured convertible notes (1)
  3,150,000 9,605    9,608 
Interest paid in Common Stock (1)
— — 4,165,781 10,808 — — — 10,812 
Convertible redeemable preferred stock dividends (1)
      (12,623) (12,623)
Restricted stock units distributed— — 2,362,963 7,117 —   7,119 
Foreign currency translation adjustment— — — — — (5,068)— — (5,068)
Payments for taxes related to net share settlement of equity awards— — (155,519) (522)— — — (522)
Amortization of stock-based compensation— — — — 9,123 — — — 9,123 
Balance as of December 31, 202182,527,609 $187,885 90,407,290 $90 $1,683,883 $(12,098)$(1,218,715)$(229,984)$223,176 
Net loss      (66,561) (66,561)
Convertible redeemable preferred stock dividends (1)
      (15,513) (15,513)
Restricted stock units distributed  1,493,121 1,717    1,718 
Exercise of Common Stock options, net  96,955 103    104 
Payments for taxes related to net share settlement of equity awards  (13,120) (23)   (23)
Amortization of stock-based compensation    5,106    5,106 
Other  120,696 — (3)   (3)
Foreign currency translation adjustment     (3,842)  (3,842)
Balance as of December 31, 202282,527,609 $187,885 92,104,942 $92 $1,690,783 $(15,940)$(1,300,789)$(229,984)$144,162 
 Common Stock 
Additional
Paid-In
Capital
 
Accumulated
Other
Comprehensive
Income (Loss)
 
Accumulated
Deficit
 Treasury stock, at cost 
Total
Stockholders’
Equity
Shares Amount 
Balance as of January 1, 2015 (as originally reported)34,174,466
 $36
 $324,176
 $(5,591) $(93,076) $(50,280) $175,265
Restatement adjustments (1)

 
 (2,957) (72) (39,504) 
 (42,533)
Balance as of January 1, 2015 (As restated)34,174,466
 $36
 $321,219
 $(5,663) $(132,580) $(50,280) $132,732
Net loss
 
 
 
 (78,222)

 (78,222)
Foreign currency translation adjustment
 
 
 (5,775) 
 
 (5,775)
Issuance of Common Stock for acquisitions (2)
6,043,683
 5
 258,873
 
 
 47,518
 306,396
Subscription Receivable
 
 (15,744) 
 
 
 (15,744)
Exercise of Common Stock options276,464
 
 11,623
 
 
 
 11,623
Issuance of restricted stock195,595
 
 
 
 
 
 
Restricted stock canceled(10,263) 
 
 
 
 
 
Restricted stock units vested790,115
 1
 (1) 
 
 
 
Common Stock received for tax withholding(545,411) (1) (28,159) 
 
 
 (28,160)
Excess tax benefits from stock-based compensation
 
 (1,335) 
 
 
 (1,335)
Repurchase of Common Stock(1,949,580) 
 
 
 
 (105,916) (105,916)
Stock-based compensation
 
 46,579
 
 
 
 46,579
Balance as of December 31, 201538,975,069
 $41
 $593,055
 $(11,438) $(210,802) $(108,678) $262,178
Adoption of ASU 2016-09
 
 
 
 277
   277
Net loss
 
 
 
 (117,173)

 (117,173)
Foreign currency translation adjustment
 
 
 (1,170) 
 
 (1,170)
Unrealized gain on marketable securities, net of tax
 
 
 188
 
 
 188
Subscription Receivable
 
 (5,521) 
 
 
 (5,521)
Exercise of Common Stock options225,088
 
 4,139
 
 
 
 4,139
Issuance of restricted stock214,010
 
 
 
 
 
 
Issuance of common stock for Rentrak acquisition18,303,796
 18
 753,400
 
 
 
 753,418
Restricted stock canceled(1,750) 
 
 
 
 
 
Restricted stock units vested405,031
 1
 (1) 
 
 
 
Common Stock received for tax withholding(279,301) 
 (18,292) 
 
 
 (18,292)
Repurchase of Common Stock(675,672) 
 
 
 
 (27,292) (27,292)
Other6,326
 
 
 
 
 
 

72

(1) Transactions for these line items were exclusively with related parties (refer to Table of Contents


Stock-based compensation
 
 54,101
 
 
 
 54,101
Balance as of December 31, 201657,172,597
 $60
 $1,380,881
 $(12,420) $(327,698) $(135,970) $904,853
Net loss
 
 
 
 (281,393) 
 (281,393)
Subscription Receivable
 
 11,012
 
 
 
 11,012
Foreign currency translation adjustment
 
 
 6,168
 
 
 6,168
Unrealized gain on investments, net of tax
 
 
 28
 
 
 28
Restricted stock units vested185,754
 
 
 
 
 
 
Common Stock received for tax withholding(69,304) 
 (1,514) 
 
 
 (1,514)
Stock-based compensation
 
 17,338
 
 
 
 17,338
Balance as of December 31, 201757,289,047
 $60
 $1,407,717
 $(6,224) $(609,091) $(135,970) $656,492

(1) Refer toFootnote 15, Organization,Convertible Redeemable Preferred Stock and Stockholders' Equity, Footnote 6, Debt, and Footnote 14, Related Party Transactions, of the Notes to Consolidated Financial Statements for discussion of restatement adjustments to January 1, 2015 stockholders' equity.
(2) Included inadditional information). Gross proceeds from related parties for the issuance of Common Stock for acquisitions is the reissuance of 1,605,330 treasury shares.convertible redeemable preferred stock were $204.0 million.
See accompanying Notes to Consolidated Financial Statements.

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COMSCORE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
 Years Ended December 31,
(In thousands)202220212020
Operating activities:
Net loss$(66,561)$(50,037)$(47,918)
Adjustments to reconcile net loss to net cash provided by operating activities:
Impairment of goodwill46,300 — — 
Amortization of intangible assets27,096 25,038 27,219 
Depreciation16,828 15,793 14,064 
Stock-based compensation expense8,178 13,848 10,073 
Non-cash operating lease expense6,060 5,345 5,555 
Change in fair value of contingent consideration liability2,558 — — 
Amortization expense of finance leases2,364 2,188 1,652 
Bad debt expense (benefit)312 (80)1,693 
Amortization of deferred financing costs163 378 1,560 
Impairment of right-of-use and long-lived assets156 — 4,671 
Deferred tax (benefit) provision(475)(1,719)10 
Change in fair value of warrant liability(9,802)7,689 (4,894)
Loss on extinguishment of debt— 9,629 — 
Non-cash interest expense on senior secured convertible notes (1)
— 4,692 9,180 
Accretion of debt discount— 1,620 7,571 
Change in fair value of financing derivatives— (1,800)(10,287)
Other1,435 1,082 908 
Changes in operating assets and liabilities, net of effect of acquisition:
Accounts receivable2,596 (2,081)2,024 
Prepaid expenses and other assets(805)(1,145)(6,283)
Accounts payable, accrued expenses, and other liabilities7,396 (4,210)(17,095)
Contract liability and customer advances(1,587)(10,777)7,341 
Operating lease liabilities(7,275)(5,597)(6,327)
Net cash provided by operating activities34,937 9,856 717 
Investing activities:
Capitalized internal-use software costs(16,685)(14,747)(15,078)
Purchases of property and equipment(1,137)(803)(477)
Cash and restricted cash acquired from acquisition— 902 — 
Net cash used in investing activities(17,822)(14,648)(15,555)
Financing activities:
Payments for dividends on convertible redeemable preferred stock (1)
(15,512)(4,760)— 
Principal payments on finance leases(2,519)(2,138)(1,754)
Principal payment and extinguishment costs on senior secured convertible notes (1)
— (204,014)— 
Principal payment and extinguishment costs on secured term note— (14,031)— 
Proceeds from borrowings on revolving line of credit— 16,000 — 
Proceeds from issuance of convertible redeemable preferred stock, net of issuance costs (1)
— 187,885 — 
Other(101)(1,394)(342)
Net cash used in financing activities(18,132)(22,452)(2,096)
Effect of exchange rate changes on cash, cash equivalents and restricted cash(820)(1,218)902 
Net decrease in cash, cash equivalents and restricted cash(1,837)(28,462)(16,032)
Cash, cash equivalents and restricted cash at beginning of period22,279 50,741 66,773 
Cash, cash equivalents and restricted cash at end of period$20,442 $22,279 $50,741 
As of December 31,
202220212020
Cash and cash equivalents$20,044 $21,854 $31,126 
Restricted cash398 425 19,615 
Total cash, cash equivalents and restricted cash$20,442 $22,279 $50,741 
51
 Years Ended December 31,
 2017 2016 2015
Operating activities     
Net loss$(281,393) $(117,173) $(78,222)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:     
Depreciation23,339
 25,439
 22,595
Amortization of intangible assets34,823
 31,896
 8,608
Provision for bad debts983
 1,507
 3,167
Stock-based compensation17,314
 46,495
 46,983
Deferred tax benefit(3,203) (3,997) (121)
(Gain) loss on asset dispositions
 (33,457) 4,671
Realized loss on marketable securities4
 19
 
Loss from equity method investment63
 406
 
Loss (gain) on disposition of property and equipment125
 275
 (2)
Gain on forgiveness of obligation(4,000) 
 
Accrued litigation settlements to be settled in Common Stock90,800
 
 
Non-cash vendor consideration
 
 48,253
Changes in operating assets and liabilities, net of effect of acquisitions:     
Accounts receivable14,529
 4,009
 1,542
Prepaid expenses and other assets(33,165) (3,928) (863)
Accounts payable, accrued expenses, and other liabilities85,001
 (12,972) (1,057)
Deferred revenue(2,638) 5,962
 5,206
Deferred rent1,013
 (393) (1,403)
Net cash (used in) provided by operating activities(56,405) (55,912) 59,357
      
Investing activities     
Net cash received (paid) in disposition of assets
 42,980
 (2,535)
Acquisitions, net of cash acquired
 37,086
 (10,117)
Acquisitions, net of cash acquired (related party)
 (27,328) 
Sales of marketable securities28,436
 2,188
 
Purchase of property and equipment(10,182) (7,106) (4,325)
Net cash provided by (used in) investing activities18,254
 47,820
 (16,977)
      
Financing activities     
Proceeds from the issuance of common stock
 
 204,741
Financing proceeds received on subscription receivable (related party)11,012
 8,954
 3,503
Proceeds from the exercise of stock options
 4,139
 11,623
Repurchase of common stock (withholding taxes)(1,514) (18,292) (28,160)
Repurchase of common stock (treasury shares)
 (27,292) (105,916)
Excess tax benefits from stock-based compensation
 
 (1,335)
Principal payments on capital lease and software license arrangements(17,016) (18,838) (16,622)
Stock issuance costs
 
 (4,368)
Net cash (used in) provided by financing activities(7,518) (51,329) 63,466
Effect of exchange rate changes on cash2,453
 776
 (1,875)
Net (decrease) increase in cash, cash equivalents and restricted cash(43,216) (58,645) 103,971
Cash, cash equivalents and restricted cash at beginning of year88,341
 146,986
 43,015
Cash, cash equivalents and restricted cash at end of year$45,125
 $88,341
 $146,986
      

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Years Ended December 31,
202220212020
Supplemental cash flow disclosures:
Interest paid ($—, $— and $21,420 in 2022, 2021, and 2020 attributable to related party, respectively)$652 $1,009 $23,792 
Income taxes paid, net of refunds1,804 1,831 1,182 
Operating cash flows from operating leases10,364 9,623 11,170 
Operating cash flows from finance leases338 440 493 
Supplemental non-cash activities:
Convertible redeemable preferred stock dividends accrued but not yet paid (1)
7,863 7,863 — 
Settlement of restricted stock unit liability1,718 7,117 3,065 
Change in accounts payable and accrued expenses related to capital expenditures1,162 479 395 
Right-of-use assets obtained in exchange for finance lease liabilities1,106 3,345 754 
Right-of-use assets obtained in exchange for new operating lease liabilities908 5,211 669 
Fair value of Common Stock issued in connection with acquisition— 25,774 — 
Interest paid in Common Stock (1)
— 10,812 — 
Conversion shares issued as extinguishment cost on senior secured convertible notes (1)
— 9,608 — 
Fair value of contingent consideration recognized upon closing of acquisition— 5,600 — 
      
      
 Years Ended December 31,
 2017 2016 2015
Cash and cash equivalents$37,859
 $84,111
 $146,986
Restricted cash7,266
 4,230
 
Total cash, cash equivalents and restricted cash$45,125
 $88,341
 $146,986
      
      
Supplemental cash flow disclosures:     
Interest paid$1,691
 $1,962
 $1,906
Income taxes paid497
 1,717
 1,790
      
Supplemental non-cash investing and financing activities:     
Stock issued in connection with acquisition - Rentrak$
 $753,418
 $
Stock issued in connection with WPP arrangements
 
 49,034
Capital lease and software license obligations incurred191
 14,842
 22,531
Leasehold improvements acquired through lease incentives
 
 372
Accrued capital expenditures336
 3,060
 532
(1) Transactions for these line items were exclusively with related parties (refer to Footnote 5, Convertible Redeemable Preferred Stock and Stockholders' Equity, Footnote 6, Debt, and Footnote 14, Related Party Transactions, of the Notes to Consolidated Financial Statements for additional information). Gross proceeds from related parties for the issuance of convertible redeemable preferred stock were $204.0 million.
See accompanying Notes to Consolidated Financial Statements.

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COMSCORE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1.Organization

1.Organization
comScore, Inc., together with its consolidated subsidiaries (collectively, "comScore""Comscore" or the “Company”"Company"), headquartered in Reston, Virginia, is a global information and analytics company that measures audiences, consumer behavior and advertising across media platforms. On January 29, 2016,December 16, 2021, the Company completed a merger with Rentrak Corporation ("Rentrak") a global media measurement and advanced consumer targeting company serving the entertainment, television, movie, video and advertising industries, and Rentrak became a wholly-owned subsidiarytwo newly formed, wholly owned subsidiaries of the Company.Company entered into an Agreement and Plan of Merger (the "Merger Agreement") with Shareablee, Inc. ("Shareablee"), to acquire Shareablee in exchange for shares of the Company's Common Stock and contingent consideration payable subject to the achievement of certain conditions set forth in the Merger Agreement. Refer to Footnote 3, Business Combinations and Acquisitions.Combination.
Operating segments are defined as components of a business that can earn revenues and incur expenses for which discrete financial information is available that is evaluated on a regular basis by the chief operating decision maker ("CODM"). The Company’sCompany's CODM is its PrincipalChief Executive Officer, who decides how to allocate resources and assess performance. The Company operates inhas one operating segment. A single management team reports to the CODM, who manages the entire business. The Company’sCompany's CODM reviews consolidated results of operations to make decisions, allocate resources and assess performance and does not evaluate the profit or loss from any separate geography or product lines. The Company's President and Executive Vice Chairman assumed the roleline.
2.Summary of CODM following the retirement of the Company's Chief Executive Officer in November 2017.
As a result of the delay in the Company's filings of its Quarterly Reports on Form 10-Q and Annual Report on Form 10-K, the Company’s common stock ("Common Stock") was delisted from The Nasdaq Global Select Market on May 30, 2017. Upon the suspension of trading of the Company’s Common Stock on The Nasdaq Global Select Market, the Common Stock has been traded on the OTC Pink Tier under the symbol “SCOR.”
Uses and Sources of Liquidity and Management’s Plans
The Company’s primary need for liquidity is to fund working capital requirements of its businesses, capital expenditures and for general corporate purposes. The Company incurred significant investigation and audit related expenses, which significantly reduced working capital as of December 31, 2017.  In response to this reduction, in December 2017, the Company announced that it was implementing an organizational restructuring to reduce staffing levels by approximately 10% and exit certain geographic regions, to enable the Company to decrease its global costs and more effectively align resources to business priorities. To increase the Company’s available working capital, on January 16, 2018, the Company entered into certain agreements with funds affiliated with or managed by Starboard Value LP (collectively, “Starboard”), pursuant to which, among other things, the Company issued and sold to Starboard $150.0 million of senior secured convertible notes (“Notes") in exchange for $85.0 million in cash and 2,600,000 shares of Common Stock valued at $65.0 million. The Company also granted to Starboard an option (the “Notes Option”) to purchase up to an additional $50.0 million of Notes in exchange for a range of $15.0 million to $35.0 million of Common Stock, at Starboard’s option, and the balance in cash.
In addition, under the agreements, the Company has the right to conduct a rights offering (the “Rights Offering”), which would be open to all stockholders of the Company, for up to $150.0 million in senior secured convertible notes (the “Rights Offering Notes”). Starboard also agreed to backstop up to $100.0 million in aggregate principal amount of Rights Offering Notes through the purchase of additional Notes, with such backstop obligation to be reduced by the principal amount of Notes purchased by Starboard pursuant to the Notes Option, if any.
If undertaken, the Rights Offering would provide a minimum of $50.0 million to $70.0 million in cash if not fully subscribed (depending on whether Starboard exercises the Notes Option and assuming that any Notes purchased by Starboard pursuant to the backstop obligation will be issued on the same terms as the Rights Offering Notes), and at least $105.0 million in cash if fully subscribed, as stockholders of the Company who elect to participate in the Rights Offering will be allowed to elect to have up to 30% of the value of the Rights Offering Notes they acquire pursuant thereto delivered through the sale to or exchange with the Company of shares of Common Stock. For additional information, refer to Footnote 20, Subsequent Events.
The Company believes that the restructuring and financing actions discussed above are probable of occurring and satisfying the Company’s estimated liquidity needs within one year after the date that the financial statements are issued. However, the Company cannot predict, with certainty, the outcome of its actions to generate liquidity, including the availability of additional debt financing, or whether such actions would generate the expected liquidity as currently planned.

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Restatement of Opening Stockholders' Equity
In February 2016, the Audit Committee ("Audit Committee") of the comScore Board of Directors ("Board") commenced an internal investigation, with the assistance of outside advisors, into matters related to the Company's revenue recognition practices, disclosures, internal controls, corporate culture and certain employment practices. As a result of the issues identified in the Audit Committee's investigation and management's subsequent review, on September 12, 2016, the Company announced that the Audit Committee, in consultation with outside advisors and management, had concluded that the Company could no longer support the prior accounting for non-monetary contracts recorded by the Company during 2013, 2014 and 2015. As a result, the Company concluded that (i) the Company's previously issued, unaudited quarterly and year-to-date Consolidated Financial Statements for the quarters ended March 31, June 30 and September 30, 2015 filed on Quarterly Reports on Form 10-Q on May 5, August 7, and November 6, 2015, respectively, (ii) the Company's previously issued, audited Consolidated Financial Statements for the years ended December 31, 2014 and 2013 filed on Annual Reports on Form 10-K on February 20, 2015 and February 18, 2014, respectively (including the interim periods within those years) and (iii) the Company's preliminary unaudited Condensed Consolidated Financial Statements for the quarter and year ended December 31, 2015 included as an exhibit to its Current Report on Form 8-K furnished on February 17, 2016, should no longer be relied upon.
The following table summarizes the effects of the restatement adjustments on the components of total stockholders' equity as of January 1, 2015 as originally reported on the Company's 2014 Annual Report on Form 10-K.
  As of January 1, 2015
    Adjustments    
(In thousands) As Previously Reported A B C D Total Restatement Adjustments As Restated
Common stock $36
 $
 $
 $
 $
 $
 $36
Additional paid-in capital 324,176
 
 
 
 (2,957) (2,957) 321,219
Accumulated other comprehensive loss (5,591) 
 (77) 7
 (2) (72) (5,663)
Accumulated deficit (93,076) (2,411) (8,521) (301) (28,271) (39,504) (132,580)
Treasury stock, at cost (50,280) 
 
 
 
 
 (50,280)
Total stockholders' equity $175,265
 $(2,411) $(8,598) $(294) $(31,230) $(42,533) $132,732
(A) Non-monetary revenue contracts: The Company's non-monetary transactions are exchanges of data products between the Company and certain customers. UnderSignificant Accounting Standards Codification ("ASC") 845, Non-Monetary Transactions ("ASC 845"), a non-monetary exchange of goods can be recorded at fair value if fair value is determinable, the exchanged goods given and received would not be held for sale in the same line of the business and the exchange has commercial substance. Based on the Audit Committee’s investigation and management’s review of its accounting, the Company concluded that the original accounting for all of its non-monetary transactions did not meet the applicable guidance in ASC 845. This adjustment reverses the revenue and associated expense related to these non-monetary transactions. For these non-monetary revenue contracts, since there is no historical cost basis associated with the assets exchanged, there is no revenue recognized or expense incurred for these transactions. While a non-monetary transaction inherently has no effect on operating income or cash flow over the life of the relevant agreement governing such transaction, the timing of revenue recognized relative to the related expense recognized may have an effect on net income on a period-by-period basis.Policies
(B) Monetary revenueadjustments: There were adjustments to revenue and costs for the investigation-related contracts (contracts that were specifically subject to the Audit Committee's investigation) as well as additional contracts that the Company deemed had similar characteristics as the investigation-related contracts. Both groups of contracts had historical data deliverables where there was not a clear indication that the customer needed or requested the historical data and the contracts were multiple-element arrangements requiring a best estimate of selling price ("BESP") determination. When these contracts were re-evaluated, all units of accounts were re-valued utilizing BESP, generally resulting in a substantially reduced or zero value for the historical data. In addition, the investigation-related contracts had additional arrangements, including offsetting purchase contracts that were not previously disclosed. These additional arrangements resulted in revenue either being deferred until the arrangement was considered fixed and determinable, or, in some cases, purchases and sales of data with the same customer were accounted for as a single arrangement, resulting in revenue being netted against expenses under purchase contracts. Also included are other revenue accounting adjustments that are the result of a number of miscellaneous errors related to the Company's revenue accounting processes being ineffective in properly accounting for contracts, errors in revenue recognition, or in the consistent application of the Company's revenue accounting policies.

77



(C) Other adjustments: There were certain other non-revenue related adjustments that were primarily timing adjustments for expense accruals and recording amounts that were not previously provided for.
(D) Tax adjustments: As a result of the material changes to the Consolidated Financial Statements, the Company re-evaluated the valuation allowance determinations made in prior years. The analysis was updated to consider the changes to the Company's historical operating results following the investigation and subsequent review by management. In that process, the Company evaluated the weight of all evidence, including the decline in earnings, and concluded that as of December 31, 2013 the Company's U.S. federal and state net deferred tax assets were no longer more-likely-than-not to be realized and that a valuation allowance was required. The Company also adjusted income taxes, as necessary, to reflect the tax effect of the above adjustments made to operating results for the periods prior to December 31, 2014.

2.Summary of Significant Accounting Policies
Basis of Presentation and Consolidation
The accompanying Consolidated Financial Statements include the accounts of the Company and its wholly-owned domestic and foreign subsidiaries. All intercompany transactions and balances are eliminated upon consolidation.
Reclassification
Certain amounts in the prior year financial statements have been reclassified to conform to the current year presentation. Specifically, principal payments on capital lease and software license arrangements, payments for taxes related to net share settlement of equity awards, and proceeds from the exercise of stock options have been aggregated within other financing activities on the Consolidated Statements of Cash Flows.
Use of Estimates and Judgments in the Preparation of the Consolidated Financial Statements
The preparation of financial statements in conformity with generally accepted accounting principles in the U.S. ("GAAP")GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenue and expense during the reporting periods. Significant estimates and assumptionsjudgments are inherent in the analysis and the measurement of management's best estimateSSP, principal versus agent revenue recognition, determination of sellingperformance obligations, determination of transaction price, ("BESP"),including the determination of variable consideration and allocation of transaction price to performance obligations, deferred tax assets and liabilities, including the identification and quantification of income tax liabilities due to uncertain tax positions, the valuation and recoverability of goodwill, intangible and intangibleother long-lived assets, the determination of appropriate discount rates for lease accounting, the probability of exercising either lease renewal or termination clauses, the assessment of potential loss from contingencies, the fair value determination of contingent consideration from business combinations, financing-related liabilities and warrants, and the valuation of assetsoptions, performance-based and liabilities acquired in a business combination, and the allowance for doubtful accounts.market-based stock awards. Management bases its estimates and assumptions on historical experience and on various other factors that are believed to be reasonable under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be affected by changes in those estimates. On an ongoing basis, theThe Company evaluates its estimates and assumptions.assumptions on an ongoing basis.
Fair Value Measurements
The Company evaluates the fair value of certain assets and liabilities using the fair value hierarchy. Fair value is an exit price representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the Company applies the three-tier GAAP value hierarchy which prioritizes the inputs used in measuring fair value as follows:

Level 1 - observable inputs such as quoted prices in active markets;
Level 2 - inputs other than the quoted prices in active markets that are observable either directly or indirectly;
Level 3 - unobservable inputs of which there is little or no market data, which require the Company to develop its own
assumptions.
Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measure. The Company’sCompany's assessment of the significance of a particular input to the fair value measurements requires judgment and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy.
For assets that are measured using quoted prices in active markets, the total fair value is the published market price per unit multiplied by the number of units held, without consideration of transaction costs. Assets and liabilities that are measured using significant other observable inputs are primarily valued by reference to quoted prices of similar assets or liabilities in active markets, adjusted for any terms specific to that asset or liability.
Assets and liabilities that are measured at fair value on a non-recurring basis include property and equipment, operating right-of-use assets, intangible assets the Company's cost-method investment and goodwill. The Company recognizesmeasures these items at fair value when they are considered to be impaired or, in certain cases, upon initial
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recognition. The fair value of these assets and liabilities are determined with valuation techniques using the best information available and may include quoted market prices, market comparables andcomparable information, discounted cash flow models.models, or a combination thereof.

The carrying amounts of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued expenses, and the current portion of contract liabilities and customer advances reported in the Consolidated Balance Sheets approximate fair value due to the short-term nature of these instruments. The carrying amount of the revolving line of credit approximates fair value due to the variable rate nature of the debt.
Preferred Stock
In 2021, the Company entered into separate Securities Purchase Agreements with each of Charter Communications Holding Company, LLC ("Charter"), Qurate Retail, Inc. ("Qurate") and Pine Investor, LLC ("Pine") (the "Securities Purchase Agreements") for the issuance and sale of shares of Series B Convertible Preferred Stock, par value $0.001 ("Preferred Stock") as described in Footnote 5, Convertible Redeemable Preferred Stock and Stockholders' Equity. The issuance of the Preferred Stock pursuant to the Securities Purchase Agreements (the "Transactions") and related matters were approved by the Company's stockholders on March 9, 2021 and completed on March 10, 2021.
The Preferred Stock is contingently redeemable upon certain deemed liquidation events, such as a change in control. Because a deemed liquidation event could constitute a redemption event outside of the Company's control, all shares of Preferred Stock have been presented outside of permanent equity in mezzanine equity on the Consolidated Balance Sheets. The instrument is initially recognized at fair value net of issuance costs. The Company reassesses whether the Preferred Stock is currently redeemable, or probable to become redeemable in the future, as of each reporting date. If the instrument meets either of these criteria, the Company will accrete the carrying value to the redemption value. The Preferred Stock has not been adjusted to its redemption amount as of December 31, 2022 because a deemed liquidation event is not considered probable.
All financial instruments that are classified as mezzanine equity are evaluated for embedded derivative features by evaluating each feature against the nature of the host instrument (for example, more equity-like or debt-like). Features identified as embedded derivatives that are material are recognized separately as a derivative asset or liability in the financial statements.
Effective January 1, 2021, the Company early adopted Accounting Standards Update ("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). This ASU simplifies accounting for convertible instruments, enhances disclosure requirements related to the terms and features of convertible instruments, and amends the guidance for the derivatives scope exception for contracts settled in an entity's own equity. This ASU removes from GAAP the separation models for (1) convertible debt with a Cash Conversion Feature and (2) convertible instruments with a Beneficial Conversion Feature. Upon adoption of this new ASU, entities will account for a convertible debt instrument wholly as debt, and for convertible preferred stock wholly as preferred stock, unless (1) a convertible instrument contains features that require bifurcation as a derivative, or (2) a convertible debt instrument was issued at a substantial premium.
As a result of the adoption, no embedded features were identified requiring bifurcation under the new model, other than the change of control redemption feature. The Company adopted the standard using the modified retrospective approach. The standard had no impact on the senior secured convertible notes (the "Notes") issued by the Company prior to adoption and, as a result, there was no cumulative adjustment recorded upon adoption.
Loss on Extinguishment of Debt
In 2021, the Company recorded a $9.6 million loss on debt extinguishment related to the payoff of the Notes and a foreign secured promissory note (the "Secured Term Note"). Loss on extinguishment of debt represents the difference between the carrying value of the Company's debt instruments and any consideration paid to its creditors in the form of cash or shares of the Company's Common Stock on the extinguishment date. These transactions are described in Footnote 6, Debt.
Financing Derivatives
The Company's derivative financial instruments are not hedges and do not qualify for hedge accounting. Changes in the fair value of these instruments are recorded in other income (expense), net in the Consolidated Statements of Operations and Comprehensive Loss.
The fair values of the financing derivatives were estimated using forward projections and were discounted back at rates commensurate with the remaining term of the related derivatives. Significant valuation inputs included the Company's credit rating, the premium attributable to the payment-in-kind feature of the Notes, and premium estimates for company-specific risk factors (together, the "credit-adjusted discount rate"), the price and expected volatility of the Company's Common Stock, probability of change of control, and forward projections of estimated cash payments.
Extinguishment of the Notes on March 10, 2021 resulted in derecognition of the remaining financing derivatives. Refer to Footnote 6, Debt for additional information.
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Cash, and Cash Equivalents and Restricted Cash
The Company considers highly liquid investments with an original maturity of three months or less at the time of purchase and qualifying money-market funds as cash equivalents. Cash and cash equivalents are maintained with several financial institutions domestically and internationally. The combined account balances held on deposit at each institution typically exceed Federal Deposit Insurance Corporation ("FDIC") insurance coverage and, as a result, there is a concentration of credit risk related to amounts on deposit in excess of FDIC insurance coverage. The Company monitorsreduces this risk by maintaining such deposits with high quality financial institutions that management believes are creditworthy, and by monitoring this credit risk and makesmaking adjustments to the concentrations as necessary.
Restricted CashThe Company considers highly liquid investments with an original maturity of three months or less at the time of purchase and qualifying money-market funds as cash equivalents.
Restricted cash represents the Company's requirement to collateralize its letter of credit and certain capital lease obligations as well its corporate credit card obligations. As of December 31, 20172022 and 2016, the Company had $7.3 million and $4.2 million ofDecember 31, 2021, restricted cash respectively.represents security deposits for subleased office space.
Marketable SecuritiesAllowance for Doubtful Accounts
The Company classifies its marketable securities as "available for sale" and, accordingly, its marketable securities are marked to market on a quarterly basis, with unrealized gains and losses being excluded from earnings and reflected as a component of other comprehensive loss in the Consolidated Balance Sheet. Dividend and interest income is recognized when earned. Realized gains and losses are included in other income, net in the Consolidated Statements of Operations and Comprehensive Loss and are derived using the specific identification method for determining cost of securities sold. If the fair value of a marketable equity security declines below its cost basis and the decline is considered other than temporary, the Company will record a write-down, which is included in earnings. As of December 31, 2017, the Company did not have any remaining investment in marketable securities.
Cost-Method Investment
The Company has one cost-method investment in preferred stock of a company that went public in the first quarter of 2018. The $4.7 million value of the cost-method investment is included in other non-current assets in the Consolidated Balance Sheets as of both December 31, 2017 and 2016. The cost-method investment is reviewed for impairment on an annual basis or if an indicator of impairment is identified during any reporting period. There were no impairments recorded in 2017 or 2016.
Accounts Receivable, Net of Allowance
Accounts receivable are recorded at the invoiced amount and are reduced by an allowance for amounts that may be uncollectible in the future. The Company generally grants uncollateralized credit terms to its customers and maintains ancustomers. Credit risk associated with accounts receivable is mitigated by the Company's ongoing credit evaluation of its customers' financial condition. An allowance for doubtful accounts is maintained to reserve for uncollectible receivables. Allowances are based on management’smanagement's judgment, which considers historical collection experience adjusted for current conditions or expected future conditions based on reasonable and supportable forecasts, a specific review of all significant outstanding receivables, and an assessment of company specificcompany-specific credit conditions and general economic conditions. Included within accounts receivable are unbilled accounts receivable, whereManagement considered the Company has recognized revenueimpact of the COVID-19 pandemic, including customer payment delays and requests from customers to revise contractual payment terms, in determining the Company's allowance for services performed prior to invoicing a customer, but for which the Company has a legal right to invoice the customer.doubtful accounts.
The following is a summary of the activity within the allowance for doubtful accounts:
Years Ended December 31,Years Ended December 31,
(In thousands)2017 2016 2015(In thousands)202220212020
 
Beginning Balance$(2,100) $(2,689) $(1,915)Beginning Balance$(1,173)$(2,757)$(1,919)
Additions(983) (1,507) (3,167)
Bad debt (expense) benefitBad debt (expense) benefit(312)80 (1,693)
Recoveries(147) (97) (258)Recoveries(126)(161)(300)
Write-offs1,239
 2,193
 2,651
Write-offs813 1,665 1,155 
Ending Balance$(1,991) $(2,100) $(2,689)Ending Balance$(798)$(1,173)$(2,757)
Property and Equipment, net
Property and equipment is recorded at cost, net of accumulated depreciation. Propertydepreciation, and equipment is depreciated on a straight-line basis over the estimated useful lives of the assets, ranging from 32 to 510 years. Assets under capital leasesFinance lease assets are recorded at their net present value at the inceptioncommencement of the lease. Assets under capital leasesBoth finance lease assets and leasehold improvements are amortized on a straight-line basis over the shorter of the related lease terms or their useful lives. Replacements and major improvements are capitalized; maintenance and repairs are expensed as incurred.

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Capitalized Software
Capitalized software, which is includedIncluded in property and equipment, net, consists ofare capitalized software costs to purchase and develop internal-use software, which is used by usthe Company uses to provide various services to its clients. The costs to purchase and develop internal-use software are capitalized from the time that the preliminary project stage is completed, and it is considered probable that the software will be used to perform the function intended, until the time the software is placed in service for its intended use. Any costs incurred during subsequent efforts to upgrade and enhance the functionality of the software are also capitalized. Once this software is ready for use in the Company's products, these costs are amortized on a straight-line basis over the estimated useful life of the software, which is typically assessed to be 2 to to 5 years. During 2017, the Company had no capitalized software costs. During the years ended 2016December 31, 2022, 2021 and 2015,2020, the Company capitalized $0.3$17.2 million, $18.9 million (including $4.6 million recorded as part of the acquisition of Shareablee), and $15.0 million in internal-use software costs, respectively. The Company depreciated $15.1 million, $12.8 million and $0.4$9.1 million respectively. Capitalizedin capitalized internal-use software is reviewedcosts during the years ended December 31, 2022, 2021 and 2020, respectively.
Business Combination
In December 2021, the Company and two newly formed, wholly owned subsidiaries of the Company entered into the Merger Agreement with Shareablee, pursuant to which the Companyacquired Shareablee (the "Merger") as described in Footnote 3, Business Combination. Total consideration paid or payable by the Company related to the Merger (valued as of the closing date of the Merger) was $31.4 million, which included $5.6 million for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable, a recoverability analysis is performedfair value of contingent consideration payable based on the achievement of certain contractual milestones or future revenue performance. The maximum amount of contingent consideration payable under the Merger is $8.6 million.
The contingent consideration is classified as a liability due to the fact it will be settled in cash or a variable number of shares of the Company's common stock, par value $0.001 (the "Common Stock") (or a combination thereof), and the amount of the payment is not dependent upon the fair value of the Common Stock. The contingent consideration liability is measured at fair value on a recurring basis until the contingency is resolved.
The fair value of the contingent consideration liability is estimated undiscountedusing a combination of valuation techniques. One technique is an option pricing model within a Monte Carlo simulation that determines an average projected payment value across numerous iterations. This technique
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determines projected payments based on simulated revenues derived from an internal forecast, adjusted for a selected revenue volatility and risk premium based on market data for comparable guideline public companies. The other technique is a discounted cash flowsflow model that assumes achievement of the contractual milestones, resulting in payment of the full deferred amount. In both techniques, the projected payments are then discounted back to the valuation date at the Company's cost of debt using a term commensurate with the contractual payment dates.
In April 2022, the contingency was resolved and the full amount was deemed payable, subject to reduction for any pending indemnification claims and other terms set forth in the Merger Agreement. The resolution of this contingency eliminated the option pricing model as a valuation technique, and the fair value was remeasured using only the discounted cash flow model. In December 2022, the Company elected to settle the first installment of $3.7 million in cash. This amount remained outstanding as of December 31, 2022 and is scheduled to be generated from the softwarepaid in the future. Iffirst quarter of 2023. The Company expects to settle the analysis indicates thatremaining liability in two additional installments of $3.7 million and $1.2 million payable in any combination of cash and Common Stock (at the carrying value is not recoverable from future cash flows, the software cost is written down to theCompany's election) in December 2023 and 2024, respectively.
The estimated fair value of the contingent consideration liability as of December 31, 2022 was $8.2 million. The loss due to change in fair value of $2.6 million for the year ended December 31, 2022 was classified within general and an impairmentadministrative expense in the Consolidated Statements of Operations and Comprehensive Loss. Refer to Footnote7, Fair Value Measurements, for additional information on the fair value of the contingent consideration.
Cloud Computing Implementation Costs
Certain costs incurred for implementation, setup, and other upfront activities in a hosting arrangement that is recognized. These estimates are subject to revision as market conditions and as the Company's assessments change.
Internal-use software costsa service contract are capitalized during the application development stage, which is when the preliminary project stage is completestage. Upgrades and management has committed to a project to develop software thatenhancements are capitalized if they will be used for its intended purpose. Any costs incurred during subsequent efforts to significantly upgrade and enhance the functionalityresult in additional functionality. Amortization of the software are also capitalized. These capitalized costs are amortizedis recorded on a straight-line basis over their estimated useful life. Capitalizedthe term of the associated hosting arrangement, inclusive of reasonably certain renewal periods.
During the third quarter of 2021, the Company completed its implementation of a new cloud-based Enterprise Resource Planning ("ERP") system. The Company capitalized $6.8 million of eligible implementation costs in connection with its development and testing of the ERP system. These capitalized implementation costs are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable, a recoverability analysis is performed based on estimated undiscounted cash flows to be generated from the softwareclassified within other non-current assets in the future. If the analysis indicates that the carrying value is not recoverable from future cash flows, the software cost is written down to estimated fair valueConsolidated Balance Sheets. As of December 31, 2022, 2021 and an impairment is recognized. These estimates are subject to revision as market conditions2020, capitalized implementation costs, net of accumulated amortization, were $5.0 million, $6.4 million, and as the Company's assessments change.$3.2 million, respectively.
Business Combinations
The Company recognizes alldetermined the expected period of benefit of the assets acquired, liabilities assumed and contractual contingencies at their fair value on the acquisition date. The Company uses its best estimates and assumptions as a part of the purchase accounting process to accurately value assets acquired and liabilities assumed at the business combination date, however, its estimates and assumptions are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the business combination date, adjustments may be made to initial values. Acquisition-relatedcapitalized implementation costs was five years. Amortization costs are expensed as incurred. Restructuring costs incurredclassified within general and administrative expense in periods subsequent to the acquisition date are expensed when incurred. Subsequent changes toConsolidated Statements of Operations and Comprehensive Loss. The Company recorded $1.4 million and $0.7 million of amortization expense for the purchase price (i.e., working capital adjustments) or other fair value adjustments determined during the measurement period are recorded as an adjustment to goodwill.years ended December 31, 2022 and 2021, respectively.
Goodwill and Intangible Assets
Goodwill represents the excess of the purchase priceconsideration over the fair value of identifiable assets acquired and liabilities assumed when a business is acquired. The valuation of intangible assets and goodwill involves the use of management’smanagement's estimates and assumptions and can have a significant impact on future operating results. The Company initially records its intangible assets at fair value. IntangibleDefinite-lived intangible assets with finite lives are amortized over their estimated useful lives while goodwill is not amortized but is evaluated for impairment at least annually, as of October 1, by comparing the fair value of a reporting unit to its carrying value including goodwill recorded by the reporting unit.
The Company has onea single reporting unit. As such, the Company performsAccordingly, the impairment assessment for goodwill is performed at the enterprise level. Goodwill is reviewed for possible impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying value. The Company initially assesses qualitative factors to determine if it is necessary to perform the two-step goodwill impairment review. The Company reviews the goodwillGoodwill is reviewed for impairment using the two-step process if, based on itsan assessment of the qualitative factors, it determinesis determined that it is more likely than not that the fair value of itsthe reporting unit is less than its carrying value, or if itthe Company decides to bypass the qualitative assessment. The Company reviews the faircarrying value of itsthe reporting unit is reviewed utilizing a combination of the discounted cash flow model and where appropriate, a market value approachapproach. The estimated fair value of a reporting unit is also utilized to supplement the discounted cash flow model. The Company makesdetermined based on assumptions regarding estimated future cash flows, discount rates, long-term growth rates and market values to determine the estimated fair value of its reporting unit. If these estimates or related assumptions change in the future,values. Additionally, the Company may be required to recordconsiders income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment charges.loss.
The Company monitors for events and circumstances that could negatively impact the key assumptions in determining fair value, including long-term revenue growth projections, profitability, discount rates, volatility in the Company’sCompany's market capitalization, and general industry, and market and macro-economic conditions. It is possible that future changes in such circumstances, or in the variables associated with the judgments, assumptions and estimates used in assessing the fair value of the reporting unit, would require the Company to record a material non-cash impairment charge.
TheAs of September 30, 2022, the Company concluded that it was more likely than not that the estimated fair value of its reporting unit was less than its carrying value. Accordingly, in conjunction with its annual test as of October 1, 2022, the Company completed its annualassessment, and concluded that it was more likely than not that the estimated fair value of its reporting unit was less than its carrying value. In its assessment, the Company considered the decline in the Company's stock price and market capitalization among other factors. The Company performed a quantitative goodwill impairment analysestest using a discounted cash flow model, supported by a market approach. The Company's reporting unit did not pass the goodwill impairment test, and as a result the Company recorded a $46.3 million non-cash impairment charge during the three
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months ended September 30, 2022 and year ended December 31, 2022. Refer to Footnote 10, Goodwill and Intangible Assets for each offurther information. No goodwill impairment charges were recognized during the years ended 2017December 31, 2021 and 2016 and determined that there was no impairment of goodwill.2020.

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Intangible assets with finite lives are generally amortized using the straight-line method over the following useful lives:
Useful Lives (Years)
Acquired methodologies and technology5 to 7
Acquired software2
Customer relationships6 to 11
Intellectual property16
Other
Useful Lives
(Years)
Acquired methodologies/technology2 to 7
Strategic alliance10
Acquired software3
Customer relationships3 to 7
Intellectual property2 to 13
Panel1 to 7
Trade names2 to 6
Other6 to 8
Impairment of Long-Lived Assets
The Company’s long-lived assets consist of property and equipment and finite-lived intangible assets. The Company evaluates its long-liveddefinite-lived intangible assets for impairment whenever events or changes in circumstances indicate the carrying value of such assets may not be recoverable. If an indication of impairment is present, the Company compares the estimated undiscounted future cash flows to be generated by the asset group to its carrying amount. Recoverability measurement and estimation of undiscounted cash flows are grouped at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. If the undiscounted future cash flows are less than the carrying amount of the asset group, the Company records an impairment loss equal to the excess of the asset group’sgroup's carrying amount over its fair value. The fair value is determined based on valuation techniques such as a comparison to fair values of similar assets or using a discounted cash flow analysis.
Although the Company believes that the carrying values of its long-livedgoodwill and definite-lived intangible assets are appropriately stated as of December 31, 2022, changes in strategy or market conditions, significant technological developments or significant changes in legal or regulatory factors could significantly impact these judgments and require adjustments to recorded asset balances. There
Recoverability of Other Long-Lived Assets
The Company's other long-lived assets consist primarily of property and equipment and right-of-use ("ROU") assets. The Company evaluates its ROU and long-lived assets for impairment whenever events or changes in circumstances indicate the carrying value of such assets may not be recoverable. For facility lease ROU and related long-lived assets, the Company compares the estimated undiscounted cash flows generated by a sublease to the current carrying value of the ROU and related long-lived assets. The Company treats operating lease ROU assets as financing transactions, thereby excluding the operating lease liability and related lease payments from the head lease, for purposes of testing recoverability. If the undiscounted cash flows are less than the carrying value of the ROU and related long-lived assets, the Company records an impairment loss equal to the excess of the ROU and long-lived assets' carrying value over their fair value.
The Company performed an interim analysis as of March 31, 2020, as changes in market conditions indicated the carrying value of certain facility lease ROU and other long-lived assets may not be recoverable, and determined that certain ROU assets, and related leasehold improvements, were noimpaired. The Company recorded a $4.7 million non-cash impairment charges recognized duringcharge related to its ROU assets and related leasehold improvements in 2020. The impairment charge was driven by changes in the years ended 2017, 2016Company's projected undiscounted cash flows for certain properties, primarily as a result of changes in the real estate market related to the COVID-19 pandemic, that led to an increase in the estimated marketing time, and a reduction of expected receipts, for properties on the market for sublease. The fair value of these ROU assets, and related leasehold improvements, was estimated using an income approach and a discount rate of 12.0%.
The Company performed an analysis in the fourth quarter of 2022 related to the execution of a sublease for a property for which expected cash receipts were less than the disbursements for the lease. The Company recorded a $0.2 million non-cash impairment charge related to the ROU asset in 2022. The fair value of the ROU asset was estimated using an income approach and a discount rate of 7.4%.
Although the Company believes that the carrying values of its other long-lived assets are appropriately stated as of December 31, 2022, changes in strategy or 2015.market conditions, significant technological developments or significant changes in legal or regulatory factors could significantly impact these judgments and require adjustments to recorded asset balances.
Warrants Liability
In 2019, the Company issued warrants to CVI in connection with the private placement described in Footnote 5, Convertible Redeemable Preferred Stock and Stockholders' Equity. The warrants were determined to be freestanding financial instruments that qualify for liability treatment as a result of net cash settlement features associated with a cap on the issuance of shares, under certain circumstances, or upon a change of control. Changes in the fair value of these instruments are recorded in other income (expense), net in the Consolidated Statements of Operations and Comprehensive Loss.
The fair value of each warrant is estimated utilizing an option pricing model supplemented with a Monte Carlo simulation in periods with multiple warrants outstanding where certain features resulted in additional valuation complexity. Significant valuation inputs include the price and expected volatility of the Company's Common Stock, cost of debt, risk-free rate, remaining term of the warrants, and probability of change of control. In situations where a change of control was assumed, the fair values of the warrants are based on estimated cash payments at each payment date discounted back to the valuation date using the cost of debt.
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Leases
The CompanyCompany's lease portfolio is comprised of two major classes. Real estate leases, its facilities and meetswhich are the requirements to accountmajority of the Company's leased assets, are accounted for these leases as operating leases. For facilityComputer equipment leases that contain rent escalationsare generally accounted for as finance leases.
The Company determines if an arrangement is or rent concession provisions,contains a lease at inception and whether the lease should be classified as an operating or finance lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of the future minimum lease payments over the lease term. Operating ROU assets also include the impact of any lease incentives. An ROU asset and lease liability are not recorded for short-term leases with an initial term of 12 months of less.
The Company has elected to combine lease and non-lease components and account for them together as a single lease component, which increases the carrying amount of the ROU assets and lease liabilities. Non-lease components primarily include payments for common-area maintenance, utilities and other pass-through charges.
The Company uses its incremental borrowing rate to determine the present value of the future lease payments. The incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located.
The Company's lease terms include periods under options to extend or terminate the lease when it is reasonably certain that the Company recordswill exercise that option. The Company considers contractual-based factors such as the nature and terms of the renewal or termination, asset-based factors such as physical location of the asset and entity-based factors such as the importance of the leased asset to the Company's operations to determine the lease term. The Company generally uses the non-cancelable lease term when measuring its ROU assets and lease liabilities.
Payments under the Company's lease arrangements are primarily fixed; however, certain lease agreements contain variable payments, which are expensed as incurred and excluded from the measurement of ROU assets and lease liabilities. These payment amounts are affected by changes in market indices and costs for common-area maintenance, utilities and other pass-through charges that are based on usage or performance.
Operating leases are included in operating ROU assets, current operating lease liability, and non-current operating lease liability in the Consolidated Balance Sheets. The Company recognizes lease expense during the(excluding variable lease termcosts) for its operating leases on a straight-line basis over the term of the lease. The Company records the difference between the rent paid and the straight-line rent as a deferred rent liability. Leasehold improvements funded by landlord incentives or allowancesFinance lease assets are recorded as leasehold improvement assets and a deferred rent liability which is amortized as a reduction of rent expense over the lesser of the term of the lease or life of the asset.
The Company leases computer equipment and automobiles that meet the requirements to account for these as capital leases. The Company records capital leases as an asset and an obligation at an amount equal to the present value of the minimum lease payments as determined at the beginning of the lease term. Amortization of capitalized leased assets is computed on a straight-line basis over the term of the lease and is included in depreciationproperty and amortization expense.
The Company has enteredequipment, net; current finance lease liabilities are aggregated into certain software license arrangements. The Company records these software license arrangements as an intangible asset, acquired software,other current liabilities; and an obligation at an amount equal to the present value of the minimumnon-current finance lease payments. These obligations are reflectedaggregated in other non-current liabilities in the Consolidated Balance Sheets. Amortization
Income from subleased properties is recognized and presented as a reduction of these intangible assets is computed on a straight-line basis overcosts, allocated among operating expense line items, in the termConsolidated Statements of the leaseOperations and is included in Amortization of Intangible Assets.Comprehensive Loss.
Foreign Currency
Generally, the functional currency of the Company’sCompany's foreign subsidiaries is the local currency. In those cases where the transaction is not denominated in the functional currency, the Company revalues the transaction to the functional currency and records the translation gain or loss in loss from foreign currency transactions in the Company's Consolidated Statements of Operations and Comprehensive Loss. Assets and liabilities are translated at the current exchange rate as of the end of the period,year, and revenues and expenses are translated at average exchange rates in effect during the period.year. The gain or loss resulting from the process of translating a foreign subsidiariessubsidiary's functional currency financial statements into U.S. dollars,Dollars ("USD") is reflected as foreign currency cumulative translation adjustment and reported as a component of accumulated other comprehensive loss. The translation adjustment for intercompany foreign currency loans that are permanent in nature are also recorded as accumulated other comprehensive loss. Translation adjustments on intercompany accounts that are short term in nature are recorded as Lossgain (loss) from Foreign Currency Transactions.

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gains and losses related to deferred tax assets and liabilities are reflected in income tax provision in the Consolidated Statements of Operations and Comprehensive Loss.
Revenue Recognition
The Company recognizes revenues whenrevenue under the following criteria are met: (i) persuasive evidencecore principle to depict the transfer of control to its customers in an arrangement exists, (ii) delivery has occurred oramount reflecting the services have been rendered, (iii) the fee is fixed or determinable, and (iv) collection of the resulting receivable is reasonably assured.consideration to which it expects to be entitled.
The Company generates revenues fromCompany's contracts with customers may include multiple promised goods and services. Contracts with multiple performance obligations typically consist of a mix of subscriptions to the Company's online database, customized data services, and delivery of subscription-based access to the Company’s online database or by deliveringperiodic custom reports based on information obtained from the database, usuallydatabase. In such cases, the Company identifies performance obligations by evaluating whether the promised goods and services are capable of being distinct and distinct within the context of the contract at contract inception. Promised goods and services that are not distinct at contract inception are combined as one performance obligation.
Once the Company identifies the performance obligations, the Company will determine the transaction price based on contractually fixed amounts and an estimate of variable consideration. In general, the transaction price is determined by estimating the fixed amount of consideration to which the Company is entitled for transfer of goods and services and all relevant sources and components of variable consideration. Variable consideration is estimated based on the most likely amount or expected value approach, depending on which method the Company expects to better predict the amount of consideration to which it will be entitled. Once the Company elects one of the methods to estimate variable consideration for a particular type of performance obligation, the Company will apply that method consistently. Estimates of
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variable consideration are subject to constraint based on expected recovery from the customer. Sales taxes remitted to government authorities are excluded from the transaction price.
The Company allocates the transaction price to each performance obligation based on relative SSP. Judgment is exercised to determine the SSP of each distinct performance obligation. In most cases, the Company bundles multiple products and very few are sold on a standalone basis. The Company primarily applies an adjusted market assessment approach for the determination of the SSP, which is supported by rate cards and pricing calculators that are periodically reviewed and updated to reflect the latest sales data and observable inputs by industry, channel, geography, customer size, and other relevant groupings.
The Company recognizes revenue when (or as) it satisfies a performance obligation by transferring promised goods or services to a customer. Customers may obtain the control of promised goods or services over time or at a point in the form of periodic custom reports.time. Subscription-based revenues, and other products delivered continuously through a user interface, are typically recognized on a straight-line basis over an access period specified within the data delivery period, which generally ranges from three to twenty-four months. The Company recognizes revenue net of sales taxes remitted to government authorities.
respective contract. Revenues for impression-based products are also generated through survey services under contracts that generally range in term from two months to one year. Survey services consist of survey design with subsequent data collection, analysis and reporting. At the outset of an arrangement, total arrangement consideration is allocated between the development of the survey and subsequent data collection, analysis and reporting services basedtypically recognized over time, on relative selling price. Revenue allocated to the survey is recognized when it is approved bya time-elapsed basis, as the customer is continuously consuming and revenue allocated toreceiving the data collection, analysis and reporting servicesbenefits of campaign measurement, or an output method, such as volume of impressions processed during a discrete period. Report-based revenues are recognized at a point in time, which is recognized on a straight-line basis over the estimated data collection and reporting periodgenerally once the surveyproduct has been delivered. Any change in the estimated data collection and reporting period results in an adjustment to revenues recognized in future periods.
Certain of the Company’s arrangements contain multiple elements, consisting of the various services the Company offers. Multiple element arrangements typically consist of either subscriptions to multiple online products or a subscription to the Company’s online database combined with customized services. The Company allocates arrangement consideration at the inception of an arrangement to all deliverables, if they represent a separate unit of accounting, based on their relative selling prices. A deliverable qualifies as a separate unit of accounting when the delivered element has stand-alone value to the customer. The guidance establishesCompany also considers whether there is a hierarchypresent right to determinepayment, and whether the selling pricecustomer has accepted the product if such acceptance provisions are substantive.
Customers may have the right to be used for allocating arrangement consideration to deliverables: (i) vendor-specific objective evidencecancel their contracts by providing a written notice of fair value (“VSOE”), (ii) third-party evidence of selling price (“TPE”) if VSOE is not available, or (iii)cancellation, although most subscription-based contracts are non-cancelable. If a customer cancels its contract, the vendor's BESP if neither VSOE nor TPE are available. VSOE generally exists only when the Company sells the deliverable separately and is the price charged by the Company for that deliverable on a stand-alone basis. BESP reflects the Company’s estimate of what the selling price of a deliverable would be if it were sold regularly on a stand-alone basis.
The Company generally does not have VSOE for its arrangements, and TPEcustomer is generally not available because the Company’s service offerings are highly differentiated and the Company is unableentitled to obtain reliable information on the products and pricing practices of the Company’s competitors. As such, BESP is generally used to allocate the total arrangement consideration at the arrangement inception based on each element’s relative selling price.
The Company’s processa refund for determining BESP involves judgment based on multiple factors that may vary depending upon the unique facts and circumstances related to each product suite and deliverable. The Company determines BESP by considering external and internal factors including, but not limited to, current pricing practices, pricing concentrations such as industry, channel, customer class or geography, internal costs and market penetration of a product or service. The total arrangement consideration is allocated to each of the elements based on the relative selling price. If the BESP is determined as a range of selling prices, the mid-point of the range is used in the relative selling price method. Once the total arrangement consideration has been allocated to each deliverable based on the relative allocation of the arrangement fee, the Company commences revenue recognition for each deliverable on a stand-alone basis as the data or service is delivered. BESP is analyzed on an annual basis or more frequently if deemed likely that changes in the estimated selling prices have occurred.
For contracts that include variable revenue amounts, the related portion of variable revenue is deferred until the amounts are fixed or determinable and the Company is reasonably assured that the amounts due are collectible.
Generally, contracts are non-refundable and non-cancellable.prior services. In the event a portion of a contract is refundable, revenue recognition is delayed until the refund provisions lapse. Some customers haveprovision lapses. For multi-year contracts with annual price increases, the right to cancel their contracts by providing a written noticetotal consideration for each of cancellation. If a customer cancels its contract, the customer is generally not entitled to a refund for prior services.
Advance payments are recorded as deferred revenue until services are delivered or obligations are met and revenue is earned. Deferred revenue represents the excess of amounts invoiced over amounts recognized as revenues. Deferred revenue to be recognizedyears included in the succeeding twelve-month period is classified as current deferred revenue and the remaining amounts are classified as non-current deferred revenue.
The Company may enter into multiple contracts with a single counterparty. The Company determines if the contracts were contemporaneous in nature and may determine, from time-to-time, that multiple contracts shouldcontract term will be combined and accounted for asrecognized on a single arrangement.straight-line basis.

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The determination ofFor transactions that involve third parties, the Company evaluates whether it is the principal, in which case it recognizes revenue should be reported on a gross or net basis is based on an assessment of whether the Company acts as a principal or an agent in the transaction. In certain cases,basis. If the Company is consideredan agent, it recognizes revenue on a net basis. This determination can require significant judgment for certain revenue share arrangements that involve the agent, anduse of partner data in the Company's sales to end users or the use of its data in partner sales to end users. In these arrangements, the Company records revenue equalassesses which party controls the specified goods or services before they are transferred to the net amount retained when the fee is earned. In these cases, costs incurred with third-party suppliers are excluded from the Company’s cost of revenues. The Company assesses whether it or the third-party supplier is the primary obligor and evaluates the terms of its customer, arrangements as part of this assessment. In addition, the Company considerswell as other key indicators such as latitudethe party primarily responsible for fulfillment, inventory risk, and discretion in establishing price, inventory risk, nature of services performed, discretion in supplier selection and credit risk.price. 
The Company enters into a limited number of monetary contracts with MVPDs that involve both the purchase and sale of services with a single counterparty. The Company assesses eachEach contract as it is executed,assessed to determine if the revenue and expense should be presented gross or net. TheIn some instances, the Company currently presents expensesmay provide free distinct goods or services as a form of non-cash consideration to the counterparty. Revenue is recognized for these contracts netto the extent SSP is established for distinct services provided. Any excess consideration above the established SSP of subscription fees earnedservices is presented as a reduction to cost of revenues in the Consolidated Statements of Operations and Comprehensive Loss.
Nonmonetary Transactions
Nonmonetary transactions represent data exchanges, which may consist of digital usage and general demographic data. The data obtained through nonmonetary transactions differs from the data provided by the Company in the exchange. A non-monetary exchange of goods can be recorded at fair value if fair value is determinable, the exchanged goods given and received would not be held for saleof non-cash consideration included in the same line of the business and the exchange has commercial substance. None of the nonmonetary transactionsrevenues during the years ended 2017, 2016December 31, 2022, 2021and 2020 totaled $3.9 million, $4.0 million, and 2015 met$0.9 million, respectively. The fair value of non-cash consideration included in cost of revenues during the requirementsyears ended December 31, 2022, 2021 and 2020 totaled $4.1 million, $3.9 million and $1.6 million, respectively.
Contract Balances
Accounts receivable are billed and unbilled amounts where the right to recognize revenuepayment from the customer is unconditional but for the passage of time. Contract assets represent amounts where the right to payment in exchange for goods or expense under ASC 845, Nonmonetary Transactions. Therefore, nonmonetary transactions are not reflectedservices transferred is conditioned on future events, such as the entity's continued performance. The portion of contract assets to be billed in the succeeding twelve-month period are included in prepaid expenses and other current assets, and the remaining amounts are included in other assets within the Consolidated Financial Statements.Balance Sheets.
Contract liabilities relate to amounts billed in advance, or advance consideration received from customers, under non-cancelable contracts for which exchange of goods or services will occur in the future. Customer advances relate to amounts billed in advance, or advance considerations received from customers, for contracts with termination rights for which exchange of goods or services will occur in the future. The portion of contract liabilities and customer advances to be recognized in the succeeding twelve-month period are presented separately within current liabilities, and the remaining amounts are included in other non-current liabilities within the Consolidated Balance Sheets.
Remaining Performance Obligations
The Company elected an optional exemption to not disclose information about the amount of the transaction price allocated to remaining performance obligations for contracts that have an original expected duration of one year or less. The amount disclosed for remaining performance obligations also excludes variable consideration from unsatisfied performance obligations within a series where revenue is recognized using an output method, such as volume of impressions processed.
Costs to Fulfill a Contract
Certain costs to fulfill are capitalized for contracts where the transfer of goods and services will occur in the future. Typically, these capitalized costs are incurred during a setup period prior to transferring control of the good or service over time. These costs include dedicated employees, subcontractors, and other third-party costs. Capitalized costs are assessed for recoverability at each reporting period. These costs are included in cost of revenues and are recognized in the same manner as the corresponding performance obligation. For the years ended December 31, 2022, 2021 and 2020, amortized and expensed contract costs were zero, $2.7 million and $1.4 million, respectively.
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Cost of Revenues
Cost of revenues consists primarily of expenses relatedcosts to consumer panels, which are used to collectproduce the Company's products including viewing data on PC, tablet, smartphonefrom MVPDs, census-based, panel and other digital devicesthird-party data as well as costs to operate its network infrastructure including data center, data storage and survey operations, custom analytics and technical support departments, which consists largely of employee related expenses including salaries, stock-based compensation and benefits.compliance costs. Other costs include third-party data collectionamortization of capitalized fulfillment costs, and data centeremployee costs including stock-based compensation, depreciation expense associated with computer equipment that supportsrelated to assets used to maintain the panelsnetwork and systems. In addition, we allocate a portion ofproduce products and allocated overhead, costs including rent and depreciation expenseexpenses generated by general purpose equipment and software.
Selling and Marketing
Selling and marketing expenses consist primarily of salaries, commissions, stock-based compensation, benefits commissions and bonuses paid to the directfor personnel associated with sales force and industry analysts,marketing activities, as well as costs related to online and offline advertising, product management, seminars, promotional materials, public relations, other sales and marketing programs, and allocated overhead, including rent and other facilities related costs, and depreciation.
Research and Development
Research and development expenses consist primarily of salaries, stock-based compensation, benefits and related costs for personnel associated with research and development activities and allocated overhead, including rent and other facilities related costs, and depreciation.
General and Administrative
General and administrative expenses consist primarily of salaries, stock-based compensation, benefits and related costs for executive management, finance, accounting, human capital, legal, information technology and other administrative functions, as well as professional fees and allocated overhead, including rent and other facilities related costs, depreciation and expenses incurred for other general corporate purposes.
InvestigationResearch and Audit RelatedDevelopment
InvestigationResearch and development expenses are professional feesconsist primarily of salaries, stock-based compensation, benefits and related costs for personnel associated with legalresearch and forensic accounting services rendereddevelopment activities, as a result of the Audit Committee's investigationwell as allocated overhead, including rent and other facilities related costs, and depreciation.
Other Income (Expense), Net
Other income (expense), net represents income and expenses incurred that beganare generally not recurring in the first quarter of 2016, as described in Footnote 1, Organization. Audit related expenses consist of professional fees associated with accounting related consulting services and external auditor fees associated with the auditnature or are not part of the Company's financial statements. Also included are litigation related expenses, which include legal fees associated with various lawsuits or investigations that were initiated either directly or indirectly as a result of the Audit Committee's investigation.

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Advertising Costs
Advertising costs includes expenses associated with direct marketing but does not include the cost of attendance at events or trade shows. Advertising costs, all of which are expensed as incurred, included in selling and marketing expense, totaled $0.1 million, $0.2 million, and $0.2 million for the years ended December 31, 2017, 2016 and 2015, respectively.
Other Income, Net
normal operations. The following is a summary of the significant components of other income (expense), net:
 Years Ended December 31,
(In thousands)202220212020
Change in fair value of financing derivatives$— $1,800 $10,287 
Change in fair value of warrants liability9,802 (7,689)4,894 
Other(17)111 (627)
Total other income (expense), net$9,785 $(5,778)$14,554 
 Years Ended December 31,
(In thousands)2017 2016 2015
Transition services agreement income from the Digital Analytix ("DAx") disposition$11,080
 $12,395
 $
Gain on forgiveness of obligation (1)
4,000
 
 
Other125
 (24) 9
Total other income, net$15,205
 $12,371
 $9
Debt Issuance Costs
(1)In September 2017, the Company and Adobe Systems Incorporated ("Adobe") agreed to terminate the Strategic Partnership Agreement and Adobe released the Company from its remaining obligation.
Concentration of Credit Risk
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, restricted cash, marketable securities and accounts receivable. The Company maintains cash depositsreflects debt issuance costs in the Consolidated Balance Sheets as a direct deduction from the gross amount of debt, consistent with financial institutions that, from timethe presentation of a debt discount. Debt issuance costs are amortized to time, exceed applicable insurance limits. The Company reduces this risk by maintaining such deposits with high quality financial institutions that management believes are creditworthy. With respect to accounts receivable, credit risk is mitigated byinterest expense, net over the Company’s ongoing credit evaluationterm of its customers’ financial condition. The marketable securities, of which the Company held none as of December 31, 2017, are generally held in a single diversified short duration fixed-income mutual fund.underlying debt instrument, utilizing the effective interest method.
Stock-Based Compensation
The Company estimates the fair value of stock-based awards on the date of grant.their grant date. The fair value of stock options with only service conditions is determined using the Black-Scholes option-pricingoption pricing model. The fair value of restricted stock units and restricted stock awards("RSUs") is based on the closing price of the Company’sCompany's Common Stock on the date of grant.grant date. The Company amortizes the fair value of awards expected to vest on a straight-line basis over the requisite service periods of the awards, which is generally the period from the grant date to the end of the vesting period. The determination of the fair value of the Company’sCompany's stock option awards is based on a variety of factors, including, but not limited to, the Company’sCompany's Common Stock price, risk freerisk-free rate, expected stock price volatility over the expected life of awards, dividend yield and actual and projected exercise behavior. Additionally, the Company has estimated forfeitures for stock-based awards at the dates of grant based on historical experience and adjusted for future expectation. The Company performs a reviewexpected term of the forfeiture rate assumption at least annually or as deemed necessary if there are changes that could potentially significantly impact the future rate of forfeiture of its stock-based awards. The forfeiture estimate is revised as necessary if actual forfeitures differ from these estimates.option.
The Company issues restricted stock options with a vesting period based solely upon the passage of time (service vesting). To determine the expected term of the option the Company applies the simplified method for plain-vanilla options due to the lack of significant historical exercise experience. For non-employee options that do not qualify as plain-vanilla the Company has elected to apply the contractual term of the award.
The Company issues RSU awards with restrictions that lapsea vesting period based solely upon the passage of time (service vesting), achieving performance targets, fulfillment of market conditions, or some combination.a combination thereof. For those restricted stockRSU awards with only service vesting, the Company recognizes compensation cost on a straight-line basis over the service period. For awards with performance conditions only, or both performanceservice and serviceperformance conditions, the Company starts recognizing compensation cost over the remaining service period when it is probable the performance conditionconditions will be met. Stock awards that contain performance vesting conditions are excluded from diluted earnings per share ("EPS") computations until the contingency is met as of the end of that reporting period.
Due to
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For awards with both service and market conditions, the Company’s inability to file its periodic reportsCompany recognizes compensation cost over the remaining service period, with the U.S. Securitieseffect of the market condition reflected in the determination of the award's fair value at the grant date. The Company values awards with market conditions using certain valuation techniques, such as a lattice model or Monte Carlo simulation analysis. The Company determines the requisite service period based on the longer of the explicit service period and Exchange Commission ("SEC"),the derived service period. Stock awards that contain market vesting conditions are included in the computations of diluted EPS reflecting the number of shares that would be issued based on the current market price at the end of the period being reported on, if their effect is dilutive.
Under the Company's annual incentive compensation plan, the Company has been unablemay grant immediately vested RSUs to use its registration statement on Form S-8 tocertain employees. For these awards, stock-based compensation expense is accrued commencing at the service inception date, which generally precedes the grant equity awards to employees, including executive officers, since February 2016. Further, in March 2017,date, through the Company's 2007 Equity Incentive Plan's ten-year term expired. end of the requisite service period.
The Company expects to propose a new equity incentive planestimates forfeitures for adoptionstock-based awards at its next annual meeting of stockholders, and totheir grant equity awards once that plan is adopted. As of December 31, 2017, and in accordance with the Company's compensation program for all employees and directors, the Company anticipates making equity awards having an aggregate value of $42.9 million, of which $16.9 million was accrued. These awards were recommended for employees and directors in 2016 and 2017 but were not granteddate based on historical experience. The estimated forfeiture rate as of December 31, 2017. Based on the closing bid price2022, 2021 and 2020 was 10.0% for non-executive awards. Awards granted to senior executives have an estimated forfeiture rate of the Company's Common Stock on the OTC Pink Tier on March 15, 2018, $26.29 per share, it would expect to award approximately 1,633,146 shares in connection with the equity awards known aszero. The Company performs a review of December 31, 2017. In addition, the Company expects to issue additional equity awards for 2017 service or otherwise. The actual number of

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shares issued will be based upon the prevailing trading price of the Company's Common Stock at the time the shares are actually issued. The pending or contemplated equity awards have vesting terms ranging from immediate vesting at time of grant to four-year vesting terms. The expected to vest fair value of the unvested equity awards at the grant date will amortize ratablyits forfeiture rate assumption on a straight-line basis overquarterly basis. Changes in the requisite service period ofestimates and assumptions relating to forfeitures and subsequent grants may result in material changes to stock-based compensation expense in the awards, the period from the grant date to the end of the vesting period.future.
Income Taxes
Income taxes are accounted for using the asset and liability method. Deferred income taxes are provided for temporary differences in recognizing certain income, expense and credit items for financial reporting purposes and tax reporting purposes. Such deferred income taxes primarily relate to the difference between the tax bases of assets and liabilities and their financial reporting amounts. Deferred tax assets and liabilities are measured by applying enacted statutory tax rates applicable to the future years in which deferred tax assets or liabilities are expected to be settled or realized. Accounting Standards Update ("ASU") 2016-09, Compensation - Stock Compensation (Topic 718) ("ASU 2016-09"), contains several amendments that simplify the accounting for employee share-based payment transactions, including the accounting for income taxes. The new standard eliminates the accounting recognition for excess tax benefits in additional paid-in capital and the recognition of tax deficiencies either as an offset to accumulated excess tax benefits in Additional Paid-In Capital or in the income tax provision. For tax benefits that were not previously recognized because the related tax deduction had not reduced taxes payable, a cumulative-effect adjustment must be recorded in retained earnings as of the beginning of the year of adoption, net of any valuation allowance required on the deferred tax asset created by the transition guidance. The Company adopted ASU 2016-09 in the first quarter of 2016 and has applied the modified retrospective approach. Early adoption of the new standard resulted in an adjustment as of January 1, 2016 to accumulated stockholders' deficit of $0.3 million related to the tax benefits of a foreign subsidiary. Beginning in 2016, all excessExcess tax benefits and tax deficiencies are recognized in the income tax provision in the period in which they occur.
The Company records a valuation allowance when it determines, based on available positive and negative evidence, that it is more-likely-than-not that some portion or all of its deferred tax assets will not be realized. The Company determines the realizability of its deferred tax assets primarily based on the reversal of existing taxable temporary differences and projections of future taxable income (exclusive of reversing temporary differences and carryforwards). In evaluating such projections, the Company considers its history of profitability, the competitive environment, and general economic conditions. In addition, the Company considers the time frame over which it would take to utilize the deferred tax assets prior to their expiration.
For certain tax positions, the Company uses a more-likely-than-not threshold based on the technical merits of the tax position taken. Tax positions that meet the more-likely-than-not recognition threshold are measured at the largest amount of tax benefits determined on a cumulative probability basis, which are more-likely-than-not to be realized upon ultimate settlement in the financial statements. The Company’sCompany's policy is to recognize interest and penalties related to income tax matters in income tax expense.
OnIn December 22, 2017, U.S. tax reform legislation known as the Tax Cuts and Jobs Act (the “TCJA”"TCJA") was signed into law. The TCJA made substantial changes to U.S. tax law,Company determined the effects of certain provisions, including but not limited to: a reduction in the corporate tax rate from 35% to 21%, a limitation onof the deductibility of interest expense, a limitation on the use of net operating losses to offset future taxable income, the allowance of immediate expensing of capital expenditures, deemed repatriation of foreign earnings through a transition tax and significant changes to the taxation of foreign earnings going forward. While these provisions are not effective until January 1, 2018 and beyond, the Company is required to recognize the effect of certain legislative changes, such as the change in tax rates, in the period the change is enacted.
In December 2017, the SEC staff issued Staff Accounting Bulletin ("SAB") 118, which provides guidance on how to appropriately report significant legislative changes in financial statements when the accounting for the changes has not been completed. The guidance allows companies to report a provisional amount based on a reasonable estimate of the impact in their financial statements that can be adjusted during a one-year measurement period, similar to the accounting for business combinations.
As of December 31, 2017, the Company considers accounting to be complete for the reduction in the U.S. corporate income tax rate, which resulted in an income tax benefit of $3.6 million for the re-measurement of its deferred tax liabilities associated with tax deductible goodwill and other indefinite-lived liabilities that are deemed to reverse at the lower tax rate. Absent these deferred tax liabilities, the Company is in a net U.S. deferred tax asset position that is offset by a full valuation allowance. The amount of valuation allowance required against the Company’s U.S. deferred tax assets also changed as a result of certain provisions in the TCJA, for which an income tax benefit of $4.7 million has been recorded. The Company considers the accounting to be complete for this change as well.
The TCJA includes a one-time mandatory repatriation transition tax on the net accumulated earnings and profits of a U.S. taxpayer’s foreign subsidiaries. The Company has performed an earnings and profits analysis and has determined that there will be no income tax effect in the current period. As such, the preliminary accounting for this matter is generally complete.
The other significant provisions of the TCJA are not yet effective but may impact income taxes in future years. These include: an exemption from U.S. tax on dividends of future foreign earnings,officers' compensation, a limitation on the current deductibility of net interest expense in excess of 30% of adjusted taxable income, a limitation of net operating losses generated after 2018 to 80% of taxable income,

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an incremental tax (base erosion anti-abuse tax or “BEAT”"BEAT") on excessive amounts paid to foreign related parties, and a minimum tax on certain foreign earnings in excess of 10% of the foreign subsidiariessubsidiaries' tangible assets (global intangible low-taxed income or “GILTI”"GILTI"). As part of its GILTI review, the Company has determined that it will account for GILTI income as it is generated (i.e., treat it as a period expense). Given the Company's loss position in the U.S. and the valuation allowance recorded against its U.S. net deferred tax assets, these provisions have not had a material impact on the Company's consolidated financial statements.
Beginning in 2022, the TCJA eliminated the option to immediately deduct research and experiment ("R&E") expenditures in the year incurred pursuant to Internal Revenue Code Section 174 ("Section 174"). The Companyamended provision under Section 174 requires taxpayers to capitalize and amortize these expenditures over five years for research performed in the U.S. and over 15 years for research performed outside the U.S. While it is still reviewingpossible that Congress may defer, modify or repeal this provision, potentially with retroactive effect, it was not deferred, modified or repealed as of December 31, 2022. Due to the Company's federal and assessing these provisionsstate net operating loss ("NOL") carryforwards, the amended provision under Section 174 only increased the Company's state cash taxes payable and their potentialreduced its cash flow from operating activities by an immaterial amount in 2022. The capitalized R&E expenditure merely caused a reclassification between the NOL deferred tax asset and capitalized R&E deferred tax asset as of December 31, 2022. Because the Company's deferred tax assets have a full valuation allowance against them, the amended provision under Section 174 did not impact on its financial results.the Company's tax rate or results of operations.
Loss Per Share
BasicThe Company uses the two-class method to calculate net loss per share. The two-class method is an earnings allocation formula that treats a participating security as having rights to earnings that otherwise would have been available to common share excludes dilutionstockholders. Under the two-class method, earnings for potential Common Stock issuancesthe period are allocated between common stockholders and participating security holders based on their respective rights to receive dividends as if all undistributed book earnings for the period were distributed.
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Basic loss per share is computed by dividing net loss available to only the common stockholders by the weighted-average number of common shares outstanding for the period. In periods where the Company reports a netDiluted loss per share includes the effect of anti-dilutivepotential common shares, such as the Company's Preferred Stock, Notes, warrants, stock options, restricted stock units and non-vested restricteddeferred stock awards areunits, to the extent the effect is dilutive. In periods with a net loss available to common stockholders, the anti-dilutive effect of these potential common shares is excluded and diluted net loss per share is equal to basic net loss per share.
The weighted-average shares outstanding forfollowing is a summary of the Common Stock used in per share calculations,equivalents for the securities outstanding during the respective periods that have been adjusted to reflect share repurchases made during the years ending 2017, 2016 and 2015.
The dilutive effect of stock options, restricted stock units, and restricted stock of 2,837,872, 3,083,668 and 782,657 were not included inexcluded from the computation of diluted net loss per common share, for the years ended 2017, 2016 and 2015, respectively, as their effect would be anti-dilutive.anti-dilutive:
Comprehensive Loss
 Years Ended December 31,
 202220212020
Preferred stock (1)
85,708,360 66,926,499 — 
Warrants5,457,026 5,457,026 6,306,964 
Stock options, restricted stock units and deferred stock units4,981,624 5,073,980 3,898,327 
Contingent Consideration (2)
4,220,690 — — 
Senior secured convertible notes— 1,232,483 6,519,655 
Total100,367,700 78,689,988 16,724,946 
Comprehensive loss consists(1) Includes the effect of net loss, foreign currency translation adjustments and the change in unrealized gains (losses) on investments in marketable securities.
Accounting Standards Recently Adopted
In April 2014, the Financial Accounting Standards Board ("FASB")potential Common Stock that would be issued ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. This standard requires that the disposal of a component of an entity shall be reported in discontinued operations if the disposal represents a strategic shift that will have a major effect on an entity's operations and financial results. The Company adopted this standard effective January 1, 2015. In January 2016, the Company executed a definitive agreement to sell or exclusively license certain assets, rights and properties primarily relatedsettle unpaid dividends accrued to the business operationsholders of the Company’s DAx solution, including certain exclusively DAx-related agreements with customers and certain intellectual property. This disposition did not meet the definition of a strategic shift as defined in ASU 2014-08 and as a result was not presented as discontinued operations.
In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40) (Topic 718): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. This ASU requires an entity to evaluate whether conditions or events, in the aggregate, raise substantial doubt about the entity's ability to continue as a going concern for one year from the date the financial statements are issued or are available to be issued. The new guidance is effective for annual periods and interim periods within those annual periods ending after December 15, 2016. The Company adopted this standard effective January 1, 2016 and it did not have an effect on the Company's Consolidated Financial Statements.
In April 2015, the FASB issued ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40). This ASU provides guidance about whether a cloud computing arrangement includes a software license. When a cloud computing arrangement includes a software license, the software license element of the arrangement should be accounted for consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the arrangement should be accounted for as a service contract. The Company adopted this standard effective January 1, 2016. The impact of adoption of this ASU resulted in a total of $8.8 million for certain software license arrangements that would have been classified as property and equipment to instead be reflected as an intangible asset, acquired software, in the Consolidated Balance Sheets. In addition, these obligations are reflected in Other Liabilities in the Consolidated Balance Sheets.
In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes, which amends existing guidance to require deferred income tax assets and liabilities to be classified as non-current in a classified balance sheet, and eliminates the prior guidance which required an entity to separate deferred tax assets and liabilities into a current amount and a non-current amount in a classified balance sheet. The Company hasPreferred Stock if they elected to apply ASU 2015-17 retrospectively to all deferred tax assets and liabilities for all periods presented.
In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which simplifies certain aspects of the accounting for share-based payment transactions, including income taxes, classification of awards and classification in the statement of cash flows. ASU 2016-09 is effective for public business entities for annual reporting periods beginning after December 15, 2016, and interim periods within that reporting period. Early adoption is permitted in any interim or annual period, with any adjustments reflected as of the beginning of the fiscal year of adoption. The changes in the new standard eliminate the accounting for excess tax benefits to be recognized in additional paid-in capital and tax deficiencies recognized either in the income tax provision or in additional paid-in capital. The Company elected early adoption of ASU 2016-09 in the first quarter of 2016, which has been applied using a modified retrospective approach. There was no significant change to retained earnings with respect to excess tax benefits, as a result of the Company's valuation allowance on its deferred tax assets. During

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2016, the Company recognized an increase to accumulated deficit of $0.3 million. With the early adoption of ASU 2016-09, the Company elected to present the Consolidated Statements of Cash Flows on a prospective transition method and no prior periods have been adjusted. The Company elected to continue an entity-wide accounting policy election to estimate the number of awards that are expected to vest.
In November 2016, the FASB issued ASU 2016-18, Restricted Cash, which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This standard is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years, and should be applied on a retrospective transition basis. Early adoption is permitted, including adoption in an interim period as of the beginning of an annual reporting period for which interim or annual financial statements have not been issued or made available for issuance. The Company adopted this ASU, effective January 1, 2016. As the Company did not have restricted cash prior to January 1, 2016, there was no effect following adoption of this ASU on any prior period financial statements.
Recently Issued Accounting Pronouncements
In May 2014, the FASB issued a new accounting standard related to revenue recognition, ASU 2014-09, Revenue from Contracts with Customers ("ASC 606"). The new standard will supersede the existing revenue recognition requirements under U.S. GAAP and will require entities to recognize revenue when they transfer control of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. It also will require increased disclosures regarding the nature, amount, timing, and uncertainty of revenues and cash flows arising from contracts with customers.
The new standard allows two methods of adoption: i) full retrospective method and ii) modified retrospective method. The Company adopted ASC 606 as of January 1, 2018 using the modified retrospective transition method, and will recognize the cumulative effect of adopting this guidance as an adjustment to the opening balance of accumulated deficit. Prior periods will not be retrospectively adjusted.
The Company is currently implementing the new standard and, to that end, comScore has established a project manager as well as a cross-functional implementation team consisting of representatives from across all of the Company’s business units as well as external consultants. The Company has completed the assessment and design phases for all business units and is currently in the implementation phase. The Company is on schedule in establishing new accounting policies, implementing process changes and internal controls necessary to support the requirements of the new standard which was adopted as of January 1, 2018.
The Company further expects other policies to be impacted as follows:
Under the Company's current commission plan, the Company expects costs to obtain a contract (generally commissions) to qualify for the practical expedient allowing such costs to be expensed as incurred, consistent with the Company's current policy. This conclusion could change in the future if the Company's underlying commission plans change.
Certain fulfillment costs may meet the criteria for capitalization as they relate directly to a contract, generate or enhance a resource being used in satisfying the Company's performance obligation, and are expected to be recovered.  
Based on currently available information, management does not expect that the adoption of ASC 606 will have a material impact on the Company's financial statements except for the required financial statement disclosures.
In February 2016, the FASB issued ASU 2016-02, Leases. ASU 2016-02 requires, among other things, a lessee to recognize a right-of-use asset representing an entity's right to use the underlying asset for the lease term and a liability for lease payments on its balance sheet, regardless of classification of a lease as operating or financing. For leases with a term of twelve months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and liabilities and account for the lease similar to existing guidance for operating leases today. This new guidance supersedes all prior guidance. The guidance is effective for interim and fiscal years beginning after December 15, 2018. Early adoption is permitted. The standard requires lessees and lessors to recognize and measure leasesconvert their shares at the beginning of the earliest period presented using a modified retrospective approach. The Company is in(or at the processtime of evaluating the impact of this new guidance on its Consolidated Financial Statements.issuance, if later).
In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Clarification of Certain Cash Receipts and Cash Payments. The objective of ASU 2016-15 is to reduce the diversity in practice related to the classification of certain cash receipts and cash payments in the statement of cash flows, by adding or clarifying guidance on eight specific cash flow issues. For public business companies, ASU 2016-15 is effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted. The amendments in this standard should be applied retrospectively to all periods presented,

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unless deemed impracticable, in which case, prospective application is permitted. The Company is evaluating the impact to its Consolidated Financial Statements.
In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which eliminates the requirement to compare the implied fair value of goodwill with its carrying amount(2) A contingent consideration liability was recognized as part of step 2 of the goodwill impairment test. As a result, under the ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the impairment loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. This guidance is effective prospectively for fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed after January 1, 2017.acquisition described in Footnote 3, Business Combination. The Company is evaluating the impact to its Consolidated Financial Statements.
In May 2017, the FASB issued ASU 2017-09, Scope of Modification Accounting, which amends the scope of modification accounting for share-based payment arrangements, provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity wouldliability payments may be required to apply modification accounting under ASC 718, Compensation - Stock Compensation. For all entities, the ASU is effective for annual reporting periods, including interim periods within those annual reporting periods, beginning after December 15, 2017. Early adoption is permitted, including adoptionsettled in any interim period. The Company is evaluating the impact to its Consolidated Financial Statements.
In July 2017, the FASB issued ASU 2017-11, Earnings Per Share, Distinguishing Liabilities from Equity; Derivatives and Hedging. This update was issued to address complexities in accounting for certain equity-linked financial instruments containing down round features. The amendment changes the classification analysiscombination of these financial instruments (or embedded features) so that equity classification is no longer precluded. The amendments in ASU 2017-11 are effective for annual reporting periods beginning after December 15, 2018, including interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company is evaluating the impact to its Consolidated Financial Statements.
Other new pronouncements issued but not effective until after December 31, 2017, are not expected to have a material impact on the Company’s Consolidated Financial Statements.

3.Business Combinations and Acquisitions
Rentrak Merger
On January 29, 2016, the Company completed a merger (the "Merger") with Rentrak for total consideration of $753.4 million. Pursuant to the Agreement and Plan of Merger and Reorganization, dated as of September 29, 2015, Rum Acquisition Corporation, an Oregon corporation and a wholly-owned subsidiary of the Company, merged with and into Rentrak with Rentrak surviving the Merger as a wholly-owned subsidiary of the Company. The key economic drivers underlying the Merger include Rentrak’s complementary proprietary technology and services in the television market, the ability to combine the Company’s digital information with Rentrak’s television information to provide cross-media products and services, as well as the opportunities to cross-sell to each other’s customer base.
As a result of the Merger, each share of Rentrak common stock, par value $0.001 per share, that was outstanding prior to the effective time of the Merger (the "Effective Time") was converted into the right to receive 1.15cash or shares of Common Stock par value $0.001based on the volume-weighted average trading price of the Common Stock for the ten trading days prior to the date of each payment. Settlement of this liability in Common Stock could potentially dilute basic earnings per share in future periods. The Company calculated a potential anti-dilutive share count based on the maximum contingent consideration as of December 31, 2022 of $4.9 million and the $1.16 per share closing price of the Company's Common Stock on the Nasdaq Global Select Market on December 30, 2022. The impact was determined to be negligible for 2021 based on the period the liability was outstanding.
For the year ended December 31, 2022, dividends paid to holders of the Preferred Stock totaled $15.5 million. These dividends have been included in calculating the total loss available to common stockholders used in the calculation of basic and diluted loss per share. No fractional
3.Business Combination
On December 16, 2021, the Company and two newly formed, wholly owned subsidiaries of the Company entered into the Merger Agreement with Shareablee, pursuant to which the Company acquired Shareablee. Total consideration payable to the former holders of Shareablee's capital stock and warrant, and certain underlying equity awards that were assumed by the Company, totaled 9,128,964 shares of Common Stock. This included 7,945,519 shares of Common Stock were issued in the Merger, and holders of shares of Rentrak common stock received cash in lieu of any fractional shares. At the Effective Time, the Company assumed all restricted stock units ("RSUs") representing the right to receive shares of Rentrak common stock (each an "Assumed Unit") that were outstanding immediately prior to the Effective Time. Each Assumed Unit was converted into 1.15 RSUs of the Company, each such RSU representing the right to receive one share of Common Stock. Each Assumed Unit is otherwise subject to the same terms and conditions (including as to vesting and issuance) as were applicable under the respective Rentrak RSU immediately prior to the Effective Time.
A portion of the outstanding Rentrak equity awards vested simultaneously with theissuable at closing, of the Merger based upon certain change-in-control provisions that had been recently added to the applicable award terms, and as a result, the Company recorded stock-based compensation expense of $21.9 million immediately following the Merger. Also at the Effective Time, the Company assumed outstanding options and outstanding stock appreciation rights ("SAR") to purchase shares of Rentrak common stock, including options/SARs held by the Rentrak directors and executive officers. These options/SARs were automatically converted into 1.15 options/SARs to purchase the number of1,062,085 shares of Common Stock of the Company, with such product rounded downissuable pursuant to the nearest whole sharereplacement stock options and restricted stock unit awards, and 121,357 shares of Common Stock. The as-converted exercise price per share for each assumed Rentrak option/SAR is equalStock subject to the exercise/base price per shareholdback pending final working capital adjustments. In addition, certain holders of the Rentrak option/SAR divided by 1.15, with such quotient roundedShareablee's capital stock, warrant and equity awards may also receive up to an aggregate of $8.6 million of contingent consideration over three years after the nearest whole cent.
Each assumed Rentrak option/SAR is otherwiseclosing, subject to the same termssatisfaction of certain conditions set forth in the Merger Agreement. The contingent consideration is payable in any combination of cash and conditions (including vestingCommon Stock, with any issuance of Common Stock to be based on the volume-weighted average trading price of the Common Stock for the ten full trading days ending on, and exercisability) as were applicable underincluding the respective Rentrak option/SAR immediatelylast business day prior to, the Effective Time.applicable date of the release of the contingent payment. The amount of contingent consideration is based on the achievement of certain contractual milestones or a revenue target. Lastly, the Merger Agreement required a portion of cash held in escrow at closing to be paid to the former holders of Shareablee securities.

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TableItzhak Fisher, a member of Contents


the Company's Board, is a former director, stockholder and equity award holder of Shareablee. The fair value of Mr. Fisher's issuable Common Stock and replacement stock options totaled $0.7 million at closing, of which $0.4 million was recognized immediately as stock-based compensation expense and $0.3 million was classified as purchase consideration. Mr. Fisher is also eligible to receive $0.3 million in contingent consideration pursuant to the terms described above.
The total consideration paid or payable by the Company related to the Merger was $753.4$31.4 million. A summary of the consideration is as follows:
(In thousands)Fair Value
Common Stock (1)
$25,329 
Contingent consideration (2)
5,600 
Replacement stock options and restricted stock unit awards260 
Escrow payable to former stockholders184 
Total purchase consideration$31,373 
(in thousands except for share and per share amounts):Total Consideration
Total Common Stock shares issued upon consummation of the Merger17,963,677
Share price of Common Stock upon consummation of the Merger$39.65
Fair value of Common Stock shares issued upon consummation of the Merger$712,260
Fair value of vested Rentrak RSUs, stock options and SAR assumed39,111
Fair value of unvested Rentrak stock options assumed1,077
Fair value of unvested Rentrak RSUs assumed962
Cash paid in lieu of fractional shares8
Total purchase consideration$753,418
(1) Calculated based on 7,945,519 shares of Common Stock issued upon closing, an estimated 121,360 shares of Common Stock to be issued upon completion of a final working capital assessment, and the $3.14 per share closing price of the Company's Common Stock on the Nasdaq Global Select Market on December 16, 2021.
The Company engaged an independent(2) Refer to Footnote 2, Summary of Significant Accounting Policies for additional information on the selected valuation firm to provide information regardingtechnique, and Footnote 7, Fair Value Measurements for inputs in deriving the fair value as of certain of the assets being acquired and liabilities assumed.December 16, 2021. The Company concluded any change in fair value between December 16, 2021 and December 31, 2021 was negligible.
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Table of the definite-lived intangible assets acquired was determined based upon a forecast of the economic benefits of the Merger using discount rates appropriate to the specific assets acquired and liabilities assumed, ranging from 4.1% - 8.0%.Contents

A summary of the total purchase consideration for RentrakShareablee that was allocated to the estimated relative fair value of theacquired assets and liabilities based on their fair value as of the date of acquisitionthe Merger is as follows:
(In thousands)Fair Value
Cash and cash equivalents$37,086
Marketable securities30,431
Accounts receivable21,931
Other current assets3,135
Property and equipment9,190
Goodwill510,229
Definite-lived intangible assets170,283
Other assets5,355
Subscription Receivable14,475
Deferred revenue(7,780)
Accounts payable and accrued expenses(32,640)
Deferred tax liabilities(7,247)
Other liabilities(1,030)
Total purchase consideration$753,418
(In thousands)December 16, 2021
Net working capital$(2,212)
Property and equipment, net4,578 
Deferred tax liabilities(2,817)
Other assets and liabilities(22)
Definite-lived intangible assets12,644 
Goodwill19,202 
Total purchase consideration$31,373 
The goodwill and intangible assets recorded as a result of this acquisitionthe Merger are not deductible for income tax purposes. The goodwill represents the residual amount of the total purchase price after determining the fair value for the net assets and identifiable intangible assets acquired. The goodwill includes the value of the RentrakShareablee acquired workforce, the expected cost synergies to be realized by the Company following the Merger, as well the opportunity to combine the Company’sCompany's digital information with Rentrak’s television informationShareablee's social data and insights to provide cross-media products and servicesenhance the Company's syndicated product offerings, and the opportunitiesopportunity to sell RentrakShareablee products to the Company's customer base.
Included in the assets acquired were two contracts with wholly owned subsidiaries of WPP plc ("WPP"), reflected in the opening balance sheet as Subscription Receivable at the net present value of $4.2 million and $10.3 million, respectively, and following the consummation of the Merger were classified as contra equity within additional paid-in capital on the Company's Consolidated Statements of Stockholders' Equity. As cash is received on the Subscription Receivable, the Subscription Receivable is reduced by the amount of cash received and results in an increase to additional paid-in capital. The Company anticipates that as of December 31, 2018, all cash will be received on these contracts. In addition, the Company recognized interest income related to these agreements during the years ended 2017 and 2016 of $0.4 million and $0.5 million, respectively.

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The following table outlines the fair value of the definite-lived intangible assets and the useful life for each type of intangible asset acquired. The intangible assets are amortized using a straight-line method over the respective useful life of the intangible asset.
(In thousands)Useful Lives (Years)Fair Value
Customer relationships (1)
5$6,600 
Acquired methodologies and technology (1) (2)
56,044 
Total definite-lived intangible assets$12,644 
(In thousands)Fair ValueUseful Lives (Years)
Customer relationships$29,000
7
Acquired methodologies/technology139,883
7
Other1,400
6 - 8
 $170,283
 
(1) The fair values of these assets are derived from techniques which utilize inputs, certain of which are significant and unobservable, that result in classification as Level 3 fair value measurements. Refer to Footnote 2, Summary of Significant Accounting Policies for additional information on the selected valuation techniques.
(2)The Company determined theacquisition-date fair value of Rentrak's customer relationships using a "costs to recreate"acquired methodologies and "lost-profits" methodology oftechnology was $10.6 million. The $6.0 million recognized within intangible assets, net reflects the cost approach and includes customers from both television and movie industries. The Company determined theincremental fair value adjustment to $4.6 million of capitalized internal-use software costs recorded at net book value within property and equipment, net as of December 16, 2021.
The primary assets acquired were the acquired methodologies/technology using a forecast of after-tax cash flows attributable to thedeveloped methodologies and technology. These developed platformstechnology, which include a proprietary taxonomy and analytics platform whichthat processes and repackages television viewershipinformation on social media data and an additional platform that has the ability to capture and report expected and actual box office results based on hundreds of millions of movie-going transactions per year. Key assumptions made in these forecasts include a sustained market advantage over the Company's competitors, continuation of customer acquisitions, and price increases as customers receive greater utility from the Company's products and services.consumption across four large social media platforms.
The Company incurred professional fees directly attributable to the Merger, primarily consisting of legal and investment banker fees totaling $8.5$0.5 million and $4.6 million for 2016 and 2015, respectively.during 2021. These fees are reflected in general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Loss.
The financial results of RentrakShareablee were included in the Company's Consolidated Financial Statements from the date of acquisition, January 29, 2016.the Merger, December 16, 2021. For the year ended December 31, 2016, Rentrak2021, Shareablee contributed revenues of $110.4$0.4 million and a loss before income tax provision of $53.1$1.4 million. ThisThe loss includes $21.9$1.5 million in stock-based compensation recognized immediately following the consummationclosing date pertaining to replacement stock options and restricted stock unit awards issued to Shareablee equity award holders.
Pro forma results of operations for the Merger have not been presented because they are not material to the Company's consolidated results of operations.
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4.Revenue Recognition
The following table presents the Company's revenue disaggregated by solution group, geographical market and timing of transfer of products and services. The Company attributes revenue to geographical markets based on the location of the Merger.customer. The Company has one reportable segment in accordance with ASC 280, Segment Reporting; as such, the disaggregation of revenue below reconciles directly to its unique reportable segment.
Years Ended December 31,
(In thousands)202220212020
By solution group:
Digital Ad Solutions$212,510 $221,979 $213,504 
Cross Platform Solutions163,913 145,034 142,532 
Total$376,423 $367,013 $356,036 
By geographical market:
United States$337,862 $321,891 $310,717 
Europe19,007 26,250 27,447 
Latin America7,843 6,952 6,275 
Canada7,604 7,630 7,046 
Other4,107 4,290 4,551 
Total$376,423 $367,013 $356,036 
By timing of revenue recognition:
Products and services transferred over time$312,723 $288,439 $278,638 
Products and services transferred at a point in time63,700 78,574 77,398 
Total$376,423 $367,013 $356,036 
Contract Balances
The unaudited pro forma summary presentedfollowing table provides information about receivables, contract assets, contract liabilities and customer advances from contracts with customers:
As of December 31,
(In thousands)20222021
Accounts receivable, net$68,457 $72,059 
Current and non-current contract assets6,736 4,875 
Current contract liabilities52,944 54,011 
Current customer advances11,527 11,613 
Non-current contract liabilities887 1,262 
Current and non-current contract assets as of December 31, 2022 increased from the prior year due primarily to up-front recognition of revenue pertaining to license fees in connection with a multi-year agreement that will be billed over the contract term.
Significant changes in the table below displays consolidated informationcurrent contract liabilities balances are as follows:
Years Ended December 31,
(In thousands)20222021
Revenue recognized that was included in the opening contract liabilities balance$(49,265)$(52,232)
Cash received or amounts billed in advance and not recognized as revenue48,705 48,864 
Current contract liabilities as of December 31, 2021 included $2.5 million in contract balances recognized as part of the closing of the acquisition described in Footnote 3, Business Combination.
Remaining Performance Obligations
As of December 31, 2022, approximately $220 million of revenue is expected to be recognized from remaining performance obligations that are unsatisfied (or partially unsatisfied) for non-cancelable contracts with an original expected duration of longer than one year. The Company as ifexpects to recognize revenue on approximately 50% of these remaining performance obligations in 2023, and approximately 25% in 2024, with the Merger had occurred on January 1, 2015 for all periods presented.remainder recognized thereafter.
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5.Convertible Redeemable Preferred Stock and Stockholders' Equity
2021 Issuance of Preferred Stock
On March 10, 2021 (the "Closing Date"), the Company entered into separate Securities Purchase Agreements with each of Charter Communications Holding Company, LLC ("Charter"), Qurate Retail, Inc. ("Qurate") and Pine Investor, LLC ("Pine") (the "Securities Purchase Agreements"). The pro forma financial information is presented for informational purposes only and does not necessarily reflect the results that would have occurred had the Merger taken place on January 1, 2015, nor is it necessarily indicativeissuance of future results. No effect has been given to cost reductions or operating synergies relatingsecurities pursuant to the integration of Rentrak intoSecurities Purchase Agreements (the "Transactions") and related matters were approved by the Company's operations.stockholders on March 9, 2021 and completed on March 10, 2021. At the closing of the Transactions, the Company issued and sold (a) to Charter, 27,509,203 shares of Preferred Stock in exchange for $68.0 million, (b) to Qurate, 27,509,203 shares of Preferred Stock in exchange for $68.0 million and (c) to Pine, 27,509,203 shares of Preferred Stock in exchange for $68.0 million. The shares were issued at a par value of $0.001. Net proceeds from the Transactions totaled $187.9 million after deducting issuance costs.
The Transactions and related agreements include the following rights:
Registration Rights
On the Closing Date, the Company entered into a Registration Rights Agreement (the "RRA") with the holders of the Preferred Stock (together with any other party that may become a party to the RRA), pursuant to which, among other things, and on the terms and subject to certain limitations set forth therein, the Company was obligated to file a registration statement registering the sale or distribution of shares of Preferred Stock or Common Stock held by any holder, including any shares of Common Stock acquired by any holder pursuant to the conversion of the Preferred Stock, and any other securities issued or issuable with respect to any such shares of Common Stock or Preferred Stock by way of share split, share dividend, distribution, recapitalization, merger, exchange, replacement or similar event or otherwise (the "Registrable Securities"). In addition, therepursuant to the RRA, the holders have the right to require the Company, subject to certain limitations, to effect a sale of any or all of their Registrable Securities by means of an underwritten offering or an underwritten block trade or bought deal.
On August 30, 2021, the Company filed a registration statement on Form S-3 with respect to the Registrable Securities. The registration statement on Form S-3 became effective on September 21, 2021.
Conversion Provisions
The Preferred Stock is no tax adjustment necessary forconvertible at the pro formaoption of the holders at any time into a number of shares of Common Stock based on a conversion rate set in accordance with the Certificate of Designations of the Preferred Stock. The conversion rate is calculated as the product of (i) the conversion factor and (ii) the quotient of (A) the sum of the initial purchase price and accrued dividends with respect to each share of Preferred Stock divided by (B) the initial purchase price. The conversion right is subject to certain anti-dilution adjustments as a resultand customary provisions related to partial dividend periods. As of December 31, 2022, each share of Preferred Stock was convertible into 1.038542 shares of Common Stock, with such assumed conversion rate scheduled to return to 1.00 upon payment of accrued dividends on June 30, 2023.
At any time after the fifth anniversary of the Closing Date, the Company may elect to convert all of the outstanding shares of Preferred Stock into shares of Common Stock if (i) the closing sale price of the Company's tax valuation allowance position. ForCommon Stock is greater than 140% of the year endedconversion price as of such time, as may be adjusted pursuant to the Certificate of Designations, for certain periods, and (ii) the pro rata share of an aggregate of $100.0 million in dividends has been paid with respect to each share of Preferred Stock that was outstanding on the Closing Date and remains outstanding.
As of December 31, 2016, the results2022, no shares of Rentrak operations for the period subsequent to the Merger are included in the "As reported" column for the period January 29, 2016 through December 31, 2016.Preferred Stock have been converted into Common Stock.

Voting Rights
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 Year Ended December 31, 2016
(Amounts in thousands, except share and per share amounts)As reported Pro forma adjustment Pro forma
Revenues$399,460
 $8,116
(1)$407,576
Operating expenses531,302
 (18,872)(2)512,430
Net (loss) income(117,173) 26,988
 (90,185)
      
Basic net loss per common share$(2.10)   $(1.58)
Diluted net loss per common share(2.10)   (1.58)
Weighted-average number of shares used in per share calculation - Common Stock:     
Basic55,728,090
 1,450,301
(3)57,178,391
Diluted55,728,090
 1,450,301
(3)57,178,391
(1) The Rentrak pro forma adjustment for revenue for the year ended December 31, 2016 relates to the unaudited results of Rentrak for the period January 1, 2016 through January 28, 2016.
(2) The Rentrak pro forma adjustments for operating expenses for the year ended December 31, 2016 consistholders of the following:
Add:

Unaudited results for the period January 1, 2016 through January 28, 2016, excluding expenses incurred directly attributable to the Merger
$9,472
Amortization of acquired Rentrak intangibles for the period January 1, 2016 through January 28, 2016
2,028



Less:
 
One-time stock-based compensation expense associated with accelerated equity awards upon consummation of the Merger
(21,866)
Transaction fees (8,506)


$(18,872)
(3) The comScore pro forma adjustmentPreferred Stock are entitled to vote as a single class with the weighted-average number of shares used in the basic and diluted per share calculations is to show the effectholders of the Common Stock, issued upon consummation of the Merger as if the Merger occurred on January 1, 2015 instead of January 29, 2016.




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 Year Ended December 31, 2015
(Amounts in thousands, except share and per share amounts)As reported Pro forma adjustment Pro forma
Revenues$270,803
 $108,854
(4)$379,657
Operating expenses345,898
 178,222
(5)524,120
Net loss(78,222) (69,368) (147,590)
      
Basic net loss per common share$(2.07)   $(2.63)
Diluted net loss per common share(2.07)   (2.63)
Weighted-average number of shares used in per share calculation - Common Stock:     
Basic37,879,091
 18,303,796
(6)56,182,887
Diluted37,879,091
 18,303,796
(6)56,182,887
(4) The Rentrak pro forma adjustment for revenue for the year ended December 31, 2015 relateswith a vote equal to the unaudited results of Rentrak for the year ended December 31, 2015, excluding the revenue and operating expenses associated with Rentrak's discontinued operations.
(5) The Rentrak pro forma adjustments for operating expenses the year ended December 31, 2015 consist of the following:
Unaudited results for the year ended December 31, 2015 $124,926
Additional amortization of acquired Rentrak intangibles for the year ended December 31, 2015 22,924
One-time stock-based compensation expense associated with accelerated equity awards upon consummation of the Merger 21,866
Transaction fees 8,506
  $178,222
(6) The comScore pro forma adjustment to the weighted-average number of shares usedof Common Stock into which the Preferred Stock could be converted, except that the conversion rate for this purpose will be equal to the product of the applicable conversion factor and 0.98091271. Each holder of Preferred Stock is subject to a voting threshold, which limits such holder's voting rights in the basicevent that the holder's Preferred Stock represents voting rights that exceed 16.66% of the Company's Common Stock (including the Preferred Stock on an as-converted basis).
Dividend Rights
The holders of Preferred Stock are entitled to participate in all dividends declared on the Common Stock on an as-converted basis and dilutedare also entitled to a cumulative dividend at the rate of 7.5% per annum, payable annually in arrears (on June 30 of each year) and subject to increase under certain specified circumstances. The annual dividend accrues on a daily basis from and including the issuance date of such shares, whether or not declared. In the event the annual dividends are not paid in cash on the annual payment date, the dividends otherwise payable on such date shall continue to accrue and cumulate at a rate of 9.5% per annum, until such failure is cured.
In addition, the holders of Preferred Stock are entitled to request, and the Company will take all actions reasonably necessary to pay, a one-time dividend ("Special Dividend") equal to the highest dividend that the Company's Board determines can be paid at the applicable time (or a lesser amount agreed upon by the holders), subject to additional conditions and limitations set forth in a Stockholders Agreement entered into by the Company and the holders on the Closing Date (the "Stockholders Agreement"). As set forth in the Stockholders Agreement, the Company may be obligated to obtain debt financing in order to effectuate the Special Dividend.
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On June 30, 2022, in accordance with the Certificate of Designations of the Preferred Stock, the Company paid cash dividends totaling $15.5 million to the holders of the Preferred Stock, representing dividends accrued for the period from June 30, 2021 through June 29, 2022. The next scheduled dividend payment date for the Preferred Stock is June 30, 2023. As of December 31, 2022, accrued dividends to holders of the Preferred Stock totaled $7.9 million.
Anti-Dilution Adjustments
The Preferred Stock is subject to anti-dilution adjustment upon the occurrence of certain events, including issuance of certain dividends or distributions to holders of Common Stock, split or combination of Common Stock, reclassification of Common Stock into a greater or lesser number of shares, or certain repurchases of Common Stock, subject to limitations set forth in the Certificate of Designations.
Liquidation Preference and Change of Control Provisions
The Preferred Stock ranks senior to the Common Stock with respect to dividend rights and rights on the distribution of assets in the event of a liquidation, dissolution or winding up of the affairs of the Company, and ranks junior to secured and unsecured indebtedness. The Preferred Stock has a liquidation preference equal to the higher of (i) the initial purchase price, increased by accrued dividends per share, calculations is attributableand (ii) the amount per share of Preferred Stock that a holder would have received if such holder, immediately prior to such liquidation, dissolution or winding up of the affairs of the Company, converted such share into Common Stock.
The Preferred Stock includes a change of control put option which allows the holders of the Preferred Stock to require the Company to repurchase such holders' shares at a purchase price equal to the unaudited weighted-average sharesinitial purchase price, increased by accrued dividends. The change of Rentrak common stock for the year endedcontrol put option was determined to be a derivative liability under ASC 815, Derivatives and Hedging. As of December 31, 2015, adjusted based on2022, the conversion ratio of 1.15 applied to each Rentrak share which converted into Common Stock as stipulated upon consummation of the Merger.
Acquisition of Compete
On April 28, 2016, the Company closed an asset purchase agreement to acquire certain assets of Compete, Inc. ("Compete"), a wholly-owned subsidiary of WPP, a related party to the Company at the time of the acquisition. The Compete assets were acquired for $27.3 million in cash, netprobability of a working capital adjustmentchange of $1.4 million. The Company acquired the Compete assetscontrol was determined to expand its presence in certain verticals, such as the auto industrybe remote, and financial services, with improved solution offerings regarding digital performance, including robust path to purchase, advertising impact analysis and shopping configuration analysis. The Company entered into an agreement for Compete to provide transition services, including engineering, financial, human resources, business contract support, marketing and training services to the Company through December 31, 2016. The Company determined that the acquired assets from Compete were not significant under applicable accounting requirements and therefore has not included pro forma adjustments pursuant to ASC 805.
The Company engaged an independent valuation firm to provide information regarding the fair value of the assets being acquiredchange of control derivative was determined to be negligible. To the extent the holders of the Preferred Stock do not exercise the put option in a covered change of control, the Company has the right to redeem the remaining Preferred Stock at a redemption price equal to the initial purchase price, increased by accrued dividends.
As described above, the Preferred Stock is contingently redeemable upon certain deemed liquidation events, such as a change in control. Because a deemed liquidation event could constitute a redemption event outside of the Company's control, all shares of Preferred Stock have been presented outside of permanent equity in mezzanine equity on the Consolidated Balance Sheets.
2019 Issuance and liabilities assumed.Sale of Common Stock and Warrants
TotalOn June 23, 2019, the Company entered into a Securities Purchase Agreement with CVI Investments, Inc. ("CVI"), pursuant to which CVI agreed to purchase consideration(i) 2,728,513 shares of Common Stock (the "Initial Shares"), at a price of $7.33 per share and (ii) Series A Warrants, Series B-1 Warrants, Series B-2 Warrants and Series C Warrants, for aggregate gross proceeds of $20.0 million (the "Private Placement"). The Private Placement closed on June 26, 2019 (the "CVI Closing Date"). The Series B-1 Warrants and Series B-2 Warrants expired in 2020.
The Series C Warrants were exercised on October 10, 2019. As a result of this exercise, the Company issued 2,728,513 shares of Common Stock to CVI on October 14, 2019. In addition, the number of shares issuable under the Series A Warrants was increased by 2,728,513.
The Series A Warrants are exercisable by the holders for a period of five years from the CVI Closing Date and are currently exercisable into 5,457,026 shares of Common Stock, which is equal to the Initial Shares plus the number of shares issued pursuant to the exercise of the Series C Warrants (described above). The exercise price for the Compete assetsSeries A Warrants was $12.00 upon issuance but was subsequently adjusted, as described below. The Series A Warrants may be exercised for cash or through a net settlement feature under certain circumstances.
The exercise price for the Series A Warrants is subject to anti-dilution adjustment in certain circumstances, including upon certain issuances of capital stock. Upon the issuance of the Preferred Stock, the Company adjusted the exercise price of the Series A Warrants from $12.00 to $2.4719 per share, the closing price of the Transactions.
CVI will not have the right to exercise any warrant that would result in CVI beneficially owning more than 4.99% of the outstanding Common Stock after giving effect to such exercise. CVI has the right, in its discretion, to raise this threshold up to 9.99% with 60 days' notice to the relativeCompany. In addition, if and to the extent the exercise of any warrants would, together with the issuances of the Initial Shares and the shares issued pursuant to the exercise of any other warrants, result in the issuance of 20.0% or more of the outstanding Common Stock of the Company on the CVI Closing Date (the "Exchange Cap"), the Company intends to, in lieu of issuing such shares, settle the obligation to issue such shares in cash.
The estimated fair value of the assets and liabilitieswarrants as of the date of acquisition is as follows:
(In thousands)Fair Value
Accounts receivable and other$2,162
Definite-lived intangible assets6,400
Goodwill21,466
Deferred revenue(2,700)
Total purchase price$27,328

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The acquisition of the Compete assets resulted in goodwill of $21.5 million, the majority of which is deductible for tax purposes. This represents the residual amount of the total purchase price after determining the fair value for the net assets and identifiable intangible assets acquired. The goodwill represents expected cost synergies to be realized by the Company following the purchase and the transfer of Compete’s sales and service staff and the migration of customers from the Compete panel and technology platform.
The following table outlines the fair value of the definite-lived intangible assets and the useful life for each type of intangible asset acquired. The intangible assets are amortized using a straight-line method over the respective useful life of the asset.
(In thousands)Fair ValueUseful Lives (Years)
Customer relationships$5,000
5
Acquired methodologies/technology1,400
2
 $6,400
 
The fair value of definite-lived intangible assets above was determined by an independent third-party valuation firm utilizing a discounted cash flow method of the Company’s estimated future revenues of the acquired business. The discounted cash flow model utilized a discount rate of 19.0%.
During 2016, the Company recognized revenue of approximately $10.9 million attributable to the Compete assets acquisition and incurred $11.8 million in expenses associated with the transition services agreement with Compete. As of December 31, 2016,2022 was $0.7 million. Refer to Footnote 7, Fair Value Measurements, for further information.
2013 Stock Option/Issuance Plan
On December 16, 2021, the Company was owed $3.7 million from Compete associatedassumed certain equity awards outstanding under the Shareablee, Inc. 2013 Stock Option/Stock Issuance Plan (the "2013 Plan") in connection with billingthe acquisition of Shareablee described in Footnote 3, Business Combination. Under the 2013 Plan, as amended and collections that were to be remitted torestated, the Company from the acquired customer contracts. The amounts due from Competemay grant to certain eligible participants option rights and restricted stock units up to 4,500,000 shares of Shareablee common stock. These shares are included in total related party accounts receivable on the Consolidated Balance Sheets. The amounts due were received during the year ended 2017. The Company incurred professional fees directly attributable to the acquisition, primarily consisting of legal and investment banker fees totaling $0.4 million for 2016. These fees are reflected in general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Loss.
Acquisition of Proximic
On April 22, 2015, the Company enteredconverted into an agreement and plan of merger to acquire all of the outstanding capital stock of Proximic, Inc. ("Proximic") for $9.5 million in cash. The Company acquired Proximic to enhance brand safety and content categorization capabilities across the Company's product offerings.
The acquisition of Proximic resulted in goodwill of $5.2 million, none of which is deductible for tax purposes. This amount represents the residual amount of the total purchase price after determining the fair value for net assets and identifiable intangible assets acquired. The Company determined that the acquired assets from Proximic were not significant under applicable accounting requirements and therefore has not included pro forma adjustments pursuant to ASC 805.
A summary of the total purchase consideration for Proximic to the relative estimated fair value of the assets and liabilities as of the date of acquisition is as follows:
(In thousands)Fair Value
Net tangible assets acquired$44
Definite-lived intangible assets acquired4,290
Goodwill5,166
Total purchase price, net of cash acquired$9,500
The acquisition of the Proximic resulted in goodwill of $5.2 million. This represents the residual amount of the total purchase price after determining the fair value for the net assets and identifiable intangible assets acquired. The goodwill represents expected ability to enhance brand safety and content categorization across the Company's product offerings and the integration of the acquired workforce.
The following table outlines the fair value of the definite-lived intangible assets and the useful life for each type of intangible asset acquired. The intangible assets are amortized using a straight-line method over the respective useful life of the intangible asset.
(In thousands)Fair ValueUseful Lives (Years)
Trade names$190
1.5
Customer relationships1,700
5
Acquired methodologies/technology2,400
3
 $4,290
 

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WPP Related Transactions
During the first quarter of 2015, comScore and WPP entered into a series of agreements whereby WPP would become a beneficial owner of a minimum of 15% of Company's then outstanding Common Stock, the Company and WPP would form a strategic alliance for the development and delivery of cross-media audience measurement for certain areas outside of the U.S., comScore would purchase WPP’s Nordic Internet Audience Measurement (“IAM”) business (collectively, the "WPP Capital Transactions") and WPP’s subsidiary, GroupM Worldwide ("GroupM"), would enter into a five-year agreement (the "GroupM Arrangement"), with minimum annual commitments ("Subscription Receivable"). The transactions closed on April 1, 2015, and because they were entered into simultaneously, they have been considered as contemporaneous for accounting purposes.
The total consideration related to the WPP Capital Transactions and GroupM Arrangement was less than the market valueshares of the Company's Common Stock issued. This difference is characterized as vendor consideration and as such it is accounted for asat a reductionconversion rate of revenue upon the closingone Shareablee share to 0.330437 shares of the WPP Capital Transactions. Previous revenue transactions and future revenue transactions with WPP and its affiliates are expected to exceed the vendor consideration in this transaction. A summary of these WPP related transactions are as follows.
(In millions)  
Fair value of assets received:  
Cash $204.7
Strategic Alliance asset 30.1
IAM business 8.5
Total assets received 243.3
   
Increase to stockholders' equity for the WPP Capital Transactions  
Market value of Common Stock issued to WPP on issuance date (April 1, 2015) 310.8
Subscription Receivable (19.2)
Total increase to stockholders' equity 291.6
Vendor consideration provided to WPP (reduction in revenue) $(48.3)

Company. The Company agreed to acquire all of the outstanding common stock of WPP's IAM business in Norway, Sweden and Finland.
The Company entered into a Strategic Alliance Agreement ("Strategic Alliance") in which WPP and the Company agreed to collaborate on the cross-media audience and campaign measurement (“CMAM”) business for certain areas outside the U.S. for an initial ten-year term. Under the terms of the Strategic Alliance, the parties agreed to jointly develop and market CMAM, leveraging the digital assets of comScore and the television assets and global footprint of WPP.
WPP agreed to conduct a tender offer for shares of its Common Stock from existing stockholders at an offered price of $46.13 per share.
If the shares issued and the shares WPP acquired in the tender offer together represented less than 15% of the Company's then outstanding Common Stock, the Company agreed to sell to WPP, at a price of $46.13 per share, such newly issued shares that would cause WPP’s aggregate holdings to equal 15% of its then outstanding Common Stock.
On April 1, 2015:
The Company closed the acquisition of the IAM business and the Strategic Alliance and issued 1,605,330 shares of its Common Stock from treasury, which represented 4.45% of the then outstanding of the Company's Common Stock; and
The Company sold to WPP 4,438,353 newly issued shares of Common Stock for an aggregate purchase price of $204.7 million. After this issuance and including shares acquired by WPP via the tender offer, WPP held 15% of the Company's outstanding shares of Common Stock.
The closing Common Stock share price was $51.42, resulting in a total valuenumber of shares of Common Stock held by WPP of $310.8 million.
Stock issuance costs of $3.9 million were offset against the consideration received. As of April 1, 2015, WPP's aggregate holdings totaled 15% of the Company's Common Stock.

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Strategic Alliance Agreement
On February 11, 2015, the Company and WPP agreed to enter into a Strategic Alliance whereby the two companies would join their respective strengths in digital audience measurement and television audience measurement to create and deliver CMAM to certain markets outside of the United States. Under the terms of the Strategic Alliance, the parties agreed to jointly develop and market CMAM, leveraging the digital assets of the Company and the television assets and global footprint of WPP. Based on the relative commercial value of television vs. digital offerings and WPP's position as the primary or only provider in the relevant markets, the Company determined it was receiving the greater economic benefit of the Strategic Alliance. The Company and its independent valuation consultants determined the fair value of the Strategic Alliance to be $30.1 million, using a discounted cash flow model. The valuation was based on a forecast of the economic benefits from developing and delivering cross-media audience measurement outside the U.S., utilized a discount rate of 14.5% and included certain assumptions regarding the Company's ability to successfully complete product and service offerings, penetration into geographic markets, and the likelihood of the Strategic Alliance renewing. The Strategic Alliance was recorded as a definite-lived intangible asset thatavailable will be amortized over the ten-year life of the agreement.
IAM Business
Also on February 11, 2015, the Company agreed to purchase WPP's IAM business for $8.5 million. The IAM business covered WPP’s digital operations in Norway, Sweden and Finland. The net tangible assets acquired were $0.2 million, the definite-lived intangible assets totaled $3.0 million and goodwill of $5.3 million was recorded at acquisition. The goodwill is deductible for income tax purposes. Goodwill represents the residual of the fair value of the business after allocation of net assets and identifiable intangible assets acquired.
The following table outlines the fair value of the definite-lived intangible assets and the useful life for each type of intangible asset acquired. The fair value of definite-lived intangible assets below was determined by an independent third-party valuation firm utilizing a discounted cash flow method of the Company’s estimated future revenues of the acquired business. The intangible assets are amortized using a straight-line method over the respective useful life of the intangible asset.
(In thousands)Fair ValueUseful Lives (Years)
Trade names$370
6
 Panel1,580
2
 Intellectual property840
2
 Customer relationships200
7
 $2,990
 
GroupM Arrangement
On March 30, 2015, the Company and GroupM, a subsidiary of WPP, entered into a Subscription Receivable agreement in which GroupM agreed to a minimum commitment of $20.9 million over five years. GroupM is an affiliate of WPP, a related party, and the Company has determined that the negotiations and execution of this agreement happened concurrently with the WPP Capital Transactions and concluded these transactions should have been considered, for accounting purposes, as contemporaneous. The present value of the cash payments, using a 4.0% discount rate, was $(19.2) million. The Company classified the Subscription Receivable from GroupM of $(19.2) million, as contra equity within additional paid-in capital on its Consolidated Statements of Stockholders' Equity. As cash is received on the contract, the Subscription Receivable is reduced by the amount of cash received, and results in an increase to additional paid-in-capital. The Company expects to collect the remaining Subscription Receivable in 2018. The Company recognized interest income related to this receivable during the years ended 2017, 2016 and 2015 of $0.3 million, $0.6 million and $0.6 million, respectively.

4.Asset Dispositions
Disposition of Digital Analytix and Adobe Strategic Partnership Agreement
On November 5, 2015, the Company executed a definitive agreement to sell and exclusively license certain assets, rights and properties primarily related to the business operations of the Company’s DAx solution, including certain exclusively DAx-related agreements with customers and certain intellectual property (the “Disposed Assets”) to Adobe. On January 21, 2016, the sale was completed and in consideration for the Disposed Assets, Adobe paid $45.0 million in cash to the Company and provided the Company a license agreement (the "Holdback License") valued at $2.0 million. The Holdback License allowed the Company to service, for one-year, certain non-DAx customers using the proprietary technology sold to Adobe as the Company developed an alternative platform.

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On February 10, 2016, the Company and Adobe signed an agreement referred to as a Strategic Partnership Agreement ("SPA"). The Company has determined that the SPA represents a contemporaneous agreement with the DAx disposition through which no value would be obtained by the Company. As a result, the Company has accounted for this agreement as part of the sale of the DAx business rather than as a separate executory contract. As part of the SPA, the Company agreed to pay Adobe $8.0 million, in three installments. The initial payment of $4.0 million was made upon execution of the SPA and the remaining two payments were to be due on the first and second anniversary dates of the SPA. The SPA was recorded as a liability at the closing of the SPA and reduced the gain on the DAx disposition.
The Company agreed to continue to employ certain personnel needed to operate the Disposed Assets and to provide support to Adobe pursuant to a transition services agreement ("TSA") for a three-year term. The Company’s expenses related to the TSA are recorded as general and administrative expenses as incurred and Adobe's payment of these costs is reflected in other income in the same period as the expenses are incurred. Pursuant to the TSA, the Company recognized in other income $11.1 million and $12.4 million for the years ended 2017 and 2016, respectively.
In September 2017, the Company and Adobe agreed to terminate the SPA and Adobe released the Company from its remaining $4.0 million obligation. The Company agreed to pay $2.0 million to Adobe to extend the term of the Holdback License through December 31, 2017. For the year ended December 31, 2017, the relief from the obligations is reflected in other income.
The following table summarizes the gain on disposition for the year ended December 31, 2016:
(In thousands)Allocated Value
Consideration received: 
Cash received$45,000
Holdback License2,000
Consideration received$47,000
  
Carrying value of net assets disposed: 
Relief from customer obligations$(10,232)
Accounts receivable, net7,698
Intangible assets, net3,415
Goodwill2,642
Net assets disposed3,523
  
SPA installment payments(8,000)
Transaction fees(2,020)
Gain on disposition$33,457

Disposition of CSWS
On May 11, 2015, the Company entered into an arrangement with K2HS Analytix, LLC (the "Buyer") whereby the Buyer assumed certain liabilities related to the Company’s mobile operator analytics businesses ("CSWS") and the Buyer was entitled to any customer balances collected in 2015. The Company recorded a loss on the disposition of $4.7 million, as follows:
(In thousands)Allocated Value
Relief from certain customer obligations$3,551
Carrying value of net assets disposed(5,687)
 (2,136)
Cash paid to Buyer for disposition of business(2,535)
Loss on disposition$(4,671)

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5.
Marketable Securities
Marketable securities, all of which are classified as "available-for-sale", consisted of the following:
 December 31,
(In thousands)2017 2016
Amortized cost$
 $28,224
Gross unrealized holding gains
 188
Fair value$
 $28,412
As of December 31, 2016, the Company's marketable securities consisted of a fixed-income mutual fund with an average maturity of less than one year. As of December 31, 2017, the Company did not have any remaining investment in marketable securities.

6.Fair Value Measurements
Fair value is an exit price representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The accounting standard for fair value measurements establishes a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value as follows:
Level 1 — observable inputs such as quoted prices in active markets;
Level 2 — inputs other than the quoted prices in active markets that are observable either directly or indirectly;
Level 3 — unobservable inputs of which there is little or no market data, which require the Company to develop its own
assumptions.
A financial instrument's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The financial instruments measured at fair value in the accompanying Consolidated Balance Sheets on a recurring basis consist of the following:
  December 31, 2017 December 31, 2016
(In thousands) Level 1 Level 1
Money market funds (1)
 $860
 $9,475
Marketable securities:    
Fixed-income mutual fund (2)
 $
 $28,412
(1) Level 1 cash and cash equivalents are invested in money market funds that are intended to maintain a stable net asset value of $1.00 per share by investing in liquid, high quality U.S. dollar-denominated money market instruments with maturities less than three months.
(2) The fair value of the Company's marketable securities is determined based on a quoted market price. As of December 31, 2017, the Company did not have any remaining investment in marketable securities.

The Company does not currently have any assets or liabilities that are measured at fair value on a recurring basis other than money market funds and marketable securities. Due to their short-term nature, the carrying amounts reported approximate the fair value for accounts receivable, accounts payable and accrued expenses. The carrying value of its capitalized lease obligations approximate their fair value as the terms and interest rates approximate market rates (Level 2). There were no changes to the Company's valuation methodologies during 2017 or 2016. As of December 31, 2017, the Company's investment in marketable securities was liquidated.



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7.Property and Equipment
Property and equipment, including equipment under capital lease obligations, consists of the following:
  December 31,
(In thousands) 2017 2016
Computer equipment (including capital leases of $77,606 and $78,113, respectively) $106,433
 $100,322
Computer software (including internal-use software of $2,323 and $2,323, respectively) 8,061
 8,192
Office equipment and furniture 5,478
 5,877
Automobiles (including capital leases of $838 and $810, respectively) 838
 810
Leasehold improvements 15,036
 18,061
Total (including capital leases of $78,444 and $78,923, respectively) 135,846
 133,262
Less: accumulated depreciation and amortization (including capital leases of $70,530 and $58,874, respectively) (106,953) (91,261)
  $28,893
 $42,001
For 2017, 2016 and 2015, depreciation expense was $23.3 million, $25.4 million and $22.6 million, respectively.

8.Goodwill and Intangible Assets
The change in the carrying value of goodwill is as follows:
(In thousands)


Balance as of January 1, 2016$109,221
Disposition of DAx (1)
(310)
Rentrak Merger510,229
Acquisition of Compete assets21,466
Translation adjustments(709)
Balance as of December 31, 2016$639,897
Translation adjustments2,527
Balance as of December 31, 2017$642,424
(1)As of December 31, 2015, the Company classified the DAx assets and liabilities as held for sale. The change in goodwill noted in the table above represents the increase in allocated goodwill from the estimate made as of December 31, 2015 compared to the amount of goodwill determined to be directly attributable to the disposition in the first quarter of 2016.

The carrying values of the Company’s amortizable acquired intangible assets are as follows:
  December 31, 2017 December 31, 2016
(In thousands) 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
Acquired methodologies/technology $148,404
 $(46,095) $102,309
 $148,363
 $(24,426) $123,937
Strategic alliance 30,100
 (8,270) 21,830
 30,100
 (5,263) 24,837
Customer relationships 40,259
 (14,954) 25,305
 40,140
 (9,331) 30,809
Intellectual property 14,377
 (10,953) 3,424
 14,360
 (9,300) 5,060
Panel 3,134
 (3,134) 
 3,094
 (2,895) 199
Trade names 790
 (589) 201
 781
 (518) 263
Acquired software 9,251
 (2,949) 6,302
 8,820
 (966) 7,854
Other 600
 (194) 406
 1,400
 (191) 1,209
  $246,915
 $(87,138) $159,777
 $247,058
 $(52,890) $194,168
Amortization expense related to intangible assets was $34.8 million, $31.9 million and $8.6 million for 2017, 2016 and 2015, respectively. There were no impairment charges recognized during 2017, 2016 or 2015.

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The weighted-average remaining amortization period by major asset class as of December 31, 2017 is as follows:
(In years)
Acquired methodologies/technology4.4
Strategic alliance7.3
Customer relationships4.6
Intellectual property5.7
Trade names3.2
Acquired software2.3
Other3.3
The estimated future amortization of acquired intangible assets is as follows:
 (In thousands)
2018$33,365
201931,304
202029,975
202128,048
202227,577
Thereafter9,508
 $159,777

9.Accrued Expenses
Accrued expenses consist of the following:
  December 31,
 (In thousands) 2017 2016
Payroll and payroll-related $20,821
 $20,042
Expected retention awards (1)
 16,947
 
Accrued data costs 14,445
 8,473
Professional fees 14,456
 13,780
Restructuring 9,184
 
Amounts due to Adobe 5,395
 2,668
Other 4,783
 7,944
  $86,031
 $52,907
(1) Amount accrued as of December 31, 2017, is comprised of an accrued stock-based retention program that, in the event of employee departure prior to issuance of Common Stock will be settled in cash.


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10.Long-term Debt and Other Financing Arrangements
Capital Leases
The Company had a lease financing arrangement with Banc of America Leasing & Capital, LLC ("BALC") in the amount of $10.0 million, which expired on May 15, 2016 and was not renewed or replaced. As a result, the Company no longer has the ability to finance new software, hardware and other computer equipment leases under this arrangement. On June 19, 2017, the Company entered into a pledge agreement ("Pledge Agreement") with BALC related to cash collateralization of its outstanding capital lease obligations. The Company pays its monthly lease obligations directly from the collateralized assets. As of December 31, 2017, the Company has $3.0 million in restricted cash collateralizing these obligations. Future minimum payments under capital leases with initial terms offor every one year or more were as follows:
 (In thousands)
2018$6,525
20191,912
2020120
202136
202210
Total minimum lease payments8,603
Less amount representing interest252
Present value of net minimum lease payments8,351
Less current portion6,248
Capital lease obligations, long-term$2,103
During 2017, the Company acquired no computer hardware and software through the issuance of capital leases. During 2016 and 2015, the Company acquired $5.9 million and $22.2 million, respectively, in computer hardware and software through the issuance of capital leases. During 2017, 2016 and 2015, the Company acquired $0.2 million, $0.1 million and $0.3 million, respectively, in automobiles through the issuance of capital leases. Assets acquired under the equipment leases secure the obligations. This non-cash investing activity has been excluded from the Consolidated Statements of Cash Flows, as it pertains to the purchase of property and equipment.
Software License Arrangements
The Company has obligations for certain software license arrangements. These obligations are reflected in Other Liabilities in the Consolidated Balance Sheets. Future minimum payments under these software license arrangements with initial terms of one year or more were as follows:
 (In thousands)
2018$3,158
20191,843
Total minimum payments5,001
Less amount representing interest190
Present value of net minimum payments4,811
Less current portion2,997
Software license arrangements, long-term$1,814
During 2016, the Company incurred $8.8 million in obligations through these software license arrangements and none in 2017 or 2015.

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Revolving Credit Facility
On September 26, 2013, the Company entered into a Credit Agreement (the “Credit Agreement”) with several banks. Bank of America, N.A. was the administrative agent and lead lender of this revolving credit facility. The Credit Agreement provided for a five-year revolving credit facility of $100.0 million, which included a $10.0 million sublimit for issuance of standby letters of credit (subsequently reduced to $3.6 million in September 2017), a $10.0 million sublimit for swing line loans and a $10.0 million sublimit for alternative currency lending. The maturity date of the Credit Agreement was September 26, 2018.  The Credit Agreement also contained an expansion option permitting the Company to request an increase of the credit facility up to an aggregate additional $50.0 million, subject to certain conditions. Borrowings under the revolving credit facility were to be used towards working capital and other general corporate purposes as well as for the issuance of letters of credit.
Due to the Company's delay in filing its periodic reports, the Company was restricted from borrowing under the Credit Agreement. The Company entered into various waiver and amendment agreements during the period of non-compliance with its filings. Significant amendments to the Credit Agreement were as follows:
On August 19, 2016, the Company agreed to pay a fee to the lenders equal to 0.15% of the revolving credit facility commitments. In addition, the parties agreed to reduce the letter of credit sublimit under the Credit Agreement from $10.0 million to $4.8 million.
On June 30, 2017, the Company agreed to pay an additional fee to the lenders equal to 0.15% of the revolving credit facility commitments.
On September 29, 2017, the parties agreed to further reduce the revolving commitment amount from $100.0 million to $3.6 million, equal to the amount of outstanding letters of credit. The commitment would be further reduced to zero as the letters of credit mature. The facility was to expire the earlier of September 26, 2018 or the date the letter of credit commitments is equal to zero.
The Company maintains letters of credit in lieu of security deposits with respect to certain office leases as well as to satisfy performance guarantees under certain contracts. As of December 31, 2017, $3.5 million in letters of credit were outstanding, all of which had been cash collateralized by the Company.
As of December 31, 2017, the Company did not have an outstanding balance under the revolving credit facility due to the borrowing restrictions placed on the Company in the waiver and amendment agreements.
On January 11, 2018, the Company voluntarily terminated the Credit Agreement and the Security and Pledge Agreement between the Company and Bank of America N.A., as administrative agent, and other lenders. At the time of termination of the Credit Agreement, the $3.5 million in letters of credit remained outstanding, and are cash collateralized.

11.Commitments and Contingencies
Operating Leases
The Company is obligated under various non-cancellable operating leases for office facilities and equipment. The leases require us to pay taxes, insurance and ordinary repairs and maintenance. These leases generally provide for renewal options and escalation increases. Future minimum payments under non-cancellable lease agreements with initial terms of one year or more were as follows:
 (In thousands)
2018$15,190
201913,490
202013,618
202112,863
20228,402
Thereafter16,294
Total minimum lease payments$79,857
These leases require the Company to pay taxes, insurance and repairs and maintenance. Rent expense, under non-cancellable operating leases, was $16.6 million, $14.4 million and $10.6 million for the years ended 2017, 2016 and 2015, respectively. Rent expense was net of sub-lease income of $0.1 million, $0.3 million and $0.4 million, respectively.

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Unconditional Purchase Obligations
The Company is obligated under certain unconditional agreements with network operators. The future fixed and determinable payments under these agreements with initial terms of one year or more were as follows:
 (In thousands)
2018$19,330
201924,434
202024,971
20216,880
20221,542
Total$77,157
Contingencies
LEGAL PROCEEDINGS
The Company is involved in various legal proceedings from time to time.  The Company establishes reserves for specific legal proceedings when management determines that the likelihood of an unfavorable outcome is probable and the amount of loss can be reasonably estimated. The Company has also identified certain other legal matters where an unfavorable outcome is reasonably possible and/or for which no estimate of possible losses can be made. In these cases, the Company does not establish a reserve until it can reasonably estimate the loss. Legal fees are expensed as incurred. The outcomes of legal proceedings are inherently unpredictable, subject to significant uncertainties, and could be material to the Company's operating results and cash flows for a particular period.  
Rentrak Merger Litigation
In October 2015, four class action complaints were filed in the Multnomah County Circuit Court in Oregon in connection with the Company's merger with Rentrak, which became a wholly-owned subsidiary of the Company on January 29, 2016. On November 23, 2015, these four actions were consolidated as In re Rentrak Corporation Shareholders Litigation, with the Company, Rentrak and certain former directors and officers of Rentrak named as defendants. On July 21, 2016, the lead plaintiff filed a second amended class action complaint, which alleged that Rentrak and its former officers and directors breached their fiduciary duties to Rentrak stockholders by, among other things, failing to disclose all material facts necessary for a fully informed stockholder vote on the merger. The complaint also alleged that the Company aided and abetted these alleged breaches of fiduciary duties. The complaint sought equitable relief in the form of a rescission of the merger, rescissionary damages, attorneys’ fees and costs. On February 6, 2017, a separate action, John Hulme v. William P. Livek et al., was also filed in the Multnomah County Circuit Court in Oregon, alleging materially similar claims and seeking the same relief as that of In re Rentrak. On March 24, 2017, the court dismissed the lead plaintiff’s aiding-and-abetting claim against the Company, and allowed the lead plaintiff to replead the claim. The court also dismissed the lead plaintiff’s claim seeking rescission of the merger.
On April 17, 2017, the parties in all cases reached an agreement in principle, settling all claims in the above-referenced matters. The defendants or their insurers agreed to pay the plaintiff class $19.0 million, of which amount the Company would contribute $1.7 million, or approximately 9%, and the remainder will be funded by the Company's insurers. On May 24, 2017, the court signed an order granting preliminary approval of the parties' stipulation of settlement. The Company's contribution of $1.7 million was paid on July 18, 2017. A fairness hearing for final approval of the settlement took place on September 12, 2017, and the court granted final approval of the settlement and entered the final approval order that day. The relevant time periods for any appeal have lapsed and the settlement is final.
Derivative Litigation
The Consolidated Virginia Derivative Action. In May 2016 and July 2016, two purported shareholder derivative actions, Terry Murphy v. Serge Matta et al. and Ron Levy v. Serge Matta et al., were filed in the Circuit Court of Fairfax County, Virginia against the Company as a nominal defendant and against certain of its current and former directors and officers. The complaints alleged that the defendants intentionally or recklessly made materially false or misleading statements regarding the Company and asserted claims of breach of fiduciary duty, unjust enrichment, abuse of control, gross mismanagement and waste of corporate assets against the defendants. The complaints sought declarations that the plaintiffs can maintain the action on behalf of the Company, declarations that the individual defendants have breached fiduciary duties or aided and abetted such breaches, awards to the Company for damages sustained, purported corporate governance reforms, awards to the Company of restitution from the individual defendants and reasonable attorneys’ and experts’ fees. On February 8, 2017, the Levy plaintiff filed a motion for leave to file an amended

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complaint, attaching a proposed amended complaint (the “Proposed Amended Complaint”) alleging claims substantially similar to those alleged in the original complaint. On April 7, 2017, the Murphy and Levy parties filed a consent order consolidating the Murphy and Levy actions and designating the Proposed Amended Complaint as the operative complaint in the action if the court grants the motion for leave to file an amended complaint. The court entered the consent order on April 13, 2017 and granted the motion for leave to amend the complaint on May 19, 2017, designating the Proposed Amended Complaint as the operative complaint in the consolidated action.
The Assad Action. On April 14, 2017, another purported shareholder derivative action, George Assad v. Gian Fulgoni et al., was filed in the Circuit Court of Fairfax County, Virginia against the Company as a nominal defendant and against the same current and former directors and officers of the Company as the Murphy and Levy actions, as well as certain additional individuals. The Assad complaint alleges claims for breach of fiduciary duty, waste of corporate assets, and unjust enrichment, as well as a claim seeking to compel the Company's Board to hold an annual stockholders’ meeting. In addition to an order compelling the Board to hold an annual stockholders’ meeting, the Assad complaint seeks judgment against the defendants in the amount by which the Company was allegedly damaged, an order directing defendants to provide operations reports and financial statements for all previous quarters allegedly identified by the Audit Committee as inaccurate, purported corporate governance reforms, the restriction of proceeds of defendants’ trading activities pending judgment, an award of restitution from the defendants, and an award of attorneys’ fees and costs. On May 25, 2017, the Assad plaintiff moved to vacate or modify the consent order in the consolidated Murphy and Levy actions insofar as that order appointed lead counsel and to allow for submission of briefs regarding the appointment of lead counsel. Lead counsel in the consolidated case responded to this motion on June 2, 2017. The court has not taken action on these motions. From June to August 2017, the parties filed, and the court entered, several agreed orders extending the time for parties who had been served to respond to the Assad complaint. On August 4, 2017, the Company moved for an order of consolidation of the Assad action into the consolidated Virginia action. The motion has not been brought for a hearing due to the pendency of the proposed derivative litigation settlement.
The Consolidated Federal Derivative Action. In December 2016 and February 2017, two purported shareholder derivative actions, Wayne County Employees’ Retirement System v. Fulgoni et al. and Michael C. Donatello v. Gian Fulgoni et al., were filed in the District Court for the Southern District of New York against the Company and certain of the Company's current and former directors and officers. The complaints alleged, among other things, that the defendants provided materially false and misleading information regarding the Company, its business and financial performance. The Donatello complaint also alleged that the defendants breached their fiduciary duties, failed to maintain internal controls and were unjustly enriched to the detriment of the Company. The complaints sought awards of monetary damages, purported corporate governance reforms, the award of punitive damages, and attorneys’, accountants’ and experts’ fees and other relief. On March 3, 2017, the court granted a stay pending consideration of the parties’ stipulation to consolidate the Wayne County and Donatello actions. On April 25, 2017, the court signed and entered the parties’ stipulation to consolidate the two actions and lead plaintiffs filed a consolidated amended complaint on May 25, 2017. On June 20, 2017 and August 25, 2017, the court entered the parties’ stipulations and proposed orders temporarily staying the case and extending the time for the Company and all defendants to respond to the complaint. Following the proposed settlement discussions noted below, the court entered the parties’ stipulation and proposed order further staying proceedings pending application for preliminary approval of settlement on September 21, 2017.
Proposed Derivative Litigation Settlement. On September 10, 2017 the Company, along with all derivative plaintiffs and named individual defendants, reached a proposed settlement, subject to court approval, to resolve all of the above shareholder derivative actions on behalf of the Company. Under the terms of the proposed settlement, the Company would receive a $10.0 million cash payment, funded by the Company’s insurer. Pursuant to this proposed settlement, the Company has agreed, subject to court approval, to contribute $8.0 million in comScore Common Stock toward the payment of attorneys’ fees. The Company has also agreed as part of the proposed settlement to adopt certain corporate governance and compliance terms that were negotiated by derivative plaintiffs’ counsel and the Company. On January 31, 2018, the parties entered into a Stipulation of Settlement and the plaintiffs filed a motion for preliminary approval of the settlement on February 2, 2018. The Court held a hearing on the plaintiffs' motion for preliminary approval on February 14, 2018, indicated that it would grant preliminary approval with minor modifications to the proposed notice of settlement and scheduled a hearing to determine whether to finally approve settlement on June 7, 2018. On February 23, 2018, the Court entered an order preliminarily approving the proposed settlement. As of December 31, 2017, the Company reserved $8.0 million in accrued litigation settlements, and recorded $10.0 million in insurance recoverable on litigation settlements for the insurance proceeds expected from our insurers. For 2017, $2.0 million was recorded as a reduction to investigation and audit related expenses on the Company's Consolidated Statements of Operations and Comprehensive Loss.

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Oregon Section 11 Litigation
In October 2016, a class action complaint, Ira S. Nathan v. Serge Matta et al., was filed in the Multnomah County Circuit Court in Oregon against certain of the Company's current and former directors and officers and Ernst & Young LLP ("EY"). The complaint alleged that the defendants provided untrue statements of material fact in the Company's registration statement on Form S-4 filed with the SEC and declared effective on December 23, 2015. The complaint sought a determination of the propriety of the class, a finding that the defendants are liable and an award of attorneys’ and experts’ fees. On March 17, 2017, a separate action, John Hulme v. Serge Matta et al., was filed in the Multnomah County Circuit Court in Oregon alleging materially similar claims as the Nathan complaint against the same defendants. On April 18, 2017, the Nathan and Hulme cases were consolidated by order of the court. On April 24, 2017, all defendants filed motions to dismiss. After the motion was fully briefed and after a hearing, the Court denied all motions to dismiss on August 4, 2017. The parties are currently engaged in discovery, and on September 25, 2017, the Hulme plaintiff moved to certify the class. The Company filed its opposition to the Hulme plaintiff’s motion to certify the class on November 9, 2017. The Court held a hearing on the motion on December 5, 2017, and at that hearing, the Court deferred ruling on the motion until February 14, 2018 pending the proposed settlement in the Fresno County Employees’ Retirement Association case (“Fresno County”, described below). On February 14, 2018, following a hearing, the Court granted class certification only as to EY and deferred ruling on class certification as to all other defendants, pending the final approval hearing in Fresno County scheduled for June 7, 2018. The outcome of this matter is unknown but the Company does not believe a material loss was probable or estimable as of December 31, 2017 or 2016.
Federal Securities Class Action Litigation
Also in October 2016, a consolidated class action complaint, Fresno County Employees’ Retirement Association et al. v. comScore, Inc. et al., was filed in the District Court for the Southern District of New York against the Company, certain of the Company's current and former directors and officers, Rentrak and certain former directors and officers of Rentrak. On January 13, 2017, the lead plaintiffs filed a second consolidated amended class action complaint, which alleged that the defendants provided materially false and misleading information regarding the Company and its financial performance, including in the Company and Rentrak’s joint proxy statement/prospectus, and failed to disclose material facts necessary in order to make the statements made not misleading. The complaint sought a determination of the propriety of the class, compensatory damages and the award of reasonable costs and expenses incurred in the action, including attorneys’ and experts’ fees. The Company and the individual defendants filed motions to dismiss, the court held oral argument on those motions on July 14, 2017, however, on July 28, 2017, the court denied those motions. On September 10, 2017, the parties reached a proposed settlement, subject to court approval, pursuant to the terms of which the settlement class will receive a total of $27.2 million in cash and $82.8 million in Common Stock to be issued and contributed by comScore to a settlement fund to resolve all claims asserted against the Company. All of the $27.2 million in cash would be funded by the Company's insurers. The Company has the option to fund all or a portion of the $82.8 million with cash in lieushare of Common Stock. The proposed settlement further provides that comScore denies all claims of wrongdoing or liability. On December 28, 2017, the parties entered into a Stipulation and Agreement of Settlement to be filed in the United States District Court for the Southern District of New York. The plaintiffs filed a motion for preliminary approval of the settlement on January 12, 2018. On January 29, 2018, the Court held a hearing regarding the plaintiffs' motion for preliminary approval and entered an order granting preliminary approval of the settlement that same day. The settlement remains subject to final approval by the Court, and to that end, the Court has scheduled a hearing to determine whether to finally approve the settlement on June 7, 2018. As of December 31, 2017, the Company has reserved $110.0 million in accrued litigation settlements for the gross settlement amount, and recorded $27.2 million in insurance recoverable on litigation settlements for the insurance proceeds expected from the Company's insurers. For the year ended 2017, $82.8 million is recorded as settlement of litigation, net, on the Company's Consolidated Statements of Operations and Comprehensive Loss.
Delaware General Corporation Law Section 211 Litigation
On July 25, 2017, Starboard Value and Opportunity Master Fund Ltd., a comScore shareholder, filed a verified complaint in the Delaware Court of Chancery pursuant to Delaware General Corporation Law Section 211(c), alleging that the Company had not held an annual meeting of stockholders for the election of directors since July 21, 2015 and seeking an order compelling the Company to hold an annual meeting. The plaintiff also moved for an order expediting proceedings. The court granted the order to expedite shortly thereafter, and the parties agreed to a trial date of September 14, 2017. The parties exchanged discovery on an expedited basis and filed pretrial briefs on September 7, 2017. On September 13, 2017, the parties agreed to continue the trial date to September 29, 2017. On September 28, 2017, the Company entered into an agreement with Starboard Value LP and certain of its affiliates (collectively, “Starboard”), which, beneficially owned approximately 4.8% of the Company's outstanding Common Stock as of that date, regarding, among other things, the membership and composition of the Board. Starboard also agreed to dismiss its litigation against the Company. On September 29, 2017, the parties canceled the trial and on October 2, 2017, the parties filed a joint stipulation dismissing the case with prejudice.

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Privacy Demand Letters
On September 11, 2017, the Company and a wholly-owned subsidiary, Full Circle Studies, Inc., (“Full Circle”) received demand letters on behalf of named plaintiffs and all others similarly situated alleging that the Company and Full Circle collected personal information from users under the age of 13 without verifiable parental consent in violation of Massachusetts General Laws chapter 93A and the federal Children’s Online Privacy Protection Act (“COPPA”), 15 U.S.C. §§ 6501-06. The letters alleged that the Company and Full Circle collected such personal information by embedding advertising software development kits ("SDKs") in applications created or developed by Disney. The letters sought monetary damages, attorneys’ fees and damages under Massachusetts law. The Company and Full Circle responded to the demand letters on October 11, 2017. The responses advised that, after investigating the allegations, the Company and Full Circle do not believe the threatened claims have any legal merit or factual support. No lawsuit has been filed. If a lawsuit is filed, the Company and Full Circle intend to vigorously defend ourselves.
Nielsen Arbitration/Litigation
On September 22, 2017, Nielsen Holdings PLC (“Nielsen”) filed for arbitration against comScore alleging that comScore breached the parties’ agreement regarding an alleged unauthorized use of Nielsen’s data to compete directly against Nielsen’s linear television services.  comScore denied the allegations, and the matter is pending. On September 22 and 25, 2017, Nielsen also filed a civil complaint against comScore in the United States District Court for the Southern District of New York before Judge Vernon Broderick seeking preliminary injunctive relief against any unauthorized use of Nielsen’s data.  On October 11, 2017, the Company responded and objected to the request for a preliminary injunction.  On March 6, 2018, Judge Broderick denied Nielsen's motion for preliminary injunction and stayed the case pending completion of arbitration. The Company is vigorously defending itself in these matters.
SEC Investigation
The United States Securities and Exchange Commission (“SEC”) is investigating allegations regarding revenue recognition, internal controls, non-GAAP disclosures and whistleblower retaliation. The SEC has made no decisions regarding these matters including whether any securities laws have been violated. The Company is cooperating fully with the SEC.
Export Controls Review
The Company recently became aware of possible violations of U.S. export controls and economic sanctions laws and regulations involving the Company. The circumstances giving rise to these possible violations pertain to the Company’s collection of survey data from panelists within U.S. embargoed countries, as a part of the Company’s larger global survey efforts not intentionally targeted at such countries. The Company has filed a joint initial notice of voluntary disclosure with the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) and the U.S. Commerce Department’s Bureau of Industry and Security (“BIS”) and commenced an internal review to identify the causes and scope of transactions that could constitute violations of the OFAC and BIS regulations. The Company has notified OFAC and BIS of the ongoing internal review, which is being conducted with the assistance of outside counsel. If any violations are confirmed as part of the internal review, the Company could be subject to fines or penalties. Although the ultimate outcome of this matter is unknown, we believe that a material loss was not probable or estimable as of December 31, 2017 or 2016.
Other Matters
In addition to the matters described above, the Company is, and may become, a party to a variety of legal proceedings from time to time that arise in the normal course of the Company's business. While the results of such legal proceedings cannot be predicted with certainty, management believes that, based on current knowledge, the final outcome of any such current pending matters will not have a material adverse effect on the Company's financial position, results of operations or cash flows. Regardless of the outcome, legal proceedings can have an adverse effect on the Company because of defense costs, diversion of management resources and other factors.
Indemnification
The Company has entered into indemnification agreements with each of the Company's directors and certain officers, and the Company's amended and restated certificate of incorporation requires it to indemnify each of its officers and directors, to the fullest extent permitted by Delaware law, who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding by reason of the fact that he or she is or was a director or officer of the Company. The Company has paid and continues to pay legal counsel fees incurred by the present and former directors and officers who are involved in legal proceedings that require indemnification.
Similarly, certain of the Company's commercial contracts require it to indemnify contract counterparties under specified circumstances, and the Company may incur legal counsel fees and other costs in connection with these obligations.

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12.    Income Taxes
The components of loss before income tax (benefit) provision are as follows:
  Years Ended December 31,
(In thousands) 2017 2016 2015
Domestic $(258,735) $(139,005) $(67,169)
Foreign (25,375) 17,825
 (10,569)
Total $(284,110) $(121,180) $(77,738)

Income tax (benefit) provision is as follows:
  Years Ended December 31,
(In thousands) 2017 2016 2015
Current:      
Federal $(850) $(780) $(1,227)
State (155) (28) (112)
Foreign 1,491
 798
 1,944
Total 486
 (10) 605
Deferred:      
Federal (5,216) 313
 130
State 1,120
 (3,443) 168
Foreign 893
 (867) (419)
Total (3,203) (3,997) (121)
Income tax (benefit) provision $(2,717) $(4,007) $484

A reconciliation of the statutory U.S. income tax rate to the effective income tax rate is as follows:
  Years Ended December 31,
  2017 2016 2015
Statutory federal tax rate 35.0 % 35.0 % 35.0 %
State taxes, net of federal benefit (0.3)% 1.9 %  %
Nondeductible items (0.7)% (2.1)% (0.2)%
Foreign rate differences (3.7)% 5.6 % (6.8)%
Change in statutory tax rates 1.4 %  %  %
Change in valuation allowance (30.8)% (32.1)% (7.3)%
Transaction costs  % (1.8)% (2.2)%
Executive compensation  % (2.1)% (0.3)%
Asset disposition  % (2.2)%  %
WPP capital transactions  %  % (21.7)%
Other revenue adjustments  %  % (2.5)%
Other adjustments (0.1)% 0.3 % 0.3 %
Outside basis differences  %  % 7.1 %
Uncertain tax positions 0.2 % 0.8 % (2.0)%
Effective tax rate 1.0 % 3.3 % (0.6)%
Income Tax (Benefit) Provision
The Company recognized an income tax benefit of $2.7 million during the year ended December 31, 2017, which is comprised of current tax expense of $0.5 million primarily related to foreign taxes and a deferred tax benefit of $3.2 million related to temporary differences between the tax treatment and financial reporting treatment for certain items. Included within the total tax benefit is an income tax benefit of $8.3 million related to the impact of the TCJA provisions on the Company's U.S. deferred taxes, including

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the reduction in the corporate tax rate from 35% to 21% and a change in the Company's valuation allowance assessment. Also included is income tax expense of $126.1 million related to the increase in valuation allowance recorded against the Company’s deferred tax assets to offset the tax benefit of the Company’s operating losses in the U.S. and certain foreign jurisdictions. Income tax expense of $2.5 million has also been included for permanent differences in the book and tax treatment of certain stock-based compensation, meals and entertainment and other nondeductible expenses. These tax adjustments, along with having book losses in foreign jurisdictions where the income tax rate is substantially lower than the U.S. federal statutory rate, are the primary drivers of the annual effective income tax rate.
The Company recognized an income tax benefit of $4.0 million during the year ended December 31, 2016 which is comprised of a current tax benefit of $0.8 million related to federal and state taxes, current tax expense of $0.8 million related to foreign taxes, and a deferred tax benefit of $4.0 million related to temporary differences between the tax treatment and financial reporting treatment for certain items. Included within the total tax benefit is income tax expense of $54.9 million related to the increase in valuation allowance recorded against the Company’s deferred tax assets, to offset the tax benefit of the Company’s operating losses in the U.S. and certain foreign jurisdictions. Also included is an income tax benefit of $6.9 million related to the release of the portion of the Company's valuation allowance as a result of the Merger with Rentrak and income tax expense of $12.7 million for permanent differences in the book and tax treatment of the DAx disposition, certain transaction costs, excess officers' compensation, and other nondeductible expenses. These tax adjustments, along with having book income in foreign jurisdictions where the income tax rate is substantially lower than the U.S. federal statutory rate, are the primary drivers of the annual effective income tax rate.
The Company recognized an income tax provision of $0.5 million during the year ended 2015 which is comprised of a current tax benefit of $1.3 million related to federal and state taxes, current tax expense of $1.9 million related to foreign taxes and deferred tax benefit of $0.1 million related to temporary differences between the tax treatment and financial reporting treatment for certain items. Included within the total tax expense is income tax expense of $7.2 million related to the increase in valuation allowance recorded against the Company’s deferred tax assets and an income tax benefit of $6.7 million related to a worthless stock deduction resulting from the disposition of the CSWS mobile operator analytics business. Also included is income tax expense of $20.6 million related to the permanent difference in the book and tax treatment of the WPP capital transactions and income tax expense of $4.6 million for other permanent differences such as certain revenue related adjustments, certain transaction costs, excess officers' compensation, and other nondeductible expenses. These tax adjustments, along with having book losses in foreign jurisdictions where the income tax rate is substantially lower than the U.S. federal statutory rate, are the primary drivers of the annual effective income tax rate.

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Deferred Income Taxes
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax reporting purposes. The components of net deferred income taxes are as follows:
  December 31,
 (In thousands)
 2017 2016
Deferred tax assets:    
Net operating loss carryforwards $141,607
 $127,951
Capital loss carryforwards 269
 280
Tax credits 6,204
 6,648
Allowance for doubtful accounts 391
 626
Accrued salaries and benefits 8,138
 2,363
Deferred revenues 2,908
 2,916
Capital leases 2,343
 8,399
Deferred compensation 27,175
 32,193
Deferred rent 3,722
 4,219
Tax contingencies 1,439
 1,916
Litigation settlement 26,557
 
Other 1,551
 2,719
Gross deferred tax assets 222,304
 190,230
Valuation allowance (181,334) (119,904)
Net deferred tax assets $40,970
 $70,326
Deferred tax liabilities:    
Goodwill $(6,850) $(5,457)
Intangible assets (30,645) (55,506)
Property and equipment (409) (8,207)
Subpart F income recapture (1,397) (2,165)
Outside basis difference (290) (426)
Other (488) (1,136)
Total deferred tax liabilities (40,079) (72,897)
Net deferred tax asset (liability) $891
 $(2,571)
The Company’s deferred tax assets and liabilities have been revalued as of December 31, 2017 to reflect the TCJA reduction in the U.S. corporate income tax rate from 35% to 21%. The impact of the rate change on the Company’s net U.S. deferred tax assets (before valuation allowance) was a decrease of $66.7 million. However, due to the Company’s valuation allowance position in the U.S., the income statement impact of the rate change was an income tax benefit of $3.6 million.
Tax Valuation Allowance
As a result of the material changes to the Company's Consolidated Financial Statements, the Company re-evaluated the valuation allowance determinations made in prior years. The Company's analysis was updated to consider the changes to its historical operating results following the investigation and subsequent review by management. In that process, the Company evaluated the weight of all evidence, including the decline in earnings and the Company concluded that as of December 31, 2013, its U.S. federal and state net deferred tax assets were no longer more-likely-than-not to be realized and that a valuation allowance was required.
As of December 31, 2017 and 2016, the Company had a valuation allowance of $181.3 million and $119.9 million, respectively, against certain deferred tax assets. The valuation allowance relates to the deferred tax assets of the Company’s U.S. entities, including federal and state tax attributes and timing differences, as well as the deferred tax assets of certain foreign subsidiaries. The increase in the valuation allowance during 2017 is primarily related to the domestic operating losses incurred during the year offset by a reduction to the valuation allowance as result of the TCJA. To the extent the Company determines that, based on the weight of available evidence, all or a portion of its valuation allowance is no longer necessary, the Company will recognize an income tax benefit in the period such determination is made for the reversal of the valuation allowance. If management determines that, based on the weight of available evidence, it is more-likely-than-not that all or a portion of the net deferred tax assets will not be realized, the Company may recognize income tax expense in the period such determination is made to increase the valuation allowance.

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A summary of the deferred tax asset valuation allowance is as follows:
  December 31,
(In thousands)

 2017 2016
Beginning Balance $119,904
 $38,925
Additions 137,495
 88,615
Reductions (76,065) (7,636)
Ending Balance $181,334
 $119,904
Net Operating Loss Carryforwards
As of December 31, 2017, the Company had federal and state net operating loss carryforwards for tax purposes of $387.0 million and $1,013.7 million, respectively. These net operating loss carryforwards begin to expire in 2022 for federal income tax purposes and 2018 for state income tax purposes. As of December 31, 2017, the Company had an aggregate net operating loss carryforward for tax purposes related to its foreign subsidiaries of $14.8 million which begins to expire in 2019. As of December 31, 2017, the Company had research & development credit carryforwards of $3.2 million which begin to expire in 2025.
Under the provisions of Internal Revenue Code Section 382, certain substantial changes in the Company’s ownership may result in a limitation on the amount of U.S. net operating loss carryforwards that can be utilized annually to offset future taxable income and taxes payable. A significant portion of the Company’s net operating loss carryforwards are subject to an annual limitation under Section 382 of the Internal Revenue Code. Additionally, despite the net operating loss carryforwards, the Company may have a future tax liability due to alternative minimum tax, foreign tax or state tax requirements.
Foreign Undistributed Earnings
The Company has not provided for U.S. income and foreign withholding taxes on approximately $12.2 million of certain foreign subsidiaries' undistributed earnings as of December 31, 2017, because such earnings have been retained and are intended to be indefinitely reinvested outside of the U.S. It is not practicable to estimate the amount of taxes that would be payable upon remittance of these earnings because such tax, if any, is dependent on circumstances existing if and when remittance occurs.
Uncertain Tax Positions
For uncertain tax positions, the Company uses a more-likely-than-not recognition threshold based on the technical merits of the tax position taken. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefits determined on a cumulative probability basis, which are more-likely-than-not to be realized upon ultimate settlement in the financial statements. The Company has unrecognized tax benefits, which are tax benefits related to uncertain tax positions which have been or will be reflected in income tax filings that have not been recognized in the financial statements due to potential adjustments by taxing authorities in the applicable jurisdictions. The Company's liabilities for unrecognized tax benefits, which include interest and penalties, were $1.3 million and $1.2 million as of December 31, 2017 and 2016, respectively. The remainder of unrecognized tax benefits have reduced deferred tax balances. The amount of unrecognized tax benefits that, if recognized, would affect the Company's effective tax rate are $2.4 million, $3.3 million and $3.2 million as of December 31, 2017, 2016 and 2015, respectively and include the federal tax benefit of state deductions. The Company anticipates that $0.2 million of unrecognized tax benefits will reverse during the next year due to the filing of related tax returns and the expiration of statutes of limitation.
Changes in the Company's unrecognized income tax benefits are as follows:
  December 31,
 (In thousands)
 2017 2016 2015
Beginning balance $3,608
 $3,418
 $1,460
Increase related to tax positions of prior years 81
 68
 29
Increase related to tax positions of the current year 88
 449
 2,013
Increase related to acquired tax positions 
 974
 
Decrease related to tax positions of prior years (1,064) (1,084) (38)
Decrease due to settlements 
 (117) 
Decrease due to lapse in statutes of limitations (205) (100) (46)
Ending balance $2,508
 $3,608
 $3,418
The Company recognizes interest and penalties related to income tax matters in income tax expense. As of December 31, 2017 and 2016, accrued interest and penalties on unrecognized tax benefits were $0.3 million and $0.2 million, respectively. The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. For income tax returns filed by the Company, the Company is no longer subject to U.S. federal examinations by tax authorities

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for years prior to 2014 or state and local tax examinations by tax authorities for years prior to 2013, although tax attribute carryforwards generated prior to these years may still be adjusted upon examination by tax authorities.

13.Stockholders’ Equity
1999 Stock Option Plan and 2007 Equity Incentive Plan
Prior to the effective date of the registration statement for the Company’s initial public offering (“IPO”) on June 26, 2007, eligible employees and non-employees were awarded options to purchase shares of the Company’s Common Stock, restricted stock awards ("RSAs") or restricted stock units ("RSUs") pursuant to the Company’s 1999 Stock Plan (the “1999 Plan”). Upon the effective date of the registration statement for the Company’s IPO, the Company ceased using the 1999 Plan for the issuance of new equity awards. Upon the closing of the Company’s IPO on July 2, 2007, the Company established its 2007 Equity Incentive Plan, as amended (the “2007 Plan” and together with the 1999 Plan, the “Plans”), and no further shares were authorized for new awards under the 1999 Plan. In March 2017, the 2007 Plan reached the end of its ten-year term and expired. The vesting period of equity awardsaward granted under the Plans is determined by the Board. For service-based awards the vesting has generally been ratable over a four-year period. Option awards generally expire 10 years from the date of the grant. The Company expects to propose a new equity incentive plan for adoption at its 2018 annual meeting of stockholders.
Pursuant to the merger agreement with Rentrak, upon the closing of the transaction, the Company assumed outstanding stock options2013 Plan. If any award granted under the Rentrak Corporation Amended2013
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Plan (in whole or in part) is cancelled or forfeited, expires, is unvested and Restated 2005 Stock Incentive Plan and assumed outstanding stock options, RSUs and a stock appreciation right ("SAR") underrepurchased in cash, or otherwise unearned, the Rentrak Corporation 2011 Incentive Plan, and such stock options, RSUs and SAR were automatically converted into stock options, RSUs and SAR, respectively, with respect to shares of Common Stock subject to appropriate adjustmentssuch award will, to the extent of such cancellation, forfeiture, expiration, or repurchase in cash, again be available at a rate of one share of Common Stock for every one share of Common Stock subject to such award. The Company registered the securities issuable under the 2013 Plan with the SEC on December 23, 2021. The maximum number of shares of the Company's Common Stock available for future issuance under the 2013 Plan as of December 31, 2022 (excluding outstanding awards) is 176,435.
2018 Equity and Incentive Compensation Plan
The Company's stockholders approved the exercise price (if applicable)2018 Equity and Incentive Compensation Plan (the "2018 Plan") at the Company's 2018 Annual Meeting, approved an amendment and restatement of eachthe 2018 Plan at the Company's 2020 Annual Meeting, and approved a further amendment of the 2018 Plan at the Company's 2022 Annual Meeting. Under the 2018 Plan, as amended, the Company may grant option rights, appreciation rights, restricted stock awards, restricted stock units, performance shares and performance units up to 27,850,000 shares of Common Stock. The aggregate number of shares of Common Stock available will be reduced by: (i) one share of Common Stock for every one share of Common Stock subject to an award of option rights or appreciation rights granted under the 2018 Plan and (ii) two shares of Common Stock for every one share of Common Stock subject to an award other than option rights or appreciation rights granted under the 2018 Plan. If any award granted under the 2018 Plan (in whole or in part) is canceled or forfeited, expires, is settled in cash, or is unearned, the shares of Common Stock subject to such award.


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Tableaward will, to the extent of Contentssuch cancellation, forfeiture, expiration, cash settlement, or unearned amount, again be available at a rate of one share of Common Stock for every one share of Common Stock subject to awards of option rights or appreciation rights and two shares of Common Stock for every one share of Common Stock subject to awards other than of option rights or appreciation rights. The Company registered the securities under the 2018 Plan with the SEC effective June 1, 2018. The maximum number of shares available for future issuance under the 2018 Plan as of December 31, 2022 (excluding outstanding awards) is 5,693,104.


Stock Options
A summary of theThe Company's Compensation Committee approved and awarded 948,000 and 50,000 options assumed, exercised and expired duringfor the years ended December 31, 2015, 20162022 and 2017 is presented below:
  
Number of
shares
 
Weighted-Average
Exercise Price
Options outstanding as of January 1, 2015 1,980,308
 $42.71
Options exercised (276,464) 42.04
Options expired (1,900) 4.47
Options outstanding as of December 31, 2015 1,701,944
 42.87
Options assumed 
 1,973,801
 18.68
Options exercised (225,088) 18.39
Options forfeited (2,760) 16.85
Options expired (2,385) 12.05
Options outstanding as of December 31, 2016 3,445,512
 30.65
Options forfeited (1,260) 20.24
Options outstanding as of December 31, 2017 3,444,252
 $30.65
Options exercisable as of December 31, 2017 3,444,252
 $30.65
2020 respectively, under the 2018 Plan to employees and consultants. No stock options were granted duringapproved and awarded for the yearsyear ended December 31, 2017, 2016 and 2015.2021 under the 2018 Plan.
The fair values of options at the date of grant, or when assumed by the Company, were estimated using the Black-Scholes option pricing model utilizing the following are the assumptions used in valuing the options that were assumed in the Rentrak Merger during the year ended 2016:assumptions:
Years Ended December 31,
202220212020
Dividend yield (1)
0.0%0.0%0.0%
Expected volatility (2)
68.2% - 69.2%33.2 - 72.4%57.0%
Risk-free interest rate (3)
3.2% - 4.2%0.1% -1.4%1.0%
Expected life of options (in years) (4)
6.18 - 6.250.25 - 9.816.00
Dividend yield0.00%
Expected volatility41.18%-44.51%
Risk-free interest rate0.54%-0.63%
Expected life of options (in years)1.37
-1.87
Dividend yield(1) The Company has never declared or paid a cash dividend on its Common Stock and has no plans to pay cash dividends on Common Stock in the foreseeable future.
Expected volatility —(2) Volatility is a measure of the amount by which a financial variable such as a share price has fluctuated (historical volatility) or is expected to fluctuate (expected volatility) during a period. The Company considered the historical volatility of its stock price over a term similar to the expected life of the options in determining expected volatility.
Risk-free interest rate —(3)The Company used rates on the grant date of zero-coupon government bonds with maturities over periods covering the term of the awards, converted to continuously compounded forward rates.
Expected life of the options(4) This is the period of time that the options granted are expected to remain outstanding. Options under the Company's plans generally have a contractual term of 10 years and generally must be exercised within 30 to 90 days following termination of service.
The weighted-average fair value
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A summary of options granted, exercised, forfeited and expired during the options assumed during yearyears ended December 31, 2016 was $21.09.2022, 2021 and 2020 is included below:

Number of
Shares
Weighted-Average
Exercise Price
Options outstanding as of December 31, 20191,538,967 $11.27 
Options granted50,000 3.67 
Options exercised(75,000)1.89 
Options forfeited(60,000)5.38 
Options expired(456,775)15.92 
Options outstanding as of December 31, 2020997,192 $9.82 
Options assumed (1)
988,869 1.17 
Options expired(203,006)14.83 
Options outstanding as of December 31, 20211,783,055 $4.45 
Options granted948,000 2.50 
Options exercised(96,955)1.35 
Options forfeited(62,284)7.33 
Options expired(287,829)14.57 
Options outstanding as of December 31, 20222,283,987 $2.42 
Options exercisable as of December 31, 20221,131,404 $2.59 
(1) Excludes 17,514 stock options settled in cash in lieu of the issuance of Common Stock of the Company.
The following table summarizes information about options outstanding, atand exercisable, as of December 31, 2017:2022:
  Options Outstanding Options Exercisable
Range of Exercise Prices Options Outstanding Weighted
Average
Exercise
Price
 Weighted
Average
Remaining
Contractual
Life (Years)
 
Options
Exercisable
 
Weighted
Average
Exercise
Price
 
Weighted
Average
Remaining
Contractual
Life (Years)
$1.09 - $9.70 12,681
 $9.31
 0.12 12,681
 $9.31
 0.12
$11.56 - $19.31 1,147,204
 12.20
 2.12 1,147,204
 12.20
 2.12
$20.11 - $25.86 578,994
 24.68
 1.86 578,994
 24.68
 1.86
$40.80 - $42.92 1,705,373
 42.91
 1.61 1,705,373
 42.91
 1.61
  3,444,252
 $30.65
 2.09 3,444,252
 $30.65
 2.09


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As a result of the delay in filing its periodic financial reports with the SEC, the Company temporarily halted the settlement and issuance of shares pursuant to the 2007 Plan in 2016. Further, and as noted above, the 2007 Plan expired in March 2017. As a result, the options cannot be exercised until the Company regains compliance with its SEC reporting obligations and its registration statement is again valid for issuance of shares under 2007 Plan awards. The Company expects to propose a new equity incentive plan for adoption at its 2018 annual meeting of stockholders.
 Options OutstandingOptions Exercisable
Range of Exercise PricesOptions OutstandingWeighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Life (Years)
Options
Exercisable
Weighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Life (Years)
$0.57 - $2.501,823,627 $1.84 7.98676,111 $1.15 5.83
$3.21 - $5.38440,935 3.76 6.40435,868 3.75 6.37
$20.1113,368 20.11 0.6213,368 20.11 0.62
$40.806,057 40.80 1.626,057 40.80 1.62
2,283,987 $2.42 7.621,131,404 $2.59 5.96
The intrinsic value of exercised stock options is calculated based on the difference between the exercise price and the quoted market price of the Company's Common Stock as of the close of the exercise date. There were zero options exercised during 2017. The aggregate intrinsic value offor options exercised was $0.1 million, zero and $0.1 million for 2016the years ended December 31, 2022, 2021 and 2015 were $4.42020, respectively. The aggregate intrinsic value for all options exercisable was $0.1 million, $0.5 million and $3.0 million,zero under the Company's stock plans as of December 31, 2022, 2021 and 2020, respectively. The aggregate intrinsic value for all options outstanding and exercisable was $17.2$0.1 million, $2.2 million and $17.2 million, respectively,zero under the Company’sCompany's stock plans as of December 31, 2017. 2022, 2021 and 2020, respectively.
As of December 31, 2017, there was no2022, the total unrecognized compensation expense related to outstanding, options.
On April 26, 2016,but not yet exercisable, options is $1.7 million, which the Board approved an extension of theCompany expects to recognize over a weighted-average vesting period of time over which terminated employees could exercise their vested options from 90 days after termination of employment to the earlier of the original 10-year option expiration date or 180 days following the date the Company's registration statements on Form S-8 are again available for use. The Company treated this extension as a modification of the award upon the employees’ termination and recognized incremental compensation cost. The Company measured the incremental compensation cost as the excess of the fair value of the modified award over the fair value of the original award immediately before its terms were modified. As a result of these modifications, the Company recognized compensation cost of $6.3 million and $3.0 million in stock-based compensation expense during 2017 and 2016, respectively.approximately 3.4 years.
Stock Appreciation Rights ("SAR")
The Company assumed an, as-converted, SAR with respect to 86,250 shares of Common Stock originally granted pursuant to the terms of Rentrak Corporation 2005 Stock Incentive Plan at an, as-converted, base price of $12.61 per share. The SAR was fully vested prior to the consummation of the Merger and remains outstanding as of December 31, 2017, and will be exercisable following the Company regaining compliance with its SEC reporting obligations and instituting a new equity plan in 2018. Upon exercise of all or a portion of the SAR, the Company will calculate the SAR spread, tax offset amount and the net SAR value into a whole number of SAR settlement shares based on the fair market value of the Company's Common Stock on the exercise date.
Stock Awards
The Company's outstanding stock awards are comprised of RSAsRSUs, including time-based, performance-based and market-based RSUs. The RSAs only represent participating securities. The Company has a right
During 2022, the Company's Compensation Committee (or Board of repurchase on such shares that lapses at a rateDirectors, as applicable) approved and awarded 1,738,592 time-based RSUs (of which 679,304 RSUs related to the settlement of twenty-five percent (25%)an accrued 2021 annual incentive plan liability and vested immediately) and 620,000 market-based RSUs under the 2018 Plan to employees of the total sharesCompany. The market-based RSUs vest over 10 years and are contingent on certain stock-price hurdles.
During 2021, the Company's Compensation Committee (or Board of Directors, as applicable) approved and awarded at each successive anniversary2,464,694 time-based RSUs (of which 1,413,290 RSUs related to the settlement of an accrued 2020 annual incentive plan liability and vested immediately) and 2,127,920 performance-based RSUs under the 2018 Plan to employees and directors of the initial award date, provided thatCompany. The performance-based RSUs pertained to awards approved by the employee continuesCompany's Board of Directors as part of the Transactions on January 7, 2021, which awards included the closing of the Transactions as an implied performance condition. Of these performance-based RSUs, 772,686 vested immediately upon the closing of the Transactions. The remaining performance-based RSUs generally vest after one to provide servicesthree years contingent on continued service.
On December 16, 2021, the Company assumed all outstanding RSUs representing the right to receive shares of Shareablee common stock as part of the Merger. Each assumed Shareablee RSU was converted into 0.330437 RSUs of the Company, resulting in 55,702 RSUs of the
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Company. Each assumed Shareablee RSU is otherwise subject to the Company through such date. Duringsame terms and conditions (including as to vesting and issuance) as were applicable under the years ended 2017, 2016, and 2015, none, 1,750 and 10,263 shares of RSAs, respectively, were forfeited and were subsequently retired at no costrespective Shareablee RSU immediately prior to the Company.Merger.

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TableDuring 2020, the Company's Compensation Committee approved and awarded 634,570 time-based RSUs (of which 610,590 RSUs related to the settlement of Contents


an accrued 2019 annual incentive plan liability and vested immediately).
A summary of the status of unvested stock awards as ofgranted, vested and forfeited during the years ended December 31, 20172022, 2021 and 2020 is presented as follows:follows. RSU awards with undelivered shares are classified as unvested until the date of delivery of the shares.
Unvested Stock AwardsUnvested Stock AwardsRestricted
Stock Units
Weighted
Average
Grant-Date Fair Value
Unvested Stock Awards 
Restricted
Stock Awards
 
Restricted
Stock Units
 
Number of
Shares
Underlying
Awards
 
Weighted
Average
Grant-Date Fair Value
Unvested as of January 1, 2015 476,993
 1,410,581
 1,887,574
 $26.88
Unvested as of December 31, 2019Unvested as of December 31, 20192,660,236 $8.42 
Granted 195,595
 336,507
 532,102
 48.68
Granted634,570 3.66 
Vested (549,930) (790,115) (1,340,045) 32.38
Vested(1,363,152)7.22 
Forfeited (10,263) (95,772) (106,035) 36.19
Forfeited(106,417)20.02 
Unvested as of December 31, 2015 112,395
 861,201
 973,596
 $33.34
Unvested as of December 31, 2020Unvested as of December 31, 20201,825,237 $6.99 
GrantedGranted4,592,614 3.13 
Assumed 
 367,263
 367,263
 39.65
Assumed55,702 3.14 
VestedVested(2,362,963)4.68 
ForfeitedForfeited(80,347)13.53 
Unvested as of December 31, 2021Unvested as of December 31, 20214,030,243 $3.76 
Granted 214,010
 459,166
 673,176
 35.49
Granted2,358,592 2.04 
Vested (320,907) (405,031) (725,938) 31.74
Vested(1,493,121)4.01 
Forfeited (1,750) (240,214) (241,964) 37.19
Forfeited(251,095)6.04 
Unvested as of December 31, 2016 3,748
 1,042,385
 1,046,133
 $37.16
Granted 
 
 
 
Vested (1,623) (185,754) (187,377) 36.45
Forfeited 
 (76,719) (76,719) 38.48
Unvested as of December 31, 2017 2,125
 779,912
 782,037
 $37.22
Unvested as of December 31, 2022Unvested as of December 31, 20224,644,619 $2.69 
The aggregate intrinsic value for all unvested RSAsRSUs outstanding was $5.4 million, $13.5 million, and RSUs outstanding$4.5 million as of December 31, 2017 was $22.3 million. The weighted-average remaining vesting period for all unvested RSAs2022, 2021, and RSUs as of December 31, 2017 was 0.52 years. The aggregate intrinsic value of RSAs vested during the years ended 2017, 2016 and 2015 was $34,000, $25.6 million and $68.5 million,2020, respectively.
The Company granted unvested stock awards at no cost to recipients during the years ended December 31, 2016 and 2015. As of December 31, 2017,2022, total unrecognized compensation expense related to unvested RSAs and RSUs was $9.2$3.6 million, which the Company expects to recognize over a weighted-average vesting period of approximately 0.533.9 years. This expense excludes pending equity awards as described below. Total unrecognized compensation expense may be increased or decreased in future periods for subsequent grants or forfeitures.
6.Debt
Revolving Credit Agreement
On March 16, 2016,May 5, 2021, the Company receivedentered into a notice from The Nasdaq Stock Market LLC ("Nasdaq"senior secured revolving credit agreement (the "Revolving Credit Agreement") stating that becauseamong the Company, had not yet filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2015,as borrower, certain subsidiaries of the Company, as guarantors, Bank of America N.A., as administrative agent (in such capacity, the "Agent"), and the lenders from time to time party thereto.
The Revolving Credit Agreement had an original borrowing capacity equal to $25.0 million and bore interest on borrowings at a Eurodollar Rate (as defined in the Revolving Credit Agreement) that was no longer in compliance with Nasdaq Listing Rule 5250(c)(1), which requires listed companies to timely file all required periodic financial reports with the SEC. As a result, thebased on LIBOR. The Company temporarily halted the settlement and issuance of shares pursuant to the 2007 Plan in 2016. This resulted in equity awards that vested in accordance with contractually stated vesting terms but which had not been settled throughmay also request the issuance of Common Stock. Stock-based compensation expense associated with these equity awards had been recognized as if these awards were settled. However, in the table above, these equity awards remained classified as unvested asletters of December 31, 2016 and were not included in the Company's outstanding Common Stock. During the first quarter of 2017, total equity awards that vested in 2016 were settled and shares of Common Stock were distributed to employees. The Company followed the same treatment for equity awards that vested in 2017, with shares distributed in the first quarter of 2018.
The 2007 Plan expired during 2017, and as of December 31, 2017, the Company had 5,951,055 shares that would have been available for future issuancecredit under the plan.
Unregistered SalesRevolving Credit Agreement in an aggregate amount up to $5.0 million, which reduces the amount of Equity Securities
On April 1, 2015, as partavailable borrowings by the amount of such issued and outstanding letters of credit. The facility has a maturity of three years from the closing date of the WPP Capital Transactions, the Company issued 6,043,683 shares of Common Stock to Cavendish Holding B.V., a private limited liability company incorporated under the laws of the Netherlands and an affiliate of WPP. These shares were issued in a private placement exempt from the registration requirements of the Securities Act of 1933, as amended (the "Act") pursuant to Section 4(a)(2) of the Act because the issuances were pursuant to a stock purchase agreement not involving a public offering.agreement.
During 2016, we issued 3,300 shares of restricted Common Stock in settlement of a previously issued RSU award and we issued 35,000 RSUs for an equity award approved by the Compensation Committee, each under a private placement exemption to executive officers qualifying as accredited investors.
These securities were issued pursuant to an exemption from registration provided by Section 4(a)(2) of the Act.

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Refer to Footnote 20, Subsequent Events of the Notes to Consolidated Financial Statements, for additional information related to the unregistered sale of equity securities.
Pending Equity Awards
Due to the Company’s inability to file its periodic reports with the SEC, the Company has been unable to use its registration statement on Form S-8 to grant equity awards to employees, including executive officers, since February 2016. Further, in March 2017, the 2007 Plan's ten-year term expired. The Company expects to propose a new equity incentive plan for adoption at the Company's next annual meeting of stockholders, and to grant equity awards once that plan is adopted. As of December 31, 2017, and in accordance with the Company's compensation program for all employees and directors, we anticipate making equity awards having an aggregate value of $42.9 million. These awards were recommended for employees and directors in 2016 and 2017 but were not granted as of December 31, 2017. In addition, the Company expects to issue additional equity awards for 2017 service or otherwise, of which $16.9 million was accrued. Based on the closing bid price of the Company's Common Stock on the OTC Pink Tier on March 15, 2018, $26.29 per share, approximately 1,633,146 shares are contemplated for issuance as equity awards. The actual number of shares issued will be based upon the prevailing trading price of the Company's Common Stock at the time the shares are actually issued.
Preferred Stock
The Company has 5,000,000 shares authorized of $0.001 par value preferred stock authorized; no shares have been issued or outstanding as of December 31, 2017 or 2016.
Rights Plan
On February 7, 2017, the Company's Board adopted a rights plan (the “Rights Plan”) and declared a dividend to the Company’s stockholders of record as of the close of business on February 18, 2017, for each outstanding share of the Company’s Common Stock, of one right (a “Right”) to purchase one one-hundredth of a share of newly designated Series A Junior Participating Preferred Stock, par value $0.001 per share, of the Company (the "Series A Preferred Stock"), at a price of $120.00 per Right. The terms of the Rights Plan and the Rights were set forth in the Tax Asset Protection Rights Agreement, dated as of February 8, 2017 (the “Rights Agreement”), by and between the Company and American Stock Transfer & Trust Company, LLC, as rights agent.
The purpose of the Rights Plan was to preserve the Company's ability to utilize its net operating loss carryforwards and other significant tax attributes to offset future taxable income in the United States, which could be significantly limited if the Company experienced an "ownership change" within the meaning of Section 382 of the Internal Revenue Code of 1986, as amended. The Company had designated 1,000,000 shares of its Series A Preferred Stock in connection with the adoption of the Rights Plan.
In connection with an agreement with Starboard, on September 28, 2017,25, 2022, the Company entered into an amendment (the "2022 Amendment") to the RightsRevolving Credit Agreement to accelerateexpand its aggregate borrowing capacity from $25.0 million to $40.0 million. The 2022 Amendment also replaced the expiration date ofEurodollar Rate with a SOFR-based interest rate and modified the RightsApplicable Rate definition in the Revolving Credit Agreement to increase the Applicable Rate payable on SOFR-based loans to 2.50%.
The 2022 Amendment also modified certain financial covenants under the RightsRevolving Credit Agreement. As of December 31, 2022, the Revolving Credit Agreement to September 28, 2017, effectively terminating the Rights Agreement on that date. At the time of such termination, all of the Rights distributed to holders of the Company’s Common Stock pursuant to the Rights Agreement expired. Following the expiration of the Rights and the termination of the Rights Agreement,required the Company filed a Certificateto maintain:
minimum Consolidated EBITDA (as defined in the Revolving Credit Agreement) of Elimination with the Secretary of State of the State of Delaware eliminating the 1,000,000 shares of Series A Preferred Stock and returning them to authorized but undesignated shares of the Company’s preferred stock. No shares of Series A Preferred Stock were issued.


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14.Share Repurchases
As part of the Company's repurchase program, which was announced in February 2016 and suspended on March 5, 2016, shares were purchased in open market transactions or pursuant to trading plans that were adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. The timing, manner, price and amount of any repurchases could be determined at the Company's discretion, and the share repurchase program could be suspended, terminated or modified at any time for any reason. Shares repurchased were classified as treasury stock. Share repurchasesnot less than $20.0 million for the yearsmost recently ended December 31, 2017, 2016 and 2015 under the Company's share repurchase program were as follows:
  Years Ended December 31,
(Dollars in millions, except share and per share data) 2017 
2016 (1)
 
2015 (2)(3)
Total number of shares repurchased  675,672 1,949,580
Average price paid per share  $40.39 $54.33
Total value of shares repurchased (as measured at time of repurchase)  $27.3 $105.9
(1) February 2016 Share Repurchase Program
On February 17, 2016, the Company announced that the Board had approved the adoption of a new share repurchase program, superseding prior programs, for $125.0 million of Common Stock. On March 5, 2016, the Board suspended the share repurchase program indefinitely, with such suspension to be re-evaluated following the completion of the Audit Committee’s investigation and the Company regaining compliance with its SEC reporting requirements.
(2) May 2015 Share Repurchase Program
On May 5, 2015, the Company announced that the Board had approved the repurchase of up to $150.0 million of Common Stock which commenced on May 6, 2015. Such repurchases were made at various times subject to pre-determined price and volume guidelines established by the Board. Through December 31, 2016, this program resulted in the repurchase of $99.9 million of shares (as measured at the time of repurchase). The program was suspended in September 2015 pending the closing of the Rentrak Merger.
(3) June 2014 Share Repurchase Program
On June 6, 2014, the Company announced that the Board had approved the repurchase of up to $50.0 million of Common Stock. This repurchase program concluded on May 5, 2015 and resulted in the repurchase of $6.0 million of shares of Common Stock, during the year ended 2015 (as measured at the time of repurchase).

15.Employee Benefit Plans
The Company has a 401(k) plan for the benefit of all U.S. employees who meet certain eligibility requirements. This plan covers substantially all of the Company’s full-time U.S. employees. The Company contributed $1.3 million, $1.2 million and $0.8 million to the 401(k) plan for the years ended 2017, 2016 and 2015, respectively.

16.Geographic Information
The Company attributes revenues to customers based on the location of the customer. The composition of the Company’s sales to customers between those in the United States and those in other locations is as follows:
  Years Ended December 31,
 (In thousands)
 2017 2016 2015
United States $332,344
 $316,755
 $220,172
Europe 43,218
 54,289
 63,071
Latin America 13,460
 12,470
 14,904
Canada 9,273
 10,206
 13,673
Other 5,254
 5,740
 7,236
  $403,549
 $399,460
 $319,056
Less: vendor consideration provided to WPP (1)
 
 
 (48,253)
Total revenues $403,549
 $399,460
 $270,803
(1) For additional information concerning vendor consideration provided to WPP and the associated reduction to revenue for 2015, refer to Footnote 3, Business Combinations.

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The composition of the Company’s property and equipment between those in the United States and those in other locationsfour fiscal quarter period, tested as of the endlast day of each year arefiscal quarter ending on or before December 31, 2022;
a minimum Consolidated Asset Coverage Ratio (as defined in the Revolving Credit Agreement) of not less than 1.5 to 1.0, tested as follows:of the last day of each fiscal quarter ending on or before December 31, 2022; and
a minimum Consolidated Fixed Charge Coverage Ratio (as defined in the Revolving Credit Agreement) of not less than 1.25 to 1.0 for the most recently ended four fiscal quarter period, tested as of the last day of each fiscal quarter ending on or after March 31, 2023.
On February 24, 2023, the Company entered into an additional amendment (the "2023 Amendment") to the Revolving Credit Agreement that modified the financial covenants set forth above, introduced a minimum liquidity covenant, and increased the Applicable Rate payable on SOFR-based loans. Refer to Footnote 16, Subsequent Events for additional information about the 2023 Amendment.
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  December 31,
 (In thousands)
 2017 2016
United States $25,777
 $38,207
Europe 2,252
 2,914
Latin America 625
 726
Canada 132
 94
Other 107
 60
Total $28,893
 $42,001
The Revolving Credit Agreement contains restrictive covenants that limit the Company's ability to, among other things, incur additional indebtedness or liens, make investments and loans, enter into mergers and acquisitions, make or declare dividends and other payments, enter into certain contracts, sell assets and engage in transactions with affiliates. The Revolving Credit Agreement is also subject to customary events of default, including a change in control. If an event of default occurs and is continuing, the Agent or the Required Lenders may accelerate any amounts outstanding and terminate lender commitments. The Company was in compliance with the covenants under the Revolving Credit Agreement as of December 31, 2022.

17.Related Party Transactions
Transactions with WPPThe Revolving Credit Agreement is guaranteed by the Company and its domestic subsidiaries (other than Excluded Subsidiaries (as defined in the Revolving Credit Agreement)) and is secured by a first lien security interest in substantially all assets of the Company and its domestic subsidiaries (other than Excluded Subsidiaries), subject to certain customary exclusions.
As of December 31, 2017, WPP owned 11,289,364 shares of the Company's outstanding Common Stock, representing 19.7% ownership in the Company. The Company provides WPP and its affiliates, in the normal course of business, services amongst its different product lines and receives various services from WPP and its affiliates supporting the Company's data collection efforts. In early 2015, there were a series of business and asset acquisitions and sales and issuances of Common Stock between2022, the Company and WPP as well as a Subscription Receivable agreement that the Company entered into with GroupM, a WPP subsidiary.
On March 30, 2015, the Company and GroupM, a subsidiaryhad outstanding borrowings of WPP, entered into an agreement in which GroupM agreed to a minimum commitment to purchase $20.9 million of the Company's products over five years, which is recorded as Subscription Receivable as contra equity within additional paid-in capital. Included in the assets acquired in the Rentrak Merger were two contracts with WPP wholly owned subsidiaries, reflected in the opening balance sheet as Subscription Receivable at the net present value of $4.2$16.0 million, and $10.3issued and outstanding letters of credit of $3.4 million, respectively. The Company has recordedunder the Subscription Receivable as contra equity within additional paid-in capital on the Consolidated Statementsamended Revolving Credit Agreement, with remaining borrowing capacity of Stockholders' Equity. As cash is received on the Subscription Receivable, additional paid-in capital is increased by the amount of cash received$20.6 million.
Senior Secured Convertible Notes and the Company recognizes imputed interest income.Financing Derivatives
On April 28, 2016, the Company entered into an asset purchase agreement to acquire certain assets of Compete, a wholly-owned subsidiary of WPP. The Compete assets were acquired for $27.3 million in cash, net of a working capital adjustment of $1.4 million. The Company acquired the Compete assets and entered into an agreement for Compete to provide transition services, including engineering, financial, human resources, business contract support, marketing and training services.
On June 26, 2015, the Company entered into a cancellable five-year agreement with Lightspeed, a WPP subsidiary, to conduct a proof of concept and follow-on program ("Program") to demonstrate the capability of designing and deploying a program to collect browsing and demographic data for individual participating households.  The agreement provides, that the Company make annual payments to Lightspeed of approximately $7.0 million. The Program is designed to be a comprehensive data collection effort across multiple in-home devices (e.g., television, streaming devices, computers, mobile phones, tablets, gaming devices and wearables) monitored via the installation of household internet routers (“Meters”) in panelist households.  The Meters will collect and send the data back to the Company for use in its Total Home Panel product. Under the terms of the Program, Lightspeed is paid to manage the operational aspects of panel recruitment, compliance, inventory management, support and collection of panel demographic data.
The Company's results from transactions with WPP and its affiliates as reflected in the Consolidated Statements of Operations and Comprehensive Loss are detailed below:
  Years Ended December 31,
(in thousands) 2017 2016 
2015 (2)
Revenues (1)
 $13,181
 $9,688
 $(41,422)
       
Cost of revenues 12,956
 15,695
 2,244
Selling and marketing 157
 1,743
 460
Research and development 119
 3,662
 13
General and administrative 115
 633
 24
       
Interest income 672
 1,106
 555

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(1) The Company entered into certain agreements with WPP and its affiliates that were not characterized as revenue arrangements under GAAP.  Accordingly, despite cash being received by the Company under these agreements, no revenue has been recognized other than imputed interest income on the net present value of anticipated future cash payments from WPP.  Refer to Footnote 3, Business Combinations, for additional discussion of these agreements.
(2) WPP and its affiliates were deemed a related party following the transactions that were consummated on April 1, 2015. Therefore, only the transactions with WPP and its affiliates for the period April 1, 2015 through December 31, 2015 are disclosed above for 2015. Included in related party revenues is the vendor consideration provided to WPP, the Company reduced revenue by the amount of the vendor consideration received as part of the WPP Capital Transactions and GroupM Arrangement. Vendor consideration represents the effective discount on the issuance of the Company's Common Stock to WPP.

The Company has the following balances related to transactions with WPP and its affiliates reflected in the Consolidated Balance Sheets:
  December 31,
(In thousands) 2017 2016
Accounts receivable, net $2,899
 $8,412
Prepaid expenses and other current assets 
 2,923
Other non-current assets 
 185
Subscription Receivable (additional paid-in capital) 10,254
 21,266
Accounts payable 2,684
 17
Accrued expenses 4,358
 3,084
Deferred revenue 2,755
 4,654
Transactions with CrossCountry Consulting LLC
From September 10, 2017 through October 16, 2017, David Kay served as Interim Chief Financial Officer and Treasurer of the Company. Mr. Kay is a co-founder and managing partner of CrossCountry Consulting LLC (“CrossCountry”), which has been providing the Company with accounting advisory services, audit preparation support and process improvement services since July 2016. The Company's transactions with CrossCountry are detailed below:
  Years Ended December 31,
(In thousands) 2017 2016
General and administrative $662
 $
Investigation and audit related $16,844
 $2,563
     
  December 31,
  2017 2016
Accounts payable $31
 $
Accrued expenses $1,499
 $2,057
Transactions with Starboard
On January 16,During 2018, the Company entered into certain agreements with certain funds affiliated with or managed by Starboard then a beneficial owner of more than five percent of the Company’s outstanding common stock. Pursuant to the agreements, the Company: (i) issued and sold to Starboard $150.0 million in Notes in exchange for $85.0 million in cash and $65.0 million in shares of Common Stock; (ii) granted to Starboard the option to purchase up to an additional $50.0 million in senior secured convertible notes in exchange for a range of $15.0 million to $35.0 million of Common Stock, at Starboard’s option, and the balance in cash; (iii) agreed to grant Starboard warrants to purchase 250,000 shares of Common Stock; and (iv) has the right to conduct a rights offering, which will be open to all stockholders of the Company, for up to $150.0 million in senior secured convertible notes, and Starboard agreed to enter into one or more backstop commitment agreements by which it will backstop up to $100.0 million of the convertible notes offered in the rights offering.
The Notes mature on January 16, 2022. Interest on the Notes accrues at 6.0% per year through January 30, 2019, and interest will thereafter accrue at a minimum of 4.0% per year and a maximum of 12.0% per year, based upon the then-applicable conversion premium.
As a result of the aforementioned agreements and transactions contemplated thereby, as of January 16, 2018, Starboard ceased to be a beneficial owner of more than five percent of the Company’s outstanding Common Stock.


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18.Organizational Restructuring
In December 2017, the Company implemented a reduction in force plan that will result in the termination of approximately 10% of its workforce. The reduction in force was implemented following management’s determination to reduce its staffing levels and exit certain geographic regions, in order to enable the Company to decrease its global costs and more effectively align resources to business priorities. The majority of the employees impacted by the reduction in force exited the Company in the fourth quarter of 2017, with the remainder expecting to exit in early 2018.
Employees separated or to be separated from the Company as a result of these restructuring initiatives were offered severance. Other direct costs consist of legal fees for the dissolution of an entity. In connection with this reduction in force, the Company expects to incur exit related costs up to $12.0 million in total. The Company incurred expenses in the fourth quarter of 2017 of $10.5 million related to these restructuring initiatives, which are recorded as restructuring expenses in the Company's Consolidated Statements of Operations and Comprehensive Loss. The Company expects to incur an incremental charge in the first quarter of 2018 related to certain employees who exit in 2018.
The table below summarizes the balance of accrued restructuring expenses and the changes in the accrued amounts as of and for the year ended 2017.
 (In thousands)
 
Restructuring Expense for
Year Ended December 31, 2017
 Payments Foreign Exchange Accrued Balance December 31, 2017
Severance pay and benefits $10,298
 $(1,340) $14
 $8,972
Other direct costs 212
 
 
 212
Total $10,510
 $(1,340) $14
 $9,184


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19.Quarterly Financial Information (Unaudited)
The following tables summarize quarterly financial data for 2017 and 2016. The Company’s results of operations vary and may continue to fluctuate significantly from quarter to quarter. The results of operations in any period should not necessarily be considered indicative of the results to be expected from any future period.

CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except share and per share data)
  2017
  First Second Third Fourth
Revenues $100,861
 $99,439
 $100,323
 $102,926
Cost of revenues (1)
 47,313
 47,301
 48,803
 50,188
Selling and marketing (1)
 29,733
 31,190
 29,873
 39,713
Research and development (1)
 21,020
 21,502
 21,580
 24,921
General and administrative (1)
 17,785
 13,310
 22,331
 21,225
Investigation and audit related 17,678
 17,399
 21,392
 26,929
Amortization of intangible assets 8,735
 8,443
 8,491
 9,154
Settlement of litigation, net 1,533
 (915) 81,799
 116
Restructuring 
 
 
 10,510
Total expenses from operations 143,797
 138,230
 234,269
 182,756
Loss from operations (42,936) (38,791) (133,946) (79,830)
Interest expense, net (154) (252) (148) (107)
Other income, net 3,184
 2,683
 6,619
 2,719
Loss from foreign currency transactions (20) (1,205) (298) (1,628)
Loss before income tax provision (39,926) (37,565) (127,773) (78,846)
Income tax (provision) benefit (866) (1,061) (2,296) 6,940
Net loss $(40,792) $(38,626) $(130,069) $(71,906)
Net loss per common share:        
Basic $(0.71) $(0.67) $(2.26) $(1.25)
Diluted $(0.71) $(0.67) $(2.26) $(1.25)
Weighted-average number of shares used in per share calculation - Common Stock:        
Basic 57,274,851
 57,498,228
 57,547,863
 57,616,774
Diluted 57,274,851
 57,498,228
 57,547,863
 57,616,774
         
(1) Amortization of stock-based compensation expense is included in the line items above as follows:
  First Second Third Fourth
Cost of revenues $629
 $433
 $384
 $320
Selling and marketing 1,446
 1,532
 1,461
 808
Research and development 821
 450
 537
 462
General and administrative 924
 409
 6,340
 358
  $3,820
 $2,824
 $8,722
 $1,948

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CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except share and per share data)

  2016
  First Second Third Fourth
Revenues $91,324
 $100,494
 $100,722
 $106,920
Cost of revenues (1)
 36,527
 44,523
 45,213
 46,817
Selling and marketing (1)
 30,612
 32,307
 31,004
 32,388
Research and development (1)
 21,116
 22,075
 22,559
 21,225
General and administrative (1)
 45,296
 18,675
 15,525
 18,021
Investigation and audit related 6,495
 15,479
 10,816
 13,827
Amortization of intangible assets 6,025
 8,238
 8,886
 8,747
Gain on asset dispositions (33,457) 
 
 
Settlement of litigation, net (110) 2,620
 (147) 
Total expenses from operations 112,504
 143,917
 133,856
 141,025
Loss from operations (21,180) (43,423) (33,134) (34,105)
Interest expense, net (97) 8
 (242) (147)
Other income, net 3,185
 3,522
 3,196
 2,468
(Loss) gain from foreign currency transactions (1,108) (286) (584) 747
Loss before income tax benefit (provision) (19,200) (40,179) (30,764) (31,037)
Income tax benefit (provision) 6,097
 (805) (432) (853)
Net loss $(13,103) $(40,984) $(31,196) $(31,890)
Net loss per common share:        
Basic��$(0.26) $(0.72) $(0.55) $(0.56)
Diluted $(0.26) $(0.72) $(0.55) $(0.56)
Weighted-average number of shares used in per share calculation - Common Stock:        
Basic 51,353,636
 57,138,787
 57,194,716
 57,276,370
Diluted 51,353,636
 57,138,787
 57,194,716
 57,276,370
         
(1) Amortization of stock-based compensation expense is included in the line items above as follows:
  First Second Third Fourth
Cost of revenues $1,643
 $2,409
 $656
 $133
Selling and marketing 6,505
 1,934
 2,012
 516
Research and development 2,816
 1,494
 910
 682
General and administrative 19,902
 2,397
 1,329
 1,157
  $30,866
 $8,234
 $4,907
 $2,488


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20.Subsequent Events
Termination of Credit and Pledge Agreements
On January 11, 2018, the Company voluntarily terminated the Credit Agreement and the Security and Pledge Agreement between the Company and Bank of America N.A. At the time of termination of the Credit Agreement, the Company had $3.5 million in letters of credit outstanding, which remain outstanding and cash collateralized. The Company did not have access to other borrowings under the Credit Agreement at the time of termination.
Issuance and Sale of Senior Secured Convertible Notes
On January 16, 2018, the Company entered into certain agreements with Starboard,Value LP (collectively, "Starboard"), pursuant to which among other things, the Company issued and sold to Starboard $150.0 milliona total of Notes in exchange for $85.0$204.0 million in cash and 2,600,000 shares of Common Stock valued at $65.0 million. The Company also granted to Starboard an option (the “Notes Option”) to acquire up to an additional $50.0 million in senior secured convertible notes (the “Option Notes”) and agreed to grant StarboardNotes, as well as warrants to purchase 250,000 of Common Stock. In addition, under the agreements, we have the right to conduct a rights offering (the “Rights Offering”), which would be open to allshares of the Company's stockholders, for up to $150.0 millionCommon Stock. The warrants were exercised in senior secured convertible notes (the “Rights Offering Notes”).
The conversion price for the Notes (the “Conversion Price”) is equal to a 30% premium to the volume weighted average trading prices of the Common Stock on each trading day during the ten consecutive trading days commencing on January 16, 2018, subject to a Conversion Price floor of $28.00 per share. In accordance with the foregoing, the Conversion Price was set at $31.29.full by Starboard in 2019.
The Notes mature on January 16, 2022 (the “Maturity Date”). Based uponcontained, among other features, an interest rate reset feature which the determination ofCompany determined represented an embedded derivative that must be bifurcated and accounted for separately from the Conversion Price, interest on the Notes will accrue at 6.0% per year through January 30, 2019. On each of January 30, 2019, January 30, 2020 and February 1, 2021,Notes. This feature reset the interest rate on the Notes will reset, and interest will thereafter accrue at a minimum of 4.0% per year and a maximum of 12.0% per year, based uponon the then-applicable conversion premium in accordance with the termstrading price of the Notes. Company's Common Stock.
Interest on the Notes iswas payable on a quarterly basis in arrears, at the option of the Company, in cash, or, subject to certain conditions, through the issuance by the Company of additional shares of Common Stock (the “PIK Interest Shares”). Any ("PIK Interest Shares so issued will be valued atShares"). On January 25, 2021, the arithmetic averageCompany paid quarterly accrued interest of the volume-weighted average trading prices of the Common Stock on each trading day during the ten consecutive trading days ending immediately preceding the applicable interest payment date.
The Notes Option granted to Starboard is exercisable, in whole or in part, at any time or times$6.1 million through the date that is five business days afterissuance of 2,802,454 PIK Interest Shares.
In connection with the Transactions described in Footnote 5, Convertible Redeemable Preferred Stock and Stockholders' Equity, the Company files a registration statement relating toused cash proceeds of $204.0 million from the Rights Offering. Option Notes may be purchased, at the option of Starboard, through the exchange of a combination of cash and shares of Common Stock owned by Starboard, subject to certain limitations. Any Option Notes purchased pursuant to the Notes Option will have the same terms, including as to maturity, interest rate, convertibility, and security, as the Notes.
Subject to the terms of the Rights Offering, if undertaken, the Company will distribute to all of the Company's stockholders rights to acquire Rights Offering Notes. Stockholders of the Company who elect to participate in the Rights Offering will be allowed to elect to have up to 30% of the Rights Offering Notes they acquire pursuant thereto delivered through the sale to or exchange with the Companyissuance of shares of Commonits Preferred Stock to extinguish the Notes and related financing derivatives on March 10, 2021. The Company also issued 3,150,000 additional shares to Starboard (the "Conversion Shares"), as additional creditor consideration, which were valued at $9.6 million. Lastly, the Company paid interest accrued of $4.7 million for the period from January 1, 2021 to March 10, 2021 through the issuance of 1,363,327 PIK Interest Shares.
The Company recorded a loss on extinguishment of the Notes of $9.3 million for the three months ended March 31, 2021.
Failed Sale-Leaseback Transaction
In June 2019, the Company entered into a sale-leaseback arrangement with a vendor to provide $4.3 million in cash proceeds for previously acquired computer and other equipment. The arrangement was repayable over a 24-month term for total consideration of $4.8 million, with control of the per share value thereof equalequipment transferring to the closing pricevendor at the end of the Common Stock onleaseback term. The leaseback would have been classified as a financing lease. The transaction was deemed a failed sale-leaseback and was accounted for as a financing arrangement. Repayments were allocated between interest expense and a reduction of the last trading dayfinancing liability, and the assets continued to depreciate over their useful lives.
In June 2021, the Company extended the sale-leaseback arrangement for an additional 24-month term. The leaseback extension continued to meet the criteria to be accounted for as a financing arrangement. The present value of cash flows after the extension differed by more than 10% from the present value of the remaining cash flows immediately prior to the commencementextension. Therefore, the Company concluded the extension should be accounted for as an extinguishment of the Rights Offering.existing financing liability. The Rights Offering Notes will be substantially similarfair value of the new financing liability as of June 30, 2021 was $0.9 million, which was estimated using an income approach and a discount rate of 7.5%.
The financing liability is included within other current and other non-current liabilities on the Consolidated Balance Sheet as of December 31, 2022, with $0.3 million classified as current and none classified as non-current.
Remaining future cash payments related to the Notes, except, among other things, with respect to: (i)financing liability under the date from which interest thereon will beginfailed sale-leaseback transaction total $0.3 million as of December 31, 2022, and are scheduled to accrue and the maturity date thereof (which will be four years from the datepaid in monthly installments through June 2023.
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7.Fair Value Measurements
Fair Value Measurements on a Recurring Basis
The Company's financial instruments measured at fair value in its Consolidated Balance Sheets on a recurring basis consist of the Rights Offering Notes)following:
As ofAs of
 December 31, 2022December 31, 2021
(In thousands)Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets
Money market funds (1)
$2,455 $— $— $2,455 $2,429 $— $— $2,429 
Liabilities
Warrants liability (2)
$— $— $718 $718 $— $— $10,520 $10,520 
Contingent consideration liability (3)
— 8,158 — 8,158 — — 5,600 $5,600 
Total$— $8,158 $718 $8,876 $— $— $16,120 $16,120 
(1) Level 1 cash equivalents are invested in money market funds that are intended to maintain a stable net asset value of $1.00 per share by investing in liquid, high quality U.S. Dollar-denominated money market instruments with maturities less than three months.
(2) Warrants liability includes only the Series A warrants as of December 31, 2022 and (ii) the conversion price thereof, which will be equal to 130%2021.
(3) The contingent consideration was recognized as part of the closing priceacquisition described in Footnote 3, Business Combination. The current and non-current portions of the Common Stock oncontingent consideration are $7.1 million and $1.0 million, respectively, and are classified within other current and non-current liabilities in the last trading day immediately priorConsolidated Balance Sheets.
The elimination of the option pricing model used to value the contingent consideration liability reflected a change in the Company's valuation technique during the three months ended June 30, 2022. There were no other changes to the commencement ofCompany's valuation techniques or methodologies during the Rights Offering (subject to a conversion price floor of $28.00 per share). Starboard also agreed to enter into one or more backstop commitment agreements, pursuant to which Starboard agreed to backstop up to $100.0 million in aggregate principal amount of Rights Offering Notes through the purchase of additional Notes.
The Notes are (and any Option Notes will be) guaranteed by certain of the Company’s direct and indirect wholly-owned domestic subsidiaries (the “Guarantors”) and are (and any Option Notes will be) secured by a security interest in substantially all of the assets of the Company and the Guarantors, pursuant to a Guaranty, dated as of January 16, 2018, entered into by the Guarantors (the “Guaranty Agreement”), and a Pledge and Security Agreement, among the Company, the Guarantors and Starboard Value and Opportunity Master Fund Ltd. as collateral agent.
The agreements contain certain affirmative and restrictive covenants with which the Company must comply, including (i) covenants with respect to limitations on additional indebtedness, (ii) limitations on liens, (iii) limitations on certain payments, (iv) maintenance of certain minimum cash balances and (v) the filing of the Form 10-K and certain other disclosures with the SEC.

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ITEM 9.CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.
ITEM 9A.CONTROLS AND PROCEDURES
i) Background
As described in the Explanatory Note to this Annual Report on Form 10-K, in February 2016 the Audit Committee (the “Audit Committee”) of our Board of Directors (the “Board”) commenced an internal investigation, with the assistance of outside advisors, into certain matters, including revenue accounting practices, disclosures and internal controls.
As previously reported in the Company’s Current Report on Form 8-K filed on November 23, 2016 (the “November 2016 8-K”), the Audit Committee’s investigation concluded that, as a result of certain instances of misconduct and errors in accounting determinations, adjustments to the Company’s accounting for certain nonmonetary and monetary transactions were required. As further disclosed in the November 2016 8-K, the Audit Committee’s investigation also identified concerns regarding internal control deficiencies, including concerns about tone at the top, errors in judgment identified with respect to issues reviewed, information not having been provided to the Company’s accounting group and its external auditors, and the sufficiency of public disclosures made by the Company about certain performance metrics. Following the completion of the Audit Committee investigation, the Audit Committee and the Company began the process of considering and implementing appropriate remedial measures, with a view toward improved accounting and internal control practices.
Prior to the filing of this Annual Report on Form 10-K, we have neither issued audited financial statements, nor filed Annual Reports on Form 10-K or Quarterly Reports on Form 10-Q, since our Annual Report on Form 10-K for the yearyears ended December 31, 2014 and our Quarterly Report on Form 10-Q2022 or 2021, respectively.
The following tables present the changes in the Company's recurring Level 3 fair value measurements for the quarter ended September 30, 2015, respectively. Consequently, management previously had not evaluated the effectiveness of our disclosure controlswarrants liability, contingent consideration, financing derivatives and procedures since the end of the quarter ended September 30, 2015 or our internal control over financial reporting since December 31, 2014.
This Annual Report on Form 10-K includes audited Consolidated Financial Statements for the three-year period ended December 31, 2017, as well as unaudited restated selected financial datainterest make-whole derivative for the years ended December 31, 20132022 and 2014, which is included2021:
(In thousands)Warrants LiabilityContingent Consideration LiabilityFinancing DerivativesInterest Make-whole Derivative
Balance as of December 31, 2020$2,831 $— $11,300 $871 
Total (gain) loss included in other income (expense), net (1)
7,689 — (1,800)150 
Settlement or derecognition upon extinguishment of host debt— — (9,500)(1,021)
Initial recognition and measurement— 5,600 — — 
Balance as of December 31, 2021$10,520 $5,600 $— $— 
Total gain included in other income (expense), net (1)
(9,802)— — — 
Total loss recognized due to remeasurement (1)
— 2,348 — — 
Transfer to Level 2 (2)
— (7,948)— — 
Balance as of December 31, 2022$718 $— $— $— 
(1) All gains and losses were recorded in Item 6other income (expense), “Selected Financial Data.” In connection withnet in the preparationConsolidated Statements of Operations and filing of this Annual Report on Form 10-K, we have conductedComprehensive Loss.
(2) The transfer was due to the requisite evaluationsresolution of the effectivenesscontingency regarding the amount of our disclosure controlsconsideration payable during the three months ended June 30, 2022. Transfers between levels of the fair value hierarchy are recognized at the beginning of the reporting period.
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The following table displays the valuation technique and procedures and internal control over financial reporting, eachthe significant inputs, certain of which are unobservable, for the Company's Level 3 liabilities that existed as of December 31, 2017. 2022 and 2021 that are measured at fair value on a recurring basis.
Fair value measurements
Valuation TechniqueSignificant InputsDecember 31, 2022December 31, 2021
Warrants liabilityOption pricingStock price$1.16$3.34
Exercise price$2.47$2.47
Volatility65.0%85.0%
Term1.49 years2.49 years
Risk-free rate4.6%0.9%
Contingent consideration liability
Combination (1)
Product credit$10.7 million
Revenue volatility21.0%
Risk premium8.4%
Term1.04 years
Cost of debt4.4%
(1) The remedial measures undertaken by our current management teamselected weightings for the option pricing model and their advisors in response to,discounted cash flow model outcomes were 70.0% and following, the Audit Committee investigation, and the conclusions that our current management team reached in its evaluations of the effectiveness of our disclosure controls and procedures and internal control over financial reporting30.0% respectively, as of December 31, 2017,2021. The contingent consideration liability was transferred to Level 2 in 2022 and therefore, input and weightings are described below in detail.
ii) Material Weaknesses Identified and Remedial Measures Implemented Following Audit Committee Investigation
In response to the Audit Committee’s investigation, as well as other matters that management identified as part of its financial and accounting review, management has devoted substantial resources to the planning and ongoing implementation of remediation efforts to address the material weaknesses described herein, as well as other identified areas of risk. These remediation efforts, summarized below, which either have already been implemented or are continuing to be implemented, are intended to address both the identified material weaknesses and to enhance our overall financial control environment. Leading this effort have been our Chairman Emeritus (formerly our Chief Executive Officer), President and Executive Vice Chairman, our Chief Financial Officer, our General Counsel & Chief Compliance, Privacy and People Officer (“CCPPO”), and our Vice President of Enterprise Risk Management, all of whom (other than our President and Executive Vice Chairman) assumed their roles with the Company in the second half of 2016 or during 2017.
As a result of the Audit Committee investigation, as well as management’s review of its financial and accounting records and the other work completed by our management team and the Company's advisors, we concluded that,not applicable as of December 31, 2017, we have material weaknesses relating2022. Refer to certain internal controls over revenue accounting, controls over business combinations, our financial close and reporting process, and our tax processes. These material weaknesses asFootnote 2, Summary of December 31, 2017 and remediation efforts underway are summarized below in “Management’s ReportSignificant Accounting Policies for further information on Internal Control Over Financial Reporting as of December 31, 2017.”

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the valuation technique.
The Audit Committee and management had previously identified material weaknessesprimary sensitivities in entity level controls, and certain revenue accounting controls, which management has concluded were remediated prior to December 31, 2017.  These material weaknesses and remediation actions are discussed in this section.
Entity Level Controls
Our control environment, which is the responsibility of senior management and is subject to the oversightvaluation of the Audit Committeewarrants liability are driven by the price and Board, establishes the toneexpected volatility of the organization, influencesCompany's Common Stock at the control consciousnessvaluation date.
The primary sensitivities in the valuation of our officers and employees, and is the foundation for all other components of internal control over financial reporting. A proper organizational tone can be promoted through a variety of actions, such as well-documented and communicated policies, a commitment to hiring a sufficient number of competent employees, the manner and content of communications and messaging on these types of policies and procedures, strong internal controls and effective governance. Entity level controls also include controls over the financial close and reporting process; accordingly, management has broadly grouped entity level controls into two material weaknesses - general entity level controlscontingent consideration model are driven by forecasted performance and the financial close and reporting process. We believe we have remediated our general entity level controls, and as described in “iv) Management’s Report on Internal Control Over Financial Reporting asselected weighting of December 31, 2017”, we arethe model. The primary sensitivities in the processdiscounted cash flow model are the cost of remediating our financial close and reporting process material weakness.
Prior to the remediation of our general entity level controls, which primarily took place during 2017, we did not maintain an overall corporate culture that (i) instilled an adequate enterprise-wide attitude of control consciousness, (ii) establishedsufficient and consistent focus on appropriate accounting policies and procedures, (iii) implemented adequately designed and operating process-level controls, (iv) adequately responded to internal control findings in a consistent manner, (v) sufficiently encouraged internal reporting of potential violations or adequate review of such reports or (vi) established adequate accountability for recording transactions in accordance with generally accepted accounting principles in the U.S. ("GAAP"). Management had identified the following material weaknesses in our entity level control environment:
Certain members of management created a culture that led to sales practices designed to maximize, and manage, the timing of revenue recognition in a manner inconsistent with the Company’s policies.
We did not have sufficient internal controls to limit the ability of members of management to exercise influence over (i) our revenue accounting decision making, (ii) significant assumptions used in forecasts that impacted certain asset carrying amounts related to acquired assets and our deferred tax assets and (iii) the methodologies used and related disclosures relating to key financial information and investor presentations, including with respect to customer count and vCE products.
Our processes for identifying internal control weaknesses (including through internal audit, a whistleblower hotline and whistleblower protection processes) and ensuring appropriate investigation and follow-up of identified concerns (including addressing and properly remediating identified conduct issues) were not sufficiently robust.
Our remediation initiatives with respect to general entity level controls, which our current management has concluded had been implemented and were effective as of December 31, 2017, included focusing on setting a tone of integrity, transparency and honesty, hiring and developing qualified personnel, and clearly communicating roles and responsibilities. Specifically:
Since January 2017, we have appointed a new Chief Financial Officer, Chief Revenue Officer, Chief Information Officer, General Counsel & CCPPO, Deputy General Counsel for Contracts, Privacy and Compliance, Deputy General Counsel for Securities and Corporate Governance and a Vice President of Enterprise Risk Management, and also appointed an additional Deputy General Counsel. These new employees, along with multiple other new and continuing employees, have collectively set a tone of integrity, transparency and honesty. These individuals have been responsible for overseeing the remediation of our material weaknesses, including implementation of various actions to reinforce a culture of integrity, transparency and honesty. In addition, our Board has formed a committee to direct the search for a new Chief Executive Officer, and has retained a leading executive search firm to assist in considering both internal and external candidates for that role.
In addition to the changes to, and expansion of, our leadership team, we have added other individuals whom we believe have the commensurate level of knowledge, experience and training required to properly support our financial reporting and accounting functions, and we have utilized and continue to utilize temporary external consultants to assist in our accounting processes and to provide the training necessary for the support of such functions.
We have implemented, and will continue to enhance, an ongoing training program regarding significant accounting and financial reporting matters for accounting, financial reporting, sales and delivery team members, as well as corporate executives. Training also addresses, among other things, the Company’s various products to facilitate proper accounting treatment evaluations.
We have reinforced the importance of integrity, accountability, and adherence to established internal controls, policies and procedures, including through the adoption of a revised Code of Business Conduct and Ethics and a revised Reporting and Non-Retaliation Policy (our corporate whistleblower program) to encourage reporting of suspicious activity and misconduct, through formal communications, town hall meetings, and mandatory employee training on

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topics including our compliance management system, privacy, information security, Code of Business Conduct and Ethics and our Reporting and Non-Retaliation Policy, Sexual Harassment Policy, Drug Free Workplace requirementsdebt and the Foreign Corrupt Practices Act.selected weighting of the model.
Under the direction of our new General Counsel & CCPPO, we have created a new Compliance Coordinating Committee at the executive level that is chaired by the General Counsel & CCPPO and oversees the newly created compliance program.  The compliance program includes a policies and procedures library; education and mandatory training; and monitoring for compliance and corrective action, if appropriate. The program also includes policies for receiving, evaluating, and reporting on allegations of misconduct or non-compliance with the Company’s revised Code of Business Conduct and Ethics and revised Reporting and Non-Retaliation Policy.
As part of improving the corporate environment and our financial close and reporting process level, certain enhancements were made to direct controls that management and the audit committee believe directly underscore the importance of a proper corporate culture.
The Company has strengthened its forecasting procedures, such as increasing the involvement of key Company personnel who would be knowledgeable and can contribute to the development and validation of key assumptions, the use of outside experts to help validate models and assumptions and a management review and approval process for key forecasts.
We have strengthened our interim and annual financial review controls to detect and correct accounting errorsFair Value Measurements on a timely basis and enhance the integrity of external financial reporting through the establishment of a Disclosure Committee and a sub-certification process whereby managers must take ownership of and make representations as to the effectiveness of internal controls in their respective areas of oversight.Nonrecurring Basis
The preparation of our key financial information for disclosure purposes, key investor presentations or reports, and other public disclosures of performance metrics are now subject to multiple levels of review, are agreed to or reconciled to the Company’s underlying books and records, and changes in approaches or definitions are subject to review by both the Disclosure Committee and the Chief Financial Officer in order to assess the accuracy thereof and potential disclosure implications.
Revenue Accounting
Prior to December 31, 2017, we had identified the following material weaknesses related to our revenue accounting processes:
We did not ensure that our revenue accounting was free of sales pressure from former members of senior management to maximize, or manage the timing of revenue recognition in a manner inconsistent with the Company’s policies.
We identified instances where there were additional arrangements entered into or other information that would have impacted our accounting, but that were not properly disclosed to the Company’s accounting group or its external auditors.
For certain nonmonetary and monetary transactions, we found instances where there did not appear to be a clear need for all of the data that was being exchanged or sold, including the customer need or value associated with historical data for raw data feed products.
The remediation steps that we implemented prior to December 31, 2017 in order to remediate those weaknesses are described below.
We have (i) designed control remediation efforts to address issues of management influence on the revenue accounting process, (ii) implemented sales and delivery team training on revenue accounting issues, such as documenting modifications to contract arrangements, and (iii) implemented training and other efforts to reinforce for accounting personnel a better understanding of accounting issues related to contract changes or other contract modifications to provide for the proper accounting treatment and disclosure of those items. We have also implemented a process designed to timely identify instances of contracting, sales, or delivery issues that would require management attention and accounting input. We have also enhanced our quarterly certification process regarding contract compliance by personnel involved in product sales and delivery.
We have reviewed our revenue accounting policies, with the assistance of external consultants, for all of our products, and have updated our revenue accounting policy manual accordingly. Standard operating procedures manuals are being developed to provide guidance and consistency of accounting for our various products, including protocols for escalating the need for accounting policy oversight when we are developing new products or entering into complex or non-routine transactions.
We developed new revenue accounting procedures to ensure that a formalized process is followed, with appropriate levels of review and approval in areas of accounting judgment related to our revenue accounting. In areas where contracts containing multiple elements are used or more complex products are sold (similar to the revenue contracts

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that were subject to the investigation), significant accounting judgments related to fair value of these contracts or products are reviewed and approved by a pricing oversight committee composed of senior managers of the Company.
We have implemented product-pricing procedures designed to ensure pricing consistency and to support the fair value estimates that are used in the revenue accounting processes in areas where contracts containing multiple elements are used or more complex products are sold. Such procedures include an internal pricing oversight committee that meets to review the pricing determinations on our more complex products. Our rate cards and product pricing calculators used to set product prices are now routinely reviewed by the pricing oversight committee, and we have put in place a process to update these pricing mechanisms based on third-party sales of our products and other data.
Our revenue recognition generally occurs upon product delivery or product initiation for subscription related revenue products. We have strengthened our controls over "evidence of delivery” in our systems and processes. Various delivery platforms, like online portal access, file sharing sites, and delivery via email have all been evaluated, and the controls have been strengthened for documenting and supporting evidence of delivery.
We have increased the number, experience level and skills of the personnel involved in accounting and revenue accounting and in the accounting policy group through hiring and improved training processes. This, in turn, has strengthened our overall internal controls over the revenue process and allowed us to include additional supervisory controls and interim and annual financial review controls, including a sub-certification process and a Disclosure Committee procedure.
Technical Accounting
In addition to deficiencies related to technical accounting for revenue, we identified a material weakness as it relates to the identification, evaluation and application of GAAP related to certain other technical accounting areas, such as accounting for equity-based compensation and capitalized software.  Management’s remediation efforts included the hiring of new finance personnel with the requisite skills and experience to identify and evaluate complex technical accounting issues and transactions, determine appropriate accounting treatment, and obtain the appropriate level of review and approval for accounting determinations. This includes a Chief Financial Officer and principal accounting officer; a Vice President of External Reporting and Revenue, a Director of External Reporting and Accounting Policy; and an Accounting Manager for External Reporting and Accounting Policy, SEC and Technical Accounting.  We also implemented more standardized processes and controls for the identification, evaluation, documentation and review of complex accounting transactions. As a result, we believe that this material weakness has been remediated as of December 31, 2017.
iii) Evaluation of Disclosure Controls and Procedures as of December 31, 2017
Our management, with the participation of our President and Executive Vice Chairman (principal executive officer) and Chief Financial Officer (principal financial officer), evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)) as of December 31, 2017. The term “disclosure controls and procedures” as so defined means controls and other procedures of a company that are designed to ensure that information required to be disclosed by the company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and that information is accumulated and communicated to the company’s management, including its principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosures. Management recognizes, nevertheless, that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives.
Based on the foregoing evaluations, our President and Executive Vice Chairman and Chief Financial Officer have concluded that as of December 31, 2017, due to the existence of certain remaining unremediated material weaknesses in the Company’s internal control over financial reporting described below, the Company’s disclosure controls and procedures were not effective at a reasonable assurance level.
Notwithstanding the identified material weaknesses, management believes that the Consolidated Financial Statements and related financial information included in this Annual Report on Form 10-K fairly present in all material respects our financial condition, results of operations and cash flows as of and for the periods presented. Management’s belief is based on a number of factors, including, but not limited to:
(a)the completion of the Audit Committee’s investigation and the substantial resources expended (including the use of external consultants) to respond to the findings and the resulting adjustments we made to our previously issued financial statements;
(b)our internal review that identified certain additional accounting errors, leading to the adjustment of our previously issued financial statements;

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(c)based on the efforts in (a) and (b) above, we have updated, and in some cases corrected, our accounting policies and have applied these to our previously issued financial results and to our fiscal year 2015, 2016 and 2017 financial results; and
(d)certain remediation actions we have undertaken to address the identified material weaknesses, as discussed above.
iv) Management’s Report on Internal Control Over Financial Reporting as of December 31, 2017
Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Internal control over financial reporting is a process designed by, or under the supervision of, a company's principal executive officer and principal financial officer and is effected by the company's board of directors, management and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external reporting purposes in accordance with GAAP and includes those policies and procedures that:
pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that the receipts and expenditures of the company are being made only in accordance with appropriate authorization of management and the Board; and
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Furthermore, projecting any evaluation of effectiveness to future periods is subject to the risk that controls may become inadequate due to changes in conditions, and the risk that the degree of compliance with the policies or procedures may deteriorate.
Under the supervision and with the participation of management, including our President and Executive Vice Chairman and Chief Financial Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework described in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on the results of that evaluation, as well as factors identified during the Audit Committee investigation and the work undertaken by management and the Company's advisors, management has concluded that our internal control over financial reporting as of December 31, 2017 was not effective due to the existence of certain remaining unremediated material weaknesses in internal control over financial reporting described below. We have also described our remediation efforts related to these material weaknesses.
A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis.
Revenue Accounting
In our evaluation, we identified various material weaknesses in our revenue accounting. The following identifies accounting control deficiencies that resulted in the material weaknesses noted as of December 31, 2017.
Our accounting for revenue contracts is complex and dependent on manual processes with many different accounting interfaces and on technologies that require updating to improve the accuracy and efficiency of our revenue accounting. We did not design and maintain adequate compensating controls to sufficiently mitigate these operational risks.
We did not design and maintain adequate controls to ensure that accounting for contracts in our international operations was sufficiently robust and timely.
We did not have adequate staffing resources to properly perform our revenue accounting and therefore we are overly reliant on external consultants to assist in the accounting for our revenue contracts.
The remediation efforts described under “Revenue Accounting” above in “Material Weaknesses Identified and Remedial Measures Implemented Following Audit Committee Investigation”, some of which are ongoing, were designed to address these internal control weaknesses.
Business Combinations and Asset Acquisitions
Our evaluation also concluded that we did not have effective controls over the Company’s accounting for significant business combinations or unique asset acquisitions. These material weaknesses primarily related to the following:
We did not have a sufficient complement of business and accounting personnel to fully evaluate, value and perform the analyses and ongoing accounting processes for these transactions;

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We did not maintain adequate controls to ensure that key assumptions in the forecasts to support the value for these business combinations and asset acquisitions were properly developed, documented and supported; and
We did not maintain adequate controls to ensure that post-acquisition records were properly maintained in order to ensure appropriate accounting treatment pursuant to the agreements and in accordance with GAAP.
To strengthen our internal controls with respect to significant business combinations and other asset acquisitions, we have enhanced, and continue to refine, our processes, procedures and documentation pertaining to our approach to the initial and on-going accounting for business combinations. We have also implemented more detailed documentation requirements for assessing, valuing and accounting for these business combinations and significant asset acquisition transactions.
Financial Close and Reporting Process
Our evaluation also concluded that we did not design effective controls over the Company’s financial close and reporting process. The financial close and reporting process includes the accumulation and recording of our accounting transactions, the determination of period-end cutoff entries, the review and understanding of the reasons behind significant changes or fluctuations in financial statement line items and the review and approval of key account reconciliations. The material weaknesses primarily related to not maintaining adequate controls to enable the close process to be completed in a timely and accurate manner, which includes accurately estimating accruals and the overall preparation, review and understanding of our financial results.
In order to strengthen the internal controls with respect to our financial close and reporting processes, we have:
Increased the number, experience level and skills of the personnel involved in our general ledger and financial reporting functions through hiring and improved training programs.
Re-aligned our team and closing processes to ensure we can reduce the amount of time it takes to complete the close cycle.
Added additional corporate level reviews of our results within both domestic and international subsidiaries including more robust analysis of fluctuations.
Automated our processes relating to portions of significant accruals through our purchasing system.
Implemented additional internal management reporting to improve our ability to review, understand and analyze our financial results, trends and key performance metrics.
Enhanced and strengthened our documentation and review procedures relating to our key account reconciliations, including additional supervisory controls.
We expect to continue to enhance these actions until the material weaknesses are fully remediated.
Tax Processes
Our evaluation also concluded that the controls over the Company’s tax processes did not operate effectively. These processes include the accumulation of accounting and transactional information across the organization to determine the proper tax treatment for both GAAP accounting and statutory tax reporting in all jurisdictions where a tax return is required to be filed. These processes pertain to income taxes as well as other indirect taxes, such as sales tax, value added tax, and franchise taxes, and must be performed in a timely manner. The material weaknesses primarily related to the following:
We did not have a sufficient complement of personnel in our tax department with an appropriate level of knowledge and experience to timely perform all of the tasks necessary to evaluate and account for our tax related matters; and
The tax department is dependent on the timely receipt of detailed financial information (e.g. by jurisdiction, entity, contract, product, etc.) that forms the foundation of our tax computations and conclusions.  This information has not always been accurate and has been inconsistently available in a timely manner, requiring additional efforts by the tax department to ensure the timely and accurate execution of our tax processes. 
In order to strengthen the internal controls with respect to our tax processes, we are:
In 2017, we hired additional tax personnel with the appropriate skill levels to ensure there are sufficient resources to timely execute controls.  We anticipate that we will continue to hire additional staff in 2018; and
We have engaged an external accounting firm to provide an additional layer of review over our tax reporting process, including the review of our quarterly and annual income tax provision calculations as well as our annual U.S. federal and material state income tax returns.
When fully implemented and operational, we believe all of the measures described above will remediate the deficiencies we have identified and strengthen our internal control over financial reporting. We are committed to continuing to improve our internal control processes and will continue to diligently and vigorously review our financial reporting controls and procedures. As we continue to evaluate and work to improve our internal control over financial reporting, we may take additional measures to address

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deficiencies or modify certain of the remediation measures described above. We expect that our remediation efforts, including design and implementation, will continue through 2018, with the goal to fully remediate all remaining weaknesses by year-end 2018.
The Company’s independent registered public accounting firm has audited the effectiveness of internal control over financial reporting as of December 31, 2017, and has issued a report thereon that is included elsewhere in this Annual Report on Form 10-K. The Company’s independent registered public accounting firms have audited, and issued unqualified opinions with respect to, the Company’s Consolidated Financial Statements for 2015, 2016 and 2017, which opinions are included in Item 8, “Financial Statements and Supplementary Data”, of this Annual Report on Form 10-K.
v) Changes in Internal Control Over Financial Reporting
Other than the ongoing remediation efforts described above, there have been no changes in our internal control over financial reporting during the quarter ended December 31, 2017 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the stockholders and the Board of Directors of comScore, Inc.
Opinion on Internal Control over Financial Reporting
We have audited the internal control over financial reporting of comScore, Inc. and its subsidiaries (the “Company”) as of December 31, 2017, based on criteria established in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, because of the effect of the material weaknesses identified below on the achievement of the objectives of the control criteria, the Company has not maintained effective internal control over financial reporting as of December 31, 2017, based on criteria established in Internal Control-Integrated Framework (2013) issued by COSO.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended December 31, 2017,2022, the Company recorded a goodwill impairment charge of $46.3 million. Refer to Footnote 10, Goodwill for further details. The remeasurement of goodwill is classified as a non-recurring Level 3 fair value assessment due to the significance of unobservable inputs developed in the determination of the fair value. The Company and our report dated March 23, 2018, expressed an unqualified opinion on those financial statements.
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessmentused a discounted cash flow model to determine the estimated fair value of the effectiveness of internal control over financial reporting includedunit. The Company made estimates and assumptions regarding future cash flows, discount rates, long-term growth rates and market values to determine the reporting unit's estimated fair value. It is possible that future changes in such circumstances, or in the accompanying Management’s Report on Internal Control over Financial Reporting as ofDecember 31, 2017. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registeredvariables associated with the PCAOBjudgments, assumptions and are required to be independent with respect toestimates used in assessing the fair value of the reporting unit, would require the Company in accordance withto record additional non-cash impairment charges.
8.Property and Equipment
As of December 31,
(In thousands)20222021
Computer equipment$64,653 $85,847 
Capitalized internal-use software72,672 55,428 
Leasehold improvements15,456 15,594 
Computer software (including software license arrangements of $1,365 in 2022 and $1,072 in 2021)8,400 8,864 
Finance leases9,918 8,886 
Office equipment, furniture, and other5,164 5,347 
Total property and equipment176,263 179,966 
Less: accumulated depreciation and amortization (including software license arrangements of $1,243 in 2022 and $1,072 in 2021)(139,896)(143,515)
Total property and equipment, net$36,367 $36,451 
For the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Material Weaknesses
A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company’s annual or interim financial statements will not be prevented or detected on a timely basis. Material weaknesses have been identified and included in management's assessment as set forth below, together with the combined material weaknesses in the COSO principles related to the (i) attracting, developing and retaining competent individuals and (ii) deploying control activities.
The Company entered into complex multiple-element revenue arrangements and the controls over the accounting for revenue is highly dependent on manual processes. The Company did not design and maintain adequate compensating controls to address these risks, including ensuring adequate contract reviews were performed.
The Company did not have adequate staffing resources to ensure revenue recorded was accurate and complete and was overly reliant on external consultants to assist in the accounting for complex revenue arrangements.

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The Company did not design and maintain adequate controls to ensure that accounting for contracts in its international operations was sufficiently robust and timely and that international contracts were accounted for in accordance with the Company’s policies and US GAAP.
The Company failed to maintain adequate controls to ensure that account reconciliations for revenue and revenue-related accounts were accurately and timely performed, reviewed and analyzed.
The Company did not have a sufficient compliment of business and accounting personnel to fully evaluate, value and perform the analysis and ongoing processes for the accounting for business combinations, including ensuring that key assumptions in the forecasts were adequately developed, documented and supported.
The Company did not maintain adequate controls over the financial close and reporting process to enable the close process to be completed in a timely and accurate manner, which includes accurately estimating accruals and the overall preparation, review and analysis of the financial results.
The Company did not have a sufficient compliment of personnel in their tax department with an appropriate level of knowledge and experience to timely perform a review and execute controls over the preparation of the tax provision.
These material weaknesses were considered in determining the nature, timing, and extent of audit tests applied in our audit of the consolidated financial statements as of and for the yearyears ended December 31, 2017, of the Company,2022, 2021, and this report does not affect our report on such financial statements.

/s/ Deloitte & Touche LLP

McLean, VA
March 23, 2018


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ITEM  9B.OTHER INFORMATION
Not Applicable.
PART III
ITEM  10.DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
DIRECTORS AND EXECUTIVE OFFICERS
The names of our current executive officers2020, depreciation expense was $16.8 million, $15.8 million and directors and their ages, positions and biographies are set forth below. Also included for our directors is information regarding their service on other public company boards, and their specific experience, qualifications, attributes and skills that led to the conclusion that each director should serve on our Board of Directors ("Board"). This information is as of March 15, 2018.
NameAgePosition
William Livek63President and Executive Vice Chairman
Gregory Fink51Chief Financial Officer and Treasurer
Carol DiBattiste66General Counsel & Chief Compliance, Privacy and People Officer
Christopher Wilson51Chief Revenue Officer
Daniel Hess49Chief Product Officer
Joseph Rostock55Chief Information and Technology Operations Officer
Susan Riley (1)(2)(3)(5)
59Chair of the Board of Directors
Gian Fulgoni70Chairman Emeritus
Jacques Kerrest (1)(3)
71Director
Michelle McKenna-Doyle (3)(5)
52Director
Wesley Nichols (2)(4)(5)
53Director
Paul Reilly (2)(3)(5)
61Director
Brent Rosenthal (2)(4)
46Director
Bryan Wiener (1)(4)
47Director

(1)Member of Nominating and Governance Committee
(2)Member of Compensation Committee
(3)Member of Audit Committee
(4)Member of Special Committee
(5)Member of CEO Search Committee
Executive Officers and Executive Director
William (Bill) Livek has served as our President and Executive Vice Chairman since January 2016. Mr. Livek previously served as Vice Chairman and Chief Executive Officer of Rentrak Corporation from June 2009 until the Company’s acquisition of Rentrak in January 2016. From December 2008 until June 2009, Mr. Livek was founder and Chief Executive Officer of Symmetrical Capital, an investment and consulting firm. From February 2007 until December 2008, he was Senior Vice President, Strategic Alliances and International Expansion, of Experian Information Solutions, Inc., a provider of information, analytical and marketing services, and was co-President of Experian’s subsidiary Experian Research Services from October 2004 to February 2007. He holds a B.S. degree in Communications Radio/Television from Southern Illinois University. Mr. Livek brings substantial industry experience and audience measurement expertise to our Board.
Gregory A. Fink has served as our Chief Financial Officer and Treasurer since October 2017 and previously served as our Executive Vice President, Finance since joining the Company earlier in October 2017. Prior to joining the Company, Mr. Fink was the Senior Vice President, Controller and Chief Accounting Officer at Fannie Mae, a government-sponsored enterprise in the mortgage industry, since 2011. Mr. Fink holds a B.S. in Business Administration with an accounting emphasis from San Diego State University and is a Certified Public Accountant.

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Carol DiBattiste has served as our General Counsel & Chief Privacy and People Officer since January 2017 and as our Chief Compliance Officer since April 2017. Ms. DiBattiste previously held positions at the U.S. Department of Veterans Affairs with the Board of Veterans' Appeals as Executive in Charge and Vice Chairman from August 2016 to January 2017, and Senior Advisor for Appeals Modernization, Office of the Secretary, from May 2016 to August 2016. Prior to that, Ms. DiBattiste served as Executive Vice President, Chief Legal, Privacy, Security, and Administrative Officer of Education Management Corporation, an operator of for-profit post-secondary educational institutions, from March 2013 through March 2016. She also served as Executive Vice President, General Counsel and Chief Administrative Officer of Geeknet, Inc., an online retailer, from April 2011 through March 2013. Ms. DiBattiste holds an L.L.M., Law from the Columbia University School of Law, a J.D. from Temple University School of Law, and a B.A., Sociology-Criminal Justice from LaSalle University.
Christopher Wilson has served as our Chief Revenue Officer since June 2017. Mr. Wilson previously served as our Executive Vice President, Commercial from January 2016 to June 2017. Prior to joining the Company, Mr. Wilson served as President, National Television at Rentrak Corporation from 2010 until the Company’s merger with Rentrak in January 2016. Mr. Wilson holds a Bachelor’s Degree in Broadcast Communications from Southern Illinois University, Carbondale.
Daniel Hess has served as our Chief Product Officer since January 2018. Mr. Hess previously served as our Executive Vice President, Products from September 2016 to December 2017. Prior to joining the Company, Mr. Hess served as an investor in and advisor to start-ups in digital media and marketing, software service and e-commerce. Previously, Mr. Hess served as Chief Corporate Development Officer of Rewards Network, a loyalty marketing and financial services company, from January 2014 to December 2014. Prior to that, Mr. Hess was Chief Executive Officer, Director and Co-Founder of Local Offer Network, Inc., a technology and marketing services company, from January 2010 to October 2013. Mr. Hess holds a B.A., Psychology from the University of Rochester.
Joseph Rostock has served as our Chief Information Officer since September 2017, and as our Chief Information and Technology Operations Officer since January 2018. Mr. Rostock is also the Principal and Founder of AllosLogic, an advisory and executive management services provider founded in 2017. Prior to joining the Company, Mr. Rostock served as Chief Technology Officer of Inovalon, Inc., a cloud-based analytics platform provider, from 2013 to 2017. Mr. Rostock holds a B.A., Radio, Television and Film from Temple University and also completed graduate studies in Computer Science at St. Joseph’s University.
Non-Executive Directors
Susan Riley has served as Chair of our Board since September 2017 and a director since June 2017. Ms. Riley previously served as Chief Financial Officer of Eastern Outfitters, LLC (formerly Vestis Retail Group LLC), a private equity-owned retail holding company for Bob's Store, Eastern Mountain Sports, and Sport Chalet, from December 2014 to October 2016. Prior to that, Ms. Riley served as Executive Vice President of Finance and Administration for The Children’s Place, an apparel company, from January 2007 to February 2011.$14.1 million, respectively. In addition, to her service on our Board, Ms. Riley has also served on the board of directors for Essendant, a wholesale distributor of workplace products, since 2012. Ms. Riley holds a B.S. in Accountingamortization expense from The Rochester Institute of Technologyfinance leases was $2.4 million, $2.2 million and an MBA from Pace University. She was formerly licensed as a Certified Public Accountant in the State of New York. Ms. Riley brings significant financial and operational, including turnaround, leadership experience to our Board.
Gian M. Fulgoni, one of our co-founders, has served as Chairman Emeritus of our Board since November 2017.  Dr. Fulgoni previously served as our Chief Executive Officer from August 2016 to November 2017, Chairman Emeritus from March 2014 to August 2016, and Executive Chairman from September 1999 to March 2014.  Dr. Fulgoni has served on the board of directors of PetMed Express, Inc., an online retailer, since 2002 and previously served on its board from August 1999 to November 2000.  Dr. Fulgoni holds an honorary Doctor of Science and an M.A. in Marketing from the University of Lancaster and a B.Sc. in Physics from the University of Manchester. As a co-founder of the Company with substantial industry experience, Dr. Fulgoni is a valued asset to our Board.
Jacques Kerrest has served as a director since June 2017. Mr. Kerrest has served as Executive Vice President and CFO of Intelsat S.A., a communications satellite services provider, since February 2016. Prior to his appointment at Intelsat, he held executive-level roles at numerous leading technology and communications companies, including ActivIdentity Corporation, Virgin Media Inc., Harte-Hanks Corporation and Chancellor Broadcasting Company. Previously, Mr. Kerrest served on the boards of directors of several public companies. Mr. Kerrest received his Master of Science Degree from Faculté des Sciences Économiques in Paris, France, and a Masters of Business Administration from Institut D’Etudes Politiques De Paris in Paris, France as well as the Thunderbird School of Global Management in Glendale, Arizona. Mr. Kerrest’s deep financial expertise and background enable him to bring valuable perspective to our Board.
Michelle McKenna-Doyle has served as a director since October 2017. Ms. McKenna-Doyle has served as Senior Vice President and Chief Information Officer of the National Football League since September 2012. She has served on the board of directors of RingCentral, Inc., a leading provider of global enterprise cloud communications and collaboration solutions, since March 2015, and Quotient Technology, a digital promotions and media company, since October 2017. She previously served on the board of directors of Insperity, Inc., a professional employer organization, from April 2015 to August 2017. Ms. McKenna-Doyle holds

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a B.S. in Accounting from Auburn University and an MBA from the Crummer Graduate School of Business at Rollins College. She was formerly licensed as a Certified Public Accountant in the State of Georgia. Ms. McKenna-Doyle brings global technology management and senior leadership experience to our Board.
Wesley Nichols has served as a director since October 2017. Since January 2017, he has served as a Board Partner at Upfront Ventures, a venture capital firm. Mr. Nichols was the Senior Vice President, Strategy of Neustar, Inc., a global provider of real-time information services and analytics from December 2015 until February 2017. Mr. Nichols co-founded MarketShare, LLC, a provider of advanced analytic solutions and software, in 2005 and served as its Chief Executive Officer from January 2005 until its acquisition by Neustar in December 2015. Mr. Nichols has served on the board of directors of BJ’s Restaurants, Inc. since December 2013, and the board of directors of TrueCar, Inc., an automotive pricing and information website, since November 2016. He holds a B.A. from Randolph-Macon College and an M.A. from Johns Hopkins University. Mr. Nichols brings extensive experience in the technology and analytics industries to our Board.
Paul Reilly has served as a director since October 2017. Mr. Reilly served as an Executive Vice President of Arrow Electronics, Inc. through his retirement in January 2017, and previously had served as its Executive Vice President, Finance and Operations, and Chief Financial Officer from 2001 through May 2016, and Head of Global Operations from 2009 through May 2016. He has served as a director of Cabot Microelectronics Corporation, a chemical mechanical planarization company, since March 2017, and Assurant, Inc., an insurance company, since June 2011. He has a B.S. in Accounting from St. John’s University and is a Certified Public Accountant. Mr. Reilly brings financial expertise and operational experience to our Board.
Brent D. Rosenthal has served as a director since January 2016.  Mr. Rosenthal is the Founder of Mountain Hawk Capital Partners, LLC., an investment fund focused on small and microcap equities in the technology, media, telecom (TMT) and food industries.  Mr. Rosenthal has been the Non-Executive Chairman of the board of directors of RiceBran Technologies, a food company, since July 2016. He has also served on the board of directors of SITO Mobile, Ltd., a mobile location-based media platform, since August 2016, and as Non-Executive Chairman of its board of directors since June 2017.  Previously, Mr. Rosenthal was a Partner in affiliates of W.R. Huff Asset Management where he worked from 2002 to 2016.  Mr. Rosenthal served as the Non-Executive Chairman of Rentrak Corporation from 2011 to 2016. He was Special Advisor to the board of directors of Park City Group from November 2015 to February 2018. Mr. Rosenthal earned his B.S. from Lehigh University and MBA from the S.C. Johnson Graduate School of Management at Cornell University.  He is an inactive Certified Public Accountant. Mr. Rosenthal brings to our Board financial expertise and experience in the media industry.
Bryan Wiener has served as a director since October 2017. He currently serves as Executive Chairman of 360i, a digital marketing agency, and previously served as CEO from 2005 to 2013. Prior to that, Mr. Wiener was Co-CEO of Innovation Interactive, the privately held parent company of 360i and digital media SaaS provider IgnitionOne, from 2004 until it was acquired by Dentsu in 2010. Mr. Wiener’s experience in the digital media and marketing industry allows him to bring valuable perspective and operational experience to our Board.
Agreement with Starboard Value LP
Messrs. Nichols, Reilly and Wiener and Ms. McKenna-Doyle were each appointed to our Board in 2017 pursuant to an agreement we entered into on September 28, 2017 with Starboard Value LP and certain of its affiliates (collectively, “Starboard”). Pursuant to the agreement with Starboard and as previously disclosed, Messrs. Nichols, Reilly and Wiener and Ms. McKenna-Doyle will also be nominated for election at our next annual meeting of stockholders.
Involvement in Certain Legal Proceedings
As described above, Ms. Riley previously served as Executive Vice President of Finance and Administration for The Children’s Place, an apparel company, from January 2007 to February 2011, and as Chief Financial Officer of Vestis Retail Group, LLC, a private equity-owned retail holding company, from December 2014 to October 2016. In March 2008, Hoop Holdings LLC, a subsidiary of The Children’s Place, filed for protection under Chapter 11 of Title 11 of the U.S. Bankruptcy Code. In April 2016, Vestis Retail Group, LLC also filed for protection under Chapter 11 of Title 11 of the U.S. Bankruptcy Code.
SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
Section 16(a) of the Securities Exchange Act of 1934 requires that certain of our executive officers and directors, and persons who beneficially own more than 10% of a registered class of our equity securities, file reports of ownership and changes in ownership (Forms 3, 4 and 5) with the SEC. Such executive officers, directors and greater than 10% beneficial owners are required to furnish us with copies of all of these forms that they file. Certain employees of our Company hold a power of attorney to enable such individuals to file ownership and change in ownership forms on behalf of our executive officers and directors.

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Based solely on our review of these reports or written representations from certain reporting persons, we believe that during 2015, 2016 and 2017, all filing requirements applicable to our executive officers, directors, greater than 10% beneficial owners and other persons subject to Section 16(a) of the Securities Exchange Act of 1934 were timely met, except for the following reports:
Date FiledFormName of FilerDescription
February 20, 20154Michael BrownFiling related to two transactions occurring on February 11, 2015.
March 6, 20154Magid AbrahamFiling related to two transactions occurring on February 18, 2015 and two transactions occurring on February 28, 2015.
March 27, 20154Michael BrownFiling related to one transaction occurring on March 23, 2015.
August 20, 20154Melvin Wesley, IIIFiling related to two transactions occurring on August 15, 2015.
February 18, 20164Melvin Wesley, IIIFiling related to two transactions occurring on February 15, 2016.
February 18, 20164Magid AbrahamFiling related to two transactions occurring on February 15, 2016.
February 18, 20164Michael BrownFiling related to two transactions occurring on February 15, 2016.
February 18, 20164Gian FulgoniFiling related to two transactions occurring on February 15, 2016.
February 18, 20164Christiana LinFiling related to two transactions occurring on February 15, 2016.
February 18, 20164Serge MattaFiling related to two transactions occurring on February 15, 2016.
February 18, 20164Cameron MeierhoeferFiling related to two transactions occurring on February 15, 2016.
February 18, 20164William LivekFiling related to one transaction occurring on February 15, 2016.
March 4, 20163/AWilliam EngelFiling related to initial statement of beneficial ownership of securities on January 29, 2016.
March 4, 20163/APatricia GottesmanFiling related to initial statement of beneficial ownership of securities on January 29, 2016.
March 4, 20163/AWilliam LivekFiling related to initial statement of beneficial ownership of securities on January 29, 2016.
March 4, 20163/ABrent RosenthalFiling related to initial statement of beneficial ownership of securities on January 29, 2016.
August 15, 20164David ChemerowFiling related to one transaction occurring on August 5, 2016.
December 13, 20174Gian FulgoniFiling related to one transaction occurring on November 13, 2017.
CODE OF BUSINESS CONDUCT AND ETHICS
We have adopted a Code of Business Conduct and Ethics that applies to all directors and employees of the Company, including our principal executive officer, principal financial officer and principal accounting officer or controller. The full text of our Code of Business Conduct and Ethics is posted under “Corporate Governance” on the Investor Relations section on our website at www.comscore.com. We intend to disclose any amendments to our Code of Business Conduct and Ethics or waivers thereto that apply to our principal executive officer, principal financial officer or principal accounting officer or controller by posting such information on the same website.
There have been no material changes to the procedures by which security holders may recommend nominees to our Board since those procedures were described in our proxy statement for our 2015 annual meeting of stockholders.

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AUDIT COMMITTEE
We have a separately-designated Audit Committee of our Board established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934.
The Audit Committee is currently composed of Susan Riley (Chair), Jacques Kerrest, Michelle McKenna-Doyle and Paul Reilly. Although the Company’s Common Stock is not currently listed on The Nasdaq Stock Market (“Nasdaq”), the Company has endeavored to continue to operate in accordance with Nasdaq rules. To that end, the Board has determined that each of Ms. Riley, Mr. Kerrest, Ms. McKenna-Doyle and Mr. Reilly are independent within the meaning of the requirements of applicable SEC and Nasdaq rules. The Board has also determined that each of Ms. Riley, Mr. Kerrest, Ms. McKenna-Doyle and Mr. Reilly are audit committee financial experts, as currently defined under the SEC rules. Designation or identification of a person as an audit committee financial expert does not impose any duties, obligations or liability that are greater than the duties, obligations or liability imposed on such person as a member of the Audit Committee and the Board in the absence of such designation or identification. We believe that the composition and functioning of our Audit Committee complies with all applicable requirements of Nasdaq and SEC rules and regulations.
The Audit Committee operates under a written charter adopted by our Board, a copy of which is available under “Corporate Governance” on the Investor Relations section of our website at www.comscore.com.



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ITEM  11.EXECUTIVE COMPENSATION
COMPENSATION DISCUSSION AND ANALYSIS
The following Compensation Discussion and Analysis (“CD&A”) provides information regarding our executive compensation philosophy, the elements of our executive compensation program, and the factors that were considered in the compensation actions and decisions for our named executive officers during 2015, 2016 and 2017. This CD&A should be read together with the compensation tables and related disclosures set forth elsewhere in this 10-K.
While this CD&A and the accompanying compensation tables and related disclosures provide information for each of 2015, 2016 and 2017, to a certain extent this CD&A does not contain information regarding the overarching philosophy, policies and practices that ordinarily would influence the design of our executive compensation program and the decisions affecting our named executive officers for 2016 and 2017, given the extraordinary circumstances we faced during those years. We have, in part, disclosed such information in Current Reports on Form 8-K filed with the SEC during the period from February 2016 to the date of this 10-K.
Named Executive Officers
Our named executive officers for the year ended December 31, 2015 were:
Serge Matta, our then Chief Executive Officer;
Melvin Wesley III, our then Chief Financial Officer;
Cameron Meierhoefer, our then Chief Operating Officer;
Christiana Lin, our then Executive Vice President, General Counsel and Chief Privacy Officer; and
Michael Brown, our then Chief Technology Officer.
Our named executive officers for the year ended December 31, 2016 were:
Gian Fulgoni, our then Chief Executive Officer (as of August 5, 2016);
Serge Matta, our former Chief Executive Officer (until August 5, 2016);
David Chemerow, our then Chief Financial Officer (as of August 5, 2016);
Melvin Wesley III, our former Chief Financial Officer (until August 5, 2016);
William Livek, our President and Executive Vice Chairman (as of January 29, 2016);
Cameron Meierhoefer, our then Chief Operating Officer; and
Michael Brown, our then Chief Technology Officer.
Our named executive officers for the year ended December 31, 2017 were:
William Livek, our President and Executive Vice Chairman;
Gian Fulgoni, our former Chief Executive Officer (until November 13, 2017);
Gregory Fink, our Chief Financial Officer (as of October 17, 2017);
David Kay, our former Interim Chief Financial Officer (from September 10, 2017 until October 16, 2017);
David Chemerow, our former Chief Financial Officer (until September 8, 2017);
Carol DiBattiste, our General Counsel & Chief Compliance, Privacy and People Officer (as of January 23, 2017);
Christiana Lin, our former Executive Vice President, General Counsel and Chief Privacy Officer (until January 23, 2017); and
Michael Brown, our former Chief Technology Officer (until July 7, 2017).
Overview
Investigation and Restatement
As discussed elsewhere in this 10-K, in February 2016 the Audit Committee of our Board commenced an internal investigation, with the assistance of outside advisors, into certain of our accounting practices, disclosures and internal control matters. The Audit Committee subsequently concluded that (i) our previously issued, unaudited financial statements for the quarters ended March 31, June 30, and September 30, 2015, (ii) our previously issued, audited financial statements$1.7 million for the years ended December 31, 20142022, 2021, and 2013,2020, respectively.
Of the Company's property and (iii) our preliminary, unaudited financial statementsequipment, net, 98% was located in the United States as of December 31, 2022 and 2021.
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9.Leases
The Company has operating leases for real estate and finance leases for computer equipment and automobiles. These leases have remaining lease terms of one year to five years, some of which include options to extend the leases for up to five years, and some of which include options to terminate the leases within one year. As of December 31, 2022, the weighted average remaining lease term for the quarterCompany's finance leases and year endedoperating leases was 1.6 years and 4.4 years, respectively. As of December 31, 2015, should no longer be relied upon.2022, the weighted average discount rate for the Company's finance leases and operating leases was 9.4% and 11.3%, respectively.
The components of lease cost were as follows:
Years Ended December 31,
(In thousands)202220212020
Finance lease cost
Amortization of right-of-use assets$2,364 $2,188 $1,652 
Interest on lease liabilities338 440 501 
Total finance lease cost$2,702 $2,628 $2,153 
Operating lease cost
Fixed lease cost$11,174 $11,212 $12,057 
Short-term lease cost150 336 824 
Variable lease cost1,369 1,622 1,926 
Sublease income(2,572)(2,530)(2,579)
Total operating lease cost$10,121 $10,640 $12,228 
Lease costs, net of sublease income, are reflected in the Consolidated Statements of Operations and Comprehensive Loss as follows:
Years Ended December 31,
(In thousands)202220212020
Amortization of right-of-use assets
Cost of revenues$1,747 $1,617 $1,212 
Selling and marketing263 243 176 
Research and development216 200 175 
General and administrative138 128 89 
Total amortization of right-of-use assets$2,364 $2,188 $1,652 
Operating lease cost
Cost of revenues$3,030 $3,126 $3,532 
Selling and marketing3,391 3,461 4,009 
Research and development2,382 2,367 2,609 
General and administrative1,318 1,686 2,078 
Total operating lease cost$10,121 $10,640 $12,228 
Maturities of operating and finance lease liabilities as of December 31, 2022 were as follows:
(In thousands)Operating LeasesFinance Leases
2023$11,296 $1,900 
202410,291 1,153 
20259,745 — 
20269,881 — 
20275,709 — 
Thereafter80 — 
Total lease payments47,002 3,053 
Less: imputed interest(9,775)(201)
Total lease liabilities37,227 2,852 
Less: current lease liabilities(7,639)(1,808)
Total non-current lease liabilities$29,588 $1,044 
As of December 31, 2022, the Company subleases six real estate properties. One sublease has a non-cancelable term of less than one year. The remaining five subleases are non-cancelable and have remaining lease terms of one year to five years. None of these subleases contain any
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options to renew or terminate the sublease agreement. Future expected cash receipts from these subleases as of December 31, 2022 were as follows:
(In thousands)Sublease Receipts
2023$1,791 
20241,686 
20251,566 
20261,537 
2027825 
Thereafter— 
Total expected sublease receipts$7,405 
10.Goodwill and Intangible Assets
In 2022, the Company concluded that it was more likely than not that the estimated fair value of its reporting unit was less than its carrying value. In its assessment, the Company considered the decline in the Company's stock price and market capitalization, among other factors. Accordingly, in conjunction with its annual test as of October 1, 2022, the Company performed a quantitative goodwill impairment test as of September 30, 2022, relying in part on the work of an independent valuation firm engaged by the Company to provide inputs as to the fair value of the reporting unit and to assist in the related calculations and analysis.
The fair value of the reporting unit was determined using a discounted cash flow model, supported by a market value approach. The Company's reporting unit failed the goodwill impairment test and as a result, the Company recorded a $46.3 million impairment charge.
The change in the carrying value of goodwill is as follows:
(In thousands)

Balance as of December 31, 2020$418,327 
Goodwill recognized from acquisition19,202 
Translation adjustments(1,818)
Balance as of December 31, 2021$435,711 
Translation adjustments(1,438)
Impairment charge(46,300)
Balance as of December 31, 2022$387,973 
The carrying values of the Audit Committee investigation, we have restated selected financial dataCompany's definite-lived intangible assets are as follows:
As ofAs of
 December 31, 2022December 31, 2021
(In thousands)Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Acquired methodologies and technology$154,388 $(147,887)$6,501 $154,436 $(126,743)$27,693 
Customer relationships46,557 (40,932)5,625 46,680 (35,586)11,094 
Intellectual property14,356 (13,633)723 14,377 (13,219)1,158 
Acquired software9,765 (9,287)478 9,287 (9,287)— 
Panel3,084 (3,084)— 3,134 (3,134)— 
Trade names753 (753)— 753 (753)— 
Other600 (600)— 600 (600)— 
Total intangible assets$229,503 $(216,176)$13,327 $229,267 $(189,322)$39,945 
Amortization expense related to intangible assets was $27.1 million, $25.0 million, and $27.2 million for the years ended December 31, 20142022, 2021, and 2013. We have also restated certain data for2020, respectively.
Of the quarters ended March 31, June 30, and September 30, 2015, and we have adjusted data previously furnished on Form 8-K forCompany's definite-lived intangible assets, net, substantially all were generated by or located in the year endedUnited States as of December 31, 2015. For more information regarding the restatement2022 and adjustment, refer to Item 6, Selected Financial Data.
During the Audit Committee investigation and subsequent restatement and audit process, we were delayed in filing our periodic reports with the SEC. As a result, while our actions and decisions relating to executive compensation during 2015 were undertaken as part of our regular executive compensation review, we did not file a Compensation Discussion and Analysis or any other

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compensation-related information contemplated by Item 402 of Regulation S‑K for those 2015 actions and decisions. Consequently, those actions and decisions are discussed and analyzed as part of this CD&A, together with our actions and decisions for 2016 and 2017.
Further, as a result of our delay in filing periodic reports with the SEC, we temporarily stopped granting equity awards to our directors and employees (including our executive officers) in 2016, and our equity incentive plan expired in March 2017. We also restricted our directors and employees (including our executive officers) from trading in our Common Stock during our delay in filing periodic reports with the SEC. Our inability to grant equity awards and set targets for the financial measures used in our incentive compensation plans directly affected our compensation decisions for executive officers in 2016 and 2017. Our 2016 and 2017 compensation decisions were also impacted by the significant changes in our executive team described below. These changes led to a more individualized, situational approach to executive compensation in 2016 and 2017, with decisions driven more by specific hiring and retention needs than by a holistic evaluation of our executive compensation program and corporate performance for the respective year.
Senior Executive Changes During 2016
In January 2016, we completed our merger with Rentrak, resulting in Rentrak becoming a wholly owned subsidiary of the Company. In connection with the merger, former Rentrak directors William Engel, Patricia Gottesman and Brent Rosenthal were appointed to our Board of Directors and William Livek, the Chief Executive Officer of Rentrak, became our President and Executive Vice Chairman, effective January 29, 2016.
Effective August 5, 2016, our Board of Directors appointed our co-founder, Gian Fulgoni, as our Chief Executive Officer and David Chemerow as our Chief Financial Officer. On the same date, Serge Matta transitioned from Chief Executive Officer to Executive Vice Chairman and Advisor to the Chief Executive Officer, and Melvin Wesley transitioned from Chief Financial Officer to Executive Vice President. Mr. Matta and Mr. Wesley subsequently resigned from the Company effective October 10, 2016.
Senior Executive Changes During 2017
Effective January 23, 2017, our Board of Directors appointed Carol DiBattiste as our General Counsel and Chief Privacy and People Officer (later expanded to General Counsel and Chief Compliance, Privacy and People Officer). Christiana Lin resigned as our Executive Vice President, General Counsel and Chief Privacy Officer on the same date. Michael Brown departed as our Chief Technology Officer on July 7, 2017.
On September 8, 2017, Mr. Chemerow resigned as our Chief Financial Officer. Our Board of Directors appointed David Kay of CrossCountry Consulting LLC (“CrossCountry”) (our accounting consultant) to serve as our Interim Chief Financial Officer following Mr. Chemerow’s departure. Mr. Kay served as Interim Chief Financial Officer until the appointment of Gregory Fink as our Chief Financial Officer effective October 17, 2017. Mr. Fink also assumed the role of principal accounting officer on December 5, 2017.
On October 25, 2017, we announced that Dr. Fulgoni would retire as our Chief Executive Officer on January 31, 2018. Dr. Fulgoni later accelerated his retirement date to November 13, 2017. Since Dr. Fulgoni’s retirement, Mr. Livek has acted as principal executive officer of the Company. Effective December 6, 2017, Cameron Meierhoefer stepped down as our Chief Operating Officer.
Compensation Committee Composition During 2015, 2016 and 2017
Throughout 2015, our Compensation Committee was composed of William Henderson, Chairman, and members William Katz and Russell Fradin. In January 2016, Patricia Gottesman joined the Compensation Committee. Ms. Gottesman subsequently resigned as a director and member of the Compensation Committee in November 2016. In October 2016, Mr. Katz also resigned as a director and member of the Compensation Committee.
Mr. Henderson and Mr. Fradin continued to serve as members of the Compensation Committee until their resignation as directors and members of the Compensation Committee on September 10, 2017. The Compensation Committee was reconstituted on October 3, 2017, with Paul Reilly appointed as Chairman and Wesley Nichols, Susan Riley and Brent Rosenthal appointed as members. The Compensation Committee is currently composed of Mr. Reilly, Mr. Nichols, Ms. Riley and Mr. Rosenthal.
Our Executive Compensation Philosophy2021.
The objectiveweighted-average remaining amortization period by major asset class as of our compensation programs for our employees, including our executive officers,December 31, 2022 is to attract and retain top talent and to ensure that the total compensation paid is fair and reasonable relative to the competitive nature of our industry. Our compensation programs are designed to motivate and reward employees for achievement of positive business results and to promote and enforce accountability.
Prior to the Audit Committee investigation in 2016, our Compensation Committee was guided by the following goals and principles in establishing compensation arrangements for our executive officers:

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Further Align Stockholder Interests and Promote Achievement of Strategic Objectives. To further align our executive officers’ interests with those of our stockholders, the Compensation Committee believed that compensation arrangements should be tied to Company performance and growth in the value of our Common Stock.
Promote Achievement of Financial Goals. The Compensation Committee believed that executive compensation should be dependent on the achievement of our financial goals. Historically the Compensation Committee sought to establish target levels for our performance-based incentive compensation opportunities that were aligned with the financial targets we disclosed to stockholders.
Reward Superior Performance. The Compensation Committee believed that total compensation for an executive officer should be both competitive and tied to pre-established financial goals and strategic objectives, and performance exceeding target levels should be appropriately rewarded.
Attract and Retain Top Talent. The Compensation Committee believed that compensation arrangements should be sufficient to allow us to attract, retain and motivate executive officers with the skills and talent needed to manage our business successfully. To this end, the Compensation Committee took into consideration factors such as market analyses, experience, alternative market opportunities, and consistency with the compensation paid to others within our organization.
While the Compensation Committee continued to be guided by these principles when addressing executive compensation matters during the Audit Committee investigation and subsequent restatement and audit process, the unique and challenging circumstances we encountered in 2016 and 2017 also influenced the design of compensation arrangements for our executive officers as we sought to maintain normal business operations during a period of significant uncertainty.
Following the Audit Committee investigation, our Board of Directors and the Compensation Committee determined that ensuring our executive officers prioritize and maintain a “tone at the top” that emphasizes a strong, ethical corporate culture - as well as rigorous compliance and internal controls - is an additional principle that should guide our executive compensation actions and decisions. The Compensation Committee included these objectives in its evaluation of our executive compensation program for 2017.
Compensation-Setting Process
Guided by our compensation philosophy, our Compensation Committee has generally sought to:
compensate our executive officers at levels at or near the median of the competitive market (as represented by our compensation peer group for the relevant period), with individual exceptions on a case-by-case basis;
appropriately link executive officers’ compensation to our performance and the value we deliver to our stockholders; and
ensure that executive officers’ compensation is equitable relative to the compensation paid to other professionals within the Company.
Overall, we seek to maintain a performance-oriented culture with compensation opportunities that reward our executive officers when we achieve or exceed our goals and objectives, while putting a significant portion of their target total direct compensation opportunities at risk in the event that our goals and objectives are not achieved.
Compensation-Setting Process in 2015
In 2015, the Compensation Committee used both quantitative and qualitative performance measures to motivate our executive officers to achieve our financial goals and strategic objectives. These performance measures included quantitative metrics such as specific financial measures with pre-established target levels, as well as more qualitative metrics such as developing a high-performance culture, providing leadership to the organization, demonstrating forward-thinking, and managing organizational resources. Actions and decisions regarding executive compensation for 2015 were made in the ordinary course, prior to the commencement of the Audit Committee investigation in February 2016.
Compensation-Setting Process in 2016 and 2017
The Compensation Committee’s 2016 and 2017 executive compensation actions and decisions were dramatically impacted by our inability to grant equity awards and set targets for the financial measures used in our incentive compensation plans during the Audit Committee investigation and subsequent restatement and audit process, as well as the significant changes in our executive team as described above. As a result, 2016 and 2017 compensation decisions were made largely on an individualized, case-by-case basis, taking into consideration the situation that confronted the Company at the time that we needed to appoint a new executive officer, address the circumstances relating to a departing executive officer, or respond to the incentive and retention challenges that were presented for continuing executive officers.

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Role of Compensation Committee
The members of our Compensation Committee are appointed by our Board of Directors to oversee our executive compensation program. At all times during 2015, 2016 and 2017, the Compensation Committee was composed entirely of directors who were “outside directors” for purposes of Section 162(m) of the Internal Revenue Code, “non-employee directors” for purposes of Exchange Act Rule 16b-3, and “independent directors” under the listing standards of the Nasdaq Stock Market.
Pursuant to its charter, the Compensation Committee approves, oversees and interprets our executive compensation program and related policies and practices, including our equity program and other compensation and benefits programs. The Compensation Committee is also responsible for establishing the compensation packages of our executive officers and ensuring that our executive compensation program is consistent with our compensation philosophy and corporate governance guidelines.
Generally, each year the Compensation Committee takes the following actions in the discharge of its responsibilities:
reviews the corporate goals and objectives of, and performance of and total compensation earned by or awarded to, our principal executive officer, independent of input from our principal executive officer;
examines the performance of our other executive officers with assistance from our principal executive officer and approves total compensation packages for them that it believes to be appropriate and consistent with those generally found in the marketplace for executives in comparable positions;
regularly holds executive sessions without management present; and
engages a compensation consultant to review our executive compensation policies and practices, provide analysis of the competitive market for executive compensation, and make recommendations regarding the elements of our executive officer compensation packages.
As part of its decision-making process, the Compensation Committee evaluates comparative compensation data, including base salary, short-term and long-term incentive compensation (including equity awards) and other compensation components from similarly situated companies. Historically, the Compensation Committee has determined the target total direct compensation opportunities for each executive officer after considering the following key factors:
(i)how much we would be willing to pay to retain the executive officer;
(ii)how much we would expect to pay in the marketplace to replace the executive officer;
(iii)how much the executive officer could otherwise command in the employment marketplace;
(iv)past performance, as well as the strategic value of the executive officer’s future contributions; and
(v)internal parity.
In 2015, 2016 and 2017, the Compensation Committee also considered the recommendations of our then Chief Executive Officer, who periodically reviewed competitive market data, individual performance, and changes in roles or responsibilities of our other executive officers and proposed adjustments to their executive compensation packages based on this review. (The Chief Executive Officer did not and does not participate in discussions or make recommendations with respect to his or her own compensation.) By evaluating the comparative compensation data in light of the foregoing factors, the Compensation Committee sought to tailor its compensation decisions to the specific needs and responsibilities of the particular position, and the unique qualifications of the individual executive officer.
For 2015, generally, the Compensation Committee referenced the 50th percentile of the competitive market as contained in the executive compensation analysis prepared by its compensation consultant (as described below) when evaluating the individual compensation elements for our executive officers, as it believed this positioning would reflect the then-current market conditions and be consistent with industry practices in the technology sector. In deciding to reference this market position, the Compensation Committee also considered such factors as our stage of development, our size and characteristics (based on both headcount and operations and balance sheet characteristics), and the expected future characteristics of our business relative to our compensation peer group. In addition to the factors described above, the Compensation Committee also considered each executive officer’s seniority, position and functional role, level of responsibility, and accomplishments against personal and group objectives. Finally, the Compensation Committee considered the market for corresponding positions within comparable geographic areas and industries as well as the state of our business and our cash flows.
Due to the commencement of the Audit Committee investigation in February 2016, the continuation of the restatement and audit process through 2017, and significant executive team changes in 2016 and 2017, the Compensation Committee did not undertake its regular annual review of our executive compensation program and each individual executive officer’s compensation during the first quarter of 2016 or 2017. Instead, compensation actions and decisions for our named executive officers for 2016 and 2017 were taken as described below.
Role of Compensation Consultant
The Compensation Committee is authorized to retain the services of one or more executive compensation advisors from time to time, as it determines in its discretion, in connection with the discharge of its responsibilities. During 2015, 2016 and 2017, the Compensation Committee retained the services of Compensia, Inc., a national compensation consulting firm (“Compensia”), for this purpose. Compensia served at the discretion of and reported directly to the Compensation Committee. Compensia did not

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provide any services to us or our management in 2015, 2016 or 2017 other than those provided to the Compensation Committee and Board of Directors as described below.
In 2015, Compensia assisted the Compensation Committee by providing the following services:
reviewing our compensation peer group;
analyzing the compensation of our executive officers;
reviewing and analyzing market data related to our executive officers’ base salaries, short-term incentives, and long-term incentive compensation levels;
evaluating equity plan design and structures; and
reviewing our Compensation Discussion and Analysis.
In 2016, Compensia assisted the Compensation Committee and Board of Directors by providing the following services:
reviewing the compensation of our then Board Chair, Board of Directors and Lead Independent Director;
reviewing the compensation of our executive officers;
reviewing and analyzing severance and post-employment compensation arrangements for our executive officers;
preparing an analysis of certain equity awards and other compensation practices for our then Chief Executive Officer;
conducting a study of compensation recovery policies among the companies in our compensation peer group; and
reviewing and analyzing compensation practices in connection with the appointment of a new Chief Executive Officer.
In 2017, Compensia assisted the Compensation Committee by providing the following services:
reviewing our compensation peer group;
reviewing and analyzing market data related to the base salaries, short-term incentives, and long-term incentive compensation levels of our then Chief Executive Officer and other executive officers;
reviewing and analyzing severance and post-employment compensation arrangements for certain executive officers;
evaluating equity plan design, metrics and pending equity award value and share usage; and
reviewing our Compensation Discussion and Analysis.
Compensia ceased providing services to the Compensation Committee in September 2017, after which time the Compensation Committee retained Meridian Capital Partners, LLC (“Meridian”) to assist in the discharge of its responsibilities. Meridian serves at the discretion of and reports directly to the Compensation Committee. Meridian did not provide any services to us or our management in 2017 other than those provided to the Compensation Committee and Board of Directors as described below.
In 2017, Meridian assisted the Compensation Committee and Board of Directors by providing the following services:
reviewing key considerations for the Compensation Committee in overseeing our executive compensation program;
analyzing market data related to the base salaries, short-term incentives, and long-term incentive compensation levels of our executive officers;
reviewing the compensation of our new Board Chair and the Board of Directors, as well as the compensation paid to directors for Board committee service; and
evaluating equity plan design and metrics for future years.
The prior Compensation Committee (serving until September 2017) considered all relevant factors relating to the independence of Compensia, including but not limited to applicable SEC rules and Nasdaq listing standards on compensation consultant independence, and concluded that the work performed by Compensia did not raise any conflict of interest in 2015, 2016 or 2017. The current Compensation Committee (as reconstituted in October 2017) has considered all relevant factors relating to the independence of Meridian, including but not limited to applicable SEC rules and Nasdaq listing standards on compensation consultant independence, and has concluded that the work performed by Meridian did not raise any conflict of interest in 2017.
Competitive Market Data
In October 2014, consistent with our compensation philosophy, the Compensation Committee requested that Compensia review our compensation peer group and recommend any appropriate updates. Compensia recommended an update to the peer group based on management input as to companies with whom we competed for executive talent. At the time of the update, all of the companies in the compensation peer group were providers of digital marketing intelligence or related analytical products and services, marketing services and solutions or survey services. After discussions with the Compensation Committee and management, as well as its own analysis, Compensia recommended and the Compensation Committee used the following compensation peer group throughout 2015. At the time the Compensation Committee evaluated the 2015 peer group, our revenue approximated the 40th percentile and our market capitalization approximated the 75th percentile of the peer group.

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follows:
BazaarvoiceLivePerson
BroadSoftLogMeIn
Constant ContactMicroStrategy
ConversantMillenial Media
Dealertrack TechnologiesNeustar
DHI GroupSynchronoss Technologies
Digital RiverWeb.com Group
Liquidity ServicesWebMD Health
Using data collected from these companies, as well as data from Radford executive compensation surveys for similarly-sized companies (with revenues ranging from half to twice our revenues), Compensia prepared a report for the Compensation Committee in February 2015 that analyzed the target total direct compensation levels of our executive officers against the competitive market.
In November 2015, the Compensation Committee again requested that Compensia review our compensation peer group and recommend any appropriate updates resulting from changes to our financial characteristics and those of our peer companies, as well as to take into consideration the possible completion of our merger with Rentrak in early 2016. After discussions with the Compensation Committee and management, as well as its own analysis, Compensia recommended and the Compensation Committee approved the following compensation peer groups for use in evaluating executive officer compensation in 2016. At the time the Compensation Committee evaluated the 2016 peer group (prior to closing the Rentrak merger), our revenue approximated the median and our market capitalization approximated the 70th percentile of the pre-merger peer group.

Pre-Merger Peer Group
BroadSoftMarketo
Constant ContactMicroStrategy
Cornerstone OnDemandNeustar
CoStar GroupProofpoint
DemandwareSynchronoss Technologies
ImpervaWeb.com Group
LogMeInWebMD Health

Post-Merger Peer Group
CoStar GroupNetSuite
FactSet Research SystemsNeustar
Fair IsaacSynchronoss Technologies
FortinetUltimate Software Group
j2 GlobalWeb.com Group
LogMeInWebMD Health
MicroStrategy
The Compensation Committee also used data from the above companies, together with data regarding recently hired chief executives from similarly-sized public technology companies, to evaluate the compensation of the Company’s then Chief Executive Officer in late 2016 and early 2017.
In February 2017, the Compensation Committee once again requested that Compensia review our compensation peer group and recommend any appropriate updates, including the replacement of peers that had been acquired or were no longer appropriate from a size or business focus perspective. After discussions with the Compensation Committee and management, as well as its own analysis, Compensia recommended and the Compensation Committee selected the following compensation peer group for use in 2017. At the time the Compensation Committee evaluated the 2017 peer group, our revenue approximated the median and our market capitalization approximated the 40th percentile of the peer group.

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2UNew Relic
BroadSoftProgress Software
Cornerstone OnDemandProofpoint
CoStar GroupSynchronoss Technologies
Fair IsaacTiVo
ImpervaUltimate Software Group
j2 GlobalWeb.com Group
LogMeInWebMD Health
MicroStrategy
Using data collected from these companies, as well as data from Radford executive compensation surveys for similarly-sized companies (with revenues ranging from half to twice our revenues), Compensia, and later Meridian, prepared reports for the Compensation Committee in 2017 that analyzed the compensation levels of certain executive officers against the competitive market.
Stockholder Advisory Vote on Executive Compensation
We conducted a non-binding stockholder advisory vote on the compensation of our named executive officers (known as a “say-on-pay” vote) for the year ended December 31, 2014 at our 2015 Annual Meeting of Stockholders. While our stockholders expressed support for the 2014 compensation of our named executive officers, with approximately 67 percent of the votes cast for approval of this proposal, this result was lower than the support for our named executive compensation for the prior year.
Because of the Audit Committee investigation and subsequent restatement and audit process, we did not conduct a say-on-pay vote in 2016 or 2017, nor did the Compensation Committee conduct a comprehensive review of our executive officer compensation for those years in the context of the say-on-pay vote results from 2015. In evaluating executive compensation for future years, the Compensation Committee intends to consider the results of upcoming say-on-pay votes and other feedback from our stockholders, as well as critiques from stockholder advisory firms.
Executive Compensation Elements
Our executive compensation program has historically consisted of three primary elements: base salary, annual incentive compensation opportunities and long-term incentive compensation opportunities. We also offer health and welfare benefits and certain separation-related benefits. Although we have not had a formal policy for allocating executive compensation among the primary compensation elements, the Compensation Committee has sought to provide compensation opportunities that were consistent with our compensation philosophy of further aligning executive and stockholder interests, promoting achievement of our financial goals and strategic objectives, rewarding superior performance, and attracting and retaining top talent.
To this end, base salary decisions in 2015, 2016 and 2017 were guided primarily by our objective of attracting and retaining top executive talent. As in prior years, we used base salary to recognize the experience, skills, knowledge and responsibilities required of each executive officer, as well as to reflect competitive market practice. In contrast to base salary, our other direct compensation elements (both annual and long-term incentives) were historically distributed in the form of equity awards. The Compensation Committee believed that by using equity to compensate our executive officers for completing the objectives in our annual operating plan, and then by positioning them to share in the long-term results of their efforts, we could further align their interests with our stockholders and promote achievement of our strategic and financial goals. The Compensation Committee is evaluating the appropriate vehicles and metrics for incentive compensation in 2018 and future years.
As discussed above, we temporarily stopped granting equity awards to our directors and employees, including our executive officers, in 2016. This decision was due to our delay in filing periodic reports with the SEC and was not the result of a change in our compensation philosophy at that time. Subsequently, our equity incentive plan expired in March 2017, and we have not made any equity awards to directors or employees, including our executive officers, since expiration. The Compensation Committee intends to resume using equity to compensate our directors and employees, including our executive officers, after we regain compliance with our SEC reporting obligations and have a new equity plan in place. This may include consideration of compensation opportunities lost during the period that we were unable to grant equity awards in 2016 and 2017.

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Executive Compensation Actions and Decisions for 2015
Base Salary
In February 2015, the Compensation Committee reviewed the base salaries of our executive officers in the context of our overall merit increase structure, and increased the annualized base salaries of the named executive officers as follows:
Name 2014Percentage Increase 2015
Serge Matta$475,0004.5%$496,376
Melvin Wesley III 320,0004.5% 334,400
Cameron Meierhoefer 353,0004.5% 368,885
Christiana Lin 333,0004.5% 347,985
Michael Brown 305,8000.1% 306,000
Annual Incentive Compensation
In 2015, we provided annual incentive compensation opportunities to our named executive officers payable (to the extent earned) entirely in shares of our Common Stock. Pursuant to these award opportunities, the named executive officers could earn shares of our Common Stock based on corporate and individual performance, subject to continued employment through the award date.
Target Annual Incentive Award Opportunities. In February 2015, the Compensation Committee established target annual incentive award opportunities for each of our named executive officers. These target annual incentive award opportunities were determined by the Compensation Committee after consideration of the executive compensation analysis prepared by Compensia, the recommendations of Mr. Matta (our then Chief Executive Officer) except with respect to his own award, and the other factors described above. The target annual incentive award opportunities of our named executive officers for 2015 were as follows:
NameTarget Annual Incentive Award OpportunityMaximum Annual Incentive Award Opportunity
Serge Matta$700,000 $1,400,000
Melvin Wesley III250,800 501,600
Cameron Meierhoefer276,664 553,328
Christiana Lin260,989 521,978
Michael Brown229,500 459,000
As reflected in the table above, each named executive officer was eligible to receive an award with a value from zero to 200% of his or her target annual incentive award opportunity, contingent on our actual performance for the year and, with the exception of Mr. Matta, achievement of individual performance objectives.
Weighting of Target Annual Incentive Award Opportunities. The target annual incentive award opportunity for Mr. Matta was based entirely on our annual corporate performance objectives (as described below), each of which was equally weighted. The target annual incentive award opportunities for our other named executive officers were weighted as follows:
Name
Corporate
Revenue
Corporate
Adjusted EBITDA
Individual
Performance
Melvin Wesley III50%25%25%
Cameron Meierhoefer50%25%25%
Christiana Lin25%25%50%
Michael Brown50%25%25%
Annual Incentive Corporate Performance Objectives. In February 2015, the Compensation Committee selected revenue and adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) as the corporate performance measures for our 2015 annual incentive awards. The Compensation Committee believed these performance measures were appropriate for our business because they provided a balance between generating revenue, managing our expenses, and growing our business - factors that the Compensation Committee believed would most directly influence long-term stockholder value and

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were key drivers in our 2015 operating plan. For purposes of the annual incentive awards, Adjusted EBITDA was calculated as net income or loss plus income taxes, amortization of intangible assets, stock-based compensation, costs related to acquisitions, restructuring and other infrequently occurring items, depreciation, and interest and other expense (income).
The threshold, target, overachievement and maximum performance levels for each of these corporate performance measures were as follows:
Performance Measure
Threshold
Performance
(50%)
Target
Performance
(100%)
Overachievement
Performance
(150%)
Maximum
Performance
(200%)
(In years)
RevenueAcquired methodologies and technology$360.0 million$372.4 million$378.9 million$387.1 million3.0
Adjusted EBITDAAcquired software$80.0 million2.0
Customer relationships$88.5 million3.8
Intellectual property$93.2 million$101.8 million
The Compensation Committee established the performance levels for each of these measures at levels that it believed to be challenging, but attainable, through the successful execution of our annual operating plan. In addition, each of these performance levels was assigned a payment amount commensurate with the reward that the Compensation Committee, in its judgment, believed was reasonable and appropriate for those results. The Compensation Committee determined that no payment would be made with respect to a performance measure if our actual achievement was less than the threshold level established for that measure. For actual achievement between performance levels, payments were to be calculated for each measure on a linear basis.
Annual Incentive Individual Performance Objectives. In addition to corporate performance objectives, the annual incentive awards for our named executive officers other than Mr. Matta were also based on achievement against individual performance objectives. Individual performance objectives for each named executive officer were established at the beginning of the year in discussions with Mr. Matta. These objectives could be quantitative or qualitative goals, depending on organizational priorities, and were focused on key departmental or operational objectives or functions. Most of these objectives were intended to provide a set of common goals that facilitated collaborative management and engagement, although a named executive officer could also be assigned personal goals. In all cases, the individual performance objectives were intended to be challenging, but attainable, and designed to produce annual incentive awards that reflected meaningful performance requirements.
The individual performance objectives for our named executive officers in 2015 were as follows:
Mr. Wesley: Improve financial operational visibility, build finance and accounting organizational effectiveness and engagement, improve continuity with external service providers, and strengthen investor relations functions and outcomes.
Mr. Meierhoefer: Establish frameworks for consolidating and aligning organization, launch and integration of various products, and technology infrastructure development.
Ms. Lin: Develop and train teams in successful closure of strategic commercial and corporate deals, implement process, system, and operational improvements within the legal and human resources teams, and develop and shape programs supporting a culture of management and leadership within the human resources team.
Mr. Brown: Organizational development, launch and integration of various products, and infrastructure development.
Annual Incentive Performance Results and Payments. In February 2016, the Compensation Committee reviewed our preliminary financial results for 2015 and determined that the corporate performance objectives had been achieved as follows:
1.7
Performance
Measure
Target
Performance
Preliminary
Performance (1)
Attainment Level
(Interpolated)
Revenue$372.4 million$368.8 million85%
Adjusted EBITDA$88.5 million$95.0 million160%

(1)As discussed above, the Company has restated certain financial data for the quarters ended March 31, June 30 and September 30, 2015 and has determined that the preliminary financial statements furnished for the quarter and year ended December 31, 2015 should no longer be relied upon. The Compensation Committee’s determinations regarding 2015 performance, and the issuance of related incentive awards, were made prior to the Audit Committee investigation and subsequent adjustment of our 2015 results.
Following its review of our preliminary financial performance, the Compensation Committee considered the individual performance of each named executive officer. Mr. Matta reviewed each named executive officer’s performance and submitted his recommendations to the Compensation Committee regarding the appropriate level of achievement of individual performance

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objectives. Upon review of these recommendations, the Compensation Committee determined that the individual performance objectives of each named executive officer had been attained at the following levels:
Name
Individual Performance
Attainment Level
Melvin Wesley III100%
Cameron Meierhoefer80%
Christiana Lin100%
Michael Brown90%
Based on the above results, the Compensation Committee approved the following annual incentive awards for our named executive officers for 2015, which awards were issued in the form of fully vested shares of our Common Stock in February 2016:
Name Target Annual Incentive Award ($)  
Actual Annual
Incentive Award (S)
  
Actual Annual
Incentive Award
(Shares) (1)
 
Actual Annual
Incentive Award
vs. Target
(%)
Serge Matta$700,000
 $859,804
  24,152 123%
Melvin Wesley III 250,800
  270,326
  7,594 108%
Cameron Meierhoefer 276,664
  284,371
  7,988 103%
Christiana Lin 260,989
  290,780
  8,168 111%
Michael Brown 229,500
  241,630
  6,788 105%
(1)
The number of shares of our Common Stock was determined by dividing the dollar value of the award by the closing market price of our Common Stock as reported on the Nasdaq Global Select Market on February 12, 2016, which was$35.60 per share.
Long-Term Incentive Compensation
Long-term incentive (“LTI”) compensation opportunities for our named executive officers for 2015 were divided into two components, performance-based LTI and time-based LTI, in order to balance performance and retention considerations. Target LTI award opportunities for our named executive officers for 2015 were
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The estimated future amortization of intangible assets is as follows:
 (In thousands)
2023$5,213 
20243,057 
20252,529 
20262,528 
Thereafter— 
Total$13,327 
11.Accrued Expenses
Name
Performance-Based
LTI Opportunity
Time-Based
LTI Opportunity
 
Total
LTI Opportunity
Serge Matta$700,000 $700,000 $1,400,000
Melvin Wesley III450,000 300,000  750,000
Cameron Meierhoefer450,000 300,000  750,000
Christiana Lin450,000 300,000  750,000
Michael Brown300,000 300,000  600,000
As of December 31,
 (In thousands)20222021
Accrued data costs$18,515 $18,116 
Payroll and payroll-related15,118 16,272 
Professional fees2,410 2,978 
Restructuring accrual1,288 — 
Other6,062 7,898 
Total accrued expenses$43,393 $45,264 
Performance-Based Long-Term Incentive Awards.
12.Commitments and Contingencies
Commitments
The Company has certain long-term contractual arrangements that have fixed and determinable payment obligations including unconditional purchase obligations with MVPDs and other providers for set-top box and connected (Smart) television data. These agreements have remaining terms from one to eight years. As of December 31, 2022, the total fixed payment obligations related to set-top box and connected television data agreements are $299.7 million and $8.3 million, respectively. The information set forth below summarizes the contractual obligations, by year, as of December 31, 2022:
 (In thousands)
2023$36,111 
202429,966 
202529,756 
202637,006 
202737,506 
Thereafter137,699 
Total$308,044 
In February 2015,addition, the Compensation Committee provided LTI compensation opportunitiesCompany expects to our named executive officers payable (to the extent earned) entirely in shares of our Common Stock. As discussed below, the number of shares earned wasmake variable payments related to be determined based entirely on corporate performance. The target performance-based LTI award opportunities for our named executive officers for 2015 were as follows:

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Name
Target LTI
Award Opportunity
Maximum LTI
Award Opportunity
Serge Matta$700,000 $1,400,000
Melvin Wesley III450,000 900,000
Cameron Meierhoefer450,000 900,000
Christiana Lin450,000 900,000
Michael Brown300,000 600,000
Shares earned pursuant to these award opportunities were to be issued in 2016 upon certification of our performance results for 2015. Earned shares were to vest as follows, subject to continued service through each vesting date:
One-third of the shares would vest in 2016, on the date of determinationa set-top box data agreement totaling an estimated $8.8 million by the Compensation Committeeend of our performance results2023.
Contingencies
The Company is involved in various legal proceedings from time to time. The Company establishes reserves for 2015;
One-third of the shares would vest in 2017, on the first anniversary of the determination date; and
One-third of the shares would vest in 2018, on the second anniversary of the determination date.
In February 2015, the Compensation Committee selected revenue and Adjusted EBITDA as the corporate performance measures for the performance-based LTI awards. The Compensation Committee believed these performance measures were appropriate for our business because they provided a balance between generating revenue, managing our expenses, and growing our business. Adjusted EBITDA was calculated for purposes of the performance-based LTI awards in the same manner as for our annual incentive awards (as described above), and the Compensation Committee used the same threshold, target, overachievement and maximum performance levels. The Compensation Committee weighted the performance measures equally, with 50% of the shares subject to the awards to be earned based on revenue achievement and 50% of the shares to be earned based on Adjusted EBITDA achievement, subject to the vesting requirements described above.
As discussed under “Annual Incentive Performance Results and Payments” above, in February 2016 the Compensation Committee determinedspecific legal proceedings when management determines that the corporate performance objectives were achieved at the 85% attainment level for revenue,likelihood of an unfavorable outcome is probable, and at the 160% attainment level for Adjusted EBITDA. Based on these results, the Compensation Committee approved the following performance-based LTI awards for our named executive officers, which awards were issued in the form of restricted stock unit (“RSU”) awards with respect to our Common Stock in February 2016:
Name
Target
LTI Award
($)
Actual
LTI Award
($)
 
Actual
LTI Award
(Shares) (1)
Actual
LTI Award
vs. Target
(%)
Serge Matta$700,000 $859,804  24,152 123%
Melvin Wesley III450,000 552,731  15,526 123%
Cameron Meierhoefer450,000 552,731  15,526 123%
Christiana Lin450,000 552,731  15,526 123%
Michael Brown300,000 368,487  10,351 123%
(1)
The number of shares of our Common Stock was determined by dividing the dollar value of the award by the closing market price of our Common Stock as reported on the Nasdaq Global Select Market on February 12, 2016, which was$35.60 per share.
As described above, one-third of the shares vested on the date of issuance in February 2016, with the remaining shares scheduled to vest in equal annual installments in 2017 and 2018 subject to continued service through each vesting date.
Time-Based Long-Term Incentive Awards. In February 2015, following consultation with Compensia and a review of competitive market data, the Compensation Committee decided to include a time-based equity component in our 2015 LTI program to support our retention objectives. The purpose of these awards was to ensure that each of our named executive officers had a minimum amount of time-based equity to be earned over a multi-year period subject to continued service with us. The Compensation Committee approved the following time-based equity awards for our named executive officers, which were issued in the form of RSU awards with respect to our Common Stock in February 2016 as follows:

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Name 
Time-Based
LTI Award
($)
Time-Based
LTI Award
(Shares) (1)
Serge Matta$700,00019,663
Melvin Wesley III 300,0008,427
Cameron Meierhoefer 300,0008,427
Christiana Lin 300,0008,427
Michael Brown 300,0008,427
(1)
The number of shares of our Common Stock was determined by dividing the dollar value of the award by the closing market price of our Common Stock as reported on the Nasdaq Global Select Market on February 12, 2016, which was$35.60 per share.
One-third of the shares underlying each time-based equity award vested on the date of issuance in February 2016, with the remaining shares scheduled to vest in equal annual installments in 2017 and 2018 subject to continued service through each vesting date.
Executive Compensation Actions and Decisions for 2016
As discussed above, due to the commencement of the Audit Committee investigation in February 2016, the Board of Directors decided to forgo the annual review of our executive compensation program as conducted by the Compensation Committee. Consequently, the Compensation Committee did not perform a programmatic review of our executive compensation program, or each individual compensation element, during the first quarter of the year as had been its practice in prior years. As a result, except as described below, the Compensation Committee did not conduct its annual review of the base salaries of our executive officers, make any routine adjustments to their base salary levels, or establish formal annual or long-term incentive award opportunities for our executive officers during 2016.
Livek Appointment
Upon completion of the merger with Rentrak on January 29, 2016, Mr. Livek, the former Chief Executive Officer of Rentrak, was appointed as our President and Executive Vice Chairman. In connection with his appointment, the Compensation Committee approved the following initial compensation arrangements for Mr. Livek:
An annual base salary in the amount of $435,000;
An RSU awardloss can be reasonably estimated. The Company has also identified certain other legal matters where an unfavorable outcome is reasonably possible and/or for 10,000 shareswhich no estimate of our Common Stock, to vest in three equal annual installments in February 2017, 2018 and 2019,possible losses can be made. In these cases, the Company does not establish a reserve until it can reasonably estimate the loss. Legal fees are expensed as incurred. The outcomes of legal proceedings are inherently unpredictable, subject to continued service through each vesting date;significant uncertainties, and could be material to the Company's operating results and cash flows for a particular period.
Participation in our incentive compensation programs for our executive officers as approvedCurrent Matters
The Company is, and may become, a party to a variety of legal proceedings from time to time bythat arise in the Board of Directors; and
A Change of Control and Severance Agreement with the Company, the material terms and conditions of which are described under “Payments Upon Termination or Change in Control” below.
The Compensation Committee approved these arrangements after consideration of an analysis prepared by its compensation consultant and discussion with Mr. Matta, other membersnormal course of the BoardCompany's business. While the results of Directors, and Company counsel.
Subsequently, Mr. Livek’s annual base salary was increased to $443,700 effective April 1, 2016 in connectionsuch legal proceedings cannot be predicted with a merit adjustment for Rentrak employees.
Extension of Stock Option Post-Termination Exercise Period
In April 2016, after considering the potential impact of our delay in filing periodic reports with the SEC on the exercisability of outstanding stock options held by our employees, our Board of Directors approved an extension of the exercisability of outstanding stock options for all of our employees in the event of a cessation of their employment prior to our regaining compliance with SEC reporting requirements. As a result, any employees who departed from the Company while holding exercisable stock options prior to our regaining compliance with SEC reporting obligations were given an additional 180 days following such compliance to exercise their options, subject to any earlier expiration date in their individual award agreements. Mr. Matta, Mr. Wesley, Ms. Lin, Mr. Brown, and Mr. Chemerow, all of whom departed from the Company while holding exercisable stock options, are eligible to take advantage of this option extension. For each of these extensions, the Company recognized incremental stock-based compensation expense in the year of termination of employment, as reflected in the compensation tables set forth elsewhere in this 10-K.
Chief Executive Officer Transition
Effective August 5, 2016, our Board of Directors appointed Dr. Fulgoni as our Chief Executive Officer. At the same time, Mr. Matta transitioned from Chief Executive Officer to our Executive Vice Chairman and Advisor to the Chief Executive Officer. No changes were made to either individual’s compensation at the time of these changes.

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Subsequently, Mr. Matta resigned from the Company for “good reason” (as defined in his 2014 Change of Control and Severance Agreement) effective October 10, 2016. On November 3, 2016, we entered into a Separation Agreement and General Release with Mr. Matta, pursuant to which he will receive payments equal to his then-current annual base salary for a period of 24 months from his separation date, as well as payment of premiums for eligible continuation healthcare coverage for the same period. These payments and benefits are consistent with the payments and benefits contemplated by Mr. Matta’s 2014 Change of Control and Severance Agreement in the event of a termination of employment for good reason.
Chief Financial Officer Transition
Effective August 5, 2016, our Board of Directors appointed Mr. Chemerow as our Chief Financial Officer. At the same time, Mr. Wesley transitioned from Chief Financial Officer to our Executive Vice President. Mr. Chemerow had previously served as our Chief Revenue Officer since joining us following the Rentrak merger, and he received an RSU award for 10,000 shares of our Common Stock incertainty, management believes that, prior role (with such award to vest in two equal installments in February 2017 and 2018, subject to continued service through each vesting date).
In connection with Mr. Chemerow’s appointment as our Chief Financial Officer, the Compensation Committee approved the following compensation arrangements for him:
An annual base salary in the amount of $345,000;
An RSU award for 35,000 shares of our Common Stock, to vest in four equal annual installments in August 2017, 2018, 2019 and 2020, subject to continued service through each vesting date;
Participation in our incentive compensation programs for our executive officers as approved from time to time by the Board of Directors; and
A Change of Control and Severance Agreement with the Company, which was later superseded by a Separation and General Release Agreement, dated September 8, 2017 (described under “Executive Compensation Actions and Decisions for 2017” below).
The Compensation Committee approved these arrangements after consideration of an analysis prepared by its compensation consultant and discussion with Company counsel.
Subsequently, Mr. Wesley resigned from the Company for “good reason” (as defined in his 2014 Change of Control and Severance Agreement) effective October 10, 2016. On that date, we agreed to issue 3,300 shares of our Common Stock to Mr. Wesley in consideration for the same number of shares subject to a vested RSU award held by him (previously undelivered due to our delay in filing periodic reports with the SEC). On November 4, 2016, we entered into a Separation Agreement and General Release with Mr. Wesley, pursuant to which he received payments equal to his then-current annual base salary for a period of 15 months from his separation date, as well as payment of premiums for eligible continuation healthcare coverage for the same period. These payments and benefits are consistent with the payments and benefits contemplated by Mr. Wesley’s 2014 Change of Control and Severance Agreement in the event of a termination of employment for good reason.
Cash Bonuses
In March 2017, after considering the recommendations of Dr. Fulgoni (our then Chief Executive Officer), as well as input from Compensia, the Compensation Committee approved cash bonus awards for certain named executive officers as set forth below:
Name 
Performance
Component
 
Incentive
Component
 Total
David Chemerow$64,834$100,000$164,834
Cameron Meierhoefer 57,408 100,000 157,408
Michael Brown 45,900 100,000 145,900
The portion of each named executive officer’s bonus labeled “Performance Component” was determined by the Compensation Committee based on an evaluationcurrent knowledge, the final outcome of that individual’s performance during 2016. In the case of Mr. Chemerow, the Compensation Committee considered his contributions in managing our finance/accounting organization during a period of great stress and change for the Company. For Mr. Meierhoefer and Mr. Brown, the Compensation Committee considered their contributions to organizational development, product and capability development, and technology infrastructure during a period of great stress and change for the Company. The portion of each named executive officer’s bonus labeled “Incentive Component” was designed to be consistent with the value of the time-based equity incentive awards granted in previous years (first year vesting) in light of the Compensation Committee’s inability to grant equity and the named executive officers’ inability to trade in our Common Stock during our delay in filing periodic reports with the SEC. The Compensation Committee didany such current pending matters will not award any bonus for achievement of Company financial objectives for 2016.

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Executive Compensation Actions and Decisions for 2017
Due to the ongoing restatement and audit process in 2017, the Compensation Committee did not establish formal annual or long-term incentive award opportunities for our executive officers for 2017. We also continued to experience significant changes to our executive team in 2017. As a result, except as described below, the Compensation Committee did not conduct a programmatic review of our executive compensation program for 2017 and instead based its executive compensation decisions on specific hiring and retention needs.
General Counsel Transition
Effective January 23, 2017, Ms. DiBattiste was appointed as our General Counsel and Chief Privacy and People Officer (later expanded to General Counsel and Chief Compliance, Privacy and People Officer). On the same date, Ms. Lin resigned as our Executive Vice President, General Counsel and Chief Privacy Officer and transitioned to a consulting role with the Company.
Ms. DiBattiste’s appointment included the following initial compensation arrangements:
An annual base salary in the amount of $350,000;
A sign-on bonus in the amount of $200,000, paid in equal installments in April 2017 and July 2017;
An RSU award equal to $1,000,000, to be granted after the Company regains compliance with its SEC reporting obligations and has a valid equity plan in place;
Participation in our incentive compensation programs for our executive officers as approved from time to time by the Board of Directors; and
A Change of Control and Severance Agreement with the Company, the material terms and conditions of which are described under “Payments Upon Termination or Change in Control” below.
In connection with Ms. Lin’s resignation, we entered into a Separation and General Release Agreement with Ms. Lin, pursuant to which she received payments equal to her then-current base salary for a period of 12 months, commencing on February 2, 2017, as well as payment of premiums for eligible continuation healthcare coverage for the same period. These payments and benefits are consistent with the payments and benefits contemplated by Ms. Lin’s Change of Control and Severance Agreement.
We also entered into a Consulting Agreement with Ms. Lin, pursuant to which Ms. Lin agreed to assist the Company during a transition period and to be available for additional assistance and cooperation. Ms. Lin received a consulting fee of $83,333 per month during her consulting term, which began on February 2, 2017 and ended on August 2, 2017.
Chief Executive Officer Compensation
In February 2017, the Compensation Committee and Dr. Fulgoni agreed that Dr. Fulgoni would not receive any additional cash compensation for his service as our Chief Executive Officer in 2016 and 2017. Instead, the Compensation Committee agreed that Dr. Fulgoni would receive a long-term equity incentive award equal to $3,000,000 in time-based RSUs, to be issued after the Company regains compliance with its SEC reporting obligations and has a valid equity plan in place. The Compensation Committee agreed to provide for annual vesting of the award over three years, retroactive to Dr. Fulgoni’s appointment as Chief Executive Officer in August 2016, with accelerated vesting of the RSUs in the event of a change in control of the Company or if Dr. Fulgoni were not reelected as a director at the end of his current term. The Compensation Committee made these decisions after consideration of analyses prepared by, and discussions with, its compensation consultant.
Base Salary Changes
In April 2017, the Compensation Committee reviewed the base salaries of our executive officers (other than Dr. Fulgoni) in the context of competitive market data and the executive officers’ roles and responsibilities within the Company. After consideration of an analysis prepared by its compensation consultant, and the recommendations of Dr. Fulgoni, the Compensation Committee increased the annualized base salaries of certain named executive officers as follows:
Name 
Previous
Salary
Percentage
Increase
  
New
Salary
David Chemerow$345,780 4.0% $359,611
Carol DiBattiste 350,000 10.0%  385,000
Michael Brown 306,000 8.0%  330,480
Chief Technology Officer Transition
In June 2017, we announced a reorganization of our technology and product team pursuant to which Mr. Brown, our Chief Technology Officer, transitioned from his executive officer role effective July 7, 2017 but continued to assist the Company as a consultant for three months to facilitate the reorganization.

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In connection with the reorganization, we entered into a Separation and General Release Agreement with Mr. Brown, pursuant to which he will receive payments equal to his then-current base salary for a period of 12 months from July 7, 2017, as well as payment of premiums for eligible continuation healthcare coverage for the same period. These payments and benefits are consistent with the payments and benefits contemplated by Mr. Brown’s Change of Control and Severance Agreement.
We also entered into a Consulting Agreement with Mr. Brown, pursuant to which Mr. Brown agreed to assist the Company during a transition period from July 10, 2017 until October 13, 2017. Mr. Brown received a consulting fee of $50,000 per month during his consulting term.
Chief Financial Officer Transition
On September 8, 2017, Mr. Chemerow resigned as our Chief Financial Officer. We entered into a Separation and General Release Agreement with Mr. Chemerow, pursuant to which he will receive payments totaling approximately $650,000, payable over a 17-month period, as well as payment of premiums for eligible continuation healthcare coverage for up to 18 months and continued vesting of his outstanding RSU awards through August 2020.
Following Mr. Chemerow’s resignation, our Board of Directors appointed Mr. Kay to serve as our Interim Chief Financial Officer effective September 10, 2017. Mr. Kay received no direct compensation for serving as Interim Chief Financial Officer. Instead, the Company entered into an interim services agreement with CrossCountry, of which Mr. Kay is a managing partner, to pay CrossCountry $60,000 per month during the term of the interim services agreement. Mr. Kay’s term as Interim Chief Financial Officer ended on October 16, 2017, after which he has continued to provide consulting services to the Company on behalf of CrossCountry.
Our Board of Directors appointed Mr. Fink as our Chief Financial Officer effective October 17, 2017. In connection with Mr. Fink’s appointment, the Compensation Committee approved the following compensation arrangements for him:
An annual base salary in the amount of $390,000;
A sign-on bonus in the amount of $800,000 in RSUs, to be granted after the Company regains compliance with its SEC reporting obligations and has a valid equity plan in place;
A prorated bonus for 2017 based on a target of 75% of his base salary for 2017;
Beginning in 2018, participation in our incentive compensation programs for our executive officers as approved from time to time by the Board of Directors; and
A Change of Control and Severance Agreement with the Company, the material terms and conditions of which are described under “Payments Upon Termination or Change in Control” below.
Special Bonus
On September 26, 2017, our Board of Directors approved a special performance and retention bonus for Ms. DiBattiste, our General Counsel and Chief Compliance, Privacy and People Officer, in recognition of her extraordinary efforts in reaching settlement terms in certain of our outstanding litigation. The first $500,000 installment of the special bonus was paid in October 2017, and the second was paid in January 2018. The final installment will be paid in September 2018, subject to Ms. DiBattiste’s continued employment through the payment date.
Chief Executive Officer Retirement
On October 25, 2017, we announced that Dr. Fulgoni would retire as our Chief Executive Officer (“CEO”) on January 31, 2018 and would not stand for reelection to our Board of Directors when his current term ends. Dr. Fulgoni later accelerated his CEO retirement date to November 13, 2017.
In connection with Dr. Fulgoni’s retirement, we entered into a Retirement and Transition Services Agreement pursuant to which Dr. Fulgoni will continue to serve as a member of our Board of Directors until the earlier of a permanent, full-time successor CEO taking office or our next annual meeting of our stockholders. Dr. Fulgoni was also named Chairman Emeritus, and he will serve as Special Advisor to the Chair of the Board and the CEO following the conclusion of his service on the Board of Directors. As Special Advisor, Dr. Fulgoni will provide assistance and cooperation to the Company, our Board of Directors, and our senior management team until November 13, 2018, including in the search for and selection of his successor.
The Board of Directors agreed to provide Dr. Fulgoni with the following compensation and benefits pursuant to the Retirement and Transition Services Agreement:
All accrued salary and accrued and unused paid time off earned through his retirement date;
Payment of premiums for eligible continuation healthcare coverage for up to 18 months from his retirement date;
Vesting in full (on his retirement date) of all outstanding RSU awards previously granted under our equity incentive plan; and

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Issuance of $4,000,000 in fully vested RSUs as compensation for his services as CEO from August 2016 through his retirement date (for which he had not otherwise been separately compensated), subject to the Company’s compliance with SEC reporting requirements.
In approving this arrangement, the Board of Directors considered the previous analyses and deliberations by the Compensation Committee described under “Chief Executive Officer Compensation” above.
Cash Bonuses
In March 2018, the Compensation Committee approved cash bonus awards for certain named executive officers as set forth below:
Name Bonus Amount
William Livek$444,000
Gregory Fink 73,125
Carol DiBattiste 308,000
Each named executive officer’s bonus was determined by the Compensation Committee based on an evaluation of that individual’s performance during 2017. In the case of Mr. Livek, the Compensation Committee considered his leadership and contributions in maintaining normal business operations during a time of great change for the Company, particularly following Dr. Fulgoni's retirement in 2017. For Mr. Fink, the Compensation Committee considered his effectiveness in managing our finance/accounting organization and driving to completion of our multi-year audit process. (Mr. Fink's bonus was prorated for his October 2017 start date.) Finally, for Ms. DiBattiste, the Compensation Committee considered her contributions and leadership in addressing the litigation, compliance and governance matters we faced in 2017.
Other Compensation Elements
Benefits and Perquisites
We provide the following health and welfare benefits to our executive officers on the same basis as our other U.S. employees:
medical and dental insurance;
life insurance;
short-term and long-term disability insurance; and
a 401(k) plan with a company matching feature.
These benefits are consistent with those offered by other companies, including those with whom we compete for executive talent.
In general, we do not provide significant perquisites or other personal benefits to our executive officers, and we do not view perquisites and personal benefits as a material element of our executive compensation program. We occasionally provide benefits, however, for retention purposes or to accommodate specific, and usually temporary, circumstances of executives who do not reside near their work locations.
Change of Control and Severance Agreements
Our executive officers are parties to agreements that provide for certain payments and benefits to them in the event of a termination of their employment or a change in control of the Company. We believe these arrangements are valuable retention tools that are particularly necessary in an industry, such as ours, where there is frequent market consolidation. We recognize that it is possible that we may be subject to a change in control, and that this possibility could result in a sudden departure or distraction of our key executive officers to the detriment of our business. We believe that these arrangements help to encourage and maintain the continued focus and dedication of our executive officers to their assigned duties to maximize stockholder value, notwithstanding the possibility or occurrence of a change in control of the Company. We also believe that these arrangements are competitive with arrangements offered to senior executives at companies with whom we compete for executive talent and are necessary to attract and retain critical members of management. These arrangements do not contain any tax reimbursement or tax “gross up” provisions for our executive officers.
The material terms and conditions of our executive change of control and severance agreements are discussed under “Payments Upon Termination or Change in Control” below.

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Other Compensation Policies
Hedging Prohibition
We have adopted and maintain a formal policy that prohibits hedging and similar transactions to ensure that the members of our leadership team (including our executive officers) and the non-employee members of our Board of Directors bear the full risks of ownership of our Common Stock.
Pledging Prohibition
We have adopted and maintain a formal policy that prohibits the pledging of our equity securities as collateral for loans to ensure that a foreclosure on such securities would not trigger inadvertent insider trading violations.
Compensation Risk Assessment
Our Compensation Committee and management have considered whether our current compensation programs for employees create incentives for excessive or unreasonable risks that could have a material adverse effect on the Company. This has included considerationCompany's financial position, results of operations or cash flows. Regardless of the Audit Committee investigation findings and the internal control weaknesses identified by management as of December 31, 2017, as described in Item 9A of this 10-K, as well as our plans to specify maximum payouts for incentive compensation, use multiple performance metrics and measurement periods, and require Compensation Committee review and validation of results and payouts for 2018 and future years. We believe that our compensation programs, as currently designed, are consistent with practices for our industry and that risks arising from our compensation policies and practices are not reasonably likely tooutcome, legal proceedings can have a materialan adverse effect on the Company because of defense costs, diversion of management resources and other factors.
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Indemnification
The Company has entered into indemnification agreements with each of the Company's directors and certain officers, and the Company's amended and restated certificate of incorporation requires it to indemnify each of its directors and officers, to the fullest extent permitted by Delaware law, who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding by reason of the fact that he or she is or was a director or officer of the Company. In structuringThe Company has paid and may in the future pay legal counsel fees incurred by current and former directors and officers who are involved in legal proceedings that require indemnification.
Similarly, certain of the Company's commercial contracts require it to indemnify contract counterparties under specified circumstances, and the Company may incur legal counsel fees and other costs in connection with these obligations.
13.Income Taxes
The components of loss before income tax provision are as follows:
Years Ended December 31,
(In thousands)202220212020
Domestic$(69,981)$(53,202)$(44,010)
Foreign5,144 4,024 (3,006)
Total$(64,837)$(49,178)$(47,016)
Income tax provision is as follows:
 Years Ended December 31,
(In thousands)202220212020
Current:
Federal$51 $— $— 
State227 405 45 
Foreign1,921 2,173 847 
Total$2,199 $2,578 $892 
Deferred:
Federal$$(1,538)$101 
State16 198 238 
Foreign(499)(379)(329)
Total$(475)$(1,719)$10 
Income tax provision$1,724 $859 $902 
A reconciliation of the statutory U.S. income tax rate to the effective income tax rate is as follows:
 Years Ended December 31,
 202220212020
Statutory federal tax rate21.0 %21.0 %21.0 %
State taxes(0.3)%(1.5)%(0.5)%
Other nondeductible/nontaxable items3.7 %(3.6)%— %
Nondeductible interest and derivatives— %(5.9)%(9.7)%
Foreign rate differences(0.4)%(1.2)%(1.8)%
Change in valuation allowance(10.7)%(16.1)%5.9 %
Stock compensation(2.3)%(3.8)%(5.5)%
Executive compensation(0.1)%(0.7)%(0.1)%
Goodwill impairment(11.8)%— %— %
U.S. tax impact of restructuring— %10.3 %(14.4)%
Other adjustments(1.7)%(0.2)%1.1 %
Uncertain tax positions(0.1)%— %2.1 %
Effective tax rate(2.7)%(1.7)%(1.9)%
Income Tax Provision
The Company recognized income tax expense of $1.7 million during the year ended December 31, 2022, which is primarily comprised of current tax expense of $2.2 million related to foreign taxes and state taxes and a deferred tax benefit of $0.5 million related to temporary differences between the tax treatment and GAAP accounting treatment for certain items. Included in total tax expense is income tax benefit of $2.6 million for permanent differences in the book and tax treatment of nontaxable gain on fair market value adjustment of stock warrants, offset by certain nondeductible stock-based compensation programs and decisions,executive compensation. Also included in the Compensation Committee will continuetotal tax expense is income tax
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adjustment of $12.7 million related to monitor whether our risk management objectivesthe impairment of goodwill. Income tax expense of $18.5 million has also been included for an increase in the valuation allowance recorded against the Company's deferred tax assets to offset the tax benefit of the Company's operating losses in the U.S. and certain foreign jurisdictions. These tax adjustments, along with state and local taxes and book losses in foreign jurisdictions where the income tax rate is substantially lower than the U.S. federal statutory rate, are being metthe primary drivers of the annual effective income tax rate.
The Company recognized income tax expense of $0.9 million during the year ended December 31, 2021, which is primarily comprised of current tax expense of $2.2 million related to foreign taxes and a federal deferred tax benefit of $1.5 million related to temporary differences between the tax treatment and GAAP accounting treatment for certain items. Included in total tax expense are income tax adjustments of $9.2 million for permanent differences in the book and tax treatment of certain stock-based compensation, limitations on the deductibility of certain executive compensation, and nondeductible interest expense on debt instruments and associated derivatives. Also included is a favorable return to provision true-up adjustment of $8.3 million for a prior year permanent difference related to foreign earnings taxable in the U.S. as a result of a tax restructuring that occurred during 2020. Income tax expense of $16.3 million has also been included for an increase in the valuation allowance recorded against the Company's deferred tax assets to offset the tax benefit of the Company's operating losses in the U.S. and certain foreign jurisdictions. This increase was offset by an income tax benefit of $2.8 million related to the release of the portion of the Company's valuation allowance as a result of the Shareablee acquisition. These tax adjustments, along with respectstate and local taxes and book losses in foreign jurisdictions where the income tax rate is substantially lower than the U.S. federal statutory rate, are the primary drivers of the annual effective income tax rate.
The Company recognized income tax expense of $0.9 million during the year ended December 31, 2020, which is primarily comprised of current tax expense of $0.8 million related to incentivizing our employees.foreign taxes. Included in total tax expense are income tax adjustments of $8.9 million for permanent differences in the book and tax treatment of certain stock-based compensation, limitations on the deductibility of certain executive compensation, and nondeductible interest expense on debt instruments and associated derivatives. Also included is an adjustment of $11.2 million for a permanent difference related to foreign earnings taxable in the U.S. as a result of a tax restructuring that occurred during the year. These tax adjustments, along with state and local taxes and book losses in foreign jurisdictions where the income tax rate is substantially lower than the U.S. federal statutory rate, are the primary drivers of the annual effective income tax rate.
Deferred Income Taxes
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax reporting purposes. The components of net deferred income taxes are as follows:
 As of December 31,
 (In thousands)
20222021
Deferred tax assets:
Net operating loss carryforwards$203,738 $210,235 
Lease liability13,500 15,909 
Deferred revenues20,711 20,001 
Deferred compensation4,829 5,672 
Accrued salaries and benefits2,533 3,120 
Tax credits2,187 2,187 
Tax contingencies1,225 1,160 
Allowance for doubtful accounts151 311 
Capital loss carryforwards271 269 
Intangible assets3,640 — 
Capitalized research and development expense14,490 — 
Other2,665 2,307 
Gross deferred tax assets$269,940 $261,171 
Valuation allowance(250,994)(233,843)
Net deferred tax assets$18,946 $27,328 
Deferred tax liabilities:
Lease asset$(7,855)$(9,517)
Property and equipment(3,988)(7,312)
Intangible assets— (4,357)
Subpart F income recapture(1,248)(1,222)
Goodwill(4,660)(4,136)
Other(40)(76)
Total deferred tax liabilities$(17,791)$(26,620)
Net deferred tax asset$1,155 $708 
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Tax Valuation Allowance
As of December 31, 2022, and Accounting Implications
Deductibility2021, the Company had a valuation allowance of Executive Compensation
Generally, Section 162(m)$251.0 million and $233.8 million, respectively, against certain deferred tax assets. The valuation allowance relates to the deferred tax assets of the Internal Revenue Code disallows public companiesCompany's U.S. entities, including federal and state tax attributes and timing differences, as well as the deferred tax assets of certain foreign subsidiaries. The increase in the valuation allowance during 2022 is primarily related to capitalized R&E expenditures under Section 174. The increase in the valuation allowance during 2021 is primarily related to the pre-tax losses generated in the U.S., offset by the valuation allowance release as a result of the Shareablee acquisition mentioned above. To the extent the Company determines that, based on the weight of available evidence, all or a portion of its valuation allowance is no longer necessary, the Company will recognize an income tax deductionbenefit in the period such determination is made for the reversal of the valuation allowance. If management determines that, based on the weight of available evidence, it is more-likely-than-not that all or a portion of the net deferred tax assets will not be realized, the Company may recognize income tax expense in the period such determination is made to increase the valuation allowance. It is possible that such reduction of or addition to the Company's valuation allowance may have a material impact on the Company's results from operations.
A summary of the deferred tax asset valuation allowance is as follows:
 As of December 31,
(In thousands)20222021
Beginning Balance$233,843 $220,115 
Additions from continuing operations17,280 13,462 
Additions from acquisition accounting— 275 
Reductions(129)(9)
Ending Balance$250,994 $233,843 
Net Operating Loss and Credit Carryforwards
As of December 31, 2022, the Company had federal and state net operating loss carryforwards for tax purposes of $584.8 million and $1.4 billion, respectively. These net operating loss carryforwards will begin to expire in 2031 for federal income tax purposes of remuneration in excess of $1 million paid toand 2023 for state income tax purposes. The federal and certain executive officers. Pursuant to tax law changes effective in 2018, these executive officers will include a public company’s chief executive officer, chief financial officer, and each of the three other most highly-compensated executive officers whose compensation is required to be disclosed to stockholders under the Securities Exchange Act of 1934 in any taxable year. In making compensation decisions, the Compensation Committee considers the potential effects of Section 162(m) on the compensation paid to our named executive officers.
Accounting for Stock-Based Compensation
We follow Financial Accounting Standards Board Accounting Standards Codification Topic 718 (“ASC Topic 718”) for our stock-based compensation awards. ASC Topic 718 requires companies to measure the compensation expense for all share-based payment awards made to employees and directors, including stock options and RSU awards, based on the grant date fair value of these awards. ASC Topic 718 also requires companies to recognize the compensation cost of their stock-based compensation awards in their income statements over the period that an award recipient is required to render service in exchange for the award.
As discussed above under “Executive Compensation Actions and Decisions for 2016,” we recognized incremental stock-based compensation expense in 2016 and 2017 in connection with an extension of the exercisability of outstanding stock options during our delay in filing periodic reports with the SEC, consistent with ASC Topic 718.
COMPENSATION COMMITTEE REPORT
The Compensation Committee has reviewed and discussed the Compensation Discussion and Analysis contained in this 10-K with the Company’s management. Based its review of, and discussions with management with respect to, the Compensation Discussion and Analysis, the Compensation Committee recommended to our Board of Directors that the Compensation Discussion and Analysis be included in this 10-K for the fiscal year endedstate net operating losses generated after December 31, 2017 for filing with the Securities and Exchange Commission.
Compensation Committee
Paul Reilly, Chairman
Wesley Nichols
Susan Riley
Brent Rosenthal

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The foregoing Compensation Committee report shall not be deemed incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, and shall not otherwise be deemed filed under these acts, except to the extent we specifically incorporate by reference into such filings.
2015 Summary Compensation Table
The following table sets forth summary information concerning compensation for the following persons: (i) our principal executive officer during 2015, (ii) our principal financial officer during 2015, and (iii) the next three most highly compensated executive officers during 2015, all of whom were serving as executive officers ashave an indefinite carryforward period. As of December 31, 2015. We refer2022, the Company had an aggregate net operating loss carryforward for tax purposes related to these persons as our “named executive officers” for 2015 elsewhereits foreign subsidiaries of $9.8 million, which will begin to expire in this 10-K. The following table includes all compensation earned by the named executive officers for the respective periods, regardless of whether such amounts were actually paid during the period.
Name and Principal PositionYearSalary ($)Stock Awards ($)(1)
Option Awards
($)(1)
All Other Compensation
($)(7)
Total ($)
Serge Matta
Chief Executive Officer
2015
2014
2013

495,852
466,594
382,512
 
2,100,000
8,008,208
2,981,384
(2)
-
8,547,430
-
3,182
3,137
3,077

2,599,034
17,025,369
3,366,973

Melvin Wesley III
Chief Financial Officer
2015
2014
332,780
107,897
1,000,800
2,374,921
(3)
-
1,899,427
3,182
846
1,336,762
4,383,092
Cameron Meierhoefer
Chief Operating Officer
2015
2014
2013
367,098
342,333
315,750
1,026,664
2,491,271
1,411,262
(4)
-
1,899,427
-
1,636
1,950
1,929
1,395,398
4,734,981
1,728,941
Christiana Lin
Executive Vice President, General Counsel and Chief Privacy Officer
2015
2014
346,299
322,833
1,010,989
2,476,271
(5)
-
1,899,427
2,204
2,073
1,359,492
4,700,604
Michael Brown
Chief Technology Officer
2015

305,983829,500(6)
-

2,6301,138,113
(1)Amounts represent the aggregate grant date fair value of stock and option awards computed in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 718, Compensation-Stock Compensation (FASB ASC Topic 718). Assumptions used in the calculation of these amounts are described in Note 13 to the Consolidated Financial Statements included in Item 8 of this 10-K.
(2)(a) Includes a target performance-based annual incentive with a fair value of $700,000 (maximum opportunity of $1,400,000) computed in accordance with FASB ASC Topic 718, to vest in February 2016 subject to achievement of predetermined 2015 revenue and Adjusted EBITDA objectives. On February 15, 2016, an annual incentive award of $859,804 was granted following Compensation Committee review of preliminary 2015 results. (b) Includes a target performance-based long-term incentive with a fair value of $700,000 (maximum opportunity of $1,400,000) computed in accordance with FASB ASC Topic 718, to vest in three equal installments in February 2016, 2017 and 2018 subject to achievement of predetermined 2015 revenue and Adjusted EBITDA objectives and continued service through each vesting date. On February 15, 2016, a performance-based long-term incentive award of $859,804 was granted following Compensation Committee review of preliminary 2015 results, subject to the vesting schedule described above. (c) Includes a time-based long-term incentive award with a fair value of $700,000 computed in accordance with FASB ASC Topic 718, to vest in three equal installments in February 2016, 2017 and 2018 subject to continued service through each vesting date. Mr. Matta’s employment ended effective October 10, 2016.
(3)(a) Includes a target performance-based annual incentive with a fair value of $250,800 (maximum opportunity of $501,600) computed in accordance with FASB ASC Topic 718, to vest in February 2016 subject to achievement of predetermined 2015 revenue and Adjusted EBITDA objectives and individual objectives. On February 15, 2016, an annual incentive award of $270,326 was granted following Compensation Committee review of preliminary 2015 results. (b) Includes a target performance-based long-term incentive with a fair value of $450,000 (maximum opportunity of $900,000) computed in accordance with FASB ASC Topic 718, to vest in three equal installments in February 2016, 2017 and 2018 subject to achievement of predetermined 2015 revenue and Adjusted EBITDA objectives and continued service through each vesting date. On February 15, 2016, a performance-based long-term incentive award of $552,731 was granted following Compensation Committee review of preliminary 2015 results, subject to the vesting schedule described above. (c) Includes a time-based long-term incentive award with a fair value of $300,000 computed in accordance with FASB ASC Topic 718, to vest in three equal installments in February 2016, 2017 and 2018 subject to continued service through each vesting date. Mr. Wesley’s employment ended effective October 10, 2016.
(4)(a) Includes a target performance-based annual incentive with a fair value of $276,664 (maximum opportunity of $553,328) computed in accordance with FASB ASC Topic 718, to vest in February 2016 subject to achievement of predetermined 2015 revenue and Adjusted EBITDA objectives and individual objectives. On February 15, 2016, an annual award of $284,371 was granted following Compensation Committee review of preliminary 2015 results. (b) Includes a target performance-based long-term incentive with a fair value of $450,000 (maximum opportunity of $900,000) computed in accordance with FASB ASC Topic 718, to vest in three equal installments in February 2016, 2017 and 2018 subject to achievement of predetermined 2015 revenue and Adjusted EBITDA objectives and continued service through each vesting date. On February 15, 2016, a performance-based long-term incentive award of $552,731 was granted following Compensation Committee review of preliminary 2015 results, subject to the vesting schedule described above. (c) Includes a time-based long-term incentive award with a fair value of $300,000 computed in accordance with FASB ASC Topic 718, to vest in three equal installments in February 2016, 2017 and 2018 subject to continued service through each vesting date.
(5)(a) Includes a target performance-based annual incentive with a fair value of $260,989 (maximum opportunity of $521,978) computed in accordance with FASB ASC Topic 718, to vest in February 2016 subject to achievement of predetermined 2015 revenue and Adjusted EBITDA objectives and individual objectives. On February 15, 2016, an annual incentive award of $290,780 was granted following Compensation Committee review of preliminary 2015 results. (b) Includes a target performance-based long-term incentive with a fair value of $450,000 (maximum opportunity of $900,000) computed in accordance with FASB ASC Topic 718, to vest in three equal installments in February 2016, 2017 and 2018 subject to achievement of predetermined 2015 revenue and Adjusted EBITDA objectives and continued service through each vesting date. On February 15, 2016, a performance-based long-term incentive award of $552,731 was granted following Compensation Committee review of preliminary 2015 results, subject to the vesting schedule described above. (c) Includes a time-based long-term incentive award with a fair value of $300,000 computed in accordance with FASB ASC Topic 718, to vest in three equal installments

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in February 2016, 2017 and 2018 subject to continued service through each vesting date. Ms. Lin’s employment ended effective January 23, 2017, but her equity awards continued to vest until August 2, 2017 pursuant to a consulting agreement with the Company.
(6)(a) Includes a target performance-based annual incentive with a fair value of $229,500 (maximum opportunity of $459,000) computed in accordance with FASB ASC Topic 718, to vest in February 2016 subject to achievement of predetermined 2015 revenue and Adjusted EBITDA objectives and individual objectives. On February 15, 2016, an annual incentive award of $241,630 was granted following Compensation Committee review of preliminary 2015 results. (b) Includes a target performance-based long-term incentive with a fair value of $300,000 (maximum opportunity of $600,000) computed in accordance with FASB ASC Topic 718, to vest in three equal installments in February 2016, 2017 and 2018 subject to achievement of predetermined 2015 revenue and Adjusted EBITDA objectives and continued service through each vesting date. On February 15, 2016, a performance-based long-term incentive award of $368,487 was granted following Compensation Committee review of preliminary 2015 results, subject to the vesting schedule described above. (c) Includes a time-based long-term incentive award with a fair value of $300,000 computed in accordance with FASB ASC Topic 718, to vest in three equal installments in February 2016, 2017 and 2018 subject to continued service through each vesting date. Mr. Brown’s employment ended effective July 7, 2017.
(7)Includes matching contributions by us to the named executive officers’ 401(k) plan accounts and payment of life insurance premiums on behalf of the named executive officers.
2015 Grants of Plan-Based Awards Table
The following table sets forth certain information concerning grants of plan-based awards to our named executive officers in 2015.
  Approval DateEstimated Future Payouts Under Equity Incentive Plan Awards (1)
All Other Stock Awards: Number of Shares of Stock
(#)
All Other Option Awards: Number of Securities Underlying Options
(#)
Exercise or Base Price of Option Awards
($/Sh)
Grant Date Fair Value of Stock and Option Awards
($)(2)
NameGrant Date
Target
($)
Maximum
($)
Serge Matta

(3)


(3)

700,000
1,400,000
700,000 (4)
 
(3)

(3)

700,000
1,400,000
700,000 (5)
 
(3)

(3)

700,000

700,000 (6)
Melvin Wesley III

(3)


(3)

250,800
501,600
250,800 (7)
 
(3)

(3)

450,000
900,000
450,000 (8)
 
(3)

(3)

300,000

300,000 (9)
Cameron Meierhoefer

(3)


(3)

276,664
553,328
276,664 (10)
 
(3)

(3)

450,000
900,000
450,000 (11)
 
(3)

(3)

300,000

300,000 (12)
Christiana Lin

(3)



(3)

260,989
521,978
260,989 (13)
 
(3)

(3)

450,000
900,000
450,000 (14)
 
(3)

(3)

300,000

300,000 (15)
Michael Brown

(3)


(3)

229,500
459,000
229,500 (16)
 
(3)

(3)

300,000
600,000
300,000 (17)
 
(3)

(3)

300,000

300,000 (18)
(1)The target and maximum incentive award amounts shown in this column reflect the annual and long-term incentive compensation opportunities (denominated in dollars) available to our named executive officers for 2015. There were no threshold amounts established. Actual awards for 2015 were issued in Common Stock or RSUs in February 2016, with the conversion based on the closing market price of our Common Stock on February 12, 2016.
(2)Amounts represent the grant date fair value of awards computed in accordance with FASB ASC Topic 718. Assumptions used in the calculation of these amounts are described in Note 13 to the Consolidated Financial Statements included in Item 8 of this 10-K.
(3)On February 11, 2015, the Compensation Committee established target annual incentives, target long-term performance-based incentives, and long-term time-based incentives for the named executive officers. These incentives were awarded on February 15, 2016, after the Compensation Committee determined achievement against targets (for the performance-based incentive components) and subject to the named executive officer’s continued service through the determination date and each subsequent vesting date.
(4)Amount represents a target performance-based annual incentive to vest in February 2016 subject to achievement of predetermined 2015 revenue and Adjusted EBITDA objectives. On February 15, 2016, an annual incentive award of $859,804 was granted following Compensation Committee review of preliminary 2015 results.
(5)Amount represents a target performance-based long-term incentive to vest in three equal installments in February 2016, 2017 and 2018 subject to achievement of predetermined 2015 revenue and Adjusted EBITDA objectives and continued service through each vesting date. On February 15, 2016, a performance-based long-term incentive award of $859,804 was granted following Compensation Committee review of preliminary 2015 results, subject to the vesting schedule described above.
(6)Amount represents a time-based long-term incentive award to vest in three equal installments in February 2016, 2017 and 2018 subject to continued service through each vesting date.

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(7)Amount represents a target performance-based annual incentive to vest in February 2016 subject to achievement of predetermined 2015 revenue and Adjusted EBITDA objectives and individual objectives. On February 15, 2016, an annual incentive award of $270,326 was granted following Compensation Committee review of preliminary 2015 results.
(8)Amount represents a target performance-based long-term incentive to vest in three equal installments in February 2016, 2017 and 2018 subject to achievement of predetermined 2015 revenue and Adjusted EBITDA objectives and continued service through each vesting date. On February 15, 2016, a performance-based long-term incentive award of $552,731 was granted following Compensation Committee review of preliminary 2015 results, subject to the vesting schedule described above.
(9)Amount represents a time-based long-term incentive award to vest in three equal installments in February 2016, 2017 and 2018 subject to continued service through each vesting date.
(10)Amount represents a target performance-based annual incentive to vest in February 2016 subject to achievement of predetermined 2015 revenue and Adjusted EBITDA objectives and individual objectives. On February 15, 2016, an annual incentive award of $284,371 was granted following Compensation Committee review of preliminary 2015 results.
(11)Amount represents a target performance-based long-term incentive to vest in three equal installments in February 2016, 2017 and 2018 subject to achievement of predetermined 2015 revenue and Adjusted EBITDA objectives and continued service through each vesting date. On February 15, 2016, a performance-based long-term incentive award of $552,731 was granted following Compensation Committee review of preliminary 2015 results, subject to the vesting schedule described above.
(12)Amount represents a time-based long-term incentive award to vest in three equal installments in February 2016, 2017 and 2018 subject to continued service through each vesting date.
(13)Amount represents a target performance-based annual incentive to vest in February 2016 subject to achievement of predetermined 2015 revenue and Adjusted EBITDA objectives and individual objectives. On February 15, 2016, an annual incentive award of $290,780 was granted following Compensation Committee review of preliminary 2015 results.
(14)Amount represents a target performance-based long-term incentive to vest in three equal installments in February 2016, 2017 and 2018 subject to achievement of predetermined 2015 revenue and Adjusted EBITDA objectives and continued service through each vesting date. On February 15, 2016, a performance-based long-term incentive award of $552,731 was granted following Compensation Committee review of preliminary 2015 results, subject to the vesting schedule described above.
(15)Amount represents a time-based long-term incentive award to vest in three equal installments in February 2016, 2017 and 2018 subject to continued service through each vesting date.
(16)Amount represents a target performance-based annual incentive to vest in February 2016 subject to achievement of predetermined 2015 revenue and Adjusted EBITDA objectives and individual objectives. On February 15, 2016, an annual incentive award of $241,630 was granted following Compensation Committee review of preliminary 2015 results.
(17)Amount represents a target performance-based long-term incentive to vest in three equal installments in February 2016, 2017 and 2018 subject to achievement of predetermined 2015 revenue and Adjusted EBITDA objectives and continued service through each vesting date. On February 15, 2016, a performance-based long-term incentive award of $368,487 was granted following Compensation Committee review of preliminary 2015 results, subject to the vesting schedule described above.
(18)Amount represents a time-based long-term incentive award to vest in three equal installments in February 2016, 2017 and 2018 subject to continued service through each vesting date.
Notes to 2015 Summary Compensation Table and 2015 Grants of Plan Based Awards Table2024.
As discussed under Compensation Discussion and Analysis above, our Compensation Committee considered numerous factors, including individual and Company performance, position and level of responsibility, market data, and the recommendations of our then Chief Executive Officer, in determining each named executive officer’s salary, annual incentives, long-term incentives and other compensation for 2015. For additional information regarding the annual incentives and long-term incentives awarded to our named executive officers for 2015, including discussion of the criteria applied in determining the amounts payable, see “Executive Compensation Actions and Decisions for 2015” under Compensation Discussion and Analysis above. In 2015, the base salaries of the named executive officers constituted approximately one-fifth to one-fourth of their total compensation, with the remaining compensation composed principally of equity incentives.

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2015 Outstanding Equity Awards at Fiscal Year End
The following table sets forth certain information concerning outstanding equity awards held by the named executive officers as of December 31, 2015. This table does not include annual incentive awards and long-term incentive awards for 2015, as these awards had not yet been issued as of December 31, 2015.
 Option AwardsStock Awards
 Number of Securities Underlying Unexercised and Exercisable Options (#)
Option Exercise
Price
($)
Option Expiration
Date (1)
Number of Shares or Units of Stock That Have Not Vested (#) (2)Market Value of Shares or Units of Stock That Have Not Vested ($) (2)
Name
Serge Matta8,750 (3)360,063 (3)
 16,667 (4)685,847 (4)
 12,555 (5)516,638 (5)
 29,789 (6)1,225,817 (6)
 30,565 (7)1,257,750 (7)
 984,72742.9211/7/2024
      
Melvin Wesley III6,700 (8)275,705 (8)
 18,536 (9)762,756 (9)
 121,32842.9211/7/2024
      
Cameron Meierhoefer8,750 (10)360,063 (10)
 8,334 (11)342,944 (11)
 6,278 (12)258,340 (12)
 10,050 (13)413,558 (13)
 18,536 (14)762,756 (14)
 218,82842.9211/7/2024
      
Christiana Lin6,250 (15)257,188 (15)
 8,334 (16)342,944 (16)
 6,278 (17)258,340 (17)
 10,050 (18)413,558 (18)
 18,536 (19)762,756 (19)
 218,82842.9211/7/2024
      
Michael Brown8,750 (20)360,063 (20)
 2,257 (21)92,876 (21)
 12,500 (22)514,375 (22)
 1,675 (23)68,926 (23)
 10,050 (24)413,558 (24)
 2,805 (25)115,426 (25)
 103,08942.9211/7/2024

(1)Option expiration dates in this column reflect the original expiration dates in effect as of December 31, 2015. On April 26, 2016, our Board of Directors approved an extension of the exercisability of outstanding stock options for all of our employees in the event of a cessation of their employment prior to our regaining compliance with SEC filing requirements. As a result, any employees who left the Company while holding exercisable stock options prior to our regaining compliance with SEC filing obligations were given an additional 180 days following such compliance to exercise their options, subject to any earlier expiration date in their individual award agreements. Mr. Matta, Mr. Wesley, Ms. Lin and Mr. Brown are eligible to take advantage of this option extension.
(2)Market value of shares or units of stock that have not vested is computed based on the closing market price of our Common Stock as reported on the Nasdaq Global Select Market on December 31, 2015, which was $41.15 per share.
(3)8,750 shares vested on March 15, 2016.
(4)RSUs with respect to 16,667 shares vested on February 18, 2016.

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(5)RSUs with respect to 12,555 shares vested on February 18, 2016.
(6)RSUs with respect to 14,672 shares vested on February 18, 2016. The remaining RSUs were canceled upon Mr. Matta’s departure in 2016.
(7)RSUs with respect to 15,282 shares vested on February 18, 2016. The remaining RSUs were canceled upon Mr. Matta’s departure in 2016.
(8)RSUs with respect to 3,300 shares vested on August 15, 2016. The remaining RSUs were canceled upon Mr. Wesley’s departure in 2016.
(9)RSUs with respect to 9,268 shares vested on February 18, 2016. The remaining RSUs were canceled upon Mr. Wesley’s departure in 2016.
(10)8,750 shares vested on March 15, 2016.
(11)RSUs with respect to 8,334 shares vested on February 18, 2016.
(12)RSUs with respect to 6,278 shares vested on February 18, 2016.
(13)RSUs with respect to 4,950 shares vested on February 18, 2016, and RSUs with respect to 5,100 shares vested on February 18, 2017.
(14)RSUs with respect to 9,268 shares vested on each of February 18, 2016 and February 18, 2017.
(15)6,250 shares vested on March 15, 2016.
(16)RSUs with respect to 8,334 shares vested on February 18, 2016.
(17)RSUs with respect to 6,278 shares vested on February 18, 2016.
(18)RSUs with respect to 4,950 shares vested on February 18, 2016, and RSUs with respect to 5,100 shares vested on February 18, 2017.
(19)RSUs with respect to 9,268 shares vested on each of February 18, 2016 and February 18, 2017.
(20)8,750 shares vested on March 15, 2016.
(21)RSUs with respect to 2,257 shares vested on March 15, 2016.
(22)RSUs with respect to 6,250 shares vested on each of February 18, 2016 and February 18, 2017.
(23)RSUs with respect to 1,675 shares vested on March 15, 2016.
(24)RSUs with respect to 4,950 shares vested on February 18, 2016, and RSUs with respect to 5,100 shares vested on February 18, 2017.
(25)RSUs with respect to 1,402 shares vested on February 18, 2016, and RSUs with respect to 1,403 shares vested on February 18, 2017.

2015 Option Exercises and Stock Vested
The following table sets forth certain information concerning the number of shares our named executive officers acquired and the value they realized upon exercise of options and vesting of stock awards during 2015. Values are shown before payment of any applicable withholding taxes or brokerage commissions.
NameOption AwardsStock Awards
Number of Shares Acquired on
Exercise
(#)
Value Realized on Exercise
($)(1)
Number of Shares Acquired on
Vesting
(#)
Value Realized
on Vesting
($)(2)
Serge Matta417
22,097
253,858
12,999,080
     
Melvin Wesley III97,500
866,317
52,929
2,684,725
     
Cameron Meierhoefer

82,311
4,146,221
     
Christiana Lin

77,629
3,927,216
     
Michael Brown

47,570
2,440,957
 6,325
54,824



(1)The value realized on exercise is calculated as the difference between the market price of the underlying shares and the exercise price of the options.
(2)The value realized on vesting is calculated by multiplying the number of shares of stock or units by the market value of the underlying shares on the vesting date.

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2016 Summary Compensation Table
The following table sets forth summary information concerning compensation for the following persons: (i) all persons serving as our principal executive officer during 2016, (ii) all persons serving as our principal financial officer during 2016, and (iii) the next three most highly compensated executive officers during 2016, all of whom were serving as executive officers as of December 31, 2016. We refer to these persons as our “named executive officers” for 2016 elsewhere in this 10-K. The following table includes all compensation earned by the named executive officers for the respective periods, regardless of whether such amounts were actually paid during the period.
Name and Principal PositionYearSalary ($)Bonus ($) (1)
Stock Awards
($)(2)
Option Awards
($)(3)
All Other Compensation
($)(4)
Total ($)
Gian Fulgoni (5)
Chief Executive Officer
2016
2015
2014
220,000
220,082
375,079
-
-
-
-
530,000
1,150,000
 -
-
-
3,919
345
367
223,919
750,427
1,525,446
Serge Matta (6)
Former Chief Executive Officer
2016
2015
2014
388,191
495,852
466,594
 
-
-
-
-
2,100,000
8,008,208
 
1,873,640
-
8,547,430

114,847
3,182
3,137

2,376,678
2,599,034
17,025,369

David Chemerow (7)
Chief Financial Officer
2016318,26064,8341,276,850(8)-
19,0991,679,043
Melvin Wesley III (9)
Former Chief Financial Officer
2016
2015
2014
261,682
332,780
107,897
-
-
-
-
1,000,800
2,374,921
 
230,851
-
1,899,427
79,753
3,182
846
572,286
1,336,762
4,383,092
William Livek (10)
President
2016409,245-356,000(11)-
4,655769,900
Cameron Meierhoefer
Chief Operating Officer
2016
2015
2014
368,885
367,098
342,333
57,408
-
-
-
1,026,664
2,491,271
 
-
-
1,899,427
5,054
1,636
1,950
431,347
1,395,398
4,734,981
Michael Brown
Chief Technology Officer
2016
2015

306,000
305,983
45,900
-
-
829,500
 -
-
4,230
2,630
356,130
1,138,113
(1)Amounts reflect cash bonuses awarded by the Compensation Committee to certain named executive officers on March 20, 2017 based on an evaluation of each individual’s contributions during 2016.
(2)Amounts represent the aggregate grant date fair value of stock awards computed in accordance with FASB ASC Topic 718. Assumptions used in the calculation of these amounts are described in Note 13 to the consolidated financial statements included in Item 8 of this 10-K.
(3)Amounts for 2014 represent the aggregate grant date fair value of option awards computed in accordance with FASB ASC Topic 718. Amounts for 2016 represent incremental expense recognized in the year of termination of employment, in connection with an extension of option exercisability for all employees who ceased employment prior to our regaining compliance with SEC filing requirements. Assumptions used in the calculation of these amounts are described in Note 13 to the consolidated financial statements included in Item 8 of this 10-K.
(4)Amounts for 2016 consisted of (a) matching contributions by us to the named executive officers’ 401(k) plan accounts, (b) payment of life insurance premiums on behalf of the named executive officers, (c) costs for guest attendance at a Company event, (d) automobile allowances for Mr. Chemerow and Mr. Livek (a legacy Rentrak benefit that ended in 2016), (e) severance benefits of $103,333 for Mr. Matta and $69,667 for Mr. Wesley, (f) COBRA benefits of $3,804 for Mr. Wesley, and (g) director fees of $6,685 for Mr. Matta for the period during which he served as a non-employee director.
(5)Appointed Chief Executive Officer effective August 5, 2016. Amounts include compensation from Mr. Fulgoni’s prior role with the Company.
(6)Transitioned from Chief Executive Officer to Executive Vice Chairman effective August 5, 2016; resigned effective October 10, 2016.
(7)Appointed Chief Financial Officer effective August 5, 2016. Amounts include compensation from Mr. Chemerow’s prior role with the Company.
(8)(a) Includes 10,000 RSUs with a fair value of $356,000 computed in accordance with FASB ASC Topic 718, awarded February 15, 2016 in connection with Mr. Chemerow’s prior role with the Company, to vest in two equal installments in February 2017 and 2018. (b) Includes a promotion grant of 35,000 RSUs with a fair value of $920,850 computed in accordance with FASB ASC Topic 718, awarded August 5, 2016, to vest in four equal installments in August 2017, 2018, 2019 and 2020. Mr. Chemerow’s employment ended effective September 8, 2017, but his equity awards continued to vest pursuant to a separation agreement with the Company.
(9)Transitioned from Chief Financial Officer to Executive Vice President effective August 5, 2016; resigned effective October 10, 2016.
(10)Appointed President and Executive Vice Chairman effective January 29, 2016.
(11)Reflects a new-hire grant of 10,000 RSUs with a fair value of $356,000 computed in accordance with FASB ASC Topic 718, awarded February 15, 2016, to vest in three equal installments in February 2017, 2018 and 2019 subject to continued service through each vesting date.

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2016 Grants of Plan-Based Awards Table
The following table sets forth certain information concerning grants of plan-based awards to our named executive officers in 2016.
  Approval DateEstimated Future Payouts Under Equity Incentive Plan Awards (1)
All Other Stock Awards: Number of Shares of Stock
(#)
All Other Option Awards: Number of Securities Underlying Options
(#)
Exercise or Base Price of Option Awards
($/Sh)
Grant Date Fair Value of Stock and Option Awards
($) (1)
NameGrant Date
Target
(#)
Maximum
(#)
Gian Fulgoni 
          
Serge Matta1,873,640(2)
          
David Chemerow2/15/20162/2/201610,000 (3)356,000 
 8/5/20168/2/201635,000 (4)920,850 
          
Melvin Wesley III230,851(5)
          
William Livek2/15/20162/2/201610,000 (6)356,000 
          
Cameron Meierhoefer 
          
Michael Brown 
          
(1)Except as otherwise noted, amounts represent the grant date fair value of awards computed in accordance with FASB ASC Topic 718. Assumptions used in the calculation of these amounts are described in Note 13 to the consolidated financial statements included in Item 8 of this 10-K.
(2)Amount represents incremental expense recognized in the year of termination of employment for awards granted in prior years, in connection with an extension of option exercisability for all employees who ceased employment prior to our regaining compliance with SEC filing requirements. Mr. Matta’s employment ended on October 10, 2016.
(3)Amount represents a new-hire grant to vest in two equal installments in February 2017 and 2018. Mr. Chemerow’s employment ended effective September 8, 2017, but his equity awards continued to vest pursuant to a separation agreement with the Company.
(4)Amount represents a promotion grant to vest in four equal installments in August 2017, 2018, 2019 and 2020. Mr. Chemerow’s employment ended effective September 8, 2017, but his equity awards continued to vest pursuant to a separation agreement with the Company.
(5)Amount represents incremental expense recognized in the year of termination of employment for awards granted in prior years, in connection with an extension of option exercisability for all employees who ceased employment prior to our regaining compliance with SEC filing requirements. Mr. Wesley’s employment ended on October 10, 2016.
(6)Amount represents a new-hire grant to vest in three equal installments in February 2017, 2018 and 2019 subject to continued service through each vesting date.
Notes to 2016 Summary Compensation Table and 2016 Grants of Plan Based Awards Table
As discussed under Compensation Discussion and Analysis above, due to the commencement of the Audit Committee investigation in 2016, our Compensation Committee did not conduct its regular annual review of the base salaries of our executive officers or establish formal annual or long-term incentive award opportunities for our executive officers during 2016. Instead, the compensation decisions reflected in the 2016 tables above were made largely on an individualized, case-by-case basis, taking into consideration the situation that confronted2022, the Company at the time that we neededhad research and development credit carryforwards of $3.2 million which begin to appoint a new executive officer, address the circumstances involving a departing executive officer, or respond to the incentive and retention challenges that were presented for continuing executive officers. For additional information regarding the compensation of our named executive officers for 2016, see “Executive Compensation Actions and Decisions for 2016” under Compensation Discussion and Analysis above.



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2016 Outstanding Equity Awards at Fiscal Year End
The following table sets forth certain information concerning outstanding equity awards held by the named executive officers as of December 31, 2016.
 Option AwardsStock Awards
 Number of Securities Underlying Unexercised and Exercisable Options (#)
Option Exercise
Price
($)
Option Expiration
Date (1)
Number of Shares or Units of Stock That Have Not Vested (#) (2)Market Value of Shares or Units of Stock That Have Not Vested ($) (2)
Name
Gian Fulgoni7,724 (3)243,924 (3)
 7,131 (4)225,197 (4)
      
Serge Matta984,72742.92(1)
      
David Chemerow48,300 (5)11.5611/6/2021
 276,000 (6)25.8612/23/2020
 121,612 (6)14.9810/1/2019
 35,000 (7)1,105,300 (7)
 10,000 (8)315,800 (8)
      
Melvin Wesley III121,32842.92(1)
      
William Livek316,250 (6)12.616/15/2019
 184,000 (6)25.8612/23/2020
 102,350 (5)11.5611/6/2021
 10,000 (9)315,800 (9)
      
Cameron Meierhoefer218,82842.9211/7/2024
 5,100 (10)161,058 (10)
 9,268 (11)292,683 (11)
 15,969 (12)504,301 (12)
      
Michael Brown103,08942.9211/7/2024
 6,250 (13)197,375 (13)
 5,100 (14)161,058 (14)
 1,403 (15)44,307 (15)
 12,519 (16)395,350 (16)
(1)Option expiration dates in this column reflect the original expiration dates in effect as of December 31, 2016 for those named executive officers who were still providing services to the Company on that date. On April 26, 2016, our Board of Directors approved an extension of the exercisability of outstanding stock options for all of our employees in the event of a cessation of their employment prior to our regaining compliance with SEC filing requirements. As a result, any employees who left the Company while holding exercisable stock options prior to our regaining compliance with SEC filing obligations were given an additional 180 days following such compliance to exercise their options, subject to any earlier expiration date in their individual award agreements. Mr. Matta and Mr. Wesley left the Company with exercisable stock options in 2016 and are eligible to take advantage of this option extension. Mr. Chemerow and Mr. Brown left the Company with exercisable stock options in 2017 and are eligible to take advantage of this option extension.
(2)Market value of shares or units of stock that have not vested is computed based on the closing market price of our Common Stock as reported on the Nasdaq Global Select Market on December 30, 2016, which was $31.58 per share.
(3)RSUs with respect to 7,724 shares vested on February 18, 2017.

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(4)RSUs with respect to 3,565 shares vested on February 15, 2017. RSUs with respect to 3,566 shares were scheduled to vest on February 15, 2018 but were accelerated to November 13, 2017 in connection with Dr. Fulgoni’s retirement.
(5)Award granted under the Rentrak Corporation 2011 Stock Incentive Plan and assumed by the Company on January 29, 2016 in connection with the Rentrak merger.
(6)Award granted under the Rentrak Corporation 2005 Stock Incentive Plan and assumed by the Company on January 29, 2016 in connection with the Rentrak merger.
(7)RSUs with respect to 8,750 shares vested on August 5, 2017. The remaining RSUs are scheduled to vest in equal installments on August 5, 2018, August 5, 2019 and August 5, 2020.
(8)RSUs with respect to 5,000 shares vested on each of February 15, 2017 and February 15, 2018.
(9)RSUs with respect to 3,333 shares vested on each of February 15, 2017 and February 15, 2018. The remaining RSUs are scheduled to vest on February 15, 2019, subject to continued service through the vesting date.
(10)RSUs with respect to 5,100 shares vested on February 18, 2017.
(11)RSUs with respect to 9,268 shares vested on February 18, 2017.
(12)RSUs with respect to 7,984 shares vested on February 15, 2017, and RSUs with respect to 7,985 shares vested on February 15, 2018.
(13)RSUs with respect to 6,250 shares vested on February 18, 2017.
(14)RSUs with respect to 5,100 shares vested on February 18, 2017.
(15)RSUs with respect to 1,403 shares vested on February 18, 2017.
(16)RSUs with respect to 6,259 shares vested on February 15, 2017. The remaining RSUs were canceled upon Mr. Brown’s departure in 2017.


2016 Option Exercises and Stock Vested
The following table sets forth certain information concerning the number of shares our named executive officers acquired and the value they realized upon vesting of stock awards during 2016. Values are shown before payment of any applicable withholding taxes or brokerage commissions. None of our named executive officers exercised optionsexpire in 2016.
NameOption AwardsStock Awards
Number of Shares Acquired on
Exercise
(#)
Value Realized on Exercise
($)
Number of Shares Acquired on
Vesting
(#)
Value Realized
on Vesting
($)(1)
Gian Fulgoni

46,543
1,683,065
     
Serge Matta

106,683
3,917,931
     
David Chemerow



     
Melvin Wesley III

28,147
999,133
     
William Livek



     
Cameron Meierhoefer

53,553
1,936,375
     
Michael Brown

38,332
1,321,264

(1)The value realized on vesting is calculated by multiplying the number of shares of stock or units by the market value of the underlying shares on the vesting date.

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2017 Summary Compensation Table
The following table sets forth summary information concerning compensation for the following persons: (i) all persons serving as our principal executive officer during 2017, (ii) all persons serving as our principal financial officer during 2017, (iii) the next most highly compensated executive officer who was serving as of December 31, 2017 (we had no other executive officers as of December 31, 2017), and (iv) two additional individuals who served as executive officers during 2017 but were not serving as of December 31, 2017. We refer to these persons as our “named executive officers” for 2017 elsewhere in this 10-K. The following table includes all compensation earned by the named executive officers for the respective periods, regardless of whether such amounts were actually paid during the period.
Name and Principal PositionYearSalary ($)Bonus ($)
Stock Awards
($)(1)
Option Awards
($)(2)
All Other Compensation
($)(3)
Total ($)
William Livek (4)
President (Principal Executive Officer)
2017
2016
443,700
409,245
444,000
-
(5)-
356,000
-
-
3,090
4,655
890,790
769,900
Gian Fulgoni (6)
Former Chief Executive Officer
2017
2016
2015
191,186
220,000
220,082

-
-
-
 
-
-
530,000
-
-
-
703
3,919
345

191,889
223,919
750,427
Gregory Fink (7)
Chief Financial Officer
201795,87573,125(8)--
52169,052
David Kay (9)
Former Interim Chief Financial Officer
2017-- --
69,35069,350
David Chemerow (10)
Former Chief Financial Officer
2017
2016
244,456
318,260
100,000
64,834
(11)-
1,276,850
4,411,746
-
139,502
19,099
4,895,704
1,679,043
Carol DiBattiste (12)
General Counsel & Chief Compliance, Privacy and People Officer
2017355,5902,008,000(13)--
3,3202,366,910
Christiana Lin (14)
Former Executive Vice President, General Counsel and Chief Privacy Officer
2017
2016
2015
30,317
347,985
346,299
-
-
-
 -
-
1,010,989
496,761
-
-
838,213
3,787
2,204

1,365,291
351,772
1,359,492
Michael Brown (15)
Former Chief Technology Officer
2017
2016
2015
166,005
306,000
305,983
100,000
45,900
-
(16)
-
-
829,500
191,086
-
-
330,060
4,230
2,630
787,151
356,130
1,138,113
(1)Amounts represent the aggregate grant date fair value of stock awards computed in accordance with FASB ASC Topic 718. Assumptions used in the calculation of these amounts are described in Note 13 to the consolidated financial statements included in Item 8 of this 10-K.
(2)Amounts represent incremental expense recognized in the year of termination of employment for awards granted in prior years, in connection with an extension of option exercisability for all employees who ceased employment prior to our regaining compliance with SEC filing requirements. Assumptions used in the calculation of these amounts are described in Note 13 to the consolidated financial statements included in Item 8 of this 10-K.
(3)Amounts for 2017 consisted of (a) matching contributions by us to the named executive officers’ 401(k) plan accounts, (b) payment of life insurance premiums on behalf of the named executive officers, (c) severance benefits of $104,887 for Mr. Chemerow, $318,986 for Ms. Lin, and $165,240 for Mr. Brown, (d) COBRA benefits of $4,018 for Mr. Chemerow, $18,862 for Ms. Lin, and $9,510 for Mr. Brown, (e) attorneys’ fees of $27,474 for Mr. Chemerow in connection with his resignation; (f) consulting fees of $500,000 for Ms. Lin and $152,530 for Mr. Brown, and (g) fees of $69,350 paid to CrossCountry Consulting LLC pursuant to an interim services agreement in connection with Mr. Kay’s service as Interim Chief Financial Officer.
(4)Appointed President and Executive Vice Chairman effective January 29, 2016; has acted as our principal executive officer since Dr. Fulgoni’s retirement on November 13, 2017.
(5)Amount reflects a cash performance bonus awarded by the Compensation Committee on March 14, 2018 based on an evaluation of Mr. Livek’s contributions during 2017.
(6)Appointed Chief Executive Officer effective August 5, 2016 and retired effective November 13, 2017. 2015 and 2016 amounts include compensation from Dr. Fulgoni’s prior role with the Company.
(7)Appointed Chief Financial Officer effective October 17, 2017.
(8)Amount reflects a cash performance bonus awarded by the Compensation Committee on March 14, 2018 based on an evaluation of Mr. Fink’s contributions during 2017.
(9)Served as Interim Chief Financial Officer from September 10, 2017 to October 16, 2017.
(10)Appointed Chief Financial Officer effective August 5, 2016 and resigned effective September 8, 2017. 2016 amounts include compensation from Mr. Chemerow’s prior role with the Company.
(11)Amount reflects a cash bonus awarded by the Compensation Committee on March 20, 2017, designed to be consistent with the value of the time-based equity incentive awards granted in previous years.
(12)Appointed General Counsel & Chief Privacy and People Officer effective January 23, 2017 (later expanded to General Counsel & Chief Compliance, Privacy and People Officer).

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(13)Amount reflects (a) a cash sign-on bonus of $200,000, paid in equal installments on April 2017 and July 2017, (b) a cash performance and retention bonus of $1,500,000, payable in equal installments in October 2017, January 2018 and September 2018 in recognition of Ms. DiBattiste’s efforts in reaching settlement terms in certain of our outstanding litigation, and (c) a cash performance bonus awarded by the Compensation Committee on March 14, 2018 based on an evaluation of Ms. DiBattiste’s contributions during 2017.
(14)Resigned as Executive Vice President, General Counsel and Chief Privacy Officer effective January 23, 2017; served as a consultant until August 2, 2017.
(15)Transitioned from Chief Technology Officer effective July 7, 2017; served as a consultant until October 13, 2017.
(16)Amount reflects a cash bonus awarded by the Compensation Committee on March 20, 2017, designed to be consistent with the value of the time-based equity incentive awards granted in previous years.

2017 Grants of Plan-Based Awards Table

The following table sets forth certain information concerning grants of plan-based awards to our named executive officers in 2017.
Approval DateEstimated Future Payouts Under Equity Incentive Plan Awards (1)
All Other Stock Awards: Number of Shares of Stock
(#)
All Other Option Awards: Number of Securities Underlying Options
(#)
Exercise or Base Price of Option Awards
($/Sh)
Grant Date Fair Value of Stock and Option Awards
($) (1)
NameGrant Date
Target
(#)
Maximum
(#)
William Livek
Gian Fulgoni
Gregory Fink
David Kay
David Chemerow4,411,746
Carol DiBattiste
Christiana Lin496,761
Michael Brown191,086
(1)Amounts represent incremental expense recognized in the year of termination of employment for awards granted in prior years, in connection with an extension of option exercisability for all employees who ceased employment prior to our regaining compliance with SEC filing requirements. Mr. Chemerow’s employment ended on September 8, 2017; Ms. Lin’s service ended on August 2, 2017; and Mr. Brown’s service ended on October 13, 2017. Assumptions used in the calculation of these amounts are described in Note 13 to the consolidated financial statements included in Item 8 of this 10-K.
Notes to 2017 Summary Compensation Table and 2017 Grants of Plan Based Awards Table
As discussed under Compensation Discussion and Analysis above, due to the ongoing restatement and audit process in 2017, the Compensation Committee did not establish formal annual or long-term incentive award opportunities for our executive officers for 2017. Instead, the compensation decisions reflected in the 2017 tables above were made largely on an individualized, case-by-case basis, taking into consideration the situation that confronted the Company at the time that we needed to appoint a new executive officer, address the circumstances involving a departing executive officer, or respond to the incentive and retention challenges that were presented for continuing executive officers. For additional information regarding the compensation of our named executive officers for 2017, see “Executive Compensation Actions and Decisions for 2017” under Compensation Discussion and Analysis above.

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2017 Outstanding Equity Awards at Fiscal Year End
The following table sets forth certain information concerning outstanding equity awards held by the named executive officers as of December 31, 2017.
 Option AwardsStock Awards 
 Number of Securities Underlying Unexercised and Exercisable Options (#)
Option Exercise
Price
($)
Option Expiration
Date (1)
Number of Shares or Units of Stock That Have Not Vested (#) (2)Market Value of Shares or Units of Stock That Have Not Vested ($) (2)
Name
William Livek316,250 (3)12.616/15/2019 
 184,000 (3)25.8612/23/2020 
 102,350 (4)11.5611/6/2021 
 6,667 (5)190,010 
       
Gian Fulgoni 
       
Gregory Fink 
       
David Kay 
       
David Chemerow48,300 (4)11.56(1) 
 276,000 (3)25.86(1) 
 121,612 (3)14.98(1) 
 26,250 (6)748,125(6)
 5,000 (7)142,500(7)
       
Carol DiBattiste 
       
Christiana Lin218,82842.92(1) 
       
Michael Brown103,08942.92(1) 
       
(1)Option expiration dates in this column reflect the original expiration dates in effect as of December 31, 2017 for those named executive officers who were still providing services to the Company on that date. On April 26, 2016, our Board of Directors approved an extension of the exercisability of outstanding stock options for all of our employees in the event of a cessation of their employment prior to our regaining compliance with SEC filing requirements. As a result, any employees who left the Company while holding exercisable stock options prior to our regaining compliance with SEC filing obligations were given an additional 180 days following such compliance to exercise their options, subject to any earlier expiration date in their individual award agreements. Mr. Chemerow, Ms. Lin and Mr. Brown left the Company with exercisable stock options in 2017 and are eligible to take advantage of this option extension.
(2)Market value of shares or units of stock that have not vested is computed based on the closing market price of our Common Stock as reported on the OTC Pink Tier on December 29, 2017, which was $28.50 per share.
(3)Award granted under the Rentrak Corporation 2005 Stock Incentive Plan and assumed by the Company on January 29, 2016 in connection with the Rentrak merger.
(4)Award granted under the Rentrak Corporation 2011 Stock Incentive Plan and assumed by the Company on January 29, 2016 in connection with the Rentrak merger.
(5)RSUs with respect to 3,333 shares vested on February 15, 2018. The remaining RSUs are scheduled to vest on February 15, 2019, subject to continued service through the vesting date.
(6)RSUs are scheduled to vest in equal installments on August 5, 2018, August 5, 2019 and August 5, 2020.
(7)RSUs with respect to 5,000 shares vested on February 15, 2018.


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2017 Option Exercises and Stock Vested
The following table sets forth certain information concerning the number of shares our named executive officers acquired and the value they realized upon vesting of stock awards during 2017. Values are shown before payment of any applicable withholding taxes or brokerage commissions. None of our named executive officers exercised options in 2017.
NameOption AwardsStock Awards
Number of Shares Acquired on
Exercise
(#)
Value Realized on Exercise
($)
Number of Shares Acquired on
Vesting
(#)
Value Realized
on Vesting
($)(1)
William Livek

3,333
74,959
     
Gian Fulgoni

14,855
375,100
     
Gregory Fink



     
David Kay



     
David Chemerow

13,750
373,200
     
Carol DiBattiste



     
Christiana Lin

22,352
528,703
     
Michael Brown

19,012
450,663
     

(1)The value realized on vesting is calculated by multiplying the number of shares of stock or units by the market value of the underlying shares on the vesting date.

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PAYMENTS UPON TERMINATION OR CHANGE IN CONTROL
Current Named Executive Officers
Change of Control and Severance Agreements
Each of our named executive officers serving at the end of 2017 (Mr. Livek, Mr. Fink and Ms. DiBattiste) has entered into our form of change of control and severance agreement for executive officers (the “Change of Control and Severance Agreement”). The Change of Control and Severance Agreement has a three-year initial term with automatic three-year renewals thereafter, and in the event of a change of control (as defined in the Change of Control and Severance Agreement), will continue in effect through the longer of the date that is 12 months following the effective date of the change of control or the remainder of the term then in effect.
The Change of Control and Severance Agreement provides that if the Company terminates an executive officer’s employment without cause or an executive officer resigns for good reason (each as defined below), then, subject to compliance with certain post-employment covenants, the executive officer would be eligible to receive (i) payment of all accrued but unpaid vacation, expense reimbursements, wages and other benefits due under our compensation plans, policies and arrangements; (ii) reimbursement of continuation healthcare (COBRA) premiums (or an equivalent cash distribution if the severance period exceeds the permitted COBRA participation period) until the earlier of the expiration of the executive officer’s severance period or the date that he or she becomes covered under a similar plan; and (iii) the following severance payments, depending on the time of termination or resignation:
Time of Termination or ResignationSeverance Benefit
Prior to a change of controlIf employed in executive role for less than two years, continuing payments at a rate equal to the executive officer’s annual base salary then in effect, for a specified period following termination, to be paid periodically in accordance with our normal payroll policies. For Mr. Livek, this period is 24 months. For Mr. Fink and Ms. DiBattiste, this period is six months.
If employed in executive role for two years or more, continuing payments at a rate equal to the executive officer’s annual base salary then in effect, for a specified period following termination, to be paid periodically in accordance with our normal payroll policies. For Mr. Livek, this period is 24 months. For Mr. Fink, this period is 15 months. For Ms. DiBattiste, this period is 12 months.
On or within 12 months after a change of controlA lump sum payment (less applicable withholding taxes) equal to a specified multiple of the executive officer’s annual base salary in effect immediately prior to his or her termination date or, if greater, at the level in effect immediately prior to the change of control. For Mr. Livek, this multiple is 2.0 times annual base salary. For Mr. Fink, this multiple is 1.25 times annual base salary. For Ms. DiBattiste, this multiple is 1.0 times annual base salary.
Further, if an executive officer is terminated without cause or resigns for good reason on or within 12 months after a change of control (a "Double-Trigger Change of Control Event"), or remains employed by or continues to provide services to the Company through the one-year anniversary of a change of control, the Change of Control and Severance Agreement provides that all of the executive officer’s outstanding and unvested equity awards held as of the date of the change of control will vest in full.2025.
Under the Changeprovisions of Control and Severance Agreement, “cause” is defined as an executive officer’s indictment, plea of nolo contendere or conviction of any felony or any crime involving dishonesty; material breach of duties or a Company policy; or commission of any act of dishonesty, embezzlement, theft, fraud or misconduct with respect to the Company, any of whichInternal Revenue Code Section 382, certain substantial changes in the good faithCompany's ownership may result in a limitation on the amount of U.S. net operating loss carryforwards that can be utilized annually to offset future taxable income and reasonable determinationtaxes payable. A significant portion of the Board or the Compensation Committee is materially detrimentalCompany's net operating loss carryforwards are subject to the Company, its business or its reputation. “Good reason” is defined as an executive officer’s termination of employment within 90 days after the expiration of a specified cure period following the occurrence of one or more of the following, without the executive officer’s consent: (i) a material diminution in the executive officer’s base compensation (unless such reduction is done as part of a reduction program for all of our senior-level executives); (ii) a material reduction of the executive officer’s authority or responsibilities relative to his or her authority or responsibilities in effect immediately prior to such reduction, or, following a change of control,

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a change in the executive officer’s reporting position such that he or she no longer reports directly to the chief executive officer of the parent corporation in a group of controlled corporations; or (iii) the relocation of the executive officer’s primary workplace to a location more than 50 miles away from his or her workplace in effect immediately prior to such relocation.
Paymentsannual limitation under the Change of Control and Severance Agreement are contingent upon the executive officer’s execution and non-revocation of a release of claims in a form acceptable to the Company, as well as his or her continued compliance with certain post-employment covenants, including non-disclosure obligations (with appropriate exceptions for disclosures to government officials or attorneys in connection with a suspected violation of law or regulation) and obligations not to compete with the Company or to engage in solicitation during the 12-month period following termination of employment.
In the event that the payments or benefits under the Change of Control and Severance Agreement (i) would constitute “parachute payments” within the meaning of Section 280G382 of the Internal Revenue Code or (ii) would subjectCode. The Company anticipates the Transactions may have triggered further limitations but has not yet reached a final conclusion as to whether an executive officerownership change occurred and to what extent its net operating loss carryforwards are further limited. Additionally, despite the excise tax imposed by Section 4999 of the Code, the executive officer would receive such payment as would entitle him or her to receive the greatest after-tax benefit.
Potential Payments as of Fiscal Year End 2017
The following tables show the value of the potential payments that Mr. Livek, Mr. Fink and Ms. DiBattiste would have received in various scenarios involving a termination of their employment or change of control event, assuming a December 29, 2017 triggering date and, where applicable, a price per share for our Common Stock of $28.50 (the closing bid price of our Common Stock on the OTC Pink Tier on December 29, 2017). December 29, 2017 was the last business day of 2017.
William Livek
Payments Upon Termination
Voluntary Termination
($)
Termination by Employee for Good Reason
($)
Involuntary Termination without Cause
($)
Involuntary Termination
for Cause
($)
Double-Trigger Change of Control Event
($)
Extended Service after Change of Control Event
($)
Severance Payments
888,000
 888,000
 
888,000
(1)
 
COBRA Benefits
32,245
(2)32,245
(2)
32,245
(2)
 
Restricted Stock Units

 
 
190,010
(3)190,010
(3)
Total
920,245
 920,245
 
1,110,255
 190,010
 
(1)Represents the amount payable if Mr. Livek were terminated without cause or resigned for good reason on or within 12 months after a change of control.
(2)Represents the amount payable if Mr. Livek elected continuation healthcare coverage under COBRA for the full severance period.
(3)Represents the fair market value of RSU awards, the vesting of which would accelerate if Mr. Livek were terminated without cause or resigned for good reason on or within 12 months after a change of control, or if he remained employed by or continued to provide services to the Company through the one-year anniversary of a change of control.

Gregory Fink
Payments Upon Termination
Voluntary Termination
($)
Termination by Employee for Good Reason
($)
Involuntary Termination without Cause
($)
Involuntary Termination
for Cause
($)
Double-Trigger Change of Control Event
($)
Extended Service After Change of Control Event
($)
Severance Payments
195,000
 195,000
 
487,500
(1)
 
COBRA Benefits
11,453
(2)11,453
(2)
28,634
(2)
 
Restricted Stock Units

 
 

 
 
Total
206,453
 206,453
 
516,134
 
 
(1)Represents the amount payable if Mr. Fink were terminated without cause or resigned for good reason on or within 12 months after a change of control.
(2)Represents the amount payable if Mr. Fink elected continuation healthcare coverage under COBRA for the full severance period.


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Carol DiBattiste
Payments Upon Termination
Voluntary Termination
($)
Termination by Employee for Good Reason
($)
Involuntary Termination without Cause
($)
Involuntary Termination
for Cause
($)
Double-Trigger Change of Control Event
($)
Extended Service after Change of Control Event
($)
Severance Payments
192,500
 192,500
 
385,000
(1)
 
COBRA Benefits
3,335
(2)3,335
(2)
6,670
(2)
 
Restricted Stock Units

 
 

 
 
Total
195,835
 195,835
 
391,670
 
 
(1)Represents the amount payable if Ms. DiBattiste were terminated without cause or resigned for good reason on or within 12 months after a change of control.
(2)Represents the amount payable if Ms. DiBattiste elected continuation healthcare coverage under COBRA for the full severance period.

Former Named Executive Officers
Our other named executive officers for 2015, 2016 and 2017 (Mr. Matta, Mr. Wesley, Ms. Lin, Mr. Brown, Mr. Chemerow, Mr. Kay, Dr. Fulgoni and Mr. Meierhoefer) were not serving as executive officers at the end of 2017. With the exception of Mr. Kay, who provides services to us through CrossCountry and is not entitled to any termination benefits fromnet operating loss carryforwards, the Company the named executive officers who were not serving at the end of 2017 entered into separation agreements with the Company as follows.
Serge Matta
Mr. Matta’s employment with the Company ended on October 10, 2016. As described under “Executive Compensation Actions and Decisions for 2016” in the Compensation Discussion and Analysis above, we agreed to the following termination benefits for Mr. Matta: (i) payments equal to his then-current base salary formay have a period of 24 months from his separation date ($992,000 in total); and (ii) payment of premiums for eligible continuation healthcare coverage for the same period (not elected). All payments were and are contingent upon Mr. Matta’s execution and non-revocation of a release of claims, as well as his continued compliance with certain post-employment covenants, including non-disclosure and non-disparagement obligations (with appropriate exceptions for disclosures to government officials or attorneys in connection with a suspected violation of law or regulation), obligations not to compete with the Company or to engage in solicitation during the 12-month period following termination, and obligations to cooperate and assist the Company in any investigation into matters about which Mr. Matta has relevant knowledge.
Melvin Wesley III
Mr. Wesley’s employment with the Company also ended on October 10, 2016. As described under “Executive Compensation Actions and Decisions for 2016” in the Compensation Discussion and Analysis above, we agreed to the following termination benefits for Mr. Wesley: (i) payments equal to his then-current base salary for a period of 15 months from his separation date ($418,000 in total); and (ii) payment of premiums for eligible continuation healthcare coverage for the same period ($9,510). All payments were and are contingent upon Mr. Wesley’s execution and non-revocation of a release of claims, as well as his continued compliance with certain post-employment covenants, including non-disclosure and non-disparagement obligations (with appropriate exceptions for disclosures to government officials or attorneys in connection with a suspected violation of law or regulation), obligations not to compete with the Company or to engage in solicitation during the 12-month period following termination, and obligations to cooperate and assist the Company in any investigation into matters about which Mr. Wesley has relevant knowledge.
Christiana Lin
Ms. Lin’s employment with the Company ended on February 1, 2017. As described under “Executive Compensation Actions and Decisions for 2017” in the Compensation Discussion and Analysis above, we agreed to the following termination benefits for Ms. Lin: (i) payments equal to her then-current base salary for a period of 12 months from her separation date ($347,985 in total); and (ii) payment of premiums for eligible continuation healthcare coverage for the same period ($22,717). All payments were and are contingent upon Ms. Lin’s execution and non-revocation of a release of claims, as well as her continued compliance with certain post-employment covenants, including non-disclosure and non-disparagement obligations (with appropriate exceptions for disclosures to government officials or attorneys in connection with a suspected violation of law or regulation), obligations not to compete with the Company or to engage in solicitation during the 12-month period following termination, and obligations to cooperate and assist the Company in any investigation into matters about which Ms. Lin has relevant knowledge.

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During Ms. Lin’s consulting term, which began on February 2, 2017 and ended on August 2, 2017, Ms. Lin was paid $83,333 per month (totaling $500,000), and her outstanding equity awards continued to vest. The value upon vesting of these awards, based on the market value of the underlying shares on the relevant vesting dates, was $528,703.
Michael Brown
Mr. Brown’s employment with the Company ended on July 7, 2017. As described under “Executive Compensation Actions and Decisions for 2017” in the Compensation Discussion and Analysis above, we agreed to the following termination benefits for Mr. Brown: (i) payments equal to his then-current base salary for a period of 12 months from his separation date ($330,480 in total); and (ii) payment of premiums for eligible continuation healthcare coverage for the same period ($22,907). All payments were and are contingent upon Mr. Brown’s execution and non-revocation of a release of claims, as well as his continued compliance with certain post-employment covenants, including non-disclosure and non-disparagement obligations (with appropriate exceptions for disclosures to government officials or attorneys in connection with a suspected violation of law or regulation), obligations not to compete with the Company or to engage in solicitation during the 12-month period following termination, and obligations to cooperate and assist the Company in any investigation into matters about which Mr. Brown has relevant knowledge.
During Mr. Brown’s consulting term, which began on July 10, 2017 and ended on October 13, 2017, Mr. Brown was paid $50,000 per month (totaling $152,530).
David Chemerow
Mr. Chemerow’s employment with the Company ended on September 8, 2017. As described under “Executive Compensation Actions and Decisions for 2017” in the Compensation Discussion and Analysis above, we agreed to the following termination benefits for Mr. Chemerow: (i) payments equal to his then-current base salary for a period of 15 months from his separation date ($449,514 in total); (ii) payment of premiums for eligible continuation healthcare coverage for up to 18 months ($24,158); (iii) a payment of $100,000 within 30 days after the first to occur of (A) the relisting of our Common Stock, the approval by our stockholders of a new equity plan, and the opening of our trading window for employees, or (B) any entity or person acquiring more than 50 percent of our Common Stock or more than 50 percent of our assets; (iv) a payment of $100,000 on February 1, 2019; and (v) payment of Mr. Chemerow’s attorney fees relating to his separation ($27,474). In addition, Mr. Chemerow is entitled to continued vesting of his outstanding equity awards through August 2020. The value upon vesting of these awards in 2017, based on the market value of the underlying shares on the relevant vesting dates, was $373,200. The potential value upon vesting of these awards in 2018, 2019 and 2020, assuming a value per share of $28.50 (the closing bid price of our Common Stock on the OTC Pink Tier on December 29, 2017), is $890,625.
All payments were and are contingent upon Mr. Chemerow’s execution and non-revocation of a release of claims, as well as his continued compliance with certain post-employment covenants, including non-disclosure and non-disparagement obligations (with appropriate exceptions for disclosures to government officials or attorneys in connection with a suspected violation of law or regulation), obligations not to compete with the Company or to engage in solicitation during the 12-month period following termination, and obligations to cooperate and assist the Company in any investigation into or litigation involving matters about which Mr. Chemerow has relevant knowledge.
Gian Fulgoni
Dr. Fulgoni’s employment with the Company ended on November 13, 2017. As described under “Executive Compensation Actions and Decisions for 2017” in the Compensation Discussion and Analysis above, we agreed to the following termination benefits for Dr. Fulgoni: (i) payment of premiums for eligible continuation healthcare coverage for up to 18 months ($24,180); (ii) vesting in full of all outstanding equity awards on his separation date; and (iii) the issuance of $4,000,000 in fully vested RSUs as compensation for his services as CEO from August 2016 through his separation date, subject to the Company’s compliance with SEC reporting requirements. The value upon vesting of Dr. Fulgoni’s outstanding equity awards on his separation date (which did not include the RSUs described in clause (iii) above), based on the market value of the underlying shares on the relevant vesting date, was $107,230.
All payments were and are contingent upon Dr. Fulgoni’s execution and non-revocation of a release of claims, as well as his continued compliance with certain post-employment covenants, including non-disclosure and non-disparagement obligations (with appropriate exceptions for disclosures to government officials or attorneys in connection with a suspected violation of law or regulation), obligations not to compete with the Company or to engage in solicitation during the 12-month period following termination, and obligations to cooperate and assist the Company in any investigation into matters about which Dr. Fulgoni has relevant knowledge. In addition, the issuance of RSUs as compensation for Dr. Fulgoni’s services as CEO is contingent upon his continued service as a Special Advisor to the Chair of the Board and the CEO through the date of issuance. In the event that either

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(x) the Company, after regaining compliance with SEC reporting requirements (or Dr. Fulgoni’s earlier death or disability), is unable to issue the contemplated RSUs, or (y) we have not issued such RSUs by June 30, 2018, then we are obligated to issue shares of our Common Stock in an equivalent economic amount.
Cameron Meierhoefer
Mr. Meierhoefer stepped down as our Chief Operating Officer on December 6, 2017. He will remain as an employee of the Company, serving as a Special Advisor at his current base salary, until March 30, 2018 (his separation date). We agreed to the following termination benefits for Mr. Meierhoefer: (i) payments equal to his current base salary for a period of 12 months from his separation date ($383,640 in total); (ii) payment of premiums for eligible continuation healthcare coverage for the same period ($22,907); and (iii) a payment of $759,683 on June 30, 2018. All payments are contingent upon Mr. Meierhoefer’s execution and non-revocation of a release of claims, as well as his continued compliance with certain post-employment covenants, including non-disclosure and non-disparagement obligations (with appropriate exceptions for disclosures to government officials or attorneys in connection with a suspected violation of law or regulation), obligations not to compete with the Company or to engage in solicitation during the 12-month period following termination, and obligations to cooperate and assist the Company in any litigation or investigation into matters about which Mr. Meierhoefer has relevant knowledge.
PAY RATIO DISCLOSURE
The information required by Item 402(u) of Regulation S-K is incorporated herein by reference to our definitive proxy statement relating to the annual meeting of stockholders to be held in 2018, to be filed with the SEC no later than 120 days after the end of the fiscal year ended December 31, 2017.
DIRECTOR COMPENSATION
2015 Director Compensation
During 2015, our non-employee directors were eligible to receive an annual cash retainer of $30,000 for their service on the Board of Directors. Our lead independent director (Mr. Henderson) was eligible to receive an additional annual cash retainer of $20,000. Non-employee directors were also eligible to receive annual cash retainers for their service on certain Board committees as set forth below. Cash retainers were paid quarterly in arrears.
Committee Chair Member
Audit$18,000$10,000
Compensation 10,000 5,000
Nominating and Governance 7,500 3,000
Non-employee directors were also eligible to receive an annual restricted stock award having an approximate value of $125,000 at the time of grant. Annual awards were based on a term of July 1 - June 30, with prorated awards for directors who joined after the beginning of a term. Each restricted stock award was scheduled to vest in full on the earliest of (i) the date of the first annual meeting of stockholders following the date of grant, (ii) the anniversary of the last annual meeting of stockholders prior to the date of grant, or (iii) a change in control of the Company.

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The following table sets forth summary information concerning compensation for the non-employee members of our Board in 2015. Employee directors were not compensated for Board service in addition to their regular employee compensation. We reimbursed all directors for reasonable out-of-pocket expenses incurred in the performance of their duties as directors. Such expense reimbursements are not included as a component of compensation in the table below.
Name (1)
Fees Earned or Paid in Cash
($)
Stock Awards (2)
($)
Total
($)
Russell Fradin38,000125,018 (3)163,018
Jeffrey Ganek (4)---
William Henderson73,000125,018 (5)198,018
William Katz42,500125,018 (6)167,518
Ronald Korn48,000125,018 (7)173,018
Joan Lewis (8)40,000187,546 (9)227,546
(1)Table excludes directors Magid Abraham and Gian Fulgoni, who served as executive officers (other than named executive officers) in 2015 and were not compensated for Board service in addition to their regular employee compensation.
(2)Amounts represent the aggregate grant date fair value of stock awards computed in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 718, Compensation-Stock Compensation (“FASB ASC Topic 718”). Assumptions used in the calculation of these amounts are described in Note 13 to the Consolidated Financial Statements included in Item 8 of this 10-K.
(3)Represents a restricted stock grant with a fair value of $125,018 computed in accordance with FASB ASC Topic 718, awarded July 21, 2015. As of December 31, 2015, Mr. Fradin held 2,154 restricted shares of our Common Stock.
(4)Mr. Ganek resigned from the Board effective January 15, 2015 and was not compensated for his Board service in 2015. As of December 31, 2015, Mr. Ganek did not hold any outstanding awards with respect to our Common Stock.
(5)Represents a restricted stock grant with a fair value of $125,018 computed in accordance with FASB ASC Topic 718, awarded July 21, 2015. As of December 31, 2015, Mr. Henderson held 2,154 restricted shares of our Common Stock.
(6)Represents a restricted stock grant with a fair value of $125,018 computed in accordance with FASB ASC Topic 718, awarded July 21, 2015. As of December 31, 2015, Mr. Katz held 2,154 restricted shares of our Common Stock.
(7)Represents a restricted stock grant with a fair value of $125,018 computed in accordance with FASB ASC Topic 718, awarded July 21, 2015. As of December 31, 2015, Mr. Korn held 2,154 restricted shares of our Common Stock.
(8)Ms. Lewis joined the Board on January 15, 2015.
(9)(a) Includes a prorated restricted stock grant with a fair value of $62,528 computed in accordance with FASB ASC Topic 718, awarded January 15, 2015. (b) Includes a restricted stock grant with a fair value of $125,018 computed in accordance with FASB Topic 718, awarded July 21, 2015. As of December 31, 2015, Ms. Lewis held 2,154 restricted shares of our Common Stock.
2016 Director Compensation
During 2016, our non-employee directors were eligible to receive an annual cash retainer of $30,000 for their service on the Board of Directors. Until July 26, 2016, when Ms. Lewis was appointed as our independent Board Chair, our lead independent director (Mr. Henderson) was eligible to receive an additional annual cash retainer of $20,000. On November 18, 2016, the Board appointed Mr. Henderson as Board Chair and approved an annual cash retainer of $120,000 for such position. The Board retroactively applied the Board Chair retainer for Ms. Lewis, who served as Board Chair from July 26, 2016 until her resignation from the Board on November 17, 2016.
Non-employee directors were also eligible to receive annual cash retainers for their service on certain Board committees in 2016, as set forth below. Cash retainers were paid quarterly in arrears.
Committee Chair Member
Audit$18,000$10,000
Compensation 10,000 5,000
Nominating and Governance 7,500 3,000
Non-employee directors were also eligible to receive an annual restricted stock award having an approximate value of $125,000 at the time of grant. Annual awards were based on a term of July 1 - June 30, with prorated awards for directors who joined after the beginning of a term. Each restricted stock award was scheduled to vest in full on the earliest of (i) the date of the first annual meeting of stockholders following the date of grant, (ii) the anniversary of the last annual meeting of stockholders prior to the date of grant, or (iii) a change in control of the Company. In 2016, only the three non-employee directors who joined our Board in connection with the Rentrak merger (Mr. Engel, Ms. Gottesman and Mr. Rosenthal) received restricted stock awards, which were

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prorated for their appointment date in January 2016. As described under Compensation Discussion and Analysis above, we temporarily stopped granting equity awards to our directors and employees later in 2016 as a result of our delay in filing periodic reports with the SEC. Consequently, our other non-employee directors did not receive restricted stock awards in 2016, and Mr. Engel, Ms. Gottesman and Mr. Rosenthal did not receive full restricted stock awards for the year.
Finally, on January 4, 2017, the Board approved supplemental compensation of $120,000 for each of the former co-chairs of the Audit Committee’s investigation subcommittee (Ms. Gottesman and Ms. Lewis) and $60,000 for each of the other investigation subcommittee members (Mr. Fradin, Mr. Henderson and Mr. Rosenthal) for their significant efforts and time spent leading the Audit Committee investigation in 2016.
The following table sets forth summary information concerning compensation for the non-employee members of our Board in 2016. Employee directors were not compensated for Board service in addition to their regular employee compensation. We reimbursed all directors for reasonable out-of-pocket expenses incurred in the performance of their duties as directors. Such expense reimbursements are not included as a component of compensation in the table below.
Name
Fees Earned or Paid in Cash
($)
Stock Awards (1)
($)
Total
($)
Magid Abraham (2)10,380-
(3)10,380
William Engel (4)30,34062,534
(5)92,874
Russell Fradin98,090-
(6)98,090
Patricia Gottesman (7)156,01562,534
(8)218,549
William Henderson138,688-
(9)138,688
William Katz (10)31,125-
(11)31,125
Ronald Korn46,333-
(12)46,333
Joan Lewis (13)192,717-
(14)197,717
Brent Rosenthal (15)98,33362,534
(16)160,867
(1)Amounts represent the aggregate grant date fair value of stock awards computed in accordance with FASB ASC Topic 718. Assumptions used in the calculation of these amounts are described in Note 13 to the Consolidated Financial Statements included in Item 8 of this 10-K.
(2)Dr. Abraham became eligible to receive non-employee director compensation upon his resignation as an employee on July 21, 2016. He resigned from the Board effective December 5, 2016.
(3)As of December 31, 2016, Dr. Abraham did not hold any outstanding awards with respect to our Common Stock.
(4)Mr. Engel joined the Board on January 29, 2016.
(5)Represents a restricted stock grant with a fair value of $62,534 computed in accordance with FASB ASC Topic 718, awarded January 29, 2016. As of December 31, 2016, Mr. Engel held exercisable options with respect to 23,000 shares of our Common Stock and unvested RSUs with respect to 15,191 shares of our Common Stock.
(6)As of December 31, 2016, Mr. Fradin did not hold any outstanding awards with respect to our Common Stock.
(7)Ms. Gottesman joined the Board on January 29, 2016 and resigned from the Board effective November 17, 2016.
(8)Represents a restricted stock grant with a fair value of $62,534 computed in accordance with FASB ASC Topic 718, awarded January 29, 2016. As of December 31, 2016, Ms. Gottesman did not hold any outstanding awards with respect to our Common Stock.
(9)As of December 31, 2016, Mr. Henderson did not hold any outstanding awards with respect to our Common Stock.
(10)Mr. Katz resigned from the Board effective September 30, 2016.
(11)As of December 31, 2016, Mr. Katz did not hold any outstanding awards with respect to our Common Stock.
(12)As of December 31, 2016, Mr. Korn did not hold any outstanding awards with respect to our Common Stock.
(13)Ms. Lewis resigned from the Board effective November 17, 2016.
(14)As of December 31, 2016, Ms. Lewis did not hold any outstanding awards with respect to our Common Stock.
(15)Mr. Rosenthal joined the Board on January 29, 2016.
(16)Represents a restricted stock grant with a fair value of $62,534 computed in accordance with FASB ASC Topic 718, awarded January 29, 2016. As of December 31, 2016, Mr. Rosenthal held exercisable options with respect to 86,974 shares of our Common Stock.

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2017 Director Compensation
During 2017, our non-employee directors were eligible to receive an annual cash retainer of $30,000 for their service on the Board of Directors. Until November 7, 2017, our Board Chair (Mr. Henderson until September 10, 2017, and Ms. Riley from September 10, 2017) was eligible to receive an additional annual cash retainer of $120,000. On November 7, 2017, the Board approved a monthly cash stipend of $33,500 for the Board Chair (Ms. Riley), which temporarily replaced the annual cash retainer for such position. The Board’s approval of the temporary cash stipend was in consideration of the significant increase in responsibilities, heightened oversight and time commitment required of the Board Chairfuture tax liability due to our then-ongoing audit process, efforts to regain compliance with SEC periodic reporting requirements, and CEO transition.foreign tax or state tax requirements.
Non-employee directors were also eligible to receive annual cash retainers for their service on certain Board committees in 2017, as set forth below. Cash retainers were paid quarterly in arrears. The Special Committee was constituted on August 29, 2017, and the CEO Search Committee was constituted on October 24, 2017. Annual cash retainers for the Compensation Committee Chair and the Nominating and Governance Committee Chair were increased on November 7, 2017.Foreign Undistributed Earnings
Committee 
Chair
(pre-Nov. 7)
 Chair
(post-Nov. 7)
 Member
Audit$18,000$N/A$10,000
Compensation 10,000 15,000 5,000
Nominating and Governance 7,500 10,000 3,000
Special 40,000 40,000 40,000
CEO Search 10,000 10,000 10,000
On July 31, 2017, the Board approved a quarterly cash stipend of $50,000 for the Audit Committee Chair (Ms. Riley), which temporarily replaced the annual cash retainer for such position.
As described under Compensation Discussion and Analysis above, we temporarily stopped granting equity awards to our directors and employees in 2016 as a result of our delay in filing periodic reports with the SEC. Consequently, our non-employee directors did not receive any equity awards in 2017.
On November 7, 2017, the Board agreed that each eligible non-employee director would receive an annual RSU award equal to $250,000 divided by the closing market price of our Common Stock on November 7, 2017 ($30.05), subject to the Company regaining compliance with SEC periodic reporting requirements. The RSU awards, when granted, will vest in full on the earliest of (i) June 30, 2018, (ii) the date of our 2018 annual meeting of stockholders, or (iii) a change in control of the Company. The RSU awards will be prorated for directors who joined the Board after July 1, 2017.
Other Compensation
On September 10, 2017, we entered into the following compensatory arrangements in connection with the resignation of Messrs. Engel, Fradin, Henderson and Korn (the “Resigning Directors”) from our Board:
Upon the Company regaining compliance with SEC periodic reporting requirements and having an effective equity plan in place, the issuance and immediate vesting of RSUs with a value of $125,000 at the time of grant, as compensation for each Resigning Director’s service for the 2016-2017 Board term (consistent with our director compensation program for such term);
As compensation for each Resigning Director’s service during the 2017-2018 Board term (through the resignation date), and in consideration for such Resigning Director’s agreement to be available to assist the Company with litigation and other matters through June 30, 2018, (a) payment of $30,000 in cash to each Resigning Director on or prior to September 30, 2017, and (b) issuance of an additional $125,000 in immediately vested RSUs to each Resigning Director upon the Company regaining compliance with SEC periodic reporting requirements and having an effective equity plan in place; and
Acceleration and immediate vesting of 13,503 RSUs previously granted to Mr. Engel for his prior service to Rentrak.
The following table sets forth summary information concerning compensation for the non-employee members of our Board in 2017. Employee directors were not compensated for Board service in addition to their regular employee compensation. We

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reimbursed all directors for reasonable out-of-pocket expenses incurred in the performance of their duties as directors. Such expense reimbursements are not included as a component of compensation in the table below.
Name
Fees Earned or Paid in Cash
($)
Stock
Awards
($)
 
Option
Awards
($)
 
All Other Compensation
($)
 
Total
($)
William Engel (1)17,609

(2)304,881
(3)30,000
(4)352,490
Russell Fradin (5)21,087

 
 30,000
(6)51,087
Lisa Gersh (7)9,096

 
 
 9,096
Mark Harris (8)10,237

 
 
 10,237
William Henderson (9)114,478

 
 30,000
(10)144,478
Jacques Kerrest (11)27,119

 
 
 27,119
Ronald Korn (12)26,609

 
 30,000
(13)56,609
Michelle McKenna-Doyle (14)10,245

 
 
 10,245
Wesley Nichols (15)20,217

 
 
 20,217
Joshua Peirez (16)9,096

 
 
 9,096
Paul Reilly (17)12,976

 
 
 12,976
Susan Riley (18)188,227

 
 
 188,227
Brent Rosenthal47,826

 
(19)
 47,826
Bryan Wiener (20)17,853

 
 
 17,853
(1)Mr. Engel resigned from the Board effective September 10, 2017.
(2)In connection with Mr. Engel’s resignation, we agreed to the acceleration and immediate vesting of 13,503 RSUs previously granted to Mr. Engel for his prior service to Rentrak. We did not recognize incremental expense in connection with the acceleration.
(3)Amount represents incremental expense recognized in the year of termination of service for awards granted in prior years, in connection with an extension of option exercisability for option holders who ceased providing services to the Company prior to our regaining compliance with SEC filing requirements. Assumptions used in the calculation of this amount is described in Note 13 to the Consolidated Financial Statements included in Item 8 of this 10-K. As of December 31, 2017, Mr. Engel held exercisable options with respect to 23,000 shares of our Common Stock.
(4)Amount represents cash payment made in September 2017 in connection with Mr. Engel’s resignation from the Board.
(5)Mr. Fradin resigned from the Board effective September 10, 2017. As of December 31, 2017, Mr. Fradin did not hold any outstanding awards with respect to our Common Stock.
(6)Amount represents cash payment made in September 2017 in connection with Mr. Fradin’s resignation from the Board.
(7)Ms. Gersh joined the Board on June 9, 2017 and resigned from the Board effective September 10, 2017. As of December 31, 2017, Ms. Gersh did not hold any outstanding awards with respect to our Common Stock.
(8)Mr. Harris joined the Board on June 9, 2017 and resigned from the Board effective September 10, 2017. As of December 31, 2017, Mr. Harris did not hold any outstanding awards with respect to our Common Stock.
(9)Mr. Henderson resigned from the Board effective September 10, 2017. As of December 31, 2017, Mr. Henderson did not hold any outstanding awards with respect to our Common Stock.
(10)Amount represents cash payment made in September 2017 in connection with Mr. Henderson’s resignation from the Board.
(11)Mr. Kerrest joined the Board on June 9, 2017. As of December 31, 2017, Mr. Kerrest did not hold any outstanding awards with respect to our Common Stock.
(12)Mr. Korn resigned from the Board effective September 10, 2017. As of December 31, 2017, Mr. Korn did not hold any outstanding awards with respect to our Common Stock.
(13)Amount represents cash payment made in September 2017 in connection with Mr. Korn’s resignation from the Board.
(14)Ms. McKenna-Doyle joined the Board on October 16, 2017. As of December 31, 2017, Ms. McKenna-Doyle did not hold any outstanding awards with respect to our Common Stock.
(15)Mr. Nichols joined the Board on October 3, 2017. As of December 31, 2017, Mr. Nichols did not hold any outstanding awards with respect to our Common Stock.
(16)Mr. Peirez joined the Board on June 9, 2017 and resigned from the Board effective September 10, 2017. As of December 31, 2017, Mr. Peirez did not hold any outstanding awards with respect to our Common Stock.
(17)Mr. Reilly joined the Board on October 3, 2017. As of December 31, 2017, Mr. Reilly did not hold any outstanding awards with respect to our Common Stock.
(18)Ms. Riley joined the Board on June 9, 2017. As of December 31, 2017, Ms. Riley did not hold any outstanding awards with respect to our Common Stock.
(19)As of December 31, 2017, Mr. Rosenthal held exercisable options with respect to 86,974 shares of our Common Stock.
(20)Mr. Wiener joined the Board on October 3, 2017. As of December 31, 2017, Mr. Wiener did not hold any outstanding awards with respect to our Common Stock.


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COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION
Throughout 2015, our Compensation Committee was composed of William Henderson, William Katz and Russell Fradin. In January 2016, Patricia Gottesman joined the Compensation Committee. Ms. Gottesman subsequently resigned as a director and member of the Compensation Committee in November 2016. In October 2016, Mr. Katz also resigned as a director and member of the Compensation Committee. Mr. Henderson and Mr. Fradin continued to serve as members of the Compensation Committee until their resignation as directors and members of the Compensation Committee in September 2017. The Compensation Committee was reconstituted in October 2017, with Paul Reilly, Wesley Nichols, Susan Riley and Brent Rosenthal appointed as members.
No person who served as a member of the Compensation Committee during 2015, 2016 or 2017 was an officer or employee of the Company during such year. Mr. Fradin, who served on the Compensation Committee in each of 2015, 2016 and 2017, previously served as Executive Vice President, Corporate Development of the Company from June 2000 to June 2004.
Dr. Fulgoni, who served as our Chairman Emeritus from March 2014 to August 2016, also served from 2011 to August 2015 as a director of Dynamic Signal, Inc., a social media marketing technology company for which Mr. Fradin also then served as chief executive officer and on its board of directors.

ITEM  12.SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The following table sets forth certain information with respect to beneficial ownership of our Common Stock as of February 15, 2018, by:
each beneficial owner of 5% or more of the outstanding shares of our Common Stock;
each of our current directors;
each of our named executive officers for 2017; and
all of our current directors and executive officers as a group.
Beneficial ownership is determined in accordance with the rules of the SEC. Except as indicated by the footnotes below, we believe, based on the information furnished to us, that the persons and entities named in the table below have sole voting and investment power with respect to all shares of the Common Stock that they beneficially own, subject to applicable community property laws. In computing the number of shares beneficially owned by a person and the percentage ownership of that person, shares of Common Stock subject to options or other rights held by that person that are currently exercisable or exercisable within 60 days of February 15, 2018 are deemed outstanding, but are not deemed outstanding for purposes of computing the percentage ownership of any other person. Unless otherwise indicated, these shares do not include any stock or options awarded after February 15, 2018. A total of 54,689,047 shares of our Common Stock were outstanding as of February 15, 2018. Except as otherwise indicated, the address of each person in this table is c/o comScore, Inc., 11950 Democracy Drive, Suite 600, Reston, Virginia 20190.

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Name and Address of Beneficial OwnerAmount and Nature of Beneficial Ownership (1)Percentage of Common Stock Outstanding
5% or Greater Stockholders:  
WPP plc and affiliated entities (2)11,289,364
20.6%
PRIMECAP Management Company (3)6,067,932
11.1%
   
Directors and Named Executive Officers:  
William Livek, President and Executive Vice Chairman (4)1,025,176
1.9%
Gian Fulgoni, Chairman Emeritus and Former Chief Executive Officer (5)
109,553
*
Gregory Fink, Chief Financial Officer and Treasurer
*
David Kay, Former Interim Chief Financial Officer
*
David Chemerow, Former Chief Financial Officer and Treasurer (6)699,573
1.3%
Carol DiBattiste, General Counsel & Chief Compliance, Privacy and People Officer
*
Michael Brown, Former Chief Technology Officer (7)160,528
*
Christiana Lin, Former General Counsel and Chief Privacy Officer (8)325,672
*
Susan Riley, Board Chair
*
Jacques Kerrest, Director
*
Michelle McKenna-Doyle, Director
*
Wesley Nichols, Director3,000
*
Paul Reilly, Director
*
Brent Rosenthal, Director (9)156,409
*
Bryan Wiener, Director3,000
*
All current directors and executive officers as a group (14 persons) (10)
1,422,373
2.6%
*Represents less than 1% of the outstanding shares of Common Stock.
(1)The information provided in this table is based on Company records, information supplied to us by our executive officers, directors and principal stockholders and information contained in Schedules 13D and 13G and Forms 4 filed with the SEC.
(2)This information is derived solely from the Form 4 filed with the SEC on September 9, 2016. Shares are owned directly by Cavendish Square Holding B.V. (“Cavendish”), which is a wholly-owned subsidiary of WPP plc that WPP plc owns indirectly through a series of holding companies. Includes 3,493,571 shares that were transferred in February and March 2016 to Cavendish by WPP Luxembourg Gamma Three S.a.r.l., a wholly-owned subsidiary of WPP plc that WPP plc owns indirectly through a series of intervening holding companies. WPP plc is an indirect beneficial owner of the reported securities. The address for WPP plc is 27 Farm Street, London, United Kingdom W1J 5RJ. The address for Cavendish is Laan op Zuid 167, 3072 DB Rotterdam, Netherlands.
(3)This information is derived solely from the Schedule 13G/A filed with the SEC on February 27, 2018. PRIMECAP Management Company has sole voting power for 5,143,160 shares and sole dispositive power for 6,067,932 shares. The address for PRIMECAP Management Company is 177 E. Colorado Blvd., 11th Floor, Pasadena, CA 91105.
(4)Includes 602,600 shares subject to options or SARs that are currently exercisable or exercisable as soon as the Company regains compliance with SEC reporting requirements and 6,666 shares subject to vested RSUs (not delivered as of February 15, 2018).
(5)Includes 14,855 shares subject to vested RSUs (not delivered as of February 15, 2018).
(6)Includes 445,912 shares subject to options or SARs that are currently exercisable or exercisable as soon as the Company regains compliance with SEC reporting requirements and 18,750 shares subject to vested RSUs (not delivered as of February 15, 2018).
(7)Includes 103,089 shares subject to options or SARs that are currently exercisable or exercisable as soon as the Company regains compliance with SEC reporting requirements and 19,012 shares subject to vested RSUs (not delivered as of February 15, 2018).
(8)Includes 218,828 shares subject to options or SARs that are currently exercisable or exercisable as soon as the Company regains compliance with SEC reporting requirements and 22,352 shares subject to vested RSUs (not delivered as of February 15, 2018).
(9)Includes 86,974 shares subject to options or SARs that are currently exercisable or exercisable as soon as the Company regains compliance with SEC reporting requirements.
(10)Includes 735,574 shares subject to options or SARs that are currently exercisable or exercisable as soon as the Company regains compliance with SEC reporting requirements, 53,009 shares subject to vested RSUs (not delivered as of February 15, 2018), and 920 shares subject RSUs that are scheduled to vest within 60 days of February 15, 2018.


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EQUITY COMPENSATION PLAN INFORMATION
The following table summarizes our equity compensation plans as of December 31, 2017:
Plan Category 
Number of
Securities to be
Issued Upon
Exercise of
Outstanding
Options,
Warrants and
Rights
(a)
 
Weighted-
Average
Exercise
Price of
Outstanding
Options,
Warrants
and Rights
(b)
 
Number of Securities
Remaining Available
for Future Issuance
Under Equity
Compensation Plans
(Excluding Securities
Reflected in Column (a))
(c)
Equity compensation plans approved by security holders 4,310,414
 $30.21
 
Equity compensation plans not approved by security holders 
 
 
Total 4,310,414
 $30.21
 
In March 2017, our 2007 Equity Incentive Plan reached the end of its ten-year term and expired. We expect to propose a new equity incentive plan for adoption at our next annual meeting of stockholders. As of December 31, 2017,2022, the Company had 5,951,055 shareshas certain foreign subsidiaries with accumulated undistributed earnings. The TCJA allows for a dividend received deduction resulting in no material U.S. federal income tax upon repatriation of these earnings. The Company intends to indefinitely reinvest these earnings, as well as future earnings from its foreign subsidiaries, to fund its international operations and therefore has not accrued any foreign withholding taxes or state income taxes.
Uncertain Tax Positions
For uncertain tax positions, the Company uses a more-likely-than-not recognition threshold based on the technical merits of the tax position taken. Tax positions that wouldmeet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefits determined on a cumulative probability basis, which are more-likely-than-not to be realized upon ultimate settlement in the financial statements. The Company has unrecognized tax benefits, which are tax benefits related to uncertain tax positions which have been available for future issuance under the 2007 Equity Incentive Plan had it not expired.

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ITEM  13.CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
Policies and Procedures for Transactions with Related Parties
Various comScore policies and procedures, including the Code of Business Conduct and Ethics and annual questionnaires completed by all of the Company’s directors and executive officers, require disclosure of transactions or relationships that may constitute conflicts of interest or otherwise require disclosure under applicable SEC rules. In addition, our Board has adopted a written policy and procedures for the review and approval of transactions in which the Company is a participant, the amount involved exceeds $120,000, and one of our directors, executive officers, or a holder of more than five percent of our Common Stock, including any of their immediate family members and any entity owned or controlled by such persons (collectively, “related parties”), has or will have a direct or indirect material interest.
If any related party proposes to enter into any such transaction (a “related party transaction”), our Audit Committee shall consider all of the available material facts and circumstances of the transaction, including: the direct and indirect interests of the related party; the approximate dollar value of the amount involvedbe reflected in the transaction and the dollar value of such related person’s interest in the transaction; whether the transaction was undertaken in the ordinary course of business of the Company; whether the transaction is proposed to be entered into on terms no less favorable to the Company than those reached with an unrelated third party; the purpose of the transaction and potential benefits to the Company; any required public disclosure of the transaction; in the event the related party is a director or nominee for director (or immediate family member of a director or nominee or an entity with which a director or nominee is affiliated), the impactincome tax filings that the transaction will have on that director’s or nominee's independence; and any other information regarding the transaction that would be material to investors in light of the circumstances of such transaction.
Following such consideration and review, if deemed appropriate, the Audit Committee shall approve the related party transaction. Whenever practicable, the reporting, review and approval shall occur prior to entry into the related party transaction. If advance review is not practicable, our Audit Committee may ratify the related party transaction. Prior to the Board’s adoption of a written related party transaction policy, the Audit Committee previously reviewed and approved or ratified related party transactions pursuant to the Audit Committee charter.
Transactions with Related Parties
Other than compensation disclosed under Item 11, “Executive Compensation” in this Annual Report on Form 10-K and the related party transactions described below, we believe there have not been any other related party transactions (as defined above) duringrecognized in the financial statements due to potential adjustments by taxing authorities in the applicable jurisdictions. The Company's liability for unrecognized tax benefits, which include interest and penalties, was $0.6 million for the years ended December 31, 2017, 20162022 and 2021. The remaining unrecognized tax benefits have reduced deferred tax balances. The amount of unrecognized tax benefits that, if recognized, would affect the Company's effective tax rate is $2.0 million as of December 31, 2022, 2021 and 2020 and includes the federal tax benefit of state deductions. The Company anticipates a negligible amount of unrecognized tax benefits will reverse during the next year due to the expiration of statutes of limitation.
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Changes in the Company's unrecognized income tax benefits are as follows:
 As of December 31,
 (In thousands)
202220212020
Beginning balance$2,052 $2,078 $2,400 
Increase related to tax positions of prior years— — 47 
Increase related to tax positions of the current year25 40 51 
Decrease related to tax positions of prior years(22)(20)(5)
Decrease due to lapse in statutes of limitations(29)(46)(415)
Ending balance$2,026 $2,052 $2,078 
The Company recognizes interest and penalties related to income tax matters in income tax expense. As of December 31, 2022 and 2021, accrued interest and penalties on unrecognized tax benefits were $0.2 million and $0.1 million, respectively. The Company or 2015.one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. For income tax returns filed by the Company, the Company is generally no longer subject to U.S. federal examinations by tax authorities for years prior to 2019 or state and local tax examinations by tax authorities for years prior to 2018. The Company is no longer subject to examination by tax authorities in the Netherlands for years prior to 2016. However, tax attribute carryforwards may still be adjusted upon examination by tax authorities.
14.Related Party Transactions
Transactions with WPP
As of December 31, 2017,2022 (based on public filings), WPP owned 19.7%11,319,363 shares of the Company’sCompany's outstanding Common Stock, representing 12.3% of the outstanding Common Stock. InThe Company provides WPP, in the normal course of business, the Company provides WPP and its affiliates with services amongst its different product linesproducts and receives various services from WPP and its affiliates supporting the Company’sCompany's data collection efforts. From April 2015 (when WPP became a holder of more than five percent of our outstanding Common Stock) to December 31, 2015, the Company’s
The Company's results from transactions with WPP, as reflected in the Consolidated Statements of Operations and its affiliates resulted in $(41.4) million of revenue and $2.7 million of expense. In 2016,Comprehensive Loss, are detailed below:
Years Ended December 31,
(In thousands)202220212020
Revenues$11,677 $13,595 $13,315 
Cost of revenues9,391 12,537 10,094 
The Company has the Company’sfollowing balances related to transactions with WPP, as reflected in the Consolidated Balance Sheets:
As of December 31,
(In thousands)20222021
Assets
Accounts receivable, net$825 $3,506 
Liabilities
Accounts payable$2,398 $1,395 
Accrued expenses1,108 740 
Contract liabilities1,132 3,403 
Other non-current liabilities159 1,582 
Transactions with Charter, Qurate and its affiliates resultedPine
Charter, Qurate and Pine each hold 33.3% of the outstanding shares of Preferred Stock, which are entitled to convert into shares of Common Stock and to vote as a single class with the holders of the Common Stock as set forth in $9.7the Certificate of Designations. As of December 31, 2022 (based on public filings), Pine also owned 2,193,088 shares of the Company's outstanding Common Stock, representing 2.4% of the outstanding Common Stock. In addition, Charter, Qurate and Pine each designated two members of the Company's Board in accordance with the Stockholders Agreement.
As of December 31, 2022 and December 31, 2021, Charter, Qurate and Pine each owned 27,509,203 shares of the Company's outstanding Preferred Stock. On June 30, 2022, in accordance with the Certificate of Designations of the Preferred Stock, the Company made cash dividend payments totaling $15.5 million to the holders of revenue and $21.7 millionthe Preferred Stock, representing dividends accrued for the period from June 30, 2021 through June 29, 2022. Accrued dividends to the holders of expense. In 2017,Preferred Stock as of December 31, 2022 totaled $7.9 million. The next scheduled dividend payment date for the Company’s transactionsPreferred Stock is June 30, 2023.
Concurrent with WPP and its affiliates resulted in $13.2 millionthe closing of revenue and $13.3 million of expense.
On April 28, 2016,the Transactions on March 10, 2021, the Company entered into an asset purchase agreement to acquire certain assets of Compete, Inc. (“Compete”a ten-year Data License Agreement ("DLA") with Charter Communications Operating, LLC ("Charter Operating"), an indirect wholly-owned subsidiaryaffiliate of WPP. The Compete assets were acquiredCharter. Under the DLA, Charter Operating will bill the Company for $27.3license fees according to a payment schedule that gradually increases from $10.0 million in cash, netthe first year of a working capital adjustmentthe term to $32.3
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million in the tenth year of the term. The Company entered into a transition services agreement with Compete followingrecognizes expense for the acquisition. For more information, refer to Footnote 3, Business Combinations and Acquisitions oflicense fees ratably over the Notes to Consolidated Financial Statements.
term. On June 26, 2015,November 6, 2022, the Company entered a cancelable five-year agreement with Lightspeed, a WPP subsidiary, to conduct a proof of concept and follow-on program (the "Program") to demonstrate the capability of designing and deploying a program to collect browsing and demographic data for individual participating households.  The Program is designed to be a comprehensive data collection effort across multiple in-home devices (e.g., television, streaming devices, computers, mobile phones, tablets, gaming devices and wearables) monitored via the installation of household internet routers (“Meters”) in panelist households.  The agreement provides, that the Company make annual payments to Lightspeed of approximately $7.0 million. The Meters collect and send the data back to comScore for use in its Total Home Panel product. Under the terms of the Program, Lightspeed is paid to manage the operational aspects of panel recruitment, compliance, inventory management, support and collection of panel demographic data.

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The Company and GroupM Worldwide (“GroupM”), a subsidiary of WPP,Charter Operating entered into an agreement inamendment to the DLA, pursuant to which GroupM agreed to a minimum commitment to purchase the Company will receive license fee credits totaling $7.0 million.
The Company's products over five years Included in the assets acquired in the Rentrak merger were two contractsresults from transactions with WPP wholly owned subsidiaries,Charter and its affiliates, as reflected in the opening balance sheet as Subscription Receivable at the net present value of future anticipated cash flows. The Company has recorded the Subscription Receivable as contra equity within additional paid-in capital on the Consolidated Statements of Stockholders' Equity. As cash is received on these contracts,Operations and Comprehensive Loss, are detailed below:
(In thousands)Year Ended December 31, 2022Year Ended December 31, 2021
Revenues$2,262 $1,849 
Cost of revenues17,580 21,998 
The Company has the Subscription Receivable is reduced byfollowing liability balances related to transactions with Charter and its affiliates, as reflected in the amount of cash received, additional paid-in capital is increased by the amount of cash received and the Company recognizes imputed interest income. Consolidated Balance Sheet:
As ofAs of
(In thousands)December 31, 2022December 31, 2021
Accounts payable$9,693 $5,180 
Accrued expenses3,189 3,377 
Non-current portion of accrued data costs15,471 7,843 
The Company recognized imputed interest income related to these agreements during the years ended 2017, 2016 and 2015revenues of $0.7 million, $1.1$0.9 million and $0.6 million, respectively.
For a discussion of our related party transactions with WPP and its affiliates during 2017, 2016 and 2015, refer to Footnote 17, Related Party Transactions, of the Notes to Consolidated Financial Statements.
Transactions with iHeartMedia
On June 9, 2017, Lisa Gersh was appointed to the Board. At that time, Richard Bressler, the husband of Ms. Gersh, served as President, Chief Operating Officer, Chief Financial Officer and a member of the board of directors of iHeartMedia, Inc., a customer of the Company. In 2017, the Company recognized revenue of $0.4$0.8 million from transactions with iHeartMedia, Inc.Qurate and its affiliates in the normal course of business. Ms. Gersh resigned frombusiness during the Board on September 10, 2017.
Transactions with CrossCountry Consulting
From September 10, 2017 through October 16, 2017, David Kay servedyears ended December 31, 2022 and December 31, 2021, respectively, as Interim Chief Financial Officer and Treasurer of the Company. Mr. Kay is a co-founder and managing partner of CrossCountry Consulting LLC (“CrossCountry”), which has been providing the Company with accounting advisory services, audit preparation support and process improvement services since July 2016. In 2017, the Company incurred expenses of $17.5 million payable to CrossCountry. Mr. Kay ceased serving as Interim Chief Financial Officer and Treasurer effective October 16, 2017 and returned to providing advisory services to the Company through CrossCountry after that date.
Transactions with 360i and Vizeum
On October 3, 2017, Bryan Wiener was appointed to the Board. Mr. Wiener currently serves as Executive Chairman of 360i Network, which includes 360i LLC and its affiliate, Vizeum LLC, each of which are customers of the Company. In 2017, the Company recognized revenue of $0.4 million from transactions with 360i and Vizeumreflected in the normal courseConsolidated Statements of business.Operations and Comprehensive Loss.
TransactionsThe Company had no transactions, other than the issuance of shares of Preferred Stock and related matters, with Pine for the National Football Leagueyears ended December 31, 2022 and December 31, 2021.
On October 16, 2017, Michelle McKenna-Doyle was appointed to the Board. Ms. McKenna-Doyle currently serves as Senior Vice President and Chief Information Officer of the National Football League, a customer of the Company. In 2017, the Company recognized revenue of $0.4 million from transactions with the National Football League in the normal course of business.
Transactions with OKTA
On June 9, 2017, Jacques Kerrest was appointed to the Board. At that time, Frederic Kerrest, the son of Mr. Kerrest, served as Chief Operating Officer of OKTA, Inc. which is a service provider to the Company. In 2017, the Company recognized expense of $0.2 million from transactions with OKTA, Inc. in the normal course of business.
Transactions with Starboard Value LP
On January 16,In 2018, the Company entered into certain agreements with certain funds affiliated with or managed by Starboard, Value LP (collectively, “Starboard”), then a beneficial owner of more than five percent5.0% of the Company’sCompany's outstanding common stock. PursuantCommon Stock. Refer to Footnote 6, Debt, for further information regarding these agreements and the agreements, the Company: (i) issued and soldCompany's issuance of Notes to Starboard $150.0 million in senior secured convertible notes (“Notes”) in exchange for $85.0 million in cash and $65.0 million in shares of Common Stock; (ii) granted to Starboard the option to purchase up to an additional $50.0 million in senior secured convertible notes in exchange for a range of $15.0 million to $35.0 million of Common Stock, at Starboard’s option, and the balance in cash; (iii) agreed to grant Starboard warrants to purchase 250,000 shares of Common Stock; and (iv) has the right to conduct a rights offering, which will be open to all shareholders of the Company, for up to $150.0 million in senior secured convertible notes, and Starboard agreed to enter into one or more backstop commitment agreements by which it will backstop up to $100.0 million of the convertible notes offered in the rights offering.
The Notes mature on January 16, 2022. Interest on the Notes accrues at 6.0% per year through January 30, 2019, and interest will thereafter accrue at a minimum of 4.0% per year and a maximum of 12% per year, based upon the then-applicable conversion premium. The conversion price for the Notes (the “Conversion Price”) is equal to a 30% premium to the volume weighted average trading prices of the Common Stock on each trading day during the ten consecutive trading days commencing on January 16, 2018, subject to a Conversion Price floor of $28.00 per share. In accordance with the foregoing, the Conversion Price was set at $31.29.

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2018. As a result of the aforementionedthese agreements and the transactions contemplated thereby, as of January 16, 2018, Starboard ceased to be a beneficial owner of more than five percent5.0% of the Company’sCompany's outstanding Common Stock.Stock in January 2018. In addition, pursuant to a prior agreement with Starboard, the Company provided Starboard the right to designate certain members to the Company's Board. As of December 31, 2018, Starboard had no remaining right to designate any directors to the Board. The Notes and related financing derivatives were extinguished on March 10, 2021.
Indemnification AgreementsIn the Consolidated Statements of Operations and Comprehensive Loss, the Company recorded interest expense, inclusive of non-cash accretion of issuance discount and deferred financing costs, related to the Notes of $6.6 million and $33.3 million during the year ended December 31, 2021 and 2020, respectively.
In connection with Directorsthe extinguishment of the Notes on March 10, 2021, the Company issued 3,150,000 Conversion Shares to Starboard valued at $9.6 million as discussed in Footnote 6, Debt, which amount was included as a component of loss on extinguishment of debt in the Consolidated Statements of Operations and Executive OfficersComprehensive Loss.
The Company had no outstanding balances related to Starboard as of December 31, 2022 or 2021. The outstanding balances for the Notes, related financing derivatives, and other non-current liabilities as of December 31, 2020 are reflected in the Consolidated Balance Sheet.
15.Organizational Restructuring
On September 29, 2022, the Company communicated a workforce reduction as part of its broader efforts to improve cost efficiency and better align its operating structure and resources with strategic priorities (collectively, the "Restructuring Plan"). In addition to employee terminations, the Restructuring Plan is expected to include the reallocation of commercial and product development resources; reinvestment in and modernization of key technology platforms; consolidation of data storage and processing activities to reduce the Company's data center footprint; and reduction of other operating expenses, including software and facility costs. The Company may also determine to exit certain activities in certain geographic regions in order to more effectively align resources with business priorities. In connection with the Restructuring Plan, which was authorized by the Board on September 19, 2022, the Company will incur certain exit-related costs. These costs are estimated to range between $13 million and $18 million. The Company expects implementation of the Restructuring Plan, including cash payments, to be substantially complete in the fourth quarter of 2023.
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The table below summarizes the balance of the restructuring liability as of December 31, 2022, which is recorded in accrued expenses in the Consolidated Balance Sheets, and the changes in the accrued amounts for the year ended December 31, 2022:
(In thousands)Severance and Related CostsOtherTotal Restructuring Expense
Restructuring expense$4,578 $1,232 $5,810 
Payments(3,357)(1,232)(4,589)
Foreign exchange67 — 67 
Accrued balance as of December 31, 2022$1,288 $— $1,288 

16.Subsequent Events
On February 24, 2023, the Company entered into the 2023 Amendment to its Revolving Credit Agreement. Among other things, the 2023 Amendment (i) increased the minimum Consolidated EBITDA and Consolidated Asset Coverage Ratio financial covenant requirements under the Revolving Credit Agreement, (ii) modified the measurement periods for certain financial covenants contained in the Revolving Credit Agreement, (iii) introduced a minimum liquidity covenant, and (iv) modified the Applicable Rate definition in the Revolving Credit Agreement to increase the Applicable Rate payable on SOFR-based loans to 3.50%.
As modified, the Revolving Credit Agreement requires the Company to maintain:
minimum Consolidated EBITDA (as defined in the Revolving Credit Agreement) of not less than $22.0 million, $24.0 million, $32.0 million and $35.0 million for the most recently ended four fiscal quarter period, tested as of the last day of the fiscal quarters ending on March 31, June 30, September 30 and December 31, 2023, respectively;
a minimum Consolidated Asset Coverage Ratio (as defined in the Revolving Credit Agreement) of not less than 2.0 to 1.0, tested as of the last day of each calendar month through maturity of the Revolving Credit Agreement;
a minimum Consolidated Fixed Charge Coverage Ratio (as defined in the Revolving Credit Agreement) of not less than 1.25 to 1.0 for the most recently ended four fiscal quarter period, tested as of the last day of each fiscal quarter ending on or after March 31, 2024; and
minimum Liquidity (as defined in the Revolving Credit Agreement) of $28.0 million, tested as of the last business day of each calendar month through maturity of the Revolving Credit Agreement.

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ITEM 9.CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.
ITEM 9A.CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
We carried out an evaluation required by the Securities Exchange Act of 1934 (the "Exchange Act"), under the supervision and with the participation of our principal executive officer and our principal financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act, as of December 31, 2022. Based on this evaluation, our principal executive officer and principal financial officer concluded that as of December 31, 2022, these disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC's rules and forms and to provide reasonable assurance that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.
Management's Report on Internal Control over Financial Reporting
Management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rule 13a-15(f) and 15d-15(f) of the Exchange Act. Management, under the supervision and with the participation of our principal executive officer and principal financial officer, assessed the effectiveness of our internal control over financial reporting as of December 31, 2022 based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. As a result of this assessment, management concluded that, as of December 31, 2022, our internal control over financial reporting was effective in providing reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
Deloitte & Touche LLP, an independent registered public accounting firm, has audited the effectiveness of our internal control over financial reporting as of December 31, 2022, and their report is included below. Deloitte & Touche LLP has also audited, and issued an unqualified opinion with respect to, our Consolidated Financial Statements for 2022, which opinion is included in Item 8, "Financial Statements and Supplementary Data," of this 10-K.
Changes in Internal Control over Financial Reporting
Under Exchange Act Rules 13a-15(d) and 15d-15(d), management is required to evaluate, with the participation of our principal executive officer and principal financial officer, any changes in internal control over financial reporting that occurred during each fiscal quarter that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. There were no changes in our internal control over financial reporting during our most recent fiscal quarter that have entered intomaterially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Inherent Limitation on the Effectiveness of Internal Controls
The effectiveness of any system of internal control over financial reporting is subject to inherent limitations, including the exercise of judgment in designing, implementing, operating, and evaluating the controls and procedures, and the inability to eliminate misconduct completely. Accordingly, any system of internal control over financial reporting can only provide reasonable, not absolute, assurance that its objectives will be met. In addition, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. We intend to continue to monitor and upgrade our internal controls as necessary or appropriate for our business, but we cannot assure that such improvements will be sufficient to provide us with effective internal control over financial reporting in future periods.
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the stockholders and the Board of Directors of comScore, Inc.
Opinion on Internal Control over Financial Reporting
We have audited the internal control over financial reporting of comScore, Inc. and subsidiaries (the "Company") as of December 31, 2022, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control - Integrated Framework (2013) issued by COSO.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended December 31, 2022, of the Company and our report dated March 1, 2023, expressed an indemnification agreementunqualified opinion on those financial statements.
Basis for Opinion
The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We are a public accounting firm registered with eachthe PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control over Financial Reporting
A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Deloitte & Touche LLP
McLean, Virginia
March 1, 2023



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ITEM 9B.OTHER INFORMATION
None.
ITEM 9C.DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS
Not applicable.
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PART III
ITEM 10.DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
Certain information regarding our directors and executive officers. The indemnification agreementsofficers required by Item 10 of Part III is set forth in Item 1 of Part I "Business - Executive Officers and our amended and restated certificateDirectors." Other information required by Item 10 of incorporation and bylaws require us to indemnify our directors and officersPart III, including information regarding any material changes to the fullest extent permittedprocess by Delaware law.which security holders may recommend nominees to the Board of Directors, is incorporated by reference to the information that will be included in our Proxy Statement relating to our 2023 Annual Meeting of Stockholders. Information required by Item 10 of Part III regarding our Audit Committee is incorporated by reference to the information that will be included in our Proxy Statement relating to our 2023 Annual Meeting of Stockholders. Information relating to our compliance with Section 16(a) of the Exchange Act is incorporated by reference to the information that will be included in our Proxy Statement relating to our 2023 Annual Meeting of Stockholders.
DIRECTOR INDEPENDENCE
AlthoughWe have adopted a Code of Business Conduct and Ethics that applies to our Common Stock is not currently listedprincipal executive officer, principal financial officer, principal accounting officer or controller, and persons performing similar functions. We have posted the Code of Business Conduct and Ethics on Nasdaq, we have endeavored to continue to operate in accordance with Nasdaq listing standards. To that end, our Board has determined that each of Messrs. Kerrest, Nichols, Reilly, Rosenthal and Wiener and Mses. McKenna-Doyle and Riley is independentinvestor relations website under the heading "Corporate Governance" at www.comscore.com. To the extent permissible under Nasdaq rules, we intend to disclose any amendments to our Code of Business Conduct and Ethics, as well as waivers of the SEC and Nasdaq listing standards. Our Board also determined that each of William Engel, Russell Fradin, Jeffrey Ganek, Lisa Gersh, Patricia Gottesman, Mark Harris, William Henderson, William Katz, Ronald Korn, Joan Lewis and Joshua Peirez was independentprovisions thereof, on our investor relations website under the rules of the SEC and Nasdaq listing standards during his or her service as a director in 2017, 2016 or 2015, as applicable. Therefore, each member of the Audit Committee, Compensation Committee and Nominating and Governance Committee during 2017, 2016 and 2015 was and currently is independent in accordance with those rules and standards. In addition, our Board was composed of a majority of independent directorsheading "Corporate Governance" at all times during 2017, 2016 and 2015. In determining the independence of our directors, our Board considered all transactions in which we and any director had any interest, including those involving payments made by us to companies in the ordinary course of business where any of our directors serve on the board of directors or as a member of the executive management team of such companies.www.comscore.com.


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ITEM 11.EXECUTIVE COMPENSATION
Information required by Item 11 of Part III is incorporated by reference to the information that will be included in our Proxy Statement relating to our 2023 Annual Meeting of Stockholders.
ITEM 12.SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
Information required by Item 12 of Part III is incorporated by reference to the information that will be included in our Proxy Statement relating to our 2023 Annual Meeting of Stockholders.
ITEM 13.CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
Information required by Item 13 of Part III is incorporated by reference to the information that will be included in our Proxy Statement relating to our 2023 Annual Meeting of Stockholders.
ITEM 14.PRINCIPAL ACCOUNTINGACCOUNTANT FEES AND SERVICES
The following table sets forth a summaryInformation required by Item 14 of the fees billed to us byPart III regarding our principal accountant, Deloitte & Touche LLP our independent auditors for professional services for the fiscal year ended 2017. Tax fees were principally for services related to consulting services.
 (In thousands)
    
Name 2017 2016
Audit fees $9,500
 $
Audit-related fees 
 
Tax fees 313
 94
All other fees 
 
Total fees $9,813
 $94
The following table sets forth a summary of the fees billed to us(PCAOB ID No. 34), is incorporated by Ernst & Young LLP, our independent auditors for professional services for the fiscal years ended 2016 and 2015, respectively. All other fees were for attestation and system organization control reports.
 (In thousands)
    
Name 2017 2016
Audit fees $
 $46,675
Audit-related fees 
 
Tax fees 
 
All other fees 68
 171
Total fees $68
 $46,846
All of the services described in the fee tables above were approved by the Audit Committee except for the non-audit fees for Deloitte & Touche LLP as these fees were incurred prior to engaging Deloitte & Touche LLP as the Company's independent auditors for the 2017 audit. The Audit Committee meets regularly with the independent auditors and reviews both audit and non-audit services performed by Ernst & Young LLP and Deloitte & Touche LLP as well as fees charged for such services. The Audit Committee has determined that the provision of the services described above is compatible with maintaining the relevant auditors’ independence in the conduct of their audit functions.
Pre-Approval Policies and Procedures
Our Audit Committee has adopted, and our Board has approved, procedures and conditions pursuant to which services proposed to be performed by our independent auditors should be pre-approved.  Pursuant to its charter, the Audit Committee may delegate pre-approval authority to one or more of its members.  The member to whom such authority is delegated must report, for information purposes, any pre-approval decisionsreference to the Audit Committee at its next scheduled meeting.  The Audit Committee pre-approved all audit, audit-related and other services rendered by Ernst & Young LLP for 2015 and 2016 and by Deloitte & Touche LLP for 2017information that will be included in their capacities as our independent auditors.




Proxy Statement relating to our 2023 Annual Meeting of Stockholders.
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PART IV
ITEM 15.EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
(a) The following documents are filed as part of this Annual Report on Form 10-K:
(1) Financial statements and reports of our independent registered public accounting firms.firm. See (i) Index to Consolidated Financial Statements at Item 8 and (ii) Item 9A of this Annual Report on Form 10-K.
(2) All other schedules, for which provision is made in the applicable accounting regulations of the SEC, are omitted, as the required information is inapplicable or the information is presented in the Consolidated Financial Statements and Notes to Consolidated Financial Statements in Item 8 of this Annual Report on Form 10-K.
(3) Exhibits. The exhibits filed as part of this report are listed under “Exhibits”"Exhibits" at subsection (b) of this Item 15.
(b) Exhibits





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EXHIBIT INDEX


EXHIBITS
Exhibit
No.
Exhibit
Document
Exhibit
No.
3.1
Exhibit
Document
2.1
2.2
2.3
3.1
3.2
3.3
3.4
4.13.5
3.6
3.7
4.1
4.2
4.3
4.24.4
4.3
4.5
4.6
4.7
4.44.8
4.9
4.54.10+
10.1


10.1*10.2
10.2*
10.3*
10.4*

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10.5*10.3
10.6*
10.7
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10.810.4^

10.910.5^
10.6^
10.1010.7
10.1110.8
10.12
10.13
10.14
10.15
10.16
10.17
10.18
10.19
10.20
10.21

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10.2210.9
10.23
10.24
10.2510.10
10.2610.11
10.2710.12
10.28
10.2910.13
10.30
10.31
10.3210.14

10.3310.15
10.16
10.36*

10.37*
10.38*10.17
10.18
10.19
10.39*10.20*
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10.40*10.21*
10.22*
10.23*
10.24*
10.25*
10.26*
10.27*
10.28*
10.29*
10.30
10.31*
10.32*
10.33*
10.34*

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10.41*10.35*
10.36*
10.37*
10.38*
10.39*
10.40*
10.41*
89


10.42*
10.43*

10.44*
10.45*
10.46*
10.47*
10.48*
10.49*
10.45*10.50*
10.46*
10.47
10.48
10.4910.51*
10.5010.52*
21.110.53*
10.54*
10.55*
21.1+

23.123.1+

23.231.1+

31.1
31.231.2+
32.132.1+
32.232.2+
101.1XBRL Instance Document
101.2XBRL Taxonomy Extension Schema Document
101.3XBRL Taxonomy Extension Calculation Linkbase Document
101.4XBRL Taxonomy Extension Definition Linkbase Document
101.5XBRL Taxonomy Extension Label Linkbase Document
101.6XBRL Taxonomy Extension Presentation Linkbase Document
*101.INSXBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCHXBRL Taxonomy Extension Schema Document.
101.CALXBRL Taxonomy Extension Calculation Linkbase Document.
101.DEFXBRL Taxonomy Extension Definition Linkbase Document.
101.LABXBRL Taxonomy Extension Label Linkbase Document.
90


101.PREXBRL Taxonomy Extension Presentation Linkbase Document.
104Cover Page Interactive Data File - the cover page iXBRL tags are embedded within the Inline XBRL document
*Management contract or compensatory plan or arrangement.
+Filed or furnished herewith
^Specific terms in this exhibit (indicated therein by asterisks) have been omitted because such terms are both not material and of the type that the Registrant treats as private and confidential.


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ITEM 16.FORM 10-K SUMMARY
None.

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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
COMSCORE, INC.
By:/s/ Jonathan Carpenter
Jonathan Carpenter
Chief Executive Officer
(Principal Executive Officer)
COMSCORE, INC.
By:/s/ Mary Margaret Curry
By:
/S/ WILLIAM P. LIVEK

Mary Margaret Curry
William P. LivekChief Financial Officer and Treasurer
President and Executive Vice Chairman
(Principal ExecutiveFinancial Officer and Principal Accounting Officer)
March 23, 2018



1, 2023
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Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
 
SignatureTitleDate
/s/ Jonathan CarpenterChief Executive OfficerMarch 1, 2023
Jonathan Carpenter(Principal Executive Officer)
Signature/s/ Mary Margaret CurryTitleDate
/S/ WILLIAM P. LIVEK
President and Executive Vice Chairman and DirectorMarch 23, 2018
William P. Livek(Principal Executive Officer)
/S/ GREGORY FINK
Chief Financial Officer and TreasurerMarch 23, 20181, 2023
Gregory FinkMary Margaret Curry
(Principal Financial Officer and
Principal Accounting Officer)
/S/ SUSAN RILEY
s/ Nana Banerjee
Chair of the Board of DirectorsNon-Executive ChairmanMarch 23, 20181, 2023
Susan RileyNana Banerjee
/S/ GIAN FULGONI
s/ William P. Livek
DirectorNon-Executive Vice ChairmanMarch 23, 20181, 2023
Gian FulgoniWilliam P. Livek
/S/ JACQUES KERREST
s/ Itzhak Fisher
DirectorMarch 23, 20181, 2023
Jacques KerrestItzhak Fisher
/S/ MICHELLE MCKENNA-DOYLE
s/ David Kline
DirectorMarch 23, 20181, 2023
Michelle McKenna-DoyleDavid Kline
/S/ WESLEY NICHOLS
s/ Pierre-Andre Liduena
DirectorMarch 23, 20181, 2023
Wesley NicholsPierre-Andre Liduena
/S/ PAUL REILLY
s/ Kathleen Love
DirectorMarch 23, 20181, 2023
Paul ReillyKathleen Love
/S/ BRENT ROSENTHAL
s/ Marty Patterson
DirectorMarch 23, 20181, 2023
Brent RosenthalMarty Patterson
/S/ BRYAN WIENER
s/ Brent D. Rosenthal
DirectorMarch 23, 20181, 2023
Bryan WienerBrent D. Rosenthal
/s/ Brian WendlingDirectorMarch 1, 2023
Brian Wendling



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