Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |
Document Type | S4 |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2017 |
Trading Symbol | ck0001584423 |
Entity Registrant Name | APX Group Holdings, Inc. |
Entity Central Index Key | 1,584,423 |
Entity Filer Category | Non-accelerated Filer |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Current Assets: | |||
Cash and cash equivalents | $ 1,470 | $ 43,520 | $ 2,559 |
Accounts and notes receivable, net | 26,182 | 12,891 | 8,060 |
Inventories | 112,509 | 38,452 | 26,321 |
Prepaid expenses and other current assets | 14,773 | 10,158 | 10,626 |
Total current assets | 154,934 | 105,021 | 47,566 |
Property, plant and equipment, net | 65,659 | 63,626 | 55,274 |
Subscriber acquisition costs, net | 1,170,287 | 1,052,434 | 790,644 |
Deferred financing costs, net | 3,407 | 4,420 | 6,456 |
Intangible assets, net | 426,616 | 475,392 | 558,395 |
Goodwill | 836,115 | 835,233 | 834,416 |
Long-term investments and other assets, net | 58,953 | 11,536 | 10,893 |
Total assets | 2,715,971 | 2,547,662 | 2,303,644 |
Current Liabilities: | |||
Accounts payable | 110,944 | 49,119 | 52,207 |
Accrued payroll and commissions | 54,201 | 46,288 | 38,247 |
Accrued expenses and other current liabilities | 48,439 | 34,265 | 35,573 |
Deferred revenue | 66,705 | 45,722 | 34,875 |
Current portion of capital lease obligations | 8,731 | 9,797 | 7,616 |
Total current liabilities | 289,020 | 185,191 | 168,518 |
Notes payable, net | 2,511,225 | 2,486,700 | 2,118,112 |
Revolving credit facility | 100,000 | 0 | 20,000 |
Capital lease obligations, net of current portion | 4,949 | 7,935 | 11,171 |
Deferred revenue, net of current portion | 154,244 | 58,734 | 44,782 |
Other long-term obligations | 58,930 | 47,080 | 10,530 |
Deferred income tax liabilities | 7,452 | 7,204 | 7,524 |
Total liabilities | 3,125,820 | 2,792,844 | 2,380,637 |
Commitments and contingencies | |||
Stockholders' deficit: | |||
Common stock, $0.01 par value, 100 shares authorized; 100 shares issued and outstanding | 0 | 0 | 0 |
Additional paid-in capital | 732,841 | 731,920 | 627,645 |
Accumulated deficit | (1,115,245) | (948,339) | (672,382) |
Accumulated other comprehensive loss | (27,445) | (28,763) | (32,256) |
Total stockholders' deficit | (409,849) | (245,182) | (76,993) |
Total liabilities and stockholders' (deficit) equity | $ 2,715,971 | $ 2,547,662 | $ 2,303,644 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 100 | 100 | 100 |
Common stock, issued (in shares) | 100 | 100 | 100 |
Common stock, outstanding (in shares) | 100 | 100 | 100 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues: | |||||
Recurring and other revenue | $ 399,641 | $ 339,918 | $ 724,478 | $ 624,989 | $ 537,695 |
Service and other sales revenue | 11,749 | 10,837 | 22,855 | 22,700 | 21,980 |
Activation fees | 6,089 | 4,305 | 10,574 | 6,032 | 4,002 |
Total revenues | 417,479 | 355,060 | 757,907 | 653,721 | 563,677 |
Costs and expenses: | |||||
Operating expenses (exclusive of depreciation and amortization shown separately below) | 148,668 | 126,934 | 264,865 | 228,315 | 202,769 |
Selling expenses | 81,073 | 66,223 | 131,421 | 122,948 | 107,370 |
General and administrative expenses | 77,763 | 66,550 | 143,168 | 107,212 | 126,083 |
Depreciation and amortization | 156,965 | 132,581 | 288,542 | 244,724 | 221,324 |
Restructuring and asset impairment (recoveries) charges | 0 | (680) | 1,013 | 59,197 | 0 |
Total costs and expenses | 464,469 | 391,608 | 829,009 | 762,396 | 657,546 |
Loss from operations | (46,990) | (36,548) | (71,102) | (108,675) | (93,869) |
Other expenses (income): | |||||
Interest expense | 108,639 | 92,865 | 197,965 | 161,339 | 147,511 |
Interest income | (104) | (23) | (432) | (90) | (1,455) |
Other (income) loss, net | 10,197 | 4,753 | 7,255 | 8,832 | (1,779) |
(Loss) income before income tax expenses | (165,722) | (134,143) | (275,890) | (278,756) | (238,146) |
Income tax expense (benefit) | 1,151 | 672 | 67 | 351 | 514 |
Net loss | $ (166,873) | $ (134,815) | $ (275,957) | $ (279,107) | $ (238,660) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||||
Net loss | $ (166,873) | $ (134,815) | $ (275,957) | $ (279,107) | $ (238,660) |
Other comprehensive income (loss), net of tax effects: | |||||
Foreign currency translation adjustment | 1,576 | 2,801 | 2,482 | (13,293) | (11,333) |
Unrealized (loss) gain on marketable securities | (258) | 0 | 1,011 | 0 | 0 |
Total other comprehensive income (loss) | 1,318 | 2,801 | 3,493 | (13,293) | (11,333) |
Comprehensive loss | $ (165,555) | $ (132,014) | $ (272,464) | $ (292,400) | $ (249,993) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity (Deficit) - USD ($) $ in Thousands | Total | Common Stock | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive income (loss) |
Beginning Balance at Dec. 31, 2013 | $ 490,243 | $ 0 | $ 652,488 | $ (154,615) | $ (7,630) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (238,660) | (238,660) | |||
Foreign currency translation adjustment | (11,333) | (11,333) | |||
Unrealized gain on marketable securities | 0 | ||||
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 | 0 | 636,724 | (393,275) | (18,963) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (279,107) | (279,107) | |||
Foreign currency translation adjustment | (13,293) | (13,293) | |||
Unrealized gain on marketable securities | 0 | ||||
Stock-based compensation | 3,121 | 3,121 | |||
Escrow adjustment | (12,200) | (12,200) | |||
Ending Balance at Dec. 31, 2015 | (76,993) | 0 | 627,645 | (672,382) | (32,256) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (275,957) | (275,957) | |||
Foreign currency translation adjustment | 2,482 | 2,482 | |||
Unrealized gain on marketable securities | 1,011 | 1,011 | |||
Stock-based compensation | 3,868 | 3,868 | |||
Capital contribution | 100,407 | 100,407 | |||
Ending Balance at Dec. 31, 2016 | (245,182) | $ 0 | $ 731,920 | $ (948,339) | $ (28,763) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Foreign currency translation adjustment | 1,576 | ||||
Unrealized gain on marketable securities | (258) | ||||
Ending Balance at Jun. 30, 2017 | $ (409,849) |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||||
Net loss | $ (166,873) | $ (134,815) | $ (275,957) | $ (279,107) | $ (238,660) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||
Amortization of subscriber acquisition costs | 96,383 | 65,975 | 154,877 | 92,994 | 58,730 |
Amortization of customer relationships | 47,328 | 54,073 | 108,178 | 125,451 | 143,578 |
Depreciation and amortization of property, plant and equipment and other intangible assets | 13,254 | 12,533 | 25,488 | 26,279 | 19,016 |
Amortization of deferred financing costs and bond premiums and discounts | 3,644 | 5,243 | 10,447 | 9,844 | 9,251 |
Non-cash gain on settlement of Merger-related escrow | 0 | (12,200) | 0 | ||
(Gain) Loss on sale or disposal of assets | 230 | 70 | (33) | (54) | 662 |
Loss on early extinguishment of debt | 12,751 | 9,933 | 10,085 | 0 | 0 |
Loss on asset impairment | 0 | 0 | 3,116 | ||
Stock-based compensation | 886 | 2,830 | 3,868 | 3,121 | 1,936 |
Provision for doubtful accounts | 9,726 | 7,717 | 19,624 | 14,924 | 15,656 |
Deferred income taxes | (450) | 487 | (478) | (41) | (265) |
Restructuring and asset impairment (recoveries) charges | 0 | (680) | 7,126 | 59,197 | 0 |
Changes in operating assets and liabilities, net of acquisitions: | |||||
Accounts and notes receivable | (22,640) | (8,461) | (24,338) | (14,421) | (21,866) |
Inventories | (72,914) | (62,785) | (11,827) | 18,591 | (2,355) |
Prepaid expenses and other current assets | (4,604) | (6,144) | (5,165) | 1,450 | 746 |
Subscriber acquisition costs - deferred contract costs | (212,420) | (214,594) | (419,509) | (354,867) | (317,538) |
Other assets | (46,938) | 265 | 368 | 160 | 0 |
Accounts payable | 59,335 | 54,403 | (2,978) | 21,842 | 8,481 |
Accrued expenses and other current liabilities | 34,044 | 29,270 | 12,702 | 18,019 | (10,895) |
Restructuring liability | (46) | (1,618) | (2,797) | (1,515) | 0 |
Deferred revenue | 116,043 | 14,725 | 24,613 | 15,026 | 20,770 |
Net cash used in operating activities | (133,261) | (171,573) | (365,706) | (255,307) | (309,637) |
Cash flows from investing activities: | |||||
Subscriber acquisition costs - company owned equipment | 0 | (1,791) | (5,243) | (24,740) | (10,580) |
Capital expenditures | (11,435) | (4,526) | (11,642) | (26,982) | (30,500) |
Proceeds from the sale of capital assets | 319 | 1,925 | 3,123 | 480 | 964 |
Net cash used in acquisitions | 0 | 0 | (18,500) | ||
Acquisition of intangible assets | (743) | (505) | (1,385) | (1,363) | (9,649) |
Proceeds from insurance claims | 0 | 2,984 | 0 | ||
Purchases of short-term investments | 0 | 0 | (60,000) | ||
Proceeds from sale of short-term investments | 0 | 0 | 60,069 | ||
Proceeds from note receivable | 0 | 0 | 22,699 | ||
Change in restricted cash | 0 | 14,214 | 14,375 | ||
Investment in preferred stock | 0 | 0 | (3,000) | ||
Acquisition of other assets | (143) | 0 | 0 | (208) | (2,162) |
Net cash (used in) provided by investing activities | (12,002) | (4,897) | (15,147) | (35,615) | (36,284) |
Cash flows from financing activities: | |||||
Proceeds from notes payable | 324,750 | 500,000 | 604,000 | 296,250 | 102,000 |
Repayment of notes payable | (300,000) | (235,535) | (235,535) | 0 | 0 |
Borrowings from revolving credit facility | 113,000 | 57,000 | 57,000 | 271,000 | 20,000 |
Repayments on revolving credit facility | (13,000) | (77,000) | (77,000) | (271,000) | 0 |
Proceeds from sale of subscriber contracts | 0 | 0 | 2,261 | ||
Acquisition of subscriber contracts | 0 | 0 | (2,277) | ||
Repayments of capital lease obligations | (4,712) | (3,956) | (8,315) | (6,414) | (6,300) |
Financing costs | (9,460) | (8,274) | (9,036) | 0 | 0 |
Deferred financing costs | (6,191) | (6,277) | (9,241) | (5,436) | (2,927) |
Payments of dividends | 0 | 0 | (50,000) | ||
Proceeds from capital contribution | 0 | 69,800 | 100,407 | 0 | 32,300 |
Payments of other long-term obligations | (1,164) | 0 | |||
Net cash (used in) provided by financing activities | 103,223 | 295,758 | 422,280 | 284,400 | 95,057 |
Effect of exchange rate changes on cash | (10) | (441) | (466) | (1,726) | (234) |
Net (decrease) increase in cash and cash equivalents | (42,050) | 118,847 | 40,961 | (8,248) | (251,098) |
Cash and cash equivalents: | |||||
Beginning of period | 43,520 | 2,559 | 2,559 | 10,807 | 261,905 |
End of period | 1,470 | 121,406 | 43,520 | 2,559 | 10,807 |
Supplemental cash flow disclosures: | |||||
Income tax paid | 435 | 290 | 196 | ||
Interest paid | 189,170 | 145,647 | 137,908 | ||
Supplemental non-cash investing and financing activities: | |||||
Capital lease additions | 1,155 | 2,199 | 8,411 | 11,002 | 12,040 |
Intangible assets acquisitions included within accounts payable, accrued expenses and other current liabilities and other long-term obligations | 31,283 | 314 | 185 | ||
Capital expenditures included within accounts payable and accrued expenses and other current liabilities | 282 | 997 | 2,345 | 161 | 1,893 |
Change in fair value of marketable securities | 193 | 0 | 1,011 | 0 | 0 |
Property acquired under build-to-suit agreements included within other long-term obligations | 4,619 | 0 | 0 | ||
Subscriber acquisition costs - company owned assets included within accounts payable and accrued expenses and other current liabilities | $ 0 | $ 1,641 | $ 12 | $ 0 | $ 1,719 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2016 | |
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 smart home and security 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 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
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 this prospectus. Basis of Presentation Vivint Flex Pay Although customers pay separately for the Products and Services under the Vivint Flex Pay plan, the Company has determined that the shift in model does not change the Company’s conclusion that the Product sales and Services are one combined unit of accounting. As a result, all forms of transactions under Vivint Flex Pay create deferred revenue for the gross amount of Products sold. Gross deferred revenues are reduced by imputed interest on the RICs and the present value of expected payments due to the third-party financing provider under the Consumer Financing Program. These deferred revenues are recognized in a pattern that reflects the estimated life of the subscriber relationships. The Company amortizes these deferred revenues over 15 years using a 240% declining balance method, which converts to a straight-line methodology after approximately nine years when the resulting amortization exceeds that from the accelerated method. Under the Consumer Financing Program, qualified customers are eligible for installment loans provided by a third-party financing provider of up to $4,000 for either 42 or 60 months. The Company pays a monthly fee to the third-party financing provider based on the average daily outstanding balance of the installment loans. Additionally, the Company shares liability for credit losses depending on the credit quality of the customer. Because of the nature of these provisions under the Consumer Financing Program, the Company records a derivative liability at its fair value when the third-party financing provider originates installment loans to customers, which reduces the amount of revenue recognized on the provision of the services. The derivative liability is reduced as payments are made from the Company to the third-party financing provider. Subsequent changes to the fair value of the derivative liability are realized through other loss/(income), net in the Condensed Consolidated Statement of Operations. (See Note 7). Retail Installment Contract Receivables The Company imputes the interest on the RIC receivable using a risk adjusted market interest rate and records it as an adjustment to deferred revenue and as an adjustment to the face amount of the related receivable. The imputed interest income is recognized over the term of the RIC contract as recurring and other revenue on the condensed consolidated statement of operations. When the Company determines that there are RIC receivables that have become uncollectible, the Company records an allowance for credit losses and bad debt expense. The estimate of allowance for credit losses considers a number of factors, including collection experience, aging of the remaining RIC receivable portfolios, credit quality of the subscriber base and other qualitative considerations, including macro-economic factors. Account balances are written-off Accounts Receivable non-interest The changes in the Company’s allowance for accounts receivable were as follows for the periods ended (in thousands): Six Months Ended 2017 2016 Beginning balance $ 4,138 $ 3,541 Provision for doubtful accounts 9,726 7,717 Write-offs and adjustments (10,065 ) (8,161 ) Balance at end of period $ 3,799 $ 3,097 Revenue Recognition— non-recurring Recurring and other revenue includes (i) the Company’s subscriber contracts associated with Services, which are billed directly to the subscriber in advance, generally monthly, pursuant to the terms of subscriber contracts and recognized ratably over the service period, (ii) monthly recognition of deferred Product revenue and (iii) imputed interest associated with the RIC receivables, which is recognized over the initial term of the RIC. 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. Activation fees represent upfront one-time Deferred Revenue— Subscriber Acquisition Costs direct-to-home 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— Inventories first-in, first-out Long-lived Assets and Intangibles Wireless Spectrum Licenses The Company has determined that the wireless spectrum licenses meet the definition of indefinite-lived intangible assets because the licenses may be renewed periodically for a nominal fee, provided that the Company continues to meet the service and geographic coverage provisions. The Company has also determined that there are currently no legal, regulatory, contractual, competitive, economic or other factors that limit the useful lives of these wireless spectrum licenses. Long-term Investments available-for-sale available-for-sale The Company’s marketable equity securities have been classified and accounted for as available-for-sale. The Company performs impairment analyses of its cost based investments 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, 2016, no indicators of impairment existed associated with these cost based investments. Deferred Financing Costs Residual Income Plan Stock-Based Compensation During the first quarter of 2017, the Company adopted Accounting Standard Update (“ASU”) 2016-09. 2016-09, 2016-09 2016-09 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 Concentrations of Credit Risk Concentrations of Supply Risk Fair Value Measurement on-going 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 six months ended June 30, 2017 and 2016. 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 period-end 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 $2.5 million and $4.9 million for the six months ended June 30, 2017 and 2016. Letters of Credit Restructuring and Asset Impairment Charges New Accounting Pronouncements 2014-09, Revenue from Contracts with Customers (Topic 606) 2015-14 2014-09 2016-08 2016-10 2016-12 non-cash The Company currently plans to adopt Topic 606 at the beginning of 2018 using the modified retrospective approach with the cumulative effect of initially applying the new standard recognized at the date of initial application and providing certain additional disclosures. However, a final decision regarding the adoption method has not been made at this time. The Company’s final determination will depend on a number of factors, such as the significance of the impact of the new standard on the Company’s financial results, and system readiness, including the Company’s ability to accumulate and analyze the information necessary to assess the impact on prior period financial statements, as necessary. The Company is in the early stages of evaluating the impact of the new standard on its accounting policies, processes, and system requirements. The Company has assigned internal resources in addition to the engagement of third-party service providers to assist in the evaluation. Furthermore, the Company has made and will continue to make investments in systems to enable timely and accurate reporting under the new standard. The Company expects the standard to have an effect on the subscriber acquisitions costs, net and deferred revenues included in our condensed consolidated balance sheets and the recognition of revenues and amortization of subscriber acquisition costs on the consolidated statement of operations. The Company does not expect the standard to have a significant impact to the consolidated statements of changes in equity or the consolidated statements of cash flows. While the Company continues to assess the potential impacts of the new standard, including the areas described above, and anticipate this standard could have a material impact on the consolidated financial statements, the Company does not know or cannot reasonably estimate quantitative information related to the impact of the new standard on the financial statements at this time. In June 2016, the FASB issued ASU 2016-13 2016-13 In February 2016, the FASB issued ASU 2016-02 The Company is in the initial stages of evaluating the impact of ASU 2016-02 While the Company continues to assess the potential impacts of ASU 2016-02, | 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 out-of-period Change in Accounting Estimate Year ended Increase in activation fee revenues $ 1,400 Increase in depreciation and amortization 21,413 Increase to loss from operations 20,013 Increase to net loss 19,621 Restructuring and Asset Impairment Charges Principles of Consolidation Changes in Presentation of Comparative Financial Statements Revenue Recognition non-recurring 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. Activation fees represent upfront one-time Subscriber Acquisition Costs direct-to-home 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 condensed consolidated statements of cash flows as these assets represent deferred costs associated with customer contracts. Cash and Cash Equivalents Accounts Receivable non-interest The changes in the Company’s allowance for accounts receivable were as follows for the periods ended (in thousands): Year ended December 31, 2016 2015 2014 Beginning balance $ 3,541 $ 3,373 $ 1,901 Provision for doubtful accounts 19,624 14,924 15,656 Write-offs and adjustments (19,027 ) (14,756 ) (14,184 ) Balance at end of period $ 4,138 $ 3,541 $ 3,373 Inventories first-in, first-out Long-lived Assets and Intangibles Effective January 1, 2016, the Company adopted guidance issued by the 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 cloud computing arrangements during the year ended December 31, 2016. Wireless Spectrum Licenses price paid for the licenses at the time of acquisition, plus costs incurred to acquire the licenses. The asset and related liability were recorded at the net present value of future cash outflows using the Company’s incremental borrowing rate at the time of acquisition. The Company has determined that the wireless spectrum licenses meet the definition of indefinite-lived intangible assets because the licenses may be renewed periodically for a nominal fee, provided that the Company continues to meet the service and geographic coverage provisions. The Company has also determined that there are currently no legal, regulatory, contractual, competitive, economic or other factors that limit the useful lives of these wireless spectrum licenses. Long-term Investments available-for-sale Available-for-sale available-for-sale The Company’s marketable equity securities have been classified and accounted for as available-for-sale. The Company performs impairment analyses of its cost based investments 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, 2016, no indicators of impairment existed associated with these cost based investments. Deferred Financing Costs Effective January 1, 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 Contracts Sold During the year ended December 31, 2016, the Company sold all of its New Zealand and Puerto Rico subscriber contracts and ceased operations in these geographical regions (“2016 Contract Sales”). As a result, during the year ended December 31, 2016 the Company recorded the impact of these transactions in restructuring and asset impairment (See Note 3). Concentrations of Credit Risk Concentrations of Supply Risk Fair Value Measurement on-going 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, 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 period-end 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 gains related to intercompany balances were $2.1 million for the year ended December 31, 2016. Translation losses related to intercompany balances were $9.4 million for the year ended December 31, 2015. During the year ended December 31, 2014, there were no translation gains or losses. Letters of Credit New Accounting Pronouncements 2014-09, Revenue from Contracts with Customers (Topic 606) 2015-14 2014-09 2016-08 2016-10 2016-12 non-cash The Company currently plans to adopt Topic 606 using the modified retrospective approach with the cumulative effect of initially applying the new standard recognized at the date of initial application and providing certain additional disclosures. However, a final decision regarding the adoption method has not been made at this time. The Company’s final determination will depend on a number of factors, such as the significance of the impact of the new standard on the Company’s financial results, system readiness, including the Company’s ability to accumulate and analyze the information necessary to assess the impact on prior period financial statements, as necessary. The Company is in the initial stages of evaluating the impact of the new standard on the accounting policies, processes, and system requirements. The Company has assigned internal resources in addition to the engagement of third party service providers to assist in the evaluation. Furthermore, the Company has made and will continue to make investments in systems to enable timely and accurate reporting under the new standard. The Company expects the standard to have an effect on the subscriber acquisitions costs, net and deferred revenues included in our condensed consolidated balance sheets and the recognition of revenues and amortization of subscriber acquisition costs on the consolidated statement of operations. The Company does not expect the standard to have a significant impact to the consolidated statements of changes in equity or the consolidated statements of cash flows. While the Company continues to assess the potential impacts of the new standard, including the areas described above, and anticipate this standard could have a material impact on the consolidated financial statements, the Company does not know or cannot reasonably estimate quantitative information related to the impact of the new standard on the financial statements at this time. In March 2016, the FASB issued ASU 2016-09 In March 2016, the FASB issued ASU 2016-07 In March 2016, the FASB issued ASU 2016-06 In February 2016, the FASB issued ASU 2016-02 In January 2016, the FASB issued ASU 2016-01 |
Restructuring and Asset Impairm
Restructuring and Asset Impairment Charges | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | ||
Restructuring and Asset Impairment Charges | NOTE 13—RESTRUCTURING AND ASSET IMPAIRMENT CHARGES During the year ended December 31, 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 (the “Wireless Restructuring”) and the Company ceased the build-out Restructuring and asset impairment charges and recoveries for the six months ended June 30, 2017 and 2016 were as follows (in thousands): Six Months Ended June 30, 2017 June 30, 2016 Wireless restructuring and asset impairment (recoveries) charges: Recoveries of impaired assets $ — $ (710 ) Contract termination costs — 4 Employee severance and termination benefits charges — 26 Total wireless restructuring and asset impairment recoveries $ — $ (680 ) The following table presents accrued restructuring activity for the six months ended June 30, 2017 (in thousands): Contract termination costs Accrued restructuring balance as of December 31, 2016 $ 649 Cash payments (46 ) Accrued restructuring balance as of June 30, 2017 $ 603 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 year ended December 31, 2016, the Company sold all of its New Zealand and Puerto Rico contracts and recorded the impact of these transactions in restructuring and asset impairment. The calculation of the net loss recorded related to the 2016 Contract Sales included the expensing of all unamortized deferred subscriber acquisition costs associated with these subscriber accounts in the amount of $7.6 million, the realization of outstanding amounts of accumulated other comprehensive loss associated with the New Zealand foreign currency translation process of $1.1 million upon the substantial sale of the subsidiary, offset by cash proceeds of $6.2 million for a total net loss on the 2016 Contract Sales of $2.6 million. During the year ended December 31, 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 (the “Wireless Restructuring”) and the Company ceased the build-out Restructuring and asset impairment charges were as follows (in thousands): Year ended 2016 2015 Wireless restructuring and asset (recoveries) impairment charges: Asset (recoveries) impairments $ (710 ) $ 53,228 Contract termination (recoveries) costs (751 ) 4,767 Employee severance and termination benefits (recoveries) charges (77 ) 1,202 Total wireless restructuring and asset (recoveries) impairment charges (1,538 ) 59,197 Loss on subscriber contract sales 2,551 — Total restructuring and asset impairment charges $ 1,013 $ 59,197 During the year ended December 31, 2014, the Company did not incur any restructuring and asset impairment charges. The following table presents accrued restructuring activity for the years ended December 31, 2016 and 2015. 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 (53,218 ) (190 ) — (53,408 ) Accrued restructuring balance as of December 31, 2015 — 3,954 321 4,275 Restructuring and impairment recoveries (710 ) (751 ) (77 ) (1,538 ) Cash payments — (2,554 ) (244 ) (2,798 ) Non-cash 710 — — 710 Accrued restructuring balance as of December 31, 2016 $ — $ 649 $ — $ 649 The wireless restructuring and impairment recoveries during the year ended December 31, 2016 resulted primarily from a vendor settlement for amounts less than previously estimated. The Company recorded a non-cash 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 Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Business Combinations | NOTE 4—BUSINESS COMBINATIONS 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 was 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 8) 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, 2016 and 2015, the Company did not incur any costs associated with the Space Monkey acquisition. The associated goodwill is deductible for income tax purposes. 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 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 8) 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). During the year ended December 31, 2016, the Company did not incur any costs associated with the Wildfire acquisition. |
Long-Term Debt
Long-Term Debt | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
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 private placement notes”), pursuant to a note purchase agreement dated as of October 19, 2015 in a private placement exempt from registration under the Securities Act. The 2022 private placement 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 private placement notes, in which case the 2022 private placement notes will mature on September 1, 2020. The 2022 private placement notes are secured, on a pari passu basis, by the collateral securing obligations under the 2019 notes, the 2022 private placement notes, and the 2022 notes (as defined below) and the revolving credit facilities, in each case, subject to certain exceptions and permitted liens. In May 2016, APX issued $500.0 million aggregate principal amount of 7.875% senior secured notes due 2022 (the “2022 notes” and, together with the 2019 notes, the 2020 notes and the 2022 private placement notes, the “notes”), pursuant to an indenture dated as of May 26, 2016 among APX, the guarantors party thereto and Wilmington Trust, National Association, as trustee and collateral agent. The 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 2022 notes are secured, on a pari passu basis, by the collateral securing obligations under the 2019 notes and 2022 private placement notes and the revolving credit facilities, in all cases, subject to certain exceptions and permitted liens. APX used a portion of the net proceeds from the issuance of the 2022 notes to repurchase approximately $235 million aggregate principal amount of the outstanding 2019 notes and 2022 private placement notes in privately negotiated transactions and repaid borrowings under the existing revolving credit facility. In August 2016, APX issued an additional $100.0 million aggregate principal amount of the 2022 notes at a price of 104.00%. In February 2017, APX issued an additional $300.0 million aggregate principal amount of the 2022 notes at a price of 108.25%. A portion of the net proceeds from the offering of these 2022 notes were used to redeem $300.0 million aggregate principal amount of the existing 2019 notes and pay the related redemption premium, and to pay all fees and expenses related thereto and any remaining proceeds will be used for general corporate purposes. In accordance with ASC 470-50 creditor-by-creditor The Company performed the same analysis on a creditor-by-creditor The following table presents deferred financing cost activity for the six months ended June 30, 2017 (in thousands): Unamortized Deferred Financing Costs Balance Additions Rolled Early Amortized Balance June 30, 2017 Revolving Credit Facility $ 4,420 $ — $ — $ — $ (1,013 ) $ 3,407 2019 Notes 11,693 — (1,476 ) (3,259 ) (1,310 ) 5,648 2020 Notes 15,053 — — — (1,923 ) 13,130 2022 Private Placement Notes 903 — — — (76 ) 827 2022 Notes 11,714 6,077 1,476 — (1,567 ) 17,700 Total Deferred Financing Costs $ 43,783 $ 6,077 $ — $ (3,259 ) $ (5,889 ) $ 40,712 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, 8.875% per annum for the 2022 private placement notes, and 7.875% per annum for the 2022 notes. Interest on the notes is payable semiannually in arrears on each June 1 and December 1. APX may redeem the notes at the prices and on the terms specified in the applicable indenture or note purchase agreement. Revolving Credit Facility On November 16, 2012, APX entered into a $200.0 million senior secured revolving credit facility, with a five year maturity. 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 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 As of June 30, 2017 and December 31, 2016, there were $100.0 million and $0 of outstanding borrowings under the credit facility. The Company’s debt at June 30, 2017 and December 31, 2016 consisted of the following (in thousands): June 30, 2017 Outstanding Principal Unamortized Premium Unamortized Net Carrying Amount Series C Revolving Credit Facility Due 2017 $ 7,200 $ — $ — $ 7,200 Series A, B Revolving Credit Facilities Due 2019 92,800 — — 92,800 6.375% Senior Secured Notes due 2019 419,465 — (5,648 ) 413,817 8.75% Senior Notes due 2020 930,000 5,129 (13,130 ) 921,999 8.875% Senior Secured Notes Due 2022 270,000 (2,764 ) (827 ) 266,409 7.875% Senior Secured Notes Due 2022 900,000 26,700 (17,700 ) 909,000 Total Long-Term Debt $ 2,619,465 $ 29,065 $ (37,305 ) $ 2,611,225 December 31, 2016 Outstanding Principal Unamortized Premium Unamortized Net Carrying Amount 6.375% Senior Secured Notes due 2019 $ 719,465 $ — $ (11,693 ) $ 707,772 8.75% Senior Notes due 2020 930,000 5,848 (15,053 ) 920,795 8.875% Senior Secured Notes due 2022 270,000 (2,960 ) (903 ) 266,137 7.875% Senior Secured Notes due 2022 600,000 3,710 (11,714 ) 591,996 Total Long-Term Debt $ 2,519,465 $ 6,598 $ (39,363 ) $ 2,486,700 (1) Unamortized deferred financing costs related to the revolving credit facilities included in deferred financing costs, net on the condensed consolidated balance sheets at June 30, 2017 and December 31, 2016 was $3.4 million and $4.4 million, respectively. | NOTE 5—LONG-TERM DEBT On November 16, 2012, APX issued $1.3 billion aggregate principal amount of notes, of which $719.5 million aggregate principal amount of 6.375% 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% 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, 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%. On July 1, 2014, APX issued an additional $100.0 million of 2020 notes at a price of 102.00%. On October 19, 2015, APX issued $300.0 million aggregate principal amount of 8.875% 2022 private placement notes at a price of 98%, pursuant to a note purchase agreement dated as of October 19, 2015 in a private placement exempt from registration under the Securities Act. The 2022 private placement 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 private placement notes, in which case the 2022 private placement notes will mature on September 1, 2020. The 2022 private placement notes are secured, on a pari passu basis, by the collateral securing obligations under the 2019 notes, the 2022 private placement notes, and the 2022 notes (as defined below) and the revolving credit facilities, in each case, subject to certain exceptions and permitted liens. In May 2016, APX issued $500.0 million aggregate principal amount of 7.875% 2022 notes at par, pursuant to an indenture dated as of May 26, 2016 among APX, the guarantors party thereto and Wilmington Trust, National Association, as trustee and collateral agent. The 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 2022 notes are secured, on a pari passu basis, by the collateral securing obligations under the 2019 notes and 2022 private placement notes and the revolving credit facilities, in all cases, subject to certain exceptions and permitted liens. APX used a portion of the net proceeds from the issuance of the 2022 notes to repurchase approximately $235 million aggregate principal amount of the outstanding 2019 notes and 2022 private placement notes in privately negotiated transactions and repaid borrowings under the existing revolving credit facility. In August 2016, APX issued an additional $100.0 million aggregate principal amount of the 2022 notes at a price of 104.00%. In accordance with ASC 470-50 creditor-by-creditor Unamortized Deferred Financing Costs Balance Additions Refinances Early Amortized Balance Revolving Credit Facility $ 6,456 $ — $ — $ — $ (2,036 ) $ 4,420 2019 Notes 20,182 — (3,423 ) (585 ) (4,481 ) 11,693 2020 Notes 18,892 — — — (3,839 ) 15,053 2022 Private Placement Notes 1,170 — — (110 ) (157 ) 903 2022 Notes — 9,337 3,423 — (1,046 ) 11,714 Total Deferred Financing Costs $ 46,700 $ 9,337 $ — $ (695 ) $ (11,559 ) $ 43,783 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, 8.875% per annum for the 2022 private placement notes, and 7.875% per annum for the 2022 notes. Interest on the notes is payable semiannually in arrears on each June 1 and December 1. APX may redeem the notes at the prices and on the terms specified in the applicable indenture or note purchase agreement. Revolving Credit Facility On November 16, 2012, APX entered into a $200.0 million senior secured revolving credit facility, with a five year maturity. 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 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. As of December 31, 2016 the commitment fee percentage was 0.50%. 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 As of December 31, 2016 there were no outstanding borrowings under the credit facility. As of December 31, 2015 the outstanding borrowings under the credit facility were $20.0 million. The Company’s debt at December 31, 2016 consisted of the following (in thousands): Outstanding Unamortized Unamortized Net Carrying 6.375% Senior Secured Notes due 2019 $ 719,465 $ — $ (11,693 ) $ 707,772 8.75% Senior Notes due 2020 930,000 5,848 (15,053 ) 920,795 8.875% Senior Secured Notes Due 2022 270,000 (2,960 ) (903 ) 266,137 7.875% Senior Secured Notes Due 2022 600,000 3,710 (11,714 ) 591,996 Total Notes payable $ 2,519,465 $ 6,598 $ (39,363 ) $ 2,486,700 The Company’s debt at December 31, 2015 consisted of the following (in thousands): Outstanding Unamortized Unamortized Net Carrying 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 |
Balance Sheet Components
Balance Sheet Components | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Balance Sheet Components | NOTE 4—BALANCE SHEET COMPONENTS The following table presents material balance sheet component balances (in thousands): June 30, December 31, Prepaid expenses and other current assets Prepaid expenses $ 11,680 $ 7,983 Deposits 2,474 1,046 Other 619 1,129 Total prepaid expenses and other current assets $ 14,773 $ 10,158 Subscriber acquisition costs Subscriber acquisition costs $ 1,588,310 $ 1,373,080 Accumulated amortization (418,023 ) (320,646 ) Subscriber acquisition costs, net $ 1,170,287 $ 1,052,434 Accrued payroll and commissions Accrued commissions $ 35,127 $ 22,187 Accrued payroll 19,074 24,101 Total accrued payroll and commissions $ 54,201 $ 46,288 Accrued expenses and other current liabilities Accrued interest payable $ 17,259 $ 16,944 Accrued taxes 10,305 3,376 Current portion of derivative liability 6,785 — Spectrum license obligation 3,712 — Accrued payroll taxes and withholdings 3,547 4,793 Loss contingencies 2,231 2,571 Blackstone monitoring fee, a related party 1,125 1,389 Other 3,475 5,192 Total accrued expenses and other current liabilities $ 48,439 $ 34,265 Deferred revenue Subscriber deferred revenues $ 37,277 $ 34,682 Deferred product revenues 18,819 — Deferred activation fees 10,609 11,040 Total deferred revenue $ 66,705 $ 45,722 Deferred revenue, net of current portion Deferred product revenues $ 98,800 $ 975 Deferred activation fees 55,444 57,759 Total deferred revenue, net of current portion $ 154,244 $ 58,734 | NOTE 6—BALANCE SHEET COMPONENTS The following table presents material balance sheet component balances as of December 31, 2016 and December 31, 2015 (in thousands): December 31, 2016 2015 Subscriber acquisition costs Subscriber acquisition costs $ 1,373,080 $ 958,261 Accumulated amortization (320,646 ) (167,617 ) Subscriber acquisition costs, net $ 1,052,434 $ 790,644 Accrued payroll and commissions Accrued payroll $ 24,101 $ 18,071 Accrued commissions 22,187 20,176 Total accrued payroll and commissions $ 46,288 $ 38,247 Accrued expenses and other current liabilities Accrued interest payable $ 16,944 $ 17,153 Accrued payroll taxes and withholdings 4,793 3,938 Accrued taxes 3,376 2,683 Wireless restructuring costs 91 4,275 Loss contingencies 2,571 2,504 Other 6,490 5,020 Total accrued expenses and other current liabilities $ 34,265 $ 35,573 |
Property Plant and Equipment
Property Plant and Equipment | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | ||
Property Plant and Equipment | NOTE 5—PROPERTY PLANT AND EQUIPMENT Property, plant and equipment consisted of the following (in thousands): June 30, December 31, Estimated Vehicles $ 30,916 $ 31,416 3-5 years Computer equipment and software 39,814 27,006 3-5 years Leasehold improvements 18,095 17,717 2-15 years Office furniture, fixtures and equipment 14,619 13,508 7 years Buildings 702 702 39 years Build-to-suit 8,247 5,004 10.5 years Construction in process 3,397 9,908 Property, plant and equipment, gross 115,790 105,261 Accumulated depreciation and amortization (50,131 ) (41,635 ) Property, plant and equipment, net $ 65,659 $ 63,626 Property, plant and equipment, net includes approximately $18.2 million and $21.2 million of assets under capital lease obligations at June 30, 2017 and December 31, 2016, respectively net of accumulated amortization of $13.3 million and $10.9 million at June 30, 2017 and December 31, 2016, respectively. Depreciation and amortization expense on all property, plant and equipment $9.7 million and $8.1 million for the six months ended June 30, 2017 and 2016, respectively. Amortization expense relates to assets under capital leases and is included in depreciation and amortization expense. In June 2016, the Company entered into a non-cancellable build-to-suit build-to-suit In April 2017, construction on the Logan Facility was completed and the Company commenced occupancy. In accordance with ASC 840-40 build-to-suit 10-Commitments build-to-suit | NOTE 7—PROPERTY PLANT AND EQUIPMENT Property and equipment consisted of the following (in thousands): December 31, Estimated 2016 2015 Vehicles $ 31,416 $ 26,935 3-5 years Computer equipment and software 27,006 21,702 3-5 Leasehold improvements 17,717 17,434 2-15 years Office furniture, fixtures and equipment 13,508 11,776 7 years Buildings 702 702 39 years Construction in process 9,908 3,837 Build-to-suit 5,004 — 105,261 82,386 Accumulated depreciation and amortization (41,635 ) (27,112 ) Property plant and equipment, net $ 63,626 $ 55,274 Property plant and equipment includes approximately $21.2 million and $20.4 million of assets under capital lease obligations, net of accumulated amortization of $10.9 million and $7.0 million at December 31, 2016 and 2015, respectively. Depreciation and amortization expense on all property plant and equipment was $16.8 million, $16.9 million and $11.3 million for the years ended December 31, 2016, 2015 and 2014, respectively. Amortization expense relates to assets under capital leases as included in depreciation and amortization expense. Because of its involvement in certain aspects of the construction of a new sales recruiting and training facility in Logan, UT, the Company is deemed to be the owner of the building for accounting purposes during the construction period. Accordingly, the Company recorded a build-to-suit 13-Commitments build-to-suit |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill and Intangible Assets | NOTE 6—GOODWILL AND INTANGIBLE ASSETS Goodwill As of June 30, 2017 and December 31, 2016, the Company had a goodwill balance of $836.1 million and $835.2 million, respectively. The change in the carrying amount of goodwill during the six months ended June 30, 2017 was the result of foreign currency translation adjustments. Intangible assets, net The following table presents intangible asset balances (in thousands): June 30, 2017 December 31, 2016 Gross Accumulated Net Gross Accumulated Net Estimated Definite-lived intangible assets: Customer contracts $ 967,702 $ (588,747 ) $ 378,955 $ 965,179 $ (539,910 ) $ 425,269 10 years 2GIG 2.0 technology 17,000 (11,877 ) 5,123 17,000 (10,479 ) 6,521 8 years Other technology 2,917 (1,042 ) 1,875 7,067 (4,984 ) 2,083 5-7 years Space Monkey technology 7,100 (3,167 ) 3,933 7,100 (2,268 ) 4,832 6 years Patents 9,620 (4,766 ) 4,854 8,724 (3,913 ) 4,811 5 years Total definite-lived intangible assets: $ 1,004,339 $ (609,599 ) $ 394,740 $ 1,005,070 $ (561,554 ) $ 443,516 Indefinite-lived intangible assets: Spectrum licenses $ 31,253 $ — $ 31,253 $ 31,253 $ — $ 31,253 IP addresses $ 564 $ — $ 564 $ 564 $ — $ 564 Domain names 59 — 59 59 — 59 Total Indefinite-lived intangible assets 31,876 — 31,876 31,876 — 31,876 Total intangible assets, net $ 1,036,215 $ (609,599 ) $ 426,616 $ 1,036,946 $ (561,554 ) $ 475,392 During the year ended December 31, 2016, a subsidiary of the Company entered into leasing agreements with a third party for designated radio frequency spectrum in 40 mid-sized Amortization expense related to intangible assets was approximately $50.7 million and $58.5 million during the six months ended June 30, 2017 and 2016, respectively. As of June 30, 2017, the remaining weighted-average amortization period for definite-lived intangible assets was 5.3 years. Estimated future amortization expense of intangible assets, excluding approximately $0.2 million in patents currently in process, is as follows as of June 30, 2017 (in thousands): 2017—Remaining Period $ 50,945 2018 90,275 2019 78,452 2020 67,579 2021 58,542 Thereafter 48,726 Total estimated amortization expense $ 394,519 | NOTE 8—GOODWILL AND INTANGIBLE ASSETS Goodwill The changes in the carrying amount of goodwill for the years ended December 31, 2016 and 2015, were as follows (in thousands): Balance as of January 1, 2015 $ 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 Effect of Foreign Currency Translation 817 Balance as of December 31, 2016 $ 835,233 As of December 31, 2016 and December 31, 2015, the Company had a goodwill balance of $835.2 million and $834.4 million, respectively. Foreign currency translation adjustments were $0.8 million and $4.8 million for the years ended December 31, 2016 and December 31, 2015, 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 as of December 31, 2016 and 2015, respectively. Intangible assets, net The following table presents intangible asset balances as of December 31, 2016 and 2015 (in thousands): December 31, 2016 December 31, 2015 Gross Accumulated Net Gross Accumulated Net Estimated Definite-lived intangible assets: Customer contracts $ 965,179 $ (539,910 ) $ 425,269 $ 962,842 $ (430,803 ) $ 532,039 10 years 2GIG 2.0 technology 17,000 (10,479 ) 6,521 17,000 (7,064 ) 9,936 8 years Other technology 7,067 (4,984 ) 2,083 7,067 (3,438 ) 3,629 5-7 years Space Monkey technology 7,100 (2,268 ) 4,832 7,100 (761 ) 6,339 6 years Patents 8,724 (3,913 ) 4,811 7,524 (2,094 ) 5,430 5 years Non-compete 1,200 (1,200 ) — 1,200 (800 ) 400 2-3 years Total definite-lived intangible assets: 1,006,270 (562,754 ) 443,516 1,002,733 (444,960 ) 557,773 Indefinite-lived intangible assets: Spectrum licenses 31,253 — 31,253 — — — IP addresses 564 — 564 564 — 564 Domain names 59 — 59 58 — 58 Total Indefinite-lived intangible assets 31,876 — 31,876 622 — 622 Total intangible assets, net $ 1,038,146 $ (562,754 ) $ 475,392 $ 1,003,355 $ (444,960 ) $ 558,395 During the year ended December 31, 2016, the Company entered into leasing agreements with a third party for designated radio frequency spectrum in 40 mid-sized 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 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 During the year ended December 31, 2016, the Company acquired $1.3 million of intangibles related to patents. 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. The Company recognized amortization expense related to capitalized software development costs of $1.1 million, $1.3 million and $1.3 million during the years ended December 31, 2016, 2015, and 2014, respectively. Amortization expense related to intangible assets was approximately $116.9 million, $134.8 million and $151.3 million for the years ended December 31, 2016, 2015, and 2014, respectively. As of December 31, 2016, the remaining weighted-average amortization period for definite-lived intangible assets was 3.8 years. Estimated future amortization expense of intangible assets, excluding approximately $0.3 million in patents currently in process, is as follows as of December 31, 2016 (in thousands): 2017 $ 101,296 2018 89,736 2019 78,082 2020 67,288 2021 58,288 Thereafter 48,548 Total estimated amortization expense $ 443,238 |
Financial Instruments
Financial Instruments | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | ||
Financial Instruments | NOTE 7—FINANCIAL INSTRUMENTS Cash, Cash Equivalents and Marketable Securities Cash equivalents and available-for-sale The following tables set forth the Company’s cash and cash equivalents and available-for-sale June 30, 2017 Adjusted Cost Unrealized Unrealized Fair Value Cash and Cash Long-Term Cash $ 1,470 $ — $ — $ 1,470 $ 1,470 $ — Level 1: Corporate securities 4,018 193 — 4,211 — 4,211 Subtotal 4,018 193 — 4,211 — 4,211 Total $ 5,488 $ 193 $ — $ 5,681 $ 1,470 $ 4,211 December 31, 2016 Adjusted Cost Unrealized Unrealized Fair Value Cash and Cash Long-Term Cash $ 1,191 $ — $ — $ 1,191 $ 1,191 $ — Level 1: Money market funds 42,329 — — 42,329 42,329 — Corporate securities 3,007 1,011 — 4,018 — 4,018 Subtotal 45,336 1,011 — 46,347 42,329 4,018 Total $ 46,527 $ 1,011 $ — $ 47,538 $ 43,520 $ 4,018 The corporate securities represents the Company’s investment of $3.0 million in preferred stock of a privately held company (“investee”) not affiliated with the Company. On October 28, 2016 the investee began trading shares publicly and the Company’s preferred stock was converted to publicly traded common stock. As a result, the Company classified the investment as an available for sale security. During the three and six months ended June 30, 2017, the Company recorded an unrealized loss of $0.4 million and a unrealized gain of $0.2 million, respectively associated with the change in fair value of the investee’s stock. As of June 30, 2017 and December 31, 2016, accumulated other comprehensive income associated with unrealized gains and losses for the change in fair value of the investment totaled $1.2 million and $1.0 million, 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. Long-Term Debt Components of long-term debt including the associated interest rates and related fair values are as follows (in thousands, except interest rates): June 30, 2017 December 31, 2016 Stated Interest Issuance Face Value Estimated Fair Value Face Value Estimated Fair Value 2019 Notes $ 419,465 $ 431,462 $ 719,465 $ 743,783 6.375 % 2020 Notes 930,000 962,550 930,000 946,275 8.75 % 2022 Private Placement Notes 270,000 279,297 270,000 280,372 8.875 % 2022 Notes 900,000 978,750 600,000 655,140 7.875 % Total $ 2,519,465 $ 2,652,059 $ 2,519,465 $ 2,625,570 The fair values of the 2019 notes, the 2020 notes, the 2022 private placement notes and the 2022 notes were considered Level 2 measurements as the values were determined using observable market inputs, such as current interest rates, prices observable from less active markets, as well as prices observable from comparable securities. Derivative Financial Instruments Under the Consumer Financing Program, the Company pays a monthly fee to a third-party financing provider based on the average daily outstanding balance of the installment loans and shares the liability for credit losses, depending on the credit quality of the customer. Because of the nature of certain provisions under the Consumer Financing Program, the Company records a derivative liability that is not designated as a hedging instrument and is adjusted to fair value, measured using the present value of the estimated future payments. Changes to the fair value are recorded through other loss (income), net in the Condensed Consolidated Statement of Operations. The following represent the contractual obligations with the third-party financing provider under the Consumer Financing Program that are components of the derivative: • The Company pays a monthly fee based on the average daily outstanding balance of the installment loans • The Company shares the liability for credit losses depending on the credit quality of the customer • The Company pays transactional fees associated with customer payment processing During the three and six months ended June 30, 2017, the Company realized no gains or loss on its derivative instruments. The following table summarizes the fair value, measured using Level 2 fair value inputs, and the notional amount of the Company’s outstanding derivative instrument as of June 30, 2017 (in thousands): June 30, 2017 Fair Value Notional Consumer Financing Program Contractual Obligations $ 16,092 $ 68,076 Classified on the condensed consolidated unaudited balance sheets as: Accrued expenses and other current liabilities 6,785 Other long-term obligations 9,307 Total Consumer Financing Program Contractual Obligation $ 16,092 | NOTE 9—FAIR VALUE MEASUREMENTS Cash equivalents and available-for-sale The following tables show the Company’s cash and cash equivalents and available-for-sale Adjusted Cost Unrealized Unrealized Fair Value Cash and Cash Long-Term Cash $ 1,191 $ — $ — $ 1,191 $ 1,191 $ — Level 1: Money market funds 42,329 — — 42,329 42,329 — Corporate securities 3,007 1,011 — 4,018 — 4,018 Subtotal 45,336 1,011 — 46,347 42,329 4,018 Total $ 46,527 $ 1,011 $ — $ 47,538 $ 43,520 $ 4,018 On February 19, 2014, the Company invested $3.0 million in preferred stock of a privately held company (“investee”) not affiliated with the Company. On October 28, 2016 the investee began trading shares publicly and the Company’s preferred stock was converted to public stock. As a result, the Company classified the investment as an available for sale security. 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) are as follows: December 31, 2016 December 31, 2015 Stated Interest Issuance Face Value Estimated Fair Value Face Value Estimated Fair Value 2019 Notes $ 719,465 $ 743,783 $ 925,000 $ 879,906 6.375 % 2020 Notes 930,000 946,275 930,000 756,788 8.75 % 2022 Notes Private Placement Notes 270,000 280,372 300,000 296,296 8.875 % 2022 Notes 600,000 655,140 — — 7.875 % Total $ 2,519,465 $ 2,625,570 $ 2,155,000 $ 1,932,990 The fair value of the 2019 notes, 2020 notes, 2022 private placement 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, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Facility Fire | NOTE 10—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. 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. The Company 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 insurance recoveries have been received as of December 31, 2016. Expenses in excess of insurance recoveries during the year ended December 31, 2016 and 2015 were immaterial. |
INCOME TAXES
INCOME TAXES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
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 six months ended June 30, 2017 and 2016 was approximately a negative 0.7% and a negative 0.5%, respectively. Income tax expense for the six months ended June 30, 2017 was affected by an intraperiod tax allocation due to unrealized gains and losses on investments held by the Company and prior year return-to-provision pre-tax Significant judgment is required in determining the Company’s provision for income taxes, recording valuation allowances against deferred tax assets and evaluating the Company’s uncertain tax positions. In evaluating the ability to realize its deferred tax assets, in full or in part, the Company considers all available positive and negative evidence, including past operating results, forecasted future earnings, and prudent and feasible tax planning strategies. Due to historical net losses incurred and the uncertainty of realizing the deferred tax assets, for all the periods presented, the Company has maintained a full valuation allowance against domestic deferred tax assets. The Company has not recorded a valuation allowance against its foreign deferred tax assets due to being in a net deferred tax liability position. During the first quarter of 2017, the Company adopted ASU 2016-09. 2016-09, | NOTE 11—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, 2016 2015 2014 Current income tax: Federal $ — $ — $ — State 545 392 779 Foreign 95 (1 ) — Total 640 391 779 Deferred income tax: Federal — — (925 ) State — — (181 ) Foreign (573 ) (40 ) 841 Total (573 ) (40 ) (265 ) Provision for income taxes $ 67 $ 351 $ 514 The following reconciles the tax expense computed at the statutory federal rate and the Company’s tax expense (in thousands): Year ended December 31, 2016 2015 2014 Computed expected tax expense $ (93,770 ) $ (94,737 ) $ (81,107 ) State income taxes, net of federal tax effect 360 259 395 Foreign income taxes (949 ) 202 1,645 Other reconciling items 666 — — Permanent differences 1,688 1,980 2,261 Change in valuation allowance 92,072 92,647 77,320 Provision for income taxes $ 67 $ 351 $ 514 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, 2016 2015 Gross deferred tax assets: Net operating loss carryforwards $ 799,302 $ 642,391 Deferred subscriber income 19,866 13,722 Accrued expenses and allowances 15,452 15,415 Purchased intangibles 14,776 10,576 Inventory reserves 6,999 9,333 Property and Equipment 3,482 3,257 Alternative minimum tax credit and research and development credit 41 41 Valuation allowance (328,991 ) (234,771 ) 530,927 459,964 Gross deferred tax liabilities: Deferred subscriber acquisition costs (537,387 ) (466,783 ) Property and equipment — — Prepaid expenses (744 ) (705 ) (538,131 ) (467,488 ) Net deferred tax liabilities $ (7,204 ) $ (7,524 ) The long-term portion of the net deferred tax liability was approximately $7.2 million and $7.5 million at December 31, 2016 and 2015, respectively. The current portion of the net deferred tax liability was immaterial at December 31, 2016 and 2015, respectively. The Company had net operating loss carryforwards as follows (in thousands): December 31, 2016 2015 Net operating loss carryforwards: United States $ 2,084,897 $ 1,695,386 State 1,553,812 1,338,742 Canada 33,526 28,629 New Zealand — 5,518 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 at December 31, 2016 and 2015, respectively of net operating loss carryforwards for which a benefit will be recorded in Additional Paid in Capital when realized. The Company had United States research and development credits of approximately $41,000 at December 31, 2016, and December 31, 2015, 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, the Company has 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 As of December 31, 2016, the Company’s income tax returns for the tax years 2013 through 2016, remain subject to examination by the Internal Revenue Service and state authorities. |
Stock-Based Compensation and Eq
Stock-Based Compensation and Equity | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Stock-Based Compensation and Equity | NOTE 9—STOCK-BASED COMPENSATION AND EQUITY 313 Incentive Units The Company’s indirect parent, 313 Acquisition LLC (“313”), which is majority 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 June 30, 2017, 85,812,836 Incentive Units had been awarded, and were outstanding, 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 two-thirds 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 two-thirds re-granted 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 55% to 125%, expected dividends of 0%; expected exercise term between 6.00 and 6.47 years; and risk-free rates between 0.61% and 1.77%. 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 June 30, 2017. 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 6.00 and 6.50 years; and risk-free rates between 1.51% and 1.77%. 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): Six Months 2017 2016 Operating expenses $ 40 $ 31 Selling expenses 110 (239 ) General and administrative expenses 736 3,038 Total stock-based compensation $ 886 $ 2,830 Stock-based compensation expense presented in selling expenses was negative for the six months ended June 30, 2016 due to a retrospective adjustment in the grant-date fair value of a series of stock-based awards. Stock-based compensation expense included in general and administrative expenses for both the three and six months ended June 30, 2016 included $2.2 million of compensation related to an equity repurchase by 313 from one of the Company’s executives. Capital Contribution— | NOTE 12—STOCK-BASED COMPENSATION AND EQUITY 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”). 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 December 31, 2016, a total of 85,882,836 Incentive Units had been awarded, and were outstanding, 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 two-thirds A summary of the Incentive Unit activity for the years ended December 31, 2016 and 2015 is presented below: Incentive Units Weighted Average Weighted Average Aggregate 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 Granted 12,825,000 1.93 Forfeited (905,000 ) 1.09 Exercised — — Outstanding, December 31, 2016 85,882,836 1.19 6.81 — Unvested shares expected to vest after December 31, 2016 66,186,360 1.23 6.99 — Exercisable at December 31, 2016 19,696,476 $ 1.03 6.21 $ — As of December 31, 2016, there was $1.8 million of unrecognized compensation expense related to outstanding Incentive Units, which will be recognized over a weighted-average period of 1.57 years. As of December 31, 2016 and 2015, the weighted average grant date fair value of the outstanding incentive units was $0.30 and $0.38, 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 two-thirds re-granted 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 55% to 125%, expected dividends of 0%; expected exercise term between 6.00 and 6.47 years; and risk-free rates between 0.61% and 1.77%. 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, 2016 and 2015 is presented below: Stock Appreciation Weighted Average Weighted Average Aggregate 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 Granted 5,649,573 1.22 Forfeited (2,320,552 ) 0.92 Exercised — — Outstanding, December 31, 2016 21,993,158 0.96 8.23 — Unvested shares expected to vest after December 31, 2016 19,334,407 0.98 8.37 — Exercisable at December 31, 2016 2,658,751 $ 0.78 7.20 $ — As of December 31, 2016, there was $0.9 million of unrecognized compensation expense related to outstanding Vivint awards, which will be recognized over a weighted-average period of 2.81 years. As of December 31, 2016 and 2015, the weighted average grant date fair value of the outstanding SARs was $0.22 and $0.25, 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, 17,500 SARs were outstanding as of December 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 6.00 and 6.50 years; and risk-free rates between 1.51% and 1.77%. 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, 2016 and 2015 is presented below: Stock Appreciation Weighted Average Weighted Average Aggregate 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 — Granted — — Forfeited (63,500 ) 15.54 Exercised — — Outstanding, December 31, 2016 17,500 5.00 6.41 — Unvested shares expected to vest after December 31, 2016 7,000 5.00 6.41 — Exercisable, December 31, 2016 10,500 $ 5.00 6.41 — As of December 31, 2016, there was an immaterial amount of unrecognized compensation expense related to all Vivint Wireless awards. As of December 31, 2016 and 2015, the weighted average grant date fair value of the outstanding SARs was $2.30 and $6.02, respectively. Stock-based compensation expense in connection with all stock-based awards for the years ended December 31, 2016, 2015 and 2014 is allocated as follows (in thousands): Year ended December 31, 2016 2015 2014 Operating expenses $ 68 $ 71 $ 63 Selling expenses (127 ) 578 185 General and administrative expenses 3,927 2,472 1,688 Total stock-based compensation $ 3,868 $ 3,121 $ 1,936 Stock-based compensation expense presented in selling expenses was negative for the year ended December 31, 2016 due to a retrospective adjustment in the grant-date fair value of a series of stock-based awards. Stock-based compensation expense included in general and administrative expenses for the year ended December 31, 2016 included $2.2 million of compensation related to an equity repurchase by 313 from one of the Company’s executives. Capital Contribution In April 2016, Parent completed the first installment of an issuance and sale to certain investors of a series of preferred stock and contributed the net proceeds from such issuance of $69.8 million to the Company as an equity contribution. In July 2016, Parent completed the final installment of the issuance and sale to certain investors of such series of preferred stock and, in August 2016, contributed the net proceeds from such issuance of $30.6 million to the Company as an equity contribution. Both issuances were private placements exempt from registration under the Securities Act. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
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 $2.6 million as of June 30, 2017 and December 31, 2016, 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 six months ended, June 30, June 30, Lease Term Arrangement Warehouse, office space and other $ 5,885 $ 5,593 11-15 years Wireless towers and spectrum 2,344 2,367 1-10 years Total Rent Expense $ 8,229 $ 7,960 Capital Leases Spectrum Licenses mid-sized Build-to-Suit non-cancellable build-to-suit build-to-suit In April 2017, construction on the Logan Facility was completed and the Company commenced occupancy. In accordance with ASC 840-40 build-to-suit | NOTE 13—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 $2.6 million and $2.5 million as of December 31, 2016 and 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 2016 2015 Lease Term Warehouse, office space and other $ 11,222 $ 11,632 1-15 years Wireless towers, spectrum and other 4,732 3,509 1-10 Total Rent Expense $ 15,954 $ 15,141 Capital Leases Spectrum Licenses mid-sized As of December 31, 2016, future minimum lease payments were as follows (in thousands): Operating Capital Total 2017 $ 17,452 $ 10,513 $ 27,965 2018 15,322 6,117 21,439 2019 14,998 2,049 17,047 2020 13,521 17 13,538 2021 13,086 — 13,086 Thereafter 47,634 — 47,634 Amounts representing interest — (963 ) (963 ) Total lease payments $ 122,013 $ 17,733 $ 139,746 Build-to-Suit non-cancellable build-to-suit build-to-suit In addition to the commitments mentioned above, the Company had other off-balance |
Related Party Transactions
Related Party Transactions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
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 six months ended June 30, 2017 and 2016, the Company charged $1.1 million and $2.8 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 $0.2 million at both June 30, 2017 and December 31, 2016, 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 • 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 • 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. In November 2016, the Company amended the Marketing and Customer Relations Agreement with Solar to update certain terms and conditions governing existing cross-marketing initiatives and to implement new cross-marketing initiatives, including a pilot program with the purpose of exploring potential opportunities for each company to offer, sell and integrate the other company’s respective products and services with its standard product offering. The pilot program is still ongoing. Other Related-party Transactions Long-term investments and other assets, includes amounts due for non-interest Prepaid expenses and other current assets at June 30, 2017 and December 31, 2016 included a receivable for $0.2 million and $0.4 million, respectively, from certain members of management in regards to their personal use of the corporate jet. The Company incurred additional expenses of $0.8 million and $1.2 million during the six months ended June 30, 2017 and 2016, 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 June 30, 2017 and December 31, 2016, included a payable to Vivint Gives Back for $0.7 million and $1.8 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 “true-up” 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 and six months ended June 30, 2017 and 2016 the Company incurred no costs associated with such services. Blackstone Advisory Partners L.P. participated as one of the initial purchasers in the issuance of 2022 notes in May 2016, as well as the issuance of additional 2022 Notes in August 2016 and February 2017 and received fees at the time of closing of such issuances aggregating approximately $0.7 million. In April 2016, Parent completed the first installment of an issuance and sale to certain investors of a series of preferred stock and contributed the net proceeds from such issuance of $69.8 million to the Company as an equity contribution. In July 2016, Parent completed the final installment of the issuance and sale to certain investors of such series of preferred stock and, in August 2016, contributed the net proceeds from such issuance of $30.6 million to the Company as an equity contribution. Both issuances were private placements exempt from registration under the Securities Act. 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 | NOTE 14—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, 2016, 2015 and 2014 the Company charged $4.6 million, $7.1 million 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 $0.2 million and $1.9 million at December 31, 2016 and December 31, 2015, 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 • 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 • 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. In November 2016, the Company amended the Marketing and Customer Relations Agreement with Solar to update certain terms and conditions governing existing cross-marketing initiatives and to implement new cross-marketing initiatives including a three-month pilot program with the purpose of exploring potential opportunities for each company to offer, sell and integrate the other company’s respective products and services with its standard product offering. 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, 2016, 2015 and 2014 of approximately $4.2 million, $2.5 million, $3.1 million, respectively, for other related-party transactions including contributions to the charitable organization Vivint Gives Back, legal fees, and other services. Accrued expenses and other current liabilities at December 31, 2016 and 2015 included payables of $2.5 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 pre-merger paid-in 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” 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 years ended December 31, 2016, 2015 and 2014 the Company incurred no costs associated with such services. Blackstone Advisory Partners L.P. (“BAP”), an affiliate of Blackstone, participated as one of the initial purchasers of the 2020 notes in each of the May 2013, December 2013 and July 2014 offerings and received fees at the time of closing of such issuances aggregating approximately $0.6 million. BAP participated as one of the initial purchasers of the 2022 notes in each of the May 2016 and August 2016 offerings and received fees at the time of closing of such issuances aggregating approximately $0.5 million. On May 2, 2016, the Company and David Bywater, its former Chief Operating Officer, agreed that in connection with the appointment of Mr. Bywater as interim Chief Executive Officer of Vivint Solar, Inc., Mr. Bywater would take a leave of absence from the Company. On December 15, 2016, the Board of Directors (the “Board”) of the Company appointed Scott Hardy to serve as the Company’s Chief Operating Officer effective December 15, 2016. Mr. Hardy succeeded David Bywater, who notified the Company on December 15, 2016 of his intent to resign as the Company’s Chief Operating Officer. In April 2016, Parent completed the first installment of an issuance and sale to certain investors of a series of preferred stock and contributed the net proceeds from such issuance of $69.8 million to the Company as an equity contribution. In July 2016, Parent completed the final installment of the issuance and sale to certain investors of such series of preferred stock and, in August 2016, contributed the net proceeds from such issuance of $30.6 million to the Company as an equity contribution. Both issuances were private placements exempt from registration under the Securities Act. The company incurred stock-based compensation expense of $2.2 million included in general and administrative expenses for the year ended December 31, 2016 related to an equity repurchase by 313 from one of the Company’s executives. Long-term investments and other assets, includes amounts due for non-interest Prepaid expenses and other current assets at December 31, 2016 and 2015 included a receivable for $0.4 million and $0.2 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 |
Segment Reporting and Business
Segment Reporting and Business Concentrations | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Segment Reporting [Abstract] | ||
Segment Reporting and Business Concentrations | NOTE 14—SEGMENT REPORTING AND BUSINESS CONCENTRATIONS For the six months ended June 30, 2017 and 2016, the Company conducted business through one operating segment, Vivint. Historically, the Company primarily operated in three geographic regions: United States, Canada and New Zealand. During the three months ended September 30, 2016, the Company sold all of its New Zealand subscriber contracts and ceased operations in that geographical region. Historically, the Company’s operations in New Zealand were 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 Revenue from external customers Six months ended June 30, 2017 386,765 30,714 417,479 Six months ended June 30, 2016 328,181 26,879 355,060 Property, plant and equipment, net As of June 30, 2017 $ 64,821 $ 838 $ 65,659 As of December 31, 2016 62,781 845 63,626 | NOTE 15—SEGMENT REPORTING AND BUSINESS CONCENTRATIONS For the years ended December 31, 2016 and 2015, the Company conducted business through one operating segment, Vivint. Historically, the Company primarily operated in three geographic regions: United States, Canada and New Zealand. During the year ended December 31, 2016, the Company completed the 2016 Contract Sales and ceased operations in New Zealand. Historically, the Company’s operations in New Zealand were 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, 2016 Revenue from external customers $ 700,471 $ 57,436 $ 757,907 Property and equipment, net 62,781 845 63,626 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 |
Employee Benefit Plan
Employee Benefit Plan | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
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 and six months ended June 30, 2017 and 2016. | NOTE 16—EMPLOYEE BENEFIT PLAN The Company offers 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, 2016 and 2015. |
Guarantor and Non-Guarantor Sup
Guarantor and Non-Guarantor Supplemental Financial Information | 12 Months Ended |
Dec. 31, 2016 | |
Text Block [Abstract] | |
Guarantor and Non-Guarantor Supplemental Financial Information | NOTE 17—GUARANTOR AND NON-GUARANTOR The 2019 notes, 2020 notes, 2022 private placement notes and the 2022 notes were issued by APX. The 2019 notes, 2020 notes, 2022 private placement 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 Non-Guarantor Condensed Consolidating Balance Sheet December 31, 2016 (In thousands) Parent APX Guarantor Non-Guarantor Eliminations Consolidated Assets Current assets $ — $ 25,136 $ 143,954 $ 3,730 $ (67,799 ) $ 105,021 Property and equipment, net — — 62,781 845 — 63,626 Subscriber acquisition costs, net — — 974,975 77,459 — 1,052,434 Deferred financing costs, net — 4,420 — — — 4,420 Investment in subsidiaries — 2,228,903 — — (2,228,903 ) — Intercompany receivable — — 9,492 — (9,492 ) — Intangible assets, net — — 443,189 32,203 — 475,392 Goodwill — — 809,678 25,555 — 835,233 Long-term investments and other assets — 106 11,523 13 (106 ) 11,536 Total Assets $ — $ 2,258,565 $ 2,455,592 $ 139,805 $ (2,306,300 ) $ 2,547,662 Liabilities and Stockholders’ (Deficit) Equity Current liabilities $ — $ 17,047 $ 160,956 $ 74,987 $ (67,799 ) $ 185,191 Intercompany payable — — — 9,492 (9,492 ) — Notes payable and revolving line of credit, net of current portion — 2,486,700 — — — 2,486,700 Capital lease obligations, net of current portion — — 7,368 567 — 7,935 Deferred revenue, net of current portion — — 53,991 4,743 — 58,734 Accumulated losses of investee 245,182 (245,182 ) — Other long-term obligations — — 47,080 — — 47,080 Deferred income tax liability — — 106 7,204 (106 ) 7,204 Total (deficit) equity (245,182 ) (245,182 ) 2,186,091 42,812 (1,983,721 ) (245,182 ) Total liabilities and stockholders’ (deficit) equity $ — $ 2,258,565 $ 2,455,592 $ 139,805 $ (2,306,300 ) $ 2,547,662 Condensed Consolidating Balance Sheet December 31, 2015 (In thousands) Parent APX 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’ (Deficit) 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 (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 Statements of Operations and Comprehensive Loss For the Year ended December 31, 2016 (In thousands) Parent APX Guarantor Non-Guarantor Eliminations Consolidated Revenues $ — $ — $ 715,072 $ 45,539 $ (2,704 ) $ 757,907 Costs and expenses — — 787,138 44,575 (2,704 ) 829,009 (Loss) income from operations — — (72,066 ) 964 — (71,102 ) Loss from subsidiaries (275,957 ) (69,637 ) — — 345,594 — Other expense (income), net — 206,320 (1,207 ) (325 ) — 204,788 (Loss) income before income tax expenses (275,957 ) (275,957 ) (70,859 ) 1,289 345,594 (275,890 ) Income tax expense (benefit) — — 545 (478 ) — 67 Net (loss) income $ (275,957 ) $ (275,957 ) $ (71,404 ) $ 1,767 $ 345,594 $ (275,957 ) Other comprehensive (loss) income, net of tax effects: Foreign currency translation adjustment — 2,482 — 2,482 (2,482 ) 2,482 Unrealized gain on marketable securities — 1,011 1,011 — (1,011 ) 1,011 Comprehensive (loss) income $ (275,957 ) $ (272,464 ) $ (70,393 ) $ 4,249 $ 342,101 $ (272,464 ) 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, 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) income, net of tax effects: Foreign currency translation adjustment — (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) income from operations — — (92,236 ) (1,633 ) — (93,869 ) (Loss) income from subsidiaries (238,660 ) (93,850 ) — — 332,510 — Other expense (income), net — 145,917 (1,676 ) 36 — 144,277 Loss from operations before income tax expense (238,660 ) (239,767 ) (90,560 ) (1,669 ) 332,510 (238,146 ) Income tax (benefit) expense — (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: Foreign currency translation adjustment — (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 Cash Flows For the Year ended December 31, 2016 (In thousands) Parent APX Guarantor Non-Guarantor Eliminations Consolidated Cash flows from operating activities: Net cash (used in) provided by operating activities $ — $ — $ (380,508 ) $ 14,802 $ — $ (365,706 ) Cash flows from investing activities: Subscriber acquisition costs—company owned equipment — — (5,243 ) — — (5,243 ) Capital expenditures — — (11,642 ) — — (11,642 ) Proceeds from sale of capital assets — — 3,080 43 — 3,123 Investment in subsidiary (100,407 ) (408,214 ) — — 508,621 — Acquisition of intangible assets — — (1,385 ) — — (1,385 ) Net cash (used in) provided by investing activities (100,407 ) (408,214 ) (15,190 ) 43 508,621 (15,147 ) Cash flows from financing activities: Proceeds from notes payable — 604,000 — — — 604,000 Repayment on notes payable — (235,535 ) — — — (235,535 ) Borrowings from revolving line of credit — 57,000 — — — 57,000 Repayment of revolving line of credit — (77,000 ) — — — $ (77,000 ) Proceeds from capital contribution 100,407 100,407 — — (100,407 ) 100,407 Payment of intercompany settlement — — 3,000 (3,000 ) — — Intercompany receivable — — 12,906 — (12,906 ) — Intercompany payable — — 408,214 (12,906 ) (395,308 ) — Repayments of capital lease obligations — — (8,295 ) (20 ) — (8,315 ) Financing costs — (9,036 ) — — — (9,036 ) Deferred financing costs — (9,241 ) — — — (9,241 ) Net cash provided by (used in) provided by financing activities 100,407 430,595 415,825 (15,926 ) (508,621 ) 422,280 Effect of exchange rate changes on cash — — — (466 ) — (466 ) Net increase (decrease) in cash — 22,381 20,127 (1,547 ) — 40,961 Cash: Beginning of period — 2,299 (1,941 ) 2,201 — 2,559 End of period $ — $ 24,680 $ 18,186 $ 654 $ — $ 43,520 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) provided by 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 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 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 ) — Repayments of capital lease obligations — — (6,402 ) (12 ) — (6,414 ) Deferred financing costs — (5,436 ) — — — (5,436 ) 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 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 Proceeds from capital contribution 32,300 32,300 — — (32,300 ) 32,300 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 ) 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 (decrease) 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 |
Subsequent Events
Subsequent Events | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Subsequent Events [Abstract] | ||
Subsequent Events | NOTE 16—SUBSEQUENT EVENTS 2023 Notes On August 10, 2017, APX issued $400 million aggregate principal amount of its 7.625% Senior Notes due 2023 (the “2023 Notes”) at par. APX used the net proceeds from the 2023 Notes offering to redeem $150 million aggregate principal amount of the outstanding 2019 notes and pay the related accrued interest and redemption premium, and to pay all fees and expenses related thereto and any remaining net proceeds for general corporate purposes, including the repayment of outstanding borrowings under the Company’s revolving credit facility. Blackstone Advisory Partners L.P. participated as one of the initial purchasers in the offering of the 2023 Notes. Sales Dealer Agreement. On August 16, 2017, the Company entered into a Sales Dealer agreement with Solar, pursuant to which each party will act as a non-exclusive dealer for the other party to market, promote and sell each other’s products. The agreement will have a two-year term, which will be automatically renewed for successive one-year terms unless written notice of termination is provided by one of the parties to the other no less than 90 days prior to the end of the then current term. The products, territories and consideration that is payable by each party to the other will be determined in accordance with the agreement. | NOTE 18—SUBSEQUENT EVENTS Vivint Flex Pay On January 3, 2017, the Company announced the introduction of the Vivint Flex Pay plan. Under the Vivint Flex Pay plan, the Company (i) launched a Consumer Financing Program in the first quarter of 2017, pursuant to which it will offer to qualified customers in the United States an opportunity to finance the purchase of products (the “Products”) used in connection with Vivint’s smart home and security services through a third party financing provider and (ii) offer retail installment contracts (“RICs”) with respect to the purchase of Products to certain of the Company’s customers who do not qualify to participate in the Consumer Financing Program, but qualify under Vivint’s historical underwriting criteria. Vivint may also establish credit programs either directly or through an affiliate or pursuant to an agreement with a third party to provide installment loans or similar products to customers that do not qualify to participate in the Consumer Financing Program. Alternatively, customers may purchase the Products with cash or credit card. Under the Vivint Flex Pay plan, customers pay separately for the Products and Vivint’s smart home and security services. Under the Consumer Financing Program, qualified customers will be eligible for installment loans provided by a third party financing provider of up to $4,000 for either 42 or 60 months. In connection with the Consumer Financing Program, a subsidiary of the Company entered into an agreement (the “CFP Agreement”) with Citizens Bank, N.A. (“Citizens”) pursuant to which Citizens is the exclusive provider of installment loans under the Consumer Financing Program for Vivint’s customers who are eligible for such loans. Pursuant to the CFP Agreement, Vivint pays a monthly fee to Citizens based on the average daily balance of the loans provided by Citizens outstanding and Citizens and Vivint share liability for credit losses, with Vivint being responsible for approximately 5% to 100% of lost principal balances, depending on factors specified in the CFP Agreement. The initial term of the CFP Agreement is five years, subject to automatic, one-year 2022 Notes On February 1, 2017, APX issued an additional $300.0 million aggregate principal amount of the 2022 notes at a price of 108.250%. The Company used the net proceeds from the offering of these 2022 notes to to redeem $300.0 million aggregate principal amount of the existing 2019 notes and pay the related redemption premium, and to pay all fees and expenses related thereto and will use any remaining proceeds for general corporate purposes. |
Retail Installment Contract Rec
Retail Installment Contract Receivables | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Retail Installment Contract Receivables | NOTE 3—RETAIL INSTALLMENT CONTRACT RECEIVABLES Certain subscribers have the option to purchase Products under a RIC, payable over either 42 or 60 months. Short-term RIC receivables are recorded in accounts and notes receivable, net and long-term RIC receivables are recorded in long-term investments and other assets, net in the condensed consolidated unaudited balance sheets. The following table summarizes the installment receivables (in thousands): June 30, 2017 RIC receivables, gross $ 80,608 Deferred interest (24,889 ) RIC receivables, net of deferred interest 55,719 Classified on the condensed consolidated unaudited balance sheets as: Accounts and notes receivable, net $ 8,478 Long-term investments and other assets, net 47,241 RIC receivables, net $ 55,719 Activity in the deferred interest for the RIC receivables was as follows (in thousands): Six months ended Deferred interest, beginning of period $ — Bad debt expense — Write-offs, net of recoveries (234 ) Change in deferred interest on short-term and long-term RIC receivables 25,123 Deferred interest, end of period $ 24,889 Since the inception of RICs and during the three and six months ended June 30, 2017 the amount of RIC imputed interest income recognized in recurring and other revenue was $1.1 million and $1.2 million, respectively. |
Gurantor and non-gurantor suppl
Gurantor and non-gurantor supplemental financial information | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Gurantor and non-gurantor supplemental financial information | NOTE 15—GUARANTOR AND NON-GUARANTOR The 2019 notes, 2020 notes, 2022 private placement notes and 2022 notes were issued by APX. The 2019 notes, 2020 notes, 2022 private placement notes and 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 Non-Guarantor Supplemental Condensed Consolidating Balance Sheet June 30, 2017 (In thousands) (unaudited) Parent APX Group, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets $ — $ 4,454 $ 232,076 $ 24,318 $ (105,914 ) $ 154,934 Property, plant and equipment, net — — 64,820 839 — 65,659 Subscriber acquisition costs, net — — 1,084,164 86,123 — 1,170,287 Deferred financing costs, net — 3,407 — — — 3,407 Investment in subsidiaries — 2,210,678 — — (2,210,678 ) — Intercompany receivable — — 6,303 — (6,303 ) — Intangible assets, net — — 397,007 29,609 — 426,616 Goodwill — — 809,678 26,437 — 836,115 Long-term investments and other assets — 106 53,603 5,350 (106 ) 58,953 Total Assets $ — $ 2,218,645 $ 2,647,651 $ 172,676 $ (2,323,001 ) $ 2,715,971 Liabilities and Stockholders’ (Deficit) Equity Current liabilities $ — $ 17,269 $ 277,575 $ 100,090 $ (105,914 ) $ 289,020 Intercompany payable — — — 6,303 (6,303 ) — Notes payable and revolving credit facility, net of current portion — 2,611,225 — — — 2,611,225 Capital lease obligations, net of current portion — — 4,488 461 — 4,949 Deferred revenue, net of current portion — — 144,026 10,218 — 154,244 Other long-term obligations — — 58,930 — — 58,930 Accumulated losses of investee 409,849 (409,849 ) — Deferred income tax liability — — 106 7,452 (106 ) 7,452 Total (deficit) equity (409,849 ) (409,849 ) 2,162,526 48,152 (1,800,829 ) (409,849 ) Total liabilities and stockholders’ (deficit) equity $ — $ 2,218,645 $ 2,647,651 $ 172,676 $ (2,323,001 ) $ 2,715,971 Supplemental Condensed Consolidating Balance Sheet December 31, 2016 (In thousands) Parent APX Group, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets $ — $ 25,136 $ 143,954 $ 3,730 $ (67,799 ) $ 105,021 Property, plant and equipment, net — — 62,781 845 — 63,626 Subscriber acquisition costs, net — — 974,975 77,459 — 1,052,434 Deferred financing costs, net — 4,420 — — — 4,420 Investment in subsidiaries — 2,228,903 — — (2,228,903 ) — Intercompany receivable — — 9,492 — (9,492 ) — Intangible assets, net — — 443,189 32,203 — 475,392 Goodwill — — 809,678 25,555 — 835,233 Long-term investments and other assets — 106 11,523 13 (106 ) 11,536 Total Assets $ — $ 2,258,565 $ 2,455,592 $ 139,805 $ (2,306,300 ) $ 2,547,662 Liabilities and Stockholders’ (Deficit) Equity Current liabilities $ — $ 17,047 $ 160,956 $ 74,987 $ (67,799 ) $ 185,191 Intercompany payable — — — 9,492 (9,492 ) — Notes payable and revolving credit facility, net of current portion — 2,486,700 — — — 2,486,700 Capital lease obligations, net of current portion — — 7,368 567 — 7,935 Deferred revenue, net of current portion — — 53,991 4,743 — 58,734 Accumulated Losses of Investee 245,182 (245,182 ) — Other long-term obligations — — 47,080 — — 47,080 Deferred income tax liability — — 106 7,204 (106 ) 7,204 Total (deficit) equity (245,182 ) (245,182 ) 2,186,091 42,812 (1,983,721 ) (245,182 ) Total liabilities and stockholders’ (deficit) equity $ — $ 2,258,565 $ 2,455,592 $ 139,805 $ (2,306,300 ) $ 2,547,662 Supplemental Condensed Consolidating Statements of Operations and Comprehensive Loss For the Six Months Ended June 30, 2017 (In thousands) (unaudited) Parent APX Group, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ — $ 395,515 $ 23,315 $ (1,351 ) $ 417,479 Costs and expenses — — 445,668 20,152 (1,351 ) 464,469 (Loss) income from operations — — (50,153 ) 3,163 — (46,990 ) Loss from subsidiaries (166,873 ) (47,496 ) — — 214,369 — Other expense (income), net — 119,377 1,741 (2,386 ) — 118,732 (Loss) income before income tax expenses (166,873 ) (166,873 ) (51,894 ) 5,549 214,369 (165,722 ) Income tax (benefit) expense — — (269 ) 1,420 — 1,151 Net (loss) income $ (166,873 ) $ (166,873 ) $ (51,625 ) $ 4,129 $ 214,369 $ (166,873 ) Other comprehensive (loss) income, net of tax effects: Net (loss) income $ (166,873 ) $ (166,873 ) $ (51,625 ) $ 4,129 $ 214,369 $ (166,873 ) Foreign currency translation adjustment — 1,576 — 1,576 (1,576 ) 1,576 Unrealized gain on marketable securities — (258 ) (258 ) — 258 (258 ) Total other comprehensive income (loss) — 1,318 (258 ) 1,576 (1,318 ) 1,318 Comprehensive (loss) income $ (166,873 ) $ (165,555 ) $ (51,883 ) $ 5,705 $ 213,051 $ (165,555 ) Supplemental Condensed Consolidating Statements of Operations and Comprehensive Loss For the Six Months Ended June 30, 2016 (In thousands) (unaudited) Parent APX Group, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ — $ 337,256 $ 19,155 $ (1,351 ) $ 355,060 Costs and expenses — — 373,319 19,640 (1,351 ) 391,608 Loss from operations — — (36,063 ) (485 ) — (36,548 ) Loss from subsidiaries (134,815 ) (32,494 ) — — 167,309 — Other expense (income), net — 102,321 (1,428 ) (3,298 ) — 97,595 (Loss) income before income tax expenses (134,815 ) (134,815 ) (34,635 ) 2,813 167,309 (134,143 ) Income tax expense — — 185 487 — 672 Net (loss) income $ (134,815 ) $ (134,815 ) $ (34,820 ) $ 2,326 $ 167,309 $ (134,815 ) Other comprehensive loss, net of tax effects: Net (loss) income $ (134,815 ) $ (134,815 ) $ (34,820 ) $ 2,326 $ 167,309 $ (134,815 ) Foreign currency translation adjustment — 2,801 — 2,801 (2,801 ) 2,801 Total other comprehensive income — 2,801 — 2,801 (2,801 ) 2,801 Comprehensive (loss) income $ (134,815 ) $ (132,014 ) $ (34,820 ) $ 5,127 $ 164,508 $ (132,014 ) Supplemental Condensed Consolidating Statements of Cash Flows For the Six Months Ended June 30, 2017 (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 $ — $ — $ (136,796 ) $ 3,535 $ — $ (133,261 ) Cash flows from investing activities: Capital expenditures — — (11,435 ) — — (11,435 ) Proceeds from sale of assets — — 319 — — 319 Investment in subsidiary — (129,560 ) — — 129,560 — Acquisition of intangible assets — — (743 ) — — (743 ) Acquisition of other assets — — (143 ) — — (143 ) Net cash used in investing activities — (129,560 ) (12,002 ) — 129,560 (12,002 ) Cash flows from financing activities: Proceeds from notes payable — 324,750 — — — 324,750 Repayment on notes payable — (300,000 ) — — — (300,000 ) Borrowings from revolving credit facility — 113,000 — — — 113,000 Repayments on revolving credit facility — (13,000 ) — — — (13,000 ) Intercompany receivable — — 3,189 — (3,189 ) — Intercompany payable — — 129,560 (3,189 ) (126,371 ) — Repayments of capital lease obligations — — (4,549 ) (163 ) — (4,712 ) Payments of other long-term obligations — — (1,164 ) — — (1,164 ) Financing costs — (9,460 ) — — — (9,460 ) Deferred financing costs — (6,191 ) — — — (6,191 ) Net cash provided by (used in) financing activities — 109,099 127,036 (3,352 ) (129,560 ) 103,223 Effect of exchange rate changes on cash — — — (10 ) — (10 ) Net increase (decrease) in cash and cash equivalents — (20,461 ) (21,762 ) 173 — (42,050 ) Cash and cash equivalents: Beginning of period — 24,680 18,186 654 — 43,520 End of period $ — $ 4,219 $ (3,576 ) $ 827 $ — $ 1,470 Supplemental Condensed Consolidating Statements of Cash Flows For the Six Months Ended June 30, 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 $ — $ — $ (176,661 ) $ 5,088 $ — $ (171,573 ) Cash flows from investing activities: Subscriber acquisition costs—company owned equipment — — (1,791 ) — — (1,791 ) Capital expenditures — — (4,526 ) — — (4,526 ) Investment in subsidiary (69,800 ) (187,004 ) — — 256,804 — Acquisition of intangible assets — — (505 ) — — (505 ) Proceeds from sale of assets — — 1,925 — — 1,925 Net cash used in investing activities (69,800 ) (187,004 ) (4,897 ) — 256,804 (4,897 ) Cash flows from financing activities: Proceeds from notes payable — 500,000 — — — 500,000 Repayment on notes payable — (235,535 ) — — — (235,535 ) Borrowings from revolving credit facility — 57,000 — — — 57,000 Repayments on revolving credit facility — (77,000 ) — — — (77,000 ) Intercompany receivable — — 6,621 — (6,621 ) — Intercompany payable — — 187,004 (6,621 ) (180,383 ) — Proceeds from capital contributions 69,800 69,800 — — (69,800 ) 69,800 Repayments of capital lease obligations — — (3,955 ) (1 ) — (3,956 ) Financing costs — (8,274 ) — — — (8,274 ) Deferred financing costs — (6,277 ) — — — (6,277 ) Net cash provided by (used in) financing activities 69,800 299,714 189,670 (6,622 ) (256,804 ) 295,758 Effect of exchange rate changes on cash — — — (441 ) — (441 ) Net increase (decrease) in cash and cash equivalents — 112,710 8,112 (1,975 ) — 118,847 Cash and cash equivalents: Beginning of period — 2,299 (1,941 ) 2,201 — 2,559 End of period $ — $ 115,009 $ 6,171 $ 226 $ — $ 121,406 |
Basis of Presentation and Sig28
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | ||
Basis of Presentation | Basis of Presentation | 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 out-of-period |
Change in Accounting Estimate | Change in Accounting Estimate Year ended Increase in activation fee revenues $ 1,400 Increase in depreciation and amortization 21,413 Increase to loss from operations 20,013 Increase to net loss 19,621 | |
Restructuring and Asset Impairment Charges | Restructuring and Asset Impairment Charges | Restructuring and Asset Impairment Charges |
Principles of Consolidation | Principles of Consolidation | |
Changes in Presentation of Comparative Financial Statements | Changes in Presentation of Comparative Financial Statements | |
Revenue Recognition | Revenue Recognition— non-recurring Recurring and other revenue includes (i) the Company’s subscriber contracts associated with Services, which are billed directly to the subscriber in advance, generally monthly, pursuant to the terms of subscriber contracts and recognized ratably over the service period, (ii) monthly recognition of deferred Product revenue and (iii) imputed interest associated with the RIC receivables, which is recognized over the initial term of the RIC. 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. Activation fees represent upfront one-time | Revenue Recognition non-recurring 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. Activation fees represent upfront one-time |
Subscriber Acquisition Costs | Subscriber Acquisition Costs direct-to-home 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 direct-to-home 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 condensed consolidated statements of cash flows as these assets represent deferred costs associated with customer contracts. |
Cash and Cash Equivalents | Cash and Cash Equivalents— | Cash and Cash Equivalents |
Accounts Receivable | Accounts Receivable non-interest The changes in the Company’s allowance for accounts receivable were as follows for the periods ended (in thousands): Six Months Ended 2017 2016 Beginning balance $ 4,138 $ 3,541 Provision for doubtful accounts 9,726 7,717 Write-offs and adjustments (10,065 ) (8,161 ) Balance at end of period $ 3,799 $ 3,097 | Accounts Receivable non-interest The changes in the Company’s allowance for accounts receivable were as follows for the periods ended (in thousands): Year ended December 31, 2016 2015 2014 Beginning balance $ 3,541 $ 3,373 $ 1,901 Provision for doubtful accounts 19,624 14,924 15,656 Write-offs and adjustments (19,027 ) (14,756 ) (14,184 ) Balance at end of period $ 4,138 $ 3,541 $ 3,373 |
Inventories | Inventories first-in, first-out | Inventories first-in, first-out |
Long-lived Assets and Intangibles | Long-lived Assets and Intangibles | Long-lived Assets and Intangibles Effective January 1, 2016, the Company adopted guidance issued by the 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 cloud computing arrangements during the year ended December 31, 2016. |
Wireless Spectrum Licenses | Wireless Spectrum Licenses The Company has determined that the wireless spectrum licenses meet the definition of indefinite-lived intangible assets because the licenses may be renewed periodically for a nominal fee, provided that the Company continues to meet the service and geographic coverage provisions. The Company has also determined that there are currently no legal, regulatory, contractual, competitive, economic or other factors that limit the useful lives of these wireless spectrum licenses. | Wireless Spectrum Licenses price paid for the licenses at the time of acquisition, plus costs incurred to acquire the licenses. The asset and related liability were recorded at the net present value of future cash outflows using the Company’s incremental borrowing rate at the time of acquisition. The Company has determined that the wireless spectrum licenses meet the definition of indefinite-lived intangible assets because the licenses may be renewed periodically for a nominal fee, provided that the Company continues to meet the service and geographic coverage provisions. The Company has also determined that there are currently no legal, regulatory, contractual, competitive, economic or other factors that limit the useful lives of these wireless spectrum licenses. |
Long-term Investments | Long-term Investments available-for-sale available-for-sale The Company’s marketable equity securities have been classified and accounted for as available-for-sale. The Company performs impairment analyses of its cost based investments 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, 2016, no indicators of impairment existed associated with these cost based investments. | Long-term Investments available-for-sale Available-for-sale available-for-sale The Company’s marketable equity securities have been classified and accounted for as available-for-sale. The Company performs impairment analyses of its cost based investments 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, 2016, no indicators of impairment existed associated with these cost based investments. |
Deferred Financing Costs | Deferred Financing Costs | Deferred Financing Costs Effective January 1, 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 | Residual Income Plan | Residual Income Plan |
Stock-Based Compensation | Stock-Based Compensation During the first quarter of 2017, the Company adopted Accounting Standard Update (“ASU”) 2016-09. 2016-09, 2016-09 2016-09 | 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 | 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 |
Contracts Sold | Contracts Sold During the year ended December 31, 2016, the Company sold all of its New Zealand and Puerto Rico subscriber contracts and ceased operations in these geographical regions (“2016 Contract Sales”). As a result, during the year ended December 31, 2016 the Company recorded the impact of these transactions in restructuring and asset impairment (See Note 3). | |
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 on-going 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 six months ended June 30, 2017 and 2016. 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 on-going 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, 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 | Goodwill | Goodwill |
Foreign Currency Translation and Other Comprehensive Income | Foreign Currency Translation and Other Comprehensive Income period-end 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 $2.5 million and $4.9 million for the six months ended June 30, 2017 and 2016. | Foreign Currency Translation and Other Comprehensive Income period-end 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 gains related to intercompany balances were $2.1 million for the year ended December 31, 2016. Translation losses related to intercompany balances were $9.4 million for the year ended December 31, 2015. During the year ended December 31, 2014, there were no translation gains or losses. |
Letters of Credit | Letters of Credit | Letters of Credit |
New Accounting Pronouncements | New Accounting Pronouncements 2014-09, Revenue from Contracts with Customers (Topic 606) 2015-14 2014-09 2016-08 2016-10 2016-12 non-cash The Company currently plans to adopt Topic 606 at the beginning of 2018 using the modified retrospective approach with the cumulative effect of initially applying the new standard recognized at the date of initial application and providing certain additional disclosures. However, a final decision regarding the adoption method has not been made at this time. The Company’s final determination will depend on a number of factors, such as the significance of the impact of the new standard on the Company’s financial results, and system readiness, including the Company’s ability to accumulate and analyze the information necessary to assess the impact on prior period financial statements, as necessary. The Company is in the early stages of evaluating the impact of the new standard on its accounting policies, processes, and system requirements. The Company has assigned internal resources in addition to the engagement of third-party service providers to assist in the evaluation. Furthermore, the Company has made and will continue to make investments in systems to enable timely and accurate reporting under the new standard. The Company expects the standard to have an effect on the subscriber acquisitions costs, net and deferred revenues included in our condensed consolidated balance sheets and the recognition of revenues and amortization of subscriber acquisition costs on the consolidated statement of operations. The Company does not expect the standard to have a significant impact to the consolidated statements of changes in equity or the consolidated statements of cash flows. While the Company continues to assess the potential impacts of the new standard, including the areas described above, and anticipate this standard could have a material impact on the consolidated financial statements, the Company does not know or cannot reasonably estimate quantitative information related to the impact of the new standard on the financial statements at this time. In June 2016, the FASB issued ASU 2016-13 2016-13 In February 2016, the FASB issued ASU 2016-02 The Company is in the initial stages of evaluating the impact of ASU 2016-02 While the Company continues to assess the potential impacts of ASU 2016-02, | New Accounting Pronouncements 2014-09, Revenue from Contracts with Customers (Topic 606) 2015-14 2014-09 2016-08 2016-10 2016-12 non-cash The Company currently plans to adopt Topic 606 using the modified retrospective approach with the cumulative effect of initially applying the new standard recognized at the date of initial application and providing certain additional disclosures. However, a final decision regarding the adoption method has not been made at this time. The Company’s final determination will depend on a number of factors, such as the significance of the impact of the new standard on the Company’s financial results, system readiness, including the Company’s ability to accumulate and analyze the information necessary to assess the impact on prior period financial statements, as necessary. The Company is in the initial stages of evaluating the impact of the new standard on the accounting policies, processes, and system requirements. The Company has assigned internal resources in addition to the engagement of third party service providers to assist in the evaluation. Furthermore, the Company has made and will continue to make investments in systems to enable timely and accurate reporting under the new standard. The Company expects the standard to have an effect on the subscriber acquisitions costs, net and deferred revenues included in our condensed consolidated balance sheets and the recognition of revenues and amortization of subscriber acquisition costs on the consolidated statement of operations. The Company does not expect the standard to have a significant impact to the consolidated statements of changes in equity or the consolidated statements of cash flows. While the Company continues to assess the potential impacts of the new standard, including the areas described above, and anticipate this standard could have a material impact on the consolidated financial statements, the Company does not know or cannot reasonably estimate quantitative information related to the impact of the new standard on the financial statements at this time. In March 2016, the FASB issued ASU 2016-09 In March 2016, the FASB issued ASU 2016-07 In March 2016, the FASB issued ASU 2016-06 In February 2016, the FASB issued ASU 2016-02 In January 2016, the FASB issued ASU 2016-01 |
Vivint Flex Pay | Vivint Flex Pay Although customers pay separately for the Products and Services under the Vivint Flex Pay plan, the Company has determined that the shift in model does not change the Company’s conclusion that the Product sales and Services are one combined unit of accounting. As a result, all forms of transactions under Vivint Flex Pay create deferred revenue for the gross amount of Products sold. Gross deferred revenues are reduced by imputed interest on the RICs and the present value of expected payments due to the third-party financing provider under the Consumer Financing Program. These deferred revenues are recognized in a pattern that reflects the estimated life of the subscriber relationships. The Company amortizes these deferred revenues over 15 years using a 240% declining balance method, which converts to a straight-line methodology after approximately nine years when the resulting amortization exceeds that from the accelerated method. Under the Consumer Financing Program, qualified customers are eligible for installment loans provided by a third-party financing provider of up to $4,000 for either 42 or 60 months. The Company pays a monthly fee to the third-party financing provider based on the average daily outstanding balance of the installment loans. Additionally, the Company shares liability for credit losses depending on the credit quality of the customer. Because of the nature of these provisions under the Consumer Financing Program, the Company records a derivative liability at its fair value when the third-party financing provider originates installment loans to customers, which reduces the amount of revenue recognized on the provision of the services. The derivative liability is reduced as payments are made from the Company to the third-party financing provider. Subsequent changes to the fair value of the derivative liability are realized through other loss/(income), net in the Condensed Consolidated Statement of Operations. (See Note 7). | |
Retail Installment Contract Receivables | Retail Installment Contract Receivables The Company imputes the interest on the RIC receivable using a risk adjusted market interest rate and records it as an adjustment to deferred revenue and as an adjustment to the face amount of the related receivable. The imputed interest income is recognized over the term of the RIC contract as recurring and other revenue on the condensed consolidated statement of operations. When the Company determines that there are RIC receivables that have become uncollectible, the Company records an allowance for credit losses and bad debt expense. The estimate of allowance for credit losses considers a number of factors, including collection experience, aging of the remaining RIC receivable portfolios, credit quality of the subscriber base and other qualitative considerations, including macro-economic factors. Account balances are written-off | |
Deferred Revenue | Deferred Revenue— |
Basis of Presentation and Sig29
Basis of Presentation and Significant Accounting Policies (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | ||
Schedule of Change in Accounting Estimate | The effects of this change in estimate were as follows (in thousands): Year ended Increase in activation fee revenues $ 1,400 Increase in depreciation and amortization 21,413 Increase to loss from operations 20,013 Increase to net loss 19,621 | |
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): Six Months Ended 2017 2016 Beginning balance $ 4,138 $ 3,541 Provision for doubtful accounts 9,726 7,717 Write-offs and adjustments (10,065 ) (8,161 ) Balance at end of period $ 3,799 $ 3,097 | The changes in the Company’s allowance for accounts receivable were as follows for the periods ended (in thousands): Year ended December 31, 2016 2015 2014 Beginning balance $ 3,541 $ 3,373 $ 1,901 Provision for doubtful accounts 19,624 14,924 15,656 Write-offs and adjustments (19,027 ) (14,756 ) (14,184 ) Balance at end of period $ 4,138 $ 3,541 $ 3,373 |
Restructuring and Asset Impai30
Restructuring and Asset Impairment Charges (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | ||
Schedule of Restructuring and Asset Impairment Charges | Restructuring and asset impairment charges and recoveries for the six months ended June 30, 2017 and 2016 were as follows (in thousands): Six Months Ended June 30, 2017 June 30, 2016 Wireless restructuring and asset impairment (recoveries) charges: Recoveries of impaired assets $ — $ (710 ) Contract termination costs — 4 Employee severance and termination benefits charges — 26 Total wireless restructuring and asset impairment recoveries $ — $ (680 ) | Restructuring and asset impairment charges were as follows (in thousands): Year ended 2016 2015 Wireless restructuring and asset (recoveries) impairment charges: Asset (recoveries) impairments $ (710 ) $ 53,228 Contract termination (recoveries) costs (751 ) 4,767 Employee severance and termination benefits (recoveries) charges (77 ) 1,202 Total wireless restructuring and asset (recoveries) impairment charges (1,538 ) 59,197 Loss on subscriber contract sales 2,551 — Total restructuring and asset impairment charges $ 1,013 $ 59,197 |
Summary of Restructuring Activity | The following table presents accrued restructuring activity for the six months ended June 30, 2017 (in thousands): Contract termination costs Accrued restructuring balance as of December 31, 2016 $ 649 Cash payments (46 ) Accrued restructuring balance as of June 30, 2017 $ 603 | The following table presents accrued restructuring activity for the years ended December 31, 2016 and 2015. 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 (53,218 ) (190 ) — (53,408 ) Accrued restructuring balance as of December 31, 2015 — 3,954 321 4,275 Restructuring and impairment recoveries (710 ) (751 ) (77 ) (1,538 ) Cash payments — (2,554 ) (244 ) (2,798 ) Non-cash 710 — — 710 Accrued restructuring balance as of December 31, 2016 $ — $ 649 $ — $ 649 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Wildfire Acquisition | |
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 8) 2,900 Goodwill 504 Total cash consideration $ 3,500 |
Space Monkey Acquisition | |
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 8) 8,300 Goodwill 7,402 Total estimated fair value of the assets acquired and liabilities assumed $ 15,000 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Debt Disclosure [Abstract] | ||
Schedule of Deferred Financing Activity | The following table presents deferred financing cost activity for the six months ended June 30, 2017 (in thousands): Unamortized Deferred Financing Costs Balance Additions Rolled Early Amortized Balance June 30, 2017 Revolving Credit Facility $ 4,420 $ — $ — $ — $ (1,013 ) $ 3,407 2019 Notes 11,693 — (1,476 ) (3,259 ) (1,310 ) 5,648 2020 Notes 15,053 — — — (1,923 ) 13,130 2022 Private Placement Notes 903 — — — (76 ) 827 2022 Notes 11,714 6,077 1,476 — (1,567 ) 17,700 Total Deferred Financing Costs $ 43,783 $ 6,077 $ — $ (3,259 ) $ (5,889 ) $ 40,712 | The following table presents deferred financing activity for the year ended December 31, 2016 (in thousands): Unamortized Deferred Financing Costs Balance Additions Refinances Early Amortized Balance Revolving Credit Facility $ 6,456 $ — $ — $ — $ (2,036 ) $ 4,420 2019 Notes 20,182 — (3,423 ) (585 ) (4,481 ) 11,693 2020 Notes 18,892 — — — (3,839 ) 15,053 2022 Private Placement Notes 1,170 — — (110 ) (157 ) 903 2022 Notes — 9,337 3,423 — (1,046 ) 11,714 Total Deferred Financing Costs $ 46,700 $ 9,337 $ — $ (695 ) $ (11,559 ) $ 43,783 |
Summary of Debt | The Company’s debt at June 30, 2017 and December 31, 2016 consisted of the following (in thousands): June 30, 2017 Outstanding Principal Unamortized Premium Unamortized Net Carrying Amount Series C Revolving Credit Facility Due 2017 $ 7,200 $ — $ — $ 7,200 Series A, B Revolving Credit Facilities Due 2019 92,800 — — 92,800 6.375% Senior Secured Notes due 2019 419,465 — (5,648 ) 413,817 8.75% Senior Notes due 2020 930,000 5,129 (13,130 ) 921,999 8.875% Senior Secured Notes Due 2022 270,000 (2,764 ) (827 ) 266,409 7.875% Senior Secured Notes Due 2022 900,000 26,700 (17,700 ) 909,000 Total Long-Term Debt $ 2,619,465 $ 29,065 $ (37,305 ) $ 2,611,225 December 31, 2016 Outstanding Principal Unamortized Premium Unamortized Net Carrying Amount 6.375% Senior Secured Notes due 2019 $ 719,465 $ — $ (11,693 ) $ 707,772 8.75% Senior Notes due 2020 930,000 5,848 (15,053 ) 920,795 8.875% Senior Secured Notes due 2022 270,000 (2,960 ) (903 ) 266,137 7.875% Senior Secured Notes due 2022 600,000 3,710 (11,714 ) 591,996 Total Long-Term Debt $ 2,519,465 $ 6,598 $ (39,363 ) $ 2,486,700 (1) Unamortized deferred financing costs related to the revolving credit facilities included in deferred financing costs, net on the condensed consolidated balance sheets at June 30, 2017 and December 31, 2016 was $3.4 million and $4.4 million, respectively. | The Company’s debt at December 31, 2016 consisted of the following (in thousands): Outstanding Unamortized Unamortized Net Carrying 6.375% Senior Secured Notes due 2019 $ 719,465 $ — $ (11,693 ) $ 707,772 8.75% Senior Notes due 2020 930,000 5,848 (15,053 ) 920,795 8.875% Senior Secured Notes Due 2022 270,000 (2,960 ) (903 ) 266,137 7.875% Senior Secured Notes Due 2022 600,000 3,710 (11,714 ) 591,996 Total Notes payable $ 2,519,465 $ 6,598 $ (39,363 ) $ 2,486,700 The Company’s debt at December 31, 2015 consisted of the following (in thousands): Outstanding Unamortized Unamortized Net Carrying 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 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Schedule of Company's Balance Sheet Components | The following table presents material balance sheet component balances (in thousands): June 30, December 31, Prepaid expenses and other current assets Prepaid expenses $ 11,680 $ 7,983 Deposits 2,474 1,046 Other 619 1,129 Total prepaid expenses and other current assets $ 14,773 $ 10,158 Subscriber acquisition costs Subscriber acquisition costs $ 1,588,310 $ 1,373,080 Accumulated amortization (418,023 ) (320,646 ) Subscriber acquisition costs, net $ 1,170,287 $ 1,052,434 Accrued payroll and commissions Accrued commissions $ 35,127 $ 22,187 Accrued payroll 19,074 24,101 Total accrued payroll and commissions $ 54,201 $ 46,288 Accrued expenses and other current liabilities Accrued interest payable $ 17,259 $ 16,944 Accrued taxes 10,305 3,376 Current portion of derivative liability 6,785 — Spectrum license obligation 3,712 — Accrued payroll taxes and withholdings 3,547 4,793 Loss contingencies 2,231 2,571 Blackstone monitoring fee, a related party 1,125 1,389 Other 3,475 5,192 Total accrued expenses and other current liabilities $ 48,439 $ 34,265 Deferred revenue Subscriber deferred revenues $ 37,277 $ 34,682 Deferred product revenues 18,819 — Deferred activation fees 10,609 11,040 Total deferred revenue $ 66,705 $ 45,722 Deferred revenue, net of current portion Deferred product revenues $ 98,800 $ 975 Deferred activation fees 55,444 57,759 Total deferred revenue, net of current portion $ 154,244 $ 58,734 | The following table presents material balance sheet component balances as of December 31, 2016 and December 31, 2015 (in thousands): December 31, 2016 2015 Subscriber acquisition costs Subscriber acquisition costs $ 1,373,080 $ 958,261 Accumulated amortization (320,646 ) (167,617 ) Subscriber acquisition costs, net $ 1,052,434 $ 790,644 Accrued payroll and commissions Accrued payroll $ 24,101 $ 18,071 Accrued commissions 22,187 20,176 Total accrued payroll and commissions $ 46,288 $ 38,247 Accrued expenses and other current liabilities Accrued interest payable $ 16,944 $ 17,153 Accrued payroll taxes and withholdings 4,793 3,938 Accrued taxes 3,376 2,683 Wireless restructuring costs 91 4,275 Loss contingencies 2,571 2,504 Other 6,490 5,020 Total accrued expenses and other current liabilities $ 34,265 $ 35,573 |
Property Plant and Equipment (T
Property Plant and Equipment (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | ||
Components of Property and Equipment | Property, plant and equipment consisted of the following (in thousands): June 30, December 31, Estimated Vehicles $ 30,916 $ 31,416 3-5 years Computer equipment and software 39,814 27,006 3-5 years Leasehold improvements 18,095 17,717 2-15 years Office furniture, fixtures and equipment 14,619 13,508 7 years Buildings 702 702 39 years Build-to-suit 8,247 5,004 10.5 years Construction in process 3,397 9,908 Property, plant and equipment, gross 115,790 105,261 Accumulated depreciation and amortization (50,131 ) (41,635 ) Property, plant and equipment, net $ 65,659 $ 63,626 | Property and equipment consisted of the following (in thousands): December 31, Estimated 2016 2015 Vehicles $ 31,416 $ 26,935 3-5 years Computer equipment and software 27,006 21,702 3-5 Leasehold improvements 17,717 17,434 2-15 years Office furniture, fixtures and equipment 13,508 11,776 7 years Buildings 702 702 39 years Construction in process 9,908 3,837 Build-to-suit 5,004 — 105,261 82,386 Accumulated depreciation and amortization (41,635 ) (27,112 ) Property plant and equipment, net $ 63,626 $ 55,274 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
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, 2016 and 2015, were as follows (in thousands): Balance as of January 1, 2015 $ 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 Effect of Foreign Currency Translation 817 Balance as of December 31, 2016 $ 835,233 | |
Schedule of Intangible Asset Balances | The following table presents intangible asset balances (in thousands): June 30, 2017 December 31, 2016 Gross Accumulated Net Gross Accumulated Net Estimated Definite-lived intangible assets: Customer contracts $ 967,702 $ (588,747 ) $ 378,955 $ 965,179 $ (539,910 ) $ 425,269 10 years 2GIG 2.0 technology 17,000 (11,877 ) 5,123 17,000 (10,479 ) 6,521 8 years Other technology 2,917 (1,042 ) 1,875 7,067 (4,984 ) 2,083 5-7 years Space Monkey technology 7,100 (3,167 ) 3,933 7,100 (2,268 ) 4,832 6 years Patents 9,620 (4,766 ) 4,854 8,724 (3,913 ) 4,811 5 years Total definite-lived intangible assets: $ 1,004,339 $ (609,599 ) $ 394,740 $ 1,005,070 $ (561,554 ) $ 443,516 Indefinite-lived intangible assets: Spectrum licenses $ 31,253 $ — $ 31,253 $ 31,253 $ — $ 31,253 IP addresses $ 564 $ — $ 564 $ 564 $ — $ 564 Domain names 59 — 59 59 — 59 Total Indefinite-lived intangible assets 31,876 — 31,876 31,876 — 31,876 Total intangible assets, net $ 1,036,215 $ (609,599 ) $ 426,616 $ 1,036,946 $ (561,554 ) $ 475,392 | The following table presents intangible asset balances as of December 31, 2016 and 2015 (in thousands): December 31, 2016 December 31, 2015 Gross Accumulated Net Gross Accumulated Net Estimated Definite-lived intangible assets: Customer contracts $ 965,179 $ (539,910 ) $ 425,269 $ 962,842 $ (430,803 ) $ 532,039 10 years 2GIG 2.0 technology 17,000 (10,479 ) 6,521 17,000 (7,064 ) 9,936 8 years Other technology 7,067 (4,984 ) 2,083 7,067 (3,438 ) 3,629 5-7 years Space Monkey technology 7,100 (2,268 ) 4,832 7,100 (761 ) 6,339 6 years Patents 8,724 (3,913 ) 4,811 7,524 (2,094 ) 5,430 5 years Non-compete 1,200 (1,200 ) — 1,200 (800 ) 400 2-3 years Total definite-lived intangible assets: 1,006,270 (562,754 ) 443,516 1,002,733 (444,960 ) 557,773 Indefinite-lived intangible assets: Spectrum licenses 31,253 — 31,253 — — — IP addresses 564 — 564 564 — 564 Domain names 59 — 59 58 — 58 Total Indefinite-lived intangible assets 31,876 — 31,876 622 — 622 Total intangible assets, net $ 1,038,146 $ (562,754 ) $ 475,392 $ 1,003,355 $ (444,960 ) $ 558,395 |
Schedule of Estimated Future Amortization Expense of Intangible Assets Excluding Patents Currently in Process | Estimated future amortization expense of intangible assets, excluding approximately $0.2 million in patents currently in process, is as follows as of June 30, 2017 (in thousands): 2017—Remaining Period $ 50,945 2018 90,275 2019 78,452 2020 67,579 2021 58,542 Thereafter 48,726 Total estimated amortization expense $ 394,519 | Estimated future amortization expense of intangible assets, excluding approximately $0.3 million in patents currently in process, is as follows as of December 31, 2016 (in thousands): 2017 $ 101,296 2018 89,736 2019 78,082 2020 67,288 2021 58,288 Thereafter 48,548 Total estimated amortization expense $ 443,238 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Fair Value, by Balance Sheet Grouping | The following tables set forth the Company’s cash and cash equivalents and available-for-sale June 30, 2017 Adjusted Cost Unrealized Unrealized Fair Value Cash and Cash Long-Term Cash $ 1,470 $ — $ — $ 1,470 $ 1,470 $ — Level 1: Corporate securities 4,018 193 — 4,211 — 4,211 Subtotal 4,018 193 — 4,211 — 4,211 Total $ 5,488 $ 193 $ — $ 5,681 $ 1,470 $ 4,211 December 31, 2016 Adjusted Cost Unrealized Unrealized Fair Value Cash and Cash Long-Term Cash $ 1,191 $ — $ — $ 1,191 $ 1,191 $ — Level 1: Money market funds 42,329 — — 42,329 42,329 — Corporate securities 3,007 1,011 — 4,018 — 4,018 Subtotal 45,336 1,011 — 46,347 42,329 4,018 Total $ 46,527 $ 1,011 $ — $ 47,538 $ 43,520 $ 4,018 | The following tables show the Company’s cash and cash equivalents and available-for-sale Adjusted Cost Unrealized Unrealized Fair Value Cash and Cash Long-Term Cash $ 1,191 $ — $ — $ 1,191 $ 1,191 $ — Level 1: Money market funds 42,329 — — 42,329 42,329 — Corporate securities 3,007 1,011 — 4,018 — 4,018 Subtotal 45,336 1,011 — 46,347 42,329 4,018 Total $ 46,527 $ 1,011 $ — $ 47,538 $ 43,520 $ 4,018 |
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 are as follows (in thousands, except interest rates): June 30, 2017 December 31, 2016 Stated Interest Issuance Face Value Estimated Fair Value Face Value Estimated Fair Value 2019 Notes $ 419,465 $ 431,462 $ 719,465 $ 743,783 6.375 % 2020 Notes 930,000 962,550 930,000 946,275 8.75 % 2022 Private Placement Notes 270,000 279,297 270,000 280,372 8.875 % 2022 Notes 900,000 978,750 600,000 655,140 7.875 % Total $ 2,519,465 $ 2,652,059 $ 2,519,465 $ 2,625,570 | Components of long-term debt including the associated interest rates and related fair values (in thousands, except interest rates) are as follows: December 31, 2016 December 31, 2015 Stated Interest Issuance Face Value Estimated Fair Value Face Value Estimated Fair Value 2019 Notes $ 719,465 $ 743,783 $ 925,000 $ 879,906 6.375 % 2020 Notes 930,000 946,275 930,000 756,788 8.75 % 2022 Notes Private Placement Notes 270,000 280,372 300,000 296,296 8.875 % 2022 Notes 600,000 655,140 — — 7.875 % Total $ 2,519,465 $ 2,625,570 $ 2,155,000 $ 1,932,990 |
Level 2 | ||
Schedule of Derivative Liabilities at Fair Value | The following table summarizes the fair value, measured using Level 2 fair value inputs, and the notional amount of the Company’s outstanding derivative instrument as of June 30, 2017 (in thousands): June 30, 2017 Fair Value Notional Consumer Financing Program Contractual Obligations $ 16,092 $ 68,076 Classified on the condensed consolidated unaudited balance sheets as: Accrued expenses and other current liabilities 6,785 Other long-term obligations 9,307 Total Consumer Financing Program Contractual Obligation $ 16,092 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Provision | Income tax provision consisted of the following (in thousands): Year ended December 31, 2016 2015 2014 Current income tax: Federal $ — $ — $ — State 545 392 779 Foreign 95 (1 ) — Total 640 391 779 Deferred income tax: Federal — — (925 ) State — — (181 ) Foreign (573 ) (40 ) 841 Total (573 ) (40 ) (265 ) Provision for income taxes $ 67 $ 351 $ 514 |
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, 2016 2015 2014 Computed expected tax expense $ (93,770 ) $ (94,737 ) $ (81,107 ) State income taxes, net of federal tax effect 360 259 395 Foreign income taxes (949 ) 202 1,645 Other reconciling items 666 — — Permanent differences 1,688 1,980 2,261 Change in valuation allowance 92,072 92,647 77,320 Provision for income taxes $ 67 $ 351 $ 514 |
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, 2016 2015 Gross deferred tax assets: Net operating loss carryforwards $ 799,302 $ 642,391 Deferred subscriber income 19,866 13,722 Accrued expenses and allowances 15,452 15,415 Purchased intangibles 14,776 10,576 Inventory reserves 6,999 9,333 Property and Equipment 3,482 3,257 Alternative minimum tax credit and research and development credit 41 41 Valuation allowance (328,991 ) (234,771 ) 530,927 459,964 Gross deferred tax liabilities: Deferred subscriber acquisition costs (537,387 ) (466,783 ) Property and equipment — — Prepaid expenses (744 ) (705 ) (538,131 ) (467,488 ) Net deferred tax liabilities $ (7,204 ) $ (7,524 ) |
Summary of Net Operating Loss Carryforwards | The Company had net operating loss carryforwards as follows (in thousands): December 31, 2016 2015 Net operating loss carryforwards: United States $ 2,084,897 $ 1,695,386 State 1,553,812 1,338,742 Canada 33,526 28,629 New Zealand — 5,518 |
Stock-Based Compensation and 38
Stock-Based Compensation and Equity (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Summary of Incentive Unit Activity | A summary of the Incentive Unit activity for the years ended December 31, 2016 and 2015 is presented below: Incentive Units Weighted Average Weighted Average Aggregate 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 Granted 12,825,000 1.93 Forfeited (905,000 ) 1.09 Exercised — — Outstanding, December 31, 2016 85,882,836 1.19 6.81 — Unvested shares expected to vest after December 31, 2016 66,186,360 1.23 6.99 — Exercisable at December 31, 2016 19,696,476 $ 1.03 6.21 $ — | |
Stock-Based Compensation Expense | Stock-based compensation expense in connection with all stock-based awards is presented as follows (in thousands): Six Months 2017 2016 Operating expenses $ 40 $ 31 Selling expenses 110 (239 ) General and administrative expenses 736 3,038 Total stock-based compensation $ 886 $ 2,830 | Stock-based compensation expense in connection with all stock-based awards for the years ended December 31, 2016, 2015 and 2014 is allocated as follows (in thousands): Year ended December 31, 2016 2015 2014 Operating expenses $ 68 $ 71 $ 63 Selling expenses (127 ) 578 185 General and administrative expenses 3,927 2,472 1,688 Total stock-based compensation $ 3,868 $ 3,121 $ 1,936 |
Vivint Stock Appreciation Rights | ||
Summary of the SAR Activity | A summary of the SAR activity for the years ended December 31, 2016 and 2015 is presented below: Stock Appreciation Weighted Average Weighted Average Aggregate 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 Granted 5,649,573 1.22 Forfeited (2,320,552 ) 0.92 Exercised — — Outstanding, December 31, 2016 21,993,158 0.96 8.23 — Unvested shares expected to vest after December 31, 2016 19,334,407 0.98 8.37 — Exercisable at December 31, 2016 2,658,751 $ 0.78 7.20 $ — | |
Wireless Stock Appreciation Rights | ||
Summary of the SAR Activity | A summary of the SAR activity for the year ended December 31, 2016 and 2015 is presented below: Stock Appreciation Weighted Average Weighted Average Aggregate 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 — Granted — — Forfeited (63,500 ) 15.54 Exercised — — Outstanding, December 31, 2016 17,500 5.00 6.41 — Unvested shares expected to vest after December 31, 2016 7,000 5.00 6.41 — Exercisable, December 31, 2016 10,500 $ 5.00 6.41 — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating Leases of Lessee Disclosure | The Company’s operating lease arrangements and related terms consisted of the following (in thousands): Rent Expense For the six months ended, June 30, June 30, Lease Term Arrangement Warehouse, office space and other $ 5,885 $ 5,593 11-15 years Wireless towers and spectrum 2,344 2,367 1-10 years Total Rent Expense $ 8,229 $ 7,960 | The Company’s operating lease arrangements and related terms consisted of the following (in thousands): Rent Expense 2016 2015 Lease Term Warehouse, office space and other $ 11,222 $ 11,632 1-15 years Wireless towers, spectrum and other 4,732 3,509 1-10 Total Rent Expense $ 15,954 $ 15,141 |
Future Minimum Lease Payments | As of December 31, 2016, future minimum lease payments were as follows (in thousands): Operating Capital Total 2017 $ 17,452 $ 10,513 $ 27,965 2018 15,322 6,117 21,439 2019 14,998 2,049 17,047 2020 13,521 17 13,538 2021 13,086 — 13,086 Thereafter 47,634 — 47,634 Amounts representing interest — (963 ) (963 ) Total lease payments $ 122,013 $ 17,733 $ 139,746 |
Segment Reporting and Busines40
Segment Reporting and Business Concentrations (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Segment Reporting [Abstract] | ||
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 Revenue from external customers Six months ended June 30, 2017 386,765 30,714 417,479 Six months ended June 30, 2016 328,181 26,879 355,060 Property, plant and equipment, net As of June 30, 2017 $ 64,821 $ 838 $ 65,659 As of December 31, 2016 62,781 845 63,626 | 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, 2016 Revenue from external customers $ 700,471 $ 57,436 $ 757,907 Property and equipment, net 62,781 845 63,626 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 |
Gurantor and non-gurantor sup41
Gurantor and non-gurantor supplemental financial information (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Condensed Consolidating Balance Sheet | Parent APX Group, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets $ — $ 4,454 $ 232,076 $ 24,318 $ (105,914 ) $ 154,934 Property, plant and equipment, net — — 64,820 839 — 65,659 Subscriber acquisition costs, net — — 1,084,164 86,123 — 1,170,287 Deferred financing costs, net — 3,407 — — — 3,407 Investment in subsidiaries — 2,210,678 — — (2,210,678 ) — Intercompany receivable — — 6,303 — (6,303 ) — Intangible assets, net — — 397,007 29,609 — 426,616 Goodwill — — 809,678 26,437 — 836,115 Long-term investments and other assets — 106 53,603 5,350 (106 ) 58,953 Total Assets $ — $ 2,218,645 $ 2,647,651 $ 172,676 $ (2,323,001 ) $ 2,715,971 Liabilities and Stockholders’ (Deficit) Equity Current liabilities $ — $ 17,269 $ 277,575 $ 100,090 $ (105,914 ) $ 289,020 Intercompany payable — — — 6,303 (6,303 ) — Notes payable and revolving credit facility, net of current portion — 2,611,225 — — — 2,611,225 Capital lease obligations, net of current portion — — 4,488 461 — 4,949 Deferred revenue, net of current portion — — 144,026 10,218 — 154,244 Other long-term obligations — — 58,930 — — 58,930 Accumulated losses of investee 409,849 (409,849 ) — Deferred income tax liability — — 106 7,452 (106 ) 7,452 Total (deficit) equity (409,849 ) (409,849 ) 2,162,526 48,152 (1,800,829 ) (409,849 ) Total liabilities and stockholders’ (deficit) equity $ — $ 2,218,645 $ 2,647,651 $ 172,676 $ (2,323,001 ) $ 2,715,971 Supplemental Condensed Consolidating Balance Sheet December 31, 2016 (In thousands) Parent APX Group, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets $ — $ 25,136 $ 143,954 $ 3,730 $ (67,799 ) $ 105,021 Property, plant and equipment, net — — 62,781 845 — 63,626 Subscriber acquisition costs, net — — 974,975 77,459 — 1,052,434 Deferred financing costs, net — 4,420 — — — 4,420 Investment in subsidiaries — 2,228,903 — — (2,228,903 ) — Intercompany receivable — — 9,492 — (9,492 ) — Intangible assets, net — — 443,189 32,203 — 475,392 Goodwill — — 809,678 25,555 — 835,233 Long-term investments and other assets — 106 11,523 13 (106 ) 11,536 Total Assets $ — $ 2,258,565 $ 2,455,592 $ 139,805 $ (2,306,300 ) $ 2,547,662 Liabilities and Stockholders’ (Deficit) Equity Current liabilities $ — $ 17,047 $ 160,956 $ 74,987 $ (67,799 ) $ 185,191 Intercompany payable — — — 9,492 (9,492 ) — Notes payable and revolving credit facility, net of current portion — 2,486,700 — — — 2,486,700 Capital lease obligations, net of current portion — — 7,368 567 — 7,935 Deferred revenue, net of current portion — — 53,991 4,743 — 58,734 Accumulated Losses of Investee 245,182 (245,182 ) — Other long-term obligations — — 47,080 — — 47,080 Deferred income tax liability — — 106 7,204 (106 ) 7,204 Total (deficit) equity (245,182 ) (245,182 ) 2,186,091 42,812 (1,983,721 ) (245,182 ) Total liabilities and stockholders’ (deficit) equity $ — $ 2,258,565 $ 2,455,592 $ 139,805 $ (2,306,300 ) $ 2,547,662 | Condensed Consolidating Balance Sheet December 31, 2016 (In thousands) Parent APX Guarantor Non-Guarantor Eliminations Consolidated Assets Current assets $ — $ 25,136 $ 143,954 $ 3,730 $ (67,799 ) $ 105,021 Property and equipment, net — — 62,781 845 — 63,626 Subscriber acquisition costs, net — — 974,975 77,459 — 1,052,434 Deferred financing costs, net — 4,420 — — — 4,420 Investment in subsidiaries — 2,228,903 — — (2,228,903 ) — Intercompany receivable — — 9,492 — (9,492 ) — Intangible assets, net — — 443,189 32,203 — 475,392 Goodwill — — 809,678 25,555 — 835,233 Long-term investments and other assets — 106 11,523 13 (106 ) 11,536 Total Assets $ — $ 2,258,565 $ 2,455,592 $ 139,805 $ (2,306,300 ) $ 2,547,662 Liabilities and Stockholders’ (Deficit) Equity Current liabilities $ — $ 17,047 $ 160,956 $ 74,987 $ (67,799 ) $ 185,191 Intercompany payable — — — 9,492 (9,492 ) — Notes payable and revolving line of credit, net of current portion — 2,486,700 — — — 2,486,700 Capital lease obligations, net of current portion — — 7,368 567 — 7,935 Deferred revenue, net of current portion — — 53,991 4,743 — 58,734 Accumulated losses of investee 245,182 (245,182 ) — Other long-term obligations — — 47,080 — — 47,080 Deferred income tax liability — — 106 7,204 (106 ) 7,204 Total (deficit) equity (245,182 ) (245,182 ) 2,186,091 42,812 (1,983,721 ) (245,182 ) Total liabilities and stockholders’ (deficit) equity $ — $ 2,258,565 $ 2,455,592 $ 139,805 $ (2,306,300 ) $ 2,547,662 Condensed Consolidating Balance Sheet December 31, 2015 (In thousands) Parent APX 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’ (Deficit) 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 (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 Statements of Operations and Comprehensive Loss | Parent APX Group, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ — $ 395,515 $ 23,315 $ (1,351 ) $ 417,479 Costs and expenses — — 445,668 20,152 (1,351 ) 464,469 (Loss) income from operations — — (50,153 ) 3,163 — (46,990 ) Loss from subsidiaries (166,873 ) (47,496 ) — — 214,369 — Other expense (income), net — 119,377 1,741 (2,386 ) — 118,732 (Loss) income before income tax expenses (166,873 ) (166,873 ) (51,894 ) 5,549 214,369 (165,722 ) Income tax (benefit) expense — — (269 ) 1,420 — 1,151 Net (loss) income $ (166,873 ) $ (166,873 ) $ (51,625 ) $ 4,129 $ 214,369 $ (166,873 ) Other comprehensive (loss) income, net of tax effects: Net (loss) income $ (166,873 ) $ (166,873 ) $ (51,625 ) $ 4,129 $ 214,369 $ (166,873 ) Foreign currency translation adjustment — 1,576 — 1,576 (1,576 ) 1,576 Unrealized gain on marketable securities — (258 ) (258 ) — 258 (258 ) Total other comprehensive income (loss) — 1,318 (258 ) 1,576 (1,318 ) 1,318 Comprehensive (loss) income $ (166,873 ) $ (165,555 ) $ (51,883 ) $ 5,705 $ 213,051 $ (165,555 ) Parent APX Group, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ — $ 337,256 $ 19,155 $ (1,351 ) $ 355,060 Costs and expenses — — 373,319 19,640 (1,351 ) 391,608 Loss from operations — — (36,063 ) (485 ) — (36,548 ) Loss from subsidiaries (134,815 ) (32,494 ) — — 167,309 — Other expense (income), net — 102,321 (1,428 ) (3,298 ) — 97,595 (Loss) income before income tax expenses (134,815 ) (134,815 ) (34,635 ) 2,813 167,309 (134,143 ) Income tax expense — — 185 487 — 672 Net (loss) income $ (134,815 ) $ (134,815 ) $ (34,820 ) $ 2,326 $ 167,309 $ (134,815 ) Other comprehensive loss, net of tax effects: Net (loss) income $ (134,815 ) $ (134,815 ) $ (34,820 ) $ 2,326 $ 167,309 $ (134,815 ) Foreign currency translation adjustment — 2,801 — 2,801 (2,801 ) 2,801 Total other comprehensive income — 2,801 — 2,801 (2,801 ) 2,801 Comprehensive (loss) income $ (134,815 ) $ (132,014 ) $ (34,820 ) $ 5,127 $ 164,508 $ (132,014 ) | Condensed Consolidating Statements of Operations and Comprehensive Loss For the Year ended December 31, 2016 (In thousands) Parent APX Guarantor Non-Guarantor Eliminations Consolidated Revenues $ — $ — $ 715,072 $ 45,539 $ (2,704 ) $ 757,907 Costs and expenses — — 787,138 44,575 (2,704 ) 829,009 (Loss) income from operations — — (72,066 ) 964 — (71,102 ) Loss from subsidiaries (275,957 ) (69,637 ) — — 345,594 — Other expense (income), net — 206,320 (1,207 ) (325 ) — 204,788 (Loss) income before income tax expenses (275,957 ) (275,957 ) (70,859 ) 1,289 345,594 (275,890 ) Income tax expense (benefit) — — 545 (478 ) — 67 Net (loss) income $ (275,957 ) $ (275,957 ) $ (71,404 ) $ 1,767 $ 345,594 $ (275,957 ) Other comprehensive (loss) income, net of tax effects: Foreign currency translation adjustment — 2,482 — 2,482 (2,482 ) 2,482 Unrealized gain on marketable securities — 1,011 1,011 — (1,011 ) 1,011 Comprehensive (loss) income $ (275,957 ) $ (272,464 ) $ (70,393 ) $ 4,249 $ 342,101 $ (272,464 ) 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, 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) income, net of tax effects: Foreign currency translation adjustment — (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) income from operations — — (92,236 ) (1,633 ) — (93,869 ) (Loss) income from subsidiaries (238,660 ) (93,850 ) — — 332,510 — Other expense (income), net — 145,917 (1,676 ) 36 — 144,277 Loss from operations before income tax expense (238,660 ) (239,767 ) (90,560 ) (1,669 ) 332,510 (238,146 ) Income tax (benefit) expense — (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: Foreign currency translation adjustment — (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 Cash Flows | Parent APX Group, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net cash (used in) provided by operating activities $ — $ — $ (136,796 ) $ 3,535 $ — $ (133,261 ) Cash flows from investing activities: Capital expenditures — — (11,435 ) — — (11,435 ) Proceeds from sale of assets — — 319 — — 319 Investment in subsidiary — (129,560 ) — — 129,560 — Acquisition of intangible assets — — (743 ) — — (743 ) Acquisition of other assets — — (143 ) — — (143 ) Net cash used in investing activities — (129,560 ) (12,002 ) — 129,560 (12,002 ) Cash flows from financing activities: Proceeds from notes payable — 324,750 — — — 324,750 Repayment on notes payable — (300,000 ) — — — (300,000 ) Borrowings from revolving credit facility — 113,000 — — — 113,000 Repayments on revolving credit facility — (13,000 ) — — — (13,000 ) Intercompany receivable — — 3,189 — (3,189 ) — Intercompany payable — — 129,560 (3,189 ) (126,371 ) — Repayments of capital lease obligations — — (4,549 ) (163 ) — (4,712 ) Payments of other long-term obligations — — (1,164 ) — — (1,164 ) Financing costs — (9,460 ) — — — (9,460 ) Deferred financing costs — (6,191 ) — — — (6,191 ) Net cash provided by (used in) financing activities — 109,099 127,036 (3,352 ) (129,560 ) 103,223 Effect of exchange rate changes on cash — — — (10 ) — (10 ) Net increase (decrease) in cash and cash equivalents — (20,461 ) (21,762 ) 173 — (42,050 ) Cash and cash equivalents: Beginning of period — 24,680 18,186 654 — 43,520 End of period $ — $ 4,219 $ (3,576 ) $ 827 $ — $ 1,470 Parent APX Group, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net cash (used in) provided by operating activities $ — $ — $ (176,661 ) $ 5,088 $ — $ (171,573 ) Cash flows from investing activities: Subscriber acquisition costs—company owned equipment — — (1,791 ) — — (1,791 ) Capital expenditures — — (4,526 ) — — (4,526 ) Investment in subsidiary (69,800 ) (187,004 ) — — 256,804 — Acquisition of intangible assets — — (505 ) — — (505 ) Proceeds from sale of assets — — 1,925 — — 1,925 Net cash used in investing activities (69,800 ) (187,004 ) (4,897 ) — 256,804 (4,897 ) Cash flows from financing activities: Proceeds from notes payable — 500,000 — — — 500,000 Repayment on notes payable — (235,535 ) — — — (235,535 ) Borrowings from revolving credit facility — 57,000 — — — 57,000 Repayments on revolving credit facility — (77,000 ) — — — (77,000 ) Intercompany receivable — — 6,621 — (6,621 ) — Intercompany payable — — 187,004 (6,621 ) (180,383 ) — Proceeds from capital contributions 69,800 69,800 — — (69,800 ) 69,800 Repayments of capital lease obligations — — (3,955 ) (1 ) — (3,956 ) Financing costs — (8,274 ) — — — (8,274 ) Deferred financing costs — (6,277 ) — — — (6,277 ) Net cash provided by (used in) financing activities 69,800 299,714 189,670 (6,622 ) (256,804 ) 295,758 Effect of exchange rate changes on cash — — — (441 ) — (441 ) Net increase (decrease) in cash and cash equivalents — 112,710 8,112 (1,975 ) — 118,847 Cash and cash equivalents: Beginning of period — 2,299 (1,941 ) 2,201 — 2,559 End of period $ — $ 115,009 $ 6,171 $ 226 $ — $ 121,406 | Condensed Consolidating Statements of Cash Flows For the Year ended December 31, 2016 (In thousands) Parent APX Guarantor Non-Guarantor Eliminations Consolidated Cash flows from operating activities: Net cash (used in) provided by operating activities $ — $ — $ (380,508 ) $ 14,802 $ — $ (365,706 ) Cash flows from investing activities: Subscriber acquisition costs—company owned equipment — — (5,243 ) — — (5,243 ) Capital expenditures — — (11,642 ) — — (11,642 ) Proceeds from sale of capital assets — — 3,080 43 — 3,123 Investment in subsidiary (100,407 ) (408,214 ) — — 508,621 — Acquisition of intangible assets — — (1,385 ) — — (1,385 ) Net cash (used in) provided by investing activities (100,407 ) (408,214 ) (15,190 ) 43 508,621 (15,147 ) Cash flows from financing activities: Proceeds from notes payable — 604,000 — — — 604,000 Repayment on notes payable — (235,535 ) — — — (235,535 ) Borrowings from revolving line of credit — 57,000 — — — 57,000 Repayment of revolving line of credit — (77,000 ) — — — $ (77,000 ) Proceeds from capital contribution 100,407 100,407 — — (100,407 ) 100,407 Payment of intercompany settlement — — 3,000 (3,000 ) — — Intercompany receivable — — 12,906 — (12,906 ) — Intercompany payable — — 408,214 (12,906 ) (395,308 ) — Repayments of capital lease obligations — — (8,295 ) (20 ) — (8,315 ) Financing costs — (9,036 ) — — — (9,036 ) Deferred financing costs — (9,241 ) — — — (9,241 ) Net cash provided by (used in) provided by financing activities 100,407 430,595 415,825 (15,926 ) (508,621 ) 422,280 Effect of exchange rate changes on cash — — — (466 ) — (466 ) Net increase (decrease) in cash — 22,381 20,127 (1,547 ) — 40,961 Cash: Beginning of period — 2,299 (1,941 ) 2,201 — 2,559 End of period $ — $ 24,680 $ 18,186 $ 654 $ — $ 43,520 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) provided by 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 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 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 ) — Repayments of capital lease obligations — — (6,402 ) (12 ) — (6,414 ) Deferred financing costs — (5,436 ) — — — (5,436 ) 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 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 Proceeds from capital contribution 32,300 32,300 — — (32,300 ) 32,300 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 ) 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 (decrease) 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 |
Retail Installment Contract R42
Retail Installment Contract Receivables (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Schedule of Installment Receivables | The following table summarizes the installment receivables (in thousands): June 30, 2017 RIC receivables, gross $ 80,608 Deferred interest (24,889 ) RIC receivables, net of deferred interest 55,719 Classified on the condensed consolidated unaudited balance sheets as: Accounts and notes receivable, net $ 8,478 Long-term investments and other assets, net 47,241 RIC receivables, net $ 55,719 |
Allowance for Credit Losses on Financing Receivables | Activity in the deferred interest for the RIC receivables was as follows (in thousands): Six months ended Deferred interest, beginning of period $ — Bad debt expense — Write-offs, net of recoveries (234 ) Change in deferred interest on short-term and long-term RIC receivables 25,123 Deferred interest, end of period $ 24,889 |
Basis of Presentation and Sig43
Basis of Presentation and Significant Accounting Policies - Additional Information (Detail) | Jan. 03, 2017 | Nov. 24, 2014USD ($) | Mar. 31, 2014USD ($) | Apr. 30, 2013 | Jun. 30, 2017USD ($)Payment | Jun. 30, 2016USD ($) | Mar. 31, 2016 | Jun. 30, 2017USD ($)Payment | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||||||||||
Out-of-period adjustments | $ 2,000,000 | |||||||||||||
Recurring revenues increased | $ 399,641,000 | $ 339,918,000 | $ 724,478,000 | 624,989,000 | $ 537,695,000 | |||||||||
Amortization duration of costs period | 12 years | |||||||||||||
Amortization percentage on subscriber contract costs over estimated useful life | 150.00% | |||||||||||||
Period after declining balance method converts to straight-line | 5 years | |||||||||||||
Allowance for doubtful accounts | $ 3,799,000 | $ 3,097,000 | 3,799,000 | 3,097,000 | $ 4,138,000 | 4,138,000 | 3,541,000 | 3,373,000 | $ 1,901,000 | |||||
Cost method investments | 600,000 | 600,000 | 400,000 | 400,000 | 3,500,000 | |||||||||
Available-for-sale securities, noncurrent | 4,000,000 | 4,000,000 | 0 | |||||||||||
Deferred financing costs | 40,712,000 | 40,712,000 | 43,783,000 | 43,783,000 | 46,700,000 | |||||||||
Amortization expenses included in interest expense | 3,644,000 | 5,243,000 | 10,447,000 | 9,844,000 | 9,251,000 | |||||||||
Sales commission included in accrued expenses and other liabilities | 1,600,000 | 1,600,000 | 1,200,000 | 1,200,000 | 800,000 | |||||||||
Other long-term obligations | 9,000,000 | 9,000,000 | 6,600,000 | 6,600,000 | 4,300,000 | |||||||||
Advertising expenses incurred | $ 21,100,000 | 17,000,000 | $ 33,000,000 | 25,100,000 | 23,600,000 | |||||||||
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 gains (losses) | $ 2,500,000 | 4,900,000 | $ 2,100,000 | (9,400,000) | 0 | |||||||||
Issued and unused letters of credit | 8,700,000 | 8,700,000 | 5,700,000 | 5,700,000 | 5,000,000 | |||||||||
Accounts and notes receivable, net | 17,700,000 | 17,700,000 | 12,900,000 | 12,900,000 | ||||||||||
Provision for doubtful accounts | 9,700,000 | $ 7,700,000 | 9,726,000 | 7,717,000 | 19,624,000 | 14,924,000 | 15,656,000 | |||||||
Available for sale securities, fair value | 5,681,000 | 5,681,000 | 47,538,000 | 47,538,000 | ||||||||||
Effective income tax rate reconciliation, share-based compensation, excess tax benefit, amount | 0 | |||||||||||||
Interest Expense | ||||||||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||||||||||
Amortization expenses included in interest expense | $ 5,900,000 | $ 5,600,000 | $ 11,600,000 | 10,900,000 | $ 10,100,000 | |||||||||
Minimum | ||||||||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||||||||||
Estimated useful life of intangible assets | 5 years | 2 years | ||||||||||||
Maximum | ||||||||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||||||||||
Estimated useful life of intangible assets | 10 years | 10 years | ||||||||||||
New Accounting Pronouncement, Early Adoption, Effect | ||||||||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||||||||||
Deferred financing costs | (40,200,000) | |||||||||||||
Notes Payable | ||||||||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||||||||||
Deferred financing costs | 37,300,000 | $ 37,300,000 | 39,400,000 | $ 39,400,000 | 40,200,000 | |||||||||
Deferred financing cost, accumulated amortization | 40,400,000 | 40,400,000 | 35,600,000 | 35,600,000 | 26,100,000 | |||||||||
Notes Payable | New Accounting Pronouncement, Early Adoption, Effect | ||||||||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||||||||||
Deferred financing costs | (40,200,000) | |||||||||||||
Line of Credit | Revolving Credit Facility | ||||||||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||||||||||
Deferred financing costs | 3,407,000 | 3,407,000 | 4,420,000 | 4,420,000 | 6,456,000 | |||||||||
Deferred financing cost, accumulated amortization | 7,900,000 | 7,900,000 | 6,900,000 | 6,900,000 | 4,800,000 | |||||||||
Corporate securities | ||||||||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||||||||||
Available for sale securities, fair value | $ 4,211,000 | $ 4,211,000 | $ 4,018,000 | 4,018,000 | ||||||||||
Estimated Life Of Subscriber Relationships | ||||||||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||||||||||
Amortization duration of costs period | 15 years | 15 years | ||||||||||||
Amortization percentage on subscriber contract costs over estimated useful life | 240.00% | 240.00% | ||||||||||||
Period after declining balance method converts to straight-line | 9 years | 9 years | ||||||||||||
Increase in activation fee revenues | 1,400,000 | |||||||||||||
Increase in depreciation and amortization | 21,413,000 | |||||||||||||
Increase to loss from operations | 20,013,000 | |||||||||||||
Increase to net loss | $ 19,621,000 | |||||||||||||
Vivint Sky Control Panels | ||||||||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||||||||||
Percentage of installed panels | 65.00% | 57.00% | ||||||||||||
2GIG Sale | ||||||||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||||||||||
Percentage of installed panels | 34.00% | 40.00% | ||||||||||||
Supply agreement period | 5 years | 5 years | ||||||||||||
Out-of-Period Adjustment | ||||||||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||||||||||
Recurring revenues increased | $ 2,000,000 | |||||||||||||
Vivint Flex Pay | ||||||||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||||||||||
Amortization duration of costs period | 15 years | |||||||||||||
Amortization percentage on subscriber contract costs over estimated useful life | 240.00% | |||||||||||||
Period after declining balance method converts to straight-line | 9 years | |||||||||||||
Number of payment options | Payment | 3 | 3 | ||||||||||||
Installment loans available to qualified customers, maximum amount provided by third party | $ 4,000 | $ 4,000 | ||||||||||||
Vivint Flex Pay | Minimum | ||||||||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||||||||||
Installment loans available to qualified customers, term | 42 months | 42 months | ||||||||||||
Vivint Flex Pay | Maximum | ||||||||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||||||||||
Installment loans available to qualified customers, term | 60 months | 60 months |
Basis of Presentation and Sig44
Basis of Presentation and Significant Accounting Policies - Accounts Receivable (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | |||||||
Accounts receivable classified as held for sale | $ 0 | $ 0 | $ 0 | $ 0 | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||||||
Beginning balance | 4,138,000 | $ 3,541,000 | 3,541,000 | 3,373,000 | $ 1,901,000 | ||
Provision for doubtful accounts | 9,700,000 | $ 7,700,000 | 9,726,000 | 7,717,000 | 19,624,000 | 14,924,000 | 15,656,000 |
Write-offs and adjustments | (10,065,000) | (8,161,000) | (19,027,000) | (14,756,000) | (14,184,000) | ||
Balance at end of period | $ 3,799,000 | $ 3,097,000 | $ 3,799,000 | $ 3,097,000 | $ 4,138,000 | $ 3,541,000 | $ 3,373,000 |
Restructuring and Asset Impai45
Restructuring and Asset Impairment Charges - Schedule of Charges (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||||
Amortization of subscriber acquisition costs | $ 96,383 | $ 65,975 | $ 154,877 | $ 92,994 | $ 58,730 |
Restructuring, settlement and impairment provisions | 0 | (680) | 1,013 | 59,197 | $ 0 |
Wireless Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring, settlement and impairment provisions | 0 | (680) | (1,538) | 59,197 | |
Wireless Restructuring | Recoveries of impaired assets | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring, settlement and impairment provisions | 0 | (710) | (710) | 53,228 | |
Wireless Restructuring | Contract termination costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring, settlement and impairment provisions | 0 | 4 | (751) | 4,767 | |
Wireless Restructuring | Employee severance and termination benefits | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring, settlement and impairment provisions | $ 0 | $ 26 | (77) | 1,202 | |
Subscriber Contracts | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring, settlement and impairment provisions | 2,551 | $ 0 | |||
New Zealand And Puerto Rico | Subscriber Contracts | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Amortization of subscriber acquisition costs | 7,600 | ||||
Loss on translation adjustment | 1,100 | ||||
Proceeds from sale of subscriber contracts | $ 6,200 |
Restructuring and Asset Impai46
Restructuring and Asset Impairment Charges - Summary of Restructuring Activity (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Reserve [Roll Forward] | |||
Accrued restructuring, beginning balance | $ 649 | $ 4,275 | $ 0 |
Restructuring and impairment charges | (1,538) | 59,197 | |
Cash payments | (2,798) | (1,514) | |
Non-cash settlements | 710 | (53,408) | |
Accrued restructuring, ending balance | 649 | 4,275 | |
Asset impairments | |||
Restructuring Reserve [Roll Forward] | |||
Accrued restructuring, beginning balance | 0 | 0 | 0 |
Restructuring and impairment charges | (710) | 53,228 | |
Cash payments | 0 | (10) | |
Non-cash settlements | 710 | (53,218) | |
Accrued restructuring, ending balance | 0 | 0 | |
Contract termination costs | |||
Restructuring Reserve [Roll Forward] | |||
Accrued restructuring, beginning balance | 649 | 3,954 | 0 |
Restructuring and impairment charges | (751) | 4,767 | |
Cash payments | (46) | (2,554) | (623) |
Non-cash settlements | 0 | (190) | |
Accrued restructuring, ending balance | 603 | 649 | 3,954 |
Employee severance and termination benefits | |||
Restructuring Reserve [Roll Forward] | |||
Accrued restructuring, beginning balance | $ 0 | 321 | 0 |
Restructuring and impairment charges | (77) | 1,202 | |
Cash payments | (244) | (881) | |
Non-cash settlements | 0 | 0 | |
Accrued restructuring, ending balance | $ 0 | $ 321 |
Restructuring and Asset Impai47
Restructuring and Asset Impairment Charges - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||
Non-cash asset impairment charge | $ 53,200 | |
Wireless restructuring costs | 4,275 | $ 91 |
Restructuring reserve, noncurrent | $ 600 | |
Employee severance and termination benefits | ||
Restructuring Cost and Reserve [Line Items] | ||
Cash-based restructuring charges | $ 6,000 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) - USD ($) | Aug. 25, 2014 | Jan. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||||
Cash consideration paid | $ 0 | $ 0 | $ 2,277,000 | ||
Space Monkey Acquisition | Subsidiaries | |||||
Business Acquisition [Line Items] | |||||
Cash consideration paid | $ 15,000,000 | ||||
Escrow for indemnification obligations | $ 1,500,000 | ||||
Business combination acquisition costs | 0 | 0 | |||
Wildfire Acquisition | Subsidiaries | |||||
Business Acquisition [Line Items] | |||||
Cash consideration paid | $ 3,500,000 | ||||
Escrow for indemnification obligations | $ 400,000 | ||||
Business combination acquisition costs | $ 0 | $ 0 |
Business Combination - Summary
Business Combination - Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Aug. 25, 2014 | Jan. 31, 2014 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 836,115 | $ 835,233 | $ 834,416 | $ 841,522 | ||
Space Monkey Acquisition | Subsidiaries | ||||||
Business Acquisition [Line Items] | ||||||
Net assets acquired | $ 404 | |||||
Deferred 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 | Subsidiaries | ||||||
Business Acquisition [Line Items] | ||||||
Net assets acquired | $ 96 | |||||
Intangible assets | 2,900 | |||||
Goodwill | 504 | |||||
Total cash consideration | $ 3,500 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) | Feb. 01, 2017USD ($) | Oct. 19, 2015USD ($) | Jul. 01, 2014USD ($) | Dec. 13, 2013USD ($) | May 31, 2013USD ($) | Nov. 16, 2012USD ($)Offerings | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Feb. 28, 2017USD ($) | Aug. 31, 2016USD ($) | May 31, 2016USD ($) | Oct. 31, 2015USD ($) |
Debt Instrument [Line Items] | ||||||||||||||||
Loss on early extinguishment of debt | $ (12,751,000) | $ (9,933,000) | $ (10,085,000) | $ 0 | $ 0 | |||||||||||
Original issue discount and deferred finance costs | 3,259,000 | 695,000 | ||||||||||||||
Debt issuance cost | $ 37,305,000 | 39,363,000 | 40,244,000 | |||||||||||||
Senior Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Face amount | $ 1,300,000,000 | |||||||||||||||
Debt instrument interest rate | 7.875% | |||||||||||||||
Senior Notes | August 2016 Issuance of 7.875% Notes Due 2022 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Loss on early extinguishment of debt | $ 10,100,000 | 10,100,000 | $ 10,100,000 | |||||||||||||
Senior Notes | February 2017 Issuance of 7.875% Notes Due 2022 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Loss on early extinguishment of debt | $ 12,800,000 | |||||||||||||||
Senior Notes | 6.375% Senior Secured Notes due 2019 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Face amount | $ 925,000,000 | |||||||||||||||
Debt instrument interest rate | 6.375% | 6.375% | 6.375% | |||||||||||||
Repurchase amount | $ 300,000,000 | |||||||||||||||
Original issue discount and deferred finance costs | $ 3,259,000 | $ 585,000 | ||||||||||||||
Debt issuance cost | $ 5,648,000 | $ 11,693,000 | 20,182,000 | |||||||||||||
Debt instrument maturity date | Dec. 1, 2019 | |||||||||||||||
Senior Notes | 6.375% Senior Secured Notes due 2019 | Scenario Previously Reported [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Face amount | $ 719,500,000 | |||||||||||||||
Senior Notes | 8.75% Senior Notes due 2020 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Face amount | $ 100,000,000 | $ 250,000,000 | $ 200,000,000 | $ 380,000,000 | $ 100,000,000 | |||||||||||
Debt instrument interest rate | 8.75% | 8.75% | 8.75% | |||||||||||||
Debt instrument, redemption price, percentage | 102.00% | 101.50% | 101.75% | 102.00% | ||||||||||||
Original issue discount and deferred finance costs | $ 0 | $ 0 | ||||||||||||||
Debt issuance cost | $ 13,130,000 | $ 15,053,000 | 18,892,000 | |||||||||||||
Debt instrument maturity date | Dec. 1, 2020 | |||||||||||||||
Number of offerings | Offerings | 2 | |||||||||||||||
Senior Notes | 8.875% Senior Secured Notes Due 2022 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Face amount | $ 300,000,000 | $ 300,000,000 | ||||||||||||||
Debt instrument interest rate | 8.875% | 8.875% | 8.875% | 8.875% | ||||||||||||
Debt instrument, redemption price, percentage | 98.00% | |||||||||||||||
Principal amount outstanding threshold for accelerated maturity | $ 190,000,000 | $ 190,000,000 | ||||||||||||||
Original issue discount and deferred finance costs | 0 | 110,000 | ||||||||||||||
Debt issuance cost | $ 827,000 | $ 903,000 | $ 1,170,000 | |||||||||||||
Senior Notes | 7.875% Senior Secured Notes Due 2022 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Face amount | $ 300,000,000 | $ 500,000,000 | ||||||||||||||
Debt instrument interest rate | 7.875% | 7.875% | 7.875% | |||||||||||||
Debt instrument, redemption price, percentage | 108.25% | |||||||||||||||
Original issue discount and deferred finance costs | $ 0 | $ 0 | ||||||||||||||
Debt issuance cost | 17,700,000 | 11,714,000 | ||||||||||||||
Senior Notes | 7.875% Senior Secured Notes Due 2022 | August 2016 Issuance of 7.875% Notes Due 2022 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Original issue discount and deferred finance costs | 9,000,000 | 9,000,000 | ||||||||||||||
Debt issuance cost | 15,700,000 | 15,700,000 | ||||||||||||||
Senior Notes | 7.875% Senior Secured Notes Due 2022 | February 2017 Issuance of 7.875% Notes Due 2022 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Original issue discount and deferred finance costs | 9,500,000 | |||||||||||||||
Debt issuance cost | 15,600,000 | |||||||||||||||
Senior Notes | 2019 Senior Notes and 2022 Private Placement Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Repurchase amount | $ 235,000,000 | |||||||||||||||
Senior Notes | 2019 Senior Notes and 2022 Private Placement Notes | August 2016 Issuance of 7.875% Notes Due 2022 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Original issue discount and deferred finance costs | $ 1,000,000 | $ 1,000,000 | 1,000,000 | |||||||||||||
Senior Notes | 2019 Senior Notes and 2022 Private Placement Notes | February 2017 Issuance of 7.875% Notes Due 2022 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Original issue discount and deferred finance costs | $ 3,300,000 | |||||||||||||||
Senior Notes | August 2022 Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Issuance Price, Percentage | 108.25% | 104.00% | ||||||||||||||
Senior Notes | August 2022 Notes | August 2016 Issuance of 7.875% Notes Due 2022 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Face amount | $ 100,000,000 | |||||||||||||||
Senior Notes | August 2022 Notes | February 2017 Issuance of 7.875% Notes Due 2022 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Face amount | $ 300,000,000 | |||||||||||||||
Senior Notes | 8.875% and 7.875% Senior Notes Due 2022 | August 2016 Issuance of 7.875% Notes Due 2022 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Original issue discount and deferred finance costs | 9,000,000 | |||||||||||||||
Debt issuance cost | $ 15,700,000 | |||||||||||||||
Senior Notes | 8.875% Senior Secured Notes Due 2022 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument interest rate | 8.875% |
Long-Term Debt - Deferred Finan
Long-Term Debt - Deferred Financing Activity (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Deferred Financing Activity [Roll Forward] | ||
Beginning balance | $ 43,783 | $ 46,700 |
Additions | 6,077 | 9,337 |
Rolled Over | 0 | 0 |
Early Extinguishment | (3,259) | (695) |
Amortized | (5,889) | (11,559) |
Ending balance | 40,712 | 43,783 |
Senior Notes | 6.375% Senior Secured Notes due 2019 | ||
Deferred Financing Activity [Roll Forward] | ||
Beginning balance | 11,693 | 20,182 |
Additions | 0 | 0 |
Rolled Over | (1,476) | (3,423) |
Early Extinguishment | (3,259) | (585) |
Amortized | (1,310) | (4,481) |
Ending balance | 5,648 | 11,693 |
Senior Notes | 8.75% Senior Notes due 2020 | ||
Deferred Financing Activity [Roll Forward] | ||
Beginning balance | 15,053 | 18,892 |
Additions | 0 | 0 |
Rolled Over | 0 | 0 |
Early Extinguishment | 0 | 0 |
Amortized | (1,923) | (3,839) |
Ending balance | 13,130 | 15,053 |
Senior Notes | 8.875% Senior Secured Notes Due 2022 | ||
Deferred Financing Activity [Roll Forward] | ||
Beginning balance | 903 | 1,170 |
Additions | 0 | 0 |
Rolled Over | 0 | 0 |
Early Extinguishment | 0 | (110) |
Amortized | (76) | (157) |
Ending balance | 827 | 903 |
Senior Notes | 7.875% Senior Secured Notes Due 2022 | ||
Deferred Financing Activity [Roll Forward] | ||
Beginning balance | 11,714 | 0 |
Additions | 6,077 | 9,337 |
Rolled Over | 1,476 | 3,423 |
Early Extinguishment | 0 | 0 |
Amortized | (1,567) | (1,046) |
Ending balance | 17,700 | 11,714 |
Revolving Credit Facility | Line of Credit | ||
Deferred Financing Activity [Roll Forward] | ||
Beginning balance | 4,420 | 6,456 |
Additions | 0 | 0 |
Rolled Over | 0 | 0 |
Early Extinguishment | 0 | 0 |
Amortized | (1,013) | (2,036) |
Ending balance | $ 3,407 | $ 4,420 |
Long-Term Debt - Revolving Cred
Long-Term Debt - Revolving Credit Facility (Details) - Revolving Credit Facility (Detail) - USD ($) | Nov. 16, 2012 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 06, 2015 |
Debt Instrument [Line Items] | |||||
Outstanding borrowings | $ 2,611,225,000 | $ 2,486,700,000 | $ 2,138,112,000 | ||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Credit facility, aggregate principal amount | $ 200,000,000 | $ 289,400,000 | |||
Debt maturity term | 5 years | ||||
Step down | 0.0025% | 25.00% | |||
Commitment fee, step-down percent | 12.50% | ||||
Commitment fee | 0.125% | 0.50% | |||
Outstanding borrowings | $ 100,000,000 | $ 0 | $ 20,000,000 | ||
Aggregate principal amount of the credit agreement, description | The aggregate commitments previously available to APX thereunder from $200.0 million to $289.4 million | ||||
Revolving Credit Facility | Series A Revolving Commitments | |||||
Debt Instrument [Line Items] | |||||
Credit facility, aggregate principal amount | $ 247,500,000 | 247,500,000 | |||
Credit facility, due date | Mar. 31, 2019 | ||||
Revolving Credit Facility | Series C Revolving Commitments | |||||
Debt Instrument [Line Items] | |||||
Credit facility, aggregate principal amount | $ 20,800,000 | 20,800,000 | |||
Credit facility, due date | Nov. 16, 2017 | ||||
Revolving Credit Facility | Series B Revolving Commitments | |||||
Debt Instrument [Line Items] | |||||
Credit facility, aggregate principal amount | $ 21,200,000 | $ 21,200,000 | |||
Credit facility, due date | Mar. 31, 2019 | ||||
Revolving Credit Facility | Federal Funds Rate | |||||
Debt Instrument [Line Items] | |||||
Variable Interest rate percentage | 0.50% | 0.50% | |||
Revolving Credit Facility | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Variable Interest rate percentage | 1.00% | 1.00% | |||
Variable Interest rate description | One month, plus 1.00% | ||||
Revolving Credit Facility | LIBOR | Series A Revolving Commitments | |||||
Debt Instrument [Line Items] | |||||
Variable Interest rate percentage | 3.00% | 3.00% | |||
Revolving Credit Facility | LIBOR | Series C Revolving Commitments | |||||
Debt Instrument [Line Items] | |||||
Variable Interest rate percentage | 3.00% | 3.00% | |||
Revolving Credit Facility | LIBOR | Series B Revolving Commitments | |||||
Debt Instrument [Line Items] | |||||
Variable Interest rate percentage | 4.00% | 4.00% | |||
Revolving Credit Facility | Base Rate-based Borrowings | Series A Revolving Commitments | |||||
Debt Instrument [Line Items] | |||||
Variable Interest rate percentage | 2.00% | 2.00% | |||
Revolving Credit Facility | Base Rate-based Borrowings | Series C Revolving Commitments | |||||
Debt Instrument [Line Items] | |||||
Variable Interest rate percentage | 2.00% | 2.00% | |||
Revolving Credit Facility | Base Rate-based Borrowings | Series B Revolving Commitments | |||||
Debt Instrument [Line Items] | |||||
Variable Interest rate percentage | 3.00% | 3.00% |
Long-Term Debt - Summary of Deb
Long-Term Debt - Summary of Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | |||
Outstanding Principal | $ 2,619,465 | $ 2,519,465 | $ 2,175,000 |
Unamortized Premium (Discount) | 29,065 | 6,598 | 3,356 |
Unamortized Deferred Financing Costs | (37,305) | (39,363) | (40,244) |
Net Carrying Amount | 2,611,225 | 2,486,700 | 2,138,112 |
Deferred financing costs, net | 3,407 | 4,420 | 6,456 |
Senior Notes | 6.375% Senior Secured Notes due 2019 | |||
Debt Instrument [Line Items] | |||
Outstanding Principal | 419,465 | 719,465 | 925,000 |
Unamortized Premium (Discount) | 0 | 0 | 0 |
Unamortized Deferred Financing Costs | (5,648) | (11,693) | (20,182) |
Net Carrying Amount | 413,817 | 707,772 | 904,818 |
Senior Notes | 8.75% Senior Notes due 2020 | |||
Debt Instrument [Line Items] | |||
Outstanding Principal | 930,000 | 930,000 | 930,000 |
Unamortized Premium (Discount) | 5,129 | 5,848 | 7,060 |
Unamortized Deferred Financing Costs | (13,130) | (15,053) | (18,892) |
Net Carrying Amount | 921,999 | 920,795 | 918,168 |
Senior Notes | 8.875% Senior Secured Notes Due 2022 | |||
Debt Instrument [Line Items] | |||
Outstanding Principal | 270,000 | 270,000 | 300,000 |
Unamortized Premium (Discount) | (2,764) | (2,960) | (3,704) |
Unamortized Deferred Financing Costs | (827) | (903) | (1,170) |
Net Carrying Amount | 266,409 | 266,137 | 295,126 |
Senior Notes | 7.875% Senior Secured Notes Due 2022 | |||
Debt Instrument [Line Items] | |||
Outstanding Principal | 900,000 | 600,000 | |
Unamortized Premium (Discount) | 26,700 | 3,710 | |
Unamortized Deferred Financing Costs | (17,700) | (11,714) | |
Net Carrying Amount | 909,000 | 591,996 | |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Net Carrying Amount | 100,000 | 0 | 20,000 |
Deferred financing costs, net | 3,400 | $ 4,400 | |
Revolving Credit Facility | Series C Revolving Credit Facility Due 2017 | |||
Debt Instrument [Line Items] | |||
Outstanding Principal | 7,200 | 1,440 | |
Unamortized Premium (Discount) | 0 | 0 | |
Unamortized Deferred Financing Costs | 0 | 0 | |
Net Carrying Amount | 7,200 | 1,440 | |
Revolving Credit Facility | Series A, B Revolving Credit Facilities Due 2019 | |||
Debt Instrument [Line Items] | |||
Outstanding Principal | 92,800 | 18,560 | |
Unamortized Premium (Discount) | 0 | 0 | |
Unamortized Deferred Financing Costs | 0 | 0 | |
Net Carrying Amount | $ 92,800 | $ 18,560 |
Balance Sheet Components (Detai
Balance Sheet Components (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Prepaid expenses and other current assets | |||
Prepaid expenses | $ 11,680 | $ 7,983 | |
Deposits | 2,474 | 1,046 | |
Other | 619 | 1,129 | |
Total prepaid expenses and other current assets | 14,773 | 10,158 | $ 10,626 |
Subscriber acquisition costs | |||
Subscriber acquisition costs | 1,588,310 | 1,373,080 | 958,261 |
Accumulated amortization | (418,023) | (320,646) | (167,617) |
Subscriber acquisition costs, net | 1,170,287 | 1,052,434 | 790,644 |
Accrued payroll and commissions | |||
Accrued commissions | 35,127 | 22,187 | 20,176 |
Accrued payroll | 19,074 | 24,101 | 18,071 |
Total accrued payroll and commissions | 54,201 | 46,288 | 38,247 |
Accrued expenses and other current liabilities | |||
Accrued interest payable | 17,259 | 16,944 | 17,153 |
Accrued taxes | 10,305 | 3,376 | 2,683 |
Current portion of derivative liability | 6,785 | 0 | |
Spectrum license obligation | 3,712 | 0 | |
Accrued payroll taxes and withholdings | 3,547 | 4,793 | 3,938 |
Wireless restructuring costs | 91 | 4,275 | |
Loss contingencies | 2,231 | 2,571 | 2,504 |
Blackstone monitoring fee, a related party | 1,125 | 1,389 | |
Other | 6,490 | 5,020 | |
Other | 3,475 | 5,192 | |
Total accrued expenses and other current liabilities | 48,439 | 34,265 | 35,573 |
Deferred revenue | |||
Subscriber deferred revenues | 37,277 | 34,682 | |
Deferred product revenues | 18,819 | 0 | |
Deferred activation fees | 10,609 | 11,040 | |
Total deferred revenue | 66,705 | 45,722 | 34,875 |
Deferred revenue, net of current portion | |||
Deferred product revenues | 98,800 | 975 | |
Deferred activation fees | 55,444 | 57,759 | |
Total deferred revenue, net of current portion | $ 154,244 | $ 58,734 | $ 44,782 |
Property and Equipment - Compon
Property and Equipment - Components of Property and Equipment (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | ||||
Property plant and equipment, gross | $ 115,790 | $ 105,261 | $ 82,386 | |
Accumulated depreciation and amortization | (50,131) | (41,635) | (27,112) | |
Property plant and equipment, gross | 65,659 | 63,626 | 55,274 | $ 62,790 |
Vehicles | ||||
Property, Plant and Equipment [Line Items] | ||||
Property plant and equipment, gross | $ 30,916 | $ 31,416 | 26,935 | |
Vehicles | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated Useful Lives | 3 years | 3 years | ||
Vehicles | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated Useful Lives | 5 years | 5 years | ||
Computer equipment and software | ||||
Property, Plant and Equipment [Line Items] | ||||
Property plant and equipment, gross | $ 39,814 | $ 27,006 | 21,702 | |
Computer equipment and software | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated Useful Lives | 3 years | 3 years | ||
Computer equipment and software | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated Useful Lives | 5 years | 5 years | ||
Leasehold improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Property plant and equipment, gross | $ 18,095 | $ 17,717 | 17,434 | |
Leasehold improvements | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated Useful Lives | 2 years | 2 years | ||
Leasehold improvements | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated Useful Lives | 15 years | 15 years | ||
Office furniture, fixtures and equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Property plant and equipment, gross | $ 14,619 | $ 13,508 | 11,776 | |
Estimated Useful Lives | 7 years | 7 years | ||
Buildings | ||||
Property, Plant and Equipment [Line Items] | ||||
Property plant and equipment, gross | $ 702 | $ 702 | 702 | |
Estimated Useful Lives | 39 years | 39 years | ||
Build-to-suit lease building | ||||
Property, Plant and Equipment [Line Items] | ||||
Property plant and equipment, gross | $ 8,247 | $ 5,004 | 0 | |
Accumulated depreciation and amortization | (200) | 0 | ||
Property plant and equipment, gross | $ 8,200 | 5,000 | ||
Estimated Useful Lives | 10 years 6 months | |||
Construction in process | ||||
Property, Plant and Equipment [Line Items] | ||||
Property plant and equipment, gross | $ 3,397 | $ 9,908 | $ 3,837 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||||
Property plant and equipment, gross | $ 115,790 | $ 105,261 | $ 82,386 | ||
Accumulated amortization | 50,131 | 41,635 | 27,112 | ||
Depreciation and amortization expense | 9,700 | $ 8,100 | 16,800 | 16,900 | $ 11,300 |
Property, plant and equipment, net | 65,659 | 63,626 | 55,274 | $ 62,790 | |
Assets Under Capital Lease Obligations | |||||
Property, Plant and Equipment [Line Items] | |||||
Property plant and equipment, gross | 18,200 | 21,200 | 20,400 | ||
Accumulated amortization | 13,300 | 10,900 | 7,000 | ||
Build-to-suit lease building | |||||
Property, Plant and Equipment [Line Items] | |||||
Property plant and equipment, gross | 8,247 | 5,004 | $ 0 | ||
Accumulated amortization | 200 | 0 | |||
Property, plant and equipment, net | $ 8,200 | $ 5,000 |
Goodwill and Intangible Asset57
Goodwill and Intangible Assets - Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Roll Forward] | ||
Goodwill beginning balance | $ 834,416 | $ 841,522 |
Goodwill Impaired due to Wireless Restructuring | (2,270) | |
Effect of Foreign Currency Translation | 817 | (4,836) |
Goodwill ending balance | $ 835,233 | $ 834,416 |
Goodwill and Intangible Asset58
Goodwill and Intangible Assets - Additional Information (Detail) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($)Markets | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 836,115 | $ 835,233 | $ 834,416 | $ 841,522 | |
Foreign currency translation adjustments | (817) | 4,836 | |||
Accumulated impairment losses | 2,300 | 2,300 | |||
Indefinite-lived intangible assets | 31,876 | 31,876 | 558,395 | ||
Impairment charge of definite-lived intangible assets | 2,900 | ||||
Intangible assets, net | 426,616 | 475,392 | 558,395 | ||
Amortization expense | 47,328 | $ 54,073 | 108,178 | 125,451 | 143,578 |
Amortization expense related to intangible assets | 50,700 | $ 58,500 | 116,900 | 134,800 | 151,300 |
Finite-lived patents, gross | $ 200 | $ 300 | |||
Weighted-average amortization period for definite-lived intangible assets | 5 years 3 months 18 days | 3 years 9 months 18 days | |||
Spectrum licenses | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Number of mid-sized metropolitan markets | Markets | 40 | ||||
Lease agreements term | 7 years | 7 years | |||
Indefinite-lived intangible assets | $ 31,253 | $ 31,253 | |||
Customer contracts | Wildfire Acquisition | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Acquisition of intangible assets | 2,100 | ||||
Space Monkey technology | Space Monkey Acquisition | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Acquisition of intangible assets | 7,100 | ||||
Non-compete agreements | Wildfire Acquisition | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Acquisition of intangible assets | 800 | ||||
Non-compete agreements | Space Monkey Acquisition | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Acquisition of intangible assets | 1,200 | ||||
Patents | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Acquisition of intangible assets | 1,300 | ||||
Patents | Domain Names And Internet Protocol Addresses | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, net | 1,400 | ||||
Capitalized Software Development Costs | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization expense | $ 1,100 | $ 1,300 | $ 1,300 |
Goodwill and Intangible Asset59
Goodwill and Intangible Assets - Intangible Assets (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Definite-lived intangible assets, gross | $ 1,004,339 | $ 1,005,070 | $ 1,002,733 |
Accumulated amortization | (609,599) | (561,554) | (444,960) |
Finite-lived intangible assets | 394,740 | 443,516 | 557,773 |
Indefinite-lived intangible assets | 31,876 | 31,876 | 558,395 |
Total intangible assets, gross | 1,036,215 | 1,036,946 | 1,003,355 |
Total intangible assets, net | 426,616 | 475,392 | 558,395 |
Customer contracts | |||
Finite-Lived Intangible Assets [Line Items] | |||
Definite-lived intangible assets, gross | 967,702 | 965,179 | 962,842 |
Accumulated amortization | (588,747) | (539,910) | (430,803) |
Finite-lived intangible assets | $ 378,955 | $ 425,269 | 532,039 |
Estimated useful lives of intangible asset | 10 years | 10 years | |
2GIG 2.0 technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Definite-lived intangible assets, gross | $ 17,000 | $ 17,000 | 17,000 |
Accumulated amortization | (11,877) | (10,479) | (7,064) |
Finite-lived intangible assets | $ 5,123 | $ 6,521 | 9,936 |
Estimated useful lives of intangible asset | 8 years | 8 years | |
Other technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Definite-lived intangible assets, gross | $ 2,917 | $ 7,067 | 7,067 |
Accumulated amortization | (1,042) | (4,984) | (3,438) |
Finite-lived intangible assets | 1,875 | 2,083 | 3,629 |
Space Monkey technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Definite-lived intangible assets, gross | 7,100 | 7,100 | 7,100 |
Accumulated amortization | (3,167) | (2,268) | (761) |
Finite-lived intangible assets | $ 3,933 | $ 4,832 | 6,339 |
Estimated useful lives of intangible asset | 6 years | 6 years | |
Patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Definite-lived intangible assets, gross | $ 9,620 | $ 8,724 | 7,524 |
Accumulated amortization | (4,766) | (3,913) | (2,094) |
Finite-lived intangible assets | $ 4,854 | $ 4,811 | 5,430 |
Estimated useful lives of intangible asset | 5 years | 5 years | |
Non-compete agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Definite-lived intangible assets, gross | $ 1,200 | 1,200 | |
Accumulated amortization | $ (1,200) | (800) | |
Finite-lived intangible assets | 400 | ||
Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful lives of intangible asset | 5 years | 2 years | |
Minimum | Other technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful lives of intangible asset | 5 years | 5 years | |
Minimum | Non-compete agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful lives of intangible asset | 2 years | ||
Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful lives of intangible asset | 10 years | 10 years | |
Maximum | Other technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful lives of intangible asset | 7 years | 7 years | |
Maximum | Non-compete agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful lives of intangible asset | 3 years | ||
Spectrum licenses | |||
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | $ 31,253 | $ 31,253 | |
IP addresses | |||
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | 564 | 564 | 564 |
Domain names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | $ 59 | 59 | $ 58 |
Scenario Previously Reported [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Definite-lived intangible assets, gross | 1,006,270 | ||
Accumulated amortization | (562,754) | ||
Total intangible assets, gross | $ 1,038,146 |
Goodwill and Intangible Asset60
Goodwill and Intangible Assets - Schedule of Estimated Future Amortization Expense of Intangible Assets Excluding Patents Currently in Process (Detail) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,017 | $ 101,296 | |
2017-Remaining Period | $ 50,945 | |
2,018 | 90,275 | 89,736 |
2,019 | 78,452 | 78,082 |
2,020 | 67,579 | 67,288 |
2,021 | 58,542 | 58,288 |
Thereafter | 48,726 | 48,548 |
Total estimated amortization expense | $ 394,519 | $ 443,238 |
Financial Instruments - Valuati
Financial Instruments - Valuation Approach Applied to Each Class of Security (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Feb. 19, 2014 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Fair Value | $ 5,681 | $ 5,681 | $ 47,538 | ||
Cash | 1,470 | 1,470 | 1,191 | ||
Adjusted Cost | 5,488 | 5,488 | 46,527 | ||
Unrealized Gains | 193 | 193 | 1,011 | ||
Unrealized Losses | 0 | 0 | 0 | ||
Cash and Cash Equivalents | 1,470 | 1,470 | 43,520 | ||
Long-Term Investments and Other Assets, net | 4,211 | 4,211 | 4,018 | ||
Cost method investments | 600 | 600 | 400 | $ 3,500 | |
Unrealized gain (loss) during period | (400) | 200 | |||
Accumulated other comprehensive income | 1,200 | 1,200 | 1,000 | ||
Privately Held Company | Convertible Debt Securities | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Cost method investments | 3,000 | 3,000 | $ 3,000 | ||
Level 1 | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Fair Value | 4,211 | 4,211 | 46,347 | ||
Adjusted Cost | 4,018 | 4,018 | 45,336 | ||
Unrealized Gains | 193 | 193 | 1,011 | ||
Unrealized Losses | 0 | 0 | 0 | ||
Cash and Cash Equivalents | 0 | 0 | 42,329 | ||
Long-Term Investments and Other Assets, net | 4,211 | 4,211 | 4,018 | ||
Money market funds | Level 1 | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Fair Value | 42,329 | ||||
Adjusted Cost | 42,329 | ||||
Unrealized Gains | 0 | ||||
Unrealized Losses | 0 | ||||
Cash and Cash Equivalents | 42,329 | ||||
Long-Term Investments and Other Assets, net | 0 | ||||
Corporate securities | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Fair Value | 4,211 | 4,211 | 4,018 | ||
Corporate securities | Level 1 | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Fair Value | 4,211 | 4,211 | 4,018 | ||
Adjusted Cost | 4,018 | 4,018 | 3,007 | ||
Unrealized Gains | 193 | 193 | 1,011 | ||
Unrealized Losses | 0 | 0 | 0 | ||
Cash and Cash Equivalents | 0 | 0 | 0 | ||
Long-Term Investments and Other Assets, net | $ 4,211 | $ 4,211 | $ 4,018 |
Financial Instruments - Debt Fa
Financial Instruments - Debt Fair Value and Carrying Value (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | May 31, 2016 | Dec. 31, 2015 | Oct. 31, 2015 | Oct. 19, 2015 | Nov. 16, 2012 |
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items] | |||||||
Face Value | $ 2,611,225 | $ 2,486,700 | $ 2,138,112 | ||||
Level 2 | |||||||
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items] | |||||||
Face Value | 2,519,465 | 2,519,465 | 2,155,000 | ||||
Estimated Fair Value | $ 2,652,059 | 2,625,570 | 1,932,990 | ||||
Senior Notes | |||||||
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items] | |||||||
Stated Interest Rate | 7.875% | ||||||
Senior Notes | 6.375% Senior Secured Notes due 2019 | |||||||
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items] | |||||||
Face Value | $ 413,817 | $ 707,772 | 904,818 | ||||
Stated Interest Rate | 6.375% | 6.375% | 6.375% | ||||
Senior Notes | 6.375% Senior Secured Notes due 2019 | Level 2 | |||||||
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items] | |||||||
Face Value | $ 419,465 | $ 719,465 | 925,000 | ||||
Estimated Fair Value | 431,462 | 743,783 | 879,906 | ||||
Senior Notes | 8.75% Senior Notes due 2020 | |||||||
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items] | |||||||
Face Value | $ 921,999 | $ 920,795 | 918,168 | ||||
Stated Interest Rate | 8.75% | 8.75% | 8.75% | ||||
Senior Notes | 8.75% Senior Notes due 2020 | Level 2 | |||||||
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items] | |||||||
Face Value | $ 930,000 | $ 930,000 | 930,000 | ||||
Estimated Fair Value | 962,550 | 946,275 | 756,788 | ||||
Senior Notes | 8.875% Senior Secured Notes Due 2022 | |||||||
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items] | |||||||
Face Value | $ 266,409 | $ 266,137 | 295,126 | ||||
Stated Interest Rate | 8.875% | 8.875% | 8.875% | 8.875% | |||
Senior Notes | 8.875% Senior Secured Notes Due 2022 | Level 2 | |||||||
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items] | |||||||
Face Value | $ 270,000 | $ 270,000 | 300,000 | ||||
Estimated Fair Value | 279,297 | 280,372 | 296,296 | ||||
Senior Notes | 7.875% Senior Secured Notes Due 2022 | |||||||
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items] | |||||||
Face Value | $ 909,000 | $ 591,996 | |||||
Stated Interest Rate | 7.875% | 7.875% | 7.875% | ||||
Senior Notes | 7.875% Senior Secured Notes Due 2022 | Level 2 | |||||||
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items] | |||||||
Face Value | $ 900,000 | $ 600,000 | 0 | ||||
Estimated Fair Value | $ 978,750 | $ 655,140 | $ 0 |
Facility Fire - Additional Info
Facility Fire - Additional Information (Detail) - USD ($) $ in Millions | Mar. 18, 2014 | Dec. 31, 2015 | Dec. 31, 2014 |
Loss Contingencies [Line Items] | |||
Fire damage, recognized gross expenses | $ 8.3 | ||
Insurance recoveries | $ 8.8 | ||
Other Income | |||
Loss Contingencies [Line Items] | |||
Insurance recoveries in excess of net book value | $ 0.5 | ||
Reconstruction of Facility | |||
Loss Contingencies [Line Items] | |||
Insurance recoveries | $ 3 |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current income tax: | |||||
Federal | $ 0 | $ 0 | $ 0 | ||
State | 545 | 392 | 779 | ||
Foreign | 95 | (1) | 0 | ||
Total | 640 | 391 | 779 | ||
Deferred income tax: | |||||
Federal | 0 | 0 | (925) | ||
State | 0 | 0 | (181) | ||
Foreign | (573) | (40) | 841 | ||
Total | (573) | (40) | (265) | ||
Provision for income taxes | $ 1,151 | $ 672 | $ 67 | $ 351 | $ 514 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Tax Expense Computed at Statutory Federal Rate and Company's Tax Expense (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||||
Computed expected tax expense | $ (93,770) | $ (94,737) | $ (81,107) | ||
State income taxes, net of federal tax effect | 360 | 259 | 395 | ||
Foreign income taxes | (949) | 202 | 1,645 | ||
Other reconciling items | 666 | 0 | 0 | ||
Permanent differences | 1,688 | 1,980 | 2,261 | ||
Change in valuation allowance | 92,072 | 92,647 | 77,320 | ||
Provision for income taxes | $ 1,151 | $ 672 | $ 67 | $ 351 | $ 514 |
Income Taxes - Significant Port
Income Taxes - Significant Portions of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Gross deferred tax assets: | ||
Net operating loss carryforwards | $ 799,302 | $ 642,391 |
Deferred subscriber income | 19,866 | 13,722 |
Accrued expenses and allowances | 15,452 | 15,415 |
Purchased intangibles | 14,776 | 10,576 |
Inventory reserves | 6,999 | 9,333 |
Property and Equipment | 3,482 | 3,257 |
Alternative minimum tax credit and research and development credit | 41 | 41 |
Valuation allowance | (328,991) | (234,771) |
Deferred tax assets, net of valuation allowance | 530,927 | 459,964 |
Gross deferred tax liabilities: | ||
Deferred subscriber acquisition costs | (537,387) | (466,783) |
Property and equipment | 0 | 0 |
Prepaid expenses | (744) | (705) |
Deferred tax liabilities, net | (538,131) | (467,488) |
Net deferred tax liabilities | $ (7,204) | $ (7,524) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes And Tax Related [Line Items] | ||||
Net deferred tax liability | $ 7,452 | $ 7,204 | $ 7,524 | |
Amount of net operating loss carryforwards to be recorded in additional paid in capital when realized | 11,500 | 11,500 | ||
Valuation allowance | 328,991 | 234,771 | ||
Effective income tax rate | 0.70% | 0.50% | ||
United States | ||||
Income Taxes And Tax Related [Line Items] | ||||
Research and development credits | $ 41 | $ 41 |
Income Taxes - Summary of Net O
Income Taxes - Summary of Net Operating Loss Carryforwards (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Internal Revenue Service (IRS) | United States | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | $ 2,084,897 | $ 1,695,386 |
Internal Revenue Service (IRS) | State | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | 1,553,812 | 1,338,742 |
Canada Revenue Agency | Foreign Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | 33,526 | 28,629 |
Inland Revenue Department (New Zealand) | Foreign Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | $ 0 | $ 5,518 |
Stock-Based Compensation and 69
Stock-Based Compensation and Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Aug. 01, 2016 | Apr. 29, 2016 | Aug. 31, 2016 | Apr. 30, 2016 | Mar. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Unrecognized compensation expense | $ 1,800 | ||||||||||
Compensation expense related to outstanding Incentive Units, recognized over a weighted-average period | 1 year 6 months 24 days | ||||||||||
Share-based compensation expense | $ 886 | $ 2,830 | $ 3,868 | $ 3,121 | $ 1,936 | ||||||
Proceeds from capital contribution | $ 30,600 | $ 69,800 | $ 30,600 | $ 69,800 | 0 | 69,800 | 100,407 | 0 | 32,300 | ||
313 Acquisition LLC | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based compensation expense | $ 2,200 | 2,200 | |||||||||
General and administrative expenses | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based compensation expense | $ 736 | $ 3,038 | 3,927 | $ 2,472 | $ 1,688 | ||||||
Executive Officers | General and administrative expenses | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based compensation expense | $ 2,200 | ||||||||||
Stock Appreciation Rights (SARs) | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock compensation award, method of measurement | Black-Scholes option valuation model | ||||||||||
Shares reserved for issuance | 53,621,891 | 53,621,891 | |||||||||
Incentive Units Time Based Awards | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock compensation award, method of measurement | Monte Carlo simulation valuation approach | ||||||||||
Vivint | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Incentive units relinquished | 2,320,552 | 2,307,172 | |||||||||
Vivint | Stock Appreciation Rights (SARs) | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based compensation awards, description | 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 SARs are subject to time-based and performance-based vesting conditions, with one-thirdsubject 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 | $ 900 | ||||||||||
Compensation expense related to outstanding Incentive Units, recognized over a weighted-average period | 2 years 9 months 23 days | ||||||||||
Weighted average grant date fair value of the outstanding units | $ 0.22 | $ 0.25 | |||||||||
Incentive units issued as share-based compensation awards, outstanding | 24,646,062 | 21,993,158 | |||||||||
Expected dividends | 0.00% | 0.00% | |||||||||
Vivint | Stock Appreciation Rights (SARs) | Minimum | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Expected volatility | 55.00% | 55.00% | |||||||||
Expected exercise term | 6 years | 6 years | |||||||||
Risk-free rate | 0.61% | 0.61% | |||||||||
Vivint | Stock Appreciation Rights (SARs) | Maximum | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Expected volatility | 125.00% | 125.00% | |||||||||
Expected exercise term | 6 years 5 months 18 days | 6 years 5 months 18 days | |||||||||
Risk-free rate | 1.77% | 1.77% | |||||||||
Vivint | Stock Appreciation Rights Time Based Awards | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock appreciation rights ("SARs"), vesting period | 5 years | 5 years | |||||||||
Vivint | Stock Appreciation Rights Time Based Awards | Tranche One | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock compensation award, vesting percentage | 33.33% | 33.33% | |||||||||
Vivint | Stock Appreciation Rights Performance Based Awards | Tranche One | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock compensation award, vesting percentage | 66.67% | 66.67% | |||||||||
313 Acquisition LLC | Incentive Units Time Based Awards | |||||||||||
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 | Incentive Units Time Based Awards | Tranche One | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Incentive units issued as share-based compensation awards | 85,882,836 | ||||||||||
Stock compensation award, vesting percentage | 33.33% | 33.33% | |||||||||
313 Acquisition LLC | Incentive Units Time Based Awards | Senior Management and Board Member | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Incentive units issued as share-based compensation awards | 85,812,836 | ||||||||||
313 Acquisition LLC | Incentive Units Time Based Awards | Chief Executive Officer and President | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Incentive units issued as share-based compensation awards | 42,169,456 | ||||||||||
Incentive units relinquished | 4,315,106 | ||||||||||
Incentive units issued as share-based compensation awards, outstanding | 42,169,456 | ||||||||||
313 Acquisition LLC | Incentive Units Performance Based Awards | Tranche One | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock compensation award, vesting percentage | 66.67% | 66.67% | |||||||||
313 Acquisition LLC | Incentive Units | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Incentive units relinquished | 905,000 | 4,415,106 | |||||||||
Expected volatility | 65.00% | ||||||||||
Weighted average grant date fair value of the outstanding units | $ 0.30 | $ 0.38 | |||||||||
313 Acquisition LLC | Incentive Units | Minimum | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Expected volatility | 55.00% | 55.00% | |||||||||
Expected exercise term | 3 years 11 months 15 days | 3 years 11 months 15 days | |||||||||
Risk-free rate | 0.62% | 0.62% | |||||||||
313 Acquisition LLC | Incentive Units | Maximum | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Expected volatility | 125.00% | 125.00% | |||||||||
Expected exercise term | 6 years | 6 years | |||||||||
Risk-free rate | 1.18% | 1.18% | |||||||||
Vivint Wireless | Stock Appreciation Rights (SARs) | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Incentive units relinquished | 63,500 | 0 | |||||||||
Stock appreciation rights ("SARs"), vesting period | 5 years | ||||||||||
Expected volatility | 65.00% | ||||||||||
Weighted average grant date fair value of the outstanding units | $ 2.30 | $ 6.02 | |||||||||
Incentive units issued as share-based compensation awards, outstanding | 17,500 | 17,500 | |||||||||
Expected dividends | 0.00% | 0.00% | |||||||||
Vivint Wireless | Stock Appreciation Rights (SARs) | Minimum | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Expected volatility | 65.00% | ||||||||||
Expected exercise term | 6 years | 6 years | |||||||||
Risk-free rate | 1.51% | 1.51% | |||||||||
Vivint Wireless | Stock Appreciation Rights (SARs) | Maximum | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Expected exercise term | 6 years 6 months | 6 years 6 months | |||||||||
Risk-free rate | 1.77% | 1.77% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Incentive Unit Activity (Detail) - 313 Acquisition LLC - Incentive Units - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding, Beginning Balance (shares) | 73,962,836 | 74,527,942 | |
Granted (shares) | 12,825,000 | 3,850,000 | |
Forfeited (shares) | (905,000) | (4,415,106) | |
Exercised (shares) | 0 | 0 | |
Outstanding, Ending Balance (shares) | 85,882,836 | 73,962,836 | 74,527,942 |
Unvested shares expected to vest (shares) | 66,186,360 | ||
Exercisable (shares) | 19,696,476 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted Average Exercise Price Per Share, Outstanding, Beginning Balance (in dollars per share) | $ 1.06 | $ 1.03 | |
Weighted Average Exercise Price Per Share, Granted (in dollars per share) | 1.93 | 2.40 | |
Weighted Average Exercise Price Per Share, Forfeited (in dollars per share) | 1.09 | 1.03 | |
Weighted Average Exercise Price Per Share, Exercised (in dollars per share) | 0 | 0 | |
Weighted Average Exercise Price Per Share, Outstanding, Ending Balance (in dollars per share) | 1.19 | $ 1.06 | $ 1.03 |
Weighted Average Exercise Price Per Share, Unvested shares expected to vest (in dollars per share) | 1.23 | ||
Weighted Average Exercise Price Per Share, Exercisable (in dollars per share) | $ 1.03 | ||
Outstanding, Weighted Average Remaining Contractual Life | 6 years 9 months 23 days | 7 years 3 months 22 days | 8 years 2 months 9 days |
Unvested shares expected to vest, Weighted Average Remaining Contractual Life | 6 years 11 months 28 days | ||
Exercisable at End of Period, Weighted Average Remaining Contractual Life | 6 years 2 months 16 days | ||
Outstanding, Aggregate Intrinsic Value | $ 0 | $ 104,562,869 | $ 20,145,882 |
Unvested shares expected to vest, Aggregate Intrinsic Value | 0 | ||
Exercisable, Aggregate Intrinsic Value | $ 0 |
Stock-Based Compensation - Su71
Stock-Based Compensation - Summary of the SAR Activity (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Vivint | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding, Beginning Balance (shares) | 18,664,137 | 6,696,660 | |
Converted (shares) | 3,259,934 | ||
Granted (shares) | 5,649,573 | 11,186,936 | |
Forfeited (shares) | (2,320,552) | (2,307,172) | |
Exercised (shares) | 0 | (172,221) | |
Outstanding, Ending Balance (shares) | 21,993,158 | 18,664,137 | 6,696,660 |
Unvested shares expected to vest (shares) | 19,334,407 | ||
Exercisable (shares) | 2,658,751 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted Average Exercise Price Per Share, Outstanding, Beginning Balance (in dollars per share) | $ 0.87 | $ 1.04 | |
Weighted Average Exercise Price Per Share, Converted (in dollars per share) | 0.70 | ||
Weighted Average Exercise Price Per Share, Granted (in dollars per share) | 1.22 | 1.03 | |
Weighted Average Exercise Price Per Share, Forfeited (in dollars per share) | 0.92 | 0.80 | |
Weighted Average Exercise Price Per Share, Exercised (in dollars per share) | 0 | 0.68 | |
Weighted Average Exercise Price Per Share, Outstanding, Ending Balance (in dollars per share) | 0.96 | $ 0.87 | $ 1.04 |
Weighted Average Exercise Price Per Share, Unvested shares expected to vest (in dollars per share) | 0.98 | ||
Weighted Average Exercise Price Per Share, Exercisable (in dollars per share) | $ 0.78 | ||
Outstanding, Weighted Average Remaining Contractual Life | 8 years 2 months 22 days | 8 years 7 months 28 days | 8 years 7 months 13 days |
Unvested shares expected to vest, Weighted Average Remaining Contractual Life | 8 years 4 months 13 days | ||
Converted, Weighted Average Remaining Contractual Life | 8 years 7 months 13 days | ||
Exercisable at End of Period, Weighted Average Remaining Contractual Life | 7 years 2 months 12 days | ||
Outstanding, Aggregate Intrinsic Value | $ 0 | $ 3,628,498 | $ 1,734,748 |
Unvested shares expected to vest, Aggregate Intrinsic Value | 0 | ||
Exercisable, Aggregate Intrinsic Value | $ 0 | ||
Vivint Wireless | Stock Appreciation Rights (SARs) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding, Beginning Balance (shares) | 81,000 | 70,000 | |
Granted (shares) | 0 | 11,000 | |
Forfeited (shares) | (63,500) | 0 | |
Exercised (shares) | 0 | 0 | |
Outstanding, Ending Balance (shares) | 17,500 | 81,000 | 70,000 |
Unvested shares expected to vest (shares) | 7,000 | ||
Exercisable (shares) | 10,500 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted Average Exercise Price Per Share, Outstanding, Beginning Balance (in dollars per share) | $ 13.26 | $ 5 | |
Weighted Average Exercise Price Per Share, Granted (in dollars per share) | 0 | 65.84 | |
Weighted Average Exercise Price Per Share, Forfeited (in dollars per share) | 15.54 | 0 | |
Weighted Average Exercise Price Per Share, Exercised (in dollars per share) | 0 | 0 | |
Weighted Average Exercise Price Per Share, Outstanding, Ending Balance (in dollars per share) | 5 | $ 13.26 | $ 5 |
Weighted Average Exercise Price Per Share, Unvested shares expected to vest (in dollars per share) | 5 | ||
Weighted Average Exercise Price Per Share, Exercisable (in dollars per share) | $ 5 | ||
Outstanding, Weighted Average Remaining Contractual Life | 6 years 4 months 28 days | 7 years 7 months 27 days | 8 years 4 months 28 days |
Unvested shares expected to vest, Weighted Average Remaining Contractual Life | 6 years 4 months 28 days | ||
Exercisable at End of Period, Weighted Average Remaining Contractual Life | 6 years 4 months 28 days |
Stock-Based Compensation and 72
Stock-Based Compensation and Equity - Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total stock-based compensation | $ 886 | $ 2,830 | $ 3,868 | $ 3,121 | $ 1,936 |
Operating expenses | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total stock-based compensation | 40 | 31 | 68 | 71 | 63 |
Selling expenses | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total stock-based compensation | 110 | (239) | (127) | 578 | 185 |
General and administrative expenses | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total stock-based compensation | $ 736 | $ 3,038 | $ 3,927 | $ 2,472 | $ 1,688 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($)Markets | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Commitments And Contingencies [Line Items] | |||||
Loss contingency accrual | $ 2,200 | $ 2,600 | $ 2,500 | ||
Capital lease obligation | 13,700 | 17,700 | 18,800 | ||
Property and equipment, net | 65,659 | 63,626 | 55,274 | $ 62,790 | |
Capital lease obligations, net of current portion | 4,949 | 7,935 | 11,171 | ||
Capital expenditure | 11,435 | $ 4,526 | 11,642 | 26,982 | $ 30,500 |
Accumulated amortization | $ 50,131 | 41,635 | $ 27,112 | ||
Software Licenses, Marketing Activities, and Other Goods and Services | |||||
Commitments And Contingencies [Line Items] | |||||
Other off-balance sheet obligations | $ 61,400 | ||||
Spectrum licenses | |||||
Commitments And Contingencies [Line Items] | |||||
Lease agreements term | 7 years | 7 years | |||
Number of mid-sized metropolitan markets | Markets | 40 | ||||
Vehicles | |||||
Commitments And Contingencies [Line Items] | |||||
Lease agreements term | 36 months | 36 months | |||
Average remaining life for fleet | 14 months | 19 months | |||
Build-to-suit lease building | |||||
Commitments And Contingencies [Line Items] | |||||
Property and equipment, net | $ 8,200 | $ 5,000 | |||
Capital lease obligations, net of current portion | 4,600 | ||||
Capital expenditure | 400 | ||||
Accumulated amortization | $ 200 | $ 0 |
Commitments and Contingencies74
Commitments and Contingencies - Summary of Operating Leases (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments And Contingencies [Line Items] | ||||
Rent Expense | $ 8,229 | $ 7,960 | $ 15,954 | $ 15,141 |
Warehouse, office space and other | ||||
Commitments And Contingencies [Line Items] | ||||
Rent Expense | $ 5,885 | 5,593 | $ 11,222 | 11,632 |
Warehouse, office space and other | Minimum | ||||
Commitments And Contingencies [Line Items] | ||||
Lease Term | 11 years | 1 year | ||
Warehouse, office space and other | Maximum | ||||
Commitments And Contingencies [Line Items] | ||||
Lease Term | 15 years | 15 years | ||
Wireless towers and spectrum | ||||
Commitments And Contingencies [Line Items] | ||||
Rent Expense | $ 2,344 | $ 2,367 | $ 4,732 | $ 3,509 |
Wireless towers and spectrum | Minimum | ||||
Commitments And Contingencies [Line Items] | ||||
Lease Term | 1 year | 1 year | ||
Wireless towers and spectrum | Maximum | ||||
Commitments And Contingencies [Line Items] | ||||
Lease Term | 10 years | 10 years |
Commitments and Contingencies75
Commitments and Contingencies - Future Minimum Lease Payments (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Operating | |
2,017 | $ 17,452 |
2,018 | 15,322 |
2,019 | 14,998 |
2,020 | 13,521 |
2,021 | 13,086 |
Thereafter | 47,634 |
Amounts representing interest | 0 |
Total lease payments | 122,013 |
Capital | |
2,017 | 10,513 |
2,018 | 6,117 |
2,019 | 2,049 |
2,020 | 17 |
2,021 | 0 |
Thereafter | 0 |
Amounts representing interest | (963) |
Total lease payments | 17,733 |
Total | |
2,017 | 27,965 |
2,018 | 21,439 |
2,019 | 17,047 |
2,020 | 13,538 |
2,021 | 13,086 |
Thereafter | 47,634 |
Amounts representing interest | (963) |
Total lease payments | $ 139,746 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | Aug. 01, 2016 | Apr. 29, 2016 | Oct. 10, 2014 | Sep. 03, 2014 | Dec. 27, 2012 | Aug. 31, 2016 | Apr. 30, 2016 | Apr. 30, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Feb. 01, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Related Party Transaction [Line Items] | ||||||||||||||||
Capital contribution received | $ 55,000,000 | |||||||||||||||
Dividend paid to stockholders | $ 50,000,000 | $ 0 | $ 0 | $ 50,000,000 | ||||||||||||
Additional expenses incurred for other related-party transactions | $ 800,000 | $ 1,200,000 | 4,200,000 | 2,500,000 | 3,100,000 | |||||||||||
Accrued expenses and other current liabilities | $ 48,439,000 | 48,439,000 | 34,265,000 | 35,573,000 | ||||||||||||
Non-cash loss on settlement of Merger-related escrow | $ 12,200,000 | 0 | (12,200,000) | 0 | ||||||||||||
Prepaid expenses and other current assets | 400,000 | 200,000 | ||||||||||||||
Additions | 9,460,000 | 8,274,000 | 9,036,000 | 0 | 0 | |||||||||||
Proceeds from capital contribution | $ 30,600,000 | $ 69,800,000 | $ 30,600,000 | $ 69,800,000 | 0 | 69,800,000 | 100,407,000 | 0 | 32,300,000 | |||||||
Share-based compensation | $ 886,000 | 2,830,000 | $ 3,868,000 | 3,121,000 | 1,936,000 | |||||||||||
Expected repayment period | 1 year | 1 year | ||||||||||||||
Amounts due from employees | 300,000 | $ 300,000 | $ 300,000 | 300,000 | ||||||||||||
Prepaid expenses and other current assets | 14,773,000 | 14,773,000 | 10,158,000 | 10,626,000 | ||||||||||||
Personal Use Of Corporate Jet | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Prepaid expenses and other current assets | 200,000 | 200,000 | 400,000 | |||||||||||||
General and administrative expenses | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Share-based compensation | 736,000 | 3,038,000 | 3,927,000 | 2,472,000 | 1,688,000 | |||||||||||
Executive Officers | General and administrative expenses | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Share-based compensation | 2,200,000 | |||||||||||||||
APX Group, Inc. | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Dividend paid to stockholders | $ 50,000,000 | |||||||||||||||
Vivint | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Accrued expenses and other current liabilities | 2,500,000 | 1,700,000 | ||||||||||||||
Vivint Gives Back | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Accrued expenses and other current liabilities | 700,000 | 700,000 | 1,800,000 | |||||||||||||
Solar | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Sublease and other administrative expenses | 1,100,000 | 2,800,000 | 4,600,000 | 7,100,000 | 8,500,000 | |||||||||||
Other expenses | 200,000 | $ 200,000 | 1,900,000 | |||||||||||||
Line of credit, financing receivable, maximum borrowing capacity | $ 20,000,000 | |||||||||||||||
Interest on outstanding balance | 7.50% | |||||||||||||||
Non-competition agreement, term | 3 years | |||||||||||||||
Product development and supply agreement term | 3 years | |||||||||||||||
Product development and supply agreement renewal term | 1 year | |||||||||||||||
Marketing and Customer Relations Agreement, pilot program term | 3 months | |||||||||||||||
Blackstone Management Partners L.L.C. | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Transaction fees paid | $ 20,000,000 | |||||||||||||||
Prepaid expenses and other current assets | 3,700,000 | $ 3,600,000 | $ 3,200,000 | |||||||||||||
Fee paid for support services by BMP to Company | 1,500,000 | |||||||||||||||
Accrued expenses and other current liabilities | 1,100,000 | $ 1,100,000 | ||||||||||||||
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. | |||||||||||||||
Expenses related to agreement | $ 2,400,000 | 1,900,000 | ||||||||||||||
Blackstone Management Partners L.L.C. | Blackstone Management Partners LLC Support and Services Agreement | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Expenses related to agreement | 0 | $ 0 | 0 | $ 0 | ||||||||||||
Maximum advisory fee obligation | $ 1,500,000 | 1,500,000 | ||||||||||||||
Blackstone Management Partners L.L.C. | Minimum | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Annual monitoring base fee, minimum | $ 2,700,000 | 2,700,000 | ||||||||||||||
8.75% Senior Notes due 2020 | Senior Notes | Blackstone Advisory Partners L.P. | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Additions | 600,000 | |||||||||||||||
7.875% Senior Secured Notes Due 2022 | Senior Notes | Blackstone Advisory Partners L.P. | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Additions | $ 700,000 | $ 500,000 |
Segment Reporting and Busines77
Segment Reporting and Business Concentrations - Additional Information (Detail) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017SegmentRegion | Jun. 30, 2016Segment | Dec. 31, 2016SegmentRegion | Dec. 31, 2015Segment | |
Segment Reporting [Abstract] | ||||
Number of operating segments | Segment | 1 | 1 | 1 | 1 |
Number of geographic regions | Region | 3 | 3 |
Segment Reporting and Busines78
Segment Reporting and Business Concentrations (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue from external customers | $ 417,479 | $ 355,060 | $ 757,907 | $ 653,721 | $ 563,677 |
Property, plant and equipment, net | 65,659 | 63,626 | 55,274 | 62,790 | |
United States | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue from external customers | 386,765 | 328,181 | 700,471 | 602,418 | 529,521 |
Property, plant and equipment, net | 64,821 | 62,781 | 55,103 | 62,368 | |
Canada | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue from external customers | 30,714 | $ 26,879 | 57,436 | 51,303 | 34,156 |
Property, plant and equipment, net | $ 838 | $ 845 | $ 171 | $ 422 |
Employee Benefit Plan (Detail)
Employee Benefit Plan (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Matching contributions to the plan | $ 0 | $ 0 | $ 0 | $ 0 | ||
2GIG | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Matching contributions to the plan | $ 0 | $ 0 |
Guarantor and Non-Guarantor S80
Guarantor and Non-Guarantor Supplemental Financial Information - Balance Sheet (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets | |||||
Current assets | $ 154,934 | $ 105,021 | $ 47,566 | ||
Property, plant and equipment, net | 65,659 | 63,626 | 55,274 | $ 62,790 | |
Subscriber acquisition costs, net | 1,170,287 | 1,052,434 | 790,644 | ||
Deferred financing costs, net | 3,407 | 4,420 | 6,456 | ||
Investment in subsidiaries | 0 | 0 | 0 | ||
Intercompany receivable | 0 | 0 | 0 | ||
Intangible assets, net | 426,616 | 475,392 | 558,395 | ||
Goodwill | 836,115 | 835,233 | 834,416 | 841,522 | |
Long-term investments and other assets | 58,953 | 11,536 | 10,893 | ||
Total assets | 2,715,971 | 2,547,662 | 2,303,644 | ||
LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY | |||||
Current liabilities | 289,020 | 185,191 | 168,518 | ||
Intercompany payable | 0 | 0 | 0 | ||
Notes payable and revolving credit facility, net of current portion | 2,611,225 | 2,486,700 | 2,138,112 | ||
Capital lease obligations, net of current portion | 4,949 | 7,935 | 11,171 | ||
Deferred revenue, net of current portion | 154,244 | 58,734 | 44,782 | ||
Accumulated losses of investee | 0 | 0 | 0 | ||
Other long-term obligations | 58,930 | 47,080 | 10,530 | ||
Deferred income tax liability | 7,452 | 7,204 | 7,524 | ||
Total (deficit) equity | (409,849) | (245,182) | (76,993) | $ 224,486 | $ 490,243 |
Total liabilities and stockholders' (deficit) equity | 2,715,971 | 2,547,662 | 2,303,644 | ||
Eliminations | |||||
Assets | |||||
Current assets | (105,914) | (67,799) | (53,066) | ||
Property, plant and equipment, net | 0 | 0 | 0 | ||
Subscriber acquisition costs, net | 0 | 0 | 0 | ||
Deferred financing costs, net | 0 | 0 | 0 | ||
Investment in subsidiaries | (2,210,678) | (2,228,903) | (2,070,404) | ||
Intercompany receivable | (6,303) | (9,492) | (22,398) | ||
Intangible assets, net | 0 | 0 | 0 | ||
Goodwill | 0 | 0 | 0 | ||
Long-term investments and other assets | (106) | (106) | (106) | ||
Total assets | (2,323,001) | (2,306,300) | (2,145,974) | ||
LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY | |||||
Current liabilities | (105,914) | (67,799) | (53,066) | ||
Intercompany payable | (6,303) | (9,492) | (22,398) | ||
Notes payable and revolving credit facility, net of current portion | 0 | 0 | 0 | ||
Capital lease obligations, net of current portion | 0 | 0 | 0 | ||
Deferred revenue, net of current portion | 0 | 0 | 0 | ||
Accumulated losses of investee | (409,849) | (245,182) | (76,993) | ||
Other long-term obligations | 0 | 0 | 0 | ||
Deferred income tax liability | (106) | (106) | (106) | ||
Total (deficit) equity | (1,800,829) | (1,983,721) | (1,993,411) | ||
Total liabilities and stockholders' (deficit) equity | (2,323,001) | (2,306,300) | (2,145,974) | ||
Parent | Reportable Legal Entities | |||||
Assets | |||||
Current assets | 0 | 0 | 0 | ||
Property, plant and equipment, net | 0 | 0 | 0 | ||
Subscriber acquisition costs, net | 0 | 0 | 0 | ||
Deferred financing costs, net | 0 | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | 0 | ||
Intercompany receivable | 0 | 0 | 0 | ||
Intangible assets, net | 0 | 0 | 0 | ||
Goodwill | 0 | 0 | 0 | ||
Long-term investments and other assets | 0 | 0 | 0 | ||
Total assets | 0 | 0 | 0 | ||
LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY | |||||
Current liabilities | 0 | 0 | 0 | ||
Intercompany payable | 0 | 0 | 0 | ||
Notes payable and revolving credit facility, net of current portion | 0 | 0 | 0 | ||
Capital lease obligations, net of current portion | 0 | 0 | 0 | ||
Deferred revenue, net of current portion | 0 | 0 | 0 | ||
Accumulated losses of investee | 409,849 | 245,182 | 76,993 | ||
Other long-term obligations | 0 | 0 | 0 | ||
Deferred income tax liability | 0 | 0 | 0 | ||
Total (deficit) equity | (409,849) | (245,182) | (76,993) | ||
Total liabilities and stockholders' (deficit) equity | 0 | 0 | 0 | ||
APX Group, Inc. | Reportable Legal Entities | |||||
Assets | |||||
Current assets | 4,454 | 25,136 | 2,537 | ||
Property, plant and equipment, net | 0 | 0 | 0 | ||
Subscriber acquisition costs, net | 0 | 0 | 0 | ||
Deferred financing costs, net | 3,407 | 4,420 | 6,456 | ||
Investment in subsidiaries | 2,210,678 | 2,228,903 | 2,070,404 | ||
Intercompany receivable | 0 | 0 | 0 | ||
Intangible assets, net | 0 | 0 | 0 | ||
Goodwill | 0 | 0 | 0 | ||
Long-term investments and other assets | 106 | 106 | 106 | ||
Total assets | 2,218,645 | 2,258,565 | 2,079,503 | ||
LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY | |||||
Current liabilities | 17,269 | 17,047 | 18,384 | ||
Intercompany payable | 0 | 0 | 0 | ||
Notes payable and revolving credit facility, net of current portion | 2,611,225 | 2,486,700 | 2,138,112 | ||
Capital lease obligations, net of current portion | 0 | 0 | 0 | ||
Deferred revenue, net of current portion | 0 | 0 | 0 | ||
Accumulated losses of investee | 0 | ||||
Other long-term obligations | 0 | 0 | 0 | ||
Deferred income tax liability | 0 | 0 | 0 | ||
Total (deficit) equity | (409,849) | (245,182) | (76,993) | ||
Total liabilities and stockholders' (deficit) equity | 2,218,645 | 2,258,565 | 2,079,503 | ||
Guarantor Subsidiaries | Reportable Legal Entities | |||||
Assets | |||||
Current assets | 232,076 | 143,954 | 91,555 | ||
Property, plant and equipment, net | 64,820 | 62,781 | 55,012 | ||
Subscriber acquisition costs, net | 1,084,164 | 974,975 | 728,547 | ||
Deferred financing costs, net | 0 | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | 0 | ||
Intercompany receivable | 6,303 | 9,492 | 22,398 | ||
Intangible assets, net | 397,007 | 443,189 | 519,301 | ||
Goodwill | 809,678 | 809,678 | 809,678 | ||
Long-term investments and other assets | 53,603 | 11,523 | 10,880 | ||
Total assets | 2,647,651 | 2,455,592 | 2,237,371 | ||
LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY | |||||
Current liabilities | 277,575 | 160,956 | 143,896 | ||
Intercompany payable | 0 | 0 | 0 | ||
Notes payable and revolving credit facility, net of current portion | 0 | 0 | 0 | ||
Capital lease obligations, net of current portion | 4,488 | 7,368 | 11,169 | ||
Deferred revenue, net of current portion | 144,026 | 53,991 | 40,960 | ||
Accumulated losses of investee | 0 | ||||
Other long-term obligations | 58,930 | 47,080 | 10,530 | ||
Deferred income tax liability | 106 | 106 | 106 | ||
Total (deficit) equity | 2,162,526 | 2,186,091 | 2,030,710 | ||
Total liabilities and stockholders' (deficit) equity | 2,647,651 | 2,455,592 | 2,237,371 | ||
Non-Guarantor Subsidiaries | Reportable Legal Entities | |||||
Assets | |||||
Current assets | 24,318 | 3,730 | 6,540 | ||
Property, plant and equipment, net | 839 | 845 | 262 | ||
Subscriber acquisition costs, net | 86,123 | 77,459 | 62,097 | ||
Deferred financing costs, net | 0 | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | 0 | ||
Intercompany receivable | 0 | 0 | 0 | ||
Intangible assets, net | 29,609 | 32,203 | 39,094 | ||
Goodwill | 26,437 | 25,555 | 24,738 | ||
Long-term investments and other assets | 5,350 | 13 | 13 | ||
Total assets | 172,676 | 139,805 | 132,744 | ||
LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY | |||||
Current liabilities | 100,090 | 74,987 | 59,304 | ||
Intercompany payable | 6,303 | 9,492 | 22,398 | ||
Notes payable and revolving credit facility, net of current portion | 0 | 0 | 0 | ||
Capital lease obligations, net of current portion | 461 | 567 | 2 | ||
Deferred revenue, net of current portion | 10,218 | 4,743 | 3,822 | ||
Accumulated losses of investee | 0 | ||||
Other long-term obligations | 0 | 0 | 0 | ||
Deferred income tax liability | 7,452 | 7,204 | 7,524 | ||
Total (deficit) equity | 48,152 | 42,812 | 39,694 | ||
Total liabilities and stockholders' (deficit) equity | $ 172,676 | $ 139,805 | $ 132,744 |
Guarantor and Non-Guarantor S81
Guarantor and Non-Guarantor Supplemental Financial Information - Statements of Operations and Comprehensive (Loss) Income (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Income Statements, Captions [Line Items] | |||||
Revenues | $ 417,479 | $ 355,060 | $ 757,907 | $ 653,721 | $ 563,677 |
Costs and expenses | 464,469 | 391,608 | 829,009 | 762,396 | 657,546 |
(Loss) income from operations | (46,990) | (36,548) | (71,102) | (108,675) | (93,869) |
(Loss) income from subsidiaries | 0 | 0 | 0 | 0 | 0 |
Other expense (income), net | 118,732 | 97,595 | 204,788 | 170,081 | 144,277 |
(Loss) income before income tax expenses | (165,722) | (134,143) | (275,890) | (278,756) | (238,146) |
Income tax (benefit) expense | 1,151 | 672 | 67 | 351 | 514 |
Net (loss) income | (166,873) | (134,815) | (275,957) | (279,107) | (238,660) |
Other comprehensive (loss) income, net of tax effects: | |||||
Net loss | (166,873) | (134,815) | (275,957) | (279,107) | (238,660) |
Foreign currency translation adjustment | 1,576 | 2,801 | 2,482 | (13,293) | (11,333) |
Unrealized gain on marketable securities | (258) | 0 | 1,011 | 0 | 0 |
Total other comprehensive gain | 1,318 | 2,801 | 3,493 | (13,293) | (11,333) |
Comprehensive loss | (165,555) | (132,014) | (272,464) | (292,400) | (249,993) |
Eliminations | |||||
Condensed Income Statements, Captions [Line Items] | |||||
Revenues | (1,351) | (1,351) | (2,704) | (2,808) | (3,122) |
Costs and expenses | (1,351) | (1,351) | (2,704) | (2,808) | (3,122) |
(Loss) income from operations | 0 | 0 | 0 | 0 | 0 |
(Loss) income from subsidiaries | 214,369 | 167,309 | 345,594 | 397,992 | 332,510 |
Other expense (income), net | 0 | 0 | 0 | 0 | 0 |
(Loss) income before income tax expenses | 214,369 | 167,309 | 345,594 | 397,992 | 332,510 |
Income tax (benefit) expense | 0 | 0 | 0 | 0 | 0 |
Net (loss) income | 214,369 | 167,309 | 345,594 | 397,992 | 332,510 |
Other comprehensive (loss) income, net of tax effects: | |||||
Net loss | 214,369 | 167,309 | 345,594 | 397,992 | 332,510 |
Foreign currency translation adjustment | (1,576) | (2,801) | (2,482) | 13,292 | 11,333 |
Unrealized gain on marketable securities | 258 | (1,011) | |||
Total other comprehensive gain | (1,318) | (2,801) | |||
Comprehensive loss | 213,051 | 164,508 | 342,101 | 411,284 | 343,843 |
Parent | Reportable Legal Entities | |||||
Condensed Income Statements, Captions [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | 0 |
Costs and expenses | 0 | 0 | 0 | 0 | 0 |
(Loss) income from operations | 0 | 0 | 0 | 0 | 0 |
(Loss) income from subsidiaries | (166,873) | (134,815) | (275,957) | (279,107) | (238,660) |
Other expense (income), net | 0 | 0 | 0 | 0 | 0 |
(Loss) income before income tax expenses | (166,873) | (134,815) | (275,957) | (279,107) | (238,660) |
Income tax (benefit) expense | 0 | 0 | 0 | 0 | 0 |
Net (loss) income | (166,873) | (134,815) | (275,957) | (279,107) | (238,660) |
Other comprehensive (loss) income, net of tax effects: | |||||
Net loss | (166,873) | (134,815) | (275,957) | (279,107) | (238,660) |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | 0 |
Unrealized gain on marketable securities | 0 | 0 | |||
Total other comprehensive gain | 0 | 0 | |||
Comprehensive loss | (166,873) | (134,815) | (275,957) | (279,107) | (238,660) |
APX Group, Inc. | Reportable Legal Entities | |||||
Condensed Income Statements, Captions [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | 0 |
Costs and expenses | 0 | 0 | 0 | 0 | 0 |
(Loss) income from operations | 0 | 0 | 0 | 0 | 0 |
(Loss) income from subsidiaries | (47,496) | (32,494) | (69,637) | (118,885) | (93,850) |
Other expense (income), net | 119,377 | 102,321 | 206,320 | 160,222 | 145,917 |
(Loss) income before income tax expenses | (166,873) | (134,815) | (275,957) | (279,107) | (239,767) |
Income tax (benefit) expense | 0 | 0 | 0 | 0 | (1,107) |
Net (loss) income | (166,873) | (134,815) | (275,957) | (279,107) | (238,660) |
Other comprehensive (loss) income, net of tax effects: | |||||
Net loss | (166,873) | (134,815) | (275,957) | (279,107) | (238,660) |
Foreign currency translation adjustment | 1,576 | 2,801 | 2,482 | (13,293) | (11,333) |
Unrealized gain on marketable securities | (258) | 1,011 | |||
Total other comprehensive gain | 1,318 | 2,801 | |||
Comprehensive loss | (165,555) | (132,014) | (272,464) | (292,400) | (249,993) |
Guarantor Subsidiaries | Reportable Legal Entities | |||||
Condensed Income Statements, Captions [Line Items] | |||||
Revenues | 395,515 | 337,256 | 715,072 | 622,507 | 530,888 |
Costs and expenses | 445,668 | 373,319 | 787,138 | 730,322 | 623,124 |
(Loss) income from operations | (50,153) | (36,063) | (72,066) | (107,815) | (92,236) |
(Loss) income from subsidiaries | 0 | 0 | 0 | 0 | 0 |
Other expense (income), net | 1,741 | (1,428) | (1,207) | 9,763 | (1,676) |
(Loss) income before income tax expenses | (51,894) | (34,635) | (70,859) | (117,578) | (90,560) |
Income tax (benefit) expense | (269) | 185 | 545 | 392 | 779 |
Net (loss) income | (51,625) | (34,820) | (71,404) | (117,970) | (91,339) |
Other comprehensive (loss) income, net of tax effects: | |||||
Net loss | (51,625) | (34,820) | (71,404) | (117,970) | (91,339) |
Foreign currency translation adjustment | 0 | 0 | 0 | 2 | (6,895) |
Unrealized gain on marketable securities | (258) | 1,011 | |||
Total other comprehensive gain | (258) | 0 | |||
Comprehensive loss | (51,883) | (34,820) | (70,393) | (117,968) | (98,234) |
Non-Guarantor Subsidiaries | Reportable Legal Entities | |||||
Condensed Income Statements, Captions [Line Items] | |||||
Revenues | 23,315 | 19,155 | 45,539 | 34,022 | 35,911 |
Costs and expenses | 20,152 | 19,640 | 44,575 | 34,882 | 37,544 |
(Loss) income from operations | 3,163 | (485) | 964 | (860) | (1,633) |
(Loss) income from subsidiaries | 0 | 0 | 0 | 0 | 0 |
Other expense (income), net | (2,386) | (3,298) | (325) | 96 | 36 |
(Loss) income before income tax expenses | 5,549 | 2,813 | 1,289 | (956) | (1,669) |
Income tax (benefit) expense | 1,420 | 487 | (478) | (41) | 842 |
Net (loss) income | 4,129 | 2,326 | 1,767 | (915) | (2,511) |
Other comprehensive (loss) income, net of tax effects: | |||||
Net loss | 4,129 | 2,326 | 1,767 | (915) | (2,511) |
Foreign currency translation adjustment | 1,576 | 2,801 | 2,482 | (13,294) | (4,438) |
Unrealized gain on marketable securities | 0 | 0 | |||
Total other comprehensive gain | 1,576 | 2,801 | |||
Comprehensive loss | $ 5,705 | $ 5,127 | $ 4,249 | $ (14,209) | $ (6,949) |
Guarantor and Non-Guarantor S82
Guarantor and Non-Guarantor Supplemental Financial Information - Cash Flows (Detail) - USD ($) $ in Thousands | Aug. 01, 2016 | Apr. 29, 2016 | Sep. 03, 2014 | Aug. 31, 2016 | Apr. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Cash flows from operating activities | ||||||||||
Net cash (used in) provided by operating activities | $ (133,261) | $ (171,573) | $ (365,706) | $ (255,307) | $ (309,637) | |||||
Cash flows from investing activities: | ||||||||||
Subscriber acquisition costs-company owned equipment | 0 | (1,791) | (5,243) | (24,740) | (10,580) | |||||
Capital expenditures | (11,435) | (4,526) | (11,642) | (26,982) | (30,500) | |||||
Proceeds from sale of assets | 319 | 1,925 | 3,123 | 480 | 964 | |||||
Investment in subsidiary | 0 | 0 | 0 | 0 | 0 | |||||
Acquisition of intangible assets | (743) | (505) | (1,385) | (1,363) | (9,649) | |||||
Net cash used in acquisitions | 0 | 0 | (18,500) | |||||||
Proceeds from insurance claims | 0 | 2,984 | 0 | |||||||
Investment in marketable securities | (60,000) | |||||||||
Proceeds from marketable securities | 60,069 | |||||||||
Proceeds from note receivable | 0 | 0 | 22,699 | |||||||
Change in restricted cash | 0 | 14,214 | 14,375 | |||||||
Investment in convertible note | 0 | 0 | (3,000) | |||||||
Acquisition of other assets | (143) | 0 | 0 | (208) | (2,162) | |||||
Net cash (used in) provided by investing activities | (12,002) | (4,897) | (15,147) | (35,615) | (36,284) | |||||
Cash flows from financing activities: | ||||||||||
Proceeds from notes payable | 324,750 | 500,000 | 604,000 | 296,250 | 102,000 | |||||
Repayment of notes payable | (300,000) | (235,535) | (235,535) | 0 | 0 | |||||
Borrowings from revolving credit facility | 113,000 | 57,000 | 57,000 | 271,000 | 20,000 | |||||
Repayment of revolving line of credit | (13,000) | (77,000) | (77,000) | (271,000) | 0 | |||||
Proceeds from capital contribution | $ 30,600 | $ 69,800 | $ 30,600 | $ 69,800 | 0 | 69,800 | 100,407 | 0 | 32,300 | |
Payment of intercompany settlement | 0 | |||||||||
Intercompany receivable | 0 | 0 | 0 | 0 | 0 | |||||
Intercompany payable | 0 | 0 | 0 | 0 | 0 | |||||
Proceeds from contract sales | 0 | 0 | 2,261 | |||||||
Acquisition of contracts | 0 | 0 | (2,277) | |||||||
Repayments of capital lease obligations | (4,712) | (3,956) | (8,315) | (6,414) | (6,300) | |||||
Payments of other long-term obligations | (1,164) | 0 | ||||||||
Financing costs | (9,460) | (8,274) | (9,036) | 0 | 0 | |||||
Deferred financing costs | (6,191) | (6,277) | (9,241) | (5,436) | (2,927) | |||||
Payment of dividends | $ (50,000) | 0 | 0 | (50,000) | ||||||
Net cash (used in) provided by financing activities | 103,223 | 295,758 | 422,280 | 284,400 | 95,057 | |||||
Effect of exchange rate changes on cash | (10) | (441) | (466) | (1,726) | (234) | |||||
Net increase (decrease) in cash | (42,050) | 118,847 | 40,961 | (8,248) | (251,098) | |||||
Cash and cash equivalents: | ||||||||||
Beginning of period | 43,520 | 2,559 | 2,559 | 10,807 | 261,905 | |||||
End of period | 1,470 | 121,406 | 43,520 | 2,559 | 10,807 | |||||
Eliminations | ||||||||||
Cash flows from operating activities | ||||||||||
Net cash (used in) provided by operating activities | 0 | 0 | 0 | (50,000) | ||||||
Cash flows from investing activities: | ||||||||||
Subscriber acquisition costs-company owned equipment | 0 | 0 | 0 | 0 | ||||||
Capital expenditures | 0 | 0 | 0 | 0 | 0 | |||||
Proceeds from sale of assets | 0 | 0 | 0 | 0 | 0 | |||||
Investment in subsidiary | 129,560 | 256,804 | 508,621 | 296,895 | 372,324 | |||||
Acquisition of intangible assets | 0 | 0 | 0 | 0 | 0 | |||||
Net cash used in acquisitions | 0 | |||||||||
Proceeds from insurance claims | 0 | |||||||||
Investment in marketable securities | 0 | |||||||||
Proceeds from marketable securities | 0 | |||||||||
Proceeds from note receivable | 0 | |||||||||
Change in restricted cash | 0 | 0 | ||||||||
Investment in convertible note | 0 | 0 | ||||||||
Acquisition of other assets | 0 | 0 | 0 | |||||||
Net cash (used in) provided by investing activities | 129,560 | 256,804 | 508,621 | 296,895 | 372,324 | |||||
Cash flows from financing activities: | ||||||||||
Proceeds from notes payable | 0 | 0 | 0 | 0 | 0 | |||||
Repayment of notes payable | 0 | 0 | 0 | |||||||
Borrowings from revolving credit facility | 0 | 0 | 0 | 0 | 0 | |||||
Repayment of revolving line of credit | 0 | 0 | 0 | 0 | ||||||
Proceeds from capital contribution | (69,800) | (100,407) | (32,300) | |||||||
Payment of intercompany settlement | 0 | |||||||||
Intercompany receivable | (3,189) | (6,621) | (12,906) | (11,601) | (10,658) | |||||
Intercompany payable | (126,371) | (180,383) | (395,308) | (285,294) | (329,366) | |||||
Proceeds from contract sales | 0 | |||||||||
Acquisition of contracts | 0 | |||||||||
Repayments of capital lease obligations | 0 | 0 | 0 | 0 | 0 | |||||
Payments of other long-term obligations | 0 | |||||||||
Financing costs | 0 | 0 | 0 | |||||||
Deferred financing costs | 0 | 0 | 0 | 0 | 0 | |||||
Payment of dividends | 50,000 | |||||||||
Net cash (used in) provided by financing activities | (129,560) | (256,804) | (508,621) | (296,895) | (322,324) | |||||
Effect of exchange rate changes on cash | 0 | 0 | 0 | 0 | 0 | |||||
Net increase (decrease) in cash | 0 | 0 | 0 | 0 | 0 | |||||
Cash and cash equivalents: | ||||||||||
Beginning of period | 0 | 0 | 0 | 0 | 0 | |||||
End of period | 0 | 0 | 0 | 0 | 0 | |||||
Parent | Reportable Legal Entities | ||||||||||
Cash flows from operating activities | ||||||||||
Net cash (used in) provided by operating activities | 0 | 0 | 0 | 50,000 | ||||||
Cash flows from investing activities: | ||||||||||
Subscriber acquisition costs-company owned equipment | 0 | 0 | 0 | 0 | ||||||
Capital expenditures | 0 | 0 | 0 | 0 | 0 | |||||
Proceeds from sale of assets | 0 | 0 | 0 | 0 | 0 | |||||
Investment in subsidiary | 0 | (69,800) | (100,407) | 0 | (32,300) | |||||
Acquisition of intangible assets | 0 | 0 | 0 | 0 | 0 | |||||
Net cash used in acquisitions | 0 | |||||||||
Proceeds from insurance claims | 0 | |||||||||
Investment in marketable securities | 0 | |||||||||
Proceeds from marketable securities | 0 | |||||||||
Proceeds from note receivable | 0 | |||||||||
Change in restricted cash | 0 | 0 | ||||||||
Investment in convertible note | 0 | 0 | ||||||||
Acquisition of other assets | 0 | 0 | 0 | |||||||
Net cash (used in) provided by investing activities | 0 | (69,800) | (100,407) | 0 | (32,300) | |||||
Cash flows from financing activities: | ||||||||||
Proceeds from notes payable | 0 | 0 | 0 | 0 | 0 | |||||
Repayment of notes payable | 0 | 0 | 0 | |||||||
Borrowings from revolving credit facility | 0 | 0 | 0 | 0 | 0 | |||||
Repayment of revolving line of credit | 0 | 0 | 0 | 0 | ||||||
Proceeds from capital contribution | 69,800 | 100,407 | 32,300 | |||||||
Payment of intercompany settlement | 0 | |||||||||
Intercompany receivable | 0 | 0 | 0 | 0 | 0 | |||||
Intercompany payable | 0 | 0 | 0 | 0 | 0 | |||||
Proceeds from contract sales | 0 | |||||||||
Acquisition of contracts | 0 | |||||||||
Repayments of capital lease obligations | 0 | 0 | 0 | 0 | 0 | |||||
Payments of other long-term obligations | 0 | |||||||||
Financing costs | 0 | 0 | 0 | |||||||
Deferred financing costs | 0 | 0 | 0 | 0 | 0 | |||||
Payment of dividends | (50,000) | |||||||||
Net cash (used in) provided by financing activities | 0 | 69,800 | 100,407 | 0 | (17,700) | |||||
Effect of exchange rate changes on cash | 0 | 0 | 0 | 0 | 0 | |||||
Net increase (decrease) in cash | 0 | 0 | 0 | 0 | 0 | |||||
Cash and cash equivalents: | ||||||||||
Beginning of period | 0 | 0 | 0 | 0 | 0 | |||||
End of period | 0 | 0 | 0 | 0 | 0 | |||||
APX Group, Inc. | ||||||||||
Cash flows from financing activities: | ||||||||||
Payment of dividends | $ (50,000) | |||||||||
APX Group, Inc. | Reportable Legal Entities | ||||||||||
Cash flows from operating activities | ||||||||||
Net cash (used in) provided by operating activities | 0 | 0 | (1,052) | (894) | ||||||
Cash flows from investing activities: | ||||||||||
Subscriber acquisition costs-company owned equipment | 0 | 0 | 0 | 0 | ||||||
Capital expenditures | 0 | 0 | 0 | 0 | 0 | |||||
Proceeds from sale of assets | 0 | 0 | 0 | 0 | 0 | |||||
Investment in subsidiary | (129,560) | (187,004) | (408,214) | (296,895) | (340,024) | |||||
Acquisition of intangible assets | 0 | 0 | 0 | 0 | 0 | |||||
Net cash used in acquisitions | 0 | |||||||||
Proceeds from insurance claims | 0 | |||||||||
Investment in marketable securities | (60,000) | |||||||||
Proceeds from marketable securities | 60,069 | |||||||||
Proceeds from note receivable | 0 | |||||||||
Change in restricted cash | 0 | 0 | ||||||||
Investment in convertible note | 0 | 0 | ||||||||
Acquisition of other assets | 0 | 0 | 0 | |||||||
Net cash (used in) provided by investing activities | (129,560) | (187,004) | (408,214) | (296,895) | (339,955) | |||||
Cash flows from financing activities: | ||||||||||
Proceeds from notes payable | 324,750 | 500,000 | 604,000 | 296,250 | 102,000 | |||||
Repayment of notes payable | (300,000) | (235,535) | (235,535) | |||||||
Borrowings from revolving credit facility | 113,000 | 57,000 | 57,000 | 271,000 | 20,000 | |||||
Repayment of revolving line of credit | (13,000) | (77,000) | (77,000) | (271,000) | ||||||
Proceeds from capital contribution | 69,800 | 100,407 | 32,300 | |||||||
Payment of intercompany settlement | 0 | |||||||||
Intercompany receivable | 0 | 0 | 0 | 0 | ||||||
Intercompany payable | 0 | 0 | 0 | 0 | 0 | |||||
Proceeds from contract sales | 0 | |||||||||
Acquisition of contracts | 0 | |||||||||
Repayments of capital lease obligations | 0 | 0 | 0 | 0 | 0 | |||||
Payments of other long-term obligations | 0 | |||||||||
Financing costs | (9,460) | (8,274) | (9,036) | |||||||
Deferred financing costs | (6,191) | (6,277) | (9,241) | (5,436) | (2,927) | |||||
Payment of dividends | (50,000) | |||||||||
Net cash (used in) provided by financing activities | 109,099 | 299,714 | 430,595 | 290,814 | 101,373 | |||||
Effect of exchange rate changes on cash | 0 | 0 | 0 | 0 | 0 | |||||
Net increase (decrease) in cash | (20,461) | 112,710 | 22,381 | (7,133) | (239,476) | |||||
Cash and cash equivalents: | ||||||||||
Beginning of period | 24,680 | 2,299 | 2,299 | 9,432 | 248,908 | |||||
End of period | 4,219 | 115,009 | 24,680 | 2,299 | 9,432 | |||||
Guarantor Subsidiaries | Reportable Legal Entities | ||||||||||
Cash flows from operating activities | ||||||||||
Net cash (used in) provided by operating activities | (136,796) | (176,661) | (380,508) | (267,327) | (318,734) | |||||
Cash flows from investing activities: | ||||||||||
Subscriber acquisition costs-company owned equipment | (1,791) | (5,243) | (23,641) | (10,580) | ||||||
Capital expenditures | (11,435) | (4,526) | (11,642) | (26,941) | (30,315) | |||||
Proceeds from sale of assets | 319 | 1,925 | 3,080 | 480 | 964 | |||||
Investment in subsidiary | 0 | 0 | 0 | 0 | 0 | |||||
Acquisition of intangible assets | (743) | (505) | (1,385) | (1,363) | (9,649) | |||||
Net cash used in acquisitions | (18,500) | |||||||||
Proceeds from insurance claims | 2,984 | |||||||||
Investment in marketable securities | 0 | |||||||||
Proceeds from marketable securities | 0 | |||||||||
Proceeds from note receivable | 22,699 | |||||||||
Change in restricted cash | 14,214 | 14,375 | ||||||||
Investment in convertible note | 0 | (3,000) | ||||||||
Acquisition of other assets | (143) | (208) | (2,153) | |||||||
Net cash (used in) provided by investing activities | (12,002) | (4,897) | (15,190) | (34,475) | (36,159) | |||||
Cash flows from financing activities: | ||||||||||
Proceeds from notes payable | 0 | 0 | 0 | 0 | 0 | |||||
Repayment of notes payable | 0 | 0 | 0 | |||||||
Borrowings from revolving credit facility | 0 | 0 | 0 | 0 | 0 | |||||
Repayment of revolving line of credit | 0 | 0 | 0 | 0 | ||||||
Proceeds from capital contribution | 0 | 0 | 0 | |||||||
Payment of intercompany settlement | 3,000 | |||||||||
Intercompany receivable | 3,189 | 6,621 | 12,906 | 11,601 | 10,658 | |||||
Intercompany payable | 129,560 | 187,004 | 408,214 | 296,895 | 340,024 | |||||
Proceeds from contract sales | 2,261 | |||||||||
Acquisition of contracts | (2,277) | |||||||||
Repayments of capital lease obligations | (4,549) | (3,955) | (8,295) | (6,402) | (6,297) | |||||
Payments of other long-term obligations | (1,164) | |||||||||
Financing costs | 0 | 0 | 0 | |||||||
Deferred financing costs | 0 | 0 | 0 | 0 | 0 | |||||
Payment of dividends | 0 | |||||||||
Net cash (used in) provided by financing activities | 127,036 | 189,670 | 415,825 | 302,094 | 344,369 | |||||
Effect of exchange rate changes on cash | 0 | 0 | 0 | 0 | 0 | |||||
Net increase (decrease) in cash | (21,762) | 8,112 | 20,127 | 292 | (10,524) | |||||
Cash and cash equivalents: | ||||||||||
Beginning of period | 18,186 | (1,941) | (1,941) | (2,233) | 8,291 | |||||
End of period | (3,576) | 6,171 | 18,186 | (1,941) | (2,233) | |||||
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||||||||
Cash flows from operating activities | ||||||||||
Net cash (used in) provided by operating activities | 3,535 | 5,088 | 14,802 | 13,072 | 9,991 | |||||
Cash flows from investing activities: | ||||||||||
Subscriber acquisition costs-company owned equipment | 0 | 0 | (1,099) | 0 | ||||||
Capital expenditures | 0 | 0 | 0 | (41) | (185) | |||||
Proceeds from sale of assets | 0 | 0 | 43 | 0 | 0 | |||||
Investment in subsidiary | 0 | 0 | 0 | 0 | 0 | |||||
Acquisition of intangible assets | 0 | 0 | 0 | 0 | 0 | |||||
Net cash used in acquisitions | 0 | |||||||||
Proceeds from insurance claims | 0 | |||||||||
Investment in marketable securities | 0 | |||||||||
Proceeds from marketable securities | 0 | |||||||||
Proceeds from note receivable | 0 | |||||||||
Change in restricted cash | 0 | 0 | ||||||||
Investment in convertible note | 0 | 0 | ||||||||
Acquisition of other assets | 0 | 0 | (9) | |||||||
Net cash (used in) provided by investing activities | 0 | 0 | 43 | (1,140) | (194) | |||||
Cash flows from financing activities: | ||||||||||
Proceeds from notes payable | 0 | 0 | 0 | 0 | 0 | |||||
Repayment of notes payable | 0 | 0 | 0 | |||||||
Borrowings from revolving credit facility | 0 | 0 | 0 | 0 | 0 | |||||
Repayment of revolving line of credit | 0 | 0 | 0 | 0 | ||||||
Proceeds from capital contribution | 0 | 0 | 0 | |||||||
Payment of intercompany settlement | (3,000) | |||||||||
Intercompany receivable | 0 | 0 | 0 | 0 | 0 | |||||
Intercompany payable | (3,189) | (6,621) | (12,906) | (11,601) | (10,658) | |||||
Proceeds from contract sales | 0 | |||||||||
Acquisition of contracts | 0 | |||||||||
Repayments of capital lease obligations | (163) | (1) | (20) | (12) | (3) | |||||
Payments of other long-term obligations | 0 | |||||||||
Financing costs | 0 | 0 | 0 | |||||||
Deferred financing costs | 0 | 0 | 0 | 0 | 0 | |||||
Payment of dividends | 0 | |||||||||
Net cash (used in) provided by financing activities | (3,352) | (6,622) | (15,926) | (11,613) | (10,661) | |||||
Effect of exchange rate changes on cash | (10) | (441) | (466) | (1,726) | (234) | |||||
Net increase (decrease) in cash | 173 | (1,975) | (1,547) | (1,407) | (1,098) | |||||
Cash and cash equivalents: | ||||||||||
Beginning of period | 654 | 2,201 | 2,201 | 3,608 | 4,706 | |||||
End of period | $ 827 | $ 226 | $ 654 | $ 2,201 | $ 3,608 |
Subsequent Events (Detail)
Subsequent Events (Detail) - USD ($) | Aug. 10, 2017 | Feb. 01, 2017 | Jan. 03, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | May 31, 2016 | Nov. 16, 2012 |
Subsequent Event [Line Items] | |||||||
Installment loans provided by a third party financing provider | $ 4,000 | ||||||
Minimum | Vivint Flex Pay | |||||||
Subsequent Event [Line Items] | |||||||
Term of loan | 42 months | 42 months | |||||
Maximum | Vivint Flex Pay | |||||||
Subsequent Event [Line Items] | |||||||
Term of loan | 60 months | 60 months | |||||
Senior Notes | |||||||
Subsequent Event [Line Items] | |||||||
Face amount | $ 1,300,000,000 | ||||||
Debt instrument interest rate | 7.875% | ||||||
Citizens | |||||||
Subsequent Event [Line Items] | |||||||
Consumer financing program, term of agreement | 5 years | ||||||
Consumer financing program, term of agreement renewal | 1 year | ||||||
Citizens | Minimum | |||||||
Subsequent Event [Line Items] | |||||||
Percent of credit losses | 5.00% | ||||||
Citizens | Maximum | |||||||
Subsequent Event [Line Items] | |||||||
Percent of credit losses | 100.00% | ||||||
7.875% Senior Secured Notes Due 2022 | Senior Notes | |||||||
Subsequent Event [Line Items] | |||||||
Face amount | $ 300,000,000 | $ 500,000,000 | |||||
Debt instrument, redemption price, percentage | 108.25% | ||||||
Debt instrument interest rate | 7.875% | 7.875% | 7.875% | ||||
7.625% Senior Notes due 2023 | Senior Notes | Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Face amount | $ 400,000,000 | ||||||
Debt instrument interest rate | 7.625% | ||||||
Senior Notes Due 2019 | Senior Notes | Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Repayments of long-term debt | $ 150,000,000 |
Retail Installment Contract R84
Retail Installment Contract Receivables - Installment Receivables (Detail) - USD ($) $ in Thousands | Jan. 03, 2017 | Jun. 30, 2017 | Jun. 30, 2017 |
Minimum | Vivint Flex Pay | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Installment loans available to qualified customers, term | 42 months | 42 months | |
Maximum | Vivint Flex Pay | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Installment loans available to qualified customers, term | 60 months | 60 months | |
Retail Installment Contracts | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
RIC receivables, gross | $ 80,608 | $ 80,608 | |
Deferred interest | (24,889) | (24,889) | |
RIC receivables, net of deferred interest | 55,719 | 55,719 | |
Classified on the condensed consolidated unaudited balance sheets as: | |||
Accounts and notes receivable, net | 8,478 | 8,478 | |
Long-term investments and other assets, net | 47,241 | 47,241 | |
RIC receivables, net | 55,719 | 55,719 | |
Interest income | $ (1,100) | $ (1,200) |
Retail Installment Contract R85
Retail Installment Contract Receivables - Allowance for Credit Losses (Detail) - Retail Installment Contracts $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |
Deferred interest, beginning of period | $ 0 |
Bad debt expense | 0 |
Write-offs, net of recoveries | (234) |
Change in deferred interest on short-term and long-term RIC receivables | 25,123 |
Deferred interest, end of period | $ 24,889 |
Financial Instruments - Derivat
Financial Instruments - Derivative Fair Value (Detail) - Level 2 $ in Thousands | Jun. 30, 2017USD ($) |
Derivatives, Fair Value [Line Items] | |
Fair Value | $ 16,092 |
Notional Amount | 68,076 |
Accrued expenses and other current liabilities | |
Derivatives, Fair Value [Line Items] | |
Fair Value | 6,785 |
Other long-term obligations | |
Derivatives, Fair Value [Line Items] | |
Fair Value | $ 9,307 |