Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2016 | |
Document And Entity Information [Abstract] | |
Document Type | S4 |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2016 |
Trading Symbol | ck0001584423 |
Entity Registrant Name | APX Group Holdings, Inc. |
Entity Central Index Key | 1,584,423 |
Entity Filer Category | Non-accelerated Filer |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets: | |||
Cash and cash equivalents | $ 512 | $ 2,559 | $ 10,807 |
Restricted cash and cash equivalents | 0 | 14,214 | |
Accounts receivable, net | 7,903 | 8,060 | 8,739 |
Inventories | 60,272 | 26,321 | 36,157 |
Prepaid expenses and other current assets | 13,917 | 10,626 | 15,454 |
Total current assets | 82,604 | 47,566 | 85,371 |
Property and equipment, net | 55,169 | 55,274 | 62,790 |
Subscriber acquisition costs, net | 828,294 | 790,644 | 548,073 |
Deferred financing costs, net | 5,948 | 6,456 | 4,071 |
Intangible assets, net | 532,057 | 558,395 | 703,226 |
Goodwill | 836,098 | 834,416 | 841,522 |
Long-term investments and other assets, net | 10,678 | 10,893 | 10,533 |
Total assets | 2,350,848 | 2,303,644 | 2,255,586 |
Current Liabilities: | |||
Accounts payable | 91,535 | 52,207 | 31,324 |
Accrued payroll and commissions | 26,001 | 38,247 | 37,979 |
Accrued expenses and other current liabilities | 76,613 | 35,573 | 28,862 |
Deferred revenue | 35,614 | 34,875 | 33,226 |
Current portion of capital lease obligations | 7,805 | 7,616 | 5,549 |
Total current liabilities | 237,568 | 168,518 | 136,940 |
Notes payable, net | 2,120,217 | 2,118,112 | 1,815,068 |
Revolving credit facility | 36,000 | 20,000 | 20,000 |
Capital lease obligations, net of current portion | 9,827 | 11,171 | 10,655 |
Deferred revenue, net of current portion | 47,241 | 44,782 | 32,504 |
Other long-term obligations | 11,225 | 10,530 | 6,906 |
Deferred income tax liabilities | 8,037 | 7,524 | 9,027 |
Total liabilities | 2,470,115 | 2,380,637 | 2,031,100 |
Commitments and contingencies | |||
Stockholders' (deficit) equity: | |||
Common stock | 0 | 0 | 0 |
Additional paid-in capital | 627,703 | 627,645 | 636,724 |
Accumulated deficit | (717,475) | (672,382) | (393,275) |
Accumulated other comprehensive loss | (29,495) | (32,256) | (18,963) |
Total stockholders' (deficit) equity | (119,267) | (76,993) | 224,486 |
Total liabilities and stockholders' (deficit) equity | $ 2,350,848 | $ 2,303,644 | $ 2,255,586 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | |||
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, authorized | 100 | 100 | 100 |
Common stock, issued | 100 | 100 | 100 |
Common stock, outstanding | 100 | 100 | 100 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | |||||
Recurring revenue | $ 167,446 | $ 145,664 | $ 624,989 | $ 537,695 | $ 460,130 |
Service and other sales revenue | 5,011 | 5,225 | 22,700 | 21,980 | 39,135 |
Activation fees | 1,796 | 1,308 | 6,032 | 4,002 | 1,643 |
Total revenues | 174,253 | 152,197 | 653,721 | 563,677 | 500,908 |
Costs and expenses: | |||||
Operating expenses (exclusive of depreciation and amortization shown separately below) | 57,991 | 51,330 | 228,315 | 202,769 | 164,221 |
Selling expenses | 28,880 | 25,275 | 122,948 | 107,370 | 98,884 |
General and administrative expenses | 30,441 | 28,234 | 107,212 | 126,083 | 97,177 |
Depreciation and amortization | 60,571 | 57,057 | 244,724 | 221,324 | 195,506 |
Restructuring and asset impairment charges | 45 | 0 | 59,197 | ||
Total costs and expenses | 177,928 | 161,896 | 762,396 | 657,546 | 555,788 |
Loss from operations | (3,675) | (9,699) | (108,675) | (93,869) | (54,880) |
Other expenses (income): | |||||
Interest expense | 45,418 | 38,257 | 161,339 | 147,511 | 114,476 |
Interest income | (12) | 0 | (90) | (1,455) | (1,493) |
Other (income) expenses | (5,108) | (40) | 8,832 | (1,779) | (76) |
Gain on 2GIG Sale | (46,866) | ||||
(Loss) income before income tax expenses | (43,973) | (47,916) | (278,756) | (238,146) | (120,921) |
Income tax expense | 1,120 | 130 | 351 | 514 | 3,592 |
Net loss | $ (45,093) | $ (48,046) | $ (279,107) | $ (238,660) | $ (124,513) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||||
Net loss | $ (45,093) | $ (48,046) | $ (279,107) | $ (238,660) | $ (124,513) |
Other comprehensive loss, net of tax effects: | |||||
Foreign currency translation adjustment | 2,761 | (10,578) | (13,293) | (11,333) | (8,558) |
Total other comprehensive gain (loss) | 2,761 | (10,578) | (13,293) | (11,333) | (8,558) |
Comprehensive (loss) income | $ (42,332) | $ (58,624) | $ (292,400) | $ (249,993) | $ (133,071) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity (Deficit) - USD ($) $ in Thousands | Total | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning Balance at Dec. 31, 2012 | $ 679,279 | $ 708,453 | $ (30,102) | $ 928 |
Net loss | (124,513) | (124,513) | ||
Foreign currency translation adjustment | (8,558) | (8,558) | ||
Stock-based compensation | 1,956 | 1,956 | ||
Net worth adjustment | 2,079 | 2,079 | ||
Cash dividends paid | (60,000) | (60,000) | ||
Ending Balance at Dec. 31, 2013 | 490,243 | 652,488 | (154,615) | (7,630) |
Net loss | (238,660) | (238,660) | ||
Foreign currency translation adjustment | (11,333) | (11,333) | ||
Stock-based compensation | 1,936 | 1,936 | ||
Capital contribution | 32,300 | 32,300 | ||
Cash dividends paid | (50,000) | (50,000) | ||
Ending Balance at Dec. 31, 2014 | 224,486 | 636,724 | (393,275) | (18,963) |
Net loss | (279,107) | (279,107) | ||
Foreign currency translation adjustment | (13,293) | (13,293) | ||
Stock-based compensation | 3,121 | 3,121 | ||
Escrow adjustment | (12,200) | (12,200) | ||
Ending Balance at Dec. 31, 2015 | (76,993) | $ 627,645 | $ (672,382) | $ (32,256) |
Foreign currency translation adjustment | 2,761 | |||
Ending Balance at Mar. 31, 2016 | $ (119,267) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||||
Net loss | $ (45,093) | $ (48,046) | $ (279,107) | $ (238,660) | $ (124,513) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||
Amortization of subscriber acquisition costs | 27,386 | 19,391 | 92,994 | 58,730 | 22,214 |
Amortization of customer relationships | 26,972 | 31,458 | 125,451 | 143,578 | 160,424 |
Depreciation and amortization of other intangible assets | 6,213 | 6,208 | 26,279 | 19,016 | 12,868 |
Amortization of deferred financing costs | 2,614 | 2,292 | 9,844 | 9,251 | 8,642 |
Non-cash gain on settlement of Merger-related escrow | (12,200) | ||||
Gain on sale of 2GIG | (46,866) | ||||
(Gain) Loss on sale or disposal of assets | (14) | (118) | (54) | 662 | 263 |
Loss on asset impairment | 3,116 | ||||
Stock-based compensation | 58 | 789 | 3,121 | 1,936 | 1,956 |
Provision for doubtful accounts | 3,980 | 3,557 | 14,924 | 15,656 | 10,360 |
Paid in kind interest income | (1,323) | ||||
Non-cash adjustments to deferred revenue | 0 | 55 | 55 | 181 | 1,181 |
Deferred income taxes | 1,056 | 90 | (41) | (265) | 8,030 |
Restructuring and asset impairment charges | 45 | 0 | 57,682 | ||
Changes in operating assets and liabilities, net of acquisitions and divestiture: | |||||
Accounts receivable | (4,079) | (1,830) | (14,421) | (21,866) | (11,486) |
Inventories | (33,684) | (21,392) | 18,591 | (2,355) | (8,439) |
Prepaid expenses and other current assets | (3,188) | (262) | 1,450 | 746 | 2,407 |
Subscriber acquisition costs - deferred contract costs | (59,665) | (34,655) | (354,867) | (317,538) | (298,328) |
Other assets | 217 | 0 | 160 | ||
Accounts payable | 38,302 | 37,154 | 21,842 | 8,481 | (2,663) |
Accrued expenses and other current liabilities | 25,091 | 21,844 | 18,019 | (10,895) | 22,041 |
Restructuring liability | (1,492) | 0 | |||
Deferred revenue | 2,776 | (203) | 14,971 | 20,589 | 24,356 |
Net cash (used in) provided by operating activities | (12,505) | 16,332 | (255,307) | (309,637) | (218,876) |
Cash flows from investing activities: | |||||
Subscriber acquisition costs - company owned equipment | (63) | (6,846) | (24,740) | (10,580) | (342) |
Capital expenditures | (3,070) | (10,002) | (26,982) | (30,500) | (8,973) |
Proceeds from the sale of capital assets | 926 | 188 | 480 | 964 | 306 |
Proceeds from the sale of 2GIG, net of cash sold | 144,750 | ||||
Net cash used in acquisitions | (18,500) | (4,272) | |||
Acquisition of intangible assets | (235) | (736) | (1,363) | (9,649) | |
Proceeds from insurance claims | 0 | 2,984 | 2,984 | ||
Purchases of short-term investments-other | (60,000) | ||||
Proceeds from sale of short-term investments-other | 60,069 | ||||
Proceeds from note receivable | 22,699 | ||||
Change in restricted cash | 14,214 | 14,375 | (161) | ||
Investment in preferred stock | (3,000) | ||||
Acquisition of other assets | 0 | (67) | (208) | (2,162) | (9,645) |
Net cash (used in) provided by investing activities | (2,442) | (14,479) | (35,615) | (36,284) | 121,663 |
Cash flows from financing activities: | |||||
Proceeds from notes payable | 296,250 | 102,000 | 457,250 | ||
Borrowings from revolving credit facility | 21,000 | 22,500 | 271,000 | 20,000 | 22,500 |
Repayments on revolving credit facility | (5,000) | (10,000) | (271,000) | (50,500) | |
Proceeds from sale of subscriber contracts | 2,261 | ||||
Acquisition of subscriber contracts | (2,277) | ||||
Repayments of capital lease obligations | (1,974) | (2,280) | (6,414) | (6,300) | (7,207) |
Deferred financing costs | 0 | (4,233) | (5,436) | (2,927) | (10,896) |
Payments of dividends | (50,000) | (60,000) | |||
Capital contributions | 32,300 | ||||
Net cash (used in) provided by financing activities | 14,026 | 5,987 | 284,400 | 95,057 | 351,147 |
Effect of exchange rate changes on cash | (1,126) | (601) | (1,726) | (234) | (119) |
Net (decrease) increase in cash | (2,047) | 7,239 | (8,248) | (251,098) | 253,815 |
Cash: | |||||
Beginning of period | 2,559 | 10,807 | 10,807 | 261,905 | 8,090 |
End of period | 512 | 18,046 | 2,559 | 10,807 | 261,905 |
Supplemental cash flow disclosures: | |||||
Income tax paid | 290 | 196 | 485 | ||
Interest paid | 145,647 | 137,908 | 116,802 | ||
Supplemental non-cash investing and financing activities: | |||||
Capital lease additions | 1,147 | 2,027 | 11,002 | 12,040 | 8,905 |
Capital expenditures included within accounts payable and accrued expenses and other current liabilities | 280 | 2,264 | $ 161 | 1,893 | |
Subscriber acquisition costs - company owned assets included within accounts payable and accrued expenses and other current liabilities | $ 1,521 | $ 6,726 | $ 1,719 | $ 27 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | NOTE 1—DESCRIPTION OF BUSINESS APX Group Holdings, Inc. (“Holdings” or “Parent”), and its wholly-owned subsidiaries, (collectively the “Company”), is one of the largest smart home companies in North America. The Company is engaged in the sale, installation, servicing and monitoring of electronic home security and smart home systems, primarily in the United States and Canada. Holdings, which is wholly-owned by APX Parent Holdco, Inc., which is owned by 313 Acquisition, LLC. APX Parent Holdco, Inc. and APX Group Holdings, Inc. have no operations. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | ||
Basis of Presentation and Significant Accounting Policies | NOTE 1—BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Unaudited Interim Financial Statements These unaudited condensed consolidated financial statements and notes should be read in conjunction with the Company’s audited consolidated financial statements and related notes as set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015, as filed with the Securities and Exchange Commission (“SEC”) on March 10, 2016, which is available on the SEC’s website at www.sec.gov. Basis of Presentation During the three months ended March 31, 2015, the Company recorded certain out-of-period adjustments totaling $2.0 million, primarily associated with the timing of the recognition of deferred revenue related to 2014 recurring monitoring services. As a result of these adjustments, recurring revenues increased for the three months ended March 31, 2015 and deferred revenue decreased by $2.0 million, respectively. The Company evaluated the impact of the out-of-period adjustments and determined that they are immaterial to the unaudited condensed consolidated financial statements for the three months ended March 31, 2015. Restructuring and Asset Impairment Charges Use of Estimates Changes in Presentation of Comparative Financial Statements Revenue Recognition— Recurring revenue for the Company’s subscriber contracts is billed in advance, generally monthly, pursuant to the terms of subscriber contracts and recognized ratably over the service period. Costs of providing ongoing recurring services are expensed in the period incurred. Service and other sales revenue is recognized as services are provided or when title to the products and equipment sold transfers to the customer. Contract fulfillment revenue, included in service and other sales, is recognized when payment is received from customers who cancel their contract in-term. Revenue from sales of products that are not part of the basic equipment package is generally recognized upon delivery of products. Activation fees represent upfront one-time charges billed to subscribers at the time of installation and are deferred. These fees are recognized over the estimated customer life of 12 years using a 150% declining balance method, which converts to a straight-line methodology after approximately five years to approximate the anticipated life of the customer. Subscriber Acquisition Costs On the condensed consolidated statement of cash flows, subscriber acquisition costs that are comprised of equipment and related installation costs purchased for or used in subscriber contracts in which the Company retains ownership to the equipment are classified as investing activities and reported as “Subscriber acquisition costs—company owned equipment”. All other subscriber acquisition costs are classified as operating activities and reported as “Subscriber acquisition costs—deferred contract costs” on the condensed consolidated statements of cash flows as these assets represent deferred costs associated with customer contracts. Cash and Cash Equivalents— Restricted Cash and Cash Equivalents Accounts Receivable The changes in the Company’s allowance for accounts receivable were as follows for the periods ended (in thousands): Three Months Ended March 31, 2016 2015 Beginning balance $ 3,541 $ 3,373 Provision for doubtful accounts 3,980 3,557 Write-offs and adjustments (4,499 ) (4,022 ) Balance at end of period $ 3,022 $ 2,908 Inventories Long-lived Assets and Intangibles During the fiscal quarter ended March 31, 2016, the Company adopted guidance issued by the Financial Accounting Standards Board (“FASB”) which provides new standards to determine whether a cloud computing arrangement includes a software license. The guidance requires the company to determine if an internal use software obtained in a cloud hosting arrangement contains a contractual right to take possession of the software and if it is feasible to either run the software on internal hardware or contract with an unrelated vendor to host the software. If both criteria are met, the company will consider the arrangement to include a software license and classify the purchase as an intangible. The company has elected to adopt the guidance prospectively to all arrangements entered into or materially modified after the beginning of 2016. The company did not enter into, or modify, any material arrangements during the fiscal quarter ended March 31, 2016. Long-term Investments Deferred Financing Costs During the fiscal quarter ended March 31, 2016, the Company adopted guidance issued by the FASB requiring debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The Company has applied this retrospectively resulting in a reduction to deferred financing costs, net by $40.2 million as of December 31, 2015 with a corresponding decrease to notes payable, net. Residual Income Plan Stock-Based Compensation Advertising Expense Income Taxes The Company recognizes the effect of an uncertain income tax position on the income tax return at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. The Company’s policy for recording interest and penalties is to record such items as a component of the provision for income taxes. Concentrations of Credit Risk Concentrations of Supply Risk Fair Value Measurement Level 1: Quoted prices in active markets that are accessible at the measurement date for assets and liabilities. Level 2: Observable prices that are based on inputs not quoted in active markets, but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. This hierarchy requires the Company to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value. The Company recognizes transfers between levels of the hierarchy based on the fair values of the respective financial measurements at the end of the reporting period in which the transfer occurred. There were no transfers between levels of the fair value hierarchy during the three months ended March 31, 2016 and 2015. The carrying amounts of the Company’s accounts receivable, accounts payable and accrued and other liabilities approximate their fair values due to their short maturities. Goodwill Foreign Currency Translation and Other Comprehensive Income When intercompany foreign currency transactions between entities included in the consolidated financial statements are of a long term investment nature (i.e., those for which settlement is not planned or anticipated in the foreseeable future) foreign currency translation adjustments resulting from those transactions are included in stockholders’ deficit as accumulated other comprehensive loss. When intercompany transactions are deemed to be of a short term nature, translation adjustments are required to be included in the condensed consolidated statement of operations. Translation gains related to intercompany balances were $4.7 million and $0 for the three months ended March 31, 2016 and 2015, respectively. Letters of Credit New Accounting Pronouncements In March 2016, the FASB issued ASU 2016-08 to clarify the implementation guidance on principal versus agent considerations as it relates to Revenue from Contracts with Customers (Topic 606). This update is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017 and must be applied retrospectively, with early adoption permitted. The Company is evaluating the new guidance and plans to provide additional information about its expected impact at a future date. In March 2016, the FASB issued ASU 2016-07 which eliminates the requirement to retroactively adopt the equity method of accounting when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence. This update is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016 and must be applied prospectively, with early adoption permitted. The Company plans to adopt this update on the effective date and the adoption is not expected to materially impact the consolidated financial statements. In March 2016, the FASB issued ASU 2016-06 to clarify the assessment of contingent put and call options in debt instruments as it relates to Derivatives and Hedging (Topic 815). The amendments in this update clarify the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under the amendments in this update is required to assess the embedded call (put) options solely in accordance with the four-step decision sequence. This update is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016 and must be applied using a modified retrospective approach, with early adoption permitted. The Company plans to adopt this update on the effective date and is not expected to materially impact the consolidated financial statements. In February 2016, the FASB issued ASU 2016-02 to increase transparency and comparability among organizations as it relates to lease assets and lease liabilities. The update requires that lease assets and lease liabilities be recognized on the balance sheet, and that key information about leasing arrangements be disclosed. Prior to this update, GAAP did not require operating leases to be recognized as lease assets and lease liabilities on the balance sheet. This update is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018 and must be applied using a modified retrospective approach, with early adoption permitted. The Company is evaluating the new guidance and plans to provide additional information about its expected impact at a future date. In January 2016, the FASB issued ASU 2016-01 to address certain aspects of the recognition, measurement, presentation, and disclosure of financial instruments. The main provisions of this update require equity investments to be measured at fair value with changes in fair value recognized in earnings, allows a company to value equity investments without a readily determined fair value at cost, less any impairments, and simplifies the assessment of impairments of equity investments without a readily determinable fair value by requiring a qualitative assessment. This update is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. An entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity investments that exist as of the date of adoption of the Update. Early adoption is permitted. The Company is evaluating the new guidance and plans to provide additional information about its expected impact at a future date. In July 2015, the FASB issued ASU 2015-11 to simplify the measurement of inventory. Prior to this update, GAAP required the measurement of inventory at the lower of cost or market, where market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. This update requires that an entity measure inventory at the lower of cost or net realizable value, where net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This guidance is effective for fiscal years beginning after December 15, 2016, and for interim periods within those fiscal years and should be applied prospectively, with early adoption permitted. The Company plans to adopt this update on the effective date and the adoption is not expected to impact the consolidated financial statements. In May 2014, the FASB issued ASU 2014-09 which clarifies the principles used to recognize revenue for all entities. The new guidance requires companies to recognize revenue when it transfers goods or services to a customer in an amount that reflects the consideration to which a company expects to be entitled. Pursuant to ASU 2015-14, the guidance is effective for annual and interim periods beginning after December 15, 2017. The guidance allows for either a “full retrospective” adoption or a “modified retrospective” adoption, with early adoption permitted. The Company is evaluating the new guidance and plans to provide additional information about its expected impact at a future date. | NOTE 2—SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The Company has prepared the accompanying consolidated financial statements pursuant to generally accepted accounting principles in the United States (“GAAP”). Preparing financial statements requires the Company to make estimates and assumptions that affect the amounts that are reported in the consolidated financial statements and accompanying disclosures. Although these estimates are based on the Company’s best knowledge of current events and actions that the Company may undertake in the future, actual results may be different from the Company’s estimates. The results of operations presented herein are not necessarily indicative of the Company’s results for any future period. During the year ended December 31, 2015, the Company recorded certain out-of-period adjustments totaling $2.0 million, primarily associated with the timing of the recognition of deferred revenue related to 2014 recurring monitoring services. As a result of these adjustments, recurring revenues increased for the year ended December 31, 2015 and deferred revenue decreased by $2.0 million, respectively. The Company evaluated the impact of the out-of-period adjustments and determined that they are immaterial to the consolidated financial statements for the year ended December 31, 2015. Restructuring and Asset Impairment Charges Use of Estimates Principles of Consolidation Changes in Presentation of Comparative Financial Statements Revenue Recognition Recurring revenue for the Company’s subscriber contracts are billed in advance, generally monthly, pursuant to the terms of subscriber contracts and recognized ratably over the service period. Costs of providing ongoing recurring services are expensed in the period incurred. Service and other sales revenue is recognized as services are provided or when title to the products and equipment sold transfers to the customer. Contract fulfillment revenue, included in service and other sales, is recognized when payment is received from customers who cancel their contract in-term. Revenue from sales of products that are not part of the basic equipment package is recognized upon delivery of products. Activation fees represent upfront one-time charges billed to subscribers at the time of installation and are deferred. These fees are recognized over the estimated customer life of 12 years using a 150% declining balance method, which converts to a straight-line methodology after approximately five years to approximate the anticipated life of the customer. Through the date of the 2GIG Sale, service and other sales revenue included net recurring services revenue, which was based on back-end services provided by Alarm.com for all panels sold to distributors and direct-sell dealers and subsequently placed in service at end-user locations. The Company received a fixed monthly amount from Alarm.com for each system installed with non-Vivint customers that used the Alarm.com platform. Subscriber Acquisition Costs On the consolidated statement of cash flows, subscriber acquisition costs that are comprised of equipment and related installation costs purchased for or used in subscriber contracts in which the Company retains ownership to the equipment are classified as investing activities and reported as “Subscriber acquisition costs—company owned equipment.” All other subscriber acquisition costs are classified as operating activities and reported as “Subscriber acquisition costs—deferred contract costs” on the consolidated statements of cash flows as these assets represent deferred costs associated with the creation of customer contracts. Cash and Cash Equivalents Restricted Cash and Cash Equivalents Accounts Receivable The changes in the Company’s allowance for accounts receivable were as follows for the periods ended (in thousands): Year ended December 31, 2015 2014 2013 Beginning balance $ 3,373 $ 1,901 $ 2,301 Provision for doubtful accounts 14,924 15,656 10,360 Write-offs and adjustments (14,756 ) (14,184 ) (10,760 ) Balance at end of period $ 3,541 $ 3,373 $ 1,901 Inventories Long-lived Assets and Intangibles Long-term Investments Deferred Financing Costs Residual Income Plan Stock-Based Compensation Advertising Expense Income Taxes The Company recognizes the effect of an uncertain income tax position on the income tax return at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. The Company’s policy for recording interest and penalties is to record such items as a component of the provision for income taxes. Contracts Sold Concentrations of Credit Risk Concentrations of Supply Risk Fair Value Measurement Level 1: Quoted prices in active markets that are accessible at the measurement date for assets and liabilities. Level 2: Observable prices that are based on inputs not quoted in active markets, but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. This hierarchy requires the Company to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value. The Company recognizes transfers between levels of the hierarchy based on the fair values of the respective financial measurements at the end of the reporting period in which the transfer occurred. There were no transfers between levels of the fair value hierarchy during the years ended December 31, 2015 and 2014. The carrying amounts of the Company’s accounts receivable, accounts payable and accrued and other liabilities approximate their fair values due to their short maturities. Goodwill Foreign Currency Translation and Other Comprehensive Income When intercompany foreign currency transactions between entities included in the consolidated financial statements are of a long term investment nature (i.e., those for which settlement is not planned or anticipated in the foreseeable future) foreign currency translation adjustments resulting from those transactions are included in stockholders’ (deficit) equity as accumulated other comprehensive loss. When intercompany transactions are deemed to be of a short term nature, translation adjustments are required to be included in the consolidated statement of operations. Beginning in July 2015, we determined that settlement of these intercompany balances was anticipated and therefore these balances are not considered to be long-term investments and any subsequent translation gains or losses are recorded in income. Translation losses related to intercompany balances were $9.4 million, $0 and $0 for the years ended December 31, 2015, 2014, and 2013, respectively. Letters of Credit New Accounting Pronouncements In July 2015, the Financial Accounting Standards Board issued authoritative guidance to simplify the measurement of inventory. Prior to this update, generally accepted accounting principles required the measurement of inventory at the lower of cost or market, where market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. This update requires that an entity measure inventory at the lower of cost or net realizable value, where net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This guidance is effective for fiscal years beginning after December 15, 2016, and for interim periods within fiscal years beginning after December 15, 2017 and should be applied prospectively, with early adoption permitted. The Company plans to adopt this update on the effective date and is not expected to materially impact the consolidated financial statements. In May 2015, the Financial Accounting Standards Board issued authoritative guidance related to customer’s accounting for fees paid in a cloud computing arrangement and is issued in an attempt to simplify existing generally accepted accounting principles. The update provides guidance to help entities determine whether a cloud computing arrangement includes a software license. This guidance is effective for fiscal years beginning after December 15, 2015, and for interim periods within fiscal years beginning after December 15, 2016 with early adoption permitted. The Company plans to adopt this update on the effective date and is not expected to materially impact the consolidated financial statements. In April 2015, the Financial Accounting Standards Board issued authoritative guidance (“ASU 2015-03”) to simplify the presentation of debt issuance costs. This update requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The guidance is effective for fiscal years beginning after December 15, 2015, and for interim periods within fiscal years beginning after December 15, 2016. Effective January 1, 2016, the Company adopted this standard resulting in a retrospective reduction to deferred financing costs, net by $40.2 million and $48.1 million as of December 31, 2015 and December 31, 2014, respectively, with a corresponding decrease to notes payable, net. This update does not impact the consolidated statements of operations, consolidated statements of comprehensive loss or consolidated statements of cash flows. In August 2014, the Financial Accounting Standards Board issued authoritative guidance which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. This update is effective for fiscal years, and interim periods within those years, beginning on or after December 15, 2016, with early adoption permitted. The Company is evaluating the new guidance and plan to provide additional information about its expected impact at a future date. In May 2014, the Financial Accounting Standards Board issued authoritative guidance which clarifies the principles used to recognize revenue for all entities. The new guidance requires companies to recognize revenue when it transfers goods or services to a customer in an amount that reflects the consideration to which a company expects to be entitled. The guidance is effective for annual and interim periods beginning after December 15, 2017. The guidance allows for either a “full retrospective” adoption or a “modified retrospective” adoption, however early adoption is not permitted. The Company is currently evaluating the impact the adoption of this guidance will have on its consolidated financial statements. |
Restructuring and Asset Impairm
Restructuring and Asset Impairment Charges | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | ||
Restructuring and Asset Impairment Charges | NOTE 13—RESTRUCTURING AND ASSET IMPAIRMENT CHARGES On September 21, 2015, the board of directors of the Company approved a plan to transition the Company’s wireless internet business from a 5Ghz to a 60Ghz-based network technology that provides higher data transmission speeds. The Company will continue to service its existing 5Ghz subscribers. As a result of this transition, the Company discontinued the build-out of additional 5Ghz networks and the installation of new 5Ghz customers. The Company expects the shift to the new technology will begin with a set of 60Ghz test installations in 2016. Restructuring and asset impairment charges for the three months ended March 31, 2016 were as follows (in thousands): Three Months Ended Contract termination costs $ 19 Employee severance and termination benefits 26 Total restructuring and asset impairment charges $ 45 Contract termination costs Employee severance and termination benefits Total Accrued restructuring balance as of December 31, 2015 $ 3,954 $ 321 $ 4,275 Restructuring and impairment charges 19 26 45 Cash payments (1,349 ) (143 ) (1,492 ) Accrued restructuring balance as of March 31, 2016 $ 2,624 $ 204 $ 2,828 The unpaid portion of the restructuring charge is expected to be paid within 12 months and is recorded in accrued expenses and other current liabilities on the consolidated balance sheets as of March 31, 2016. Additional charges may be incurred in the future for facility-related or other restructuring activities as the Company continues to align resources to meet the needs of the business. | NOTE 3—RESTRUCTURING AND ASSET IMPAIRMENT CHARGES During the third quarter of 2015, the board of directors approved a plan to transition the Company’s Wireless Internet business from a 5Ghz to a 60Ghz-based network technology and the Company ceased the build-out of 5Ghz networks and stopped the installation of new customers. The Company expects the shift to the new 60Ghz technology will begin with a set of test installations in 2016. Restructuring and asset impairment charges were as follows (in thousands): Year ended Asset impairments $ 53,228 Contract termination costs 4,767 Employee severance and termination benefits 1,202 Total restructuring and asset impairment charges $ 59,197 During the year ended December 31, 2014, the Company did not incur any restructuring and asset impairment charges. Asset Contract Employee severance and Total Accrued restructuring balance as of December 31, 2014 $ — $ — $ — $ — Restructuring and impairment charges 53,228 4,767 1,202 59,197 Cash payments (10 ) (623 ) (881 ) (1,514 ) Non-cash settlements (53,218 ) (190 ) — (53,408 ) Accrued restructuring balance as of December 31, 2015 $ — $ 3,954 $ 321 $ 4,275 As a result of this transition, the existing 5Ghz network did not reach full deployment as anticipated and the Company has recorded a non-cash asset impairment charge of $53.2 million during the year ended December 31, 2015. The impairment charge included a write down of the Company’s network assets, subscriber acquisition costs, certain intellectual property and goodwill (See Note 10). Assets related to the 5Ghz network were determined to have no fair value and were fully impaired. The Company also recorded cash-based restructuring charges of $6.0 million during the year ended December 31, 2015 related to employee severance and termination benefits as well as the write off of certain vendor contracts. The unpaid portion of the restructuring charge is expected to be paid within 12 months and is recorded in accrued expenses and other current liabilities on the consolidated balance sheets as of December 31, 2015. Additional charges may be incurred in the future for facility-related or other restructuring activities as the Company continues to align resources to meet the needs of the business. |
Business Combination
Business Combination | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Business Combination | NOTE 4—BUSINESS COMBINATION Space Monkey Acquisition On August 25, 2014, the Company’s parent purchased Space Monkey, Inc. (“Space Monkey”), a distributed cloud storage technology solution company, then merged Space Monkey with a wholly-owned subsidiary of the Company. Pursuant to the terms of the merger the Company paid aggregate cash consideration of $15.0 million, of which $1.5 million is held in escrow for indemnification obligations and was settled during 2015. This strategic acquisition was made to support the growth and development of the Company’s smart home platform. The following table summarizes the estimated fair value of the assets acquired and liabilities assumed at the time of acquisition (in thousands): Net assets acquired from Space Monkey $ 404 Deferred tax liability (1,106 ) Intangible assets (See Note 10) 8,300 Goodwill 7,402 Total estimated fair value of the assets acquired and liabilities assumed $ 15,000 During the year ended December 31, 2014, the Company incurred costs associated with the Space Monkey acquisition, which were not material, consisting of accounting, legal and professional fees and payments to employees directly associated with the acquisition. These costs are included in general and administrative expenses in the accompanying consolidated statements of operations. During the year ended December 31, 2015, the Company did not incur any costs associated with the Space Monkey acquisition. Wildfire Acquisition On January 31, 2014, a wholly-owned subsidiary of the Company completed the purchase of certain assets, and assumed certain liabilities, of Wildfire Broadband, LLC (“Wildfire”). Pursuant to the terms of the asset purchase agreement the Company paid aggregate cash consideration of $3.5 million, of which $0.4 million was held in escrow for indemnification obligations and was settled in early 2015. This strategic acquisition was made to provide the Company access to Wildfire’s existing customers, wireless internet infrastructure and know-how. The associated goodwill is deductible for income tax purposes. The following table summarizes the estimated fair value of the assets acquired and liabilities assumed at the time of acquisition (in thousands): Net assets acquired from Wildfire $ 96 Intangible assets (See Note 10) 2,900 Goodwill 504 Total cash consideration $ 3,500 During the year ended December 31, 2014, the Company incurred costs associated with the Wildfire acquisition, which were not material, consisting of accounting, legal and professional fees and payments to employees directly associated with the acquisition. These costs are included in general and administrative expenses in the accompanying audited consolidated statements of operations. During the year ended December 31, 2015, the Company impaired all assets of the Wildfire acquisition as part of the Company’s wireless internet business restructuring (see Note 3). Smartrove Acquisition On May 29, 2013, a wholly-owned subsidiary of the Company, Vivint Wireless, Inc. (“Vivint Wireless”), completed a 100% stock acquisition of Smartrove, Inc (“Smartrove”). Pursuant to the terms of the stock purchase agreement, Vivint Wireless acquired the business for aggregate cash consideration of $4.3 million. This strategic acquisition was made to provide Vivint Wireless with full ownership of certain intellectual property used in its operations. The accompanying consolidated financial statements include the financial position and results of operations of Smartrove as a wholly-owned subsidiary from May 29, 2013. The pro forma impact of Smartrove on the Company’s financial position and results of operations for the year ended December 31, 2013 was immaterial. The associated goodwill is not deductible for income tax purposes. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the time of acquisition (in thousands): Net assets acquired from Smartrove—Cash $ 3 Deferred income tax liability (1,533 ) Intangible assets (See Note 10) 4,040 Goodwill 1,765 Total fair value of the assets acquired and liabilities assumed $ 4,275 During the year ended December 31, 2013, the Company incurred costs associated with the Smartrove Acquisition, which were not material, consisting of accounting, investment banking, legal and professional fees and payments to employees directly associated with the acquisition. These costs are included in general and administrative expenses in the accompanying consolidated statements of operations. During the year ended December 31, 2015, the Company impaired all assets of the Smartrove acquisition as part of the Company’s wireless internet business restructuring (see Note 3). |
Divestiture of Subsidiary
Divestiture of Subsidiary | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestiture of Subsidiary | NOTE 5—DIVESTITURE OF SUBSIDIARY On April 1, 2013, the Company completed the 2GIG Sale. Pursuant to the terms of the 2GIG Sale, Nortek acquired all of the outstanding common stock of 2GIG for aggregate cash consideration of approximately $148.9 million, including cash, working capital and indebtedness adjustments as provided in the stock purchase agreement. In connection with the 2GIG Sale, the Company entered into a five-year supply agreement with 2GIG, pursuant to which they will be the exclusive provider of the Company’s control panel requirements, subject to certain exceptions as provided in the supply agreement. A portion of the net proceeds from the 2GIG Sale was used to repay $44.0 million of outstanding borrowings under the Company’s revolving credit facility. The terms of the indenture governing the 2020 notes (as defined below), the indenture governing the 2019 notes (as defined below) and the credit agreement governing the revolving credit facility, permitted the Company, subject to certain conditions, to distribute all or a portion of the net proceeds from the 2GIG Sale to the Company’s stockholders. In May 2013, the Company distributed a dividend of $60.0 million from such proceeds to stockholders. The Company’s financial position and results of operations include 2GIG through March 31, 2013. The following table summarizes the net gain recognized in connection with this divestiture (in thousands): Adjusted net sale price $ 148,871 2GIG assets (including cash of $3,383), net of liabilities (109,053 ) 2.0 technology, net of amortization 16,903 Other (9,855 ) Net gain on divestiture $ 46,866 |
Long-Term Debt
Long-Term Debt | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Debt Disclosure [Abstract] | ||
Long-Term Debt | NOTE 2—LONG-TERM DEBT On November 16, 2012, APX issued $1.3 billion aggregate principal amount of notes, of which $925.0 million aggregate principal amount of 6.375% senior secured notes due 2019 (the “2019 notes”) mature on December 1, 2019 and are secured on a first-priority lien basis by substantially all of the tangible and intangible assets whether now owned or hereafter acquired by the Company, subject to permitted liens and exceptions, and $380.0 million aggregate principal amount of 8.75% senior notes due 2020 (the “2020 notes”), mature on December 1, 2020. During 2013, APX completed two offerings of additional 2020 notes under the indenture dated November 16, 2012. On May 31, 2013, the Company issued $200.0 million of 2020 notes at a price of 101.75% and on December 13, 2013, APX issued an additional $250.0 million of 2020 notes at a price of 101.50%. During 2014, APX issued an additional $100.0 million of 2020 notes at a price of 102.00%. In October 2015, APX issued $300.0 million aggregate principal amount of 8.875% senior secured notes due 2022 (the “2022 notes” and, together with the 2019 notes and the 2020 notes, the “notes”), pursuant to a note purchase agreement dated as of October 19, 2015 in a private placement exempt from registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”). The 2022 notes will mature on December 1, 2022, unless on September 1, 2020 (the 91st day prior to the maturity of the 2020 notes) more than an aggregate principal amount of $190.0 million of such 2020 notes remain outstanding or have not been refinanced as permitted under the note purchase agreement for the 2022 notes, in which case the 2022 notes will mature on September 1, 2020. The 2022 notes are secured, on a pari passu basis, by the collateral securing obligations under the 2019 notes and the revolving credit facilities, in each case, subject to certain exceptions and permitted liens. The notes are fully and unconditionally guaranteed, jointly and severally by APX and each of APX’s existing restricted subsidiaries that guarantee indebtedness under APX’s revolving credit facility or our other indebtedness. Interest accrues at the rate of 6.375% per annum for the 2019 notes, 8.75% per annum for the 2020 notes and 8.875% per annum for the 2022 notes. Interest on the notes is payable semiannually in arrears on each June 1 and December 1. After December 1, 2015, APX may redeem the 2019 and 2020 notes at the prices and on the terms specified in the applicable indenture. After December 1, 2018, APX may redeem the 2022 notes at the prices and on the terms specified in the note purchase agreement for the 2022 notes. Revolving Credit Facility On November 16, 2012, APX entered into a $200.0 million senior secured revolving credit facility, with a five year maturity. In addition, APX may request one or more term loan facilities, increased commitments under the revolving credit facility or new revolving credit commitments, in an aggregate amount not to exceed $225.0 million. Availability of such incremental facilities and/or increased or new commitments will be subject to certain customary conditions. On June 28, 2013, APX amended and restated the credit agreement to provide for a new repriced tranche of revolving credit commitments with a lower interest rate. Nearly all of the existing tranches of revolving credit commitments was terminated and converted into the repriced tranche, with the unterminated portion of the existing tranche continuing to accrue interest at the original rate. On March 6, 2015, APX amended and restated the credit agreement governing the revolving credit facility to provide for, among other things, (1) an increase in the aggregate commitments previously available to APX thereunder from $200.0 million to $289.4 million (“Revolving Commitments”) and (2) the extension of the maturity date with respect to certain of the previously available commitments. Borrowings under the amended and restated revolving credit facility bear interest at a rate per annum equal to an applicable margin plus, at APX’s option, either (1) the base rate determined by reference to the highest of (a) the Federal Funds rate plus 0.50%, (b) the prime rate of Bank of America, N.A. and (c) the LIBOR rate determined by reference to the costs of funds for U.S. dollar deposits for an interest period of one month, plus 1.00% or (2) the LIBOR rate determined by reference to the London interbank offered rate for dollars for the interest period relevant to such borrowing. The applicable margin for base rate-based borrowings (1)(a) under the Series A Revolving Commitments of approximately $247.5 million and Series C Revolving Commitments of approximately $20.8 million is currently 2.0% per annum and (b) under the Series B Revolving Commitments of approximately $21.2 million is currently 3.0% and (2)(a) the applicable margin for LIBOR rate-based borrowings (a) under the Series A Revolving Commitments and Series C Revolving Commitments is currently 3.0% per annum and (b) under the Series B Revolving Commitments is currently 4.0%. The applicable margin for borrowings under the revolving credit facility is subject to one step-down of 25 basis points based on APX meeting a consolidated first lien net leverage ratio test at the end of each fiscal quarter. Outstanding borrowings under the amended and restated revolving credit facility are allocated on a pro-rata basis between each Series based on the total Revolving Commitments. In addition to paying interest on outstanding principal under the revolving credit facility, APX is required to pay a quarterly commitment fee (which will be subject to one interest rate step-down of 12.5 basis points, based on APX meeting a consolidated first lien net leverage ratio test) to the lenders under the revolving credit facility in respect of the unutilized commitments thereunder. APX also pays customary letter of credit and agency fees. APX is not required to make any scheduled amortization payments under the revolving credit facility. The principal amount outstanding under the revolving credit facility will be due and payable in full on (1) with respect to the non-extended commitments under the Series C Revolving Credit Facility, November 16, 2017 and (2) with respect to the extended commitments under the Series A Revolving Credit Facility and Series B Revolving Credit Facility, March 31, 2019. The Company’s debt at March 31, 2016 consisted of the following (in thousands): Outstanding Principal Unamortized Premium Unamortized Net Carrying Amount Series C Revolving Credit Facility Due 2017 $ 2,592 $ — $ — $ 2,592 Series A, B Revolving Credit Facilities Due 2019 33,408 — — 33,408 6.375% Senior Secured Notes due 2019 925,000 — (18,890 ) 906,110 8.75% Senior Notes due 2020 930,000 6,769 (17,927 ) 918,842 8.875% Senior Secured Notes Due 2022 300,000 (3,607 ) (1,128 ) 295,265 Total Notes payable $ 2,191,000 $ 3,162 $ (37,945 ) $ 2,156,217 The Company’s debt at December 31, 2015 consisted of the following (in thousands): Outstanding Principal Unamortized Premium Unamortized Net Carrying Amount Series C Revolving Credit Facility Due 2017 $ 1,440 $ — $ — $ 1,440 Series A, B Revolving Credit Facilities Due 2019 18,560 — — 18,560 6.375% Senior Secured Notes due 2019 925,000 — (20,182 ) 904,818 8.75% Senior Notes due 2020 930,000 7,060 (18,892 ) 918,168 8.875% Senior Secured Notes due 2022 300,000 (3,704 ) (1,170 ) 295,126 Total Notes payable $ 2,175,000 $ 3,356 $ (40,244 ) $ 2,138,112 | NOTE 6—LONG-TERM DEBT On November 16, 2012, APX issued $1.3 billion aggregate principal amount of notes, of which $925.0 million aggregate principal amount of 6.375% senior secured notes due 2019 (the “2019 notes”) mature on December 1, 2019 and are secured on a first-priority lien basis by substantially all of the tangible and intangible assets whether now owned or hereafter acquired by the Company, subject to permitted liens and exceptions, and $380.0 million aggregate principal amount of 8.75% senior notes due 2020 (the “2020 notes” and together with the 2019 notes, the “notes”), mature on December 1, 2020. During 2013, APX completed two offerings of additional 2020 notes under the indenture dated November 16, 2012. On May 31, 2013, APX issued $200.0 million of 2020 notes at a price of 101.75% and on December 13, 2013, APX issued an additional $250.0 million of 2020 notes at a price of 101.50%. Blackstone Advisory Partners L.P. (“Blackstone Partners”) participated as one of the initial purchasers of the 2020 notes in each of the May 31, 2013 and December 13, 2013 offerings and received approximately $0.2 million and $0.3 million in fees, respectively, at the time of closing. On July 1, 2014, APX issued an additional $100.0 million of 2020 notes. In connection with the issuance, Blackstone Partners participated as one of the initial purchasers of the 2020 notes and received approximately $0.1 million in fees at the time of closing. On October 19, 2015, APX issued $300.0 million aggregate principal amount of 8.875% senior secured notes due 2022 (the “2022 notes’), pursuant to a note purchase agreement dated as of October 19, 2015 in a private placement exempt from registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”). The 2022 notes are fully and unconditionally guaranteed, jointly and severally, on a senior secured basis, by APX and each of APX’s existing restricted subsidiaries that guarantee indebtedness under APX’s revolving credit facility and APX’s existing senior secured notes and senior unsecured notes. APX’s existing and future foreign subsidiaries are not expected to guarantee the 2022 notes. The 2022 notes are secured, on a pari passu basis, by the collateral securing obligations under the APX’s existing senior secured notes and the revolving credit facilities, in each case, subject to certain exceptions and permitted liens. Interest accrues at the rate of 6.375% per annum for the 2019 notes, 8.75% per annum for the 2020 notes and 8.875% per annum for the 2022 notes. Interest on the notes is payable semiannually in arrears on each June 1 and December 1. After December 1, 2015, APX may redeem the notes at the prices and on the terms specified in the applicable indenture. After December 1, 2018, APX may redeem the 2022 notes at the prices and on the terms specified in the note purchase agreement for the 2022 notes. Revolving Credit Facility On November 16, 2012, APX Group Holdings, Inc. and the other guarantors entered into a revolving credit facility in the aggregate principal amount of $200.0 million. On June 28, 2013, the Company amended and restated the credit agreement to provide for a new repriced tranche of revolving credit commitments with a lower interest rate. Nearly all of the existing tranches of revolving credit commitments were terminated and converted into the repriced tranche, with the unterminated portion of the existing tranche continuing to accrue interest at the original rate. On March 6, 2015, APX amended and restated the credit agreement governing the revolving credit facility to provide for, among other things, (1) an increase in the aggregate commitments previously available to APX thereunder from $200.0 million to $289.4 million (“Revolving Commitments”) and (2) the extension of the maturity date with respect to certain of the previously available commitments. Borrowings under the revolving credit facility bear interest at a rate per annum equal to an applicable margin plus, at the Company’s option, either (1) the base rate determined by reference to the highest of (a) the Federal Funds rate plus 0.50%, (b) the prime rate of Bank of America, N.A. and (c) the LIBOR rate determined by reference to the costs of funds for U.S. dollar deposits for an interest period of one month, plus 1.00% or (2) the LIBOR rate determined by reference to the London interbank offered rate for dollars for the interest period relevant to such borrowing. The applicable margin for base rate-based borrowings (1)(a) under the repriced tranche is currently 2.0% per annum and (b) under the former tranche is currently 3.0% and (2)(a) the applicable margin for LIBOR rate-based borrowings (a) under the repriced tranche is currently 3.0% per annum and (b) under the former tranche is currently 4.0%. The applicable margin for borrowings under the revolving credit facility is subject to one step-down of 25 basis points based on the Company meeting a consolidated first lien net leverage ratio test at the end of each fiscal quarter. Outstanding borrowings under the amended and restated revolving credit facility are allocated on a pro-rata basis between each Series based on the total Revolving Commitments. In addition to paying interest on outstanding principal under the revolving credit facility, the Company is required to pay a quarterly commitment fee of 0.50% (which will be subject to one step-down based on the Company meeting a consolidated first lien net leverage ratio test) to the lenders under the revolving credit facility in respect of the unutilized commitments thereunder. The Company also pays customary letter of credit and agency fees. APX is not required to make any scheduled amortization payments under the revolving credit facility. The principal amount outstanding under the revolving credit facility will be due and payable in full on (1) with respect to the non-extended commitments under the Series C Revolving Credit Facility, November 16, 2017 and (2) with respect to the extended commitments under the Series A Revolving Credit Facility and Series B Revolving Credit Facility, March 31, 2019. As of December 31, 2015, we had $264.4 million of availability to incur secured indebtedness under the revolving credit facility (after giving effect to $5.0 million of outstanding letters of credit and $20.0 million of borrowings). The Company’s debt at December 31, 2015 had maturity dates of 2017 and beyond and consisted of the following (in thousands): Outstanding Unamortized Unamortized Net Series C Revolving Credit Facility due 2017 $ 1,440 $ — $ — $ 1,440 Series A, B Revolving Credit Facilities due 2019 18,560 — — 18,560 6.375% Senior Secured Notes due 2019 925,000 — (20,182 ) 904,818 8.75% Senior Notes due 2020 930,000 7,060 (18,892 ) 918,168 8.875% Senior Secured Notes due 2022 300,000 (3,704 ) (1,170 ) 295,126 Total Notes payable $ 2,175,000 $ 3,356 $ (40,244 ) $ 2,138,112 The Company’s debt at December 31, 2014 consisted of the following (in thousands): Outstanding Unamortized Unamortized Net Revolving credit facility due 2017 $ 20,000 $ — $ — $ 20,000 6.375% Senior Secured Notes due 2019 925,000 — (25,316 ) 899,684 8.75% Senior Notes due 2020 930,000 8,155 (22,771 ) 915,384 Total Notes payable $ 1,875,000 $ 8,155 $ (48,087 ) $ 1,835,068 |
Cost Based Investments
Cost Based Investments | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Investments, All Other Investments [Abstract] | ||
Cost Based Investments | NOTE 3—COST BASED INVESTMENTS During the year ended December 31, 2014, the Company entered into a project agreement with a privately-held company (the “Investee”), whereby the Investee will develop technology for the Company. The Company is not required to make any payments to the Investee for developing the above technology, however, the Company is required to pay the Investee a royalty for any sales of product that include the technology once developed. In connection with the project agreement, the Company also entered into an investment agreement with the Investee, whereby the Company will purchase up to a predetermined number of shares of the Investee. The amount of the investment by the Company in the Investee was $0.3 million as of March 31, 2016. The Company could make up to $1.7 million in additional investments in the Investee, subject to the achievement of certain technology development milestones. The Company has determined that the arrangement with the Investee constitutes a variable interest. The Company is not required to consolidate the results of the Investee as the Company is not the primary beneficiary. On February 19, 2014, the Company invested $3.0 million in preferred stock of a privately held company not affiliated with the Company. | NOTE 7—COST BASED INVESTMENTS During the year ended December 31, 2014, the Company entered into a project agreement with a privately-held company (the “Investee”), whereby the Investee will develop technology for the Company. The Company is not required to make any payments to the Investee for developing the above technology, however, the Company is required to pay the Investee a royalty for any sales of product that include the technology once developed. In connection with the project agreement, the Company also entered into an investment agreement with the Investee, whereby the Company will purchase up to a predetermined number of shares of the Investee. The amount of the investment by the Company in the Investee was $0.3 million as of December 31, 2015. The Company could make up to $1.8 million in additional investments in the Investee, subject to the achievement of certain technology development milestones. These additional investments are expected to occur through December 31, 2016. The Company has determined that the arrangement with the Investee constitutes a variable interest. The Company is not required to consolidate the results of the Investee as the Company is not the primary beneficiary. On February 19, 2014, the Company invested $3.0 million in a convertible note (“Convertible Note”) of a privately held company (“Investee”) not affiliated with the Company. The Convertible Note had a stated maturity date of February 19, 2015 and bore interest equal to the greater of (a) 0.5% or (b) annual interest rates established for federal income tax purposes by the Internal Revenue Service. The outstanding principal and accrued interest balance of the Convertible Note converted to preferred stock (“preferred stock”) of the Investee on August 29, 2014, under the terms of the agreement. The Company performs impairment analyses of its cost based investments annually, or more often, when events occur or circumstances change that would, more likely than not, reduce the fair value of the investment below its carrying value. When indicators of impairment do not exist and certain accounting criteria are met, the Company evaluates impairment using a qualitative approach. As of December 31, 2015, no indicators of impairment existed associated with these cost based investments. |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Balance Sheet Components | NOTE 4—BALANCE SHEET COMPONENTS The following table presents balance sheet component balances (in thousands): March 31, 2016 December 31, 2015 Subscriber acquisition costs Subscriber acquisition costs $ 1,024,207 $ 958,261 Accumulated amortization (195,913 ) (167,617 ) Subscriber acquisition costs, net $ 828,294 $ 790,644 Accrued payroll and commissions Accrued payroll $ 15,510 $ 18,071 Accrued commissions 10,491 20,176 Total accrued payroll and commissions $ 26,001 $ 38,247 Accrued expenses and other current liabilities Accrued interest payable $ 58,918 $ 17,153 Loss contingencies 2,154 2,504 Other 15,541 15,916 Total accrued expenses and other current liabilities $ 76,613 $ 35,573 | NOTE 8—BALANCE SHEET COMPONENTS The following table presents balance sheet component balances as of December 31, 2015 and December 31, 2014 (in thousands): December 31, 2015 2014 Subscriber acquisition costs Subscriber acquisition costs $ 958,261 $ 628,739 Accumulated amortization (167,617 ) (80,666 ) Subscriber acquisition costs, net $ 790,644 $ 548,073 Long-term investments and other assets Notes receivable, net of allowance (See Note 16) $ 977 $ 600 Security deposit receivable 6,363 6,606 Investments (See Note 7) 3,486 3,306 Other 67 21 Total long-term investments and other assets, net $ 10,893 $ 10,533 Accrued payroll and commissions Accrued payroll $ 18,071 $ 16,432 Accrued commissions 20,176 21,547 Total accrued payroll and commissions $ 38,247 $ 37,979 Accrued expenses and other current liabilities Accrued interest payable $ 17,153 $ 11,695 Loss contingencies 2,504 9,663 Other 15,916 7,504 Total accrued expenses and other current liabilities $ 35,573 $ 28,862 |
Property and Equipment
Property and Equipment | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | ||
Property and Equipment | NOTE 5—PROPERTY AND EQUIPMENT Property and equipment consisted of the following (in thousands): March 31, 2016 December 31, 2015 Estimated Useful Lives Vehicles $ 26,835 $ 26,935 3 - 5 years Computer equipment and software 23,377 21,702 3 - 5 years Leasehold improvements 17,615 17,434 2 - 15 years Office furniture, fixtures and equipment 12,537 11,776 7 years Buildings 702 702 39 years Construction in process 4,333 3,837 85,399 82,386 Accumulated depreciation and amortization (30,230 ) (27,112 ) Net property and equipment $ 55,169 $ 55,274 Property and equipment includes approximately $19.8 million of assets under capital lease obligations at March 31, 2016 and $20.4 million at December 31, 2015, net of accumulated amortization of $7.5 million and $7.0 million at March 31, 2016 and December 31, 2015, respectively. Depreciation and amortization expense on all property and equipment was $4.0 million and $3.7 million for the three months ended March 31, 2016 and 2015, respectively. Amortization expense relates to assets under capital leases and is included in depreciation and amortization expense. | NOTE 9—PROPERTY AND EQUIPMENT Property and equipment consisted of the following (in thousands): December 31, Estimated 2015 2014 Vehicles $ 26,935 $ 20,728 3-5 years Computer equipment and software 21,702 18,069 3-5 years Leasehold improvements 17,434 13,606 2-15 years Office furniture, fixtures and equipment 11,776 9,089 7 years Buildings 702 702 39 years Wireless Internet Infrastructure — 3,866 3-5 years Construction in process 3,837 12,601 82,386 78,661 Accumulated depreciation and amortization (27,112 ) (15,871 ) Net property and equipment $ 55,274 $ 62,790 Property and equipment includes approximately $20.4 million and $20.9 million of assets under capital lease obligations, net of accumulated amortization of $7.0 million and $4.1 million at December 31, 2015 and 2014, respectively. Construction in process includes $0 and $9.8 million of infrastructure associated with the Wireless business as of December 31, 2015 and 2014, respectively. Depreciation and amortization expense on all property and equipment was $16.9 million, $11.3 million and $9.1 million for the years ended December 31, 2015, 2014 and 2013, respectively. Amortization expense relates to assets under capital leases as included in depreciation and amortization expense. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill and Intangible Assets | NOTE 6—GOODWILL AND INTANGIBLE ASSETS Goodwill As of March 31, 2016 and December 31, 2015, the Company had a goodwill balance of $836.1 million and $834.4 million, respectively. The change in the carrying amount of goodwill during the three months ended March 31, 2016 was the result of foreign currency translation adjustments. Intangible assets, net The following table presents intangible asset balances (in thousands): March 31, 2016 December 31, 2015 Gross Accumulated Net Gross Accumulated Net Estimated Useful Lives Definite-lived intangible assets: Customer contracts $ 967,653 $ (460,040 ) $ 507,613 $ 962,842 $ (430,803 ) $ 532,039 10 years 2GIG 2.0 technology 17,000 (7,918 ) 9,082 17,000 (7,064 ) 9,936 8 years CMS and other technology 7,067 (3,850 ) 3,217 7,067 (3,438 ) 3,629 5 years Space Monkey technology 7,100 (1,138 ) 5,962 7,100 (761 ) 6,339 6 years Patents 7,813 (2,502 ) 5,311 7,524 (2,094 ) 5,430 5 years Non-compete agreements 1,200 (950 ) 250 1,200 (800 ) 400 2-3 years Total definite-lived intangible assets: 1,007,833 (476,398 ) 531,435 1,002,733 (444,960 ) 557,773 Indefinite-lived intangible assets: IP addresses 564 — 564 564 — 564 Domain names 58 — 58 58 — 58 Total Indefinite-lived intangible assets 622 — 622 622 — 622 Total intangible assets, net $ 1,008,455 $ (476,398 ) $ 532,057 $ 1,003,355 $ (444,960 ) $ 558,395 The Company recognized amortization expense related to the capitalized software development costs of $0.3 million during each of the three months ended March 31, 2016 and 2015. Amortization expense related to intangible assets was approximately $29.2 million and $31.6 million for the three months ended March 31, 2016 and 2015, respectively. Estimated future amortization expense of intangible assets, excluding approximately $0.4 million in patents currently in process, is as follows as of March 31, 2016 (in thousands): 2016—Remaining Period $ 87,447 2017 101,340 2018 89,755 2019 78,114 2020 67,351 Thereafter 107,061 Total estimated amortization expense $ 531,068 | NOTE 10—GOODWILL AND INTANGIBLE ASSETS Goodwill The changes in the carrying amount of goodwill for the years ended December 31, 2015 and 2014, were as follows (in thousands): Balance as of January 1, 2014 $ 836,318 Goodwill resulting from Wildfire acquisition 504 Goodwill resulting from Space Monkey acquisition 7,402 Effect of Foreign Currency Translation (2,702 ) Balance as of December 31, 2014 841,522 Goodwill Impaired due to Wireless Restructuring (see Note 3) (2,270 ) Effect of Foreign Currency Translation (4,836 ) Balance as of December 31, 2015 $ 834,416 As of December 31, 2015 and December 31, 2014, the Company had a goodwill balance of $834.4 million and $841.5 million, respectively. In connection with the Wireless Restructuring (See Note 3), the Company fully impaired goodwill related to its Wireless Internet business. The resulting impairment charge of $2.3 million is included in restructuring and asset impairment charges on the consolidated statement of operations during the year ended December 31, 2015. Accumulated impairment losses were $2.3 million and $0 as of December 31, 2015 and December 31, 2014, respectively. The remaining change in the carrying amount of goodwill during the year ended December 31, 2015 was the result of foreign currency translation adjustments. Intangible assets, net The following table presents intangible asset balances as of December 31, 2015 and 2014 (in thousands): December 31, Estimated 2015 2014 Definite-lived intangible assets: Customer contracts $ 962,842 $ 978,776 10 years 2GIG 2.0 technology 17,000 17,000 8 years Patents 7,524 6,518 5 years Space Monkey technology 7,100 7,100 6 years CMS and other technology 7,067 7,067 5 years Non-compete agreements 1,200 2,000 2-3 years Wireless internet technologies — 4,690 2-3 years 1,002,733 1,023,151 Accumulated amortization (444,960 ) (320,198 ) Definite-lived intangible assets, net 557,773 702,953 Indefinite-lived intangible assets: IP addresses 564 214 Domain names 58 59 Total indefinite-lived intangible assets 622 273 Total intangible assets, net $ 558,395 $ 703,226 Identifiable intangible assets acquired by the Company in connection with the Smartrove acquisition consisted of $4.0 million of Smartrove technology and $0.7 million of other related technologies. Identifiable intangible assets acquired by the Company in connection with the Wildfire acquisition were $2.1 million of customer contracts and $0.8 million associated with non-compete agreements entered into by certain former members of Wildfire management. In connection with the Wireless Restructuring (See Note 3), the Company fully impaired the remaining unamortized definite-lived intangible assets related to its Wireless Internet business. The resulting impairment charge of $2.9 million is included in restructuring and asset impairment charges on the consolidated statement of operations during the year ended December 31, 2015. Identifiable intangible assets acquired by the Company in connection with the Space Monkey acquisition were $7.1 million of Space Monkey technology and $1.2 million associated with non-compete agreements entered into by certain former members of Space Monkey management. During the year ended December 31, 2015, the Company acquired $1.4 million of intangibles related to patents, domain names and Internet Protocol (“IP”) addresses. During the years ended December 31, 2015, 2014 and 2013, respectively, the Company recognized $1.3 million, $1.3 million and $0.1 million of amortization expense related to the capitalized software development costs. Amortization expense related to intangible assets was $134.8 million, $151.3 million and $164.2 million for the years ended December 31, 2015, 2014 and 2013, respectively. Estimated future amortization expense of intangible assets, excluding approximately $0.4 million in patents currently in process, is as follows as of December 31, 2015 (in thousands): 2016 $ 116,096 2017 100,808 2018 89,277 2019 77,696 2020 66,984 Thereafter 106,526 Total estimated amortization expense $ 557,387 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | ||
Fair Value Measurements | NOTE 7—FAIR VALUE MEASUREMENTS Cash equivalents and restricted cash equivalents are classified as Level 1 as they have readily available market prices in an active market. As of March 31, 2016 and December 31, 2015 the Company held $1,000 of Money market funds classified as level 1 investments, respectively. The carrying amounts of the Company’s accounts receivable, accounts payable and accrued and other liabilities approximate their fair values due to their short maturities. Components of long-term debt including the associated interest rates and related fair values are as follows (in thousands, except interest rates): March 31, 2016 December 31, 2015 Stated Interest Issuance Face Value Estimated Face Value Estimated 2019 Notes $ 925,000 $ 929,625 $ 925,000 $ 879,906 6.375 % 2020 Notes 930,000 802,125 930,000 756,788 8.75 % 2022 Notes 300,000 304,909 300,000 296,296 8.875 % Total $ 2,155,000 $ 2,036,659 $ 2,155,000 $ 1,932,990 — The fair value of the 2019 notes, the 2020 notes and the 2022 notes was considered a Level 2 measurement as the value was determined using observable market inputs, such as current interest rates, prices observable from less active markets, as well as prices observable from comparable securities. | NOTE 11—FAIR VALUE MEASUREMENTS Cash equivalents and restricted cash equivalents are classified as Level 1 as they have readily available market prices in an active market. As of December 31, 2015 the Company held $1,000 of Money market funds classified as level 1 investments. The following summarizes the financial instruments of the Company, measured at fair value on a recurring basis, based on the valuation approach applied to each class of security as of December 31, 2014 (in thousands): Fair Value Measurement at Reporting Date Using Balance at Quoted Prices (Level 1) Significant (Level 2) Significant (Level 3) Assets: Cash equivalents: Money market funds $ 1 $ 1 $ — $ — Restricted cash equivalents: Money market funds 14,214 14,214 — — Total assets $ 14,215 $ 14,215 $ — $ — The carrying amounts of the Company’s accounts receivable, accounts payable and accrued and other liabilities approximate their fair values due to their short maturities. Components of long-term debt including the associated interest rates and related fair values (in thousands, except interest rates): Issuance December 31, 2015 December 31, 2014 Stated Interest Face Value Estimated Fair Value Face Value Estimated Fair Value 2019 Notes $ 925,000 $ 879,906 $ 925,000 $ 881,063 6.375 % 2020 Notes 930,000 756,788 930,000 792,825 8.75 % 2022 Notes 300,000 296,296 — — 8.875 % Total $ 2,155,000 $ 1,932,990 $ 1,855,000 $ 1,673,888 — The fair value of the 2019 notes, 2020 notes and the 2022 notes was considered a Level 2 measurement as the value was determined using observable market inputs, such as current interest rates as well as prices observable from less active markets. |
Facility Fire
Facility Fire | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Facility Fire | NOTE 12—FACILITY FIRE On March 18, 2014, a fire occurred at a facility leased by the company in Lindon, Utah. This facility contained the Company’s primary inventory warehouse and call center operations. Through December 31, 2015, the Company recognized gross expenses related to the fire of $8.3 million, which were primarily related to impairment of damaged assets and recovery costs to maintain business continuity. As of December 31, 2015, the Company had also received insurance recoveries of $8.8 million, related to the fire damage, $3.0 million of which related to the reconstruction of the facility damaged by the fire, and is included within the Company’s cash flows from investing activities in the consolidated statement of cash flows for the year ended December 31, 2015. Insurance recoveries associated with the reconstruction of the damaged facility exceeded its net book value by $0.5 million. These excess insurance recoveries were included in other income as of December 31, 2014. All probable insurance recoveries have been received as of December 31, 2015. Expenses in excess of insurance recoveries during the year ended December 31, 2015 were immaterial. |
Income Taxes
Income Taxes | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Income Taxes | NOTE 8—INCOME TAXES In order to determine the quarterly provision for income taxes, the Company uses an estimated annual effective tax rate, which is based on expected annual income and statutory tax rates in the various jurisdictions in which the Company operates. Certain significant or unusual items are separately recognized in the quarter during which they occur and can be a source of variability in the effective tax rates from quarter to quarter. The Company’s effective income tax rate for the three months ended March 31, 2016 was approximately negative 2.55%. In computing income tax expense, the Company estimates its annual effective income tax rate jurisdiction by jurisdiction and entity by entity for which tax attributes must be separately considered for the calendar year ending December 31, 2015, excluding discrete items. Each jurisdictional or entity estimated annual tax rate is applied to actual year-to-date pre-tax book income (loss) of each jurisdiction or entity. The Company had no discrete items that affected the calculated income tax benefit or expense for the three months ended March 31, 2016. Both the 2016 and 2015 effective tax rates are less than the statutory rate primarily due to the combination of not recognizing benefit for expected pre-tax losses of the US jurisdiction and recognizing current state income tax expense for minimum state taxes. For 2016, the Company expects to realize a loss before income taxes and expects to record a full valuation allowance against the net deferred tax assets of the consolidated group within the US, Canadian and New Zealand jurisdictions. The Company has recorded tax expense for state and local taxes. A valuation allowance is required when there is significant uncertainty as to the ability to realize the deferred tax assets. Because the realization of the deferred tax assets related to the Company’s net operating losses (NOLs) is dependent upon future income related to domestic and foreign jurisdictional operations that have historically generated losses, management determined that the Company continues to not meet the “more likely than not” threshold that those NOLs will be realized. Accordingly, a valuation allowance is required. A similar history of losses is present in the Company’s Canadian and New Zealand jurisdictions. However, as of March 31, 2016, the deferred tax assets related to the Company’s Canadian and New Zealand jurisdictions’ NOLs are offset by existing deferred income tax liabilities resulting in a net deferred tax liability position in both jurisdictions. | NOTE 13—INCOME TAXES APX Group files a consolidated federal income tax return with its wholly-owned subsidiaries. Income tax provision consisted of the following (in thousands): Year ended December 31, 2015 2014 2013 Current income tax: Federal $ — $ — $ (579 ) State 392 779 (1,351 ) Foreign (1 ) — (145 ) Total 391 779 (2,075 ) Deferred income tax: Federal — (925 ) 8,614 State — (181 ) (1,938 ) Foreign (40 ) 841 (1,009 ) Total (40 ) (265 ) 5,667 Provision for income taxes $ 351 $ 514 $ 3,592 The following reconciles the tax expense computed at the statutory federal rate and the Company’s tax expense (in thousands): Year ended December 31, 2015 2014 2013 Computed expected tax expense $ (94,737 ) $ (81,107 ) $ (41,113 ) State income taxes, net of federal tax effect 259 395 (2,171 ) Foreign income taxes 202 1,645 136 Permanent differences 1,980 2,261 1,215 Change in valuation allowance 92,647 77,320 45,525 Provision for income taxes $ 351 $ 514 $ 3,592 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities were as follows (in thousands): December 31, 2015 2014 Gross deferred tax assets: Net operating loss carryforwards $ 642,391 $ 544,793 Deferred subscriber income 13,722 7,433 Accrued expenses and allowances 15,415 9,474 Purchased intangibles 10,576 4,579 Inventory reserves 9,333 4,156 Property and Equipment 3,257 — Alternative minimum tax credit and research and development credit 41 41 Valuation allowance (234,771 ) (139,585 ) 459,964 430,891 Gross deferred tax liabilities: Deferred subscriber acquisition costs (466,783 ) (437,595 ) Property and equipment — (1,715 ) Prepaid expenses (705 ) (644 ) (467,488 ) (439,954 ) Net deferred tax liabilities $ (7,524 ) $ (9,063 ) The long-term portion of the net deferred tax liability was approximately $7.5 million and $9.0 million at December 31, 2015 and 2014, respectively. The current portion of the net deferred tax liability was approximately $0 and $36,000 at December 31, 2015 and 2014, respectively, and is included in accrued expenses and other liabilities on the Company’s Consolidated Balance Sheet as of December 31, 2014. The Company had net operating loss carryforwards as follows (in thousands): December 31, 2015 2014 Net operating loss carryforwards: United States $ 1,695,386 $ 1,355,632 State 1,338,742 1,301,462 Canada 28,629 30,688 New Zealand 5,518 4,203 U.S. and state net operating loss carryforwards will begin to expire in 2026, if not used. Included in both the U.S. and state net operating loss carryforwards are approximately $11.5 million and $11.5 million at December 31, 2015 and 2014, respectively of net operating loss carryforwards for which a benefit will be recorded in Additional Paid in Capital when realized. The Company had U.S. research and development credits of approximately $41,000 at December 31, 2015, and December 31, 2014, which begin to expire in 2030. Canadian net operating loss carryforwards will begin to expire in 2029. Realization of the Company’s net operating loss carryforwards and tax credits is dependent on generating sufficient taxable income prior to their expiration. Although a portion of these carryforwards are subject to the provisions of Internal Revenue Code Section 382, we have not performed a formal study to determine the amount of the limitation. The use of the net operating loss carryforwards may have additional limitations resulting from future ownership changes or other factors under Section 382 of the Internal Revenue Code. The Company has considered and weighed the available evidence, both positive and negative, to determine whether it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. Based on available information, management does not believe it is more likely than not that its deferred tax assets will be utilized. Accordingly, the Company has established a valuation allowance to the extent of and equal to the net deferred tax assets. The Company recorded a valuation allowance for U.S. deferred tax assets of approximately $234.8 million and $139.4 million at December 31, 2015 and 2014, respectively. In addition to the change in valuation allowance from operations, the valuation allowance changes include impact of acquisition and disposition related items. As of December 31, 2015, the Company’s income tax returns for the tax years 2012 through 2015, remain subject to examination by the Internal Revenue Service and state authorities. The Company’s income tax returns for the years ended December 31, 2012 and December 31, 2013 are currently under examination by the Internal Revenue Service. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Stock-Based Compensation | NOTE 9—STOCK-BASED COMPENSATION 313 Incentive Units The Company’s indirect parent, 313 Acquisition LLC (“313”), which is owned by Blackstone, has authorized the award of profits interests, representing the right to share a portion of the value appreciation on the initial capital contributions to 313 (“Incentive Units”). In March 2015, a total of 4,315,106 Incentive Units previously issued to the Company’s Chief Executive Officer and President were voluntarily relinquished. The Company recorded all unrecognized stock-based compensation associated with such Incentive Units at the time the Incentive Units were relinquished. As of March 31, 2016, 73,962,836 Incentive Units had been awarded to current and former members of senior management and a board member, of which 42,169,456 were outstanding to the Company’s Chief Executive Officer and President. The Incentive Units are subject to time-based and performance-based vesting conditions, with one-third subject to ratable time-based vesting over a five year period and two-thirds subject to the achievement of certain investment return thresholds by The Blackstone Group, L.P. and its affiliates (“Blackstone”). The Company has not recorded any expense related to the performance-based portion of the awards, as the achievement of the vesting condition is not yet deemed probable. The fair value of stock-based awards is measured at the grant date and is recognized as expense over the employee’s requisite service period. The grant date fair value was determined using a Monte Carlo simulation valuation approach with the following assumptions: expected volatility of 65%; expected exercise term from 5 to 6.0 years; and risk-free rate of 1.88% to 2.03%. Vivint Stock Appreciation Rights The Company’s subsidiary, Vivint Group, Inc. (“Vivint Group”), has awarded Stock Appreciation Rights (“SARs”) to various levels of key employees, pursuant to an omnibus incentive plan. The purpose of the SARs is to attract and retain personnel and provide an opportunity to acquire an equity interest of Vivint Group. The SARs are subject to time-based and performance-based vesting conditions, with one-third subject to ratable time-based vesting over a five year period and two-thirds subject to the achievement of certain investment return thresholds by 313. The Company has not recorded any expense related to the performance-based portion of the awards, as the achievement of the vesting condition is not yet deemed probable. In connection with this plan, 17,558,111 SARs were outstanding as of March 31, 2016. In addition, 53,621,143 SARs have been set aside for funding incentive compensation pools pursuant to long-term incentive plans established by the Company. On April 1, 2015, a new plan was created and all issued and outstanding Vivint, Inc. (“Vivint”) SARs were re-granted and all reserved SARs were converted under the new Vivint Group plan. The Company assessed the conversion of the SARs as a modification of equity instruments. The restructuring did not change the fair value of the existing awards and as such, no incremental compensation expense was incurred as a result of the restructuring. The fair value of the Vivint Group awards is measured at the grant date and is recognized as expense over the employee’s requisite service period. The fair value is determined using a Black-Scholes option valuation model with the following assumptions: expected volatility varies from 65% to 70%, expected dividends of 0%; expected exercise term between 1.91 and 6.50 years; and risk-free rates between 0.52% and 2.07%. Due to the lack of historical exercise data, the Company used the simplified method in determining the estimated exercise term, for all Vivint Group awards. Wireless Stock Appreciation Rights The Company’s subsidiary, Vivint Wireless, has awarded SARs to various key employees, pursuant to an omnibus incentive plan. The purpose of the SARs is to attract and retain personnel and provide an opportunity to acquire an equity interest of Vivint Wireless. The SARs are subject to a five year time-based ratable vesting period. In connection with this plan, 17,500 SARs were outstanding as of March 31, 2016. The Company does not intend to issue any additional Wireless SARs. The fair value of the Vivint Wireless awards is measured at the grant date and is recognized as expense over the employee’s requisite service period. The fair value is determined using a Black-Scholes option valuation model with the following assumptions: expected volatility of 65%, expected dividends of 0%; expected exercise term between 5.97 and 6.46 years; and risk-free rates between 1.73% and 1.81%. Due to the lack of historical exercise data, the Company used the simplified method in determining the estimated exercise term, for all Vivint Wireless awards. Stock-based compensation expense in connection with all stock-based awards is presented as follows (in thousands): Three Months Ended March 31, 2016 2015 Operating expenses $ 14 $ 14 Selling expenses (294 ) 33 General and administrative expenses 338 742 Total stock-based compensation $ 58 $ 789 Stock-based compensation expense presented in selling expenses was negative for the quarter due to a retrospective adjustment in the grant-date fair value of a series of stock-based awards. | NOTE 14—STOCK-BASED COMPENSATION 313 Incentive Units The Company’s indirect parent, 313 Acquisition LLC (“313”), which is wholly owned by the Investors, has authorized the award of profits interests, representing the right to share a portion of the value appreciation on the initial capital contributions to 313 (“Incentive Units”). As of December 31, 2015, a total of 73,962,836 Incentive Units had been awarded to current and former members of senior management and a board member, of which 42,169,456 were issued to the Company’s Chief Executive Officer and President. The Incentive Units are subject to time-based and performance-based vesting conditions, with one-third subject to ratable time-based vesting over a five year period and two-thirds subject to the achievement of certain investment return thresholds by The Blackstone Group, L.P. and its affiliates (“Blackstone”). The Company has not recorded any expense related to the performance-based portion of the awards, as the achievement of the vesting condition is not yet deemed probable. The fair value of stock-based awards is measured at the grant date and is recognized as expense over the employee’s requisite service period. The grant date fair value was determined using a Monte Carlo simulation valuation approach with the following assumptions: expected volatility of 65%; expected exercise term from 5 to 6 years; and risk-free rate of 1.88% to 2.03%. A summary of the Incentive Unit activity for the years ended December 31, 2015 and 2014 is presented below: Incentive Units Weighted Average Per Share Weighted Average Life (Years) Aggregate Outstanding, December 31, 2013 68,459,562 $ 1.00 9.12 $ 20,537,869 Granted 7,375,000 1.30 Forfeited (1,306,620 ) 1.00 Exercised — — Outstanding, December 31, 2014 74,527,942 $ 1.03 8.19 $ 20,145,882 Granted 3,850,000 2.40 Forfeited (4,415,106 ) 1.03 Exercised — — Outstanding, December 31, 2015 73,962,836 $ 1.06 7.31 $ 104,562,869 Unvested shares expected to vest after December 31, 2015 59,474,350 $ 1.06 7.34 $ 83,642,766 Exercisable at December 31, 2015 14,488,486 $ 1.03 7.18 $ 20,920,103 As of December 31, 2015, there was $3.9 million of unrecognized compensation expense related to outstanding Incentive Units, which will be recognized over a weighted-average period of 2.1 years. As of December 31, 2015 and 2014, the weighted average grant date fair value of the outstanding incentive units was $0.38 and $0.33, respectively. Vivint Stock Appreciation Rights The Company’s subsidiary, Vivint Group, Inc. (“Vivint Group”), has awarded Stock Appreciation Rights (“SARs”) to various levels of key employees. The purpose of the SARs is to attract and retain personnel and provide an opportunity to acquire an equity interest of Vivint Group. The SARs are subject to time-based and performance-based vesting conditions, with one-third subject to ratable time-based vesting over a five year period and two-thirds subject to the achievement of certain investment return thresholds by 313. The Company has not recorded any expense related to the performance-based portion of the awards, as the achievement of the vesting condition is not yet deemed probable. In connection with this plan, 18,664,137 SARs were outstanding as of December 31, 2015. In addition, 53,621,143 SARs have been set aside for funding incentive compensation pools pursuant to long-term incentive plans established by the Company. On April 1, 2015, a new plan was created and all issued and outstanding Vivint, Inc. (“Vivint”) SARs were re-granted and all reserved SARs were converted under the new Vivint Group plan. The Company assessed the conversion of the SARs as a modification of equity instruments. The restructuring did not change the fair value of the existing awards and as such, no incremental compensation expense was incurred as a result of the restructuring. The fair value of the Vivint Group awards is measured at the grant date and is recognized as expense over the employee’s requisite service period. The fair value is determined using a Black-Scholes option valuation model with the following assumptions: expected volatility varies from 65% to 70%, expected dividends of 0%; expected exercise term between 1.91 and 6.50 years; and risk-free rates between 0.52% and 2.07%. Due to the lack of historical exercise data, the Company used the simplified method in determining the estimated exercise term, for all Vivint Group awards. A summary of the SAR activity for the years ended December 31, 2015 and 2014 is presented below: Stock Appreciation Weighted Average Per Share Weighted Average Life (Years) Aggregate Outstanding, December 31, 2013 7,906,250 $ 1.00 9.55 $ 2,371,875 Granted 1,290,000 1.30 Forfeited (2,499,590 ) 1.04 Exercised — — Outstanding, December 31, 2014 6,696,660 $ 1.04 8.62 $ 1,734,748 Converted 3,259,934 0.70 8.62 Granted 11,186,936 1.03 Forfeited (2,307,172 ) 0.80 Exercised (172,221 ) 0.68 Outstanding, December 31, 2015 18,664,137 $ 0.87 8.66 $ 3,628,498 Unvested shares expected to vest after December 31, 2015 16,956,220 $ 0.89 8.79 $ 3,041,171 Exercisable at December 31, 2015 1,707,917 $ 0.73 7.90 $ 587,327 As of December 31, 2015, there was $1.1 million of unrecognized compensation expense related to outstanding Vivint awards, which will be recognized over a weighted-average period of 3.2 years. As of December 31, 2015 and 2014, the weighted average grant date fair value of the outstanding SARs was $0.25 and $0.44, respectively. Wireless Stock Appreciation Rights The Company’s subsidiary, Vivint Wireless, has awarded SARs to various key employees. The purpose of the SARs is to attract and retain personnel and provide an opportunity to acquire an equity interest of Vivint Wireless. The SARs are subject to a five year time-based ratable vesting period. In connection with this plan, 81,000 SARs were outstanding as of December 31, 2015. The Company does not intend to issue any additional Wireless SARs. The fair value of the Vivint Wireless awards is measured at the grant date and is recognized as expense over the employee’s requisite service period. The fair value is determined using a Black-Scholes option valuation model with the following assumptions: expected volatility of 65%, expected dividends of 0%; expected exercise term between 5.97 and 6.46 years; and risk-free rates between 1.73% and 1.81%. Due to the lack of historical exercise data, the Company used the simplified method in determining the estimated exercise term, for all Vivint Wireless awards. A summary of the SAR activity for the year ended December 31, 2015 and 2014 is presented below: Stock Appreciation Weighted Average Per Share Weighted Aggregate Outstanding, December 31, 2013 70,000 $ 5.00 9.42 — Granted — — Forfeited — — Exercised — — Outstanding, December 31, 2014 70,000 $ 5.00 8.41 — Granted 11,000 65.84 Forfeited — — Exercised — — Outstanding, December 31, 2015 81,000 $ 13.26 7.66 — Unvested shares expected to vest after December 31, 2015 49,700 $ 14.43 7.69 — Exercisable at December 31, 2015 31,300 $ 11.41 7.60 — As of December 31, 2015, there was $0.2 million of unrecognized compensation expense related to all Vivint Wireless awards, which will be recognized over a weighted-average period of 2.45 years. As of December 31, 2015 and 2014, the weighted average grant date fair value of the outstanding SARs was $6.02 and $2.30, respectively. Stock-based compensation expense in connection with all stock-based awards for the years ended December 31, 2015, 2014 and 2013 is allocated as follows (in thousands): Year ended December 31, 2015 2014 2013 Operating expenses $ 71 $ 63 $ 62 Selling expenses 578 185 158 General and administrative expenses 2,472 1,688 1,736 Total stock-based compensation $ 3,121 $ 1,936 $ 1,956 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments and Contingencies | NOTE 10—COMMITMENTS AND CONTINGENCIES Indemnification Legal The Company regularly reviews outstanding legal claims and actions to determine if reserves for expected negative outcomes of such claims and actions are necessary. The Company had reserves for all such matters of approximately $2.2 million and $2.5 million as of March 31, 2016 and December 31, 2015, respectively. In conjunction with one of the settlements, the Company is obligated to pay certain future royalties, based on sales of future products. Operating Leases Rent Expense For the three months ended, March 31, 2016 March 31, 2015 Lease Term Arrangement Warehouse, office space and other $ 2,812 $ 2,923 11 - 15 years Wireless towers and spectrum 1,162 662 1 - 10 years Total Rent Expense $ 3,974 $ 3,585 Capital Leases | NOTE 15—COMMITMENTS AND CONTINGENCIES Indemnification Legal The Company regularly reviews outstanding legal claims and actions to determine if reserves for expected negative outcomes of such claims and actions are necessary. The Company had reserves for all such matters of approximately $2.5 million and $9.7 million as of December 31, 2015 and 2014, respectively. In conjunction with one of the settlements, the Company is obligated to pay certain future royalties, based on sales of future products. Operating Leases Total rent expense for operating leases was approximately $15.1 million, $11.0 million and $6.1 million for the years ended December 31, 2015, 2014 and 2013, respectively. Capital Leases As of December 31, 2015, future minimum lease payments were as follows (in thousands): Operating Capital Total 2016 $ 17,274 $ 8,440 $ 25,714 2017 16,652 8,281 24,933 2018 15,007 3,298 18,305 2019 14,789 30 14,819 2020 13,075 11 13,086 Thereafter 63,188 — 63,188 Amounts representing interest — (1,272 ) (1,272 ) Total lease payments $ 139,985 $ 18,788 $ 158,773 In addition to the commitments mentioned above, the Company had other off-balance sheet obligations of $69.7 million as of December 31, 2015 that consisted of commitments related to software licenses, marketing activities, and other goods and services. |
Related Party Transactions
Related Party Transactions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Related Party Transactions [Abstract] | ||
Related Party Transactions | NOTE 11—RELATED PARTY TRANSACTIONS Transactions with Vivint Solar The Company and Vivint Solar, Inc. (“Solar”) have entered into agreements under which the Company subleased corporate office space through October 2014, and provides certain other ongoing administrative services to Solar. During the three months ended March 31, 2016 and 2015, the Company charged $1.4 and $1.8 million, respectively, of general and administrative expenses to Solar in connection with these agreements. The balance due from Solar in connection with these agreements and other expenses paid on Solar’s behalf was $0.9 million and $1.9 million at March 31, 2016 and December 31, 2015, respectively, and is included in prepaid expenses and other current assets in the accompanying condensed consolidated balance sheets. Also in connection with Solar’s initial public offering, the Company entered into a number of agreements with Solar related to services and other support that it has provided and will provide to Solar including: • A Master Intercompany Framework Agreement which establishes a framework for the ongoing relationship between the Company and Solar and contains master terms regarding the protection of each other’s confidential information, and master procedural terms, such as notice procedures, restrictions on assignment, interpretive provisions, governing law and dispute resolution; • A Non-Competition Agreement in which the Company and Solar each define their current areas of business and their competitors, and agree not to directly or indirectly engage in the other’s business for three years; • A Transition Services Agreement pursuant to which the Company will provide to Solar various enterprise services, including services relating to information technology and infrastructure, human resources and employee benefits, administration services and facilities-related services; • A Product Development and Supply Agreement pursuant to which one of Solar’s wholly owned subsidiaries will, for an initial term of three years, subject to automatic renewal for successive one-year periods unless either party elects otherwise, collaborate with the Company to develop certain monitoring and communications equipment that will be compatible with other equipment used in Solar’s energy systems and will replace equipment Solar currently procures from third parties; • A Marketing and Customer Relations Agreement which governs various cross-marketing initiatives between the Company and Solar, in particularly the provision of sales leads from each company to the other; and • A Trademark License Agreement pursuant to which the licensor, a special purpose subsidiary majority-owned by the Company and minority-owned by Solar, will grant Solar a royalty-free exclusive license to the trademark “VIVINT SOLAR” in the field of selling renewable energy or energy storage products and services. Other Related-party Transactions Long-term investments and other assets, includes amounts due for non-interest bearing advances made to employees that are expected to be repaid in excess of one year. Amounts due from employees as of both March 31, 2016 and December 31, 2015, amounted to approximately $0.3 million. As of March 31, 2016 and December 31, 2015, this amount was fully reserved. Prepaid expenses and other current assets at March 31, 2016 and December 31, 2015 included a receivable for $0.1 million and $0.2 million, respectively, from certain members of management in regards to their personal use of the corporate jet. The Company incurred additional expenses during the three months ended March 31, 2016 and 2015, respectively, of $0.6 million and $0.4 million, for other related-party transactions including contributions to the charitable organization Vivint Gives Back, legal fees, and services. Accrued expenses and other current liabilities at March 31, 2016 and December 31, 2015, included a payable to Vivint Gives Back for $1.6 million and $1.7 million, respectively. On November 16, 2012, the Company was acquired by an investor group comprised of certain investment funds affiliated with Blackstone Capital Partners VI L.P., and certain co-investors and management investors through certain mergers and related reorganization transactions (collectively, the “Merger”). In connection with the Merger, the Company engaged Blackstone Management Partners L.L.C. (“BMP”) to provide monitoring, advisory and consulting services on an ongoing basis. In consideration for these services, the Company agreed to pay an annual monitoring fee equal to the greater of (i) a minimum base fee of $2.7 million, subject to adjustments if the Company engages in a business combination or disposition that is deemed significant and (ii) the amount of the monitoring fee paid in respect of the immediately preceding fiscal year, without regard to any post-fiscal year “true-up” adjustments as determined by the agreement. The Company incurred expenses of approximately $0.8 million and $0.7 million during the three months ended March 31, 2016 and 2015. Accounts payable at March 31, 2016 included a liability for $2.0 million to BMP in regards to the payment of the 2016 base monitoring fee during the quarter ended March 31, 2016. Under the support and services agreement, the Company also engaged BMP to arrange for Blackstone’s portfolio operations group to provide support services customarily provided by Blackstone’s portfolio operations group to Blackstone’s private equity portfolio companies of a type and amount determined by such portfolio services group to be warranted and appropriate. BMP will invoice the Company for such services based on the time spent by the relevant personnel providing such services during the applicable period but in no event shall the Company be obligated to pay more than $1.5 million during any calendar year. During the three months ended March 31, 2016 and 2015 the Company incurred no costs associated with such services. From time to time, the Company does business with a number of other companies affiliated with Blackstone. Transactions involving related parties cannot be presumed to be carried out at an arm’s-length basis. | NOTE 16—RELATED PARTY TRANSACTIONS Transactions with Vivint Solar The Company and Vivint Solar, Inc. (“Solar”) have entered into agreements under which the Company subleased corporate office space through October 2014, and provides certain other ongoing administrative services to Solar. During the year ended December 31, 2015 and 2014, the Company charged $7.1 and $8.5 million, respectively of general and administrative expenses to Solar in connection with these agreements. The balance due from Solar in connection with these agreements and other expenses paid on Solar’s behalf was $1.9 million and $2.1 million at December 31, 2015 and December 31, 2014, respectively, and is included in prepaid expenses and other current assets in the accompanying consolidated balance sheets. On December 27, 2012, the Company executed a Subordinated Note and Loan Agreement with Solar. The terms of the agreement stated that Solar may borrow up to $20.0 million, bearing interest on the outstanding balance at an annual rate of 7.5%, which interest was due and payable semi-annually on June 1 and December 1 of each year commencing on June 1, 2013. On October 10, 2014, in connection with the completion of its initial public offering, Solar repaid loans to APX, the Company’s wholly-owned subsidiary, and to the Company’s parent entity. The Company’s parent entity, in turn, returned a portion of such proceeds to APX as a capital contribution. These transactions resulted in the receipt by APX of an aggregate amount of $55.0 million. These variable interests represent the Company’s maximum exposure to loss from direct involvement with Solar. Also in connection with Solar’s initial public offering, the Company entered into a number of agreements with Solar related to services and other support that it has provided and will provide to Solar including: • A Master Intercompany Framework Agreement which establishes a framework for the ongoing relationship between the Company and Solar and contains master terms regarding the protection of each other’s confidential information, and master procedural terms, such as notice procedures, restrictions on assignment, interpretive provisions, governing law and dispute resolution; • A Non-Competition Agreement in which the Company and Solar each define their current areas of business and their competitors, and agree not to directly or indirectly engage in the other’s business for three years; • A Transition Services Agreement pursuant to which the Company will provide to Solar various enterprise services, including services relating to information technology and infrastructure, human resources and employee benefits, administration services and facilities-related services; • A Product Development and Supply Agreement pursuant to which one of Solar’s wholly owned subsidiaries will, for an initial term of three years, subject to automatic renewal for successive one-year periods unless either party elects otherwise, collaborate with the Company to develop certain monitoring and communications equipment that will be compatible with other equipment used in Solar’s energy systems and will replace equipment Solar currently procures from third parties; • A Marketing and Customer Relations Agreement which governs various cross-marketing initiatives between the Company and Solar, in particularly the provision of sales leads from each company to the other; and • A Trademark License Agreement pursuant to which the licensor, a special purpose subsidiary majority-owned by the Company and minority-owned by Solar, will grant Solar a royalty-free exclusive license to the trademark “VIVINT SOLAR” in the field of selling renewable energy or energy storage products and services. On July 20, 2015, Vivint entered into a letter agreement with Solar and SunEdison, Inc., a Delaware corporation (“SunEdison”) in connection with Solar’s entrance into an Agreement and Plan of Merger with SunEdison and the other parties thereto pursuant to which a newly-formed wholly-owned subsidiary of SunEdison will merge with and into Solar, with Solar surviving as a wholly-owned subsidiary of SunEdison (the “Solar Merger”). Pursuant to the Letter Agreement, the parties agreed, among other things, to (i) subject to the finalization and execution of a transitional trademark license regarding Solar’s continued use of the “Vivint Solar” trademark for a limited duration for purposes of phase-out use following the consummation of the Solar Merger, terminate the Trademark License Agreement between Vivint Solar Licensing, LLC and Solar, dated September 30, 2014, (ii) terminate the Product Development and Supply Agreement between Vivint Solar Developer, LLC and Vivint, dated September 30, 2014, (iii) terminate the covenants of non-competition in the Non-Competition Agreement between Solar and Vivint, dated September 30, 2014, in each case effective as of the consummation of the Solar Merger and (iv) terminate Schedule 3 to the Marketing and Customer Relations Agreement between Vivint Solar Developer, LLC and Vivint, dated September 30, 2014. The parties also agreed to negotiate in good faith regarding the termination or amendment of certain other agreements between Solar, Vivint, and certain of their respective subsidiaries. On March 7, 2016, Solar terminated the Agreement and Plan of Merger relating to the Solar Merger. Accordingly, pursuant to its terms, the Letter Agreement also terminated on March 7, 2016. Other Related-party Transactions On September 3, 2014, APX paid a dividend in the amount of $50.0 million to Holdings, its sole stockholder, which in turn paid a dividend in the amount of $50.0 million to its stockholders. The Company incurred additional expenses during the years ended December 31, 2015, 2014 and 2013 of approximately $2.5 million, $3.1 million, $3.1 million, respectively, for other related-party transactions including contributions to the charitable organization Vivint Gives Back, legal fees, and services. Accrued expenses and other current liabilities at December 31, 2015 and 2014, included a payable to Vivint Gives Back for $1.7 million and $1.3 million, respectively. On November 16, 2012, the Company was acquired by an investor group comprised of certain investment funds affiliated with Blackstone Capital Partners VI L.P., and certain co-investors and management investors through certain mergers and related reorganization transactions (collectively, the “Merger”). At the time of the Merger, a portion of the purchase price was placed in escrow to cover potential adjustments to the total purchase consideration associated with certain indemnities and adjustments to tangible net worth. In April 2015, the parties to the Merger reached an agreement regarding the amount to be paid from escrow. As the Company had previously recorded expenses related to these pre-merger costs, this agreement resulted in a reduction to general and administrative expenses of $12.2 million, with the offset to additional paid-in capital. In connection with the Merger, the Company entered into a support and services agreement with Blackstone Management Partners L.L.C. (“BMP”), an affiliate of Blackstone. Under the support and services agreement, the Company paid BMP, at the closing of the Merger, a transaction fee of approximately $20 million as consideration for BMP’s performance of due diligence investigations, financial and structural analysis, providing corporate strategy and other advice and negotiation assistance in connection with the Merger. In addition, the Company engaged BMP to provide monitoring, advisory and consulting services on an ongoing basis. In consideration for these services, the Company agreed to pay an annual monitoring fee equal to the greater of (i) a minimum base fee of $2.7 million subject to adjustments if the Company engages in a business combination or disposition that is deemed significant and (ii) the amount of the monitoring fee paid in respect of the immediately preceding fiscal year, without regard to any post-fiscal year “true-up” adjustments as determined by the agreement. The Company incurred expenses of approximately $3.6 million, $3.2 million and $2.9 million during the years ended December 31, 2015, 2014 and 2013, respectively, in connection with this agreement. Under the support and services agreement, the Company also engaged BMP to arrange for Blackstone’s portfolio operations group to provide support services customarily provided by Blackstone’s portfolio operations group to Blackstone’s private equity portfolio companies of a type and amount determined by such portfolio services group to be warranted and appropriate. BMP will invoice the Company for such services based on the time spent by the relevant personnel providing such services during the applicable period but in no event shall the Company be obligated to pay more than $1.5 million during any calendar year. Long-term investments and other assets, includes amounts due for non-interest bearing advances made to employees that are expected to be repaid in excess of one year. Amounts due from employees as of both December 31, 2015 and 2014, amounted to approximately $0.3 million. As of December 31, 2015 and 2014, this amount was fully reserved. Prepaid expenses and other current assets at December 31, 2015 and 2014 included a receivable for $0.2 million and $0.3 million, respectively, from certain members of management in regards to their personal use of the corporate jet. From time to time, the Company does business with a number of other companies affiliated with Blackstone. Transactions involving related parties cannot be presumed to be carried out at an arm’s-length basis. |
Segment Reporting and Business
Segment Reporting and Business Concentrations | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting and Business Concentrations | NOTE 17—SEGMENT REPORTING AND BUSINESS CONCENTRATIONS Prior to the 2GIG Sale on April 1, 2013, the Company conducted business through two operating segments, Vivint and 2GIG. These segments were managed and evaluated separately by management due to the differences in their products and services. The primary source of revenue for the Vivint segment is generated through monitoring services provided to subscribers, in accordance with their subscriber contracts. The primary source of revenue for the 2GIG segment was through the sale of electronic security and automation systems to security dealers and distributors, including Vivint. Fees and expenses charged by 2GIG to Vivint, related to intercompany purchases, were eliminated in consolidation. Since the 2GIG Sale, the Company has conducted business through the Vivint operating segment. For the years ended December 31, 2015 and 2014, the Company conducted business through one operating segment, Vivint. The following table presents a summary of revenue, costs and expenses and assets as of December 31, 2013 (in thousands): Vivint 2GIG Eliminations Consolidated Revenues $ 483,401 $ 60,220 $ (42,713 ) $ 500,908 All other costs and expenses 536,502 52,200 (32,914 ) 555,788 (Loss) income from operations $ (53,101 ) $ 8,020 $ (9,799 ) $ (54,880 ) Intangible assets, including goodwill $ 1,677,032 $ — $ — $ 1,677,032 Total assets $ 2,303,644 $ — $ — $ 2,303,644 The Company primarily operates in three geographic regions: United States, Canada and New Zealand. The operations in New Zealand are considered immaterial and reported in conjunction with the United States. Revenues and long-lived assets by geographic region were as follows (in thousands): United States Canada Total As of and for the Year ended December 31, 2015 Revenue from external customers $ 602,418 $ 51,303 $ 653,721 Property and equipment, net 55,103 171 55,274 Year ended December 31, 2014 Revenue from external customers $ 529,521 $ 34,156 $ 563,677 Property and equipment, net 62,368 422 62,790 Year ended December 31, 2013 Revenue from external customers $ 474,344 $ 26,564 $ 500,908 Property and equipment, net 35,220 598 35,818 |
Employee Benefit Plan
Employee Benefit Plan | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Postemployment Benefits [Abstract] | ||
Employee Benefit Plan | NOTE 12—EMPLOYEE BENEFIT PLAN The Company offers eligible employees the opportunity to contribute a percentage of their earned income into company-sponsored 401(k) plans. No matching contributions were made to the plans for the three months ended March 31, 2016 and 2015. | NOTE 18—EMPLOYEE BENEFIT PLAN Beginning March 1, 2010, Vivint and 2GIG offered eligible employees the opportunity to defer a percentage of their earned income into company-sponsored 401(k) plans. No matching contributions were made to the plans for the years ended December 31, 2015 and 2014. 2GIG made matching contributions to the plan in the amount of $36,000 for the year ended December 31, 2013. |
Guarantor and Non-Guarantor Sup
Guarantor and Non-Guarantor Supplemental Financial Information | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Text Block [Abstract] | ||
Guarantor and Non-Guarantor Supplemental Financial Information | NOTE 15—GUARANTOR AND NON-GUARANTOR SUPPLEMENTAL FINANCIAL INFORMATION The 2019 notes, 2020 notes and the 2022 notes were issued by APX. The 2019 notes, 2020 notes and the 2022 notes are fully and unconditionally guaranteed, jointly and severally by Holdings and each of APX’s existing and future material wholly-owned U.S. restricted subsidiaries. APX’s existing and future foreign subsidiaries are not expected to guarantee the notes. Presented below is the condensed consolidating financial information of APX, subsidiaries of APX that are guarantors (the “Guarantor Subsidiaries”), and APX’s subsidiaries that are not guarantors (the “Non-Guarantor Subsidiaries”) as of March 31, 2016 and December 31, 2015 and for the three months ended March 31, 2016 and 2015. The unaudited condensed consolidating financial information reflects the investments of APX in the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries using the equity method of accounting. Supplemental Condensed Consolidating Balance Sheet March 31, 2016 (In thousands) (unaudited) Parent APX Group, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets $ — $ 3,640 $ 130,490 $ 5,307 $ (56,833 ) $ 82,604 Property and equipment, net — — 54,946 223 — 55,169 Subscriber acquisition costs, net — — 760,052 68,242 — 828,294 Deferred financing costs, net — 5,948 — — — 5,948 Investment in subsidiaries — 2,088,923 — — (2,088,923 ) — Intercompany receivable — — 18,732 — (18,732 ) — Intangible assets, net — — 492,419 39,638 — 532,057 Goodwill — — 809,678 26,420 — 836,098 Long-term investments and other assets — 106 10,663 15 (106 ) 10,678 Total Assets $ — $ 2,098,617 $ 2,276,980 $ 139,845 $ (2,164,594 ) $ 2,350,848 Liabilities and Stockholders’ (Deficit) Equity Current liabilities $ — $ 61,667 $ 169,003 $ 63,731 $ (56,833 ) $ 237,568 Intercompany payable — — — 18,732 (18,732 ) — Notes payable and revolving credit facility, net of current portion — 2,156,217 — — — 2,156,217 Capital lease obligations, net of current portion — — 9,825 2 — 9,827 Deferred revenue, net of current portion — — 43,058 4,183 — 47,241 Other long-term obligations — — 11,225 — — 11,225 Accumulated losses of investee 119,267 (119,267 ) — Deferred income tax liability — — 106 8,037 (106 ) 8,037 Total (deficit) equity (119,267 ) (119,267 ) 2,043,763 45,160 (1,969,656 ) (119,267 ) Total liabilities and stockholders’ (deficit) equity $ — $ 2,098,617 $ 2,276,980 $ 139,845 $ (2,164,594 ) $ 2,350,848 Supplemental Condensed Consolidating Balance Sheet December 31, 2015 (In thousands) Parent APX Group, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets $ — $ 2,537 $ 91,555 $ 6,540 $ (53,066 ) $ 47,566 Property and equipment, net — — 55,012 262 — 55,274 Subscriber acquisition costs, net — — 728,547 62,097 — 790,644 Deferred financing costs, net — 6,456 — — — 6,456 Investment in subsidiaries — 2,070,404 — — (2,070,404 ) — Intercompany receivable — — 22,398 — (22,398 ) — Intangible assets, net — — 519,301 39,094 — 558,395 Goodwill — — 809,678 24,738 — 834,416 Long-term investments and other assets — 106 10,880 13 (106 ) 10,893 Total Assets $ — $ 2,079,503 $ 2,237,371 $ 132,744 $ (2,145,974 ) $ 2,303,644 Liabilities and Stockholders’ (Deficit) Equity Current liabilities $ — $ 18,384 $ 143,896 $ 59,304 $ (53,066 ) $ 168,518 Intercompany payable — — — 22,398 (22,398 ) — Notes payable and revolving credit facility, net of current portion — 2,138,112 — — — 2,138,112 Capital lease obligations, net of current portion — — 11,169 2 — 11,171 Deferred revenue, net of current portion — — 40,960 3,822 — 44,782 Accumulated Losses of Investee 76,993 — — — (76,993 ) — Other long-term obligations — — 10,530 — — 10,530 Deferred income tax liability — — 106 7,524 (106 ) 7,524 Total (deficit) equity (76,993 ) (76,993 ) 2,030,710 39,694 (1,993,411 ) (76,993 ) Total liabilities and stockholders’ (deficit) equity $ — $ 2,079,503 $ 2,237,371 $ 132,744 $ (2,145,974 ) $ 2,303,644 Supplemental Condensed Consolidating Statements of Operations and Comprehensive (Loss) Income For the Three Months Ended March 31, 2016 (In thousands) (unaudited) Parent APX Group, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ — $ 165,941 $ 8,987 $ (675 ) $ 174,253 Costs and expenses — — 170,289 8,314 (675 ) 177,928 (Loss) income from operations — — (4,348 ) 673 — (3,675 ) Loss from subsidiaries (45,093 ) (45 ) — — 45,138 — Other (expense) income, net — (45,048 ) 1,664 3,086 — (40,298 ) (Loss) income before income tax expenses (45,093 ) (45,093 ) (2,684 ) 3,759 45,138 (43,973 ) Income tax expense — — 64 1,056 — 1,120 Net (loss) income $ (45,093 ) $ (45,093 ) $ (2,748 ) $ 2,703 $ 45,138 $ (45,093 ) Other comprehensive (loss) income, net of tax effects: Net (loss) income $ (45,093 ) $ (45,093 ) $ (2,748 ) $ 2,703 $ 45,138 $ (45,093 ) Foreign currency translation adjustment — 2,761 — 2,761 (2,761 ) 2,761 Total other comprehensive income — 2,761 — 2,761 (2,761 ) 2,761 Comprehensive (loss) income $ (45,093 ) $ (42,332 ) $ (2,748 ) $ 5,464 $ 42,377 $ (42,332 ) Supplemental Condensed Consolidating Statements of Operations and Comprehensive (Loss) Income For the Three Months Ended March 31, 2015 (In thousands) (unaudited) Parent APX Group, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ — $ 144,737 $ 8,230 $ (770 ) $ 152,197 Costs and expenses — — 154,900 7,766 (770 ) 161,896 (Loss) income from operations — — (10,163 ) 464 — (9,699 ) Loss from subsidiaries (48,046 ) (10,092 ) — — 58,138 — Other expense, net — (37,954 ) (247 ) (16 ) — (38,217 ) (Loss) income before income tax expenses (48,046 ) (48,046 ) (10,410 ) 448 58,138 (47,916 ) Income tax expense — — 40 90 — 130 Net (loss) income $ (48,046 ) $ (48,046 ) $ (10,450 ) $ 358 $ 58,138 $ (48,046 ) Other comprehensive loss, net of tax effects: Net (loss) income $ (48,046 ) $ (48,046 ) $ (10,450 ) $ 358 $ 58,138 $ (48,046 ) Foreign currency translation adjustment — (10,578 ) (6,336 ) (4,242 ) 10,578 (10,578 ) Total other comprehensive loss — (10,578 ) (6,336 ) (4,242 ) 10,578 (10,578 ) Comprehensive loss $ (48,046 ) $ (58,624 ) $ (16,786 ) $ (3,884 ) $ 68,716 $ (58,624 ) Supplemental Condensed Consolidating Statements of Cash Flows For the three Months Ended March 31, 2016 (In thousands) (unaudited) Parent APX Group, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net cash (used in) provided by operating activities $ — $ (196 ) $ (15,268 ) $ 2,959 $ — $ (12,505 ) Cash flows from investing activities: Subscriber acquisition costs—company owned equipment — — (63 ) — — (63 ) Capital expenditures — — (3,070 ) — — (3,070 ) Proceeds from sale of assets — — 926 — — 926 Investment in subsidiary — (14,615 ) — — 14,615 — Acquisition of intangible assets — — (235 ) — — (235 ) Proceeds from insurance claims — — — — — — Acquisition of other assets — — — — — — Net cash used in investing activities — (14,615 ) (2,442 ) — 14,615 (2,442 ) Cash flows from financing activities: Borrowings from revolving credit facility — 21,000 — — — 21,000 Repayments on revolving credit facility — (5,000 ) — — — (5,000 ) Intercompany receivable — — 3,667 — (3,667 ) — Intercompany payable — — 14,615 (3,667 ) (10,948 ) — Repayments of capital lease obligations — — (1,974 ) — — (1,974 ) Deferred financing costs — — — — — — Net cash provided by (used in) financing activities — 16,000 16,308 (3,667 ) (14,615 ) 14,026 Effect of exchange rate changes on cash — — — (1,126 ) — (1,126 ) Net increase (decrease) in cash — 1,189 (1,402 ) (1,834 ) — (2,047 ) Cash: Beginning of period — 2,299 (1,941 ) 2,201 — 2,559 End of period $ — $ 3,488 $ (3,343 ) $ 367 $ — $ 512 Supplemental Condensed Consolidating Statements of Cash Flows For the three Months Ended March 31, 2015 (In thousands) (unaudited) Parent APX Group, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net cash provided by (used in) operating activities $ — $ (268 ) $ 9,884 $ 6,716 $ — $ 16,332 Cash flows from investing activities: Subscriber acquisition costs—company owned equipment — — (6,815 ) (31 ) — (6,846 ) Capital expenditures — — (10,002 ) — — (10,002 ) Investment in subsidiary — (9,869 ) — — 9,869 — Acquisition of intangible assets — — (736 ) — — (736 ) Proceeds from sale of assets — — 188 — — 188 Proceeds from insurance claims — — 2,984 — — 2,984 Acquisition of other assets — — (81 ) 14 — (67 ) Net cash used in investing activities — (9,869 ) (14,462 ) (17 ) 9,869 (14,479 ) Cash flows from financing activities: Borrowings from revolving credit facility — 22,500 — — — 22,500 Repayments on revolving credit facility — (10,000 ) — — — (10,000 ) Intercompany receivable — — (2,125 ) — 2,125 — Intercompany payable — — 9,869 2,125 (11,994 ) — Repayments of capital lease obligations — — (2,279 ) (1 ) — (2,280 ) Deferred financing costs — (4,233 ) — — — (4,233 ) Net cash (used in) provided by financing activities — 8,267 5,465 2,124 (9,869 ) 5,987 Effect of exchange rate changes on cash — — — (601 ) — (601 ) Net (decrease) increase in cash — (1,870 ) 887 8,222 — 7,239 Cash: Beginning of period — 9,432 (2,233 ) 3,608 — 10,807 End of period $ — $ 7,562 $ (1,346 ) $ 11,830 $ — $ 18,046 | NOTE 19—GUARANTOR AND NON-GUARANTOR SUPPLEMENTAL FINANCIAL INFORMATION The 2019 notes, 2020 notes and the 2022 notes were issued by APX. The 2019 notes, 2020 notes and the 2022 notes are fully and unconditionally guaranteed, jointly and severally by Holdings and each of APX’s existing and future material wholly-owned U.S. restricted subsidiaries. APX’s existing and future foreign subsidiaries are not expected to guarantee the notes. Presented below is the consolidating financial information of APX, subsidiaries of APX that are guarantors (the “Guarantor Subsidiaries”), and APX’s subsidiaries that are not guarantors (the “Non-Guarantor Subsidiaries”) as of and for the years ended December 31, 2015, 2014 and 2013. The audited consolidating financial information reflects the investments of APX in the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries using the equity method of accounting. Condensed Consolidating Balance Sheet December 31, 2015 (In thousands) Parent APX Group, Inc. Guarantor Non-Guarantor Eliminations Consolidated Assets Current assets $ — $ 2,537 $ 91,555 $ 6,540 $ (53,066 ) $ 47,566 Property and equipment, net — — 55,012 262 — 55,274 Subscriber acquisition costs, net — — 728,547 62,097 — 790,644 Deferred financing costs, net — 6,456 — — — 6,456 Investment in subsidiaries — 2,070,404 — — (2,070,404 ) — Intercompany receivable — — 22,398 — (22,398 ) — Intangible assets, net — — 519,301 39,094 — 558,395 Goodwill — — 809,678 24,738 — 834,416 Long-term investments and other assets — 106 10,880 13 (106 ) 10,893 Total Assets $ — $ 2,079,503 $ 2,237,371 $ 132,744 $ (2,145,974 ) $ 2,303,644 Liabilities and Stockholders’ Equity Current liabilities $ — $ 18,384 $ 143,896 $ 59,304 $ (53,066 ) $ 168,518 Intercompany payable — — — 22,398 (22,398 ) — Notes payable and revolving line of credit, net of current portion — 2,138,112 — — — 2,138,112 Capital lease obligations, net of current portion — — 11,169 2 — 11,171 Deferred revenue, net of current portion — — 40,960 3,822 — 44,782 Accumulated losses of investee 76,993 — — — (76,993 ) — Other long-term obligations — — 10,530 — — 10,530 Deferred income tax liability — — 106 7,524 (106 ) 7,524 Total equity (76,993 ) (76,993 ) 2,030,710 39,694 (1,993,411 ) (76,993 ) Total liabilities and stockholders’ equity $ — $ 2,079,503 $ 2,237,371 $ 132,744 $ (2,145,974 ) $ 2,303,644 Condensed Consolidating Balance Sheet December 31, 2014 (In thousands) Parent APX Group, Inc. Guarantor Non-Guarantor Eliminations Consolidated Assets Current assets $ — $ 9,435 $ 109,996 $ 6,626 $ (40,686 ) $ 85,371 Property and equipment, net — — 62,271 519 — 62,790 Subscriber acquisition costs, net — — 500,916 47,157 — 548,073 Deferred financing costs, net — 4,071 — — — 4,071 Investment in subsidiaries 224,486 2,057,857 — — (2,282,343 ) — Intercompany receivable — — 34,000 — (34,000 ) — Intangible assets, net — — 645,558 57,668 — 703,226 Goodwill — — 811,947 29,575 — 841,522 Long-term investments and other assets — 184 10,502 31 (184 ) 10,533 Total Assets $ 224,486 $ 2,071,547 $ 2,175,190 $ 141,576 $ (2,357,213 ) $ 2,255,586 Liabilities and Stockholders’ Equity Current liabilities $ — $ 11,993 $ 119,285 $ 46,348 $ (40,686 ) $ 136,940 Intercompany payable — — — 34,000 (34,000 ) — Notes payable and revolving line of credit, net of current portion — 1,835,068 — — — 1,835,068 Capital lease obligations, net of current portion — — 10,646 9 — 10,655 Deferred revenue, net of current portion — — 29,438 3,066 — 32,504 Other long-term obligations — — 6,497 409 — 6,906 Deferred income tax liability — — 107 9,104 (184 ) 9,027 Total equity 224,486 224,486 2,009,217 48,640 (2,282,343 ) 224,486 Total liabilities and stockholders’ equity $ 224,486 $ 2,071,547 $ 2,175,190 $ 141,576 $ (2,357,213 ) $ 2,255,586 Condensed Consolidating Statements of Operations and Comprehensive Loss For the Year Ended December 31, 2015 (In thousands) Parent APX Guarantor Non-Guarantor Eliminations Consolidated Revenues $ — $ — $ 622,507 $ 34,022 $ (2,808 ) $ 653,721 Costs and expenses — — 730,322 34,882 (2,808 ) 762,396 Loss from operations — — (107,815 ) (860 ) — (108,675 ) Loss from subsidiaries (279,107 ) (118,885 ) — — 397,992 — Other (expense) income, net — (160,222 ) (9,763 ) (96 ) — (170,081 ) Loss before income tax expenses (279,107 ) (279,107 ) (117,578 ) (956 ) 397,992 (278,756 ) Income tax expense (benefit) — — 392 (41 ) — 351 Net loss $ (279,107 ) $ (279,107 ) $ (117,970 ) $ (915 ) $ 397,992 $ (279,107 ) Other comprehensive loss, net of tax effects: Net loss $ (279,107 ) $ (279,107 ) $ (117,970 ) $ (915 ) $ 397,992 $ (279,107 ) Foreign currency translation adjustment — (13,293 ) 2 (13,294 ) 13,292 (13,293 ) Total other comprehensive loss — (13,293 ) 2 (13,294 ) 13,292 (13,293 ) Comprehensive loss $ (279,107 ) $ (292,400 ) $ (117,968 ) $ (14,209 ) $ 411,284 $ (292,400 ) Condensed Consolidating Statements of Operations and Comprehensive Loss For the Year Ended December 31, 2014 (In thousands) Parent APX Guarantor Non-Guarantor Eliminations Consolidated Revenues $ — $ — $ 530,888 $ 35,911 $ (3,122 ) $ 563,677 Costs and expenses — — 623,124 37,544 (3,122 ) 657,546 Loss from operations — — (92,236 ) (1,633 ) — (93,869 ) Loss from subsidiaries (238,660 ) (93,850 ) — — 332,510 — Other income (expense), net — (145,917 ) 1,676 (36 ) — (144,277 ) Loss before income tax expenses (238,660 ) (239,767 ) (90,560 ) (1,669 ) 332,510 (238,146 ) Income tax expense (benefit) — (1,107 ) 779 842 — 514 Net loss $ (238,660 ) $ (238,660 ) $ (91,339 ) $ (2,511 ) $ 332,510 $ (238,660 ) Other comprehensive loss, net of tax effects: Net loss $ (238,660 ) $ (238,660 ) $ (91,339 ) $ (2,511 ) $ 332,510 $ (238,660 ) Foreign currency translation adjustment — (11,333 ) (6,895 ) (4,438 ) 11,333 (11,333 ) Total other comprehensive loss — (11,333 ) (6,895 ) (4,438 ) 11,333 (11,333 ) Comprehensive loss $ (238,660 ) $ (249,993 ) $ (98,234 ) $ (6,949 ) $ 343,843 $ (249,993 ) Condensed Consolidating Statements of Operations and Comprehensive Loss For the year ended December 31, 2013 (In thousands) Parent APX Guarantor Non-Guarantor Eliminations Consolidated Revenues $ — $ — $ 476,168 $ 27,790 $ (3,050 ) $ 500,908 Costs and expenses — — 527,403 31,435 (3,050 ) 555,788 (Loss) income from operations — — (51,235 ) (3,645 ) — (54,880 ) (Loss) income from subsidiaries (124,513 ) (57,752 ) — — 182,265 — Other income (expense), net — (66,867 ) 906 (80 ) — (66,041 ) (Loss) income from continuing operations before income tax expense (124,513 ) (124,619 ) (50,329 ) (3,725 ) 182,265 (120,921 ) Income tax (benefit) expense — (106 ) 4,853 (1,155 ) — 3,592 Net (loss) income $ (124,513 ) $ (124,513 ) $ (55,182 ) $ (2,570 ) $ 182,265 $ (124,513 ) Other comprehensive (loss) income, net of tax effects: Net (loss) income before non-controlling interests $ (124,513 ) $ (124,513 ) $ (55,182 ) $ (2,570 ) $ 182,265 $ (124,513 ) Foreign currency translation adjustment — (8,558 ) (4,641 ) (3,917 ) 8,558 (8,558 ) Comprehensive loss $ (124,513 ) $ (133,071 ) $ (59,823 ) $ (6,487 ) $ 190,823 $ (133,071 ) Condensed Consolidating Statements of Cash Flows For the Year ended December 31, 2015 (In thousands) Parent APX Guarantor Non-Guarantor Eliminations Consolidated Cash flows from operating activities: Net cash used in operating activities $ — $ (1,052 ) $ (267,327 ) $ 13,072 $ — $ (255,307 ) Cash flows from investing activities: Subscriber acquisition costs—company owned equipment — — (23,641 ) (1,099 ) — (24,740 ) Capital expenditures — — (26,941 ) (41 ) — (26,982 ) Proceeds from the sale of subsidiary — — — — — — Proceeds from sale of capital assets — — 480 — — 480 Investment in subsidiary — (296,895 ) — — 296,895 — Acquisition of intangible assets — — (1,363 ) — — (1,363 ) Proceeds from insurance claims — — 2,984 — — 2,984 Net cash used in acquisitions — — — — — — Investment in marketable securities — — — — — — Proceeds from marketable securities — — — — — — Proceeds from note receivable — — — — — — Change in restricted cash — — 14,214 — — 14,214 Investment in convertible note — — — — — — Other assets — — (208 ) — — (208 ) Net cash used in investing activities — (296,895 ) (34,475 ) (1,140 ) 296,895 (35,615 ) Cash flows from financing activities: Proceeds from notes payable — 296,250 — — — 296,250 Borrowings from revolving line of credit — 271,000 — — — 271,000 Repayment of revolving line of credit (271,000 ) (271,000 ) Intercompany receivable — 11,601 — (11,601 ) — Intercompany payable — — 296,895 (11,601 ) (285,294 ) — Proceeds from contract sales — — — — — Acquisition of contracts — — — — — Repayments of capital lease obligations — — (6,402 ) (12 ) — (6,414 ) Deferred financing costs — (5,436 ) — — — (5,436 ) Capital contribution — — — — — — Payment of dividends — — — — — — Net cash provided by (used in) provided by financing activities — 290,814 302,094 (11,613 ) (296,895 ) 284,400 Effect of exchange rate changes on cash — — — (1,726 ) — (1,726 ) Net increase (decrease) in cash — (7,133 ) 292 (1,407 ) — (8,248 ) Cash: Beginning of period — 9,432 (2,233 ) 3,608 — 10,807 End of period $ — $ 2,299 $ (1,941 ) $ 2,201 $ — $ 2,559 Condensed Consolidating Statements of Cash Flows For the Year ended December 31, 2014 (In thousands) Parent APX Guarantor Non-Guarantor Eliminations Consolidated Cash flows from operating activities: Net cash provided by (used in) operating activities $ 50,000 $ (894 ) $ (318,734 ) $ 9,991 $ (50,000 ) $ (309,637 ) Cash flows from investing activities: Subscriber acquisition costs—company owned equipment — — (10,580 ) — — (10,580 ) Capital expenditures — — (30,315 ) (185 ) — (30,500 ) Proceeds from the sale of subsidiary — — — — — — Proceeds from sale of capital assets — — 964 — — 964 Investment in subsidiary (32,300 ) (340,024 ) — — 372,324 — Acquisition of intangible assets — — (9,649 ) — — (9,649 ) Net cash used in acquisitions — — (18,500 ) — — (18,500 ) Investment in marketable securities — (60,000 ) — — — (60,000 ) Proceeds from marketable securities — 60,069 — — — 60,069 Proceeds from note receivable — — 22,699 — — 22,699 Change in restricted cash — — 14,375 — — 14,375 Investment in convertible note — — (3,000 ) — — (3,000 ) Other assets — — (2,153 ) (9 ) — (2,162 ) Net cash used in investing activities (32,300 ) (339,955 ) (36,159 ) (194 ) 372,324 (36,284 ) Cash flows from financing activities: Proceeds from notes payable — 102,000 — — — 102,000 Borrowings from revolving line of credit — 20,000 — — — 20,000 Intercompany receivable — — 10,658 — (10,658 ) — Intercompany payable — — 340,024 (10,658 ) (329,366 ) — Proceeds from contract sales — — 2,261 — — 2,261 Acquisition of contracts — — (2,277 ) — — (2,277 ) Repayments of capital lease obligations — — (6,297 ) (3 ) — (6,300 ) Deferred financing costs — (2,927 ) — — — (2,927 ) Capital contribution 32,300 32,300 — — (32,300 ) 32,300 Payment of dividends (50,000 ) (50,000 ) — — 50,000 (50,000 ) Net cash (used in) provided by financing activities (17,700 ) 101,373 344,369 (10,661 ) (322,324 ) 95,057 Effect of exchange rate changes on cash — — — (234 ) — (234 ) Net increase in cash — (239,476 ) (10,524 ) (1,098 ) — (251,098 ) Cash: Beginning of period — 248,908 8,291 4,706 — 261,905 End of period $ — $ 9,432 $ (2,233 ) $ 3,608 $ — $ 10,807 Condensed Consolidating Statements of Cash Flows For the Year ended December 31, 2013 (In thousands) Parent APX Guarantor Non-Guarantor Eliminations Consolidated Cash flows from operating activities: Net cash provided by (used in) operating activities $ 60,000 $ (201 ) $ (227,146 ) $ 8,471 $ (60,000 ) $ (218,876 ) Cash flows from investing activities: Subscriber acquisition costs—company owned equipment — — (342 ) — — (342 ) Capital expenditures — — (8,917 ) (56 ) — (8,973 ) Proceeds from the sale of subsidiary — 144,750 — — — 144,750 Investment in subsidiary — (254,394 ) — — 254,394 — Proceeds from the sale of capital assets — — 306 — — 306 Net cash used in acquisition — — (4,272 ) — — (4,272 ) Change in restricted cash — — (161 ) — — (161 ) Other assets — — (9,648 ) 3 — (9,645 ) Net cash provided by (used in) investing activities — (109,644 ) (23,034 ) (53 ) 254,394 121,663 Cash flows from financing activities: Proceeds from notes payable — 457,250 — — — 457,250 Intercompany receivable — — 7,096 — (7,096 ) — Intercompany payable — — 254,394 (7,096 ) (247,298 ) — Borrowings from revolving line of credit — 22,500 — — — 22,500 Repayments on revolving line of credit — (50,500 ) — — — (50,500 ) Repayments of capital lease obligations — — (7,207 ) — — (7,207 ) Deferred financing costs — (10,896 ) — — — (10,896 ) Payment of dividends (60,000 ) (60,000 ) — — 60,000 (60,000 ) Net cash (used in) provided by financing activities (60,000 ) 358,354 254,283 (7,096 ) (194,394 ) 351,147 Effect of exchange rate changes on cash — — — (119 ) — (119 ) Net increase in cash — 248,509 4,103 1,203 — 253,815 Cash: Beginning of period — 399 4,188 3,503 — 8,090 End of period $ — $ 248,908 $ 8,291 $ 4,706 $ — $ 261,905 |
Retrospective Adoption Of ASU 2
Retrospective Adoption Of ASU 2015-03 | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Retrospective Adoption Of ASU 2015-03 | NOTE 20—RETROSPECTIVE ADOPTION OF ASU 2015-03 As discussed in Note 2, “Significant Accounting Policies,” ASU 2015-03 simplifies the presentation of debt issuance costs by requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. As a result of the retrospective adoption of ASU 2015-03 effective January 1, 2016, deferred financing costs, net of approximately $40.2 million and $48.1 million previously classified as an asset within Deferred Financing Costs, net were reclassified to reduce the related debt liabilities within Notes Payable, net as of December 31, 2015 and 2014, respectively. Accordingly, the accompanying Consolidated Balance Sheets; Note 2, “Significant Accounting Policies”; Note 6, “Long-Term Debt”; Note 17, “Segment Reporting and Business Concentrations”; and Note 19, “Guarantor and Non-Guarantor Supplemental Financial Information” have been updated. Additionally, Note 21, “Subsequent Events” has been added. No other updates have been made to what was previously disclosed in the consolidated financial statements in the Company’s 2015 Form 10-K that was filed with the Securities Exchange Commission on March 10, 2016 other than the above mentioned updates and updates to our Report of Independent Registered Accounting Firm to reflect a dual dated opinion as a result of these updates. |
Subsequent Events
Subsequent Events | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Subsequent Events [Abstract] | ||
Subsequent Events | NOTE 16—SUBSEQUENT EVENTS On April 25, 2016, APX Parent Holdco, Inc. (“Parent”), a parent company of the Company, completed the issuance and sale to certain investors of a series of preferred stock in a private placement exempt from registration under the Securities Act. On April 29, 2016, Parent contributed the net proceeds of $69.8 million from such issuance and sale to the Company as an equity contribution. On May 26, 2016, APX Group, Inc. (the “Issuer”), a wholly-owned subsidiary of the Company issued $500.0 million aggregate principal amount of 7.875% senior secured notes due 2022 (the “outstanding 2022 notes”), pursuant to an indenture dated as of May 26, 2016 among the Issuer, the guarantors party thereto and Wilmington Trust, National Association, as trustee and collateral agent. The outstanding 2022 notes will mature on December 1, 2022, or on such earlier date when any outstanding pari passu lien indebtedness matures as a result of the operation of any “Springing Maturity” provision set forth in the agreements governing such pari passu lien indebtedness. The outstanding 2022 notes are secured, on a pari passu basis, by the collateral securing obligations under the notes and the revolving credit facilities, in all cases, subject to certain exceptions and permitted liens. The Issuer used a portion of the net proceeds from the offering of the outstanding 2022 notes to repurchase approximately $235 million aggregate principal amount of its outstanding 6.375% Senior Secured Notes due 2019 and 8.875% Senior Secured Notes due 2022 in privately negotiated transactions and repay borrowings under its existing revolving credit facility. | NOTE 21—SUBSEQUENT EVENTS On April 25, 2016, APX Parent Holdco, Inc. (“Parent”), a parent company of the Company, completed the issuance and sale to certain investors of a series of preferred stock in a private placement exempt from registration under the Securities Act. On April 29, 2016, Parent contributed the net proceeds of $69.8 million from such issuance and sale to the Company as an equity contribution. On May 26, 2016, APX Group, Inc. (the “Issuer”), a wholly-owned subsidiary of the Company, issued $500.0 million aggregate principal amount of 7.875% senior secured notes due 2022 (the “outstanding 2022 notes”), pursuant to an indenture dated as of May 26, 2016 among the Issuer, the guarantors party thereto and Wilmington Trust, National Association, as trustee and collateral agent. The outstanding 2022 notes will mature on December 1, 2022, or on such earlier date when any outstanding pari passu lien indebtedness matures as a result of the operation of any “Springing Maturity” provision set forth in the agreements governing such pari passu lien indebtedness. The outstanding 2022 notes are secured, on a pari passu basis, by the collateral securing obligations under the notes and the revolving credit facilities, in all cases, subject to certain exceptions and permitted liens. The Issuer used a portion of the net proceeds from the offering of the outstanding 2022 notes to repurchase approximately $235 million aggregate principal amount of its outstanding 6.3 75% Senior Secured Notes due 2019 and 8.875% Senior Secured Notes due 2022 in privately negotiated transactions and repay borrowings under its existing revolving credit facility. |
Basis of Presentation and Sig29
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | ||
Basis of Presentation | Basis of Presentation During the three months ended March 31, 2015, the Company recorded certain out-of-period adjustments totaling $2.0 million, primarily associated with the timing of the recognition of deferred revenue related to 2014 recurring monitoring services. As a result of these adjustments, recurring revenues increased for the three months ended March 31, 2015 and deferred revenue decreased by $2.0 million, respectively. The Company evaluated the impact of the out-of-period adjustments and determined that they are immaterial to the unaudited condensed consolidated financial statements for the three months ended March 31, 2015. | Basis of Presentation The Company has prepared the accompanying consolidated financial statements pursuant to generally accepted accounting principles in the United States (“GAAP”). Preparing financial statements requires the Company to make estimates and assumptions that affect the amounts that are reported in the consolidated financial statements and accompanying disclosures. Although these estimates are based on the Company’s best knowledge of current events and actions that the Company may undertake in the future, actual results may be different from the Company’s estimates. The results of operations presented herein are not necessarily indicative of the Company’s results for any future period. During the year ended December 31, 2015, the Company recorded certain out-of-period adjustments totaling $2.0 million, primarily associated with the timing of the recognition of deferred revenue related to 2014 recurring monitoring services. As a result of these adjustments, recurring revenues increased for the year ended December 31, 2015 and deferred revenue decreased by $2.0 million, respectively. The Company evaluated the impact of the out-of-period adjustments and determined that they are immaterial to the consolidated financial statements for the year ended December 31, 2015. |
Restructuring and Asset Impairment Charges | Restructuring and Asset Impairment Charges | Restructuring and Asset Impairment Charges |
Use of Estimates | Use of Estimates | Use of Estimates |
Principles of Consolidation | Principles of Consolidation | |
Changes in Presentation of Comparative Financial Statements | Changes in Presentation of Comparative Financial Statements | Changes in Presentation of Comparative Financial Statements |
Revenue Recognition | Revenue Recognition— Recurring revenue for the Company’s subscriber contracts is billed in advance, generally monthly, pursuant to the terms of subscriber contracts and recognized ratably over the service period. Costs of providing ongoing recurring services are expensed in the period incurred. Service and other sales revenue is recognized as services are provided or when title to the products and equipment sold transfers to the customer. Contract fulfillment revenue, included in service and other sales, is recognized when payment is received from customers who cancel their contract in-term. Revenue from sales of products that are not part of the basic equipment package is generally recognized upon delivery of products. Activation fees represent upfront one-time charges billed to subscribers at the time of installation and are deferred. These fees are recognized over the estimated customer life of 12 years using a 150% declining balance method, which converts to a straight-line methodology after approximately five years to approximate the anticipated life of the customer. | Revenue Recognition Recurring revenue for the Company’s subscriber contracts are billed in advance, generally monthly, pursuant to the terms of subscriber contracts and recognized ratably over the service period. Costs of providing ongoing recurring services are expensed in the period incurred. Service and other sales revenue is recognized as services are provided or when title to the products and equipment sold transfers to the customer. Contract fulfillment revenue, included in service and other sales, is recognized when payment is received from customers who cancel their contract in-term. Revenue from sales of products that are not part of the basic equipment package is recognized upon delivery of products. Activation fees represent upfront one-time charges billed to subscribers at the time of installation and are deferred. These fees are recognized over the estimated customer life of 12 years using a 150% declining balance method, which converts to a straight-line methodology after approximately five years to approximate the anticipated life of the customer. Through the date of the 2GIG Sale, service and other sales revenue included net recurring services revenue, which was based on back-end services provided by Alarm.com for all panels sold to distributors and direct-sell dealers and subsequently placed in service at end-user locations. The Company received a fixed monthly amount from Alarm.com for each system installed with non-Vivint customers that used the Alarm.com platform. |
Subscriber Acquisition Costs | Subscriber Acquisition Costs On the condensed consolidated statement of cash flows, subscriber acquisition costs that are comprised of equipment and related installation costs purchased for or used in subscriber contracts in which the Company retains ownership to the equipment are classified as investing activities and reported as “Subscriber acquisition costs—company owned equipment”. All other subscriber acquisition costs are classified as operating activities and reported as “Subscriber acquisition costs—deferred contract costs” on the condensed consolidated statements of cash flows as these assets represent deferred costs associated with customer contracts. | Subscriber Acquisition Costs On the consolidated statement of cash flows, subscriber acquisition costs that are comprised of equipment and related installation costs purchased for or used in subscriber contracts in which the Company retains ownership to the equipment are classified as investing activities and reported as “Subscriber acquisition costs—company owned equipment.” All other subscriber acquisition costs are classified as operating activities and reported as “Subscriber acquisition costs—deferred contract costs” on the consolidated statements of cash flows as these assets represent deferred costs associated with the creation of customer contracts. |
Cash and Cash Equivalents | Cash and Cash Equivalents— | Cash and Cash Equivalents |
Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents |
Accounts Receivable | Accounts Receivable The changes in the Company’s allowance for accounts receivable were as follows for the periods ended (in thousands): Three Months Ended March 31, 2016 2015 Beginning balance $ 3,541 $ 3,373 Provision for doubtful accounts 3,980 3,557 Write-offs and adjustments (4,499 ) (4,022 ) Balance at end of period $ 3,022 $ 2,908 | Accounts Receivable The changes in the Company’s allowance for accounts receivable were as follows for the periods ended (in thousands): Year ended December 31, 2015 2014 2013 Beginning balance $ 3,373 $ 1,901 $ 2,301 Provision for doubtful accounts 14,924 15,656 10,360 Write-offs and adjustments (14,756 ) (14,184 ) (10,760 ) Balance at end of period $ 3,541 $ 3,373 $ 1,901 |
Inventories | Inventories | Inventories |
Long-lived Assets and Intangibles | Long-lived Assets and Intangibles During the fiscal quarter ended March 31, 2016, the Company adopted guidance issued by the Financial Accounting Standards Board (“FASB”) which provides new standards to determine whether a cloud computing arrangement includes a software license. The guidance requires the company to determine if an internal use software obtained in a cloud hosting arrangement contains a contractual right to take possession of the software and if it is feasible to either run the software on internal hardware or contract with an unrelated vendor to host the software. If both criteria are met, the company will consider the arrangement to include a software license and classify the purchase as an intangible. The company has elected to adopt the guidance prospectively to all arrangements entered into or materially modified after the beginning of 2016. The company did not enter into, or modify, any material arrangements during the fiscal quarter ended March 31, 2016. | Long-lived Assets and Intangibles |
Long-term Investments | Long-term Investments | Long-term Investments |
Deferred Financing Costs | Deferred Financing Costs During the fiscal quarter ended March 31, 2016, the Company adopted guidance issued by the FASB requiring debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The Company has applied this retrospectively resulting in a reduction to deferred financing costs, net by $40.2 million as of December 31, 2015 with a corresponding decrease to notes payable, net. | Deferred Financing Costs |
Residual Income Plan | Residual Income Plan | Residual Income Plan |
Stock-Based Compensation | Stock-Based Compensation | Stock-Based Compensation |
Advertising Expense | Advertising Expense | Advertising Expense |
Income Taxes | Income Taxes The Company recognizes the effect of an uncertain income tax position on the income tax return at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. The Company’s policy for recording interest and penalties is to record such items as a component of the provision for income taxes. | Income Taxes The Company recognizes the effect of an uncertain income tax position on the income tax return at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. The Company’s policy for recording interest and penalties is to record such items as a component of the provision for income taxes. |
Contracts Sold | Contracts Sold | |
Concentrations of Credit Risk | Concentrations of Credit Risk | Concentrations of Credit Risk |
Concentrations of Supply Risk | Concentrations of Supply Risk | Concentrations of Supply Risk |
Fair Value Measurement | Fair Value Measurement Level 1: Quoted prices in active markets that are accessible at the measurement date for assets and liabilities. Level 2: Observable prices that are based on inputs not quoted in active markets, but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. This hierarchy requires the Company to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value. The Company recognizes transfers between levels of the hierarchy based on the fair values of the respective financial measurements at the end of the reporting period in which the transfer occurred. There were no transfers between levels of the fair value hierarchy during the three months ended March 31, 2016 and 2015. The carrying amounts of the Company’s accounts receivable, accounts payable and accrued and other liabilities approximate their fair values due to their short maturities. | Fair Value Measurement Level 1: Quoted prices in active markets that are accessible at the measurement date for assets and liabilities. Level 2: Observable prices that are based on inputs not quoted in active markets, but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. This hierarchy requires the Company to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value. The Company recognizes transfers between levels of the hierarchy based on the fair values of the respective financial measurements at the end of the reporting period in which the transfer occurred. There were no transfers between levels of the fair value hierarchy during the years ended December 31, 2015 and 2014. The carrying amounts of the Company’s accounts receivable, accounts payable and accrued and other liabilities approximate their fair values due to their short maturities. |
Goodwill | Goodwill | Goodwill |
Foreign Currency Translation and Other Comprehensive Income | Foreign Currency Translation and Other Comprehensive Income When intercompany foreign currency transactions between entities included in the consolidated financial statements are of a long term investment nature (i.e., those for which settlement is not planned or anticipated in the foreseeable future) foreign currency translation adjustments resulting from those transactions are included in stockholders’ deficit as accumulated other comprehensive loss. When intercompany transactions are deemed to be of a short term nature, translation adjustments are required to be included in the condensed consolidated statement of operations. Translation gains related to intercompany balances were $4.7 million and $0 for the three months ended March 31, 2016 and 2015, respectively. | Foreign Currency Translation and Other Comprehensive Income When intercompany foreign currency transactions between entities included in the consolidated financial statements are of a long term investment nature (i.e., those for which settlement is not planned or anticipated in the foreseeable future) foreign currency translation adjustments resulting from those transactions are included in stockholders’ (deficit) equity as accumulated other comprehensive loss. When intercompany transactions are deemed to be of a short term nature, translation adjustments are required to be included in the consolidated statement of operations. Beginning in July 2015, we determined that settlement of these intercompany balances was anticipated and therefore these balances are not considered to be long-term investments and any subsequent translation gains or losses are recorded in income. Translation losses related to intercompany balances were $9.4 million, $0 and $0 for the years ended December 31, 2015, 2014, and 2013, respectively. |
Letters of Credit | Letters of Credit | Letters of Credit |
New Accounting Pronouncements | New Accounting Pronouncements In March 2016, the FASB issued ASU 2016-08 to clarify the implementation guidance on principal versus agent considerations as it relates to Revenue from Contracts with Customers (Topic 606). This update is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017 and must be applied retrospectively, with early adoption permitted. The Company is evaluating the new guidance and plans to provide additional information about its expected impact at a future date. In March 2016, the FASB issued ASU 2016-07 which eliminates the requirement to retroactively adopt the equity method of accounting when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence. This update is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016 and must be applied prospectively, with early adoption permitted. The Company plans to adopt this update on the effective date and the adoption is not expected to materially impact the consolidated financial statements. In March 2016, the FASB issued ASU 2016-06 to clarify the assessment of contingent put and call options in debt instruments as it relates to Derivatives and Hedging (Topic 815). The amendments in this update clarify the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under the amendments in this update is required to assess the embedded call (put) options solely in accordance with the four-step decision sequence. This update is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016 and must be applied using a modified retrospective approach, with early adoption permitted. The Company plans to adopt this update on the effective date and is not expected to materially impact the consolidated financial statements. In February 2016, the FASB issued ASU 2016-02 to increase transparency and comparability among organizations as it relates to lease assets and lease liabilities. The update requires that lease assets and lease liabilities be recognized on the balance sheet, and that key information about leasing arrangements be disclosed. Prior to this update, GAAP did not require operating leases to be recognized as lease assets and lease liabilities on the balance sheet. This update is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018 and must be applied using a modified retrospective approach, with early adoption permitted. The Company is evaluating the new guidance and plans to provide additional information about its expected impact at a future date. In January 2016, the FASB issued ASU 2016-01 to address certain aspects of the recognition, measurement, presentation, and disclosure of financial instruments. The main provisions of this update require equity investments to be measured at fair value with changes in fair value recognized in earnings, allows a company to value equity investments without a readily determined fair value at cost, less any impairments, and simplifies the assessment of impairments of equity investments without a readily determinable fair value by requiring a qualitative assessment. This update is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. An entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity investments that exist as of the date of adoption of the Update. Early adoption is permitted. The Company is evaluating the new guidance and plans to provide additional information about its expected impact at a future date. In July 2015, the FASB issued ASU 2015-11 to simplify the measurement of inventory. Prior to this update, GAAP required the measurement of inventory at the lower of cost or market, where market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. This update requires that an entity measure inventory at the lower of cost or net realizable value, where net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This guidance is effective for fiscal years beginning after December 15, 2016, and for interim periods within those fiscal years and should be applied prospectively, with early adoption permitted. The Company plans to adopt this update on the effective date and the adoption is not expected to impact the consolidated financial statements. In May 2014, the FASB issued ASU 2014-09 which clarifies the principles used to recognize revenue for all entities. The new guidance requires companies to recognize revenue when it transfers goods or services to a customer in an amount that reflects the consideration to which a company expects to be entitled. Pursuant to ASU 2015-14, the guidance is effective for annual and interim periods beginning after December 15, 2017. The guidance allows for either a “full retrospective” adoption or a “modified retrospective” adoption, with early adoption permitted. The Company is evaluating the new guidance and plans to provide additional information about its expected impact at a future date. | New Accounting Pronouncements In July 2015, the Financial Accounting Standards Board issued authoritative guidance to simplify the measurement of inventory. Prior to this update, generally accepted accounting principles required the measurement of inventory at the lower of cost or market, where market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. This update requires that an entity measure inventory at the lower of cost or net realizable value, where net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This guidance is effective for fiscal years beginning after December 15, 2016, and for interim periods within fiscal years beginning after December 15, 2017 and should be applied prospectively, with early adoption permitted. The Company plans to adopt this update on the effective date and is not expected to materially impact the consolidated financial statements. In May 2015, the Financial Accounting Standards Board issued authoritative guidance related to customer’s accounting for fees paid in a cloud computing arrangement and is issued in an attempt to simplify existing generally accepted accounting principles. The update provides guidance to help entities determine whether a cloud computing arrangement includes a software license. This guidance is effective for fiscal years beginning after December 15, 2015, and for interim periods within fiscal years beginning after December 15, 2016 with early adoption permitted. The Company plans to adopt this update on the effective date and is not expected to materially impact the consolidated financial statements. In April 2015, the Financial Accounting Standards Board issued authoritative guidance (“ASU 2015-03”) to simplify the presentation of debt issuance costs. This update requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The guidance is effective for fiscal years beginning after December 15, 2015, and for interim periods within fiscal years beginning after December 15, 2016. Effective January 1, 2016, the Company adopted this standard resulting in a retrospective reduction to deferred financing costs, net by $40.2 million and $48.1 million as of December 31, 2015 and December 31, 2014, respectively, with a corresponding decrease to notes payable, net. This update does not impact the consolidated statements of operations, consolidated statements of comprehensive loss or consolidated statements of cash flows. In August 2014, the Financial Accounting Standards Board issued authoritative guidance which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. This update is effective for fiscal years, and interim periods within those years, beginning on or after December 15, 2016, with early adoption permitted. The Company is evaluating the new guidance and plan to provide additional information about its expected impact at a future date. In May 2014, the Financial Accounting Standards Board issued authoritative guidance which clarifies the principles used to recognize revenue for all entities. The new guidance requires companies to recognize revenue when it transfers goods or services to a customer in an amount that reflects the consideration to which a company expects to be entitled. The guidance is effective for annual and interim periods beginning after December 15, 2017. The guidance allows for either a “full retrospective” adoption or a “modified retrospective” adoption, however early adoption is not permitted. The Company is currently evaluating the impact the adoption of this guidance will have on its consolidated financial statements. |
Basis of Presentation and Sig30
Basis of Presentation and Significant Accounting Policies (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | ||
Changes in Company's Allowance for Accounts Receivable | The changes in the Company’s allowance for accounts receivable were as follows for the periods ended (in thousands): Three Months Ended March 31, 2016 2015 Beginning balance $ 3,541 $ 3,373 Provision for doubtful accounts 3,980 3,557 Write-offs and adjustments (4,499 ) (4,022 ) Balance at end of period $ 3,022 $ 2,908 | The changes in the Company’s allowance for accounts receivable were as follows for the periods ended (in thousands): Year ended December 31, 2015 2014 2013 Beginning balance $ 3,373 $ 1,901 $ 2,301 Provision for doubtful accounts 14,924 15,656 10,360 Write-offs and adjustments (14,756 ) (14,184 ) (10,760 ) Balance at end of period $ 3,541 $ 3,373 $ 1,901 |
Restructuring and Asset Impai31
Restructuring and Asset Impairment Charges (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | ||
Schedule of Restructuring and Asset Impairment Charges | Restructuring and asset impairment charges for the three months ended March 31, 2016 were as follows (in thousands): Three Months Ended Contract termination costs $ 19 Employee severance and termination benefits 26 Total restructuring and asset impairment charges $ 45 | Restructuring and asset impairment charges were as follows (in thousands): Year ended Asset impairments $ 53,228 Contract termination costs 4,767 Employee severance and termination benefits 1,202 Total restructuring and asset impairment charges $ 59,197 |
Summary of Restructuring Activity | Contract termination costs Employee severance and termination benefits Total Accrued restructuring balance as of December 31, 2015 $ 3,954 $ 321 $ 4,275 Restructuring and impairment charges 19 26 45 Cash payments (1,349 ) (143 ) (1,492 ) Accrued restructuring balance as of March 31, 2016 $ 2,624 $ 204 $ 2,828 | During the year ended December 31, 2014, the Company did not incur any restructuring and asset impairment charges. Asset Contract Employee severance and Total Accrued restructuring balance as of December 31, 2014 $ — $ — $ — $ — Restructuring and impairment charges 53,228 4,767 1,202 59,197 Cash payments (10 ) (623 ) (881 ) (1,514 ) Non-cash settlements (53,218 ) (190 ) — (53,408 ) Accrued restructuring balance as of December 31, 2015 $ — $ 3,954 $ 321 $ 4,275 |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Space Monkey Acquisition [Member] | |
Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair value of the assets acquired and liabilities assumed at the time of acquisition (in thousands): Net assets acquired from Space Monkey $ 404 Deferred tax liability (1,106 ) Intangible assets (See Note 10) 8,300 Goodwill 7,402 Total estimated fair value of the assets acquired and liabilities assumed $ 15,000 |
Smartrove Acquisition [Member] | |
Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed | The associated goodwill is not deductible for income tax purposes. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the time of acquisition (in thousands): Net assets acquired from Smartrove—Cash $ 3 Deferred income tax liability (1,533 ) Intangible assets (See Note 10) 4,040 Goodwill 1,765 Total fair value of the assets acquired and liabilities assumed $ 4,275 |
Wildfire Acquisition [Member] | |
Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair value of the assets acquired and liabilities assumed at the time of acquisition (in thousands): Net assets acquired from Wildfire $ 96 Intangible assets (See Note 10) 2,900 Goodwill 504 Total cash consideration $ 3,500 |
Divestiture of Subsidiary (Tabl
Divestiture of Subsidiary (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Net Gain Recognized in Connection with Divestiture | The following table summarizes the net gain recognized in connection with this divestiture (in thousands): Adjusted net sale price $ 148,871 2GIG assets (including cash of $3,383), net of liabilities (109,053 ) 2.0 technology, net of amortization 16,903 Other (9,855 ) Net gain on divestiture $ 46,866 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Debt Disclosure [Abstract] | ||
Summary of Debt | The Company’s debt at March 31, 2016 consisted of the following (in thousands): Outstanding Principal Unamortized Premium Unamortized Net Carrying Amount Series C Revolving Credit Facility Due 2017 $ 2,592 $ — $ — $ 2,592 Series A, B Revolving Credit Facilities Due 2019 33,408 — — 33,408 6.375% Senior Secured Notes due 2019 925,000 — (18,890 ) 906,110 8.75% Senior Notes due 2020 930,000 6,769 (17,927 ) 918,842 8.875% Senior Secured Notes Due 2022 300,000 (3,607 ) (1,128 ) 295,265 Total Notes payable $ 2,191,000 $ 3,162 $ (37,945 ) $ 2,156,217 The Company’s debt at December 31, 2015 consisted of the following (in thousands): Outstanding Principal Unamortized Premium Unamortized Net Carrying Amount Series C Revolving Credit Facility Due 2017 $ 1,440 $ — $ — $ 1,440 Series A, B Revolving Credit Facilities Due 2019 18,560 — — 18,560 6.375% Senior Secured Notes due 2019 925,000 — (20,182 ) 904,818 8.75% Senior Notes due 2020 930,000 7,060 (18,892 ) 918,168 8.875% Senior Secured Notes due 2022 300,000 (3,704 ) (1,170 ) 295,126 Total Notes payable $ 2,175,000 $ 3,356 $ (40,244 ) $ 2,138,112 | The Company’s debt at December 31, 2015 had maturity dates of 2017 and beyond and consisted of the following (in thousands): Outstanding Unamortized Unamortized Net Series C Revolving Credit Facility due 2017 $ 1,440 $ — $ — $ 1,440 Series A, B Revolving Credit Facilities due 2019 18,560 — — 18,560 6.375% Senior Secured Notes due 2019 925,000 — (20,182 ) 904,818 8.75% Senior Notes due 2020 930,000 7,060 (18,892 ) 918,168 8.875% Senior Secured Notes due 2022 300,000 (3,704 ) (1,170 ) 295,126 Total Notes payable $ 2,175,000 $ 3,356 $ (40,244 ) $ 2,138,112 The Company’s debt at December 31, 2014 consisted of the following (in thousands): Outstanding Unamortized Unamortized Net Revolving credit facility due 2017 $ 20,000 $ — $ — $ 20,000 6.375% Senior Secured Notes due 2019 925,000 — (25,316 ) 899,684 8.75% Senior Notes due 2020 930,000 8,155 (22,771 ) 915,384 Total Notes payable $ 1,875,000 $ 8,155 $ (48,087 ) $ 1,835,068 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Schedule of Balance Sheet Component Balances | The following table presents balance sheet component balances (in thousands): March 31, 2016 December 31, 2015 Subscriber acquisition costs Subscriber acquisition costs $ 1,024,207 $ 958,261 Accumulated amortization (195,913 ) (167,617 ) Subscriber acquisition costs, net $ 828,294 $ 790,644 Accrued payroll and commissions Accrued payroll $ 15,510 $ 18,071 Accrued commissions 10,491 20,176 Total accrued payroll and commissions $ 26,001 $ 38,247 Accrued expenses and other current liabilities Accrued interest payable $ 58,918 $ 17,153 Loss contingencies 2,154 2,504 Other 15,541 15,916 Total accrued expenses and other current liabilities $ 76,613 $ 35,573 | The following table presents balance sheet component balances as of December 31, 2015 and December 31, 2014 (in thousands): December 31, 2015 2014 Subscriber acquisition costs Subscriber acquisition costs $ 958,261 $ 628,739 Accumulated amortization (167,617 ) (80,666 ) Subscriber acquisition costs, net $ 790,644 $ 548,073 Long-term investments and other assets Notes receivable, net of allowance (See Note 16) $ 977 $ 600 Security deposit receivable 6,363 6,606 Investments (See Note 7) 3,486 3,306 Other 67 21 Total long-term investments and other assets, net $ 10,893 $ 10,533 Accrued payroll and commissions Accrued payroll $ 18,071 $ 16,432 Accrued commissions 20,176 21,547 Total accrued payroll and commissions $ 38,247 $ 37,979 Accrued expenses and other current liabilities Accrued interest payable $ 17,153 $ 11,695 Loss contingencies 2,504 9,663 Other 15,916 7,504 Total accrued expenses and other current liabilities $ 35,573 $ 28,862 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | ||
Components of Property and Equipment | Property and equipment consisted of the following (in thousands): March 31, 2016 December 31, 2015 Estimated Useful Lives Vehicles $ 26,835 $ 26,935 3 - 5 years Computer equipment and software 23,377 21,702 3 - 5 years Leasehold improvements 17,615 17,434 2 - 15 years Office furniture, fixtures and equipment 12,537 11,776 7 years Buildings 702 702 39 years Construction in process 4,333 3,837 85,399 82,386 Accumulated depreciation and amortization (30,230 ) (27,112 ) Net property and equipment $ 55,169 $ 55,274 | Property and equipment consisted of the following (in thousands): December 31, Estimated 2015 2014 Vehicles $ 26,935 $ 20,728 3-5 years Computer equipment and software 21,702 18,069 3-5 years Leasehold improvements 17,434 13,606 2-15 years Office furniture, fixtures and equipment 11,776 9,089 7 years Buildings 702 702 39 years Wireless Internet Infrastructure — 3,866 3-5 years Construction in process 3,837 12,601 82,386 78,661 Accumulated depreciation and amortization (27,112 ) (15,871 ) Net property and equipment $ 55,274 $ 62,790 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the years ended December 31, 2015 and 2014, were as follows (in thousands): Balance as of January 1, 2014 $ 836,318 Goodwill resulting from Wildfire acquisition 504 Goodwill resulting from Space Monkey acquisition 7,402 Effect of Foreign Currency Translation (2,702 ) Balance as of December 31, 2014 841,522 Goodwill Impaired due to Wireless Restructuring (see Note 3) (2,270 ) Effect of Foreign Currency Translation (4,836 ) Balance as of December 31, 2015 $ 834,416 | |
Schedule of Intangible Asset Balances | The following table presents intangible asset balances (in thousands): March 31, 2016 December 31, 2015 Gross Accumulated Net Gross Accumulated Net Estimated Useful Lives Definite-lived intangible assets: Customer contracts $ 967,653 $ (460,040 ) $ 507,613 $ 962,842 $ (430,803 ) $ 532,039 10 years 2GIG 2.0 technology 17,000 (7,918 ) 9,082 17,000 (7,064 ) 9,936 8 years CMS and other technology 7,067 (3,850 ) 3,217 7,067 (3,438 ) 3,629 5 years Space Monkey technology 7,100 (1,138 ) 5,962 7,100 (761 ) 6,339 6 years Patents 7,813 (2,502 ) 5,311 7,524 (2,094 ) 5,430 5 years Non-compete agreements 1,200 (950 ) 250 1,200 (800 ) 400 2-3 years Total definite-lived intangible assets: 1,007,833 (476,398 ) 531,435 1,002,733 (444,960 ) 557,773 Indefinite-lived intangible assets: IP addresses 564 — 564 564 — 564 Domain names 58 — 58 58 — 58 Total Indefinite-lived intangible assets 622 — 622 622 — 622 Total intangible assets, net $ 1,008,455 $ (476,398 ) $ 532,057 $ 1,003,355 $ (444,960 ) $ 558,395 | The following table presents intangible asset balances as of December 31, 2015 and 2014 (in thousands): December 31, Estimated 2015 2014 Definite-lived intangible assets: Customer contracts $ 962,842 $ 978,776 10 years 2GIG 2.0 technology 17,000 17,000 8 years Patents 7,524 6,518 5 years Space Monkey technology 7,100 7,100 6 years CMS and other technology 7,067 7,067 5 years Non-compete agreements 1,200 2,000 2-3 years Wireless internet technologies — 4,690 2-3 years 1,002,733 1,023,151 Accumulated amortization (444,960 ) (320,198 ) Definite-lived intangible assets, net 557,773 702,953 Indefinite-lived intangible assets: IP addresses 564 214 Domain names 58 59 Total indefinite-lived intangible assets 622 273 Total intangible assets, net $ 558,395 $ 703,226 |
Schedule of Estimated Future Amortization Expense of Intangible Assets Excluding Patents Currently in Process | Estimated future amortization expense of intangible assets, excluding approximately $0.4 million in patents currently in process, is as follows as of March 31, 2016 (in thousands): 2016—Remaining Period $ 87,447 2017 101,340 2018 89,755 2019 78,114 2020 67,351 Thereafter 107,061 Total estimated amortization expense $ 531,068 | Estimated future amortization expense of intangible assets, excluding approximately $0.4 million in patents currently in process, is as follows as of December 31, 2015 (in thousands): 2016 $ 116,096 2017 100,808 2018 89,277 2019 77,696 2020 66,984 Thereafter 106,526 Total estimated amortization expense $ 557,387 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | ||
Financial Instruments at Fair Value Based on Valuation Approach Applied to Each Class of Security | Components of long-term debt including the associated interest rates and related fair values are as follows (in thousands, except interest rates): March 31, 2016 December 31, 2015 Stated Interest Issuance Face Value Estimated Face Value Estimated 2019 Notes $ 925,000 $ 929,625 $ 925,000 $ 879,906 6.375 % 2020 Notes 930,000 802,125 930,000 756,788 8.75 % 2022 Notes 300,000 304,909 300,000 296,296 8.875 % Total $ 2,155,000 $ 2,036,659 $ 2,155,000 $ 1,932,990 — | The following summarizes the financial instruments of the Company, measured at fair value on a recurring basis, based on the valuation approach applied to each class of security as of December 31, 2014 (in thousands): Fair Value Measurement at Reporting Date Using Balance at Quoted Prices (Level 1) Significant (Level 2) Significant (Level 3) Assets: Cash equivalents: Money market funds $ 1 $ 1 $ — $ — Restricted cash equivalents: Money market funds 14,214 14,214 — — Total assets $ 14,215 $ 14,215 $ — $ — |
Components of Long-Term Debt Including Associated Interest Rates and Related Fair Values | Components of long-term debt including the associated interest rates and related fair values (in thousands, except interest rates): Issuance December 31, 2015 December 31, 2014 Stated Interest Face Value Estimated Fair Value Face Value Estimated Fair Value 2019 Notes $ 925,000 $ 879,906 $ 925,000 $ 881,063 6.375 % 2020 Notes 930,000 756,788 930,000 792,825 8.75 % 2022 Notes 300,000 296,296 — — 8.875 % Total $ 2,155,000 $ 1,932,990 $ 1,855,000 $ 1,673,888 — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Provision | Income tax provision consisted of the following (in thousands): Year ended December 31, 2015 2014 2013 Current income tax: Federal $ — $ — $ (579 ) State 392 779 (1,351 ) Foreign (1 ) — (145 ) Total 391 779 (2,075 ) Deferred income tax: Federal — (925 ) 8,614 State — (181 ) (1,938 ) Foreign (40 ) 841 (1,009 ) Total (40 ) (265 ) 5,667 Provision for income taxes $ 351 $ 514 $ 3,592 |
Reconciliation of Tax Expense Computed at Statutory Federal Rate and Company's Tax Expense | The following reconciles the tax expense computed at the statutory federal rate and the Company’s tax expense (in thousands): Year ended December 31, 2015 2014 2013 Computed expected tax expense $ (94,737 ) $ (81,107 ) $ (41,113 ) State income taxes, net of federal tax effect 259 395 (2,171 ) Foreign income taxes 202 1,645 136 Permanent differences 1,980 2,261 1,215 Change in valuation allowance 92,647 77,320 45,525 Provision for income taxes $ 351 $ 514 $ 3,592 |
Significant Portions of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities were as follows (in thousands): December 31, 2015 2014 Gross deferred tax assets: Net operating loss carryforwards $ 642,391 $ 544,793 Deferred subscriber income 13,722 7,433 Accrued expenses and allowances 15,415 9,474 Purchased intangibles 10,576 4,579 Inventory reserves 9,333 4,156 Property and Equipment 3,257 — Alternative minimum tax credit and research and development credit 41 41 Valuation allowance (234,771 ) (139,585 ) 459,964 430,891 Gross deferred tax liabilities: Deferred subscriber acquisition costs (466,783 ) (437,595 ) Property and equipment — (1,715 ) Prepaid expenses (705 ) (644 ) (467,488 ) (439,954 ) Net deferred tax liabilities $ (7,524 ) $ (9,063 ) |
Summary of Net Operating Loss Carryforwards | The Company had net operating loss carryforwards as follows (in thousands): December 31, 2015 2014 Net operating loss carryforwards: United States $ 1,695,386 $ 1,355,632 State 1,338,742 1,301,462 Canada 28,629 30,688 New Zealand 5,518 4,203 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Summary of Incentive Unit Activity | A summary of the Incentive Unit activity for the years ended December 31, 2015 and 2014 is presented below: Incentive Units Weighted Average Per Share Weighted Average Life (Years) Aggregate Outstanding, December 31, 2013 68,459,562 $ 1.00 9.12 $ 20,537,869 Granted 7,375,000 1.30 Forfeited (1,306,620 ) 1.00 Exercised — — Outstanding, December 31, 2014 74,527,942 $ 1.03 8.19 $ 20,145,882 Granted 3,850,000 2.40 Forfeited (4,415,106 ) 1.03 Exercised — — Outstanding, December 31, 2015 73,962,836 $ 1.06 7.31 $ 104,562,869 Unvested shares expected to vest after December 31, 2015 59,474,350 $ 1.06 7.34 $ 83,642,766 Exercisable at December 31, 2015 14,488,486 $ 1.03 7.18 $ 20,920,103 | |
Stock-Based Compensation Expense | Stock-based compensation expense in connection with all stock-based awards is presented as follows (in thousands): Three Months Ended March 31, 2016 2015 Operating expenses $ 14 $ 14 Selling expenses (294 ) 33 General and administrative expenses 338 742 Total stock-based compensation $ 58 $ 789 | Stock-based compensation expense in connection with all stock-based awards for the years ended December 31, 2015, 2014 and 2013 is allocated as follows (in thousands): Year ended December 31, 2015 2014 2013 Operating expenses $ 71 $ 63 $ 62 Selling expenses 578 185 158 General and administrative expenses 2,472 1,688 1,736 Total stock-based compensation $ 3,121 $ 1,936 $ 1,956 |
Vivint Stock Appreciation Rights [Member] | ||
Summary of the SAR Activity | A summary of the SAR activity for the years ended December 31, 2015 and 2014 is presented below: Stock Appreciation Weighted Average Per Share Weighted Average Life (Years) Aggregate Outstanding, December 31, 2013 7,906,250 $ 1.00 9.55 $ 2,371,875 Granted 1,290,000 1.30 Forfeited (2,499,590 ) 1.04 Exercised — — Outstanding, December 31, 2014 6,696,660 $ 1.04 8.62 $ 1,734,748 Converted 3,259,934 0.70 8.62 Granted 11,186,936 1.03 Forfeited (2,307,172 ) 0.80 Exercised (172,221 ) 0.68 Outstanding, December 31, 2015 18,664,137 $ 0.87 8.66 $ 3,628,498 Unvested shares expected to vest after December 31, 2015 16,956,220 $ 0.89 8.79 $ 3,041,171 Exercisable at December 31, 2015 1,707,917 $ 0.73 7.90 $ 587,327 | |
Wireless Stock Appreciation Rights [Member] | ||
Summary of the SAR Activity | A summary of the SAR activity for the year ended December 31, 2015 and 2014 is presented below: Stock Appreciation Weighted Average Per Share Weighted Aggregate Outstanding, December 31, 2013 70,000 $ 5.00 9.42 — Granted — — Forfeited — — Exercised — — Outstanding, December 31, 2014 70,000 $ 5.00 8.41 — Granted 11,000 65.84 Forfeited — — Exercised — — Outstanding, December 31, 2015 81,000 $ 13.26 7.66 — Unvested shares expected to vest after December 31, 2015 49,700 $ 14.43 7.69 — Exercisable at December 31, 2015 31,300 $ 11.41 7.60 — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Future Minimum Lease Payments | As of December 31, 2015, future minimum lease payments were as follows (in thousands): Operating Capital Total 2016 $ 17,274 $ 8,440 $ 25,714 2017 16,652 8,281 24,933 2018 15,007 3,298 18,305 2019 14,789 30 14,819 2020 13,075 11 13,086 Thereafter 63,188 — 63,188 Amounts representing interest — (1,272 ) (1,272 ) Total lease payments $ 139,985 $ 18,788 $ 158,773 | |
Operating Leases of Lessee Disclosure | The Company’s operating lease arrangements and related terms consisted of the following (in thousands): Rent Expense For the three months ended, March 31, 2016 March 31, 2015 Lease Term Arrangement Warehouse, office space and other $ 2,812 $ 2,923 11 - 15 years Wireless towers and spectrum 1,162 662 1 - 10 years Total Rent Expense $ 3,974 $ 3,585 |
Segment Reporting and Busines42
Segment Reporting and Business Concentrations (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting [Abstract] | ||
Summary of Revenue, Costs and Expenses and Assets | The following table presents a summary of revenue, costs and expenses and assets as of December 31, 2013 (in thousands): Vivint 2GIG Eliminations Consolidated Revenues $ 483,401 $ 60,220 $ (42,713 ) $ 500,908 All other costs and expenses 536,502 52,200 (32,914 ) 555,788 (Loss) income from operations $ (53,101 ) $ 8,020 $ (9,799 ) $ (54,880 ) Intangible assets, including goodwill $ 1,677,032 $ — $ — $ 1,677,032 Total assets $ 2,303,644 $ — $ — $ 2,303,644 | |
Revenues and Long-Lived Assets by Geographic Region | Revenues and long-lived assets by geographic region were as follows (in thousands): United States Canada Total As of and for the three months ended March 31, 2016 Revenue from external customers $ 161,251 $ 13,002 $ 174,253 Property and equipment, net 55,032 137 55,169 Three months ended March 31, 2015 Revenue from external customers $ 139,705 $ 12,492 $ 152,197 As of December 31, 2015 Property and equipment, net $ 55,103 $ 171 $ 55,274 | Revenues and long-lived assets by geographic region were as follows (in thousands): United States Canada Total As of and for the Year ended December 31, 2015 Revenue from external customers $ 602,418 $ 51,303 $ 653,721 Property and equipment, net 55,103 171 55,274 Year ended December 31, 2014 Revenue from external customers $ 529,521 $ 34,156 $ 563,677 Property and equipment, net 62,368 422 62,790 Year ended December 31, 2013 Revenue from external customers $ 474,344 $ 26,564 $ 500,908 Property and equipment, net 35,220 598 35,818 |
Guarantor and Non-Guarantor S43
Guarantor and Non-Guarantor Supplemental Financial Information (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Text Block [Abstract] | ||
Condensed Consolidating Balance Sheet | Supplemental Condensed Consolidating Balance Sheet March 31, 2016 (In thousands) (unaudited) Parent APX Group, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets $ — $ 3,640 $ 130,490 $ 5,307 $ (56,833 ) $ 82,604 Property and equipment, net — — 54,946 223 — 55,169 Subscriber acquisition costs, net — — 760,052 68,242 — 828,294 Deferred financing costs, net — 5,948 — — — 5,948 Investment in subsidiaries — 2,088,923 — — (2,088,923 ) — Intercompany receivable — — 18,732 — (18,732 ) — Intangible assets, net — — 492,419 39,638 — 532,057 Goodwill — — 809,678 26,420 — 836,098 Long-term investments and other assets — 106 10,663 15 (106 ) 10,678 Total Assets $ — $ 2,098,617 $ 2,276,980 $ 139,845 $ (2,164,594 ) $ 2,350,848 Liabilities and Stockholders’ (Deficit) Equity Current liabilities $ — $ 61,667 $ 169,003 $ 63,731 $ (56,833 ) $ 237,568 Intercompany payable — — — 18,732 (18,732 ) — Notes payable and revolving credit facility, net of current portion — 2,156,217 — — — 2,156,217 Capital lease obligations, net of current portion — — 9,825 2 — 9,827 Deferred revenue, net of current portion — — 43,058 4,183 — 47,241 Other long-term obligations — — 11,225 — — 11,225 Accumulated losses of investee 119,267 (119,267 ) — Deferred income tax liability — — 106 8,037 (106 ) 8,037 Total (deficit) equity (119,267 ) (119,267 ) 2,043,763 45,160 (1,969,656 ) (119,267 ) Total liabilities and stockholders’ (deficit) equity $ — $ 2,098,617 $ 2,276,980 $ 139,845 $ (2,164,594 ) $ 2,350,848 Supplemental Condensed Consolidating Balance Sheet December 31, 2015 (In thousands) Parent APX Group, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets $ — $ 2,537 $ 91,555 $ 6,540 $ (53,066 ) $ 47,566 Property and equipment, net — — 55,012 262 — 55,274 Subscriber acquisition costs, net — — 728,547 62,097 — 790,644 Deferred financing costs, net — 6,456 — — — 6,456 Investment in subsidiaries — 2,070,404 — — (2,070,404 ) — Intercompany receivable — — 22,398 — (22,398 ) — Intangible assets, net — — 519,301 39,094 — 558,395 Goodwill — — 809,678 24,738 — 834,416 Long-term investments and other assets — 106 10,880 13 (106 ) 10,893 Total Assets $ — $ 2,079,503 $ 2,237,371 $ 132,744 $ (2,145,974 ) $ 2,303,644 Liabilities and Stockholders’ (Deficit) Equity Current liabilities $ — $ 18,384 $ 143,896 $ 59,304 $ (53,066 ) $ 168,518 Intercompany payable — — — 22,398 (22,398 ) — Notes payable and revolving credit facility, net of current portion — 2,138,112 — — — 2,138,112 Capital lease obligations, net of current portion — — 11,169 2 — 11,171 Deferred revenue, net of current portion — — 40,960 3,822 — 44,782 Accumulated Losses of Investee 76,993 — — — (76,993 ) — Other long-term obligations — — 10,530 — — 10,530 Deferred income tax liability — — 106 7,524 (106 ) 7,524 Total (deficit) equity (76,993 ) (76,993 ) 2,030,710 39,694 (1,993,411 ) (76,993 ) Total liabilities and stockholders’ (deficit) equity $ — $ 2,079,503 $ 2,237,371 $ 132,744 $ (2,145,974 ) $ 2,303,644 | Condensed Consolidating Balance Sheet December 31, 2015 (In thousands) Parent APX Group, Inc. Guarantor Non-Guarantor Eliminations Consolidated Assets Current assets $ — $ 2,537 $ 91,555 $ 6,540 $ (53,066 ) $ 47,566 Property and equipment, net — — 55,012 262 — 55,274 Subscriber acquisition costs, net — — 728,547 62,097 — 790,644 Deferred financing costs, net — 6,456 — — — 6,456 Investment in subsidiaries — 2,070,404 — — (2,070,404 ) — Intercompany receivable — — 22,398 — (22,398 ) — Intangible assets, net — — 519,301 39,094 — 558,395 Goodwill — — 809,678 24,738 — 834,416 Long-term investments and other assets — 106 10,880 13 (106 ) 10,893 Total Assets $ — $ 2,079,503 $ 2,237,371 $ 132,744 $ (2,145,974 ) $ 2,303,644 Liabilities and Stockholders’ Equity Current liabilities $ — $ 18,384 $ 143,896 $ 59,304 $ (53,066 ) $ 168,518 Intercompany payable — — — 22,398 (22,398 ) — Notes payable and revolving line of credit, net of current portion — 2,138,112 — — — 2,138,112 Capital lease obligations, net of current portion — — 11,169 2 — 11,171 Deferred revenue, net of current portion — — 40,960 3,822 — 44,782 Accumulated losses of investee 76,993 — — — (76,993 ) — Other long-term obligations — — 10,530 — — 10,530 Deferred income tax liability — — 106 7,524 (106 ) 7,524 Total equity (76,993 ) (76,993 ) 2,030,710 39,694 (1,993,411 ) (76,993 ) Total liabilities and stockholders’ equity $ — $ 2,079,503 $ 2,237,371 $ 132,744 $ (2,145,974 ) $ 2,303,644 Condensed Consolidating Balance Sheet December 31, 2014 (In thousands) Parent APX Group, Inc. Guarantor Non-Guarantor Eliminations Consolidated Assets Current assets $ — $ 9,435 $ 109,996 $ 6,626 $ (40,686 ) $ 85,371 Property and equipment, net — — 62,271 519 — 62,790 Subscriber acquisition costs, net — — 500,916 47,157 — 548,073 Deferred financing costs, net — 4,071 — — — 4,071 Investment in subsidiaries 224,486 2,057,857 — — (2,282,343 ) — Intercompany receivable — — 34,000 — (34,000 ) — Intangible assets, net — — 645,558 57,668 — 703,226 Goodwill — — 811,947 29,575 — 841,522 Long-term investments and other assets — 184 10,502 31 (184 ) 10,533 Total Assets $ 224,486 $ 2,071,547 $ 2,175,190 $ 141,576 $ (2,357,213 ) $ 2,255,586 Liabilities and Stockholders’ Equity Current liabilities $ — $ 11,993 $ 119,285 $ 46,348 $ (40,686 ) $ 136,940 Intercompany payable — — — 34,000 (34,000 ) — Notes payable and revolving line of credit, net of current portion — 1,835,068 — — — 1,835,068 Capital lease obligations, net of current portion — — 10,646 9 — 10,655 Deferred revenue, net of current portion — — 29,438 3,066 — 32,504 Other long-term obligations — — 6,497 409 — 6,906 Deferred income tax liability — — 107 9,104 (184 ) 9,027 Total equity 224,486 224,486 2,009,217 48,640 (2,282,343 ) 224,486 Total liabilities and stockholders’ equity $ 224,486 $ 2,071,547 $ 2,175,190 $ 141,576 $ (2,357,213 ) $ 2,255,586 |
Condensed Consolidating Statements of Operations and Comprehensive Loss | Supplemental Condensed Consolidating Statements of Operations and Comprehensive (Loss) Income For the Three Months Ended March 31, 2016 (In thousands) (unaudited) Parent APX Group, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ — $ 165,941 $ 8,987 $ (675 ) $ 174,253 Costs and expenses — — 170,289 8,314 (675 ) 177,928 (Loss) income from operations — — (4,348 ) 673 — (3,675 ) Loss from subsidiaries (45,093 ) (45 ) — — 45,138 — Other (expense) income, net — (45,048 ) 1,664 3,086 — (40,298 ) (Loss) income before income tax expenses (45,093 ) (45,093 ) (2,684 ) 3,759 45,138 (43,973 ) Income tax expense — — 64 1,056 — 1,120 Net (loss) income $ (45,093 ) $ (45,093 ) $ (2,748 ) $ 2,703 $ 45,138 $ (45,093 ) Other comprehensive (loss) income, net of tax effects: Net (loss) income $ (45,093 ) $ (45,093 ) $ (2,748 ) $ 2,703 $ 45,138 $ (45,093 ) Foreign currency translation adjustment — 2,761 — 2,761 (2,761 ) 2,761 Total other comprehensive income — 2,761 — 2,761 (2,761 ) 2,761 Comprehensive (loss) income $ (45,093 ) $ (42,332 ) $ (2,748 ) $ 5,464 $ 42,377 $ (42,332 ) Supplemental Condensed Consolidating Statements of Operations and Comprehensive (Loss) Income For the Three Months Ended March 31, 2015 (In thousands) (unaudited) Parent APX Group, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ — $ 144,737 $ 8,230 $ (770 ) $ 152,197 Costs and expenses — — 154,900 7,766 (770 ) 161,896 (Loss) income from operations — — (10,163 ) 464 — (9,699 ) Loss from subsidiaries (48,046 ) (10,092 ) — — 58,138 — Other expense, net — (37,954 ) (247 ) (16 ) — (38,217 ) (Loss) income before income tax expenses (48,046 ) (48,046 ) (10,410 ) 448 58,138 (47,916 ) Income tax expense — — 40 90 — 130 Net (loss) income $ (48,046 ) $ (48,046 ) $ (10,450 ) $ 358 $ 58,138 $ (48,046 ) Other comprehensive loss, net of tax effects: Net (loss) income $ (48,046 ) $ (48,046 ) $ (10,450 ) $ 358 $ 58,138 $ (48,046 ) Foreign currency translation adjustment — (10,578 ) (6,336 ) (4,242 ) 10,578 (10,578 ) Total other comprehensive loss — (10,578 ) (6,336 ) (4,242 ) 10,578 (10,578 ) Comprehensive loss $ (48,046 ) $ (58,624 ) $ (16,786 ) $ (3,884 ) $ 68,716 $ (58,624 ) | Condensed Consolidating Statements of Operations and Comprehensive Loss For the Year Ended December 31, 2015 (In thousands) Parent APX Guarantor Non-Guarantor Eliminations Consolidated Revenues $ — $ — $ 622,507 $ 34,022 $ (2,808 ) $ 653,721 Costs and expenses — — 730,322 34,882 (2,808 ) 762,396 Loss from operations — — (107,815 ) (860 ) — (108,675 ) Loss from subsidiaries (279,107 ) (118,885 ) — — 397,992 — Other (expense) income, net — (160,222 ) (9,763 ) (96 ) — (170,081 ) Loss before income tax expenses (279,107 ) (279,107 ) (117,578 ) (956 ) 397,992 (278,756 ) Income tax expense (benefit) — — 392 (41 ) — 351 Net loss $ (279,107 ) $ (279,107 ) $ (117,970 ) $ (915 ) $ 397,992 $ (279,107 ) Other comprehensive loss, net of tax effects: Net loss $ (279,107 ) $ (279,107 ) $ (117,970 ) $ (915 ) $ 397,992 $ (279,107 ) Foreign currency translation adjustment — (13,293 ) 2 (13,294 ) 13,292 (13,293 ) Total other comprehensive loss — (13,293 ) 2 (13,294 ) 13,292 (13,293 ) Comprehensive loss $ (279,107 ) $ (292,400 ) $ (117,968 ) $ (14,209 ) $ 411,284 $ (292,400 ) Condensed Consolidating Statements of Operations and Comprehensive Loss For the Year Ended December 31, 2014 (In thousands) Parent APX Guarantor Non-Guarantor Eliminations Consolidated Revenues $ — $ — $ 530,888 $ 35,911 $ (3,122 ) $ 563,677 Costs and expenses — — 623,124 37,544 (3,122 ) 657,546 Loss from operations — — (92,236 ) (1,633 ) — (93,869 ) Loss from subsidiaries (238,660 ) (93,850 ) — — 332,510 — Other income (expense), net — (145,917 ) 1,676 (36 ) — (144,277 ) Loss before income tax expenses (238,660 ) (239,767 ) (90,560 ) (1,669 ) 332,510 (238,146 ) Income tax expense (benefit) — (1,107 ) 779 842 — 514 Net loss $ (238,660 ) $ (238,660 ) $ (91,339 ) $ (2,511 ) $ 332,510 $ (238,660 ) Other comprehensive loss, net of tax effects: Net loss $ (238,660 ) $ (238,660 ) $ (91,339 ) $ (2,511 ) $ 332,510 $ (238,660 ) Foreign currency translation adjustment — (11,333 ) (6,895 ) (4,438 ) 11,333 (11,333 ) Total other comprehensive loss — (11,333 ) (6,895 ) (4,438 ) 11,333 (11,333 ) Comprehensive loss $ (238,660 ) $ (249,993 ) $ (98,234 ) $ (6,949 ) $ 343,843 $ (249,993 ) Condensed Consolidating Statements of Operations and Comprehensive Loss For the year ended December 31, 2013 (In thousands) Parent APX Guarantor Non-Guarantor Eliminations Consolidated Revenues $ — $ — $ 476,168 $ 27,790 $ (3,050 ) $ 500,908 Costs and expenses — — 527,403 31,435 (3,050 ) 555,788 (Loss) income from operations — — (51,235 ) (3,645 ) — (54,880 ) (Loss) income from subsidiaries (124,513 ) (57,752 ) — — 182,265 — Other income (expense), net — (66,867 ) 906 (80 ) — (66,041 ) (Loss) income from continuing operations before income tax expense (124,513 ) (124,619 ) (50,329 ) (3,725 ) 182,265 (120,921 ) Income tax (benefit) expense — (106 ) 4,853 (1,155 ) — 3,592 Net (loss) income $ (124,513 ) $ (124,513 ) $ (55,182 ) $ (2,570 ) $ 182,265 $ (124,513 ) Other comprehensive (loss) income, net of tax effects: Net (loss) income before non-controlling interests $ (124,513 ) $ (124,513 ) $ (55,182 ) $ (2,570 ) $ 182,265 $ (124,513 ) Foreign currency translation adjustment — (8,558 ) (4,641 ) (3,917 ) 8,558 (8,558 ) Comprehensive loss $ (124,513 ) $ (133,071 ) $ (59,823 ) $ (6,487 ) $ 190,823 $ (133,071 ) |
Condensed Consolidating Statements of Cash Flows | Supplemental Condensed Consolidating Statements of Cash Flows For the three Months Ended March 31, 2016 (In thousands) (unaudited) Parent APX Group, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net cash (used in) provided by operating activities $ — $ (196 ) $ (15,268 ) $ 2,959 $ — $ (12,505 ) Cash flows from investing activities: Subscriber acquisition costs—company owned equipment — — (63 ) — — (63 ) Capital expenditures — — (3,070 ) — — (3,070 ) Proceeds from sale of assets — — 926 — — 926 Investment in subsidiary — (14,615 ) — — 14,615 — Acquisition of intangible assets — — (235 ) — — (235 ) Proceeds from insurance claims — — — — — — Acquisition of other assets — — — — — — Net cash used in investing activities — (14,615 ) (2,442 ) — 14,615 (2,442 ) Cash flows from financing activities: Borrowings from revolving credit facility — 21,000 — — — 21,000 Repayments on revolving credit facility — (5,000 ) — — — (5,000 ) Intercompany receivable — — 3,667 — (3,667 ) — Intercompany payable — — 14,615 (3,667 ) (10,948 ) — Repayments of capital lease obligations — — (1,974 ) — — (1,974 ) Deferred financing costs — — — — — — Net cash provided by (used in) financing activities — 16,000 16,308 (3,667 ) (14,615 ) 14,026 Effect of exchange rate changes on cash — — — (1,126 ) — (1,126 ) Net increase (decrease) in cash — 1,189 (1,402 ) (1,834 ) — (2,047 ) Cash: Beginning of period — 2,299 (1,941 ) 2,201 — 2,559 End of period $ — $ 3,488 $ (3,343 ) $ 367 $ — $ 512 Supplemental Condensed Consolidating Statements of Cash Flows For the three Months Ended March 31, 2015 (In thousands) (unaudited) Parent APX Group, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net cash provided by (used in) operating activities $ — $ (268 ) $ 9,884 $ 6,716 $ — $ 16,332 Cash flows from investing activities: Subscriber acquisition costs—company owned equipment — — (6,815 ) (31 ) — (6,846 ) Capital expenditures — — (10,002 ) — — (10,002 ) Investment in subsidiary — (9,869 ) — — 9,869 — Acquisition of intangible assets — — (736 ) — — (736 ) Proceeds from sale of assets — — 188 — — 188 Proceeds from insurance claims — — 2,984 — — 2,984 Acquisition of other assets — — (81 ) 14 — (67 ) Net cash used in investing activities — (9,869 ) (14,462 ) (17 ) 9,869 (14,479 ) Cash flows from financing activities: Borrowings from revolving credit facility — 22,500 — — — 22,500 Repayments on revolving credit facility — (10,000 ) — — — (10,000 ) Intercompany receivable — — (2,125 ) — 2,125 — Intercompany payable — — 9,869 2,125 (11,994 ) — Repayments of capital lease obligations — — (2,279 ) (1 ) — (2,280 ) Deferred financing costs — (4,233 ) — — — (4,233 ) Net cash (used in) provided by financing activities — 8,267 5,465 2,124 (9,869 ) 5,987 Effect of exchange rate changes on cash — — — (601 ) — (601 ) Net (decrease) increase in cash — (1,870 ) 887 8,222 — 7,239 Cash: Beginning of period — 9,432 (2,233 ) 3,608 — 10,807 End of period $ — $ 7,562 $ (1,346 ) $ 11,830 $ — $ 18,046 | Condensed Consolidating Statements of Cash Flows For the Year ended December 31, 2015 (In thousands) Parent APX Guarantor Non-Guarantor Eliminations Consolidated Cash flows from operating activities: Net cash used in operating activities $ — $ (1,052 ) $ (267,327 ) $ 13,072 $ — $ (255,307 ) Cash flows from investing activities: Subscriber acquisition costs—company owned equipment — — (23,641 ) (1,099 ) — (24,740 ) Capital expenditures — — (26,941 ) (41 ) — (26,982 ) Proceeds from the sale of subsidiary — — — — — — Proceeds from sale of capital assets — — 480 — — 480 Investment in subsidiary — (296,895 ) — — 296,895 — Acquisition of intangible assets — — (1,363 ) — — (1,363 ) Proceeds from insurance claims — — 2,984 — — 2,984 Net cash used in acquisitions — — — — — — Investment in marketable securities — — — — — — Proceeds from marketable securities — — — — — — Proceeds from note receivable — — — — — — Change in restricted cash — — 14,214 — — 14,214 Investment in convertible note — — — — — — Other assets — — (208 ) — — (208 ) Net cash used in investing activities — (296,895 ) (34,475 ) (1,140 ) 296,895 (35,615 ) Cash flows from financing activities: Proceeds from notes payable — 296,250 — — — 296,250 Borrowings from revolving line of credit — 271,000 — — — 271,000 Repayment of revolving line of credit (271,000 ) (271,000 ) Intercompany receivable — 11,601 — (11,601 ) — Intercompany payable — — 296,895 (11,601 ) (285,294 ) — Proceeds from contract sales — — — — — Acquisition of contracts — — — — — Repayments of capital lease obligations — — (6,402 ) (12 ) — (6,414 ) Deferred financing costs — (5,436 ) — — — (5,436 ) Capital contribution — — — — — — Payment of dividends — — — — — — Net cash provided by (used in) provided by financing activities — 290,814 302,094 (11,613 ) (296,895 ) 284,400 Effect of exchange rate changes on cash — — — (1,726 ) — (1,726 ) Net increase (decrease) in cash — (7,133 ) 292 (1,407 ) — (8,248 ) Cash: Beginning of period — 9,432 (2,233 ) 3,608 — 10,807 End of period $ — $ 2,299 $ (1,941 ) $ 2,201 $ — $ 2,559 Condensed Consolidating Statements of Cash Flows For the Year ended December 31, 2014 (In thousands) Parent APX Guarantor Non-Guarantor Eliminations Consolidated Cash flows from operating activities: Net cash provided by (used in) operating activities $ 50,000 $ (894 ) $ (318,734 ) $ 9,991 $ (50,000 ) $ (309,637 ) Cash flows from investing activities: Subscriber acquisition costs—company owned equipment — — (10,580 ) — — (10,580 ) Capital expenditures — — (30,315 ) (185 ) — (30,500 ) Proceeds from the sale of subsidiary — — — — — — Proceeds from sale of capital assets — — 964 — — 964 Investment in subsidiary (32,300 ) (340,024 ) — — 372,324 — Acquisition of intangible assets — — (9,649 ) — — (9,649 ) Net cash used in acquisitions — — (18,500 ) — — (18,500 ) Investment in marketable securities — (60,000 ) — — — (60,000 ) Proceeds from marketable securities — 60,069 — — — 60,069 Proceeds from note receivable — — 22,699 — — 22,699 Change in restricted cash — — 14,375 — — 14,375 Investment in convertible note — — (3,000 ) — — (3,000 ) Other assets — — (2,153 ) (9 ) — (2,162 ) Net cash used in investing activities (32,300 ) (339,955 ) (36,159 ) (194 ) 372,324 (36,284 ) Cash flows from financing activities: Proceeds from notes payable — 102,000 — — — 102,000 Borrowings from revolving line of credit — 20,000 — — — 20,000 Intercompany receivable — — 10,658 — (10,658 ) — Intercompany payable — — 340,024 (10,658 ) (329,366 ) — Proceeds from contract sales — — 2,261 — — 2,261 Acquisition of contracts — — (2,277 ) — — (2,277 ) Repayments of capital lease obligations — — (6,297 ) (3 ) — (6,300 ) Deferred financing costs — (2,927 ) — — — (2,927 ) Capital contribution 32,300 32,300 — — (32,300 ) 32,300 Payment of dividends (50,000 ) (50,000 ) — — 50,000 (50,000 ) Net cash (used in) provided by financing activities (17,700 ) 101,373 344,369 (10,661 ) (322,324 ) 95,057 Effect of exchange rate changes on cash — — — (234 ) — (234 ) Net increase in cash — (239,476 ) (10,524 ) (1,098 ) — (251,098 ) Cash: Beginning of period — 248,908 8,291 4,706 — 261,905 End of period $ — $ 9,432 $ (2,233 ) $ 3,608 $ — $ 10,807 Condensed Consolidating Statements of Cash Flows For the Year ended December 31, 2013 (In thousands) Parent APX Guarantor Non-Guarantor Eliminations Consolidated Cash flows from operating activities: Net cash provided by (used in) operating activities $ 60,000 $ (201 ) $ (227,146 ) $ 8,471 $ (60,000 ) $ (218,876 ) Cash flows from investing activities: Subscriber acquisition costs—company owned equipment — — (342 ) — — (342 ) Capital expenditures — — (8,917 ) (56 ) — (8,973 ) Proceeds from the sale of subsidiary — 144,750 — — — 144,750 Investment in subsidiary — (254,394 ) — — 254,394 — Proceeds from the sale of capital assets — — 306 — — 306 Net cash used in acquisition — — (4,272 ) — — (4,272 ) Change in restricted cash — — (161 ) — — (161 ) Other assets — — (9,648 ) 3 — (9,645 ) Net cash provided by (used in) investing activities — (109,644 ) (23,034 ) (53 ) 254,394 121,663 Cash flows from financing activities: Proceeds from notes payable — 457,250 — — — 457,250 Intercompany receivable — — 7,096 — (7,096 ) — Intercompany payable — — 254,394 (7,096 ) (247,298 ) — Borrowings from revolving line of credit — 22,500 — — — 22,500 Repayments on revolving line of credit — (50,500 ) — — — (50,500 ) Repayments of capital lease obligations — — (7,207 ) — — (7,207 ) Deferred financing costs — (10,896 ) — — — (10,896 ) Payment of dividends (60,000 ) (60,000 ) — — 60,000 (60,000 ) Net cash (used in) provided by financing activities (60,000 ) 358,354 254,283 (7,096 ) (194,394 ) 351,147 Effect of exchange rate changes on cash — — — (119 ) — (119 ) Net increase in cash — 248,509 4,103 1,203 — 253,815 Cash: Beginning of period — 399 4,188 3,503 — 8,090 End of period $ — $ 248,908 $ 8,291 $ 4,706 $ — $ 261,905 |
Basis of Presentation and Sig44
Basis of Presentation and Significant Accounting Policies - Additional Information (Detail) - USD ($) | Nov. 24, 2014 | Mar. 31, 2014 | Apr. 01, 2013 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||||
Out-of-period adjustments | $ 2,000,000 | $ 2,000,000 | |||||||
Recurring revenues increased | $ 167,446,000 | 145,664,000 | 624,989,000 | $ 537,695,000 | $ 460,130,000 | ||||
Deferred revenue decrease | (2,776,000) | $ 203,000 | $ (14,971,000) | (20,589,000) | (24,356,000) | ||||
Deferred fees recognition, estimated customer life period | 12 years | 12 years | |||||||
Deferred fees recognition, declining balance method percentage | 150.00% | 150.00% | |||||||
Amortization percentage on subscriber contract costs over estimated useful life | 150.00% | 150.00% | |||||||
Amortization duration of costs period | 12 years | 12 years | |||||||
Restricted cash and cash equivalents | $ 0 | 14,214,000 | |||||||
Allowance for doubtful accounts | 3,022,000 | $ 2,908,000 | 3,541,000 | 3,373,000 | 1,901,000 | $ 2,301,000 | |||
Accounts receivable classified as held for sale | 0 | 0 | 0 | ||||||
Deferred financing cost, net | 5,948,000 | 6,456,000 | 4,071,000 | ||||||
Deferred financing cost, accumulated amortization | 5,300,000 | 4,800,000 | |||||||
Amortization expenses included in interest expense | 2,614,000 | 2,292,000 | 9,844,000 | 9,251,000 | 8,642,000 | ||||
Sales commission included in accrued expenses and other liabilities | 900,000 | 800,000 | 400,000 | ||||||
Other long-term obligations | 4,900,000 | 4,300,000 | 3,000,000 | ||||||
Advertising expenses incurred | $ 7,900,000 | 5,300,000 | $ 25,100,000 | 23,600,000 | 23,000,000 | ||||
Uncertain income tax position | 50.00% | 50.00% | |||||||
Proceeds from sale of contracts | $ 2,300,000 | ||||||||
Agreement with buyer to provide services for the contracts sold, period | 10 years | ||||||||
Payments to repurchase subscriber contracts | $ 2,300,000 | ||||||||
Intercompany translation losses | $ 4,700,000 | $ 0 | $ 9,400,000 | 0 | 0 | ||||
Issued and unused letters of credit | 5,600,000 | 5,000,000 | 3,000,000 | ||||||
Reduction to deferred financing costs | $ 37,945,000 | 40,244,000 | 48,087,000 | ||||||
Period after declining balance method converts to straight-line | 5 years | ||||||||
New Accounting Pronouncement, Early Adoption, Effect [Member] | |||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||||
Reduction to deferred financing costs | $ 40,200,000 | 48,100,000 | |||||||
2GIG Sale [Member] | |||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||||
Percentage of installed panels | 56.00% | 56.00% | |||||||
Supply agreement period | 5 years | ||||||||
Vivint Sky Control Panels [Member] | |||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||||
Percentage of installed panels | 44.00% | 40.00% | |||||||
Out-of-Period Adjustment [Member] | |||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||||
Recurring revenues increased | $ 2,000,000 | $ 2,000,000 | |||||||
Deferred revenue decrease | 2,000,000 | $ 2,000,000 | |||||||
Minimum [Member] | |||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||||
Estimated useful life of intangible assets | 2 years | 2 years | |||||||
Maximum [Member] | |||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||||
Estimated useful life of intangible assets | 10 years | 10 years | |||||||
Scenario Previously Reported [Member] | |||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||||
Deferred financing cost, net | $ 46,700,000 | 52,200,000 | |||||||
Deferred financing cost, accumulated amortization | 30,900,000 | 20,000,000 | |||||||
Interest Expense [Member] | |||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||||
Amortization expenses included in interest expense | $ 2,800,000 | $ 2,600,000 | 10,900,000 | $ 10,100,000 | $ 8,800,000 | ||||
Other Notes Payable [Member] | New Accounting Pronouncement, Early Adoption, Effect [Member] | |||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||||||
Reduction to deferred financing costs | $ 40,200,000 |
Basis of Presentation and Sig45
Basis of Presentation and Significant Accounting Policies - Changes in Company's Allowance for Accounts Receivable (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||||
Beginning balance | $ 3,541 | $ 3,373 | $ 3,373 | $ 1,901 | $ 2,301 |
Provision for doubtful accounts | 3,980 | 3,557 | 14,924 | 15,656 | 10,360 |
Write-offs and adjustments | (4,499) | (4,022) | (14,756) | (14,184) | (10,760) |
Balance at end of period | $ 3,022 | $ 2,908 | $ 3,541 | $ 3,373 | $ 1,901 |
Restructuring and Asset Impai46
Restructuring and Asset Impairment Charges - Schedule of Restructuring and Asset Impairment Charges (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring and asset impairment charges | $ 45 | $ 0 | $ 59,197 |
Asset Impairments [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring and asset impairment charges | 53,228 | ||
Contract Termination Costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring and asset impairment charges | 19 | 4,767 | |
Employee Severance and Termination Benefits [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring and asset impairment charges | $ 26 | $ 1,202 |
Restructuring and Asset Impai47
Restructuring and Asset Impairment Charges - Summary of Restructuring Activity (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Restructuring Reserve [Roll Forward] | |||
Accrued restructuring, beginning balance | $ 4,275 | ||
Restructuring and impairment charges | 45 | $ 0 | $ 59,197 |
Cash payments | (1,492) | (1,514) | |
Non-cash settlements | (53,408) | ||
Accrued restructuring, ending balance | 2,828 | 4,275 | |
Asset Impairments [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring and impairment charges | 53,228 | ||
Cash payments | (10) | ||
Non-cash settlements | (53,218) | ||
Contract Termination Costs [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Accrued restructuring, beginning balance | 3,954 | ||
Restructuring and impairment charges | 19 | 4,767 | |
Cash payments | (1,349) | (623) | |
Non-cash settlements | (190) | ||
Accrued restructuring, ending balance | 2,624 | 3,954 | |
Employee Severance and Termination Benefits [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Accrued restructuring, beginning balance | 321 | ||
Restructuring and impairment charges | 26 | 1,202 | |
Cash payments | (143) | (881) | |
Accrued restructuring, ending balance | $ 204 | $ 321 |
Restructuring and Asset Impai48
Restructuring and Asset Impairment Charges - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Non-cash asset impairment charge | $ 53.2 |
Employee Severance and Termination Benefits [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Cash-based restructuring charges | $ 6 |
Business Combination - Addition
Business Combination - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Aug. 25, 2014 | Jan. 31, 2014 | May 29, 2013 | |
Space Monkey Acquisition [Member] | Subsidiaries [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquisition date of wholly-owned subsidiary | Aug. 25, 2014 | ||||
Aggregate cash consideration | $ 15,000,000 | ||||
Escrow for indemnification obligations | $ 1,500,000 | ||||
Business combination acquisition costs | $ 0 | ||||
Wildfire Acquisition [Member] | Subsidiaries [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquisition date of wholly-owned subsidiary | Jan. 31, 2014 | ||||
Aggregate cash consideration | $ 3,500,000 | ||||
Escrow for indemnification obligations | $ 400,000 | ||||
Smartrove Acquisition [Member] | |||||
Business Acquisition [Line Items] | |||||
Acquisition date of wholly-owned subsidiary | May 29, 2013 | ||||
Aggregate cash consideration | $ 4,275,000 | $ 4,300,000 | |||
Smartrove Acquisition [Member] | Vivint [Member] | |||||
Business Acquisition [Line Items] | |||||
Percentage of stock acquisition | 100.00% |
Business Combination - Summary
Business Combination - Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Aug. 25, 2014 | Jan. 31, 2014 | Dec. 31, 2013 | May 29, 2013 |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 836,098 | $ 834,416 | $ 841,522 | $ 836,318 | |||
Space Monkey Acquisition [Member] | Subsidiaries [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Net assets acquired | $ 404 | ||||||
Deferred income tax liability | (1,106) | ||||||
Intangible assets | 8,300 | ||||||
Goodwill | 7,402 | ||||||
Total estimated fair value of the assets acquired and liabilities assumed | $ 15,000 | ||||||
Wildfire Acquisition [Member] | Subsidiaries [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Net assets acquired | $ 96 | ||||||
Intangible assets | 2,900 | ||||||
Goodwill | 504 | ||||||
Total estimated fair value of the assets acquired and liabilities assumed | 3,500 | ||||||
Total cash consideration | $ 3,500 | ||||||
Smartrove Acquisition [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Net assets acquired | 3 | ||||||
Deferred income tax liability | (1,533) | ||||||
Intangible assets | 4,040 | ||||||
Goodwill | 1,765 | ||||||
Total fair value of the assets acquired and liabilities assumed | $ 4,275 | $ 4,300 |
Divestiture of Subsidiary - Add
Divestiture of Subsidiary - Additional Information (Detail) - USD ($) $ in Thousands | Apr. 01, 2013 | May 31, 2013 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Repayments of Lines of Credit | $ 5,000 | $ 10,000 | $ 271,000 | $ 50,500 | |||
Distribution of dividend from proceeds to stockholders | $ 50,000 | $ 60,000 | |||||
2GIG [Member] | |||||||
Adjusted net sale price | $ 148,871 | ||||||
Supply agreement duration | 5 years | ||||||
Distribution of dividend from proceeds to stockholders | $ 60,000 | ||||||
Revolving Credit Facility [Member] | 2GIG [Member] | |||||||
Repayments of Lines of Credit | $ 44,000 |
Divestiture of Subsidiary - Sum
Divestiture of Subsidiary - Summary of Net Gain Recognized in Connection with Divestiture (Detail) - USD ($) $ in Thousands | Apr. 01, 2013 | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Finite-lived intangible assets | $ 531,435 | $ 557,773 | $ 702,953 | |
2GIG [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Adjusted net sale price | $ 148,871 | |||
2GIG assets (including cash of $3,383), net of liabilities | (109,053) | |||
Other | (9,855) | |||
Net gain on divestiture | 46,866 | |||
2GIG [Member] | 2.0 Technology [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Finite-lived intangible assets | $ 16,903 |
Divestiture of Subsidiary - S53
Divestiture of Subsidiary - Summary of Net Gain Recognized in Connection with Divestiture (Parenthetical) (Detail) $ in Thousands | Apr. 01, 2013USD ($) |
2GIG [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Cash | $ 3,383 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) | Jul. 01, 2014USD ($) | Dec. 13, 2013USD ($) | May 31, 2013USD ($) | Nov. 16, 2012USD ($)Offerings | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($)Offerings | Dec. 31, 2014USD ($) | Oct. 31, 2015USD ($) | Oct. 19, 2015USD ($) | Mar. 06, 2015USD ($) | Dec. 31, 2013USD ($) |
Debt Instrument [Line Items] | |||||||||||
Step down | 0.25% | ||||||||||
Outstanding letters of credit | $ 5,000,000 | ||||||||||
Revolving line of credit | $ 36,000,000 | 20,000,000 | $ 20,000,000 | ||||||||
Senior Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount | $ 1,300,000,000 | ||||||||||
Revolving Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Credit facility, aggregate principal amount | $ 200,000,000 | $ 264,400,000 | $ 289,400,000 | ||||||||
Aggregate principal amount of the credit agreement, description | The aggregate commitments previously available to APX thereunder from $200.0 millionto$289.4 million | The aggregate commitments previously available to APX thereunder from $200.0 million to $289.4 million | |||||||||
Step down | 0.25% | ||||||||||
Commitment fee | 0.125% | 0.50% | |||||||||
Debt maturity term | 5 years | ||||||||||
Potential maximum borrowing capacity | $ 225,000,000 | ||||||||||
Revolving Credit Facility [Member] | Federal Funds Rate [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable Interest rate percentage | 0.50% | 0.50% | |||||||||
Revolving Credit Facility [Member] | LIBOR [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable Interest rate percentage | 1.00% | 1.00% | |||||||||
Variable Interest rate description | One month, plus 1.00% | One month, plus 1.00% | |||||||||
6.375% Senior Secured Notes Due 2019 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 6.375% | 6.375% | 6.375% | ||||||||
Debt instrument maturity date | Dec. 1, 2019 | Dec. 1, 2019 | Dec. 1, 2019 | ||||||||
6.375% Senior Secured Notes Due 2019 [Member] | Senior Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount | $ 925,000,000 | $ 925,000,000 | |||||||||
Debt instrument interest rate | 6.375% | 6.375% | 6.375% | ||||||||
6.375% Senior Secured Notes Due 2019 [Member] | Revolving Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 6.375% | ||||||||||
8.75% Senior Notes Due 2020 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 8.875% | 8.75% | 8.75% | ||||||||
Debt instrument maturity date | Dec. 1, 2020 | Dec. 1, 2020 | Dec. 1, 2020 | ||||||||
Debt issuance fees | $ 100,000 | $ 300,000 | $ 200,000 | ||||||||
Additional senior secured notes issued | $ 100,000,000 | ||||||||||
8.75% Senior Notes Due 2020 [Member] | Senior Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount | $ 250,000,000 | $ 200,000,000 | $ 380,000,000 | $ 100,000,000 | $ 250,000,000 | ||||||
Debt instrument interest rate | 101.75% | 8.75% | 8.75% | 8.75% | 102.00% | 101.50% | |||||
Number of offerings | Offerings | 2 | 2 | |||||||||
Debt instrument, redemption price, percentage | 101.50% | 101.75% | |||||||||
8.75% Senior Notes Due 2020 [Member] | Revolving Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 8.75% | ||||||||||
8.875% Senior Secured Notes Due 2022 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 8.875% | ||||||||||
Debt instrument maturity date | Dec. 1, 2022 | ||||||||||
8.875% Senior Secured Notes Due 2022 [Member] | Senior Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount | $ 300,000,000 | ||||||||||
Debt instrument interest rate | 8.875% | ||||||||||
8.875% Senior Secured Notes Due 2022 [Member] | Revolving Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument interest rate | 8.875% | ||||||||||
Repriced Tranche [Member] | Revolving Credit Facility [Member] | LIBOR [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable Interest rate percentage | 3.00% | ||||||||||
Repriced Tranche [Member] | Revolving Credit Facility [Member] | Base Rate-based Borrowings [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable Interest rate percentage | 2.00% | ||||||||||
Former Tranche [Member] | Revolving Credit Facility [Member] | LIBOR [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable Interest rate percentage | 4.00% | ||||||||||
Former Tranche [Member] | Revolving Credit Facility [Member] | Base Rate-based Borrowings [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable Interest rate percentage | 3.00% | ||||||||||
Series C Revolving Credit Facility Due 2017 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Credit facility, due date | Nov. 16, 2017 | ||||||||||
Series A, B Revolving Credit Facilities Due 2019 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Credit facility, due date | Mar. 31, 2019 | ||||||||||
8.875% Senior Secured Notes Due 2022 [Member] | Senior Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount | $ 300,000,000 | ||||||||||
Debt instrument interest rate | 8.875% | 8.875% | 8.875% | ||||||||
Principal amount outstanding threshold for accelerated maturity (on September 1, 2020) | $ 190,000,000 | ||||||||||
Series A Revolving Commitments [Member] | Revolving Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Credit facility, aggregate principal amount | $ 247,500,000 | ||||||||||
Credit facility, due date | Mar. 31, 2019 | ||||||||||
Series A Revolving Commitments [Member] | Revolving Credit Facility [Member] | Base Rate-based Borrowings [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable Interest rate percentage | 2.00% | ||||||||||
Series C Revolving Commitments [Member] | Revolving Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Credit facility, aggregate principal amount | $ 20,800,000 | ||||||||||
Series C Revolving Commitments [Member] | Revolving Credit Facility [Member] | LIBOR [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable Interest rate percentage | 3.00% | ||||||||||
Series B Revolving Commitments [Member] | Revolving Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Credit facility, aggregate principal amount | $ 21,200,000 | ||||||||||
Series B Revolving Commitments [Member] | Revolving Credit Facility [Member] | LIBOR [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable Interest rate percentage | 4.00% | ||||||||||
Series B Revolving Commitments [Member] | Revolving Credit Facility [Member] | Base Rate-based Borrowings [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable Interest rate percentage | 3.00% |
Long-Term Debt - Summary of Deb
Long-Term Debt - Summary of Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | |||
Outstanding Principal | $ 2,191,000 | $ 2,175,000 | $ 1,875,000 |
Unamortized Premium (Discount) | 3,162 | 3,356 | 8,155 |
Unamortized Deferred Financing Costs | (37,945) | (40,244) | (48,087) |
Net Carrying Amount | 2,156,217 | 2,138,112 | 1,835,068 |
Series C Revolving Credit Facility Due 2017 [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding Principal | 2,592 | 1,440 | |
Unamortized Premium (Discount) | 0 | 0 | |
Unamortized Deferred Financing Costs | 0 | 0 | |
Net Carrying Amount | 2,592 | 1,440 | |
Series A, B Revolving Credit Facilities Due 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding Principal | 33,408 | 18,560 | |
Unamortized Premium (Discount) | 0 | 0 | |
Unamortized Deferred Financing Costs | 0 | 0 | |
Net Carrying Amount | 33,408 | 18,560 | |
Revolving Credit Facility Due 2017 [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding Principal | 20,000 | ||
Unamortized Premium (Discount) | 0 | ||
Unamortized Deferred Financing Costs | 0 | ||
Net Carrying Amount | 20,000 | ||
Senior Notes [Member] | 6.375% Senior Secured Notes Due 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding Principal | 925,000 | 925,000 | 925,000 |
Unamortized Premium (Discount) | 0 | 0 | 0 |
Unamortized Deferred Financing Costs | (18,890) | (20,182) | (25,316) |
Net Carrying Amount | 906,110 | 904,818 | 899,684 |
Senior Notes [Member] | 8.75% Senior Notes Due 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding Principal | 930,000 | 930,000 | 930,000 |
Unamortized Premium (Discount) | 6,769 | 7,060 | 8,155 |
Unamortized Deferred Financing Costs | (17,927) | (18,892) | (22,771) |
Net Carrying Amount | 918,842 | 918,168 | $ 915,384 |
Senior Notes [Member] | 8.875% Senior Secured Notes Due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding Principal | 300,000 | 300,000 | |
Unamortized Premium (Discount) | (3,607) | (3,704) | |
Unamortized Deferred Financing Costs | (1,128) | (1,170) | |
Net Carrying Amount | $ 295,265 | $ 295,126 |
Long-Term Debt - Summary of D56
Long-Term Debt - Summary of Debt (Parenthetical) (Detail) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Series C Revolving Credit Facility Due 2017 [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility, due date | Nov. 16, 2017 | ||
Series A, B Revolving Credit Facilities Due 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility, due date | Mar. 31, 2019 | ||
6.375% Senior Secured Notes Due 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 6.375% | 6.375% | 6.375% |
Debt instrument maturity date | Dec. 1, 2019 | Dec. 1, 2019 | Dec. 1, 2019 |
8.75% Senior Notes Due 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 8.875% | 8.75% | 8.75% |
Debt instrument maturity date | Dec. 1, 2020 | Dec. 1, 2020 | Dec. 1, 2020 |
8.875% Senior Secured Notes Due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 8.875% | ||
Debt instrument maturity date | Dec. 1, 2022 | ||
Revolving Credit Facility Due 2017 [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility, due date | Nov. 16, 2017 |
Cost Based Investments - Additi
Cost Based Investments - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Feb. 19, 2014 | |
Privately-held Company [Member] | ||||
Schedule of Cost-method Investments [Line Items] | ||||
Cost-based investment | $ 300,000 | |||
Maximum [Member] | Privately-held Company [Member] | ||||
Schedule of Cost-method Investments [Line Items] | ||||
Cost-based investment | $ 1,700,000 | |||
Technology Company [Member] | ||||
Schedule of Cost-method Investments [Line Items] | ||||
Cost-based investment | $ 300,000 | |||
Scenario, Forecast [Member] | Technology Company [Member] | Maximum [Member] | ||||
Schedule of Cost-method Investments [Line Items] | ||||
Cost-based investment | $ 1,800,000 | |||
Convertible Debt Securities [Member] | ||||
Schedule of Cost-method Investments [Line Items] | ||||
Notes receivable, fair value disclosure | $ 3,000,000 | |||
Debt instrument maturity date | Feb. 19, 2014 | Feb. 19, 2015 | ||
Convertible note interest rate terms | Bore interest equal to the greater of (a) 0.5% or (b) annual interest rates | |||
Debt instrument interest rate | 0.50% | |||
Debt instrument maturity date | Feb. 19, 2014 | Feb. 19, 2015 | ||
Convertible Debt Securities [Member] | Privately-held Company [Member] | ||||
Schedule of Cost-method Investments [Line Items] | ||||
Cost-based investment | $ 3,000,000 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Company's Balance Sheet Component Balances (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Subscriber acquisition costs | |||
Subscriber acquisition costs | $ 1,024,207 | $ 958,261 | $ 628,739 |
Accumulated amortization | (195,913) | (167,617) | (80,666) |
Subscriber acquisition costs, net | 828,294 | 790,644 | 548,073 |
Long-term investments and other assets | |||
Notes receivable, net of allowance (See Note 16) | 977 | 600 | |
Security deposit receivable | 6,363 | 6,606 | |
Investments (See Note 7) | 3,486 | 3,306 | |
Other | 67 | 21 | |
Total long-term investments and other assets, net | 10,678 | 10,893 | 10,533 |
Accrued payroll and commissions | |||
Accrued payroll | 15,510 | 18,071 | 16,432 |
Accrued commissions | 10,491 | 20,176 | 21,547 |
Total accrued payroll and commissions | 26,001 | 38,247 | 37,979 |
Accrued expenses and other current liabilities | |||
Accrued interest payable | 58,918 | 17,153 | 11,695 |
Loss contingencies | 2,154 | 2,504 | 9,663 |
Other | 15,541 | 15,916 | 7,504 |
Total accrued expenses and other current liabilities | $ 76,613 | $ 35,573 | $ 28,862 |
Property and Equipment - Compon
Property and Equipment - Components of Property and Equipment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | $ 85,399 | $ 82,386 | $ 78,661 | |
Accumulated depreciation and amortization | (30,230) | (27,112) | (15,871) | |
Net property and equipment | 55,169 | 55,274 | 62,790 | $ 35,818 |
Vehicles [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | $ 26,835 | $ 26,935 | $ 20,728 | |
Vehicles [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and Equipment, Estimated Useful Lives | 3 years | 3 years | 3 years | |
Vehicles [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and Equipment, Estimated Useful Lives | 5 years | 5 years | 5 years | |
Computer Equipment and Software [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | $ 23,377 | $ 21,702 | $ 18,069 | |
Computer Equipment and Software [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and Equipment, Estimated Useful Lives | 3 years | 3 years | 3 years | |
Computer Equipment and Software [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and Equipment, Estimated Useful Lives | 5 years | 5 years | 5 years | |
Leasehold Improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | $ 17,615 | $ 17,434 | $ 13,606 | |
Leasehold Improvements [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and Equipment, Estimated Useful Lives | 2 years | 2 years | 2 years | |
Leasehold Improvements [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and Equipment, Estimated Useful Lives | 15 years | 15 years | 15 years | |
Office Furniture, Fixtures and Equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | $ 12,537 | $ 11,776 | $ 9,089 | |
Property and Equipment, Estimated Useful Lives | 7 years | 7 years | 7 years | |
Buildings [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | $ 702 | $ 702 | $ 702 | |
Property and Equipment, Estimated Useful Lives | 39 years | 39 years | 39 years | |
Wireless Internet Infrastructure [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | $ 3,866 | |||
Wireless Internet Infrastructure [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and Equipment, Estimated Useful Lives | 3 years | 3 years | ||
Wireless Internet Infrastructure [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and Equipment, Estimated Useful Lives | 5 years | 5 years | ||
Construction in Process [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | $ 4,333 | $ 3,837 | $ 12,601 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | $ 85,399 | $ 82,386 | $ 78,661 | ||
Accumulated amortization | 30,230 | 27,112 | 15,871 | ||
Depreciation and amortization expense | 4,000 | $ 3,700 | 16,900 | 11,300 | $ 9,100 |
Assets Under Capital Lease Obligations [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 19,800 | 20,400 | 20,900 | ||
Accumulated amortization | $ 7,500 | 7,000 | 4,100 | ||
Wireless Internet Infrastructure [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 3,866 | ||||
Construction in process | $ 0 | $ 9,800 |
Goodwill and Intangible Asset61
Goodwill and Intangible Assets - Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Line Items] | ||
Goodwill beginning balance | $ 841,522 | $ 836,318 |
Goodwill Impaired due to Wireless Restructuring (see Note 3) | (2,300) | |
Effect of Foreign Currency Translation | (4,836) | (2,702) |
Goodwill ending balance | 834,416 | 841,522 |
Wildfire Acquisition [Member] | ||
Goodwill [Line Items] | ||
Goodwill resulting from acquisition | 504 | |
Space Monkey Acquisition [Member] | ||
Goodwill [Line Items] | ||
Goodwill resulting from acquisition | $ 7,402 | |
Vivint [Member] | ||
Goodwill [Line Items] | ||
Goodwill Impaired due to Wireless Restructuring (see Note 3) | $ (2,270) |
Goodwill and Intangible Asset62
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 836,098 | $ 834,416 | $ 841,522 | $ 836,318 | |
Impairment charge of goodwill | 2,300 | ||||
Accumulated impairment losses | 2,300 | 0 | |||
Impairment charge of definite-lived intangible assets | 2,900 | ||||
Intangible assets, net | 532,057 | 558,395 | 703,226 | ||
Amortization expense | 26,972 | $ 31,458 | 125,451 | 143,578 | 160,424 |
Amortization expense related to intangible assets | 29,200 | 31,600 | 134,800 | 151,300 | 164,200 |
Finite-Lived Patents, Gross | 400 | 400 | |||
Smartrove Acquisition [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | 1,765 | ||||
Customer Contracts [Member] | Wildfire Acquisition [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Acquisition of intangible assets | 2,100 | ||||
Space Monkey Technology [Member] | Space Monkey Acquisition [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Acquisition of intangible assets | 7,100 | ||||
Non-Compete Agreements [Member] | Wildfire Acquisition [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Acquisition of intangible assets | 800 | ||||
Non-Compete Agreements [Member] | Space Monkey Acquisition [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Acquisition of intangible assets | 1,200 | ||||
Smartrove Technology [Member] | Smartrove Acquisition [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Acquisition of intangible assets | 4,000 | ||||
Other Related Technology [Member] | Smartrove Acquisition [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Acquisition of intangible assets | 700 | ||||
Patents [Member] | Domain Names And Internet Protocol Addresses [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, net | 1,400 | ||||
Capitalized Software Development Costs [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization expense | $ 300 | $ 300 | $ 1,300 | $ 1,300 | $ 100 |
Goodwill and Intangible Asset63
Goodwill and Intangible Assets - Schedule of Intangible Asset Balances (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Definite-lived intangible assets, gross | $ 1,007,833 | $ 1,002,733 | $ 1,023,151 |
Total intangible assets, gross | 1,008,455 | 1,003,355 | |
Accumulated amortization | (476,398) | (444,960) | (320,198) |
Finite-lived intangible assets | 531,435 | 557,773 | 702,953 |
Indefinite-lived intangible assets | 622 | 622 | 273 |
Total intangible assets, net | 532,057 | 558,395 | 703,226 |
Customer Contracts [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Definite-lived intangible assets, gross | 967,653 | 962,842 | 978,776 |
Accumulated amortization | (460,040) | (430,803) | |
Finite-lived intangible assets | $ 507,613 | $ 532,039 | |
Estimated useful lives of intangible asset | 10 years | 10 years | |
2GIG 2.0 technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Definite-lived intangible assets, gross | $ 17,000 | $ 17,000 | 17,000 |
Accumulated amortization | (7,918) | (7,064) | |
Finite-lived intangible assets | $ 9,082 | $ 9,936 | |
Estimated useful lives of intangible asset | 8 years | 8 years | |
Patents [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Definite-lived intangible assets, gross | $ 7,813 | $ 7,524 | 6,518 |
Accumulated amortization | (2,502) | (2,094) | |
Finite-lived intangible assets | $ 5,311 | $ 5,430 | |
Estimated useful lives of intangible asset | 5 years | 5 years | |
Space Monkey Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Definite-lived intangible assets, gross | $ 7,100 | $ 7,100 | 7,100 |
Accumulated amortization | (1,138) | (761) | |
Finite-lived intangible assets | $ 5,962 | $ 6,339 | |
Estimated useful lives of intangible asset | 6 years | 6 years | |
CMS and Other Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Definite-lived intangible assets, gross | $ 7,067 | $ 7,067 | 7,067 |
Accumulated amortization | (3,850) | (3,438) | |
Finite-lived intangible assets | $ 3,217 | $ 3,629 | |
Estimated useful lives of intangible asset | 5 years | 5 years | |
Non-Compete Agreements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Definite-lived intangible assets, gross | $ 1,200 | $ 1,200 | 2,000 |
Accumulated amortization | (950) | (800) | |
Finite-lived intangible assets | $ 250 | $ 400 | |
Wireless Internet Technologies [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Definite-lived intangible assets, gross | 4,690 | ||
Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful lives of intangible asset | 2 years | 2 years | |
Minimum [Member] | Non-Compete Agreements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful lives of intangible asset | 2 years | 2 years | |
Minimum [Member] | Wireless Internet Technologies [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful lives of intangible asset | 2 years | ||
Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful lives of intangible asset | 10 years | 10 years | |
Maximum [Member] | Non-Compete Agreements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful lives of intangible asset | 3 years | 3 years | |
Maximum [Member] | Wireless Internet Technologies [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful lives of intangible asset | 3 years | ||
IP Addresses [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | $ 564 | $ 564 | 214 |
Domain Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | $ 58 | $ 58 | $ 59 |
Goodwill and Intangible Asset64
Goodwill and Intangible Assets - Schedule of Estimated Future Amortization Expense of Intangible Assets Excluding Patents Currently in Process (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,016 | $ 116,096 | |
2016-Remaining Period | $ 87,447 | |
2,017 | 101,340 | 100,808 |
2,018 | 89,755 | 89,277 |
2,019 | 78,114 | 77,696 |
2,020 | 67,351 | 66,984 |
Thereafter | 107,061 | 106,526 |
Total estimated amortization expense | $ 531,068 | $ 557,387 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Money Market Funds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets: | ||
Cash equivalents | $ 1 | $ 1 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments at Fair Value Based on Valuation Approach Applied to Each Class of Security (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Money Market Funds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Assets: | |||
Cash equivalents | $ 1 | $ 1 | |
Fair Value, Measurements, Recurring [Member] | |||
Assets: | |||
Total Assets | $ 14,215 | ||
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Assets: | |||
Total Assets | 14,215 | ||
Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member] | |||
Assets: | |||
Cash equivalents | 1 | ||
Restricted cash equivalents | 14,214 | ||
Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Assets: | |||
Cash equivalents | 1 | ||
Restricted cash equivalents | $ 14,214 |
Fair Value Measurements - Compo
Fair Value Measurements - Components of Long-Term Debt Including Associated Interest Rates and Related Fair Values (Detail) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 | Oct. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | May 31, 2013 | Nov. 16, 2012 |
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items] | |||||||
Face Value | $ 2,156,217,000 | $ 2,138,112,000 | $ 1,835,068,000 | ||||
6.375% Senior Secured Notes Due 2019 [Member] | |||||||
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items] | |||||||
Stated Interest Rate | 6.375% | 6.375% | 6.375% | ||||
8.75% Senior Notes Due 2020 [Member] | |||||||
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items] | |||||||
Stated Interest Rate | 8.875% | 8.75% | 8.75% | ||||
Senior Notes [Member] | 6.375% Senior Secured Notes Due 2019 [Member] | |||||||
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items] | |||||||
Stated Interest Rate | 6.375% | 6.375% | 6.375% | ||||
Face Value | $ 906,110,000 | $ 904,818,000 | $ 899,684,000 | ||||
Senior Notes [Member] | 8.75% Senior Notes Due 2020 [Member] | |||||||
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items] | |||||||
Stated Interest Rate | 8.75% | 8.75% | 102.00% | 101.50% | 101.75% | 8.75% | |
Face Value | $ 918,842,000 | $ 918,168,000 | $ 915,384,000 | ||||
Senior Notes [Member] | 8.875% Senior Secured Notes Due 2022 [Member] | |||||||
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items] | |||||||
Stated Interest Rate | 8.875% | 8.875% | 8.875% | ||||
Face Value | $ 295,265,000 | $ 295,126,000 | |||||
Significant Other Observable Inputs (Level 2) [Member] | |||||||
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items] | |||||||
Face Value | 2,155,000,000 | 2,155,000,000 | 1,855,000,000 | ||||
Estimated Fair Value | 2,036,659,000 | 1,932,990,000 | 1,673,888,000 | ||||
Significant Other Observable Inputs (Level 2) [Member] | Senior Notes [Member] | 6.375% Senior Secured Notes Due 2019 [Member] | |||||||
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items] | |||||||
Face Value | 925,000,000 | 925,000,000 | 925,000,000 | ||||
Estimated Fair Value | 929,625,000 | 879,906,000 | 881,063,000 | ||||
Significant Other Observable Inputs (Level 2) [Member] | Senior Notes [Member] | 8.75% Senior Notes Due 2020 [Member] | |||||||
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items] | |||||||
Face Value | 930,000,000 | 930,000,000 | 930,000,000 | ||||
Estimated Fair Value | 802,125,000 | 756,788,000 | $ 792,825,000 | ||||
Significant Other Observable Inputs (Level 2) [Member] | Senior Notes [Member] | 8.875% Senior Secured Notes Due 2022 [Member] | |||||||
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items] | |||||||
Face Value | 300,000,000 | 300,000,000 | |||||
Estimated Fair Value | $ 304,909,000 | $ 296,296,000 |
Facility Fire - Additional Info
Facility Fire - Additional Information (Detail) - Facility Fire [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Loss Contingencies [Line Items] | ||
Fire damage, recognized gross expenses | $ 8.3 | |
Insurance recoveries | 8.8 | |
Other Income [Member] | ||
Loss Contingencies [Line Items] | ||
Insurance recoveries in excess of net book value | $ 0.5 | |
Reconstruction of Facility [Member] | ||
Loss Contingencies [Line Items] | ||
Insurance recoveries | $ 3 |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current income tax: | |||||
Federal | $ (579) | ||||
State | $ 392 | $ 779 | (1,351) | ||
Foreign | (1) | (145) | |||
Total | 391 | 779 | (2,075) | ||
Deferred income tax: | |||||
Federal | (925) | 8,614 | |||
State | (181) | (1,938) | |||
Foreign | (40) | 841 | (1,009) | ||
Total | (40) | (265) | 5,667 | ||
Provision for income taxes | $ 1,120 | $ 130 | $ 351 | $ 514 | $ 3,592 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Tax Expense Computed at Statutory Federal Rate and Company's Tax Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||||
Computed expected tax expense | $ (94,737) | $ (81,107) | $ (41,113) | ||
State income taxes, net of federal tax effect | 259 | 395 | (2,171) | ||
Foreign income taxes | 202 | 1,645 | 136 | ||
Permanent differences | 1,980 | 2,261 | 1,215 | ||
Change in valuation allowance | 92,647 | 77,320 | 45,525 | ||
Provision for income taxes | $ 1,120 | $ 130 | $ 351 | $ 514 | $ 3,592 |
Income Taxes - Significant Port
Income Taxes - Significant Portions of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Gross deferred tax assets: | ||
Net operating loss carryforwards | $ 642,391 | $ 544,793 |
Deferred subscriber income | 13,722 | 7,433 |
Accrued expenses and allowances | 15,415 | 9,474 |
Purchased intangibles | 10,576 | 4,579 |
Inventory reserves | 9,333 | 4,156 |
Property and Equipment | 3,257 | |
Alternative minimum tax credit and research and development credit | 41 | 41 |
Valuation allowance | (234,771) | (139,585) |
Deferred Tax Assets, Net of Valuation Allowance, Total | 459,964 | 430,891 |
Gross deferred tax liabilities: | ||
Deferred subscriber acquisition costs | (466,783) | (437,595) |
Property and equipment | (1,715) | |
Prepaid expenses | (705) | (644) |
Deferred Tax Liabilities, Net | (467,488) | (439,954) |
Net deferred tax liabilities | $ (7,524) | $ (9,063) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes And Tax Related [Line Items] | |||
Net deferred tax liability | $ 8,037,000 | $ 7,524,000 | $ 9,027,000 |
Net deferred tax liability, current | 0 | 36,000 | |
Amount of net operating loss carryforwards to be recorded in additional paid in capital when realized | $ 11,500,000 | 11,500,000 | |
Research and development credits expiration beginning year | 2,030 | ||
Valuation allowance | $ 234,771,000 | 139,585,000 | |
Income tax returns year under examination | The Company's income tax returns for the tax years 2012 through 2015, remain subject to examination by the Internal Revenue Service and state authorities. | ||
Effective income tax rate | (2.55%) | ||
Canada [Member] | |||
Income Taxes And Tax Related [Line Items] | |||
Net operating loss carryforward expiration beginning year | 2,029 | ||
United States [Member] | |||
Income Taxes And Tax Related [Line Items] | |||
Net operating loss carryforward expiration beginning year | 2,026 | ||
Research and development credits | $ 41,000 | $ 41,000 | |
State [Member] | |||
Income Taxes And Tax Related [Line Items] | |||
Net operating loss carryforward expiration beginning year | 2,026 |
Income Taxes - Summary of Net O
Income Taxes - Summary of Net Operating Loss Carryforwards (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
United States [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carry forwards | $ 1,695,386 | $ 1,355,632 |
State [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carry forwards | 1,338,742 | 1,301,462 |
Canada [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carry forwards | 28,629 | 30,688 |
New Zealand [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carry forwards | $ 5,518 | $ 4,203 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation expense | $ 3.9 | $ 3.9 | |||
Compensation expense related to outstanding Incentive Units, recognized over a weighted-average period | 2 years 1 month 6 days | ||||
Stock Appreciation Rights (SARs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock compensation award, method of measurement | Black-Scholes option valuation model | Black-Scholes option valuation model | |||
Shares reserved for issuance | 53,621,143 | 53,621,143 | 53,621,143 | ||
Incentive Units Time Based Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock compensation award, method of measurement | Monte Carlo simulation valuation approach | ||||
Vivint Wireless [Member] | Stock Appreciation Rights Time Based Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock appreciation rights ("SARs"), vesting period | 5 years | 5 years | |||
Vivint Wireless [Member] | Stock Appreciation Rights (SARs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Incentive units issued as share-based compensation awards, outstanding | 81,000 | 17,500 | 81,000 | ||
Expected volatility | 65.00% | 65.00% | |||
Unrecognized compensation expense | $ 0.2 | $ 0.2 | |||
Compensation expense related to outstanding Incentive Units, recognized over a weighted-average period | 2 years 5 months 12 days | ||||
Weighted average grant date fair value of the outstanding units | $ 6.02 | $ 6.02 | $ 2.30 | ||
Expected dividends | 0.00% | 0.00% | |||
Vivint Wireless [Member] | Stock Appreciation Rights (SARs) [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected exercise term | 5 years 11 months 19 days | 5 years 11 months 19 days | |||
Risk-free rate | 1.73% | 1.73% | |||
Vivint Wireless [Member] | Stock Appreciation Rights (SARs) [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected exercise term | 6 years 5 months 16 days | 6 years 5 months 16 days | |||
Risk-free rate | 1.81% | 1.81% | |||
Vivint [Member] | Stock Appreciation Rights Time Based Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock appreciation rights ("SARs"), vesting period | 5 years | ||||
Vivint [Member] | Stock Appreciation Rights Time Based Awards [Member] | Share-based Compensation Award, Tranche One [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock compensation award, vesting percentage | 33.33% | 33.33% | |||
Vivint [Member] | Stock Appreciation Rights (SARs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Incentive units issued as share-based compensation awards, outstanding | 18,664,137 | 17,558,111 | 18,664,137 | ||
Share-based compensation awards, description | SARs are subject to time-based and performance-based vesting conditions, with one-third subject to ratable time-based vesting over a five year period and two-thirds subject to the achievement of certain investment return thresholds by 313. | SARs are subject to time-based and performance-based vesting conditions, with one-third subject to ratable time-based vesting over a five year period and two-thirds subject to the achievement of certain investment return thresholds by 313. | |||
Unrecognized compensation expense | $ 1.1 | $ 1.1 | |||
Compensation expense related to outstanding Incentive Units, recognized over a weighted-average period | 3 years 2 months 12 days | ||||
Weighted average grant date fair value of the outstanding units | $ 0.25 | $ 0.25 | 0.44 | ||
Expected dividends | 0.00% | 0.00% | |||
Vivint [Member] | Stock Appreciation Rights (SARs) [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected volatility | 65.00% | 65.00% | |||
Expected exercise term | 1 year 10 months 28 days | 1 year 10 months 28 days | |||
Risk-free rate | 0.52% | 0.52% | |||
Vivint [Member] | Stock Appreciation Rights (SARs) [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected volatility | 70.00% | 70.00% | |||
Expected exercise term | 6 years 6 months | 6 years 6 months | |||
Risk-free rate | 2.07% | 2.07% | |||
Vivint [Member] | Stock Appreciation Rights Performance Based Awards [Member] | Share-based Compensation Award, Tranche One [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock compensation award, vesting percentage | 66.67% | 66.67% | |||
313 Acquisition LLC [Member] | Incentive Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average grant date fair value of the outstanding units | $ 0.38 | $ 0.38 | $ 0.33 | ||
313 Acquisition LLC [Member] | Incentive Units [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected volatility | 65.00% | 65.00% | |||
Expected exercise term | 5 years | 5 years | |||
Risk-free rate | 1.88% | 1.88% | |||
313 Acquisition LLC [Member] | Incentive Units [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected exercise term | 6 years | 6 years | |||
Risk-free rate | 2.03% | 2.03% | |||
313 Acquisition LLC [Member] | Incentive Units Time Based Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation awards, description | The Incentive Units are subject to time-based and performance-based vesting conditions, with one-third subject to ratable time-based vesting over a five year period and two-thirds subject to the achievement of certain investment return thresholds by The Blackstone Group, L.P. and its affiliates | The Incentive Units are subject to time-based and performance-based vesting conditions, with one-third subject to ratable time-based vesting over a five year period and two-thirds subject to the achievement of certain investment return thresholds by The Blackstone Group, L.P. and its affiliates | |||
Stock appreciation rights ("SARs"), vesting period | 5 years | 5 years | |||
Stock compensation award, method of measurement | Monte Carlo simulation valuation approach | ||||
313 Acquisition LLC [Member] | Incentive Units Time Based Awards [Member] | Share-based Compensation Award, Tranche One [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock compensation award, vesting percentage | 33.33% | 3333.00% | |||
313 Acquisition LLC [Member] | Incentive Units Time Based Awards [Member] | Senior Management and Board [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Incentive units issued as share-based compensation awards | 73,962,836 | 73,962,836 | |||
313 Acquisition LLC [Member] | Incentive Units Time Based Awards [Member] | Chief Executive Officer and President [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Incentive units issued as share-based compensation awards | 4,315,106 | ||||
Incentive units issued as share-based compensation awards, outstanding | 42,169,456 | 42,169,456 | 42,169,456 | ||
313 Acquisition LLC [Member] | Incentive Units Performance Based Awards [Member] | Share-based Compensation Award, Tranche One [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock compensation award, vesting percentage | 66.67% | 6667.00% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Incentive Unit Activity (Detail) - 313 Acquisition LLC [Member] - Incentive Units [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding, Beginning Balance | 74,527,942 | 68,459,562 | |
Granted | 3,850,000 | 7,375,000 | |
Forfeited | (4,415,106) | (1,306,620) | |
Exercised | 0 | 0 | |
Outstanding, Ending Balance | 73,962,836 | 74,527,942 | 68,459,562 |
Unvested shares expected to vest | 59,474,350 | ||
Exercisable | 14,488,486 | ||
Weighted Average Exercise Price Per Share, Outstanding, Beginning Balance | $ 1.03 | $ 1 | |
Weighted Average Exercise Price Per Share, Granted | 2.40 | 1.30 | |
Weighted Average Exercise Price Per Share, Forfeited | 1.03 | 1 | |
Weighted Average Exercise Price Per Share, Exercised | 0 | 0 | |
Weighted Average Exercise Price Per Share, Outstanding, Ending Balance | 1.06 | $ 1.03 | $ 1 |
Weighted Average Exercise Price Per Share, Unvested shares expected to vest | 1.06 | ||
Weighted Average Exercise Price Per Share, Exercisable | $ 1.03 | ||
Outstanding, Weighted Average Remaining Contractual Life (Years) | 7 years 3 months 22 days | 8 years 2 months 9 days | 9 years 1 month 13 days |
Unvested shares expected to vest, Weighted Average Remaining Contractual Life (Years) | 7 years 4 months 2 days | ||
Exercisable at December 2015, Weighted Average Remaining Contractual Life (Years) | 7 years 2 months 5 days | ||
Outstanding, Aggregate Intrinsic Value | $ 104,562,869 | $ 20,145,882 | $ 20,537,869 |
Unvested shares expected to vest, Aggregate Intrinsic Value | 83,642,766 | ||
Exercisable, Aggregate Intrinsic Value | $ 20,920,103 |
Stock-Based Compensation - Su76
Stock-Based Compensation - Summary of the SAR Activity (Detail) - Stock Appreciation Rights (SARs) [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Vivint [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding, Beginning Balance | 6,696,660 | 7,906,250 | |
Converted | 3,259,934 | ||
Weighted Average Exercise Price Per Share, Converted | $ 0.70 | ||
Granted | 11,186,936 | 1,290,000 | |
Forfeited | (2,307,172) | (2,499,590) | |
Exercised | (172,221) | ||
Outstanding, Ending Balance | 18,664,137 | 6,696,660 | 7,906,250 |
Weighted Average Exercise Price Per Share, Outstanding, Beginning Balance | $ 1.04 | $ 1 | |
Unvested shares expected to vest | 16,956,220 | ||
Exercisable | 1,707,917 | ||
Weighted Average Exercise Price Per Share, Granted | $ 1.03 | 1.30 | |
Weighted Average Exercise Price Per Share, Forfeited | 0.80 | 1.04 | |
Weighted Average Exercise Price Per Share, Exercised | 0.68 | ||
Weighted Average Exercise Price Per Share, Outstanding, Ending Balance | 0.87 | $ 1.04 | $ 1 |
Weighted Average Exercise Price Per Share, Unvested shares expected to vest | 0.89 | ||
Weighted Average Exercise Price Per Share, Exercisable | $ 0.73 | ||
Converted, Weighted Average Remaining Contractual Life (Years) | 8 years 7 months 13 days | ||
Outstanding, Weighted Average Remaining Contractual Life (Years) | 8 years 7 months 28 days | 8 years 7 months 13 days | 9 years 6 months 18 days |
Unvested shares expected to vest, Weighted Average Remaining Contractual Life (Years) | 8 years 9 months 15 days | ||
Exercisable at December 2015, Weighted Average Remaining Contractual Life (Years) | 7 years 10 months 24 days | ||
Outstanding, Aggregate Intrinsic Value | $ 3,628,498 | $ 1,734,748 | $ 2,371,875 |
Unvested shares expected to vest, Aggregate Intrinsic Value | 3,041,171 | ||
Exercisable, Aggregate Intrinsic Value | $ 587,327 | ||
Vivint Wireless [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding, Beginning Balance | 70,000 | 70,000 | |
Granted | 11,000 | ||
Outstanding, Ending Balance | 81,000 | 70,000 | 70,000 |
Weighted Average Exercise Price Per Share, Outstanding, Beginning Balance | $ 5 | $ 5 | |
Unvested shares expected to vest | 49,700 | ||
Exercisable | 31,300 | ||
Weighted Average Exercise Price Per Share, Granted | $ 65.84 | ||
Weighted Average Exercise Price Per Share, Outstanding, Ending Balance | 13.26 | $ 5 | $ 5 |
Weighted Average Exercise Price Per Share, Unvested shares expected to vest | 14.43 | ||
Weighted Average Exercise Price Per Share, Exercisable | $ 11.41 | ||
Outstanding, Weighted Average Remaining Contractual Life (Years) | 7 years 7 months 28 days | 8 years 4 months 28 days | 9 years 5 months 1 day |
Unvested shares expected to vest, Weighted Average Remaining Contractual Life (Years) | 7 years 8 months 9 days | ||
Exercisable at December 2015, Weighted Average Remaining Contractual Life (Years) | 7 years 7 months 6 days |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total stock-based compensation | $ 58 | $ 789 | $ 3,121 | $ 1,936 | $ 1,956 |
Operating Expenses [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total stock-based compensation | 14 | 14 | 71 | 63 | 62 |
Selling Expenses [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total stock-based compensation | (294) | 33 | 578 | 185 | 158 |
General and Administrative Expenses [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total stock-based compensation | $ 338 | $ 742 | $ 2,472 | $ 1,688 | $ 1,736 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Aug. 31, 2014 | Jul. 31, 2012 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments And Contingencies [Line Items] | |||||||
Loss contingency accrual | $ 2,200 | $ 2,500 | $ 9,700 | ||||
Operating leases with related and unrelated parties expiring year | 2,028 | 2,028 | |||||
Initial lease term | 11 years | 15 years | |||||
Rent expense for operating leases | $ 15,100 | 11,000 | $ 6,100 | ||||
Capital lease obligation | $ 17,600 | $ 18,800 | $ 16,200 | ||||
Lease expiration date | 2020-07 | ||||||
Rent Expense | $ 3,974 | $ 3,585 | |||||
Software Licenses, Marketing Activities, and Other Goods and Services [Member] | |||||||
Commitments And Contingencies [Line Items] | |||||||
Other off-balance sheet obligations | $ 69,700 | ||||||
Vehicles [Member] | |||||||
Commitments And Contingencies [Line Items] | |||||||
Lease agreements term | 36 months | 36 months | |||||
Average remaining life for fleet | 23 months | 24 months | |||||
Minimum [Member] | |||||||
Commitments And Contingencies [Line Items] | |||||||
Operating Leases, lease terms | 1 year | ||||||
Maximum [Member] | |||||||
Commitments And Contingencies [Line Items] | |||||||
Operating Leases, lease terms | 10 years | ||||||
Warehouse, office space and other [Member] | |||||||
Commitments And Contingencies [Line Items] | |||||||
Rent Expense | $ 2,812 | 2,923 | |||||
Warehouse, office space and other [Member] | Minimum [Member] | |||||||
Commitments And Contingencies [Line Items] | |||||||
Lease Term | 11 years | ||||||
Warehouse, office space and other [Member] | Maximum [Member] | |||||||
Commitments And Contingencies [Line Items] | |||||||
Lease Term | 15 years | ||||||
Wireless towers and spectrum [Member] | |||||||
Commitments And Contingencies [Line Items] | |||||||
Rent Expense | $ 1,162 | $ 662 | |||||
Wireless towers and spectrum [Member] | Minimum [Member] | |||||||
Commitments And Contingencies [Line Items] | |||||||
Lease Term | 1 year | ||||||
Wireless towers and spectrum [Member] | Maximum [Member] | |||||||
Commitments And Contingencies [Line Items] | |||||||
Lease Term | 10 years |
Commitments and Contingencies79
Commitments and Contingencies - Future Minimum Lease Payments (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Operating | |
2,016 | $ 17,274 |
2,017 | 16,652 |
2,018 | 15,007 |
2,019 | 14,789 |
2,020 | 13,075 |
Thereafter | 63,188 |
Amounts representing interest | 0 |
Total lease payments | 139,985 |
Capital | |
2,016 | 8,440 |
2,017 | 8,281 |
2,018 | 3,298 |
2,019 | 30 |
2,020 | 11 |
Thereafter | 0 |
Amounts representing interest | (1,272) |
Total lease payments | 18,788 |
Total | |
2,016 | 25,714 |
2,017 | 24,933 |
2,018 | 18,305 |
2,019 | 14,819 |
2,020 | 13,086 |
Thereafter | 63,188 |
Amounts representing interest | (1,272) |
Total lease payments | $ 158,773 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | Oct. 10, 2014 | Sep. 03, 2014 | Dec. 27, 2012 | Apr. 30, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Related Party Transaction [Line Items] | |||||||||
Capital contribution received | $ 55,000,000 | $ 32,300,000 | |||||||
Dividend paid to stockholders | $ 50,000,000 | 50,000,000 | $ 60,000,000 | ||||||
Additional expenses incurred for other related-party transactions | $ 600,000 | $ 400,000 | $ 2,500,000 | 3,100,000 | 3,100,000 | ||||
Accrued expenses and other current liabilities | 76,613,000 | 35,573,000 | 28,862,000 | ||||||
Non-cash gain on settlement of Merger-related escrow | $ 12,200,000 | 12,200,000 | |||||||
Prepaid expenses and other current assets | $ 100,000 | $ 200,000 | 300,000 | ||||||
Expected repayment period | 1 year | 1 year | |||||||
Amounts due from employees | $ 300,000 | $ 300,000 | 300,000 | ||||||
Vivint [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Accrued expenses and other current liabilities | 1,600,000 | 1,700,000 | 1,300,000 | ||||||
APX Group, Inc. [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Capital contribution received | 32,300,000 | ||||||||
Dividend paid to stockholders | $ 50,000,000 | 50,000,000 | 60,000,000 | ||||||
Solar [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Sublease and other administrative expenses | 1,400,000 | 1,800,000 | 7,100,000 | 8,500,000 | |||||
Other expenses | $ 900,000 | $ 1,900,000 | 2,100,000 | ||||||
Line of credit, financing receivable, maximum borrowing capacity | $ 20,000,000 | ||||||||
Interest on outstanding balance | 7.50% | ||||||||
Periodic payment of interest payable due | Payable semi-annually on June 1 and December 1 of each year commencing on June 1, 2013 | ||||||||
Blackstone Management Partners L.L.C. [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Payment of annual monitoring fee description | Company agreed to pay an annual monitoring fee equal to the greater of (i) a minimum base fee of $2.7 million, subject to adjustments if the Company engages in a business combination or disposition that is deemed significant and (ii) the amount of the monitoring fee paid in respect of the immediately preceding fiscal year, without regard to any post-fiscal year "true-up" adjustments as determined by the agreement. | Company agreed to pay an annual monitoring fee equal to the greater of (i) a minimum base fee of $2.7 million subject to adjustments if the Company engages in a business combination or disposition that is deemed significant and (ii) the amount of the monitoring fee paid in respect of the immediately preceding fiscal year, without regard to any post-fiscal year "true-up" adjustments as determined by the agreement. | |||||||
Prepaid expenses and other current assets | $ 2,000,000 | $ 3,600,000 | $ 3,200,000 | $ 2,900,000 | |||||
Transaction fees paid | 20,000,000 | ||||||||
Fee paid for support services by BMP to Company | 1,500,000 | ||||||||
Expenses related to agreement | 800,000 | 700,000 | |||||||
Blackstone Management Partners L.L.C. [Member] | Blackstone Management Partners LLC Support and Services Agreement | |||||||||
Related Party Transaction [Line Items] | |||||||||
Expenses related to agreement | 0 | $ 0 | |||||||
Maximum advisory fee obligation | 1,500,000 | ||||||||
Blackstone Management Partners L.L.C. [Member] | Minimum [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Annual monitoring base fee, minimum | $ 2,700,000 | $ 2,700,000 |
Segment Reporting and Busines81
Segment Reporting and Business Concentrations - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016SegmentRegion | Mar. 31, 2015SegmentRegion | Mar. 31, 2013Segment | Dec. 31, 2015SegmentRegion | Dec. 31, 2014Segment | |
Segment Reporting [Abstract] | |||||
Number of operating segments | Segment | 1 | 1 | 2 | 1 | 1 |
Primarily operations in geographic regions | Region | 3 | 3 | 3 |
Segment Reporting and Busines82
Segment Reporting and Business Concentrations - Summary of Revenue, Costs and Expenses and Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||
Revenues | $ 174,253 | $ 152,197 | $ 653,721 | $ 563,677 | $ 500,908 |
Total costs and expenses | 177,928 | 161,896 | 762,396 | 657,546 | 555,788 |
(Loss) income from operations | (3,675) | $ (9,699) | (108,675) | (93,869) | (54,880) |
Intangible assets, including goodwill | 1,677,032 | ||||
Total assets | $ 2,350,848 | $ 2,303,644 | $ 2,255,586 | 2,303,644 | |
Operating Segments [Member] | Vivint [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 483,401 | ||||
Total costs and expenses | 536,502 | ||||
(Loss) income from operations | (53,101) | ||||
Intangible assets, including goodwill | 1,677,032 | ||||
Total assets | 2,303,644 | ||||
Operating Segments [Member] | 2GIG [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 60,220 | ||||
Total costs and expenses | 52,200 | ||||
(Loss) income from operations | 8,020 | ||||
Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | (42,713) | ||||
Total costs and expenses | (32,914) | ||||
(Loss) income from operations | $ (9,799) |
Segment Reporting and Busines83
Segment Reporting and Business Concentrations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue from external customers | $ 174,253 | $ 152,197 | $ 653,721 | $ 563,677 | $ 500,908 |
Property and equipment, net | 55,169 | 55,274 | 62,790 | 35,818 | |
United States [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue from external customers | 161,251 | 139,705 | 602,418 | 529,521 | 474,344 |
Property and equipment, net | 55,032 | 55,103 | 62,368 | 35,220 | |
Canada [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue from external customers | 13,002 | $ 12,492 | 51,303 | 34,156 | 26,564 |
Property and equipment, net | $ 137 | $ 171 | $ 422 | $ 598 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Postemployment Benefits [Abstract] | |||||
Matching contributions to the plan | $ 0 | $ 0 | $ 0 | $ 0 | $ 36,000 |
Guarantor and Non-Guarantor S85
Guarantor and Non-Guarantor Supplemental Financial Information - Supplemental Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Assets | |||||
Current assets | $ 82,604 | $ 47,566 | $ 85,371 | ||
Property and equipment, net | 55,169 | 55,274 | 62,790 | $ 35,818 | |
Subscriber acquisition costs, net | 828,294 | 790,644 | 548,073 | ||
Deferred financing costs, net | 5,948 | 6,456 | 4,071 | ||
Intangible assets, net | 532,057 | 558,395 | 703,226 | ||
Goodwill | 836,098 | 834,416 | 841,522 | 836,318 | |
Long-term investments and other assets | 10,678 | 10,893 | 10,533 | ||
Total assets | 2,350,848 | 2,303,644 | 2,255,586 | 2,303,644 | |
Liabilities and Stockholders' (Deficit) Equity | |||||
Current liabilities | 237,568 | 168,518 | 136,940 | ||
Notes payable and revolving credit facility, net of current portion | 2,156,217 | 2,138,112 | 1,835,068 | ||
Capital lease obligations, net of current portion | 9,827 | 11,171 | 10,655 | ||
Deferred revenue, net of current portion | 47,241 | 44,782 | 32,504 | ||
Other long-term obligations | 11,225 | 10,530 | 6,906 | ||
Deferred income tax liability | 8,037 | 7,524 | 9,027 | ||
Total (deficit) equity | (119,267) | (76,993) | 224,486 | $ 490,243 | $ 679,279 |
Total liabilities and stockholders' (deficit) equity | 2,350,848 | 2,303,644 | 2,255,586 | ||
Eliminations [Member] | |||||
Assets | |||||
Current assets | (56,833) | (53,066) | (40,686) | ||
Investment in subsidiaries | (2,088,923) | (2,070,404) | (2,282,343) | ||
Intercompany receivable | (18,732) | (22,398) | (34,000) | ||
Long-term investments and other assets | (106) | (106) | (184) | ||
Total assets | (2,164,594) | (2,145,974) | (2,357,213) | ||
Liabilities and Stockholders' (Deficit) Equity | |||||
Current liabilities | (56,833) | (53,066) | (40,686) | ||
Intercompany payable | (18,732) | (22,398) | (34,000) | ||
Accumulated losses of investee | (119,267) | (76,993) | |||
Deferred income tax liability | (106) | (106) | (184) | ||
Total (deficit) equity | (1,969,656) | (1,993,411) | (2,282,343) | ||
Total liabilities and stockholders' (deficit) equity | (2,164,594) | (2,145,974) | (2,357,213) | ||
Parent [Member] | |||||
Assets | |||||
Current assets | 0 | ||||
Investment in subsidiaries | 0 | 0 | 224,486 | ||
Total assets | 0 | 0 | 224,486 | ||
Liabilities and Stockholders' (Deficit) Equity | |||||
Accumulated losses of investee | 119,267 | 76,993 | |||
Total (deficit) equity | (119,267) | (76,993) | 224,486 | ||
Total liabilities and stockholders' (deficit) equity | 0 | 0 | 224,486 | ||
APX Group, Inc. [Member] | |||||
Assets | |||||
Current assets | 3,640 | 2,537 | 9,435 | ||
Deferred financing costs, net | 5,948 | 6,456 | 4,071 | ||
Investment in subsidiaries | 2,088,923 | 2,070,404 | 2,057,857 | ||
Long-term investments and other assets | 106 | 106 | 184 | ||
Total assets | 2,098,617 | 2,079,503 | 2,071,547 | ||
Liabilities and Stockholders' (Deficit) Equity | |||||
Current liabilities | 61,667 | 18,384 | 11,993 | ||
Notes payable and revolving credit facility, net of current portion | 2,156,217 | 2,138,112 | 1,835,068 | ||
Total (deficit) equity | (119,267) | (76,993) | 224,486 | ||
Total liabilities and stockholders' (deficit) equity | 2,098,617 | 2,079,503 | 2,071,547 | ||
Guarantor Subsidiaries [Member] | |||||
Assets | |||||
Current assets | 130,490 | 91,555 | 109,996 | ||
Property and equipment, net | 54,946 | 55,012 | 62,271 | ||
Subscriber acquisition costs, net | 760,052 | 728,547 | 500,916 | ||
Intercompany receivable | 18,732 | 22,398 | 34,000 | ||
Intangible assets, net | 492,419 | 519,301 | 645,558 | ||
Goodwill | 809,678 | 809,678 | 811,947 | ||
Long-term investments and other assets | 10,663 | 10,880 | 10,502 | ||
Total assets | 2,276,980 | 2,237,371 | 2,175,190 | ||
Liabilities and Stockholders' (Deficit) Equity | |||||
Current liabilities | 169,003 | 143,896 | 119,285 | ||
Capital lease obligations, net of current portion | 9,825 | 11,169 | 10,646 | ||
Deferred revenue, net of current portion | 43,058 | 40,960 | 29,438 | ||
Other long-term obligations | 11,225 | 10,530 | 6,497 | ||
Deferred income tax liability | 106 | 106 | 107 | ||
Total (deficit) equity | 2,043,763 | 2,030,710 | 2,009,217 | ||
Total liabilities and stockholders' (deficit) equity | 2,276,980 | 2,237,371 | 2,175,190 | ||
Non-Guarantor Subsidiaries [Member] | |||||
Assets | |||||
Current assets | 5,307 | 6,540 | 6,626 | ||
Property and equipment, net | 223 | 262 | 519 | ||
Subscriber acquisition costs, net | 68,242 | 62,097 | 47,157 | ||
Intangible assets, net | 39,638 | 39,094 | 57,668 | ||
Goodwill | 26,420 | 24,738 | 29,575 | ||
Long-term investments and other assets | 15 | 13 | 31 | ||
Total assets | 139,845 | 132,744 | 141,576 | ||
Liabilities and Stockholders' (Deficit) Equity | |||||
Current liabilities | 63,731 | 59,304 | 46,348 | ||
Intercompany payable | 18,732 | 22,398 | 34,000 | ||
Capital lease obligations, net of current portion | 2 | 2 | 9 | ||
Deferred revenue, net of current portion | 4,183 | 3,822 | 3,066 | ||
Other long-term obligations | 409 | ||||
Deferred income tax liability | 8,037 | 7,524 | 9,104 | ||
Total (deficit) equity | 45,160 | 39,694 | 48,640 | ||
Total liabilities and stockholders' (deficit) equity | $ 139,845 | $ 132,744 | $ 141,576 |
Guarantor and Non-Guarantor S86
Guarantor and Non-Guarantor Supplemental Financial Information - Supplemental Condensed Consolidating Statements of Operations and Comprehensive (Loss) Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Income Statements, Captions [Line Items] | |||||
Revenues | $ 174,253 | $ 152,197 | $ 653,721 | $ 563,677 | $ 500,908 |
Costs and expenses | 177,928 | 161,896 | 762,396 | 657,546 | 555,788 |
(Loss) income from operations | (3,675) | (9,699) | (108,675) | (93,869) | (54,880) |
Other (expense) income, net | (40,298) | (38,217) | (170,081) | (144,277) | (66,041) |
(Loss) income before income tax expenses | (43,973) | (47,916) | (278,756) | (238,146) | (120,921) |
Income tax expense | 1,120 | 130 | 351 | 514 | 3,592 |
Net (loss) income | (45,093) | (48,046) | (279,107) | (238,660) | (124,513) |
Other comprehensive (loss) income, net of tax effects: | |||||
Net (loss) income | (45,093) | (48,046) | (279,107) | (238,660) | (124,513) |
Foreign currency translation adjustment | 2,761 | (10,578) | (13,293) | (11,333) | (8,558) |
Total other comprehensive (loss) income | 2,761 | (10,578) | (13,293) | (11,333) | (8,558) |
Comprehensive (loss) income | (42,332) | (58,624) | (292,400) | (249,993) | (133,071) |
Eliminations [Member] | |||||
Condensed Income Statements, Captions [Line Items] | |||||
Revenues | (675) | (770) | (2,808) | (3,122) | (3,050) |
Costs and expenses | (675) | (770) | (2,808) | (3,122) | (3,050) |
(Loss) income from subsidiaries | 45,138 | 58,138 | 397,992 | 332,510 | 182,265 |
Other (expense) income, net | 0 | ||||
(Loss) income before income tax expenses | 45,138 | 58,138 | 397,992 | 332,510 | 182,265 |
Net (loss) income | 45,138 | 58,138 | 397,992 | 332,510 | 182,265 |
Other comprehensive (loss) income, net of tax effects: | |||||
Net (loss) income | 45,138 | 58,138 | 397,992 | 332,510 | 182,265 |
Foreign currency translation adjustment | (2,761) | 10,578 | 13,292 | 11,333 | 8,558 |
Total other comprehensive (loss) income | (2,761) | 10,578 | 13,292 | 11,333 | |
Comprehensive (loss) income | 42,377 | 68,716 | 411,284 | 343,843 | 190,823 |
Parent [Member] | |||||
Condensed Income Statements, Captions [Line Items] | |||||
(Loss) income from subsidiaries | (45,093) | (48,046) | (279,107) | (238,660) | (124,513) |
Other (expense) income, net | 0 | ||||
(Loss) income before income tax expenses | (45,093) | (48,046) | (279,107) | (238,660) | (124,513) |
Net (loss) income | (45,093) | (48,046) | (279,107) | (238,660) | (124,513) |
Other comprehensive (loss) income, net of tax effects: | |||||
Net (loss) income | (45,093) | (48,046) | (279,107) | (238,660) | (124,513) |
Comprehensive (loss) income | (45,093) | (48,046) | (279,107) | (238,660) | (124,513) |
APX Group, Inc. [Member] | |||||
Condensed Income Statements, Captions [Line Items] | |||||
(Loss) income from subsidiaries | (45) | (10,092) | (118,885) | (93,850) | (57,752) |
Other (expense) income, net | (45,048) | (37,954) | (160,222) | (145,917) | (66,867) |
(Loss) income before income tax expenses | (45,093) | (48,046) | (279,107) | (239,767) | (124,619) |
Income tax expense | (1,107) | (106) | |||
Net (loss) income | (45,093) | (48,046) | (279,107) | (238,660) | (124,513) |
Other comprehensive (loss) income, net of tax effects: | |||||
Net (loss) income | (45,093) | (48,046) | (279,107) | (238,660) | (124,513) |
Foreign currency translation adjustment | 2,761 | (10,578) | (13,293) | (11,333) | (8,558) |
Total other comprehensive (loss) income | 2,761 | (10,578) | (13,293) | (11,333) | |
Comprehensive (loss) income | (42,332) | (58,624) | (292,400) | (249,993) | (133,071) |
Guarantor Subsidiaries [Member] | |||||
Condensed Income Statements, Captions [Line Items] | |||||
Revenues | 165,941 | 144,737 | 622,507 | 530,888 | 476,168 |
Costs and expenses | 170,289 | 154,900 | 730,322 | 623,124 | 527,403 |
(Loss) income from operations | (4,348) | (10,163) | (107,815) | (92,236) | (51,235) |
Other (expense) income, net | 1,664 | (247) | (9,763) | 1,676 | 906 |
(Loss) income before income tax expenses | (2,684) | (10,410) | (117,578) | (90,560) | (50,329) |
Income tax expense | 64 | 40 | 392 | 779 | 4,853 |
Net (loss) income | (2,748) | (10,450) | (117,970) | (91,339) | (55,182) |
Other comprehensive (loss) income, net of tax effects: | |||||
Net (loss) income | (2,748) | (10,450) | (117,970) | (91,339) | (55,182) |
Foreign currency translation adjustment | 0 | (6,336) | 2 | (6,895) | (4,641) |
Total other comprehensive (loss) income | 0 | (6,336) | 2 | (6,895) | |
Comprehensive (loss) income | (2,748) | (16,786) | (117,968) | (98,234) | (59,823) |
Non-Guarantor Subsidiaries [Member] | |||||
Condensed Income Statements, Captions [Line Items] | |||||
Revenues | 8,987 | 8,230 | 34,022 | 35,911 | 27,790 |
Costs and expenses | 8,314 | 7,766 | 34,882 | 37,544 | 31,435 |
(Loss) income from operations | 673 | 464 | (860) | (1,633) | (3,645) |
Other (expense) income, net | 3,086 | (16) | (96) | (36) | (80) |
(Loss) income before income tax expenses | 3,759 | 448 | (956) | (1,669) | (3,725) |
Income tax expense | 1,056 | 90 | (41) | 842 | (1,155) |
Net (loss) income | 2,703 | 358 | (915) | (2,511) | (2,570) |
Other comprehensive (loss) income, net of tax effects: | |||||
Net (loss) income | 2,703 | 358 | (915) | (2,511) | (2,570) |
Foreign currency translation adjustment | 2,761 | (4,242) | (13,294) | (4,438) | (3,917) |
Total other comprehensive (loss) income | 2,761 | (4,242) | (13,294) | (4,438) | |
Comprehensive (loss) income | $ 5,464 | $ (3,884) | $ (14,209) | $ (6,949) | $ (6,487) |
Guarantor and Non-Guarantor S87
Guarantor and Non-Guarantor Supplemental Financial Information - Supplemental Condensed Consolidating Statements of Cash Flows (Detail) - USD ($) $ in Thousands | Oct. 10, 2014 | Sep. 03, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Cash flows from operating activities: | |||||||
Net cash (used in) provided by operating activities | $ (12,505) | $ 16,332 | $ (255,307) | $ (309,637) | $ (218,876) | ||
Cash flows from investing activities: | |||||||
Subscriber acquisition costs | (63) | (6,846) | (24,740) | (10,580) | (342) | ||
Capital expenditures | (3,070) | (10,002) | (26,982) | (30,500) | (8,973) | ||
Proceeds from the sale of subsidiary | 144,750 | ||||||
Proceeds from sale of capital assets | 926 | 188 | 480 | 964 | 306 | ||
Acquisition of intangible assets | (235) | (736) | (1,363) | (9,649) | |||
Proceeds from insurance claims | 0 | 2,984 | 2,984 | ||||
Net cash used in acquisition | (18,500) | (4,272) | |||||
Acquisition of other assets | 0 | (67) | (208) | (2,162) | (9,645) | ||
Investment in marketable securities | (60,000) | ||||||
Proceeds from marketable securities | 60,069 | ||||||
Proceeds from note receivable | 22,699 | ||||||
Change in restricted cash | 14,214 | 14,375 | (161) | ||||
Investment in convertible note | (3,000) | ||||||
Other assets | (208) | (2,162) | (9,645) | ||||
Net cash (used in) provided by investing activities | (2,442) | (14,479) | (35,615) | (36,284) | 121,663 | ||
Cash flows from financing activities: | |||||||
Proceeds from notes payable | 296,250 | 102,000 | 457,250 | ||||
Borrowings from revolving credit facility | 21,000 | 22,500 | 271,000 | 20,000 | 22,500 | ||
Repayment of revolving line of credit | (5,000) | (10,000) | (271,000) | (50,500) | |||
Proceeds from contract sales | 2,261 | ||||||
Acquisition of contracts | (2,277) | ||||||
Repayments of capital lease obligations | (1,974) | (2,280) | (6,414) | (6,300) | (7,207) | ||
Deferred financing costs | 0 | (4,233) | (5,436) | (2,927) | (10,896) | ||
Capital contribution | $ 55,000 | 32,300 | |||||
Payment of dividends | $ (50,000) | (50,000) | (60,000) | ||||
Net cash (used in) provided by financing activities | 14,026 | 5,987 | 284,400 | 95,057 | 351,147 | ||
Effect of exchange rate changes on cash | (1,126) | (601) | (1,726) | (234) | (119) | ||
Net (decrease) increase in cash | (2,047) | 7,239 | (8,248) | (251,098) | 253,815 | ||
Cash: | |||||||
Beginning of period | 2,559 | 10,807 | 10,807 | 261,905 | 8,090 | ||
End of period | 512 | 18,046 | 2,559 | 10,807 | 261,905 | ||
Eliminations [Member] | |||||||
Cash flows from operating activities: | |||||||
Net cash (used in) provided by operating activities | (50,000) | (60,000) | |||||
Cash flows from investing activities: | |||||||
Investment in subsidiary | 14,615 | 9,869 | 296,895 | 372,324 | 254,394 | ||
Net cash (used in) provided by investing activities | 14,615 | 9,869 | 296,895 | 372,324 | 254,394 | ||
Cash flows from financing activities: | |||||||
Intercompany receivable | (3,667) | 2,125 | (11,601) | (10,658) | (7,096) | ||
Intercompany payable | (10,948) | (11,994) | (285,294) | (329,366) | (247,298) | ||
Capital contribution | (32,300) | ||||||
Payment of dividends | 50,000 | 60,000 | |||||
Net cash (used in) provided by financing activities | (14,615) | (9,869) | (296,895) | (322,324) | (194,394) | ||
Parent [Member] | |||||||
Cash flows from operating activities: | |||||||
Net cash (used in) provided by operating activities | 50,000 | 60,000 | |||||
Cash flows from investing activities: | |||||||
Investment in subsidiary | (32,300) | ||||||
Net cash (used in) provided by investing activities | (32,300) | ||||||
Cash flows from financing activities: | |||||||
Capital contribution | 32,300 | ||||||
Payment of dividends | (50,000) | (60,000) | |||||
Net cash (used in) provided by financing activities | (17,700) | (60,000) | |||||
APX Group, Inc. [Member] | |||||||
Cash flows from operating activities: | |||||||
Net cash (used in) provided by operating activities | (196) | (268) | (1,052) | (894) | (201) | ||
Cash flows from investing activities: | |||||||
Proceeds from the sale of subsidiary | 144,750 | ||||||
Investment in subsidiary | (14,615) | (9,869) | (296,895) | (340,024) | (254,394) | ||
Investment in marketable securities | (60,000) | ||||||
Proceeds from marketable securities | 60,069 | ||||||
Net cash (used in) provided by investing activities | (14,615) | (9,869) | (296,895) | (339,955) | (109,644) | ||
Cash flows from financing activities: | |||||||
Proceeds from notes payable | 296,250 | 102,000 | 457,250 | ||||
Borrowings from revolving credit facility | 21,000 | 22,500 | 271,000 | 20,000 | 22,500 | ||
Repayment of revolving line of credit | (5,000) | (10,000) | (271,000) | (50,500) | |||
Deferred financing costs | (4,233) | (5,436) | (2,927) | (10,896) | |||
Capital contribution | 32,300 | ||||||
Payment of dividends | $ (50,000) | (50,000) | (60,000) | ||||
Net cash (used in) provided by financing activities | 16,000 | 8,267 | 290,814 | 101,373 | 358,354 | ||
Net (decrease) increase in cash | 1,189 | (1,870) | (7,133) | (239,476) | 248,509 | ||
Cash: | |||||||
Beginning of period | 2,299 | 9,432 | 9,432 | 248,908 | 399 | ||
End of period | 3,488 | 7,562 | 2,299 | 9,432 | 248,908 | ||
Guarantor Subsidiaries [Member] | |||||||
Cash flows from operating activities: | |||||||
Net cash (used in) provided by operating activities | (15,268) | 9,884 | (267,327) | (318,734) | (227,146) | ||
Cash flows from investing activities: | |||||||
Subscriber acquisition costs | (63) | (6,815) | (23,641) | (10,580) | (342) | ||
Capital expenditures | (3,070) | (10,002) | (26,941) | (30,315) | (8,917) | ||
Proceeds from sale of capital assets | 926 | 188 | 480 | 964 | 306 | ||
Acquisition of intangible assets | (235) | (736) | (1,363) | (9,649) | |||
Proceeds from insurance claims | 2,984 | 2,984 | |||||
Net cash used in acquisition | (18,500) | (4,272) | |||||
Acquisition of other assets | (81) | ||||||
Proceeds from note receivable | 22,699 | ||||||
Change in restricted cash | 14,214 | 14,375 | (161) | ||||
Investment in convertible note | (3,000) | ||||||
Other assets | (208) | (2,153) | (9,648) | ||||
Net cash (used in) provided by investing activities | (2,442) | (14,462) | (34,475) | (36,159) | (23,034) | ||
Cash flows from financing activities: | |||||||
Intercompany receivable | 3,667 | (2,125) | 11,601 | 10,658 | 7,096 | ||
Intercompany payable | 14,615 | 9,869 | 296,895 | 340,024 | 254,394 | ||
Proceeds from contract sales | 2,261 | ||||||
Acquisition of contracts | (2,277) | ||||||
Repayments of capital lease obligations | (1,974) | (2,279) | (6,402) | (6,297) | (7,207) | ||
Net cash (used in) provided by financing activities | 16,308 | 5,465 | 302,094 | 344,369 | 254,283 | ||
Net (decrease) increase in cash | (1,402) | 887 | 292 | (10,524) | 4,103 | ||
Cash: | |||||||
Beginning of period | (1,941) | (2,233) | (2,233) | 8,291 | 4,188 | ||
End of period | (3,343) | (1,346) | (1,941) | (2,233) | 8,291 | ||
Non-Guarantor Subsidiaries [Member] | |||||||
Cash flows from operating activities: | |||||||
Net cash (used in) provided by operating activities | 2,959 | 6,716 | 13,072 | 9,991 | 8,471 | ||
Cash flows from investing activities: | |||||||
Subscriber acquisition costs | (31) | (1,099) | |||||
Capital expenditures | (41) | (185) | (56) | ||||
Acquisition of other assets | 14 | ||||||
Other assets | (9) | 3 | |||||
Net cash (used in) provided by investing activities | (17) | (1,140) | (194) | (53) | |||
Cash flows from financing activities: | |||||||
Intercompany payable | (3,667) | 2,125 | (11,601) | (10,658) | (7,096) | ||
Repayments of capital lease obligations | (1) | (12) | (3) | ||||
Net cash (used in) provided by financing activities | (3,667) | 2,124 | (11,613) | (10,661) | (7,096) | ||
Effect of exchange rate changes on cash | (1,126) | (601) | (1,726) | (234) | (119) | ||
Net (decrease) increase in cash | (1,834) | 8,222 | (1,407) | (1,098) | 1,203 | ||
Cash: | |||||||
Beginning of period | 2,201 | 3,608 | 3,608 | 4,706 | 3,503 | ||
End of period | $ 367 | $ 11,830 | $ 2,201 | $ 3,608 | $ 4,706 |
Retrospective Adoption of ASU88
Retrospective Adoption of ASU 2015-03 - Additional Information (Detail) - Accounting Standards Update 2015-03 [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Decrease in Deferred Financing cost | $ (40.2) | $ (48.1) |
Decrease in Notes Payable | $ (40.2) | $ (48.1) |
Subsequent Events (Detail)
Subsequent Events (Detail) - Subsequent Event - USD ($) | May 26, 2016 | Apr. 27, 2016 |
APX Group, Inc. [Member] | Senior Secured Notes Due 2022 [Member] | ||
Subsequent Event [Line Items] | ||
Face Value | $ 500,000,000 | |
Stated Interest Rate | 7.875% | |
Issue date | May 26, 2016 | |
Maturity date | Dec. 1, 2022 | |
APX Group, Inc. [Member] | 6.375 % Senior Notes Due 2019 And 8.875% Senior Notes Due 2022 [Member] | ||
Subsequent Event [Line Items] | ||
Repurchase of debt | $ 235,000,000 | |
Preferred Stock [Member] | Parent [Member] | ||
Subsequent Event [Line Items] | ||
Proceeds from issuance of private placement | $ 69.8 |