Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 25, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K/A | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-38246 | ||
Entity Registrant Name | Vivint Smart Home, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 98-1380306 | ||
Entity Address, Address Line One | 4931 North 300 West | ||
Entity Address, City or Town | Provo | ||
Entity Address, State or Province | UT | ||
Entity Address, Postal Zip Code | 84604 | ||
City Area Code | 801 | ||
Local Phone Number | 377-9111 | ||
Title of 12(b) Security | Class A common stock, par value $0.0001 per share | ||
Trading Symbol | VVNT | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 875.6 | ||
Entity Common Stock, Shares Outstanding | 203,042,281 | ||
Documents Incorporated by Reference | Portions of the Registrant's Proxy Statement relating to its 2021 Annual Meeting of Stockholders are incorporated by reference into Part III of this report. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001713952 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 313,799 | $ 4,549 |
Accounts and notes receivable, net of allowance of $9,911 and $8,118 | 64,697 | 64,216 |
Inventories | 47,299 | 64,622 |
Prepaid expenses and other current assets | 14,338 | 18,063 |
Total current assets | 440,133 | 151,450 |
Property, plant and equipment, net | 52,379 | 61,088 |
Capitalized contract costs, net | 1,318,498 | 1,215,249 |
Deferred financing costs, net | 1,667 | 1,123 |
Intangible assets, net | 111,474 | 177,811 |
Goodwill | 837,077 | 836,540 |
Operating lease right-of-use assets | 52,880 | 65,320 |
Long-term notes receivables and other assets, net | 62,510 | 95,827 |
Total assets | 2,876,618 | 2,604,408 |
Current Liabilities: | ||
Accounts payable | 85,656 | 86,554 |
Accrued payroll and commissions | 87,943 | 72,642 |
Accrued expenses and other current liabilities | 247,324 | 139,389 |
Deferred revenue | 321,143 | 234,612 |
Current portion of notes payable, net | 9,500 | 461,420 |
Current portion of operating lease liabilities | 12,135 | 11,640 |
Current portion of finance lease liabilities | 3,356 | 7,708 |
Total current liabilities | 767,057 | 1,013,965 |
Notes payable, net | 2,372,235 | 2,471,659 |
Notes payable, net - related party | 443,865 | 103,634 |
Revolving line of credit | 0 | 245,000 |
Finance lease liabilities, net of current portion | 2,460 | 5,474 |
Deferred revenue, net of current portion | 615,598 | 405,786 |
Operating lease liabilities, net of current portion | 49,692 | 63,477 |
Other long-term obligations | 121,235 | 80,540 |
Warrant derivative liabilities | 75,531 | 0 |
Deferred income tax liabilities | 2,168 | 2,231 |
Total liabilities | 4,449,841 | 4,391,766 |
Commitments and contingencies (See Note 15) | ||
Stockholders’ deficit: | ||
Preferred stock, $0.0001 par value, 300,000,000 shares authorized; none issued and outstanding as of December 31, 2020 and 2019, respectively | 0 | 0 |
Class A Common stock, $0.0001 par value, 3,000,000,000 shares authorized; 202,216,341 and 94,937,597 shares issued and outstanding as of December 31, 2020 and 2019, respectively | 20 | 9 |
Additional paid-in capital | 1,548,786 | 740,121 |
Accumulated deficit | (3,095,220) | (2,500,022) |
Accumulated other comprehensive loss | (26,809) | (27,466) |
Total stockholders’ deficit | (1,573,223) | (1,787,358) |
Total liabilities and stockholders’ deficit | $ 2,876,618 | $ 2,604,408 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for credit loss | $ 9,911 | $ 8,118 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized (in shares) | 300,000,000 | 300,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized (in shares) | 3,000,000,000 | 3,000,000,000 |
Common stock, issued (in shares) | 202,216,341 | 94,937,597 |
Common stock, outstanding (in shares) | 202,216,341 | 94,937,597 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues: | |||
Revenues | $ 1,260,566 | $ 1,155,981 | $ 1,050,441 |
Costs and expenses: | |||
Operating expenses (exclusive of depreciation and amortization shown separately below) | 352,343 | 369,285 | 355,813 |
Selling expenses (exclusive of amortization of deferred commissions of $197,697, $181,265 and $165,797, respectively, which are included in depreciation and amortization shown separately below) | 302,287 | 193,359 | 213,386 |
General and administrative expenses | 266,335 | 192,182 | 209,257 |
Depreciation and amortization | 570,831 | 543,440 | 514,082 |
Restructuring and asset impairment charges | 20,941 | 0 | 4,683 |
Total costs and expenses | 1,512,737 | 1,298,266 | 1,297,221 |
Loss from operations | (252,171) | (142,285) | (246,780) |
Other expenses (income): | |||
Interest expense | 221,175 | 260,014 | 245,214 |
Interest income | (708) | (23) | (425) |
Change in fair value of warrant liabilities | 109,250 | 0 | 0 |
Other loss (income), net | 10,473 | (7,665) | (17,323) |
Loss before income taxes | (592,361) | (394,611) | (474,246) |
Income tax expense (benefit) | 2,837 | 1,313 | (1,611) |
Net loss | $ (595,198) | $ (395,924) | $ (472,635) |
Net loss per share attributable to common stockholders: | |||
Basic and diluted (in dollars per share) | $ (3.32) | $ (4.18) | $ (5) |
Weighted-average shares used in computing net loss per share attributable to common stockholders: | |||
Basic and diluted (in shares) | 179,071,278 | 94,805,201 | 94,527,648 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Amortization of deferred commissions | $ 197,697 | $ 181,265 | $ 165,797 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (595,198) | $ (395,924) | $ (472,635) |
Other comprehensive income (loss), net of tax effects: | |||
Foreign currency translation adjustment | 657 | 1,371 | (2,216) |
Total other comprehensive income (loss) | 657 | 1,371 | (2,216) |
Comprehensive loss | $ (594,541) | $ (394,553) | $ (474,851) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity (Deficit) - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional paid-in capital | Accumulated deficit | Accumulated deficitCumulative Effect, Period of Adoption, Adjustment | Accumulated other comprehensive loss | Accumulated other comprehensive lossCumulative Effect, Period of Adoption, Adjustment |
Stockholders' equity, beginning balance (in shares) at Dec. 31, 2017 | 94,467,813 | |||||||
Beginning Balance at Dec. 31, 2017 | $ (652,375) | $ 9 | $ 728,852 | $ (1,353,935) | $ (27,301) | |||
Beginning Balance (ASU 2014-09 adoption) at Dec. 31, 2017 | $ (276,931) | $ (276,931) | ||||||
Beginning Balance (ASU 2016-01 adoption) at Dec. 31, 2017 | (680) | $ 680 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock upon exercise or vesting of equity awards (in shares) | 2,646 | |||||||
Net Loss | (472,635) | (472,635) | ||||||
Foreign currency translation adjustment | (2,216) | (2,216) | ||||||
Stock-based compensation | 2,416 | 2,416 | ||||||
Capital contribution (in shares) | 225,903 | |||||||
Capital contribution | 4,700 | 4,700 | ||||||
Stockholders' equity, ending balance (in shares) at Dec. 31, 2018 | 94,696,362 | |||||||
Ending Balance at Dec. 31, 2018 | (1,397,041) | $ 83 | $ 9 | 735,968 | (2,104,181) | $ 83 | (28,837) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock upon exercise or vesting of equity awards (in shares) | 41,818 | |||||||
Net Loss | (395,924) | (395,924) | ||||||
Foreign currency translation adjustment | 1,371 | 1,371 | ||||||
Stock-based compensation | 4,241 | 4,241 | ||||||
Return of capital to Vivint Smart Home, Inc. | (4,788) | (4,788) | ||||||
Capital contribution (in shares) | 199,417 | |||||||
Capital contribution | 4,700 | 4,700 | ||||||
Stockholders' equity, ending balance (in shares) at Dec. 31, 2019 | 94,937,597 | |||||||
Ending Balance at Dec. 31, 2019 | (1,787,358) | $ 9 | 740,121 | (2,500,022) | (27,466) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Recapitalization transaction (in shares) | 59,793,021 | |||||||
Recapitalization transaction (restated) | 422,119 | $ 6 | 422,113 | |||||
Issuance of earnout shares (in shares) | 36,084,141 | |||||||
Issuance of earnout shares | $ 5 | (5) | ||||||
Tax withholdings related to net share settlement of equity awards (in shares) | (468,773) | |||||||
Tax withholdings related to net share settlement of equity awards | (9,313) | (9,313) | ||||||
Forfeited shares (in shares) | (188,972) | |||||||
Warrants exercised (in shares) | 10,621,654 | |||||||
Warrants exercised (restated) | 186,551 | 186,551 | ||||||
Issuance of common stock upon exercise or vesting of equity awards (in shares) | 1,437,673 | |||||||
Net Loss | (595,198) | (595,198) | ||||||
Foreign currency translation adjustment | 657 | 657 | ||||||
Stock-based compensation | 198,213 | 198,213 | ||||||
Restructuring expenses | 11,106 | 11,106 | ||||||
Stockholders' equity, ending balance (in shares) at Dec. 31, 2020 | 202,216,341 | |||||||
Ending Balance at Dec. 31, 2020 | $ (1,573,223) | $ 20 | $ 1,548,786 | $ (3,095,220) | $ (26,809) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Jun. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | ||||||
Net loss from operations | $ (145,096) | $ (301,880) | $ (410,609) | $ (595,198) | $ (395,924) | $ (472,635) |
Adjustments to reconcile net loss to net cash used in operating activities of operations: | ||||||
Amortization of capitalized contract costs | 481,213 | 437,285 | 398,174 | |||
Amortization of customer relationships | 65,908 | 74,538 | 84,174 | |||
Gain on fair value changes of equity securities | 0 | (2,254) | (477) | |||
Expensed offering costs | 0 | 168 | 4,721 | |||
Depreciation and amortization of property, plant and equipment and other intangible assets | 23,710 | 31,617 | 31,734 | |||
Amortization of deferred financing costs and bond premiums and discounts | 3,956 | 4,703 | 5,152 | |||
Loss on warrant derivative liability | 16,717 | 78,919 | 79,893 | 109,250 | 0 | 0 |
Warrant issuance costs | 723 | 723 | 723 | 723 | 0 | 0 |
Loss (gain) on sale or disposal of assets | 2,579 | 1,121 | (49,762) | |||
Loss on early extinguishment of debt | 12,710 | 12,710 | 806 | 14,571 | ||
Stock-based compensation | 10,791 | 58,749 | 117,279 | 198,213 | 4,241 | 2,505 |
Provision for doubtful accounts | 23,778 | 25,043 | 19,405 | |||
Deferred income taxes | (59) | 606 | (2,149) | |||
Restructuring and asset impairment charges | 11,106 | 0 | 0 | |||
Changes in operating assets and liabilities: | ||||||
Accounts and notes receivable, net | (16,869) | (23,202) | (24,684) | (34,486) | (34,008) | |
Inventories | 17,299 | (13,951) | 64,442 | |||
Prepaid expenses and other current assets | (2,336) | (816) | 4,695 | |||
Capitalized contract costs, net | (584,151) | (533,504) | (499,252) | |||
Long-term notes receivables and other assets, net | 27,376 | 20,975 | (29,118) | |||
Right-of-use assets | 12,440 | 7,255 | 0 | |||
Accounts payable | 39,990 | 10,258 | (24,157) | 3,256 | 5,611 | (27,045) |
Accrued payroll and commissions, accrued expenses, and other current and long-term liabilities | (18,384) | 68,394 | 187,508 | 156,784 | 24,899 | 91,469 |
Current and long-term operating lease liabilities | (13,291) | (8,149) | 0 | |||
Deferred revenue | 9,259 | 128,939 | 281,991 | 296,082 | 128,624 | 172,905 |
Net cash provided by (used in) operating activities | (32,869) | 78,751 | 222,809 | 226,664 | (221,592) | (220,499) |
Cash flows from investing activities: | ||||||
Capital expenditures | (25,245) | (10,119) | (19,412) | |||
Proceeds from the sale of intangible assets | 0 | 0 | 53,693 | |||
Proceeds from the sale of capital assets | 18,063 | 878 | 127 | |||
Acquisition of intangible assets | (4,481) | (1,801) | (1,486) | |||
Proceeds from sales of equity securities | 0 | 5,430 | 0 | |||
Net cash (used in) provided by investing activities | (1,901) | (5,666) | (8,704) | (11,663) | (5,612) | 32,922 |
Cash flows from financing activities: | ||||||
Proceeds from notes payable | 1,241,000 | 225,000 | 759,000 | |||
Proceeds from notes payable - related party | 309,000 | 0 | 51,000 | |||
Repayments of notes payable | (1,754,299) | (233,100) | (522,191) | |||
Borrowings from revolving line of credit | 359,200 | 342,500 | 201,000 | |||
Repayment of revolving line of credit | (604,200) | (97,500) | (261,000) | |||
Taxes paid related to net share settlements of stock-based compensation awards | (1,011) | (1,255) | (2,769) | (9,171) | 0 | 0 |
Repayments of finance lease obligations | (7,657) | (9,781) | (12,354) | |||
Proceeds from Mosaic recapitalization | 463,522 | 0 | 0 | |||
Proceeds from warrant exercises | 120,802 | 0 | 0 | |||
Financing costs | (11,191) | 0 | (11,317) | |||
Deferred financing costs | (12,894) | (4,896) | (9,302) | |||
Payment of offering costs | 0 | (2,574) | (3,129) | |||
Return of capital | 0 | (5,435) | 0 | |||
Proceeds from capital contributions | 0 | 4,700 | 4,700 | |||
Net cash provided by financing activities | 161,661 | 171,321 | 76,961 | 94,112 | 218,914 | 196,407 |
Effect of exchange rate changes on cash | 137 | 66 | 71 | |||
Net increase (decrease) in cash and cash equivalents | 309,250 | (8,224) | 8,901 | |||
Cash and cash equivalents: | ||||||
Beginning of period | $ 4,549 | $ 4,549 | $ 4,549 | 4,549 | 12,773 | 3,872 |
End of period | $ 313,799 | $ 4,549 | $ 12,773 |
Consolidated statement of Cash
Consolidated statement of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Supplemental cash flow disclosures: | |||
Income tax paid | $ 537 | $ 661 | $ 330 |
Interest paid | 215,223 | 252,911 | 239,441 |
Supplemental non-cash investing and financing activities: | |||
Finance lease additions | 855 | 10,197 | 4,569 |
Intangible asset acquisitions included within accounts payable, accrued expenses and other current liabilities and other long-term obligations | 167 | 1,536 | 974 |
Capital expenditures included within accounts payable, accrued expenses and other current liabilities | 2,458 | 2,074 | 128 |
Deferred offering costs included within accounts payable | $ 0 | $ 4,206 | $ 440 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of BusinessVivint Smart Home, Inc., 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. |
Restatement of Financial Statem
Restatement of Financial Statements | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Restatement of financial Statements | Restatement of Financial Statements The Company has restated its previously issued consolidated financial statements and related disclosures as of and for the fiscal year ended December 31, 2020 included in its Original Form 10-K (as defined below) filed with the Securities and Exchange Commission (the “SEC”) in order to correct errors resulting from the incorrect application of generally accepted accounting principles relating to previously issued warrants. In addition, the amounts labeled “Restatement Adjustment” include certain other previously identified adjustments that were not previously deemed material to the Affected Periods (as defined below). On April 12, 2021, the SEC Staff released a Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies (“SPACs”), (the “SEC Staff Statement”). The SEC Staff Statement highlighted potential accounting implications of certain terms that are common in warrants issued in connection with the initial public offerings of SPACs. After considering the SEC Staff Statement, the Company re-evaluated its historical accounting for its warrants and concluded it must amend the accounting treatment of the private placement warrants and the public warrants issued in connection with the initial public offering of Mosaic Acquisition Corp (“Mosaic”) and recorded to the Company’s consolidated financial statements as a result of the Company’s merger with Mosaic (the “Merger”) and the reverse recapitalization that occurred on January 17, 2020. The warrant agreement governing the Company’s warrants includes provisions that provide for potential changes to the settlement amounts dependent on the characteristics of the holder of the warrant. Upon review of the statement, the Company’s management further evaluated the warrants under Accounting Standards Codification (“ASC”) Subtopic 815-40, Contracts in Entity’s Own Equity. ASC Section 815-40-15 addresses accounting for and classification of equity-linked financial instruments, including warrants, and states that a warrant may be classified as a component of equity only if, among other things, the warrant is indexed to the issuer’s common stock. Under ASC Section 815-40-15, a warrant is not indexed to the issuer’s common stock if the terms of the warrant require an adjustment to the exercise price upon a specified event and that event is not an input to the fair value of the warrant with a fixed exercise price and fixed number of underlying shares. Based on management’s evaluation, the Company’s audit committee (the “Audit Committee”), in consultation with management concluded that the Company’s warrants are not indexed to the Company’s ordinary shares in the manner contemplated by ASC Section 815-40-15 because the characteristics of the holder of the instrument is not an input into the pricing of a fixed-for-fixed option on equity shares. A summary of the accounting impact of these adjustments to the Company’s consolidated financial statements as of and for the related interim periods is provided below. In addition, amounts were restated in the following Notes as a result of these adjustments: Note 3, Significant Accounting Policie s Note 7, Business Combinations Note 8, Balance Sheet Components Note 11, Financial Instruments Note 13, Income Taxes Note 14, Stock-Based Compensation and Equity Note 18, Segment Reporting and Business Concentrations Note 20, Basic and Diluted Net Loss Per Share The following tables reflect the impact of the restatement adjustments to the specific line items presented in the Company’s previously reported Balance Sheets, Statements of Operations and Statements of Cash Flows for the fiscal year ended December 31, 2020 and the quarterly periods ended March 31, 2020, June 30, 2020, September 30, 2020 and December 31, 2020 (the “Affected Periods”) (in thousands, except share and per-share amounts): Consolidated Balance Sheets As of December 31, 2020 As Previously Reported Restatement Adjustment As Restated Current Assets: Accounts and notes receivable, net of allowance $ 65,572 $ (875) $ 64,697 Total current assets 441,008 (875) 440,133 Total assets 2,877,493 (875) 2,876,618 Current Liabilities: Accounts payable 81,364 4,292 85,656 Accrued expenses and other current liabilities 239,755 7,569 247,324 Deferred revenue 323,494 (2,351) 321,143 Total current liabilities 757,547 9,510 767,057 Deferred revenue, net of current portion 618,401 (2,803) 615,598 Other long-term obligations 119,374 1,861 121,235 Warrant derivative liabilities — 75,531 75,531 Deferred income tax liabilities 1,265 903 2,168 Total liabilities 4,364,839 85,002 4,449,841 Additional paid-in capital 1,523,705 25,081 1,548,786 Accumulated deficit (2,984,262) (110,958) (3,095,220) Total stockholders’ deficit (1,487,346) (85,877) (1,573,223) Total liabilities and stockholders’ deficit 2,877,493 (875) 2,876,618 Consolidated Statement of Operations Year ended December 31, 2020 As Previously Reported Restatement Adjustment As Restated Recurring and other revenue $ 1,260,730 $ (164) $ 1,260,566 Operating expenses 352,585 (242) 352,343 Selling expenses 302,547 (260) 302,287 General and administrative expenses 267,130 (795) 266,335 Total costs and expenses 1,514,034 (1,297) 1,512,737 Loss from operations (253,304) 1,133 (252,171) Change in fair value of warrant liabilities — 109,250 109,250 Other loss, net 9,104 1,369 10,473 Loss before income taxes (482,875) (109,486) (592,361) Income tax expense 1,365 1,472 2,837 Net loss (484,240) (110,958) (595,198) Net loss per share attributable to common stockholders: Basic and diluted $ (2.70) $ (0.62) $ (3.32) Consolidated Statements of Cash Flows Year ended December 31, 2020 As Previously Reported Restatement Adjustment As Restated Net loss from operations $ (484,240) $ (110,958) $ (595,198) Adjustments to reconcile net loss to net cash used in operating activities of operations: Loss on warrant derivative — 109,250 109,250 Warrant issuance costs — 723 723 Stock-based compensation 199,510 (1,297) 198,213 Deferred income taxes (962) 903 (59) Changes in operating assets and liabilities: Accounts and notes receivable, net (25,559) 875 (24,684) Accounts payable (1,036) 4,292 3,256 Accrued payroll and commissions, accrued expenses, and other current and long-term liabilities 155,418 1,366 156,784 Deferred revenue 301,236 (5,154) 296,082 Net cash provided by operating activities 226,664 — 226,664 Net cash used in investing activities (11,663) — (11,663) Net cash provided by financing activities 94,112 — 94,112 Unaudited Condensed Consolidated Statements of Operations Three Months Ended December 31, 2020 As Previously Reported Restatement Adjustment As Restated Revenues: Recurring and other revenue $ 332,536 $ (113) $ 332,423 Operating expenses 95,218 (603) 94,615 Selling expenses 103,871 2,903 106,774 General and administrative expenses 86,432 788 87,220 Total costs and expenses 432,963 3,088 436,051 Loss from operations (100,427) (3,201) (103,628) Change in fair value of warrant liabilities — 29,357 29,357 Other income, net (277) (591) (868) Loss before income taxes (150,109) (31,967) (182,076) Income tax expense 1,041 1,472 2,513 Net loss (151,150) (33,439) (184,589) Net loss attributable per share to common stockholders: Basic and diluted $ (0.76) $ (0.17) $ (0.93) Unaudited Condensed Consolidated Balance Sheets As of September 30, 2020 As Previously Reported Restatement Adjustment As Restated Current Assets: Accounts and notes receivable, net $ 72,194 $ (377) $ 71,817 Total current assets 442,211 (377) 441,834 Total assets 2,924,679 (377) 2,924,302 Current Liabilities: Accounts payable 53,265 4,476 57,741 Accrued expenses and other current liabilities 214,132 (1,166) 212,966 Deferred revenue 310,043 (1,572) 308,471 Total current liabilities 742,482 1,738 744,220 Deferred revenue, net of current portion 614,092 (1,172) 612,920 Other long-term obligations 127,767 345 128,112 Warrant derivative liabilities — 79,325 79,325 Total liabilities 4,361,949 80,236 4,442,185 Additional paid-in capital 1,424,110 (3,094) 1,421,016 Accumulated deficit (2,833,112) (77,519) (2,910,631) Total stockholders’ deficit (1,437,270) (80,613) (1,517,883) Total liabilities and stockholders’ deficit 2,924,679 (377) 2,924,302 Unaudited Condensed Consolidated Statements of Operations Three Months Ended September 30, 2020 As Previously Reported Restatement Adjustment As Restated Recurring and other revenue $ 318,960 $ 2,054 $ 321,014 Operating expenses 92,016 293 92,309 Selling expenses 79,716 (36) 79,680 General and administrative expenses 68,297 426 68,723 Total costs and expenses 383,994 683 384,677 Loss from operations (65,034) 1,371 (63,663) Change in fair value of warrant liabilities — 974 974 Other income, net (8,286) 1,187 (7,099) Loss before income taxes (107,709) (790) (108,499) Net loss (107,939) (790) (108,729) Net loss attributable per share to common stockholders: Basic and diluted $ (0.58) $ — $ (0.58) Unaudited Condensed Consolidated Statements of Operations Nine Months Ended September 30, 2020 As Previously Reported Restatement Adjustment As Restated Recurring and other revenue $ 928,194 $ (51) $ 928,143 Operating expenses 257,367 361 257,728 Selling expenses 198,676 (3,163) 195,513 General and administrative expenses 180,698 (1,583) 179,115 Total costs and expenses 1,081,071 (4,385) 1,076,686 Loss from operations (152,877) 4,334 (148,543) Change in fair value of warrant liabilities — 79,893 79,893 Other expense, net 9,381 1,960 11,341 Loss before income taxes (332,766) (77,519) (410,285) Net loss (333,090) (77,519) (410,609) Net loss attributable per share to common stockholders: Basic and diluted $ (1.93) $ (0.45) $ (2.38) Unaudited Condensed Consolidated Statement of Cash Flows Nine months ended September 30, 2020 As Previously Reported Restatement Adjustment As Restated Net loss from operations $ (333,090) $ (77,519) $ (410,609) Adjustments to reconcile net loss to net cash used in operating activities of operations: Loss on warrant derivative — 79,893 79,893 Warrant issuance costs — 723 723 Stock-based compensation 121,664 (4,385) 117,279 Changes in operating assets and liabilities: Accounts and notes receivable, net (23,579) 377 (23,202) Accounts payable (28,633) 4,476 (24,157) Accrued payroll and commissions, accrued expenses, and other current and long-term liabilities 185,560 1,948 187,508 Deferred revenue 284,735 (2,744) 281,991 Net cash provided by operating activities 220,040 2,769 222,809 Net cash used in investing activities (8,704) — (8,704) Taxes paid related to net share settlements of stock-based compensation awards — (2,769) (2,769) Net cash provided by financing activities 79,730 (2,769) 76,961 Unaudited Condensed Consolidated Balance Sheets As of June 30, 2020 As Previously Reported Restatement Adjustment As Restated Current Assets: Accounts and notes receivable, net $ 70,879 $ (59) $ 70,820 Total current assets 418,406 (59) 418,347 Total assets 2,829,948 (59) 2,829,889 Current Liabilities: Accounts payable 90,708 3,002 93,710 Accrued expenses and other current liabilities 178,196 (1,146) 177,050 Deferred revenue 265,283 2,080 267,363 Total current liabilities 636,376 3,936 640,312 Deferred revenue, net of current portion 501,743 (1,389) 500,354 Other long-term obligations 108,684 (451) 108,233 Warrant derivative liabilities — 88,080 88,080 Total liabilities 4,234,822 90,176 4,324,998 Additional paid-in capital 1,349,158 (13,506) 1,335,652 Accumulated deficit (2,725,173) (76,729) (2,801,902) Total stockholders’ deficit (1,404,874) (90,235) (1,495,109) Total liabilities and stockholders’ deficit 2,829,948 (59) 2,829,889 Unaudited Condensed Consolidated Statements of Operations Three Months Ended June 30, 2020 As Previously Reported Restatement Adjustment As Restated Revenues: Recurring and other revenue $ 306,002 $ (2,105) $ 303,897 Operating expenses 82,011 248 82,259 Selling expenses 64,733 377 65,110 General and administrative expenses 59,383 586 59,969 Total costs and expenses 346,302 1,211 347,513 Loss from operations (40,300) (3,316) (43,616) Change in fair value of warrant liabilities — 62,202 62,202 Other income, net (8,638) 4,239 (4,399) Loss before income taxes (86,145) (69,757) (155,902) Net loss (87,027) (69,757) (156,784) Net loss attributable per share to common stockholders: Basic and diluted $ (0.49) $ (0.39) $ (0.88) Unaudited Condensed Consolidated Statements of Operations Six Months Ended June 30, 2020 As Previously Reported Restatement Adjustment As Restated Revenues: Recurring and other revenue $ 609,234 $ (2,105) $ 607,129 Operating expenses 165,351 68 165,419 Selling expenses 118,960 (3,127) 115,833 General and administrative expenses 112,401 (2,009) 110,392 Total costs and expenses 697,077 (5,068) 692,009 Loss from operations (87,843) 2,963 (84,880) Change in fair value of warrant liabilities — 78,919 78,919 Other expense, net 17,667 773 18,440 Loss before income taxes (225,057) (76,729) (301,786) Net loss (225,151) (76,729) (301,880) Net loss attributable per share to common stockholders: Basic and diluted $ (1.37) $ (0.46) $ (1.83) Unaudited Condensed Consolidated Statement of Cash Flows Six months ended June 30, 2020 As Previously Reported Restatement Adjustment As Restated Net loss from operations $ (225,151) $ (76,729) $ (301,880) Adjustments to reconcile net loss to net cash used in operating activities of operations: Loss on warrant derivative — 78,919 78,919 Warrant issuance costs — 723 723 Stock-based compensation 63,817 (5,068) 58,749 Changes in operating assets and liabilities: — Accounts and notes receivable, net (16,928) 59 (16,869) Accounts payable 7,256 3,002 10,258 Accrued payroll and commissions, accrued expenses, and other current and long-term liabilities 68,736 (342) 68,394 Deferred revenue 128,248 691 128,939 Net cash provided by operating activities 77,496 1,255 78,751 Net cash used in investing activities (5,666) — (5,666) Taxes paid related to net share settlements of stock-based compensation awards — (1,255) (1,255) Net cash provided by financing activities 172,576 (1,255) 171,321 Unaudited Condensed Consolidated Balance Sheets As of March 31, 2020 As Previously Reported Restatement Adjustment As Restated Total assets $ 2,670,423 $ — $ 2,670,423 Current Liabilities: Accounts payable 102,630 2,006 104,636 Accrued expenses and other current liabilities 158,308 (1,506) 156,802 Deferred revenue 238,363 (924) 237,439 Total current liabilities 564,627 (424) 564,203 Notes payable, net 2,438,918 (4,239) 2,434,679 Deferred revenue, net of current portion 409,497 (23) 409,474 Other long-term obligations 78,612 497 79,109 Warrant derivative liabilities — 56,811 56,811 Total liabilities 4,109,737 52,622 4,162,359 Additional paid-in capital 1,228,709 (45,650) 1,183,059 Accumulated deficit (2,638,146) (6,972) (2,645,118) Total stockholders’ deficit (1,439,314) (52,622) (1,491,936) Total liabilities and stockholders’ deficit 2,670,423 — 2,670,423 Unaudited Condensed Consolidated Statements of Operations Three Months Ended March 31, 2020 As Previously Reported Restatement Adjustment As Restated Operating expenses $ 83,340 $ (180) $ 83,160 Selling expenses 54,227 (3,504) 50,723 General and administrative expenses 53,018 (2,595) 50,423 Total costs and expenses 350,775 (6,279) 344,496 Loss from operations (47,543) 6,279 (41,264) Change in fair value of warrant liabilities — 16,717 16,717 Other expense, net 26,305 (3,466) 22,839 Loss before income taxes (138,912) (6,972) (145,884) Net loss (138,124) (6,972) (145,096) Net loss attributable per share to common stockholders: Basic and diluted $ (0.91) $ (0.05) $ (0.96) Unaudited Condensed Consolidated Statement of Cash Flows Three months ended March 31, 2020 As Previously Reported Restatement Adjustment As Restated Net loss from operations $ (138,124) $ (6,972) $ (145,096) Adjustments to reconcile net loss to net cash used in operating activities of operations: Loss on warrant derivative — 16,717 16,717 Warrant issuance costs — 723 723 Loss on early extinguishment of debt 16,949 (4,239) 12,710 Stock-based compensation 17,070 (6,279) 10,791 Changes in operating assets and liabilities: Accounts payable 37,984 2,006 39,990 Accrued payroll and commissions, accrued expenses, and other current and long-term liabilities (18,386) 2 (18,384) Deferred revenue 10,206 (947) 9,259 Net cash used in operating activities (33,880) 1,011 (32,869) Net cash used in investing activities (1,901) — (1,901) Taxes paid related to net share settlements of stock-based compensation awards — (1,011) (1,011) Net cash provided by financing activities 162,672 (1,011) 161,661 |
Significant Accounting Policies
Significant Accounting Policies (Restated) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies (Restated) | Significant Accounting Policies (Restated) 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. On January 17, 2020 (the “Closing Date”), the Company consummated the previously announced merger pursuant to that certain Agreement and Plan of Merger, dated September 15, 2019, by and among the Company, Merger Sub, and Legacy Vivint Smart Home, as amended by Amendment No. 1 to the Agreement and Plan of Merger, dated as of December 18, 2019, by and among the Company, Merger Sub and Legacy Vivint Smart Home. (See Note 5 “Business Combination” for further discussion). Pursuant to the terms of the Merger Agreement, a business combination between the Company and Legacy Vivint Smart Home was effected through the merger of Merger Sub with and into Legacy Vivint Smart Home, with Legacy Vivint Smart Home surviving as the surviving company (the “Business Combination”). Notwithstanding the legal form of the Business Combination pursuant to the Merger Agreement, the Business Combination is accounted for as a reverse recapitalization in accordance with GAAP. Under this method of accounting, Vivint Smart Home, Inc. is treated as the acquired company and Legacy Vivint Smart Home is treated as the acquirer for financial statement reporting and accounting purposes. Legacy Vivint Smart Home has been determined to be the accounting acquirer based on evaluation of the following facts and circumstances: • Legacy Vivint Smart Home’s shareholders prior to the Business Combination have the greatest voting interest in the combined entity; • Legacy Vivint Smart Home’s directors represent the majority of the Vivint Smart Home board of directors; • Legacy Vivint Smart Home’s senior management is the senior management of Vivint Smart Home; and • Legacy Vivint Smart Home is the larger entity based on historical total assets and revenues. As a result of Legacy Vivint Smart Home being the accounting acquirer, the financial reports filed with the SEC by the Company subsequent to the Business Combination are prepared “as if” Legacy Vivint Smart Home is the predecessor and legal successor to the Company. The historical operations of Legacy Vivint Smart Home are deemed to be those of the Company. Thus, the financial statements included in this report reflect (i) the historical operating results of Legacy Vivint Smart Home prior to the Business Combination; (ii) the combined results of the Company and Legacy Vivint Smart Home following the Business Combination on January 17, 2020; (iii) the assets and liabilities of Legacy Vivint Smart Home at their historical cost; and (iv) the Company’s equity structure for all periods presented. The recapitalization of the number of shares of common stock attributable to the purchase of Legacy Vivint Smart Home in connection with the Business Combination is reflected retroactively to the earliest period presented and will be utilized for calculating earnings per share in all prior periods presented. No step-up basis of intangible assets or goodwill was recorded in the Business Combination transaction consistent with the treatment of the transaction as a reverse recapitalization of Legacy Vivint Smart Home. In connection with the Business Combination, Mosaic Acquisition Corp. changed its name to Vivint Smart Home, Inc. The Company’s Common Stock is now listed on the NYSE under the symbol “VVNT”. Prior to the Business Combination, the Company neither engaged in any operations nor generated any revenue. Until the Business Combination, based on the Company’s business activities, it was a “shell company” as defined under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Vivint Flex Pay The Vivint Flex Pay plan (“Vivint Flex Pay”) became the Company’s primary equipment financing model beginning in March 2017. Under Vivint Flex Pay, customers pay separately for the products (including control panel, security peripheral equipment, smart home equipment, and related installation) (“Products”) and Vivint’s smart home and security services (“Services”). The customer has the following three ways to pay for the Products: (1) qualified customers in the United States may finance the purchase of Products through third-party financing providers (“Consumer Financing Program”) (2) the Company offers a limited number of customers not eligible for the Consumer Financing Program, but who qualify under the Company’s underwriting criteria, the option to enter into a retail installment contract (“RIC”) directly with Vivint, or (3) customers may purchase the Products at the outset of the service contract by check, automatic clearing house payments (“ACH”), credit or debit card. Although customers pay separately for Products and Services under the Vivint Flex Pay plan, the Company has determined that the sale of Products and Services are one single performance obligation. 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 and estimated write-offs on the RICs and the present value of expected payments due to the third-party financing provider under the Consumer Financing Program. Under the Consumer Financing Program, qualified customers are eligible for loans provided by third-party financing providers of up to $4,000. Most loan terms are determined based on the customer’s credit quality. The annual percentage rates on these loans is either 0% or 9.99%, depending on the customer's credit quality, and are either installment or revolving loans with a 42- or 60-month term. For certain third-party provider loans, the Company pays a monthly fee based on either the average daily outstanding balance of the loans or the number of outstanding loans, depending on the third-party financing provider and the Company shares liability for credit losses, with the Company being responsible for between 5% and 100% of lost principal balances. Additionally, the Company is responsible for reimbursing certain third-party financing providers for merchant transaction fees associated with the loans. Because of the nature of these provisions, the Company records a derivative liability at its fair value when the third-party financing provider originates loans to customers, which reduces the amount of estimated revenue recognized on the provision of the services. The derivative liability is reduced as payments are made by the Company to the third-party financing provider. Subsequent changes to the fair value of the derivative liability are realized through other expenses (income), net in the Consolidated Statement of Operations. (See Note 11). For other third-party loans, the Company receives net proceeds (net of fees and expected losses) for which the Company has no further obligation to the third-party. The Company records these net proceeds to deferred revenue. Retail Installment Contract Receivables For subscribers that enter into a RIC to finance the purchase of Products and related installation, the Company records a receivable for the amount financed. Gross RIC receivables are reduced for (i) expected write-offs of uncollectible balances over the term of the RIC and (ii) a present value discount of the expected cash flows using a risk adjusted market interest rate. Therefore, the RIC receivables equal the present value of the expected cash flows to be received by the Company over the term of the RIC, evaluated on a pool basis. RICs are pooled based on customer credit quality, contract length and geography. At the time of installation, the Company records a long-term note receivable within long-term notes receivables and other assets, net on the consolidated balance sheets for the present value of the receivables that are expected to be collected beyond 12 months of the reporting date. The unbilled receivable amounts that are expected to be collected within 12 months of the reporting date are included as a short-term notes receivable within accounts and notes receivable, net on the consolidated balance sheets. The billed amounts of notes receivables are included in accounts receivable within accounts and notes receivable, net on the consolidated balance sheets. The Company imputes the interest on the RIC receivable using a risk adjusted market interest rate and records it as a reduction to deferred revenue and as an adjustment to the face amount of the related receivable. The risk adjusted interest rate considers a number of factors, including credit quality of the subscriber base and other qualitative considerations such as macro-economic factors. The imputed interest income is recognized over the term of the RIC contract as recurring and other revenue on the consolidated statements of operations. When the Company determines that there are RIC receivables that have become uncollectible, it records an adjustment to the allowance and reduces the related note receivable balance. On a regular basis, the Company also assesses the expected remaining cash flows based on historical RIC write-off trends, current market conditions and both Company and third-party forecast data. In accordance with Topic 326 (see Recently Adopted Accounting Standards below), if the Company determines there is a change in expected remaining cash flows, the total amount of this change for all RICs is recorded in the current period to the provision for credit losses, which is included in general and administrative expenses in the accompanying unaudited condensed consolidated statements of operations. Account balances are written-off if collection efforts are unsuccessful and future collection is unlikely based on the length of time from the day accounts become past due. (See Note 5). Revenue Recognition The Company offers its customers smart home services combining Products, including a proprietary control panel, door and window sensors, door locks, security cameras and smoke alarms; installation; and a proprietary back-end cloud platform software and Services. These together create an integrated system that allows the Company’s customers to monitor, control and protect their home (“Smart Home Services”). The Company’s customers are buying this integrated system that provides them with these Smart Home Services. The number and type of Products purchased by a customer depends on their desired functionality. Because the Products and Services included in the customer’s contract are integrated and highly interdependent, and because they must work together to deliver the Smart Home Services, the Company has concluded that installed Products, related installation and Services contracted for by the customer are generally not distinct within the context of the contract and, therefore, constitute a single, combined performance obligation. Revenues for this single, combined performance obligation are recognized on a straight-line basis over the customer’s contract term, which is the period in which the parties to the contract have enforceable rights and obligations. The Company has determined that certain contracts that do not require a long-term commitment for monitoring services by the customer contain a material right to renew the contract, because the customer does not have to purchase Products upon renewal. Proceeds allocated to the material right are recognized over the period of benefit, which is generally three years. The majority of the Company’s subscription contracts are between three Sales of Products and other one-time fees such as service or installation fees are invoiced to the customer at the time of sale. Revenues for the wireless internet service that were provided by the Company’s former wireless internet business (“Wireless”) and any Products or Services that are considered separate performance obligations are recognized when those Products or Services are delivered. Taxes collected from customers and remitted to governmental authorities are not included in revenue. Payments received or amounts billed in advance of revenue recognition are reported as deferred revenue. Deferred Revenue The Company's deferred revenues primarily consist of amounts for sales (including upfront proceeds) of Smart Home Services. Deferred revenues are recognized over the term of the related performance obligation, which is generally three Accounts Receivable (Restated) Accounts receivable consists primarily of amounts due from customers for recurring monthly monitoring Services and the billed portion of RIC receivables. The accounts receivable are recorded at invoiced amounts and are non-interest bearing and are included within accounts and notes receivable, net on the consolidated balance sheets. Accounts receivable totaled $19.8 million and $20.5 million and December 31, 2020 and 2019, respectively net of the allowance for doubtful accounts of $9.9 million and $8.1 million at December 31, 2020 and 2019, respectively. The Company estimates this allowance based on historical collection experience and subscriber attrition rates. In accordance with Topic 326, the Company estimates this allowance based on historical collection experience, subscriber attrition rates, current market conditions and both Company and third-party forecast data. When the Company determines that there are accounts receivable that are uncollectible, they are charged off against the allowance for doubtful accounts. The provision for doubtful accounts is included in general and administrative expenses in the accompanying unaudited condensed consolidated statements of operations and totaled $23.8 million and $25.0 million for the years ended December 31, 2020 and 2019, respectively. The changes in the Company’s allowance for accounts receivable were as follows for the periods ended (in thousands): Year ended December 31, 2020 2019 2018 Beginning balance $ 8,118 $ 5,594 $ 5,356 Provision for doubtful accounts 23,778 25,043 19,405 Write-offs and adjustments (21,985) (22,519) (19,167) Balance at end of period $ 9,911 $ 8,118 $ 5,594 Restructuring and Asset Impairment Charges Restructuring and asset impairment charges represent expenses incurred in relation to activities to exit or dispose of portions of the Company's business that do not qualify as discontinued operations. Liabilities associated with restructuring are measured at their fair value when the liability is incurred. Expenses for related termination benefits are recognized at the date the Company notifies the employee, unless the employee must provide future service, in which case the benefits are expensed ratably over the future service period. Liabilities related to termination of a contract are measured and recognized at fair value when the contract does not have any future economic benefit to the entity and the fair value of the liability is determined based on the present value of the remaining obligation. The Company expenses all other costs related to an exit or disposal activity as incurred (See Note 12). Principles of Consolidation The accompanying consolidated financial statements include the accounts of Vivint Smart Home, Inc. and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Capitalized Contract Costs Capitalized contract costs represent the costs directly related and incremental to the origination of new contracts, modification of existing contracts or to the fulfillment of the related subscriber contracts. These include commissions, other compensation and related costs incurred directly for the origination and installation of new or upgraded customer contracts, as well as the cost of Products installed in the customer home at the commencement or modification of the contract. The Company calculates amortization by accumulating all deferred contract costs into separate portfolios based on the initial month of service and amortizes those deferred contract costs on a straight-line basis over the expected period of benefit that the Company has determined to be five years, consistent with the pattern in which the Company provides services to its customers. The Company believes this pattern of amortization appropriately reduces the carrying value of the capitalized contract costs over time to reflect the decline in the value of the assets as the remaining period of benefit for each monthly portfolio of contracts decreases. The period of benefit of five years is longer than a typical contract term because of anticipated contract renewals. The Company applies this period of benefit to its entire portfolio of contracts. The Company updates its estimate of the period of benefit periodically and whenever events or circumstances indicate that the period of benefit could change significantly. Such changes, if any, are accounted for prospectively as a change in estimate. Amortization of capitalized contract costs is included in “Depreciation and Amortization” on the consolidated statements of operations. The carrying amount of the capitalized contract costs is periodically reviewed for impairment. In performing this review, the Company considers whether the carrying amount of the capitalized contract costs will be recovered. In estimating the amount of consideration the Company expects to receive in the future related to capitalized contract costs, the Company considers factors such as attrition rates, economic factors, and industry developments, among other factors. If it is determined that capitalized contract costs are impaired, an impairment loss is recognized for the amount by which the carrying amount of the capitalized contract costs and the anticipated costs that relate directly to providing the future services exceed the consideration that has been received and that is expected to be received in the future. Contract costs not directly related and incremental to the origination of new contracts, modification of existing contracts or to the fulfillment of the related subscriber contracts are expensed as incurred. These costs include those associated with housing, marketing and recruiting, non-direct lead generation costs, certain portions of sales commissions and residuals, overhead and other costs considered not directly and specifically tied to the origination of a particular subscriber. On the consolidated statement of cash flows, capitalized contract costs are classified as operating activities and reported as “Capitalized contract costs - deferred contract costs” as these assets represent deferred costs associated with subscriber contracts. Cash and Cash Equivalents Cash and cash equivalents consists of highly liquid investments with remaining maturities when purchased of three months or less. Inventories Inventories, which are comprised of smart home and security system equipment and parts are stated at the lower of cost or net realizable value with cost determined under the first-in, first-out (FIFO) method. Inventories sold to customers as part of a smart home and security system are generally capitalized as contract costs. The Company adjusts the inventory balance based on anticipated obsolescence, usage and historical write-offs. Property, Plant and Equipment and Long-lived Assets Property, plant and equipment are stated at cost and depreciated on the straight-line method over the estimated useful lives of the assets or the lease term for assets under finance leases, whichever is shorter. Intangible assets with definite lives are amortized over the remaining estimated economic life of the underlying technology or relationships, which ranges from 2 to 10 years. Definite-lived intangible assets are amortized on the straight-line method over the estimated useful life of the asset or in a pattern in which the economic benefits of the intangible asset are consumed. Amortization expense associated with leased assets is included in depreciation expense. Routine repairs and maintenance are charged to expense as incurred. The Company reviews long-lived assets, including property, plant and equipment, capitalized contract costs, and definite-lived intangibles for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company considers whether or not indicators of impairment exist on a regular basis and as part of each quarterly and annual financial statement close process. Factors the Company considers in determining whether or not indicators of impairment exist include market factors and patterns of customer attrition. If indicators of impairment are identified, the Company estimates the fair value of the assets. An impairment loss is recognized if the carrying amount of a long-lived asset is not recoverable and exceeds its fair value. The Company conducts an indefinite-lived intangible impairment analysis annually as of October 1, and as necessary if changes in facts and circumstances indicate that the fair value of the Company’s indefinite-lived intangibles may be less than the carrying amount. When indicators of impairment do not exist and certain accounting criteria are met, the Company is able to evaluate indefinite-lived intangible impairment using a qualitative approach. When necessary, the Company’s quantitative impairment test consists of two steps. The first step requires that the Company compare the estimated fair value of its indefinite-lived intangibles to the carrying value. If the fair value is greater than the carrying value, the intangibles are not considered to be impaired and no further testing is required. If the fair value is less than the carrying value, an impairment loss in an amount equal to the difference is recorded. During the years ended December 31, 2020, 2019 and 2018, no impairments to long-lived assets or intangibles were recorded. The Company’s depreciation and amortization included in the consolidated statements of operations consisted of the following (in thousands): Year ended December 31, 2020 2019 2018 Amortization of capitalized contract costs $ 481,213 $ 437,285 $ 398,174 Amortization of definite-lived intangibles 69,465 80,468 90,945 Depreciation of property, plant and equipment 20,153 25,687 24,963 Total depreciation and amortization $ 570,831 $ 543,440 $ 514,082 Leases Effective January 1, 2019, the Company accounts for leases under ASU 2016-02, “Leases (Topic 842)”. Under Topic 842, the Company determines if an arrangement is a lease at inception. Lease right-of-use (“ROU”) assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. In determining the present value of lease payments, the Company uses the implicit rate when available. When implicit rates are not available, the Company uses an incremental borrowing rate based on the information available at commencement date. The lease ROU asset also includes any lease payments made and is reduced by lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company does not record lease ROU assets and liabilities for leases with terms of 12 months or less. Leases are classified as either operating or finance at lease inception. Operating lease assets and liabilities and finance lease liabilities are stated separately on the consolidated balance sheets. Finance lease assets are included in property, plant and equipment, net on the consolidated balance sheets. The Company has lease agreements with lease and non-lease components. For facility type leases, the Company separates the lease and non-lease components. Generally, the Company accounts for the lease and non-lease components as a single lease component for all other class of leases. Prior to the adoption of Topic 842, the Company's leases were classified as either operating or capital leases. Capital lease liabilities were stated separately on the consolidated balance sheets and capital lease assets were included in property, plant and equipment, net on the consolidated balance sheets. Operating leases were not recognized in the balance sheet. Capital lease balances are presented on the same lines as finance lease balances for comparative prior periods in the unaudited consolidated financial statements. See Note 16 "Leases" for additional information related to the impact of adopting Topic 842. Deferred Financing Costs Certain costs incurred in connection with obtaining debt financing are deferred and amortized utilizing the straight-line method, which approximates the effective-interest method, over the life of the related financing. Deferred financing costs associated with obtaining the Company’s revolving credit facility are amortized over the amended maturity dates discussed in Note 6. Deferred financing costs associated with the revolving credit facility reported in the accompanying consolidated balance sheets as deferred financing costs, net at December 31, 2020 and 2019 were $1.7 million and $1.1 million, net of accumulated amortization of $11.0 million and $10.6 million, respectively. Deferred financing costs included in the accompanying consolidated balance sheets within notes payable, net at December 31, 2020 and 2019 were $27.2 million and $27.0 million, net of accumulated amortization of $70.9 million and $63.5 million, respectively. Amortization expense on deferred financing costs recognized and included in interest expense in the accompanying consolidated statements of operations totaled $7.9 million, $9.8 million and $10.4 million for the years ended December 31, 2020, 2019 and 2018, respectively. Residual Income Plans The Company has a program that allows certain third-party sales channel partners to receive additional compensation based on the performance of the underlying contracts they create (the “Channel Partner Plan”). The Company also has a residual sales compensation plan (the “Residual Plan”) under which the Company's sales personnel (each, a “Plan Participant”) receive compensation based on the performance of certain underlying contracts they created in prior years. For both the Channel Partner Plan and Residual Plan, the Company calculates the present value of the expected future residual payments and records a liability for this amount in the period the subscriber account is originated. These costs are recorded to capitalized contract costs. The Company monitors actual payments and customer attrition on a periodic basis and, when necessary, makes adjustments to the liability. The current portion of the liability included in accrued payroll and commissions was $4.1 million and $4.5 million as of December 31, 2020 and 2019, respectively, and the noncurrent portion included in other long-term obligations was $23.8 million and $20.7 million at December 31, 2020 and 2019, respectively. Stock-Based Compensation The Company measures compensation cost based on the grant-date fair value of the award and recognizes that cost over the requisite service period of the awards (See Note 14). Advertising Expense Advertising costs are expensed as incurred. Advertising costs were approximately $70.9 million, $60.4 million and $47.2 million for the years ended December 31, 2020, 2019 and 2018, respectively. Income Taxes The Company accounts for income taxes based on the asset and liability method. Under the asset and liability method, deferred tax assets and deferred tax liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Valuation allowances are established when necessary to reduce deferred tax assets when it is determined that it is more likely than not that some portion, or all, of the deferred tax asset will not be realized. The Company recognizes the effect of an uncertain income tax position on the income tax return at the largest amount that is more likely than not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. The Company’s policy for recording interest and penalties is to record such items as a component of the provision for income taxes. Changes in tax laws and rates could also affect recorded deferred tax assets and liabilities in the future. The Company records the effect of a tax rate or law change on the Company’s deferred tax assets and liabilities in the period of enactment. Future tax rate or law changes could have a material effect on the Company’s results of operations, financial condition, or cash flows (See Note 13). Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist principally of receivables and cash. At times during the year, the Company maintains cash balances in excess of insured limits. The Company is not dependent on any single customer or geographic location. The loss of a customer would not adversely impact the Company’s operating results or financial position. Concentrations of Supply Risk As of December 31, 2020, approximately 92% of the Company’s installed panels were the Company's proprietary SkyControl or Smart Hub panels, 8% were 2GIG Go!Control panels. The loss of the Company’s SkyControl panel supplier could potentially impact its operating results or financial position. Fair Value Measurement Fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities subject to on-going fair value measurement are categorized and disclosed into one of three categories depending on observable or unobservable inputs employed in the measurement. These two types of inputs have created the following fair value hierarchy: 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, 2020, 2019, and 2018. 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 The Company conducts a goodwill impairment analysis annually in the fourth fiscal quarter, as of October 1, and as necessary if changes in facts and circumstances indicate that the fair value of the Company’s reporting units may be less than their carrying amounts. When indicators of impairment do not exist and certain accounting criteria are met, the Company is able to evaluate goodwill impairment using a qualitative approach. When necessary, the Company’s quantitative goodwill impairment test consists of two steps. The first step requires that the Company compare the estimated fair value of its reporting units to the carrying value of the reporting unit’s net assets, including goodwill. If the fair value of the reporting unit is greater than the carrying value of its net assets, goodwill is not considered to be impaired and no further testing is required. If the fair value of the reporting unit is less than the carrying value of its net assets, the Company would be required to complete the |
Revenue and Capitalized Contrac
Revenue and Capitalized Contract Costs | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue and Capitalized Contract Costs | Revenue and Capitalized Contract Costs Customers are typically invoiced for Smart Home Services in advance or at the time the Company delivers the related Smart Home Services. The majority of customers pay at the time of invoice via credit card, debit card or ACH. Deferred revenue relates to the advance consideration received from customers, which precedes the Company’s satisfaction of the associated performance obligation. The Company’s deferred revenues primarily result from customer payments received in advance for recurring monthly monitoring and other Smart Home Services, or other one-time fees, because these performance obligations are satisfied over time. The Company also provides its customers with service warranties associated with product replacement and related services for the first 30 days after the generation and installation of new or modified customer contracts. These are considered a separate performance obligation and are determined to be satisfied upon completion of the warranty period. As of December 31, 2020 and 2019, the Company had warranty service reserves of $5.7 million and $8.7 million, respectively, which are included in accrued expenses and other current liabilities on the consolidated balance sheets. During the years ended December 31, 2020 and 2019, the Company recognized revenues of $235.9 million and $225.9 million, respectively, that were included in the deferred revenue balance as of December 31, 2019 and 2018, respectively. Transaction Price Allocated to the Remaining Performance Obligations As of December 31, 2020, approximately $3.0 billion of revenue is expected to be recognized from remaining performance obligations for subscription contracts. The Company expects to recognize approximately 61% of the revenue related to these remaining performance obligations over the next 24 months, with the remaining balance recognized over an additional 36 months. Timing of Revenue Recognition The Company considers Products, related installation, and its proprietary back-end cloud platform software and services an integrated system that allows the Company’s customers to monitor, control and protect their homes. These Smart Home Services are accounted for as a single performance obligation that is recognized over the customer’s contract term, which is generally three Capitalized Contract Costs Capitalized contract costs generally include commissions, other compensation and related costs paid directly for the generation and installation of new or modified customer contracts, as well as the cost of Products installed in the customer home at the commencement or modification of the contract. The Company defers and amortizes these costs for new or modified subscriber contracts on a straight-line basis over the expected period of benefit of five years. |
Retail Installment Contract Rec
Retail Installment Contract Receivables | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Retail Installment Contract Receivables | 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 notes receivables and other assets, net in the consolidated balance sheets. The following table summarizes the RIC receivables (in thousands): December 31, 2020 December 31, 2019 RIC receivables, gross $ 145,000 $ 192,058 RIC allowance (28,848) (39,218) Imputed interest (13,275) (20,295) RIC receivables, net $ 102,877 $ 132,545 Classified on the consolidated balance sheets as: Accounts and notes receivable, net $ 44,931 $ 43,733 Long-term notes receivables and other assets, net 57,946 88,812 RIC receivables, net $ 102,877 $ 132,545 The changes in the Company’s RIC allowance were as follows (in thousands): For the Years Ended December 31, 2020 December 31, 2019 RIC allowance, beginning of period $ 39,218 $ 22,080 Write-offs (21,163) (26,018) Recoveries 6,340 4,626 Additions from RICs originated during the period 7,567 20,455 Change in expected credit losses (2,914) 18,572 Other adjustments (1) (200) (497) RIC allowance, end of period $ 28,848 $ 39,218 (1) Other adjustments primarily reflect changes in foreign currency exchange rates related to Canadian RICs. During year ended December 31, 2020, 2019 and 2018, the amount of RIC imputed interest income recognized in recurring and other revenue was $10.6 million, $13.6 million and $14.9 million, respectively. Change in Accounting Estimate in 2019 RIC receivables are recorded at their present value, net of the RIC allowance and imputed interest. The Company records the RIC allowance as an adjustment to deferred revenue and as an adjustment to the face amount of the related receivable. The RIC allowance considers a number of factors, including collection experience, credit quality of the subscriber base and other qualitative considerations such as macro-economic factors. In the third quarter of 2019, with over two years of RIC customer history, the Company determined that actual RIC write-offs were trending higher than the expected write-offs used in the original estimates. Therefore, the Company determined that it was necessary to adjust the remaining RIC allowance balance primarily associated with subscribers originated in 2017 and 2018, to reflect the new estimate of the present value of cash expected to be collected over the remaining contractual periods. In accordance with this change in accounting estimate, in 2019 the Company increased the RIC allowance and recognized an adjustment to revenue to record the proportional amount related to performance obligations that have already been delivered and the remaining amount (related to undelivered performance obligations) to deferred revenue. The Company recorded a total increase to the RIC allowance and imputed interest of $26.6 million, with a decrease to deferred revenue of |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt The Company’s debt at December 31, 2020 and 2019 consisted of the following (in thousands): December 31, 2020 Outstanding Unamortized Unamortized Deferred Financing Costs (1) Net Carrying Long-Term Debt: 7.875% Senior Secured Notes Due 2022 $ 677,000 $ 7,885 $ (4,697) $ 680,188 7.625% Senior Notes Due 2023 400,000 — (2,241) 397,759 8.500% Senior Secured Notes Due 2024 225,000 — (3,530) 221,470 6.750% Senior Secured Notes Due 2027 600,000 — (5,771) 594,229 Senior Secured Term Loan - noncurrent 933,375 — (10,921) 922,454 Total Long-Term Debt (2) 2,835,375 7,885 (27,160) 2,816,100 Senior Secured Term Loan - current 9,500 — — 9,500 Total Debt $ 2,844,875 $ 7,885 $ (27,160) $ 2,825,600 December 31, 2019 Outstanding Unamortized Unamortized Deferred Financing Costs (1) Net Carrying Long-Term Debt: Senior Secured Revolving Credit Facility $ 245,000 $ — $ — $ 245,000 8.875% Senior Secured Notes Due 2022 270,000 (1,645) (451) 267,904 7.875% Senior Secured Notes Due 2022 900,000 15,480 (9,532) 905,948 7.625% Senior Notes Due 2023 400,000 — (3,081) 396,919 8.500% Senior Secured Notes Due 2024 225,000 — (4,431) 220,569 Senior Secured Term Loan - noncurrent 791,775 — (7,822) 783,953 Total Long-Term Debt 2,831,775 13,835 (25,317) 2,820,293 Current Debt: Senior Secured Term Loan - current (2) 8,100 — — 8,100 8.75% Senior Notes due 2020 454,299 742 (1,721) 453,320 Total Debt $ 3,294,174 $ 14,577 $ (27,038) $ 3,281,713 (1) Unamortized deferred financing costs related to the revolving credit facilities included in deferred financing costs, net on the consolidated balance sheets at December 31, 2020 and 2019 was $1.7 million and $1.1 million, respectively. (2) The current portion of the Term Loan was included in accrued expenses and other current liabilities on the consolidated balance sheets as reported in our audited consolidated financial statements for the year ended December 31, 2019. The Company has reclassified the amounts reported for December 31, 2019 to be included in the current portion of notes payable, net in the condensed consolidated balance sheets. Notes Payable 2022 Notes As of December 31, 2020, APX Group, Inc., a wholly owned subsidiary of the Company (“APX”) had $677.0 million outstanding aggregate principal amount of 7.875% senior secured notes due 2022 (the “2022 notes”). 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 2024 notes (as defined below), the revolving credit facilities and the Term Loan, in all cases, subject to certain exceptions and permitted liens. 2023 Notes As of December 31, 2020, APX had $400.0 million outstanding aggregate principal amount of the 7.625% senior notes due 2023 (the “2023 notes”) with a maturity date of September 1, 2023. 2024 Notes As of December 31, 2020, APX had $225.0 million outstanding aggregate principal amount of 8.500% senior secured notes due 2024 (the “2024 notes” and, together with the 2022 notes and the 2027 notes, the “existing senior secured notes”). The 2024 notes will mature on November 1, 2024, unless, under “Springing Maturity” provisions, on June 1, 2023 (the 91st day prior to the maturity of the 2023 notes) more than an aggregate principal amount of $125.0 million of such 2023 notes remain outstanding or have not been refinanced as permitted under the indenture for the 2023 notes, in which case the 2024 Notes will mature on June 1, 2023. The 2024 notes are secured, on a pari passu basis, by the collateral securing obligations under the existing senior secured notes, the revolving credit facilities and the Term Loan, in all each case, subject to certain exceptions and permitted liens. 2027 Notes As of December 31, 2020, APX had $600.0 million outstanding aggregate principal amount of 6.750% senior secured notes due 2027 (the “2027 notes” and, together with the 2022 notes, the 2023 notes and the 2024 notes the “Notes”). The 2027 notes will mature on February 15, 2027, unless, under “Springing Maturity” provisions on June 1, 2023 (the 91st day prior to the maturity of the 2023 notes) more than an aggregate principal amount of $125.0 million of such 2023 notes remain outstanding or have not been refinanced as permitted under the indenture governing the 2023 notes, in which case the 2027 Notes will mature on June 1, 2023. The 2027 notes are secured, on a pari passu basis, by the collateral securing obligations under the existing senior secured notes, the revolving credit facility and the Term Loan, in each case, subject to certain exceptions and permitted liens. Interest accrues at the rate of 7.875% per annum for the 2022 notes, 7.625% per annum for the 2023 notes, 8.500% per annum for the 2024 notes and 6.75% per annum for the 2027 notes. Interest on the 2022 notes is payable semiannually in arrears on June 1 and December 1 of each year. Interest on the 2023 notes is payable semiannually in arrears on March 1 and September 1 of each year. Interest on the 2024 notes is payable semiannually in arrears on May 1 and November 1 each year. Interest on the 2027 notes is payable semiannually in arrears on February 15 and August 15 each year. APX may redeem the Notes at the prices and on the terms specified in the applicable indenture. Term Loan As of December 31, 2020, APX had outstanding term loans in an aggregate principal amount of $942.9 million (the “Term Loan”) under its amended and restated credit agreement. APX is required to make quarterly amortization payments under the Term Loan in an amount equal to 0.25% of the aggregate principal amount of the Term Loan outstanding on the closing date thereof. The remaining outstanding principal amount of the Term Loan will be due and payable in full on December 31, 2025, unless, pursuant to a “Springing Maturity” provision on June 1, 2023 (the 91st day prior to the maturity of the 2023 notes) more than an aggregate principal amount of $125.0 million of such 2023 notes remain outstanding or have not been repaid or redeemed, in which case the Term Loan will mature on June 1, 2023. The Term Loan bears 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 is 4.0% per annum and the applicable margin for LIBOR rate-based borrowings is 5.0% per annum. APX may prepay the Term Loan on the terms specified in the credit agreement covering the Term Loan. Debt Modifications and Extinguishments The Company performs analyses on a creditor-by-creditor basis for debt modifications and extinguishments to determine if repurchased debt was substantially different than debt issued to determine the appropriate accounting treatment of associated issuance costs. As a result of these analyses, the following amounts of other expense and loss on extinguishment and deferred financing costs were recorded (in thousands): Other expense and loss on extinguishment Deferred financing costs Issuance Original premium extinguished Previously deferred financing costs extinguished New financing costs Total other expense and loss on extinguishment Previously deferred financing rolled over New deferred financing costs Total deferred financing costs For the year ended December 31, 2020 Term Loan February 2020 issuance $ (2,749) $ 4,033 $ 6,146 $ 7,430 $ 205 $ 6,346 $ 6,551 2027 Notes February 2020 issuance — 235 5,045 5,280 6,973 5,461 12,434 Total (2,749) 4,268 11,191 12,710 7,178 11,807 18,985 For the year ended December 31, 2019 2024 Notes May 2019 issuance (588) 1,395 — 807 — 4,956 4,956 For the year ended December 31, 2018 Term Loan September 2018 issuance (953) 4,207 11,317 14,571 — 10,275 10,275 Deferred financing costs are amortized to interest expense over the life of the issued debt. The following tables present deferred financing activity for the years ended December 31, 2020 and 2019 (in thousands): Unamortized Deferred Financing Costs Balance December 31, 2019 Additions Early Extinguishment Amortized Balance December 31, 2020 Revolving Credit Facility $ 1,123 $ 1,027 $ — $ (483) $ 1,667 2020 Notes 1,721 — (1,565) (156) — 2022 Private Placement Notes 451 (205) (221) (25) — 2022 Notes 9,532 — (2,247) (2,588) 4,697 2023 Notes 3,081 — — (840) 2,241 2024 Notes 4,431 — — (901) 3,530 2027 Notes — 6,551 — (780) 5,771 Term Loan 7,822 5,461 (235) (2,127) 10,921 Total Deferred Financing Costs $ 28,161 $ 12,834 $ (4,268) $ (7,900) $ 28,827 Unamortized Deferred Financing Costs Balance December 31, 2018 Additions Early Extinguishment Amortized Balance December 31, 2019 Revolving Credit Facility $ 2,058 $ — $ — $ (935) $ 1,123 2019 Notes — — — — — 2020 Notes 5,380 — (1,395) (2,264) 1,721 2022 Private Placement Notes 602 — — (151) 451 2022 Notes 12,799 — — (3,267) 9,532 2023 Notes 3,922 — — (841) 3,081 2024 Notes — 4,956 — (525) 4,431 Term Loan $ 9,662 $ — $ — $ (1,840) 7,822 Total Deferred Financing Costs $ 34,423 $ 4,956 $ (1,395) $ (9,823) $ 28,161 Revolving Credit Facility In February 2020, APX amended and restated the credit agreement governing its existing senior secured revolving credit facility to provide for, among other things, (1) an increase in the aggregate commitments previously available to it to $350.0 million 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 $10.9 million and the Series C Revolving Commitments of approximately $330.8 million is 1.75% per annum and (b) under the Series B Revolving Commitments of approximately $8.3 million was 2.75% and (2)(a) the applicable margin for LIBOR rate-based borrowings (a) under the Series A Revolving Commitments is currently 2.75% per annum and (b) under the Series B Revolving Commitments is currently 3.75%. The applicable margin for borrowings under the revolving credit facility is subject to one step-down of 25 basis points based on APX meeting a consolidated first lien net leverage ratio test at the end of each fiscal quarter. Outstanding borrowings under the amended and restated revolving credit facility are allocated on a pro-rata basis between each Series based on the total Revolving Commitments. In addition to paying interest on outstanding principal under the revolving credit facility, APX is required to pay a quarterly commitment fee (which will be subject to one interest rate step-down of 12.5 basis points, based on APX meeting a consolidated first lien net leverage ratio test) to the lenders under the revolving credit facility in respect of the unutilized commitments thereunder. APX also pays customary letter of credit and agency fees. APX is not required to make any scheduled amortization payments under the revolving credit facility. The principal amount outstanding under the revolving credit facility will be due and payable in full with respect to commitments under the Series A Revolving Credit Facility and Series B Revolving Credit Facility on March 31, 2021 and on February 14, 2025 with respect to the Series C Revolving Credit Commitments, unless “Springing Maturity” provisions apply. Under the “Springing Maturity” provisions, principal amounts outstanding will be due: • the 91st day prior to the maturity of the 2022 notes, if, on that date, more than an aggregate principal amount of $350.0 million of such 2022 notes remain outstanding or have not been repaid or redeemed with certain qualifying proceeds specified in the revolving credit facility, • the 91st day prior to the maturity of the 2023 notes, if, on that date, more than an aggregate principal amount of $125.0 million of such 2023 notes remain outstanding or have not been repaid or redeemed with certain qualifying proceeds specified in the revolving credit facility, • the 91st day prior to the maturity of the 2024 notes, if, on that date, more than an aggregate principal amount of $125.0 million of such 2024 notes remain outstanding or have not been repaid or redeemed with certain qualifying proceeds specified in the revolving credit facility. There were no outstanding borrowings under the revolving credit facility as of December 31, 2020 and $245.0 million as of December 31, 2019. As of December 31, 2020, the Company had $334.7 million of availability under the revolving credit facility (after giving effect to $15.3 million of outstanding letters of credit and no of borrowings). Guarantees |
Business Combination (Restated)
Business Combination (Restated) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Business Combination (Restated) | Business Combination (Restated) On January 17, 2020, the Company consummated the previously announced merger pursuant to that certain Agreement and Plan of Merger, dated September 15, 2019, by and among the Company, Merger Sub, and Legacy Vivint Smart Home, as amended by the Merger Agreement, dated as of December 18, 2019, by and among the Company, Maiden Sub and Legacy Vivint Smart Home. Pursuant to the terms of the Merger Agreement, a business combination between the Company and Legacy Vivint Smart Home was effected through the merger of Merger Sub with and into Legacy Vivint Smart Home, with Legacy Vivint Smart Home as the surviving company. At the effective time of the Business Combination (the “Effective Time”), each stockholder of Legacy Vivint Smart Home received 84.5320916792 shares of the Company’s Class A common stock, par value $0.0001 per share (the “Common Stock”), for each share of Legacy Vivint Smart Home common stock, par value $0.01 per share, that such stockholder owned. Pursuant in each case to a Subscription Agreement entered into in connection with the Merger Agreement, certain investment funds managed by affiliates of Fortress Investment Group LLC (“Fortress”) and certain investment funds affiliated with The Blackstone Group Inc. (“Blackstone”) purchased, respectively, 12,500,000 and 10,000,000 newly-issued shares of Common Stock (such purchases, the “Fortress PIPE” and the “Blackstone PIPE,” respectively, and together, the “PIPE”) concurrently with the completion of the Business Combination (the “Closing”) on the Closing Date for an aggregate purchase price of $125.0 million and $100.0 million, respectively. In connection with the Merger, each of the issued and outstanding Founder Shares was converted into approximately 1.20 shares of Common Stock of the Company. The private placement warrants will expire five years after the Closing or earlier upon redemption or liquidation. In connection with the execution of the Amendment, the Company entered into a Subscription and Backstop Agreement (the “Fortress Subscription and Backstop Agreement”) . On the Closing Date, pursuant to the Fortress Subscription and Backstop Agreement, Fortress purchased 2,698,753 shares of Common Stock for an aggregate of $27.8 million. In addition, the Company entered into an additional subscription agreement (the “Additional Forward Purchaser Subscription Agreement”) with one of the forward purchasers (the “Forward Purchaser”). Pursuant to the Additional Forward Purchaser Subscription Agreement, immediately prior to the Effective Time, the Forward Purchaser purchased from us 5,000,000 shares of Common Stock at a purchase price of $10.00 per share. As consideration for the additional investment, concurrently with the Closing, 25% of Mosaic Sponsor LLC’s founder shares (“Forward Shares”) and private placement warrants were forfeited to the Company and the Company issued to the Forward Purchaser a number of shares of Common Stock equal to approximately 1.20 times the number of Founder Shares forfeited and a number of warrants equal to the number of private placement warrants forfeited. At the Closing, certain investors (including an affiliate of Fortress) received an aggregate of 15,789,474 shares of Common Stock at a purchase price of $9.50 per share (the “IPO Forward Purchaser Investment”) pursuant to the terms of the forward purchase agreements the Company entered into in connection with the Company’s initial public offering. In connection with the Closing, 31,074,592 shares of Common Stock were redeemed at a price per share of approximately $10.29. In addition, in connection with the Closing, each Founder Share issued and outstanding immediately prior to the Closing (other than the Founder Shares forfeited in connection with the Additional Forward Purchaser Subscription Agreement) converted into approximately 1.2 shares of Common Stock of the Company. Immediately prior to the Effective Time, each issued and outstanding share of Legacy Vivint Smart Home preferred stock (other than shares owned by Legacy Vivint Smart Home as treasury stock) converted into approximately 1.43 shares of Legacy Vivint Smart Home common stock in accordance with the certificate of designations of the Legacy Vivint Smart Home preferred stock. As part of the Business Combination, the Company assumed the liabilities associated with the outstanding public warrants and private placement warrants. The Company recorded the warrants as a derivative liability at fair value on the date of the Business Combination. The following table reconciles the elements of the Business Combination to the consolidated statement of cash flows and the consolidated statement of changes in equity for the year ended December 31, 2020: Recapitalization (in thousands) Cash - Mosaic (net of redemptions) $ 35,344 Cash - Subscribers and Forward Purchasers 453,221 Less fees to underwriters and other transaction costs (25,043) Net cash received from recapitalization 463,522 Less: Warrant derivative liabilities assumed (Restated) (40,094) Less: non-cash net liabilities assumed from Mosaic (5) Less: deferred and accrued transaction costs (1,304) Net contributions from recapitalization (Restated) $ 422,119 The number of shares of Common Stock of Vivint Smart Home Inc. issued immediately following the consummation of the Business Combination is summarized as follows: Number of Shares Common Stock outstanding prior to Business Combination 34,500,000 Less redemption of Mosaic Shares (31,074,592) Common Stock of Mosaic 3,425,408 Shares issued from Fortress PIPE 12,500,000 Shares from Blackstone PIPE 10,000,000 Shares from Additional Forward Purchaser Subscription Agreement 5,000,000 Shares from IPO Forward Purchaser Investment 15,789,474 Shares from Fortress Subscription and Backstop Agreement 2,698,753 Shares from Mosaic Founder Shares 10,379,386 Recapitalization shares 59,793,021 Legacy Vivint Smart Home equity holders 94,937,597 Total shares 154,730,618 Earnout consideration Following the closing of the Merger, holders of Vivint common stock and holders of Rollover RSUs, the Rollover SARs, the shares of Rollover Restricted Stock and any awards granted under the Company Rollover LTIP Plans (together, “Rollover Equity Awards”, as defined in Note 14 Stock-Based Compensation and Equity) had the contingent right to receive, in the aggregate, up to 37,500,000 shares of Common Stock if, from the closing of the Merger until the fifth anniversary thereof, the dollar volume-weighted average price of Common Stock exceeded certain thresholds. The first issuance of 12,500,000 earnout shares occurred when the volume-weighted average price of Common Stock exceeded $12.50 for any 20 trading days within any 30-trading day period (the “First Earnout”). The second issuance of 12,500,000 earnout shares occurred when the volume weighted average price of Common Stock exceeded $15.00 for any 20 trading days within any 30-trading day period (the “Second Earnout”). The third issuance of 12,500,000 earnout shares occurred when the volume weighted average price of Common Stock exceeded $17.50 for any 20-trading days within any 30-trading day period (the “Third Earnout”) (as further described in the Merger Agreement). Subsequent to the closing of the Merger, the cumulative issuance of 36,084,141 shares of Common Stock occurred after attainment of the First Earnout, Second Earnout and Third Earnout in February, March and September 2020, respectively. The difference in the shares issued in the earnouts and the aggregate amounts defined in the Merger Agreement above are primarily attributable to unissued shares reserved for future issuance to holders of Rollover Equity Awards, which are subject to the same vesting terms and conditions as the underlying Rollover Equity Awards. Additionally, shares were withheld from employees to satisfy the mandatory tax withholding requirements. The Company has determined that the earnout shares issued to non-employee shareholders and to holders of Vivint common stock and vested Rollover Equity Awards qualify for the scope exception in ASC 815-10-15-74(a) and meet the criteria for equity classification under ASC 815-40. These earnout shares were initially measured at fair value at Closing. Upon the attainment of the share price targets, the earnout shares delivered to the equity holders are recorded in equity as shares issued, with the appropriate allocation to common stock at par and additional paid-in capital. Since all earnout shares have determined to be equity-classified, there is no remeasurement unless |
Balance Sheet Components (Resta
Balance Sheet Components (Restated) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Components (Restated) | Balance Sheet Components (Restated) The following table presents material balance sheet component balances as of December 31, 2020 and December 31, 2019 (in thousands): December 31, 2020 2019 Prepaid expenses and other current assets Prepaid expenses $ 11,286 $ 7,753 Deposits 1,308 870 Other 1,744 9,440 Total prepaid expenses and other current assets $ 14,338 $ 18,063 Capitalized contract costs Capitalized contract costs $ 3,491,629 $ 2,903,389 Accumulated amortization (2,173,131) (1,688,140) Capitalized contract costs, net $ 1,318,498 $ 1,215,249 Long-term notes receivables and other assets RIC receivables, gross $ 100,069 $ 148,325 RIC allowance (28,848) (39,218) RIC imputed interest (13,275) (20,295) Security deposits 835 6,715 Other 3,729 300 Total long-term notes receivables and other assets, net $ 62,510 $ 95,827 Accrued payroll and commissions Accrued payroll $ 41,590 $ 35,666 Accrued commissions 46,353 36,976 Total accrued payroll and commissions $ 87,943 $ 72,642 Accrued expenses and other current liabilities Accrued interest payable $ 33,340 $ 31,327 Current portion of derivative liability (restated) 142,755 80,366 Service warranty accrual 5,711 8,680 Current portion of warrant derivative liabilities (restated) 8,063 — Accrued taxes 8,700 5,462 Accrued payroll taxes and withholdings 14,391 5,361 Loss contingencies 26,200 1,831 Other 8,164 6,362 Total accrued expenses and other current liabilities (restated) $ 247,324 $ 139,389 |
Property Plant and Equipment
Property Plant and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property Plant and Equipment | Property Plant and Equipment Property, plant and equipment consisted of the following (in thousands): December 31, Estimated 2020 2019 Vehicles $ 39,735 $ 46,496 3-5 years Computer equipment and software 72,616 63,197 3-5 years Leasehold improvements 29,126 28,593 2-15 years Office furniture, fixtures and equipment 21,394 20,786 2-7 years Construction in process 6,180 3,480 Property, plant and equipment, gross 169,051 162,552 Accumulated depreciation and amortization (116,672) (101,464) Property, plant and equipment, net $ 52,379 $ 61,088 Property plant and equipment includes approximately $17.6 million and $24.3 million of assets under finance lease obligations, net of accumulated amortization of $23.0 million and $22.8 million at December 31, 2020 and 2019, respectively. Depreciation and amortization expense on all property plant and equipment was $20.2 million, $25.7 million and $25.0 million for the years ended December 31, 2020, 2019 and 2018, respectively. Amortization expense relates to assets under finance leases as included in depreciation and amortization expense. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The change in the carrying amount of goodwill during the year ended December 31, 2020 was the result of foreign currency translation adjustments as well as a $0.4 million addition associated with the acquisition of CrowdStorage (defined below). The changes in the carrying amount of goodwill for the years ended December 31, 2020 and 2019, were as follows (in thousands): Balance as of January 1, 2019 $ 834,855 Effect of CrowdStorage acquisition 453 Effect of Foreign Currency Translation 1,232 Balance as of December 31, 2019 836,540 Effect of Foreign Currency Translation 537 Balance as of December 31, 2020 $ 837,077 Intangible assets, net The following table presents intangible asset balances as of December 31, 2020 and 2019 (in thousands): December 31, 2020 December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Estimated Definite-lived intangible assets: Customer contracts $ 969,158 $ (862,352) $ 106,806 $ 967,623 $ (794,926) $ 172,697 10 years 2GIG 2.0 technology 17,000 (17,000) — 17,000 (16,534) 466 8 years Other technology 4,725 (4,309) 416 4,725 (2,858) 1,867 2 - 7 years Space Monkey technology 7,100 (7,100) — 7,100 (6,809) 291 6 years Patents 10,843 (6,656) 4,187 12,885 (10,454) 2,431 5 years Total definite-lived intangible assets: 1,008,826 (897,417) 111,409 1,009,333 (831,581) 177,752 Indefinite-lived intangible assets: Domain names 65 — 65 59 — 59 Total Indefinite-lived intangible assets 65 — 65 59 — 59 Total intangible assets, net $ 1,008,891 $ (897,417) $ 111,474 $ 1,009,392 $ (831,581) $ 177,811 In May 2019, the Company acquired majority ownership interest in CrowdStorage, Inc. (“CrowdStorage”), a distributed cloud storage solution company. The Company determined that CrowdStorage was a variable interest entity and the Company was the primary beneficiary, because CrowdStorage was dependent on the Company for ongoing financial support. As part of this acquisition, the Company recognized a definite-lived intangible asset of $1.8 million, included within the other technology asset class in the above table. The financial position and results of operations of CrowdStorage are consolidated by the Company and the non-controlling interest associated with the minority interest holders was immaterial as of, and for, the years ended December 31, 2020 and 2019. In January 2018, Vivint Wireless and Verizon consummated the transactions contemplated by a termination agreement to which the parties agreed, among other things, to terminate the spectrum leases between Vivint Wireless and Nextlink, a subsidiary of Verizon, in exchange for a cash payment by Verizon to Vivint Wireless. The calculation of the gain recorded included cash proceeds of $55.0 million, extinguishment of the spectrum license liability of $27.9 million, offset by the write- off of the spectrum license asset in the amount of $31.3 million and regulatory costs associated with the sale of $1.3 million for a total net gain on sale of $50.4 million which is included in other income, net in the consolidated statement of operations. During the year ended December 31, 2020 and 2019, the Company added $3.1 million and $1.2 million of intangible assets related to patents, respectively. Amortization expense related to intangible assets was approximately $69.5 million, $80.5 million and $90.9 million for the years ended December 31, 2020, 2019, and 2018, respectively. As of December 31, 2020, the remaining weighted-average amortization period for definite-lived intangible assets was 1.9 years. Estimated future amortization expense of intangible assets, excluding approximately $0.1 million in patents currently in process, is as follows as of December 31, 2020 (in thousands): 2021 $ 59,823 2022 49,728 2023 679 2024 542 2025 491 Thereafter — Total estimated amortization expense $ 111,263 |
Financial Instruments (Restated
Financial Instruments (Restated) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments (Restated) | Financial Instruments (Restated) Cash and Cash Equivalents Cash equivalents are classified as level 1 assets, as they have readily available market prices in an active market. The following tables set forth the Company’s cash and cash equivalents’ adjusted cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category recorded as cash and cash equivalents or long-term notes receivables and other assets, net as of December 31, 2020 and 2019 (in thousands): December 31, 2020 Adjusted Cost Unrealized Losses Fair Value Cash and Cash Equivalents Cash $ 283,750 $ — $ 283,750 $ 283,750 Money market funds 30,049 — 30,049 30,049 Total $ 313,799 $ — $ 313,799 $ 313,799 December 31, 2019 Adjusted Cost Unrealized Losses Fair Value Cash and Cash Equivalents Cash $ 4,545 $ — $ 4,545 $ 4,545 Money market funds 4 — 4 4 Total $ 4,549 $ — $ 4,549 $ 4,549 The Company sold its Corporate Securities in June 2019 and realized a gain of $2.3 million. During the years ended December 31, 2018, the Company recorded an unrealized loss of $0.3 million associated with the change in fair value of the Corporate Securities. The carrying amounts of the Company’s accounts and notes receivable, accounts payable and accrued and other liabilities approximate their fair values. Debt Components of the Company's debt including the associated interest rates and related fair values (in thousands, except interest rates) are as follows: Issuance December 31, 2020 December 31, 2019 Stated Interest Face Value Estimated Fair Value Face Value Estimated Fair Value 2020 Notes — — 454,299 455,253 8.750 % 2022 Notes Private Placement Notes — — 270,000 267,975 8.875 % 2022 Notes 677,000 677,203 900,000 909,000 7.875 % 2023 Notes 400,000 415,200 400,000 378,040 7.625 % 2024 Notes 225,000 238,545 225,000 232,290 8.500 % 2027 Notes 600,000 645,300 — — 6.750 % Term Loan 942,875 942,875 799,875 799,875 N/A Total $ 2,844,875 $ 2,919,123 $ 3,049,174 $ 3,042,433 The Notes are fixed-rate debt considered Level 2 fair value 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. The Term Loan is floating-rate debt and approximates the carrying value as interest accrues at floating rates based on market rates. Derivative Financial Instruments Consumer Financing Program Under the Consumer Financing Program, the Company pays a monthly fee to third-party financing providers based on either the average daily outstanding balance of the loans or the number of outstanding loans depending on third-party financing provider. The Company also 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 income, net in the Consolidated Statement of Operations. The following represent the contractual obligations with the third-party financing providers under the Consumer Financing Program that are components of the derivative: • The Company pays either a monthly fee based on the average daily outstanding balance of the loans, or the number of outstanding loans, depending on the third-party financing provider • 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 The derivative is classified as a Level 3 instrument. The derivative positions are valued using a discounted cash flow model, with inputs consisting of available market data, such as market yield discount rates, as well as unobservable internally derived assumptions, such as collateral prepayment rates, collateral default rates and loss severity rates. These derivatives are priced quarterly using a credit valuation adjustment methodology. In summary, the fair value represents an estimate of the present value of the cash flows the Company will be obligated to pay to the third-party financing provider for each component of the derivative. The following table summarizes the fair value and the notional amount of the Company’s outstanding consumer financing program contractual obligation derivative instrument as of December 31, 2020 and 2019 (in thousands): December 31, 2020 2019 (Restated) Consumer Financing Program Contractual Obligations: Fair value $ 227,896 $ 136,863 Notional amount 912,626 534,560 Classified on the consolidated balance sheets as: Accrued expenses and other current liabilities 142,755 80,366 Other long-term obligations 85,141 56,497 Total Consumer Financing Program Contractual Obligation $ 227,896 $ 136,863 Changes in Level 3 Fair Value Measurements - Consumer Financing Program The following table summarizes the change in the fair value of the Level 3 outstanding consumer financing program contractual obligation derivative instrument for the years ended December 31, 2020 and 2019 (in thousands): December 31, 2020 2019 (Restated) Balance, beginning of period $ 136,863 $ 117,620 Additions 167,055 94,592 Settlements (71,962) (70,213) Gains included in earnings (4,060) (5,136) Balance, end of period $ 227,896 $ 136,863 Warrant Liabilities (Restated) As a result of the Business Combination, the Company assumed a derivative warrant liability related to previously issued private placement warrants and public warrants in connection with Mosaic’s initial public offering. The fair value of the Company’s public warrants are measured based on the market price of such warrants and are considered a Level 1 fair value measurement. The Company utilizes a Black-Scholes option pricing model to estimate the fair value of the private placement warrants and are considered a Level 3 fair value measurement. The warrants are measured at each reporting period, with changes in fair value recognized in the statement of operations. The change in the fair value of the derivative warrant liabilities for the year ended December 31, 2020 is summarized as follows (in thousands): Public Warrants Private Placement Warrants Total Derivative Warrant liability (Restated) Warrant liability assumed from the Business Combination $ 9,775 $ 30,319 $ 40,094 Change in fair value of warrant liability 64,038 45,212 109,250 Reclassification of derivative liabilities for exercised warrants (65,750) — (65,750) Balance, end of period $ 8,063 $ 75,531 $ 83,594 The estimated fair value of the private placement warrant derivative liabilities is determined using Level 3 inputs. Inherent in a Black-Scholes valuation model are are assumptions related to expected stock-price volatility, expiration, risk-free interest rate and dividend yield. The Company estimates the volatility of its common stock based on historical volatility of select peer companies that matches the expected remaining life of the warrants. The risk-free interest rate is based on the U.S. Treasury zero-coupon yield curve on the grant date for a maturity similar to the expiration of the warrants. The dividend yield is based on the historical rate, which the Company anticipates remaining at zero. The following table provides quantitative information regarding Level 3 fair value measurements inputs as their measurement dates: As of December 31, 2020 (Restated) Number of private placement warrants 5,933,334 Exercise price $ 11.5 Stock price $ 20.75 Expiration term (in years) 4.05 Volatility 60 % Risk-free Rate 0.27 % Dividend yield — % |
Restructuring and Asset Impairm
Restructuring and Asset Impairment Charges | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Asset Impairment Charges | Restructuring and Asset Impairment Charges Restructuring 2020 Cost Reductions In March 2020, the Company announced a number of cost reduction initiatives that are expected to reduce certain of the Company’s General and Administrative, Customer Service, and Sales Support fixed costs. The Company completed the majority of these cost reduction initiatives in the first quarter of 2020. In addition to resulting in meaningful cost reductions, the Company’s initiatives are expected to streamline operations, focus on engineering and innovation and provide a better focus on driving customer satisfaction. These actions resulted in one-time cash employee severance and termination benefits expenses of $20.9 million during the year ended December 31, 2020. These costs included $11.1 million in stock-based compensation expense associated with the accelerated vesting of stock-based awards to certain executives related to separation agreements. 2019 Wireless Spin-Off On July 31, 2019, the Company completed a spin-off of its Wireless subsidiary. In connection with the spin-off, the equity interests of Wireless were distributed to the shareholders of Vivint Smart Home pro rata based on their respective holdings. As a result of the spin-off, the Company's additional paid-in capital was decreased by the net assets of Wireless of $4.8 million, as of the effective date of the spin-off. The spin-off does not represent a strategic shift that has (or will have) a major effect on the Company's operations and financial results. The results of Wireless are reflected in the Company's consolidated financial statement up through July 31, 2019. The following financial information presents the results of operations of Wireless for the years ended December 31, 2019 and 2018: Years Ended December 31, 2019 2018 Recurring and other revenue $ 2,808 $ 6,870 Costs and expenses: Operating expenses 5,455 8,295 Selling expenses 137 674 General and administrative expenses 5,291 15,547 Depreciation and amortization 68 102 Total costs and expenses 10,951 24,618 Loss from operations (8,143) (17,748) Other expenses (income): Interest expense — 2 Other income, net (2,100) (52,021) Net (loss) income $ (6,043) $ 34,271 2018 Cost Reductions During the year ended December 31, 2018, the Company announced a number of cost reduction initiatives that were expected to reduce certain of the Company’s General and Administrative, Customer Service, and Sales Support fixed costs. The Company completed the majority of these cost reduction initiatives in the second and third quarters of 2018, with the remainder by the end of 2018. In addition to resulting in meaningful cost reductions, the Company’s initiatives are expected to streamline operations, focus engineering and innovation and provide a better focus on driving customer satisfaction. As part of these initiatives, the Company and Best Buy agreed in principle to end the co-branded Best Buy Smart Home by Vivint arrangement ("Best Buy Agreement"), which resulted in the elimination of in-store sales positions. In addition, the Company eliminated other general and administrative positions. These actions resulted in one-time cash employee severance and termination benefits expenses of $4.7 million during the year ended December 31, 2018. The Company formally terminated its relationship with Best Buy in December 2018 and agreed to pay a termination fee of $5.5 million. The difference |
Income Taxes (Restated)
Income Taxes (Restated) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes (Restated) | Income Taxes (Restated) The Company files a consolidated federal income tax return with its wholly owned subsidiaries. The income tax expense (benefit) consisted of the following (in thousands): Year ended December 31, 2020 2019 2018 (Restated) Current income tax: Federal $ — $ — $ — State 2,174 703 512 Foreign 764 (2) (52) Total 2,938 701 460 Deferred income tax: Federal — (380) — State 903 (73) — Foreign (1,004) 1,065 (2,071) Total (101) 612 (2,071) Income tax expense (benefit) $ 2,837 $ 1,313 $ (1,611) The following reconciles the tax benefit computed at the statutory federal rate and the Company’s tax expense (benefit) (in thousands): Year ended December 31, 2020 2019 2018 (Restated) Computed expected tax benefit $ (124,580) $ (82,833) $ (98,598) State income taxes, net of federal tax effect 2,636 483 404 Foreign income taxes (383) 232 (690) Other reconciling items 6,790 2,988 — Permanent differences 38,586 7,007 4,406 Change in valuation allowance 79,788 73,436 92,867 Income tax expense (benefit) $ 2,837 $ 1,313 $ (1,611) 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, 2020 2019 (Restated) Gross deferred tax assets: Net operating loss carryforwards $ 558,972 $ 585,854 Deferred subscriber income 254,722 151,051 Interest expense limitation 119,402 111,682 Accrued expenses and allowances 52,031 26,683 Lease liabilities 15,342 18,773 Purchased intangibles and deferred financing costs 13,765 11,232 Inventory reserves 2,801 3,387 Research and development credits 41 41 Property and equipment 2 — Valuation allowance (664,191) (566,498) Total 352,887 342,205 Gross deferred tax liabilities: Deferred capitalized contract costs (338,141) (325,616) Right of use assets (13,119) (16,355) Purchased intangibles and deferred financing costs (2,092) — Property and equipment (1,703) (2,465) Total (355,055) (344,436) Net deferred tax liabilities $ (2,168) $ (2,231) The Company had gross operating loss carryforwards as follows (in thousands): December 31, 2020 2019 (Restated) Net operating loss carryforwards: Federal $ 2,294,340 $ 2,408,078 States 1,996,245 1,972,423 Canada — 10,390 Total $ 4,290,585 $ 4,390,891 U.S. federal net operating loss carryforwards will begin to expire in 2026, if not used. State net operating loss carryforwards expire over different periods and some have already begun to expire. The Company had United States research and development credits of approximately $41,000 at December 31, 2020, and December 31, 2019, which begin to expire in 2030. There are no remaining Canadian net operating loss ("NOL") carryforwards as of December 31, 2020. Realization of the Company’s federal and state net operating loss carryforwards and tax credits is dependent on generating sufficient taxable income prior to their expiration. The Company performed a study to determine the amount of any limitation on its net operating losses and concluded that as of December 31, 2020 an ownership change had not occurred under the provisions of Internal Revenue Code Section 382, and as of that date the losses were not limited. The future use of the net operating loss carryforwards may have limitations resulting from future ownership changes or other factors under Section 382 of the Internal Revenue Code. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted in response to the COVID-19 pandemic. The CARES Act, among other things, permits NOL carryovers and carrybacks to offset 100% of taxable income for taxable years beginning before 2021. In addition, the CARES Act allows NOLs incurred in 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. The Company does not expect that the NOL carryback provision of the CARES Act will result in a material cash benefit. In addition to the NOL changes, the CARES Act contains modifications on the limitation of business interest for tax years beginning in 2019 and 2020. The modifications to Section 163(j) increase the allowable business interest deduction from 30% of adjusted taxable income to 50% of adjusted taxable income. This modification increased the allowable interest expense deduction of the Company and resulted in less taxable income for the years ended 2019 and 2020, resulting in less utilization of net operating losses in those years. At December 31, 2020 and 2019, the Company recorded a valuation allowance against its U.S. federal and state net deferred tax assets as it believes it is more likely than not that these benefits will not be realized. Significant judgment is required in determining the Company’s provision for income taxes, recording valuation allowances against net deferred tax assets and evaluating the Company’s uncertain tax positions. The Company has considered and weighed the available evidence, both positive and negative, to determine whether it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. Based on available information, management does not believe it is more likely than not that all of its deferred tax assets will be utilized. The Company recorded a valuation allowance for U.S. net deferred tax assets of approximately $664.2 million and $566.5 million at December 31, 2020 and 2019, respectively. The Company is no longer subject to income tax examination by the U.S. federal, state or local tax authorities for years ended December 31, 2016 or prior; however, its tax attributes, such as NOL carryforwards and tax credits, are still subject to examination in the year they are used. As of December 31, 2020, the Company has not recognized any uncertain tax positions. |
Stock-Based Compensation and Eq
Stock-Based Compensation and Equity (Restated) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation and Equity (Restated) | Stock-Based Compensation and Equity (Restated) Legacy Vivint Smart Home Incentive Units Prior to the Business Combination, Legacy Vivint Smart Home’s former indirect parent, 313 Acquisition LLC (“313”), which is majority owned by Blackstone, authorized the award of profits interests, representing the right to share a portion of the value appreciation on the initial capital contributions to 313 (“Incentive Units”). As of immediately prior to the consummation of the Business Combination, all vested Incentive Units, other than those held by certain executives and their affiliates (“Holdback Executives”), were redeemed by 313 for a number of shares in Legacy Vivint Smart Home and Vivint Solar, with an equivalent value as the Incentive Units so redeemed, if any, assuming a hypothetical liquidation of 313, in a manner determined by the board of managers of 313 (the “313 Board”). The number of shares of Vivint Solar common stock and Legacy Vivint Smart Home common stock issued with respect to each vested Incentive Unit in such redemptions was determined on a pro rata basis using the relative value of the shares of Vivint Solar common stock and Legacy Vivint Smart Home common stock held by 313 as of the effective time of the Business Combination. The shares of Legacy Vivint Smart Home common stock received in such redemptions were converted into the right to receive the merger consideration as part of the Business Combination. To the extent that the deemed unit price of such vested Incentive Unit was equal to or in excess of the fair market value of a Class A Unit of 313 (the “Class A Units”) as of the time of such redemptions, such vested Incentive Unit was redeemed for $0.00. Unvested Incentive Units, other than those held by Holdback Executives, were redeemed by 313 Acquisition for a number of shares of restricted stock in Legacy Vivint Smart Home (“Restricted Stock”), if any, subject to the same vesting terms and conditions as the corresponding Incentive Units with an equivalent value as the Incentive Units so redeemed, if any, assuming a hypothetical liquidation of 313, in a manner determined by the 313 Board. Such shares of Restricted Stock were subject to the same vesting terms and conditions as the corresponding unvested Incentive Units; provided, that Restricted Stock (other than those held by non-employee directors or their affiliates) subject to vesting upon receipt by the Blackstone Group Inc. and its affiliates (“Blackstone”) of cash proceeds in respect of its Class A Units equal to 2.0x its cumulative invested capital in respect of its Class A Units (the “2.0x vesting condition”) would instead vest, subject to the holder’s continued employment on the applicable vesting date (or event) in equal annual installments on the first four anniversaries of the closing date of the Business Combination, or if earlier, in full upon either (i) a change of control (as defined in the applicable Company Group Stock Plan (as defined in the Merger Agreement)) or (ii) satisfaction of the 2.0x vesting condition (the “2.0x Modification”). To the extent that the deemed unit price of such vested Incentive Unit was equal to or in excess of the fair market value of a Class A Unit as of the time of such redemptions, such unvested Incentive Unit was redeemed for $0.00. As of the effective time of the Business Combination, each share of Restricted Stock was automatically, without any action on the part of the holder thereof, cancelled and converted into a number of shares of our Class A Common Stock equal to the exchange ratio, the aggregate rounded to the nearest whole share of our Class A common stock (after such conversion, “Rollover Restricted Stock”), which shares of Class A Common Stock were subject to the same vesting terms and conditions as Restricted Stock from which such shares of Class A Common Stock were converted. Incentive units held by the Holdback Executives were converted and reclassified into a number of vested and unvested tracking units of 313 (“Tracking Units”), subject to the same vesting terms and conditions and with an equivalent value as the corresponding Incentive Units. In February 2020 the board of directors approved a modification to the vesting conditions applicable to the Rollover Restricted Stock, Rollover SARs and Rollover LTIP Awards (each as defined below and collectively the “Rollover Equity Awards”) (in each case, excluding with respect to awards held by non-employee directors and their affiliates and Holdback Executives) so that all unvested Rollover Equity Awards became fully vested (to the extent not already vested) on January 17, 2021, subject to continued employment or services, as applicable, (the “2020 modification”). In November 2020, the 2.0x vesting condition was satisfied, and, as a result, the Rollover Restricted Shares which were issued in respect of Incentive Units that were subject to the 2.0x vesting condition vested. Rollover Restricted Stock Compensation expense associated with unvested Rollover Restricted Stock is recognized on a straight-line basis over the remaining vesting period. At December 31, 2020, there was approximately $0.1 million of unrecognized compensation expense related to Rollover Restricted Stock, which is expected to be recognized over a weighted-average period of 0.1 years. A summary of the Rollover Restricted Stock activity for the year ended December 31, 2020 is presented below: Rollover Restricted Stock Weighted Average Unvested Restricted Stock issued under the Business Combination 890,746 $ 7.52 Vested (532,272) 7.89 Forfeited (152,078) 6.67 Unvested at December 31, 2020 206,396 7.22 Tracking Units As part of the Business Combination, 12,058,077 of unvested Company Tracking Units were issued to Holdback Executives with a total grant-date fair value of $17.5 million . As part of the March 2020 restructuring, one of the Holdback Executives had accelerated vesting of all of his then unvested 6,309,459 of Company Tracking Units, pursuant to his separation agreement (subject to forfeiture in the event that certain terms of the separation agreement were breached)and resulted in $8.5 million included in restructuring expense (see Note 12 Restructuring and Asset Impairment Charges). Additionally, 3,505,255 Company Tracking Units vested as a result of the achievement of the 2.0x vesting condition. In 2020, 560,841 Company Tracking Units vested that were subject to time-based vesting. At December 31, 2020, 1,682,522 Company Tracking Units were unvested, and there was $1.6 million of unrecognized compensation expense of which is expected to be recognized over a weighted-average period of 2.4 years, and are subject to ratable time-based vesting over a five-year period from June 2018. The fair value of stock-based awards underlying the Rollover Restricted Stock and Tracking Units were measured at the original grant dates and is recognized as expense over the employee’s requisite service period. The grant date fair value for those granted and modified prior to 2020, were primarily determined using a Monte Carlo simulation valuation approach with the following assumptions: expected volatility varies from 55% to 125%; expected exercise term between 3.96 and 6.00 years; and risk-free rates between 0.61% and 2.61%. The portion of the awards that were modified as part of the Business Combination were measured based on the valuation set forth in the Business Combination. Rollover SARs Prior to the Business Combination, the Company’s subsidiary, Vivint Group, Inc. (“Vivint Group”), awarded Stock Appreciation Rights (“SARs”) to various levels of key employees and board members, pursuant to an omnibus incentive plan adopted by Vivint Group (the “Vivint Group Plan”). The purpose of the SARs was to attract and retain personnel and provide an opportunity to acquire an equity interest of Vivint Group and/or its direct or indirect parents. In connection with the Business Combination, each SAR, to the extent then outstanding and unexercised, was automatically cancelled and converted into a SAR of Vivint Smart Home (“Rollover SAR”) with respect to a number of shares of Vivint Smart Home Class A common stock equal to the product of (x) the number of shares of Vivint Group common stock subject to such Company Group SAR as of immediately prior to the effective time of the Business Combination, multiplied by 0.0864152412 (the “VGI Exchange Ratio”), rounded down to the nearest whole number of shares of our Class A common stock, with a strike price per share of Vivint Smart Home Class A common stock equal to the quotient obtained by dividing (i) the per share strike price of such SAR as of immediately prior to the effective time of the Business Combination by (ii) the VGI Exchange Ratio, rounded up to the nearest whole cent. As part of the Business Combination, the vesting terms for the Rollover SARs were modified in accordance with the 2.0x modification. In February 2020 the board of directors approved the 2020 modification with respect to all unvested SARs. In November 2020, the 2.0x vesting condition was satisfied, and, as a result, the unvested SARs which were subject to the 2.0x vesting condition as of immediately prior to the Business Combination vested. The Company has settled, and expects to settle, Rollover SARs through the issuance of shares of Vivint Smart Home Class A common stock. The unrecognized compensation expense of $0.2 million related to Rollover SARs will be recognized over a weighted-average period of 0.1 years. The fair value of the Rollover SARs were measured at the original grant date and is recognized as expense over the employee’s requisite service period. The grant date fair value was primarily 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 6.50 years; and risk-free rates between 0.61% and 2.61%. Due to the lack of historical exercise data, the Company used the simplified method in determining the estimated exercise term. The shares that were modified as part of the Business Combination were primarily determined using a Black-Scholes option valuation model with the following assumptions: expected volatility of 60%, expected exercise term of 6.25 years; and a risk-free rate of 1.7%, along with the valuation set forth in the Business Combination. The weighted average grant date per share of the modified awards were $6.02 per share. A summary of the Rollover SARs activity for the years ended December 31, 2020 and 2019 is presented below: Rollover SARs Weighted Average Weighted Average Aggregate Outstanding, December 31, 2018 3,284,806 $ 16.90 8.07 $ — Granted 930,865 22.57 Forfeited (482,593) 17.94 Exercised (129,541) 10.30 Outstanding, December 31, 2019 3,603,537 18.17 7.86 0.9 Forfeited (1,055,978) 18.03 Exercised (73,548) 12.35 Outstanding, December 31, 2020 2,474,011 17.59 6.60 7.8 Unvested Rollover SARs expected to vest after December 31, 2020 873,233 19.04 7.14 1.5 Exercisable at December 31, 2020 1,600,778 $ 16.80 6.30 6.3 Rollover LTIPs Prior to the Business Combination, Vivint Group established four incentive compensation pools with a number of hypothetical SARs with awards to certain employees entitling them to a portion of the proceeds of such hypothetical SARs on certain distribution dates (the “VGI LTIP Plans” and such awards the “VGI LTIP Awards”). In connection with the Business Combination, the Company assumed the VGI LTIP Plans, including any liabilities and obligations associated therewith and made adjustments such that awards under the VGI LTIP Plans would be settled in a number of shares of our Class A common stock with a fair market value equal to a number of hypothetical SARs with respect to (a) the number of shares of VGI common stock subject to the hypothetical SARs underlying such VGI LTIP Plan as of immediately prior to the effective time of the Business Combination, multiplied by (b) the VGI exchange ratio, rounded down to the nearest whole number of shares of our Class A common stock, with a strike price per share of our Class A common stock equal to the quotient obtained by dividing (x) the per share strike price of such hypothetical SARs as of immediately prior to the effective time of the Business Combination by (y) the VGI exchange ratio, rounded up to the nearest whole cent (such assumed and adjusted plans, the “Rollover LTIP Plans” and the awards thereunder the “Rollover LTIP Awards”) as if the consummation of the merger constituted an event similar to a “Public Offering” for purposes of the VGI LTIP Plans. Additionally, in connection with the Business Combination, the distribution schedule for shares under the Rollover LTIP Plans which were distributable in respect of hypothetical Rollover SARs which were subject to distribution based upon achievement of certain investment returns by Blackstone in respect of its cumulative invested capital in respect of the Class A Units as of immediately prior to the effective time of the Business Combination was modified such that such shares of our Class A common stock would be delivered to holders of Rollover LTIP Awards in three equal installments on each of the 24-, 36-, and 48-month anniversaries of the closing date of the Business Combination (or earlier upon a change in control or achievement of the applicable investment return by Blackstone). In February 2020, the board of directors approved the 2020 modification with respect to such shares, such that they would be distributed in January 2021, to the extent not then distributed. Each hypothetical Rollover SAR has a strike price of $7.22 per share. In July 2020, the Company made a distribution of shares of our Class A common stock pursuant to the Rollover LTIP Plans resulting in the issuance of 415,040 shares of our Class A common stock to holders of Rollover LTIP Awards. As a result of this distribution, the Company recorded compensation costs totaling $6.5 million, of which $5.7 million and $0.8 million was included in selling expenses and operating expenses, respectively. In November 2020, Blackstone achieved a 2.0x return on Blackstone’s cumulative invested capital in respect of the Class A Units, and as a result, the Company made a distribution of 997,671 shares of our Class A common stock to holders of Rollover LTIP Awards in respect of the hypothetical Rollover SARs which were subject to the 2.0x vesting condition as of immediately prior to the Business Combination. As a result of this distribution, the Company recorded compensation costs totaling $20.4 million, of which $17.9 million and $2.5 million was included in selling expenses and operating expenses, respectively. As of December 31, 2020 there are 2,316,869 hypothetical Rollover SARs underlying the Rollover LTIP Plans, which the Company expects to settle in the first quarter of 2021. The fair value of the shares distributed pursuant to the Rollover LTIP Plans values are determined based on the stock price of the Company on the date shares are issued to holders of Rollover LTIP Awards, which was $15.62 per share for the July 2020 distribution and $20.40 per share for the November 2020 distribution. Earnouts During the year ended December 31, 2020, holders of Rollover Equity Awards became entitled to receive share of our Class A Common Stock as a result of the attainment of the First Earnout, Second Earnout and Third Earnout (see Note 7 Business Combination for further discussion). Such shares were issuable in respect to holders of Rollover Equity Awards, subject to the same vesting terms and conditions as the underlying Rollover Equity Awards. At December 31, 2020, there was approximately $0.5 million of unrecognized compensation expense related to earnouts granted, which is expected to be recognized over a weighted-average period of 0.2 years. A summary of the earnout share activity for those that were subject to stock-based compensation expense under ASC 718, for the year ended December 31, 2020 is presented below: Shares Weighted Average Grant-Date Fair Value per Share Granted 2,112,431 $ 20.87 Vested (1,544,037) 20.28 Forfeited (155,578) 23.86 Unvested at December 31, 2020 412,816 21.98 Restricted Stock Units During the year ended December 31, 2020, the Company approved grants under the Vivint Smart Home, Inc. 2020 Omnibus Incentive Plan (the “Plan”) of time-vesting restricted stock units (the “RSUs”) awards (each representing the right to receive one share of Class A common stock of the Company upon the settlement of each restricted stock unit) to various levels of key employees. The RSUs granted to employees are generally subject to a four-year vesting schedule, and 25% of the units will vest on each of the first four anniversaries of the applicable vesting reference date. Additionally, RSUs were granted to non-employee board members which are subject to a one year vesting schedule. All vesting shall be subject to the recipient’s continued employment with Vivint Smart Home, Inc. or its subsidiaries through the applicable vesting dates. No right to any common stock is earned or accrued until such time that vesting occurs, nor does the grant of the RSU award confer any right to continue vesting or employment. Compensation expense associated with the unvested restricted stock units is recognized on a straight-line basis over the vesting period. At December 31, 2020, there was approximately $150.1 million of unrecognized compensation expense related to restricted stock units, which is expected to be recognized over a weighted-average period of 2.0 years. The fair value of the RSU awards, representing the estimated equity value per share of the Company at the grant date, is recognized as expense over the requisite service period. The grant-date fair values were determined based on the stock price of the Company at the time of board approval. The following summarizes information about RSU transactions for the year ended December 31, 2020: Units Weighted Average Grant-Date Fair Value per Unit Granted 9,467,810 $ 22.77 Forfeited (827,392) 22.86 Unvested at December 31, 2020 8,640,418 22.76 Performance Stock Units During the year ended December 31, 2020, the Company approved grants under the Plan of performance-vesting restricted stock units (the “PSUs”) (each representing the right to receive one share of Class A common stock of the Company upon the settlement of each restricted stock unit). The PSUs predominately vest based upon the Company’s achievement of specified performance goals through fiscal year end 2020 and the passage of time. If those specified performance goals are met, half of the associated PSUs eligible to vest will vest in the first quarter of 2021 and the other half will vest one year later, in each case, subject to continued employment on the applicable vesting date. Additionally, certain other PSUs were granted during 2020 subject to a four year vesting schedule, and 25% of those units will vest on each of the first four anniversaries of the grant date and upon the achievement of certain employee sales goals. During the year ended December 31, 2020, the Company deemed the achievement of certain PSU vesting conditions as being probable, and thus began recognizing stock-based compensation over the service period. At December 31, 2020, there was approximately $41.9 million of unrecognized compensation expense related to PSUs, which is expected to be recognized over a weighted-average period of 1.0 year. The following summarizes information about PSU transactions for the year ended December 31, 2020: Units Weighted Average Grant-Date Fair Value per Unit Granted 5,343,990 $ 22.63 Forfeited (466,713) 22.21 Unvested at December 31, 2020 4,877,277 22.67 Stock-based compensation expense in connection with all stock-based awards for the years ended December 31, 2020, 2019 and 2018 is allocated as follows (in thousands): Year ended December 31, 2020 2019 2018 (Restated) Operating expenses $ 20,157 $ 320 $ 129 Selling expenses 101,623 508 285 General and administrative expenses 76,433 3,413 2,091 Total stock-based compensation $ 198,213 $ 4,241 $ 2,505 Equity Class A Common Stock—The Company is authorized to issue 3,000,000,000 shares of Class A common stock with a par value of $0.0001 per share. Holders of the Company’s Class A common stock are entitled to one vote for each share on each matter on which they are entitled to vote. At December 31, 2020, there were 202,756,582 shares of Class A common stock issued and outstanding. Preferred stock—The Company is authorized to issue 300,000,000 preferred stock with a par value of $0.0001 per share. At December 31, 2020, there are no preferred stock issued or outstanding. Warrants—As of December 31, 2020, 878,346 public warrants were outstanding. Each whole warrant will entitle the holder to purchase one Class A common stock at an exercise price of $11.50 per share, subject to adjustment. Warrants may only be exercised for a whole number of shares. No fractional warrants will be issued upon separation of the units and only whole warrants will trade. The warrants became exercisable 30 days after the completion of the Business Combination. The warrants will expire five years after the completion of the Business Combination or earlier upon redemption or liquidation. As of December 31, 2020, 5,933,334 private placement warrants were outstanding. The private placement warrants are identical to the public warrants, except that the private placement warrants and the Class A common stock issuable upon exercise of the private placement warrants were not transferable, assignable or salable until 30 days after the completion of the Business Combination, subject to certain limited exceptions. Additionally, the private placement warrants will be non-redeemable so long as they are held by the initial purchasers or such purchasers’ permitted transferees. If the private placement warrants are held by someone other than the initial stockholders or their permitted transferees, the private placement warrants will be redeemable by the Company and exercisable by such holders on the same basis as the public warrants. The Company may call the warrants for redemption: 1. For cash: • in whole and not in part; • at a price of $0.01 per warrant; • upon a minimum of 30 days’ prior written notice of redemption; and • if, and only if, the last reported closing price of the common stock equals or exceeds $18.00 per share (as adjusted for share splits, share dividends, reorganizations, reclassifications, recapitalizations and the like) for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders. 2. For Class A common stock: • in whole and not in part; • at a price equal to a number of Class A common stock to be determined by reference to a table included in the warrant agreement, based on the redemption date and the fair market value of the Class A common stock; • upon a minimum of 30 days’ prior written notice of redemption; and • if, and only if, the last reported closing price of the common stock equals or exceeds $10.00 per share (as adjusted for share splits, share dividends, reorganizations, reclassifications, recapitalizations and the like) on the trading day prior to the date on which the Company sends notice of redemption to the warrant holders. In December 2020, after meeting the above requirements for redemption, the Company delivered a notice of redemption to redeem all of its outstanding public warrants for cash, with a redemption date January 7, 2021 (the “Redemption Date”) for a redemption price of $0.01 per public warrant (the “Redemption Price”). Warrants to purchase Common Stock that were issued under the Warrant Agreement in a private placement and still held by the initial holders thereof or their permitted transferees are not subject to this redemption. The public warrants may be exercised by the holders thereof until on the Redemption Date to purchase fully paid and non-assessable shares of Common Stock underlying such warrants, at the exercise price of $11.50 per share. Any public warrants that remain unexercised on the Redemption Date will be void and no longer exercisable, and the holders of those public warrants will be entitled to receive only the redemption price of $0.01 per warrant. The exercise price and number of Class A common stock issuable upon exercise of the warrants may be adjusted in certain circumstances including in the event of a share dividend, or recapitalization, reorganization, merger or consolidation. However, the warrants will not be adjusted for issuance of Class A common stock at a price below its exercise price. Additionally, in no event will the Company be required to net cash settle the warrants shares. During the year ended December 31, 2020, 10,504,533 warrants were exercised for Class A common stock, for which the Company received $120.8 million of cash. As of December 31, 2020, 117,121 warrants were exercised for which the Company had not yet received payment for $1.3 million, and were recorded in additional paid in capital. Capital Contribution |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Indemnification Subject to certain limitations, the Company is obligated to indemnify its current and former directors, officers and employees with respect to certain litigation matters and investigations that arise in connection with their service to the Company. These obligations arise under the terms of its certificate of incorporation, its bylaws, applicable contracts, and Delaware and California law. The obligation to indemnify generally means that the Company is required to pay or reimburse these individuals’ reasonable legal expenses and possibly damages and other liabilities incurred in connection with these matters. Legal The Company is named from time to time as a party to lawsuits arising in the ordinary course of business related to its sales, marketing, and the provision of its services and equipment claims. Actions filed against the Company include commercial, intellectual property, customer, and labor and employment related claims, including complaints of alleged wrongful termination and potential class action lawsuits regarding alleged violations of federal and state wage and hour and other laws. In addition, from time to time the Company is subject to examinations, investigations and/or enforcement actions by federal and state licensing and regulatory agencies and may face the risk of penalties for violation of financial services, consumer protections and other applicable laws and regulations. For example, in 2019, the Company received a subpoena in connection with an investigation by the U.S. Department of Justice (“DOJ”) concerning potential violations of the Financial Institutions Reform, Recovery and Enforcement Act (“FIRREA”). In January 2021, the Company entered into a settlement agreement with the DOJ that resolved this investigation. As part of this settlement, the Company paid $3.2 million to the United States. The Company also has received a civil investigative demand from the staff of the Federal Trade Commission (“FTC”) concerning potential violations of the Fair Credit Reporting Act (“FCRA”) and the “Red Flags Rule” thereunder, and the Federal Trade Commission Act (“FTC Act”). The Company is in discussions with the FTC about a possible resolution of its investigation. U.S. Customs and Border Protection is investigating the Company’s historical compliance with regulations relating to duties and tariffs in connection with its import of certain products from outside the United States. The Department of Justice is also investigating potential violations of the False Claims Act relating to similar issues. The Company is cooperating with these investigations. The Company also receives inquiries, including civil investigative demands (“CIDs”), from various State Attorneys General, typically from their respective consumer protection or consumer affairs divisions. In general, litigation and enforcements by regulatory agencies can be expensive and disruptive to normal business operations. Moreover, the results of legal proceedings and enforcement actions are difficult to predict and the costs incurred can be substantial. The Company believes the amounts accrued in its financial statements to cover these matters, as disclosed in the following paragraph, are adequate in light of the probable and estimated liabilities. Factors that the Company considers in the determination of the likelihood of a loss and the estimate of the range of that loss in respect of legal and enforcement matters include the merits of a particular matter, the nature of the matter, the length of time the matter has been pending, the procedural posture of the matter, how the Company intends to defend the matter, the likelihood of settling the matter and the anticipated range of a possible settlement. Because such matters are subject to many uncertainties, the ultimate outcomes are not predictable and there can be no assurances that the actual amounts required to satisfy alleged liabilities from the matters described above will not exceed the amounts reflected in the Company’s financial statements or that the matters will not have a material adverse effect on the Company’s results of operations, financial condition or cash flows. The Company regularly reviews outstanding legal claims, actions, and enforcement matters to determine if accruals for expected negative outcomes of such matters are probable and can be reasonably estimated. The Company had accruals for all such matters of approximately $26.2 million and $1.8 million as of December 31, 2020 and 2019, respectively. The Company evaluates its outstanding legal and regulatory proceedings and other matters each quarter to assess its loss contingency accruals, and makes adjustments in such accruals, upward or downward, as appropriate, based on management’s best judgment after consultation with counsel. There is no assurance that the Company’s accruals for loss contingencies will not need to be adjusted in the future or that, in light of the uncertainties involved in such matters, the ultimate resolution of these matters will not significantly exceed the accruals that the Company has recorded. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases for corporate offices, warehouse facilities, research and development and other operating facilities and other operating assets. Prior to its disposal in December 2020, the Company's operating leases also included a corporate aircraft. The Company has finance leases for vehicles, office equipment and other warehouse equipment. The leases have remaining terms of 1 year to 8 years, some of which include options to extend the leases for up to 10 years, and some of which include options to terminate the leases within 1 year. The components of lease expense were as follows (in thousands): Year ended December 31, 2020 2019 Operating lease cost $ 16,784 $ 16,323 Finance lease cost: Amortization of right-of-use assets $ 5,090 $ 5,533 Interest on lease liabilities 453 730 Total finance lease cost $ 5,543 $ 6,263 Supplemental cash flow information related to leases was as follows (in thousands): Year ended December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (17,635) $ (16,713) Operating cash flows from finance leases (453) (730) Financing cash flows from finance leases (7,657) (9,781) Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 3,420 $ 3,423 Finance leases 1,228 8,728 Supplemental balance sheet information related to leases was as follows (in thousands, except lease term and discount rate): Year ended December 31, 2020 2019 Operating Leases Operating lease right-of-use assets $ 52,880 $ 65,320 Current operating lease liabilities $ 12,135 $ 11,640 Operating lease liabilities 49,692 63,477 Total operating lease liabilities $ 61,827 $ 75,117 Finance Leases Property, plant and equipment, gross $ 40,571 $ 47,175 Accumulated depreciation (22,976) (22,827) Property, plant and equipment, net $ 17,595 $ 24,348 Current finance lease liabilities $ 3,356 $ 7,708 Finance lease liabilities 2,460 5,474 Total finance lease liabilities $ 5,816 $ 13,182 Weighted Average Remaining Lease Term Operating leases 5 years 6 years Finance leases 1.6 years 1.7 years Weighted Average Discount Rate Operating leases 7 % 7 % Finance leases 4 % 4 % Maturities of lease liabilities were as follows (in thousands): Operating Leases Finance Leases Year Ending December 31, 2021 $ 16,341 $ 3,466 2022 14,338 2,400 2023 13,855 152 2024 13,492 20 2025 8,079 — Thereafter 8,747 — Total lease payments 74,852 6,038 Less imputed interest (13,025) (222) Total $ 61,827 $ 5,816 |
Leases | Leases The Company has operating leases for corporate offices, warehouse facilities, research and development and other operating facilities and other operating assets. Prior to its disposal in December 2020, the Company's operating leases also included a corporate aircraft. The Company has finance leases for vehicles, office equipment and other warehouse equipment. The leases have remaining terms of 1 year to 8 years, some of which include options to extend the leases for up to 10 years, and some of which include options to terminate the leases within 1 year. The components of lease expense were as follows (in thousands): Year ended December 31, 2020 2019 Operating lease cost $ 16,784 $ 16,323 Finance lease cost: Amortization of right-of-use assets $ 5,090 $ 5,533 Interest on lease liabilities 453 730 Total finance lease cost $ 5,543 $ 6,263 Supplemental cash flow information related to leases was as follows (in thousands): Year ended December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (17,635) $ (16,713) Operating cash flows from finance leases (453) (730) Financing cash flows from finance leases (7,657) (9,781) Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 3,420 $ 3,423 Finance leases 1,228 8,728 Supplemental balance sheet information related to leases was as follows (in thousands, except lease term and discount rate): Year ended December 31, 2020 2019 Operating Leases Operating lease right-of-use assets $ 52,880 $ 65,320 Current operating lease liabilities $ 12,135 $ 11,640 Operating lease liabilities 49,692 63,477 Total operating lease liabilities $ 61,827 $ 75,117 Finance Leases Property, plant and equipment, gross $ 40,571 $ 47,175 Accumulated depreciation (22,976) (22,827) Property, plant and equipment, net $ 17,595 $ 24,348 Current finance lease liabilities $ 3,356 $ 7,708 Finance lease liabilities 2,460 5,474 Total finance lease liabilities $ 5,816 $ 13,182 Weighted Average Remaining Lease Term Operating leases 5 years 6 years Finance leases 1.6 years 1.7 years Weighted Average Discount Rate Operating leases 7 % 7 % Finance leases 4 % 4 % Maturities of lease liabilities were as follows (in thousands): Operating Leases Finance Leases Year Ending December 31, 2021 $ 16,341 $ 3,466 2022 14,338 2,400 2023 13,855 152 2024 13,492 20 2025 8,079 — Thereafter 8,747 — Total lease payments 74,852 6,038 Less imputed interest (13,025) (222) Total $ 61,827 $ 5,816 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Transactions with Vivint Solar Vivint Solar, Inc. (“Solar”) has historically been considered a related party of the Company due to the Company and Solar being under the common control of 313. In October 2020 Solar was acquired by SunRun, Inc. in an all-stock transaction (“SunRun Acquisition”). Upon completion of the SunRun Acquisition, the Company and Solar were no longer under the common control of 313 and therefore the Company and Solar are no longer related parties. The Company was a party to a number of agreements with Solar. In August 2017, the Company entered into a sales dealer agreement with Solar, pursuant to which each company agreed to act as a non-exclusive dealer for the other party to market, promote and sell each other’s products. Prior to the SunRun Acquisition, net expenses charged to Solar in connection with these agreements was $3.3 million, $9.2 million and $17.3 million during the years ended December 31, 2020, 2019 and 2018, respectively. The balance due with these agreements was $2.2 million at December 31, 2019, and is included in prepaid expenses and other current assets in the accompanying consolidated balance sheets. On March 3, 2020, the Company and Solar amended and restated the sales dealer agreement to, among other things, add exclusivity obligations for both companies in certain territories and jurisdictions, expand the types of services each company is permitted to render thereunder, and to permit use of the services offered by Amigo, a wholly-owned subsidiary of the Company, in connection with the submission and processing of leads generated pursuant to the agreement. The amended and restated agreement has a one-year term, which automatically renews for successive one-year terms unless terminated earlier by either party upon 90 days’ prior written notice. On March 3, 2020, the Company and Solar entered into a recruiting services agreement pursuant to which each company has agreed to assist the other in recruiting sales representatives to its direct-to-home sales force. The parties will pay each other certain fees for these services which will be calculated in accordance with the terms of the agreement. The Company and Vivint Solar have also agreed under the terms of the agreement not to solicit for employment any member of the other’s executive or senior management team, any dealer, or any of the other’s employees who primarily manage sales, installation or services of the other’s products and services. Such obligations will continue throughout the term of the agreement. On March 3, 2020, Amigo entered into a Subscriber Generation Agreements with Solar and the Company to facilitate the use of the Amigo application for the submission and processing of leads generated pursuant to the amended and restated sales dealer agreement. In connection with the amendment and restatement of the sales dealer agreement and the execution of the recruiting services agreement, the Company and Solar terminated the Marketing and Customer Relations Agreement, dated September 30, 2014 (as amended from time to time) and the Non-Competition Agreement, dated September 30, 2014 (as amended from time to time), in each case effective as of March 3, 2020. Other Related-party Transactions The Company incurred additional expenses during the years ended December 31, 2020, 2019 and 2018, of approximately $0.6 million, $2.5 million, $2.7 million, respectively, for other related-party transactions including contributions to the charitable organization Vivint Gives Back, legal fees, and other services. These expenses were included in selling and general and administrative expenses in the accompanying consolidated statement of operations. Accrued expenses and other current liabilities at December 31, 2020 and 2019 included net payables associated with these related-party transactions of $0.1 million and $1.0 million, respectively. On July 31, 2019, in an effort to deliver additional cost savings and cash-flow improvements, the Company completed a spin-off of Wireless, its wireless internet business. Associated with the spin-off, the Company and Wireless entered into a Transition Service Agreement (“TSA”) According to the TSA, Vivint performs specified services for Wireless, including human resources, information technology, and facilities. The Company invoices Wireless on a monthly basis for these agreed upon services. Additionally, Vivint cross charges Wireless for items not included in the TSA but that are paid for by Vivint on behalf of Wireless. Transactions associated with these services were $1.3 million for the year ended December 31, 2020. There were no balances due to or from Wireless as of December 31, 2020 and 2019. Transactions with Blackstone On November 16, 2012, the Company was acquired by an investor group comprised of certain investment funds affiliated with Blackstone Capital Partners VI L.P., and certain co-investors and management investors through certain mergers and related reorganization transactions (collectively, the “Reorganization”). In connection with the Reorganization, the Company engaged Blackstone Management Partners L.L.C. (“BMP”) to provide monitoring, advisory and consulting services on an ongoing basis. In consideration for these services, the Company agreed to pay an annual monitoring fee equal to the greater of (i) a minimum base fee of $2.7 million subject to adjustments if the Company engages in a business combination or disposition that is deemed significant and (ii) the amount of the monitoring fee paid in respect of the immediately preceding fiscal year, without regard to any post-fiscal year “true-up” adjustments as determined by the agreement. The Company incurred expenses for such services of approximately $8.1 million, $5.6 million and $4.1 million during the years ended December 31, 2020, 2019 and 2018, respectively and was included in general and administrative expense in the accompanying consolidated statement of operations. Accounts payable and accrued expenses and other current liabilities at December 31, 2020 included a liabilities of $8.1 million to BMP related to the monitoring fee. 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, 2020, 2019 and 2018 the Company incurred no costs associated with such services. Additionally, during the year ended December 31, 2019 the Company agreed to reimburse Blackstone for $1.8 million of certain other fees incurred by Blackstone for activities related to the Company and was included in general and administrative expenses in the accompanying consolidated statement of operations. In October 2020, Blackstone provided an updated amount of fees in the amount of $1.3 million. This amount was included in accrued expenses and other current liabilities as of December 31, 2020. In connection with the execution of the Merger Agreement, the Company and the parties to the support and services agreement entered into an amended and restated support and services agreement with BMP. The amended and restated support and services agreement became effective upon the consummation of the Merger and amended and restated the existing support and services agreement to, upon the consummation of the merger, (a) eliminate the requirement to pay a milestone payment to BMP upon the occurrence of an IPO, (b) for any fiscal year beginning after the consummation of the merger, (i) eliminate the Minimum Annual Fee and (ii) decrease the “true-up” of the annual Monitoring Fee payment to BMP to 1% of consolidated EBITDA and (c) upon the earlier of (1) the completion of Legacy Vivint Smart Home’s fiscal year ending December 31, 2021 or (2) the date upon which Blackstone owns less than 5% of the voting power of all of the shares of capital stock entitled to vote generally in the election of directors of Vivint Smart Home’s or its direct or indirect controlling parent, and such stake has a fair market value (as determined by Blackstone) of less than $25 million (the “Exit Date”), the annual Monitoring Fee payment to BMP otherwise payable in connection with the agreement will cease and no other milestone payment or other similar payment will be owed by the Company to BMP. Under the amended and restated support and services agreement, the Company and Legacy Vivint Smart Home have, through the Exit Date (or an earlier date determined by BMP), 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 may, at any time, choose not to provide any such services. Such services are provided without charge, other than for the reimbursement of out-of-pocket expenses as set forth in the amended and restated support and services agreement. From time to time, the Company does business with a number of other companies affiliated with Blackstone. Related Party Debt An affiliate of Blackstone participated as one of the initial purchasers of the 2024 notes and the 2027 notes and received an aggregate of $1.0 million of fees in connection with these transactions. An affiliate of Blackstone participated as one of the arrangers in the in the original Term Loan in September 2018 and again in the Term Loan amendment and restatement in February 2020 and received approximately $1.5 million of total fees associated with these transactions. As of December 31, 2020 and 2019, affiliates of Blackstone held $166.1 million and $103.6 million, respectively of outstanding aggregate principal of the Term Loan. In February 2020, an affiliate of Fortress participated as a lender in the amended and restated Term Loan and received $0.9 million in lender fees. As of December 31, 2020, Fortress held $72.5 million, $19.9 million, $11.7 million and $173.7 million in the 2023 Notes, 2024 Notes, 2027 Notes and Term Loan, respectively. In each of July 2019 and September 2018, 313 Acquisition LLC contributed $4.7 million to the Company as a capital contribution. Transactions involving related parties cannot be presumed to be carried out at an arm’s-length basis. |
Segment Reporting and Business
Segment Reporting and Business Concentrations (Restated) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting and Business Concentrations (Restated) | Segment Reporting and Business Concentrations (Restated) For the years ended December 31, 2020, 2019 and 2018, the Company conducted business through one operating segment, Vivint and primarily operated in two geographic regions: United States and Canada. Revenues by geographic region were as follows (in thousands): United States Canada Total Revenue from external customers Year ended December 31, 2020 (restated) $ 1,193,640 $ 66,926 $ 1,260,566 Year ended December 31, 2019 $ 1,083,756 $ 72,225 $ 1,155,981 Year ended December 31, 2018 $ 977,877 $ 72,564 $ 1,050,441 |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2020 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plan | Employee Benefit Plan The Company offers eligible employees the opportunity to contribute a percentage of their earned income into company-sponsored 401(k) plans. From January 1, 2018 through May 2, 2020, participants in the 401(k) plans were eligible for the Company's matching program. This matching program was suspended, effective May 2, 2020. Under this program, the Company matches an employee’s contributions to the 401(k) savings plan dollar-for-dollar up to 1% of such employee’s eligible earnings and $0.50 for every $1.00 for the next 5% of such employee’s eligible earnings. The maximum match available under the 401(k) plan is 3.5% of the employee’s eligible earnings. For employees who have been employed by the Company for less than two years, matching contributions vest on the second anniversary of their date of hire. The Company's matching contributions to employees who have been employed by the Company for two years or more are fully vested. Matching contributions that were made to the plans during the years ended December 31, 2020, 2019 and 2018 totaled $4.3 million and $6.5 million, and $6.0 million, respectively. |
Basic and Diluted Net Loss Per
Basic and Diluted Net Loss Per Share (Restated) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Loss Per Share (Restated) | Basic and Diluted Net Loss Per Share (Restated) The Company computes basic loss per share by dividing loss attributable to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution of securities that could be exercised or converted into common shares, and is computed by dividing net earnings available to common stockholders by the weighted-average number of common shares outstanding plus the effect of potentially dilutive shares to purchase common stock. As a result of the Business Combination, the Company has retrospectively adjusted the weighted average number of common shares outstanding prior to January 17, 2020 by multiplying them by the exchange ratio used to determine the number of common shares into which they converted. The following table sets forth the computation of the Company’s basic and diluted net loss attributable per share to common stockholders for the years ended December 31, 2020, 2019 and 2018: Year ended December 31, 2020 2019 2018 (Restated) Numerator: Net loss attributable to common stockholders (in thousands) $ (595,198) $ (395,924) $ (472,635) Denominator: Shares used in computing net loss attributable per share to common stockholders, basic and diluted 179,071,278 94,805,201 94,527,648 Net loss attributable per share to common stockholders: Basic and diluted $ (3.32) $ (4.18) $ (5.00) The following table discloses securities that could potentially dilute basic net loss per share in the future that were not included in the computation of diluted net loss per share because to do so would have been antidilutive for all periods presented: As of December 31, 2020 2019 2018 Rollover SARs 2,474,011 3,603,537 3,284,806 Rollover LTIPs 2,316,869 4,633,738 4,633,738 Rollover RSUs 51,929 51,929 31,360 RSUs 8,640,418 — — PSUs 4,877,277 — — Public warrants 878,346 — — Private placement warrants 5,933,334 — — Earnout shares reserved for future issuance 1,260,281 — — |
Significant Accounting Polici_2
Significant Accounting Policies (Restated) (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
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. On January 17, 2020 (the “Closing Date”), the Company consummated the previously announced merger pursuant to that certain Agreement and Plan of Merger, dated September 15, 2019, by and among the Company, Merger Sub, and Legacy Vivint Smart Home, as amended by Amendment No. 1 to the Agreement and Plan of Merger, dated as of December 18, 2019, by and among the Company, Merger Sub and Legacy Vivint Smart Home. (See Note 5 “Business Combination” for further discussion). Pursuant to the terms of the Merger Agreement, a business combination between the Company and Legacy Vivint Smart Home was effected through the merger of Merger Sub with and into Legacy Vivint Smart Home, with Legacy Vivint Smart Home surviving as the surviving company (the “Business Combination”). Notwithstanding the legal form of the Business Combination pursuant to the Merger Agreement, the Business Combination is accounted for as a reverse recapitalization in accordance with GAAP. Under this method of accounting, Vivint Smart Home, Inc. is treated as the acquired company and Legacy Vivint Smart Home is treated as the acquirer for financial statement reporting and accounting purposes. Legacy Vivint Smart Home has been determined to be the accounting acquirer based on evaluation of the following facts and circumstances: • Legacy Vivint Smart Home’s shareholders prior to the Business Combination have the greatest voting interest in the combined entity; • Legacy Vivint Smart Home’s directors represent the majority of the Vivint Smart Home board of directors; • Legacy Vivint Smart Home’s senior management is the senior management of Vivint Smart Home; and • Legacy Vivint Smart Home is the larger entity based on historical total assets and revenues. As a result of Legacy Vivint Smart Home being the accounting acquirer, the financial reports filed with the SEC by the Company subsequent to the Business Combination are prepared “as if” Legacy Vivint Smart Home is the predecessor and legal successor to the Company. The historical operations of Legacy Vivint Smart Home are deemed to be those of the Company. Thus, the financial statements included in this report reflect (i) the historical operating results of Legacy Vivint Smart Home prior to the Business Combination; (ii) the combined results of the Company and Legacy Vivint Smart Home following the Business Combination on January 17, 2020; (iii) the assets and liabilities of Legacy Vivint Smart Home at their historical cost; and (iv) the Company’s equity structure for all periods presented. The recapitalization of the number of shares of common stock attributable to the purchase of Legacy Vivint Smart Home in connection with the Business Combination is reflected retroactively to the earliest period presented and will be utilized for calculating earnings per share in all prior periods presented. No step-up basis of intangible assets or goodwill was recorded in the Business Combination transaction consistent with the treatment of the transaction as a reverse recapitalization of Legacy Vivint Smart Home. In connection with the Business Combination, Mosaic Acquisition Corp. changed its name to Vivint Smart Home, Inc. The Company’s Common Stock is now listed on the NYSE under the symbol “VVNT”. Prior to the Business Combination, the Company neither engaged in any operations nor generated any revenue. Until the Business Combination, based on the Company’s business activities, it was a “shell company” as defined under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). |
Vivint Flex Pay | Vivint Flex Pay The Vivint Flex Pay plan (“Vivint Flex Pay”) became the Company’s primary equipment financing model beginning in March 2017. Under Vivint Flex Pay, customers pay separately for the products (including control panel, security peripheral equipment, smart home equipment, and related installation) (“Products”) and Vivint’s smart home and security services (“Services”). The customer has the following three ways to pay for the Products: (1) qualified customers in the United States may finance the purchase of Products through third-party financing providers (“Consumer Financing Program”) (2) the Company offers a limited number of customers not eligible for the Consumer Financing Program, but who qualify under the Company’s underwriting criteria, the option to enter into a retail installment contract (“RIC”) directly with Vivint, or (3) customers may purchase the Products at the outset of the service contract by check, automatic clearing house payments (“ACH”), credit or debit card. Although customers pay separately for Products and Services under the Vivint Flex Pay plan, the Company has determined that the sale of Products and Services are one single performance obligation. 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 and estimated write-offs on the RICs and the present value of expected payments due to the third-party financing provider under the Consumer Financing Program. Under the Consumer Financing Program, qualified customers are eligible for loans provided by third-party financing providers of up to $4,000. Most loan terms are determined based on the customer’s credit quality. The annual percentage rates on these loans is either 0% or 9.99%, depending on the customer's credit quality, and are either installment or revolving loans with a 42- or 60-month term. For certain third-party provider loans, the Company pays a monthly fee based on either the average daily outstanding balance of the loans or the number of outstanding loans, depending on the third-party financing provider and the Company shares liability for credit losses, with the Company being responsible for between 5% and 100% of lost principal balances. Additionally, the Company is responsible for reimbursing certain third-party financing providers for merchant transaction fees associated with the loans. Because of the nature of these provisions, the Company records a derivative liability at its fair value when the third-party financing provider originates loans to customers, which reduces the amount of estimated revenue recognized on the provision of the services. The derivative liability is reduced as payments are made by the Company to the third-party financing provider. Subsequent changes to the fair value of the derivative liability are realized through other expenses (income), net in the Consolidated Statement of Operations. (See Note 11). |
Retail Installment Contract Receivables | Retail Installment Contract Receivables For subscribers that enter into a RIC to finance the purchase of Products and related installation, the Company records a receivable for the amount financed. Gross RIC receivables are reduced for (i) expected write-offs of uncollectible balances over the term of the RIC and (ii) a present value discount of the expected cash flows using a risk adjusted market interest rate. Therefore, the RIC receivables equal the present value of the expected cash flows to be received by the Company over the term of the RIC, evaluated on a pool basis. RICs are pooled based on customer credit quality, contract length and geography. At the time of installation, the Company records a long-term note receivable within long-term notes receivables and other assets, net on the consolidated balance sheets for the present value of the receivables that are expected to be collected beyond 12 months of the reporting date. The unbilled receivable amounts that are expected to be collected within 12 months of the reporting date are included as a short-term notes receivable within accounts and notes receivable, net on the consolidated balance sheets. The billed amounts of notes receivables are included in accounts receivable within accounts and notes receivable, net on the consolidated balance sheets. The Company imputes the interest on the RIC receivable using a risk adjusted market interest rate and records it as a reduction to deferred revenue and as an adjustment to the face amount of the related receivable. The risk adjusted interest rate considers a number of factors, including credit quality of the subscriber base and other qualitative considerations such as macro-economic factors. The imputed interest income is recognized over the term of the RIC contract as recurring and other revenue on the consolidated statements of operations. When the Company determines that there are RIC receivables that have become uncollectible, it records an adjustment to the allowance and reduces the related note receivable balance. On a regular basis, the Company also assesses the expected remaining cash flows based on historical RIC write-off trends, current market conditions and both Company and third-party forecast data. In accordance with Topic 326 (see Recently Adopted Accounting Standards |
Revenue | Revenue Recognition The Company offers its customers smart home services combining Products, including a proprietary control panel, door and window sensors, door locks, security cameras and smoke alarms; installation; and a proprietary back-end cloud platform software and Services. These together create an integrated system that allows the Company’s customers to monitor, control and protect their home (“Smart Home Services”). The Company’s customers are buying this integrated system that provides them with these Smart Home Services. The number and type of Products purchased by a customer depends on their desired functionality. Because the Products and Services included in the customer’s contract are integrated and highly interdependent, and because they must work together to deliver the Smart Home Services, the Company has concluded that installed Products, related installation and Services contracted for by the customer are generally not distinct within the context of the contract and, therefore, constitute a single, combined performance obligation. Revenues for this single, combined performance obligation are recognized on a straight-line basis over the customer’s contract term, which is the period in which the parties to the contract have enforceable rights and obligations. The Company has determined that certain contracts that do not require a long-term commitment for monitoring services by the customer contain a material right to renew the contract, because the customer does not have to purchase Products upon renewal. Proceeds allocated to the material right are recognized over the period of benefit, which is generally three years. The majority of the Company’s subscription contracts are between three Sales of Products and other one-time fees such as service or installation fees are invoiced to the customer at the time of sale. Revenues for the wireless internet service that were provided by the Company’s former wireless internet business (“Wireless”) and any Products or Services that are considered separate performance obligations are recognized when those Products or Services are delivered. Taxes collected from customers and remitted to governmental authorities are not included in revenue. Payments received or amounts billed in advance of revenue recognition are reported as deferred revenue. Deferred Revenue The Company's deferred revenues primarily consist of amounts for sales (including upfront proceeds) of Smart Home Services. Deferred revenues are recognized over the term of the related performance obligation, which is generally three |
Accounts Receivable (Restated) | Accounts Receivable (Restated) Accounts receivable consists primarily of amounts due from customers for recurring monthly monitoring Services and the billed portion of RIC receivables. The accounts receivable are recorded at invoiced amounts and are non-interest bearing and are included within accounts and notes receivable, net on the consolidated balance sheets. Accounts receivable totaled $19.8 million and $20.5 million and December 31, 2020 and 2019, respectively net of the allowance for doubtful accounts of $9.9 million and $8.1 million at December 31, 2020 and 2019, respectively. The Company estimates this allowance based on historical collection experience and subscriber attrition rates. In accordance with Topic 326, the Company estimates this allowance based on historical collection experience, subscriber attrition rates, current market conditions and both Company and third-party forecast data. When the Company determines that there are accounts receivable that are uncollectible, they are charged off against the allowance for doubtful accounts. The provision for doubtful accounts is included in general and administrative expenses in the accompanying unaudited condensed consolidated statements of operations and totaled $23.8 million and $25.0 million for the years ended December 31, 2020 and 2019, respectively. |
Restructuring and Asset Impairment Charges | Restructuring and Asset Impairment Charges Restructuring and asset impairment charges represent expenses incurred in relation to activities to exit or dispose of portions of the Company's business that do not qualify as discontinued operations. Liabilities associated with restructuring are measured at their fair value when the liability is incurred. Expenses for related termination benefits are recognized at the date the Company notifies the employee, unless the employee must provide future service, in which case the benefits are expensed |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of Vivint Smart Home, Inc. and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. |
Capitalized Contract Costs | Capitalized Contract Costs Capitalized contract costs represent the costs directly related and incremental to the origination of new contracts, modification of existing contracts or to the fulfillment of the related subscriber contracts. These include commissions, other compensation and related costs incurred directly for the origination and installation of new or upgraded customer contracts, as well as the cost of Products installed in the customer home at the commencement or modification of the contract. The Company calculates amortization by accumulating all deferred contract costs into separate portfolios based on the initial month of service and amortizes those deferred contract costs on a straight-line basis over the expected period of benefit that the Company has determined to be five years, consistent with the pattern in which the Company provides services to its customers. The Company believes this pattern of amortization appropriately reduces the carrying value of the capitalized contract costs over time to reflect the decline in the value of the assets as the remaining period of benefit for each monthly portfolio of contracts decreases. The period of benefit of five years is longer than a typical contract term because of anticipated contract renewals. The Company applies this period of benefit to its entire portfolio of contracts. The Company updates its estimate of the period of benefit periodically and whenever events or circumstances indicate that the period of benefit could change significantly. Such changes, if any, are accounted for prospectively as a change in estimate. Amortization of capitalized contract costs is included in “Depreciation and Amortization” on the consolidated statements of operations. The carrying amount of the capitalized contract costs is periodically reviewed for impairment. In performing this review, the Company considers whether the carrying amount of the capitalized contract costs will be recovered. In estimating the amount of consideration the Company expects to receive in the future related to capitalized contract costs, the Company considers factors such as attrition rates, economic factors, and industry developments, among other factors. If it is determined that capitalized contract costs are impaired, an impairment loss is recognized for the amount by which the carrying amount of the capitalized contract costs and the anticipated costs that relate directly to providing the future services exceed the consideration that has been received and that is expected to be received in the future. Contract costs not directly related and incremental to the origination of new contracts, modification of existing contracts or to the fulfillment of the related subscriber contracts are expensed as incurred. These costs include those associated with housing, marketing and recruiting, non-direct lead generation costs, certain portions of sales commissions and residuals, overhead and other costs considered not directly and specifically tied to the origination of a particular subscriber. On the consolidated statement of cash flows, capitalized contract costs are classified as operating activities and reported as “Capitalized contract costs - deferred contract costs” as these assets represent deferred costs associated with subscriber contracts. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consists of highly liquid investments with remaining maturities when purchased of three months or less. |
Inventories | Inventories Inventories, which are comprised of smart home and security system equipment and parts are stated at the lower of cost or net realizable value with cost determined under the first-in, first-out (FIFO) method. Inventories sold to customers as part of a smart home and security system are generally capitalized as contract costs. The Company adjusts the inventory balance based on anticipated obsolescence, usage and historical write-offs. |
Property, Plant and Equipment and Long-lived Assets | Property, Plant and Equipment and Long-lived Assets Property, plant and equipment are stated at cost and depreciated on the straight-line method over the estimated useful lives of the assets or the lease term for assets under finance leases, whichever is shorter. Intangible assets with definite lives are amortized over the remaining estimated economic life of the underlying technology or relationships, which ranges from 2 to 10 years. Definite-lived intangible assets are amortized on the straight-line method over the estimated useful life of the asset or in a pattern in which the economic benefits of the intangible asset are consumed. Amortization expense associated with leased assets is included in depreciation expense. Routine repairs and maintenance are charged to expense as incurred. The Company reviews long-lived assets, including property, plant and equipment, capitalized contract costs, and definite-lived intangibles for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company considers whether or not indicators of impairment exist on a regular basis and as part of each quarterly and annual financial statement close process. Factors the Company considers in determining whether or not indicators of impairment exist include market factors and patterns of customer attrition. If indicators of impairment are identified, the Company estimates the fair value of the assets. An impairment loss is recognized if the carrying amount of a long-lived asset is not recoverable and exceeds its fair value. The Company conducts an indefinite-lived intangible impairment analysis annually as of October 1, and as necessary if changes in facts and circumstances indicate that the fair value of the Company’s indefinite-lived intangibles may be less than the carrying amount. When indicators of impairment do not exist and certain accounting criteria are met, the Company is able to evaluate indefinite-lived intangible impairment using a qualitative approach. When necessary, the Company’s quantitative impairment test consists of two steps. The first step requires that the Company compare the estimated fair value of its indefinite-lived intangibles to the carrying value. If the fair value is greater than the carrying value, the intangibles are not considered to be impaired and no further testing is required. If the fair value is less than the carrying value, an impairment loss in an amount equal to the difference is recorded. |
Leases | Leases Effective January 1, 2019, the Company accounts for leases under ASU 2016-02, “Leases (Topic 842)”. Under Topic 842, the Company determines if an arrangement is a lease at inception. Lease right-of-use (“ROU”) assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. In determining the present value of lease payments, the Company uses the implicit rate when available. When implicit rates are not available, the Company uses an incremental borrowing rate based on the information available at commencement date. The lease ROU asset also includes any lease payments made and is reduced by lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company does not record lease ROU assets and liabilities for leases with terms of 12 months or less. Leases are classified as either operating or finance at lease inception. Operating lease assets and liabilities and finance lease liabilities are stated separately on the consolidated balance sheets. Finance lease assets are included in property, plant and equipment, net on the consolidated balance sheets. The Company has lease agreements with lease and non-lease components. For facility type leases, the Company separates the lease and non-lease components. Generally, the Company accounts for the lease and non-lease components as a single lease component for all other class of leases. |
Deferred Financing Costs | Deferred Financing Costs Certain costs incurred in connection with obtaining debt financing are deferred and amortized utilizing the straight-line method, which approximates the effective-interest method, over the life of the related financing. Deferred financing costs associated with obtaining the Company’s revolving credit facility are amortized over the amended maturity dates discussed in Note 6. Deferred financing costs associated with the revolving credit facility reported in the accompanying consolidated balance sheets as deferred financing costs, net at December 31, 2020 and 2019 were $1.7 million and $1.1 million, net of accumulated amortization of $11.0 million and $10.6 million, respectively. Deferred financing costs included in the accompanying consolidated balance sheets within notes payable, net at December 31, 2020 and 2019 were $27.2 million and $27.0 million, net of accumulated amortization of $70.9 million and $63.5 million, respectively. Amortization expense on deferred financing costs recognized and included in interest expense in the accompanying consolidated statements of operations totaled $7.9 million, $9.8 million and $10.4 million for the years ended December 31, 2020, 2019 and 2018, respectively. |
Residual Income Plan | Residual Income Plans The Company has a program that allows certain third-party sales channel partners to receive additional compensation based on the performance of the underlying contracts they create (the “Channel Partner Plan”). The Company also has a residual sales compensation plan (the “Residual Plan”) under which the Company's sales personnel (each, a “Plan Participant”) receive compensation based on the performance of certain underlying contracts they created in prior years. For both the Channel Partner Plan and Residual Plan, the Company calculates the present value of the expected future residual payments and records a liability for this amount in the period the subscriber account is originated. These costs are recorded to capitalized contract costs. The Company monitors actual payments and customer attrition on a periodic basis and, when necessary, makes adjustments to the liability. The current portion of the liability included in accrued payroll and commissions was $4.1 million and $4.5 million as of December 31, 2020 and 2019, respectively, and the noncurrent portion included in other long-term obligations was $23.8 million and $20.7 million at December 31, 2020 and 2019, respectively. |
Stock-Based Compensation | Stock-Based Compensation The Company measures compensation cost based on the grant-date fair value of the award and recognizes that cost over the requisite service period of the awards (See Note 14). |
Advertising Expense | Advertising Expense |
Income Taxes | Income Taxes The Company accounts for income taxes based on the asset and liability method. Under the asset and liability method, deferred tax assets and deferred tax liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Valuation allowances are established when necessary to reduce deferred tax assets when it is determined that it is more likely than not that some portion, or all, of the deferred tax asset will not be realized. The Company recognizes the effect of an uncertain income tax position on the income tax return at the largest amount that is more likely than not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. The Company’s policy for recording interest and penalties is to record such items as a component of the provision for income taxes. Changes in tax laws and rates could also affect recorded deferred tax assets and liabilities in the future. The Company records the effect of a tax rate or law change on the Company’s deferred tax assets and liabilities in the period of enactment. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist principally of receivables and cash. At times during the year, the Company maintains cash balances in excess of insured limits. The Company is not dependent on any single customer or geographic location. The loss of a customer would not adversely impact the Company’s operating results or financial position. |
Concentrations of Supply Risk | Concentrations of Supply Risk As of December 31, 2020, approximately 92% of the Company’s installed panels were the Company's proprietary SkyControl or Smart Hub panels, 8% were 2GIG Go!Control panels. The loss of the Company’s SkyControl panel supplier could potentially impact its operating results or financial position. |
Fair Value Measurement | Fair Value Measurement Fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities subject to on-going fair value measurement are categorized and disclosed into one of three categories depending on observable or unobservable inputs employed in the measurement. These two types of inputs have created the following fair value hierarchy: 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, 2020, 2019, and 2018. 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 The Company conducts a goodwill impairment analysis annually in the fourth fiscal quarter, as of October 1, and as necessary if changes in facts and circumstances indicate that the fair value of the Company’s reporting units may be less than their carrying amounts. When indicators of impairment do not exist and certain accounting criteria are met, the Company is able to evaluate goodwill impairment using a qualitative approach. When necessary, the Company’s quantitative goodwill impairment test consists of two steps. The first step requires that the Company compare the estimated fair value of its reporting units to the carrying value of the reporting unit’s net assets, including goodwill. If the fair value of the reporting unit is greater than the carrying value of its net assets, goodwill is not considered to be impaired and no further testing is required. If the fair value of the reporting unit is less than the carrying value of its net assets, the Company would be required to complete the second step of the test by analyzing the fair value of its goodwill. If the carrying value of the goodwill exceeds its fair value, an impairment charge is recorded. The Company’s reporting units are determined based on its current reporting structure, which as of December 31, 2020 consisted of one reporting unit. The Company found that no indicators of goodwill impairment existed during the year ended December 31, 2020, thus a qualitative approach was used and it was determined goodwill was not impaired. |
Foreign Currency Translation and Other Comprehensive Income | Foreign Currency Translation and Other Comprehensive Income The functional currency of Vivint Canada, Inc. is the Canadian dollar. Accordingly, Vivint Canada, Inc. assets and liabilities are translated from their respective functional currencies into U.S. dollars at period-end rates and Vivint Canada, Inc. |
Letters of Credit | Letters of Credit As of December 31, 2020 and 2019, the Company had $15.3 million and $11.1 million, respectively, of letters of credit issued in the ordinary course of business, all of which are undrawn. |
Derivative Warrant Liability | Derivative warrant liabilities (Restated) The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. The Company evaluates all of its financial instruments, including issued stock purchase warrants, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives, pursuant to ASC 480 and ASC 815-15. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is assessed as part of this evaluation. |
Recent Accounting Pronouncements and Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-13, “Financial Instruments—Credit Losses (Topic 326)” which modifies the measurement of expected credit losses of certain financial instruments. This update is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019 and must be applied using a modified-retrospective approach, with early adoption permitted. The Company adopted ASU 2016-13 as of January 1, 2020. The adoption of the standard did not have a material effect on its consolidated financial statements. |
Restatement of Financial Stat_2
Restatement of Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Impact of the Restatement | (in thousands, except share and per-share amounts): Consolidated Balance Sheets As of December 31, 2020 As Previously Reported Restatement Adjustment As Restated Current Assets: Accounts and notes receivable, net of allowance $ 65,572 $ (875) $ 64,697 Total current assets 441,008 (875) 440,133 Total assets 2,877,493 (875) 2,876,618 Current Liabilities: Accounts payable 81,364 4,292 85,656 Accrued expenses and other current liabilities 239,755 7,569 247,324 Deferred revenue 323,494 (2,351) 321,143 Total current liabilities 757,547 9,510 767,057 Deferred revenue, net of current portion 618,401 (2,803) 615,598 Other long-term obligations 119,374 1,861 121,235 Warrant derivative liabilities — 75,531 75,531 Deferred income tax liabilities 1,265 903 2,168 Total liabilities 4,364,839 85,002 4,449,841 Additional paid-in capital 1,523,705 25,081 1,548,786 Accumulated deficit (2,984,262) (110,958) (3,095,220) Total stockholders’ deficit (1,487,346) (85,877) (1,573,223) Total liabilities and stockholders’ deficit 2,877,493 (875) 2,876,618 Consolidated Statement of Operations Year ended December 31, 2020 As Previously Reported Restatement Adjustment As Restated Recurring and other revenue $ 1,260,730 $ (164) $ 1,260,566 Operating expenses 352,585 (242) 352,343 Selling expenses 302,547 (260) 302,287 General and administrative expenses 267,130 (795) 266,335 Total costs and expenses 1,514,034 (1,297) 1,512,737 Loss from operations (253,304) 1,133 (252,171) Change in fair value of warrant liabilities — 109,250 109,250 Other loss, net 9,104 1,369 10,473 Loss before income taxes (482,875) (109,486) (592,361) Income tax expense 1,365 1,472 2,837 Net loss (484,240) (110,958) (595,198) Net loss per share attributable to common stockholders: Basic and diluted $ (2.70) $ (0.62) $ (3.32) Consolidated Statements of Cash Flows Year ended December 31, 2020 As Previously Reported Restatement Adjustment As Restated Net loss from operations $ (484,240) $ (110,958) $ (595,198) Adjustments to reconcile net loss to net cash used in operating activities of operations: Loss on warrant derivative — 109,250 109,250 Warrant issuance costs — 723 723 Stock-based compensation 199,510 (1,297) 198,213 Deferred income taxes (962) 903 (59) Changes in operating assets and liabilities: Accounts and notes receivable, net (25,559) 875 (24,684) Accounts payable (1,036) 4,292 3,256 Accrued payroll and commissions, accrued expenses, and other current and long-term liabilities 155,418 1,366 156,784 Deferred revenue 301,236 (5,154) 296,082 Net cash provided by operating activities 226,664 — 226,664 Net cash used in investing activities (11,663) — (11,663) Net cash provided by financing activities 94,112 — 94,112 Unaudited Condensed Consolidated Statements of Operations Three Months Ended December 31, 2020 As Previously Reported Restatement Adjustment As Restated Revenues: Recurring and other revenue $ 332,536 $ (113) $ 332,423 Operating expenses 95,218 (603) 94,615 Selling expenses 103,871 2,903 106,774 General and administrative expenses 86,432 788 87,220 Total costs and expenses 432,963 3,088 436,051 Loss from operations (100,427) (3,201) (103,628) Change in fair value of warrant liabilities — 29,357 29,357 Other income, net (277) (591) (868) Loss before income taxes (150,109) (31,967) (182,076) Income tax expense 1,041 1,472 2,513 Net loss (151,150) (33,439) (184,589) Net loss attributable per share to common stockholders: Basic and diluted $ (0.76) $ (0.17) $ (0.93) Unaudited Condensed Consolidated Balance Sheets As of September 30, 2020 As Previously Reported Restatement Adjustment As Restated Current Assets: Accounts and notes receivable, net $ 72,194 $ (377) $ 71,817 Total current assets 442,211 (377) 441,834 Total assets 2,924,679 (377) 2,924,302 Current Liabilities: Accounts payable 53,265 4,476 57,741 Accrued expenses and other current liabilities 214,132 (1,166) 212,966 Deferred revenue 310,043 (1,572) 308,471 Total current liabilities 742,482 1,738 744,220 Deferred revenue, net of current portion 614,092 (1,172) 612,920 Other long-term obligations 127,767 345 128,112 Warrant derivative liabilities — 79,325 79,325 Total liabilities 4,361,949 80,236 4,442,185 Additional paid-in capital 1,424,110 (3,094) 1,421,016 Accumulated deficit (2,833,112) (77,519) (2,910,631) Total stockholders’ deficit (1,437,270) (80,613) (1,517,883) Total liabilities and stockholders’ deficit 2,924,679 (377) 2,924,302 Unaudited Condensed Consolidated Statements of Operations Three Months Ended September 30, 2020 As Previously Reported Restatement Adjustment As Restated Recurring and other revenue $ 318,960 $ 2,054 $ 321,014 Operating expenses 92,016 293 92,309 Selling expenses 79,716 (36) 79,680 General and administrative expenses 68,297 426 68,723 Total costs and expenses 383,994 683 384,677 Loss from operations (65,034) 1,371 (63,663) Change in fair value of warrant liabilities — 974 974 Other income, net (8,286) 1,187 (7,099) Loss before income taxes (107,709) (790) (108,499) Net loss (107,939) (790) (108,729) Net loss attributable per share to common stockholders: Basic and diluted $ (0.58) $ — $ (0.58) Unaudited Condensed Consolidated Statements of Operations Nine Months Ended September 30, 2020 As Previously Reported Restatement Adjustment As Restated Recurring and other revenue $ 928,194 $ (51) $ 928,143 Operating expenses 257,367 361 257,728 Selling expenses 198,676 (3,163) 195,513 General and administrative expenses 180,698 (1,583) 179,115 Total costs and expenses 1,081,071 (4,385) 1,076,686 Loss from operations (152,877) 4,334 (148,543) Change in fair value of warrant liabilities — 79,893 79,893 Other expense, net 9,381 1,960 11,341 Loss before income taxes (332,766) (77,519) (410,285) Net loss (333,090) (77,519) (410,609) Net loss attributable per share to common stockholders: Basic and diluted $ (1.93) $ (0.45) $ (2.38) Unaudited Condensed Consolidated Statement of Cash Flows Nine months ended September 30, 2020 As Previously Reported Restatement Adjustment As Restated Net loss from operations $ (333,090) $ (77,519) $ (410,609) Adjustments to reconcile net loss to net cash used in operating activities of operations: Loss on warrant derivative — 79,893 79,893 Warrant issuance costs — 723 723 Stock-based compensation 121,664 (4,385) 117,279 Changes in operating assets and liabilities: Accounts and notes receivable, net (23,579) 377 (23,202) Accounts payable (28,633) 4,476 (24,157) Accrued payroll and commissions, accrued expenses, and other current and long-term liabilities 185,560 1,948 187,508 Deferred revenue 284,735 (2,744) 281,991 Net cash provided by operating activities 220,040 2,769 222,809 Net cash used in investing activities (8,704) — (8,704) Taxes paid related to net share settlements of stock-based compensation awards — (2,769) (2,769) Net cash provided by financing activities 79,730 (2,769) 76,961 Unaudited Condensed Consolidated Balance Sheets As of June 30, 2020 As Previously Reported Restatement Adjustment As Restated Current Assets: Accounts and notes receivable, net $ 70,879 $ (59) $ 70,820 Total current assets 418,406 (59) 418,347 Total assets 2,829,948 (59) 2,829,889 Current Liabilities: Accounts payable 90,708 3,002 93,710 Accrued expenses and other current liabilities 178,196 (1,146) 177,050 Deferred revenue 265,283 2,080 267,363 Total current liabilities 636,376 3,936 640,312 Deferred revenue, net of current portion 501,743 (1,389) 500,354 Other long-term obligations 108,684 (451) 108,233 Warrant derivative liabilities — 88,080 88,080 Total liabilities 4,234,822 90,176 4,324,998 Additional paid-in capital 1,349,158 (13,506) 1,335,652 Accumulated deficit (2,725,173) (76,729) (2,801,902) Total stockholders’ deficit (1,404,874) (90,235) (1,495,109) Total liabilities and stockholders’ deficit 2,829,948 (59) 2,829,889 Unaudited Condensed Consolidated Statements of Operations Three Months Ended June 30, 2020 As Previously Reported Restatement Adjustment As Restated Revenues: Recurring and other revenue $ 306,002 $ (2,105) $ 303,897 Operating expenses 82,011 248 82,259 Selling expenses 64,733 377 65,110 General and administrative expenses 59,383 586 59,969 Total costs and expenses 346,302 1,211 347,513 Loss from operations (40,300) (3,316) (43,616) Change in fair value of warrant liabilities — 62,202 62,202 Other income, net (8,638) 4,239 (4,399) Loss before income taxes (86,145) (69,757) (155,902) Net loss (87,027) (69,757) (156,784) Net loss attributable per share to common stockholders: Basic and diluted $ (0.49) $ (0.39) $ (0.88) Unaudited Condensed Consolidated Statements of Operations Six Months Ended June 30, 2020 As Previously Reported Restatement Adjustment As Restated Revenues: Recurring and other revenue $ 609,234 $ (2,105) $ 607,129 Operating expenses 165,351 68 165,419 Selling expenses 118,960 (3,127) 115,833 General and administrative expenses 112,401 (2,009) 110,392 Total costs and expenses 697,077 (5,068) 692,009 Loss from operations (87,843) 2,963 (84,880) Change in fair value of warrant liabilities — 78,919 78,919 Other expense, net 17,667 773 18,440 Loss before income taxes (225,057) (76,729) (301,786) Net loss (225,151) (76,729) (301,880) Net loss attributable per share to common stockholders: Basic and diluted $ (1.37) $ (0.46) $ (1.83) Unaudited Condensed Consolidated Statement of Cash Flows Six months ended June 30, 2020 As Previously Reported Restatement Adjustment As Restated Net loss from operations $ (225,151) $ (76,729) $ (301,880) Adjustments to reconcile net loss to net cash used in operating activities of operations: Loss on warrant derivative — 78,919 78,919 Warrant issuance costs — 723 723 Stock-based compensation 63,817 (5,068) 58,749 Changes in operating assets and liabilities: — Accounts and notes receivable, net (16,928) 59 (16,869) Accounts payable 7,256 3,002 10,258 Accrued payroll and commissions, accrued expenses, and other current and long-term liabilities 68,736 (342) 68,394 Deferred revenue 128,248 691 128,939 Net cash provided by operating activities 77,496 1,255 78,751 Net cash used in investing activities (5,666) — (5,666) Taxes paid related to net share settlements of stock-based compensation awards — (1,255) (1,255) Net cash provided by financing activities 172,576 (1,255) 171,321 Unaudited Condensed Consolidated Balance Sheets As of March 31, 2020 As Previously Reported Restatement Adjustment As Restated Total assets $ 2,670,423 $ — $ 2,670,423 Current Liabilities: Accounts payable 102,630 2,006 104,636 Accrued expenses and other current liabilities 158,308 (1,506) 156,802 Deferred revenue 238,363 (924) 237,439 Total current liabilities 564,627 (424) 564,203 Notes payable, net 2,438,918 (4,239) 2,434,679 Deferred revenue, net of current portion 409,497 (23) 409,474 Other long-term obligations 78,612 497 79,109 Warrant derivative liabilities — 56,811 56,811 Total liabilities 4,109,737 52,622 4,162,359 Additional paid-in capital 1,228,709 (45,650) 1,183,059 Accumulated deficit (2,638,146) (6,972) (2,645,118) Total stockholders’ deficit (1,439,314) (52,622) (1,491,936) Total liabilities and stockholders’ deficit 2,670,423 — 2,670,423 Unaudited Condensed Consolidated Statements of Operations Three Months Ended March 31, 2020 As Previously Reported Restatement Adjustment As Restated Operating expenses $ 83,340 $ (180) $ 83,160 Selling expenses 54,227 (3,504) 50,723 General and administrative expenses 53,018 (2,595) 50,423 Total costs and expenses 350,775 (6,279) 344,496 Loss from operations (47,543) 6,279 (41,264) Change in fair value of warrant liabilities — 16,717 16,717 Other expense, net 26,305 (3,466) 22,839 Loss before income taxes (138,912) (6,972) (145,884) Net loss (138,124) (6,972) (145,096) Net loss attributable per share to common stockholders: Basic and diluted $ (0.91) $ (0.05) $ (0.96) Unaudited Condensed Consolidated Statement of Cash Flows Three months ended March 31, 2020 As Previously Reported Restatement Adjustment As Restated Net loss from operations $ (138,124) $ (6,972) $ (145,096) Adjustments to reconcile net loss to net cash used in operating activities of operations: Loss on warrant derivative — 16,717 16,717 Warrant issuance costs — 723 723 Loss on early extinguishment of debt 16,949 (4,239) 12,710 Stock-based compensation 17,070 (6,279) 10,791 Changes in operating assets and liabilities: Accounts payable 37,984 2,006 39,990 Accrued payroll and commissions, accrued expenses, and other current and long-term liabilities (18,386) 2 (18,384) Deferred revenue 10,206 (947) 9,259 Net cash used in operating activities (33,880) 1,011 (32,869) Net cash used in investing activities (1,901) — (1,901) Taxes paid related to net share settlements of stock-based compensation awards — (1,011) (1,011) Net cash provided by financing activities 162,672 (1,011) 161,661 |
Significant Accounting Polici_3
Significant Accounting Policies (Restated) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Changes in Company's Allowance for Accounts Receivable | The changes in the Company’s allowance for accounts receivable were as follows for the periods ended (in thousands): Year ended December 31, 2020 2019 2018 Beginning balance $ 8,118 $ 5,594 $ 5,356 Provision for doubtful accounts 23,778 25,043 19,405 Write-offs and adjustments (21,985) (22,519) (19,167) Balance at end of period $ 9,911 $ 8,118 $ 5,594 The following table summarizes the RIC receivables (in thousands): December 31, 2020 December 31, 2019 RIC receivables, gross $ 145,000 $ 192,058 RIC allowance (28,848) (39,218) Imputed interest (13,275) (20,295) RIC receivables, net $ 102,877 $ 132,545 Classified on the consolidated balance sheets as: Accounts and notes receivable, net $ 44,931 $ 43,733 Long-term notes receivables and other assets, net 57,946 88,812 RIC receivables, net $ 102,877 $ 132,545 |
Schedule Of Depreciation And Amortization Expense | The Company’s depreciation and amortization included in the consolidated statements of operations consisted of the following (in thousands): Year ended December 31, 2020 2019 2018 Amortization of capitalized contract costs $ 481,213 $ 437,285 $ 398,174 Amortization of definite-lived intangibles 69,465 80,468 90,945 Depreciation of property, plant and equipment 20,153 25,687 24,963 Total depreciation and amortization $ 570,831 $ 543,440 $ 514,082 |
Retail Installment Contract R_2
Retail Installment Contract Receivables (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Changes in Company's Allowance for Accounts Receivable | The changes in the Company’s allowance for accounts receivable were as follows for the periods ended (in thousands): Year ended December 31, 2020 2019 2018 Beginning balance $ 8,118 $ 5,594 $ 5,356 Provision for doubtful accounts 23,778 25,043 19,405 Write-offs and adjustments (21,985) (22,519) (19,167) Balance at end of period $ 9,911 $ 8,118 $ 5,594 The following table summarizes the RIC receivables (in thousands): December 31, 2020 December 31, 2019 RIC receivables, gross $ 145,000 $ 192,058 RIC allowance (28,848) (39,218) Imputed interest (13,275) (20,295) RIC receivables, net $ 102,877 $ 132,545 Classified on the consolidated balance sheets as: Accounts and notes receivable, net $ 44,931 $ 43,733 Long-term notes receivables and other assets, net 57,946 88,812 RIC receivables, net $ 102,877 $ 132,545 |
Allowance for Credit Losses on Financing Receivables | The changes in the Company’s RIC allowance were as follows (in thousands): For the Years Ended December 31, 2020 December 31, 2019 RIC allowance, beginning of period $ 39,218 $ 22,080 Write-offs (21,163) (26,018) Recoveries 6,340 4,626 Additions from RICs originated during the period 7,567 20,455 Change in expected credit losses (2,914) 18,572 Other adjustments (1) (200) (497) RIC allowance, end of period $ 28,848 $ 39,218 (1) Other adjustments primarily reflect changes in foreign currency exchange rates related to Canadian RICs. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Debt | The Company’s debt at December 31, 2020 and 2019 consisted of the following (in thousands): December 31, 2020 Outstanding Unamortized Unamortized Deferred Financing Costs (1) Net Carrying Long-Term Debt: 7.875% Senior Secured Notes Due 2022 $ 677,000 $ 7,885 $ (4,697) $ 680,188 7.625% Senior Notes Due 2023 400,000 — (2,241) 397,759 8.500% Senior Secured Notes Due 2024 225,000 — (3,530) 221,470 6.750% Senior Secured Notes Due 2027 600,000 — (5,771) 594,229 Senior Secured Term Loan - noncurrent 933,375 — (10,921) 922,454 Total Long-Term Debt (2) 2,835,375 7,885 (27,160) 2,816,100 Senior Secured Term Loan - current 9,500 — — 9,500 Total Debt $ 2,844,875 $ 7,885 $ (27,160) $ 2,825,600 December 31, 2019 Outstanding Unamortized Unamortized Deferred Financing Costs (1) Net Carrying Long-Term Debt: Senior Secured Revolving Credit Facility $ 245,000 $ — $ — $ 245,000 8.875% Senior Secured Notes Due 2022 270,000 (1,645) (451) 267,904 7.875% Senior Secured Notes Due 2022 900,000 15,480 (9,532) 905,948 7.625% Senior Notes Due 2023 400,000 — (3,081) 396,919 8.500% Senior Secured Notes Due 2024 225,000 — (4,431) 220,569 Senior Secured Term Loan - noncurrent 791,775 — (7,822) 783,953 Total Long-Term Debt 2,831,775 13,835 (25,317) 2,820,293 Current Debt: Senior Secured Term Loan - current (2) 8,100 — — 8,100 8.75% Senior Notes due 2020 454,299 742 (1,721) 453,320 Total Debt $ 3,294,174 $ 14,577 $ (27,038) $ 3,281,713 (1) Unamortized deferred financing costs related to the revolving credit facilities included in deferred financing costs, net on the consolidated balance sheets at December 31, 2020 and 2019 was $1.7 million and $1.1 million, respectively. (2) The current portion of the Term Loan was included in accrued expenses and other current liabilities on the consolidated balance sheets as reported in our audited consolidated financial statements for the year ended December 31, 2019. The Company has reclassified the amounts reported for December 31, 2019 to be included in the current portion of notes payable, net in the condensed consolidated balance sheets. |
Schedule Of Other Expense And Loss On Extinguishment And Deferred Financing Costs | As a result of these analyses, the following amounts of other expense and loss on extinguishment and deferred financing costs were recorded (in thousands): Other expense and loss on extinguishment Deferred financing costs Issuance Original premium extinguished Previously deferred financing costs extinguished New financing costs Total other expense and loss on extinguishment Previously deferred financing rolled over New deferred financing costs Total deferred financing costs For the year ended December 31, 2020 Term Loan February 2020 issuance $ (2,749) $ 4,033 $ 6,146 $ 7,430 $ 205 $ 6,346 $ 6,551 2027 Notes February 2020 issuance — 235 5,045 5,280 6,973 5,461 12,434 Total (2,749) 4,268 11,191 12,710 7,178 11,807 18,985 For the year ended December 31, 2019 2024 Notes May 2019 issuance (588) 1,395 — 807 — 4,956 4,956 For the year ended December 31, 2018 Term Loan September 2018 issuance (953) 4,207 11,317 14,571 — 10,275 10,275 |
Schedule of Deferred Financing Activity | The following tables present deferred financing activity for the years ended December 31, 2020 and 2019 (in thousands): Unamortized Deferred Financing Costs Balance December 31, 2019 Additions Early Extinguishment Amortized Balance December 31, 2020 Revolving Credit Facility $ 1,123 $ 1,027 $ — $ (483) $ 1,667 2020 Notes 1,721 — (1,565) (156) — 2022 Private Placement Notes 451 (205) (221) (25) — 2022 Notes 9,532 — (2,247) (2,588) 4,697 2023 Notes 3,081 — — (840) 2,241 2024 Notes 4,431 — — (901) 3,530 2027 Notes — 6,551 — (780) 5,771 Term Loan 7,822 5,461 (235) (2,127) 10,921 Total Deferred Financing Costs $ 28,161 $ 12,834 $ (4,268) $ (7,900) $ 28,827 Unamortized Deferred Financing Costs Balance December 31, 2018 Additions Early Extinguishment Amortized Balance December 31, 2019 Revolving Credit Facility $ 2,058 $ — $ — $ (935) $ 1,123 2019 Notes — — — — — 2020 Notes 5,380 — (1,395) (2,264) 1,721 2022 Private Placement Notes 602 — — (151) 451 2022 Notes 12,799 — — (3,267) 9,532 2023 Notes 3,922 — — (841) 3,081 2024 Notes — 4,956 — (525) 4,431 Term Loan $ 9,662 $ — $ — $ (1,840) 7,822 Total Deferred Financing Costs $ 34,423 $ 4,956 $ (1,395) $ (9,823) $ 28,161 |
Business Combination (Restate_2
Business Combination (Restated) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Information Related to Business Combination | The following table reconciles the elements of the Business Combination to the consolidated statement of cash flows and the consolidated statement of changes in equity for the year ended December 31, 2020: Recapitalization (in thousands) Cash - Mosaic (net of redemptions) $ 35,344 Cash - Subscribers and Forward Purchasers 453,221 Less fees to underwriters and other transaction costs (25,043) Net cash received from recapitalization 463,522 Less: Warrant derivative liabilities assumed (Restated) (40,094) Less: non-cash net liabilities assumed from Mosaic (5) Less: deferred and accrued transaction costs (1,304) Net contributions from recapitalization (Restated) $ 422,119 The number of shares of Common Stock of Vivint Smart Home Inc. issued immediately following the consummation of the Business Combination is summarized as follows: Number of Shares Common Stock outstanding prior to Business Combination 34,500,000 Less redemption of Mosaic Shares (31,074,592) Common Stock of Mosaic 3,425,408 Shares issued from Fortress PIPE 12,500,000 Shares from Blackstone PIPE 10,000,000 Shares from Additional Forward Purchaser Subscription Agreement 5,000,000 Shares from IPO Forward Purchaser Investment 15,789,474 Shares from Fortress Subscription and Backstop Agreement 2,698,753 Shares from Mosaic Founder Shares 10,379,386 Recapitalization shares 59,793,021 Legacy Vivint Smart Home equity holders 94,937,597 Total shares 154,730,618 |
Balance Sheet Components (Res_2
Balance Sheet Components (Restated) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Balance Sheet Component Balances | The following table presents material balance sheet component balances as of December 31, 2020 and December 31, 2019 (in thousands): December 31, 2020 2019 Prepaid expenses and other current assets Prepaid expenses $ 11,286 $ 7,753 Deposits 1,308 870 Other 1,744 9,440 Total prepaid expenses and other current assets $ 14,338 $ 18,063 Capitalized contract costs Capitalized contract costs $ 3,491,629 $ 2,903,389 Accumulated amortization (2,173,131) (1,688,140) Capitalized contract costs, net $ 1,318,498 $ 1,215,249 Long-term notes receivables and other assets RIC receivables, gross $ 100,069 $ 148,325 RIC allowance (28,848) (39,218) RIC imputed interest (13,275) (20,295) Security deposits 835 6,715 Other 3,729 300 Total long-term notes receivables and other assets, net $ 62,510 $ 95,827 Accrued payroll and commissions Accrued payroll $ 41,590 $ 35,666 Accrued commissions 46,353 36,976 Total accrued payroll and commissions $ 87,943 $ 72,642 Accrued expenses and other current liabilities Accrued interest payable $ 33,340 $ 31,327 Current portion of derivative liability (restated) 142,755 80,366 Service warranty accrual 5,711 8,680 Current portion of warrant derivative liabilities (restated) 8,063 — Accrued taxes 8,700 5,462 Accrued payroll taxes and withholdings 14,391 5,361 Loss contingencies 26,200 1,831 Other 8,164 6,362 Total accrued expenses and other current liabilities (restated) $ 247,324 $ 139,389 |
Property Plant and Equipment (T
Property Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Components of Property and Equipment | Property, plant and equipment consisted of the following (in thousands): December 31, Estimated 2020 2019 Vehicles $ 39,735 $ 46,496 3-5 years Computer equipment and software 72,616 63,197 3-5 years Leasehold improvements 29,126 28,593 2-15 years Office furniture, fixtures and equipment 21,394 20,786 2-7 years Construction in process 6,180 3,480 Property, plant and equipment, gross 169,051 162,552 Accumulated depreciation and amortization (116,672) (101,464) Property, plant and equipment, net $ 52,379 $ 61,088 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill | The change in the carrying amount of goodwill during the year ended December 31, 2020 was the result of foreign currency translation adjustments as well as a $0.4 million addition associated with the acquisition of CrowdStorage (defined below). The changes in the carrying amount of goodwill for the years ended December 31, 2020 and 2019, were as follows (in thousands): Balance as of January 1, 2019 $ 834,855 Effect of CrowdStorage acquisition 453 Effect of Foreign Currency Translation 1,232 Balance as of December 31, 2019 836,540 Effect of Foreign Currency Translation 537 Balance as of December 31, 2020 $ 837,077 |
Schedule of Intangible Asset Balances | The following table presents intangible asset balances as of December 31, 2020 and 2019 (in thousands): December 31, 2020 December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Estimated Definite-lived intangible assets: Customer contracts $ 969,158 $ (862,352) $ 106,806 $ 967,623 $ (794,926) $ 172,697 10 years 2GIG 2.0 technology 17,000 (17,000) — 17,000 (16,534) 466 8 years Other technology 4,725 (4,309) 416 4,725 (2,858) 1,867 2 - 7 years Space Monkey technology 7,100 (7,100) — 7,100 (6,809) 291 6 years Patents 10,843 (6,656) 4,187 12,885 (10,454) 2,431 5 years Total definite-lived intangible assets: 1,008,826 (897,417) 111,409 1,009,333 (831,581) 177,752 Indefinite-lived intangible assets: Domain names 65 — 65 59 — 59 Total Indefinite-lived intangible assets 65 — 65 59 — 59 Total intangible assets, net $ 1,008,891 $ (897,417) $ 111,474 $ 1,009,392 $ (831,581) $ 177,811 |
Schedule of Estimated Future Amortization Expense of Intangible Assets Excluding Patents Currently in Process | Estimated future amortization expense of intangible assets, excluding approximately $0.1 million in patents currently in process, is as follows as of December 31, 2020 (in thousands): 2021 $ 59,823 2022 49,728 2023 679 2024 542 2025 491 Thereafter — Total estimated amortization expense $ 111,263 |
Financial Instruments (Restat_2
Financial Instruments (Restated) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments at Fair Value Based on Valuation Approach Applied to Each Class of Security | The following tables set forth the Company’s cash and cash equivalents’ adjusted cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category recorded as cash and cash equivalents or long-term notes receivables and other assets, net as of December 31, 2020 and 2019 (in thousands): December 31, 2020 Adjusted Cost Unrealized Losses Fair Value Cash and Cash Equivalents Cash $ 283,750 $ — $ 283,750 $ 283,750 Money market funds 30,049 — 30,049 30,049 Total $ 313,799 $ — $ 313,799 $ 313,799 December 31, 2019 Adjusted Cost Unrealized Losses Fair Value Cash and Cash Equivalents Cash $ 4,545 $ — $ 4,545 $ 4,545 Money market funds 4 — 4 4 Total $ 4,549 $ — $ 4,549 $ 4,549 |
Components of Long-Term Debt Including Associated Interest Rates and Related Fair Values | Components of the Company's debt including the associated interest rates and related fair values (in thousands, except interest rates) are as follows: Issuance December 31, 2020 December 31, 2019 Stated Interest Face Value Estimated Fair Value Face Value Estimated Fair Value 2020 Notes — — 454,299 455,253 8.750 % 2022 Notes Private Placement Notes — — 270,000 267,975 8.875 % 2022 Notes 677,000 677,203 900,000 909,000 7.875 % 2023 Notes 400,000 415,200 400,000 378,040 7.625 % 2024 Notes 225,000 238,545 225,000 232,290 8.500 % 2027 Notes 600,000 645,300 — — 6.750 % Term Loan 942,875 942,875 799,875 799,875 N/A Total $ 2,844,875 $ 2,919,123 $ 3,049,174 $ 3,042,433 |
Schedule of Derivative Liabilities at Fair Value | The following table summarizes the fair value and the notional amount of the Company’s outstanding consumer financing program contractual obligation derivative instrument as of December 31, 2020 and 2019 (in thousands): December 31, 2020 2019 (Restated) Consumer Financing Program Contractual Obligations: Fair value $ 227,896 $ 136,863 Notional amount 912,626 534,560 Classified on the consolidated balance sheets as: Accrued expenses and other current liabilities 142,755 80,366 Other long-term obligations 85,141 56,497 Total Consumer Financing Program Contractual Obligation $ 227,896 $ 136,863 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation | The following table summarizes the change in the fair value of the Level 3 outstanding consumer financing program contractual obligation derivative instrument for the years ended December 31, 2020 and 2019 (in thousands): December 31, 2020 2019 (Restated) Balance, beginning of period $ 136,863 $ 117,620 Additions 167,055 94,592 Settlements (71,962) (70,213) Gains included in earnings (4,060) (5,136) Balance, end of period $ 227,896 $ 136,863 |
Schedule of Fair Value of Derivative Warranty Liabilities | The change in the fair value of the derivative warrant liabilities for the year ended December 31, 2020 is summarized as follows (in thousands): Public Warrants Private Placement Warrants Total Derivative Warrant liability (Restated) Warrant liability assumed from the Business Combination $ 9,775 $ 30,319 $ 40,094 Change in fair value of warrant liability 64,038 45,212 109,250 Reclassification of derivative liabilities for exercised warrants (65,750) — (65,750) Balance, end of period $ 8,063 $ 75,531 $ 83,594 |
Quantitative Information Regarding Level 3 Fair Value Measurements Inputs | The following table provides quantitative information regarding Level 3 fair value measurements inputs as their measurement dates: As of December 31, 2020 (Restated) Number of private placement warrants 5,933,334 Exercise price $ 11.5 Stock price $ 20.75 Expiration term (in years) 4.05 Volatility 60 % Risk-free Rate 0.27 % Dividend yield — % |
Restructuring and Asset Impai_2
Restructuring and Asset Impairment Charges (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Results of Operations of Wireless | The following financial information presents the results of operations of Wireless for the years ended December 31, 2019 and 2018: Years Ended December 31, 2019 2018 Recurring and other revenue $ 2,808 $ 6,870 Costs and expenses: Operating expenses 5,455 8,295 Selling expenses 137 674 General and administrative expenses 5,291 15,547 Depreciation and amortization 68 102 Total costs and expenses 10,951 24,618 Loss from operations (8,143) (17,748) Other expenses (income): Interest expense — 2 Other income, net (2,100) (52,021) Net (loss) income $ (6,043) $ 34,271 |
Income Taxes (Restated) (Tables
Income Taxes (Restated) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax Provision | The income tax expense (benefit) consisted of the following (in thousands): Year ended December 31, 2020 2019 2018 (Restated) Current income tax: Federal $ — $ — $ — State 2,174 703 512 Foreign 764 (2) (52) Total 2,938 701 460 Deferred income tax: Federal — (380) — State 903 (73) — Foreign (1,004) 1,065 (2,071) Total (101) 612 (2,071) Income tax expense (benefit) $ 2,837 $ 1,313 $ (1,611) |
Reconciliation of Tax Expense Computed at Statutory Federal Rate and Company's Tax Expense | The following reconciles the tax benefit computed at the statutory federal rate and the Company’s tax expense (benefit) (in thousands): Year ended December 31, 2020 2019 2018 (Restated) Computed expected tax benefit $ (124,580) $ (82,833) $ (98,598) State income taxes, net of federal tax effect 2,636 483 404 Foreign income taxes (383) 232 (690) Other reconciling items 6,790 2,988 — Permanent differences 38,586 7,007 4,406 Change in valuation allowance 79,788 73,436 92,867 Income tax expense (benefit) $ 2,837 $ 1,313 $ (1,611) |
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, 2020 2019 (Restated) Gross deferred tax assets: Net operating loss carryforwards $ 558,972 $ 585,854 Deferred subscriber income 254,722 151,051 Interest expense limitation 119,402 111,682 Accrued expenses and allowances 52,031 26,683 Lease liabilities 15,342 18,773 Purchased intangibles and deferred financing costs 13,765 11,232 Inventory reserves 2,801 3,387 Research and development credits 41 41 Property and equipment 2 — Valuation allowance (664,191) (566,498) Total 352,887 342,205 Gross deferred tax liabilities: Deferred capitalized contract costs (338,141) (325,616) Right of use assets (13,119) (16,355) Purchased intangibles and deferred financing costs (2,092) — Property and equipment (1,703) (2,465) Total (355,055) (344,436) Net deferred tax liabilities $ (2,168) $ (2,231) |
Summary of Net Operating Loss Carryforwards | The Company had gross operating loss carryforwards as follows (in thousands): December 31, 2020 2019 (Restated) Net operating loss carryforwards: Federal $ 2,294,340 $ 2,408,078 States 1,996,245 1,972,423 Canada — 10,390 Total $ 4,290,585 $ 4,390,891 |
Stock-Based Compensation and _2
Stock-Based Compensation and Equity (Restated) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Restricted Stock Activity | A summary of the Rollover Restricted Stock activity for the year ended December 31, 2020 is presented below: Rollover Restricted Stock Weighted Average Unvested Restricted Stock issued under the Business Combination 890,746 $ 7.52 Vested (532,272) 7.89 Forfeited (152,078) 6.67 Unvested at December 31, 2020 206,396 7.22 |
Summary of the SAR Activity | A summary of the Rollover SARs activity for the years ended December 31, 2020 and 2019 is presented below: Rollover SARs Weighted Average Weighted Average Aggregate Outstanding, December 31, 2018 3,284,806 $ 16.90 8.07 $ — Granted 930,865 22.57 Forfeited (482,593) 17.94 Exercised (129,541) 10.30 Outstanding, December 31, 2019 3,603,537 18.17 7.86 0.9 Forfeited (1,055,978) 18.03 Exercised (73,548) 12.35 Outstanding, December 31, 2020 2,474,011 17.59 6.60 7.8 Unvested Rollover SARs expected to vest after December 31, 2020 873,233 19.04 7.14 1.5 Exercisable at December 31, 2020 1,600,778 $ 16.80 6.30 6.3 |
Summary of Earnout Grant Activitiy | A summary of the earnout share activity for those that were subject to stock-based compensation expense under ASC 718, for the year ended December 31, 2020 is presented below: Shares Weighted Average Grant-Date Fair Value per Share Granted 2,112,431 $ 20.87 Vested (1,544,037) 20.28 Forfeited (155,578) 23.86 Unvested at December 31, 2020 412,816 21.98 |
Summary of Restricted Stock Unit Activity | The following summarizes information about RSU transactions for the year ended December 31, 2020: Units Weighted Average Grant-Date Fair Value per Unit Granted 9,467,810 $ 22.77 Forfeited (827,392) 22.86 Unvested at December 31, 2020 8,640,418 22.76 |
Summary of Performance Stock Unit Activity | The following summarizes information about PSU transactions for the year ended December 31, 2020: Units Weighted Average Grant-Date Fair Value per Unit Granted 5,343,990 $ 22.63 Forfeited (466,713) 22.21 Unvested at December 31, 2020 4,877,277 22.67 |
Stock-Based Compensation Expense | Stock-based compensation expense in connection with all stock-based awards for the years ended December 31, 2020, 2019 and 2018 is allocated as follows (in thousands): Year ended December 31, 2020 2019 2018 (Restated) Operating expenses $ 20,157 $ 320 $ 129 Selling expenses 101,623 508 285 General and administrative expenses 76,433 3,413 2,091 Total stock-based compensation $ 198,213 $ 4,241 $ 2,505 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Lease Expense and Supplemental Cash Flow Information | The components of lease expense were as follows (in thousands): Year ended December 31, 2020 2019 Operating lease cost $ 16,784 $ 16,323 Finance lease cost: Amortization of right-of-use assets $ 5,090 $ 5,533 Interest on lease liabilities 453 730 Total finance lease cost $ 5,543 $ 6,263 Supplemental cash flow information related to leases was as follows (in thousands): Year ended December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (17,635) $ (16,713) Operating cash flows from finance leases (453) (730) Financing cash flows from finance leases (7,657) (9,781) Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 3,420 $ 3,423 Finance leases 1,228 8,728 |
Schedule Of Supplemental Balance Sheet Information Related To Leases | Supplemental balance sheet information related to leases was as follows (in thousands, except lease term and discount rate): Year ended December 31, 2020 2019 Operating Leases Operating lease right-of-use assets $ 52,880 $ 65,320 Current operating lease liabilities $ 12,135 $ 11,640 Operating lease liabilities 49,692 63,477 Total operating lease liabilities $ 61,827 $ 75,117 Finance Leases Property, plant and equipment, gross $ 40,571 $ 47,175 Accumulated depreciation (22,976) (22,827) Property, plant and equipment, net $ 17,595 $ 24,348 Current finance lease liabilities $ 3,356 $ 7,708 Finance lease liabilities 2,460 5,474 Total finance lease liabilities $ 5,816 $ 13,182 Weighted Average Remaining Lease Term Operating leases 5 years 6 years Finance leases 1.6 years 1.7 years Weighted Average Discount Rate Operating leases 7 % 7 % Finance leases 4 % 4 % |
Schedule Of Maturities Of Financing Leases Liabilities | Maturities of lease liabilities were as follows (in thousands): Operating Leases Finance Leases Year Ending December 31, 2021 $ 16,341 $ 3,466 2022 14,338 2,400 2023 13,855 152 2024 13,492 20 2025 8,079 — Thereafter 8,747 — Total lease payments 74,852 6,038 Less imputed interest (13,025) (222) Total $ 61,827 $ 5,816 |
Schedule Of Maturities Of Operating Leases Liabilities | Maturities of lease liabilities were as follows (in thousands): Operating Leases Finance Leases Year Ending December 31, 2021 $ 16,341 $ 3,466 2022 14,338 2,400 2023 13,855 152 2024 13,492 20 2025 8,079 — Thereafter 8,747 — Total lease payments 74,852 6,038 Less imputed interest (13,025) (222) Total $ 61,827 $ 5,816 |
Segment Reporting and Busines_2
Segment Reporting and Business Concentrations (Restated) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Revenues and Long-Lived Assets by Geographic Region | Revenues by geographic region were as follows (in thousands): United States Canada Total Revenue from external customers Year ended December 31, 2020 (restated) $ 1,193,640 $ 66,926 $ 1,260,566 Year ended December 31, 2019 $ 1,083,756 $ 72,225 $ 1,155,981 Year ended December 31, 2018 $ 977,877 $ 72,564 $ 1,050,441 |
Basic and Diluted Net Loss Pe_2
Basic and Diluted Net Loss Per Share (Restated) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of the Company’s basic and diluted net loss attributable per share to common stockholders for the years ended December 31, 2020, 2019 and 2018: Year ended December 31, 2020 2019 2018 (Restated) Numerator: Net loss attributable to common stockholders (in thousands) $ (595,198) $ (395,924) $ (472,635) Denominator: Shares used in computing net loss attributable per share to common stockholders, basic and diluted 179,071,278 94,805,201 94,527,648 Net loss attributable per share to common stockholders: Basic and diluted $ (3.32) $ (4.18) $ (5.00) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table discloses securities that could potentially dilute basic net loss per share in the future that were not included in the computation of diluted net loss per share because to do so would have been antidilutive for all periods presented: As of December 31, 2020 2019 2018 Rollover SARs 2,474,011 3,603,537 3,284,806 Rollover LTIPs 2,316,869 4,633,738 4,633,738 Rollover RSUs 51,929 51,929 31,360 RSUs 8,640,418 — — PSUs 4,877,277 — — Public warrants 878,346 — — Private placement warrants 5,933,334 — — Earnout shares reserved for future issuance 1,260,281 — — |
Schedule of Restatement of Fina
Schedule of Restatement of Financial Statements - Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Jan. 17, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Current Assets: | ||||||||
Accounts and notes receivable, net of allowance | $ 64,697 | $ 71,817 | $ 70,820 | $ 64,216 | ||||
Total current assets | 440,133 | 441,834 | 418,347 | 151,450 | ||||
Total assets | 2,876,618 | 2,924,302 | 2,829,889 | $ 2,670,423 | 2,604,408 | |||
Current Liabilities: | ||||||||
Accounts payable | 85,656 | 57,741 | 93,710 | 104,636 | 86,554 | |||
Accrued expenses and other current liabilities | 247,324 | 212,966 | 177,050 | 156,802 | 139,389 | |||
Deferred revenue | 321,143 | 308,471 | 267,363 | 237,439 | 234,612 | |||
Total current liabilities | 767,057 | 744,220 | 640,312 | 564,203 | 1,013,965 | |||
Notes payable, net | 2,372,235 | 2,434,679 | 2,471,659 | |||||
Deferred revenue, net of current portion | 615,598 | 612,920 | 500,354 | 409,474 | 405,786 | |||
Other long-term obligations | 121,235 | 128,112 | 108,233 | 79,109 | 80,540 | |||
Warrant derivative liabilities | 75,531 | 79,325 | 88,080 | 56,811 | $ 40,094 | 0 | ||
Deferred income tax liabilities | 2,168 | 2,231 | ||||||
Total liabilities | 4,449,841 | 4,442,185 | 4,324,998 | 4,162,359 | 4,391,766 | |||
Additional paid-in capital | 1,548,786 | 1,421,016 | 1,335,652 | 1,183,059 | 740,121 | |||
Accumulated deficit | (3,095,220) | (2,910,631) | (2,801,902) | (2,645,118) | (2,500,022) | |||
Total stockholders’ deficit | (1,573,223) | (1,517,883) | (1,495,109) | (1,491,936) | (1,787,358) | $ (1,397,041) | $ (652,375) | |
Total liabilities and stockholders’ deficit | 2,876,618 | 2,924,302 | 2,829,889 | 2,670,423 | $ 2,604,408 | |||
As Previously Reported | ||||||||
Current Assets: | ||||||||
Accounts and notes receivable, net of allowance | 65,572 | 72,194 | 70,879 | |||||
Total current assets | 441,008 | 442,211 | 418,406 | |||||
Total assets | 2,877,493 | 2,924,679 | 2,829,948 | 2,670,423 | ||||
Current Liabilities: | ||||||||
Accounts payable | 81,364 | 53,265 | 90,708 | 102,630 | ||||
Accrued expenses and other current liabilities | 239,755 | 214,132 | 178,196 | 158,308 | ||||
Deferred revenue | 323,494 | 310,043 | 265,283 | 238,363 | ||||
Total current liabilities | 757,547 | 742,482 | 636,376 | 564,627 | ||||
Notes payable, net | 2,438,918 | |||||||
Deferred revenue, net of current portion | 618,401 | 614,092 | 501,743 | 409,497 | ||||
Other long-term obligations | 119,374 | 127,767 | 108,684 | 78,612 | ||||
Warrant derivative liabilities | 0 | 0 | 0 | 0 | ||||
Deferred income tax liabilities | 1,265 | |||||||
Total liabilities | 4,364,839 | 4,361,949 | 4,234,822 | 4,109,737 | ||||
Additional paid-in capital | 1,523,705 | 1,424,110 | 1,349,158 | 1,228,709 | ||||
Accumulated deficit | (2,984,262) | (2,833,112) | (2,725,173) | (2,638,146) | ||||
Total stockholders’ deficit | (1,487,346) | (1,437,270) | (1,404,874) | (1,439,314) | ||||
Total liabilities and stockholders’ deficit | 2,877,493 | 2,924,679 | 2,829,948 | 2,670,423 | ||||
Restatement Adjustment | ||||||||
Current Assets: | ||||||||
Accounts and notes receivable, net of allowance | (875) | (377) | (59) | |||||
Total current assets | (875) | (377) | (59) | |||||
Total assets | (875) | (377) | (59) | 0 | ||||
Current Liabilities: | ||||||||
Accounts payable | 4,292 | 4,476 | 3,002 | 2,006 | ||||
Accrued expenses and other current liabilities | 7,569 | (1,166) | (1,146) | (1,506) | ||||
Deferred revenue | (2,351) | (1,572) | 2,080 | (924) | ||||
Total current liabilities | 9,510 | 1,738 | 3,936 | (424) | ||||
Notes payable, net | (4,239) | |||||||
Deferred revenue, net of current portion | (2,803) | (1,172) | (1,389) | (23) | ||||
Other long-term obligations | 1,861 | 345 | (451) | 497 | ||||
Warrant derivative liabilities | 75,531 | 79,325 | 88,080 | 56,811 | ||||
Deferred income tax liabilities | 903 | |||||||
Total liabilities | 85,002 | 80,236 | 90,176 | 52,622 | ||||
Additional paid-in capital | 25,081 | (3,094) | (13,506) | (45,650) | ||||
Accumulated deficit | (110,958) | (77,519) | (76,729) | (6,972) | ||||
Total stockholders’ deficit | (85,877) | (80,613) | (90,235) | (52,622) | ||||
Total liabilities and stockholders’ deficit | $ (875) | $ (377) | $ (59) | $ 0 |
Schedule of Restatement of Fi_2
Schedule of Restatement of Financial Statements - Statement of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 11 Months Ended | 12 Months Ended | |||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues: | ||||||||||
Recurring and other revenue | $ 332,423 | $ 321,014 | $ 303,897 | $ 607,129 | $ 928,143 | $ 1,260,566 | $ 1,155,981 | $ 1,050,441 | ||
Costs and expenses: | ||||||||||
Operating expenses | 94,615 | 92,309 | 82,259 | $ 83,160 | 165,419 | 257,728 | 352,343 | 369,285 | 355,813 | |
Selling expenses | 106,774 | 79,680 | 65,110 | 50,723 | 115,833 | 195,513 | 302,287 | 193,359 | 213,386 | |
General and administrative expenses | 87,220 | 68,723 | 59,969 | 50,423 | 110,392 | 179,115 | 266,335 | 192,182 | 209,257 | |
Total costs and expenses | 436,051 | 384,677 | 347,513 | 344,496 | 692,009 | 1,076,686 | 1,512,737 | 1,298,266 | 1,297,221 | |
Loss from operations | (103,628) | (63,663) | (43,616) | (41,264) | (84,880) | (148,543) | (252,171) | (142,285) | (246,780) | |
Change in fair value of warrant liabilities | 29,357 | 974 | 62,202 | 16,717 | 78,919 | 79,893 | $ 109,250 | 109,250 | 0 | 0 |
Other loss, net | (868) | (7,099) | (4,399) | 22,839 | 18,440 | 11,341 | 10,473 | (7,665) | (17,323) | |
Loss before income taxes | (182,076) | (108,499) | (155,902) | (145,884) | (301,786) | (410,285) | (592,361) | (394,611) | (474,246) | |
Income tax expense | 2,513 | 2,837 | 1,313 | (1,611) | ||||||
Net loss | $ (184,589) | $ (108,729) | $ (156,784) | $ (145,096) | $ (301,880) | $ (410,609) | $ (595,198) | $ (395,924) | $ (472,635) | |
Basic and diluted (in dollars per share) | $ (0.93) | $ (0.58) | $ (0.88) | $ (0.96) | $ (1.83) | $ (2.38) | $ (3.32) | $ (4.18) | $ (5) | |
As Previously Reported | ||||||||||
Revenues: | ||||||||||
Recurring and other revenue | $ 332,536 | $ 318,960 | $ 306,002 | $ 609,234 | $ 928,194 | $ 1,260,730 | ||||
Costs and expenses: | ||||||||||
Operating expenses | 95,218 | 92,016 | 82,011 | $ 83,340 | 165,351 | 257,367 | 352,585 | |||
Selling expenses | 103,871 | 79,716 | 64,733 | 54,227 | 118,960 | 198,676 | 302,547 | |||
General and administrative expenses | 86,432 | 68,297 | 59,383 | 53,018 | 112,401 | 180,698 | 267,130 | |||
Total costs and expenses | 432,963 | 383,994 | 346,302 | 350,775 | 697,077 | 1,081,071 | 1,514,034 | |||
Loss from operations | (100,427) | (65,034) | (40,300) | (47,543) | (87,843) | (152,877) | (253,304) | |||
Change in fair value of warrant liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Other loss, net | (277) | (8,286) | (8,638) | 26,305 | 17,667 | 9,381 | 9,104 | |||
Loss before income taxes | (150,109) | (107,709) | (86,145) | (138,912) | (225,057) | (332,766) | (482,875) | |||
Income tax expense | 1,041 | 1,365 | ||||||||
Net loss | $ (151,150) | $ (107,939) | $ (87,027) | $ (138,124) | $ (225,151) | $ (333,090) | $ (484,240) | |||
Basic and diluted (in dollars per share) | $ (0.76) | $ (0.58) | $ (0.49) | $ (0.91) | $ (1.37) | $ (1.93) | $ (2.70) | |||
Restatement Adjustment | ||||||||||
Revenues: | ||||||||||
Recurring and other revenue | $ (113) | $ 2,054 | $ (2,105) | $ (2,105) | $ (51) | $ (164) | ||||
Costs and expenses: | ||||||||||
Operating expenses | (603) | 293 | 248 | $ (180) | 68 | 361 | (242) | |||
Selling expenses | 2,903 | (36) | 377 | (3,504) | (3,127) | (3,163) | (260) | |||
General and administrative expenses | 788 | 426 | 586 | (2,595) | (2,009) | (1,583) | (795) | |||
Total costs and expenses | 3,088 | 683 | 1,211 | (6,279) | (5,068) | (4,385) | (1,297) | |||
Loss from operations | (3,201) | 1,371 | (3,316) | 6,279 | 2,963 | 4,334 | 1,133 | |||
Change in fair value of warrant liabilities | 29,357 | 974 | 62,202 | 16,717 | 78,919 | 79,893 | 109,250 | |||
Other loss, net | (591) | 1,187 | 4,239 | (3,466) | 773 | 1,960 | 1,369 | |||
Loss before income taxes | (31,967) | (790) | (69,757) | (6,972) | (76,729) | (77,519) | (109,486) | |||
Income tax expense | 1,472 | 1,472 | ||||||||
Net loss | $ (33,439) | $ (790) | $ (69,757) | $ (6,972) | $ (76,729) | $ (77,519) | $ (110,958) | |||
Basic and diluted (in dollars per share) | $ (0.17) | $ 0 | $ (0.39) | $ (0.05) | $ (0.46) | $ (0.45) | $ (0.62) |
Schedule of Restatement of Fi_3
Schedule of Restatement of Financial Statements - Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 11 Months Ended | 12 Months Ended | |||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||
Net loss from operations | $ (184,589) | $ (108,729) | $ (156,784) | $ (145,096) | $ (301,880) | $ (410,609) | $ (595,198) | $ (395,924) | $ (472,635) | |
Adjustments to reconcile net loss to net cash used in operating activities of operations: | ||||||||||
Loss on warrant derivative | 29,357 | 974 | 62,202 | 16,717 | 78,919 | 79,893 | $ 109,250 | 109,250 | 0 | 0 |
Warrant issuance costs | 723 | 723 | 723 | 723 | 0 | 0 | ||||
Loss on early extinguishment of debt | 12,710 | 12,710 | 806 | 14,571 | ||||||
Stock-based compensation | 10,791 | 58,749 | 117,279 | 198,213 | 4,241 | 2,505 | ||||
Deferred income taxes | (59) | 606 | (2,149) | |||||||
Changes in operating assets and liabilities: | ||||||||||
Accounts and notes receivable, net | (16,869) | (23,202) | (24,684) | (34,486) | (34,008) | |||||
Accounts payable | 39,990 | 10,258 | (24,157) | 3,256 | 5,611 | (27,045) | ||||
Accrued payroll and commissions, accrued expenses, and other current and long-term liabilities | (18,384) | 68,394 | 187,508 | 156,784 | 24,899 | 91,469 | ||||
Deferred revenue | 9,259 | 128,939 | 281,991 | 296,082 | 128,624 | 172,905 | ||||
Net cash provided by operating activities | (32,869) | 78,751 | 222,809 | 226,664 | (221,592) | (220,499) | ||||
Net cash used in investing activities | (1,901) | (5,666) | (8,704) | (11,663) | (5,612) | 32,922 | ||||
Repayments on revolving line of credit | (1,011) | (1,255) | (2,769) | (9,171) | 0 | 0 | ||||
Net cash provided by financing activities | 161,661 | 171,321 | 76,961 | 94,112 | $ 218,914 | $ 196,407 | ||||
As Previously Reported | ||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||
Net loss from operations | (151,150) | (107,939) | (87,027) | (138,124) | (225,151) | (333,090) | (484,240) | |||
Adjustments to reconcile net loss to net cash used in operating activities of operations: | ||||||||||
Loss on warrant derivative | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Warrant issuance costs | 0 | 0 | 0 | 0 | ||||||
Loss on early extinguishment of debt | 16,949 | |||||||||
Stock-based compensation | 17,070 | 63,817 | 121,664 | 199,510 | ||||||
Deferred income taxes | (962) | |||||||||
Changes in operating assets and liabilities: | ||||||||||
Accounts and notes receivable, net | (16,928) | (23,579) | (25,559) | |||||||
Accounts payable | 37,984 | 7,256 | (28,633) | (1,036) | ||||||
Accrued payroll and commissions, accrued expenses, and other current and long-term liabilities | (18,386) | 68,736 | 185,560 | 155,418 | ||||||
Deferred revenue | 10,206 | 128,248 | 284,735 | 301,236 | ||||||
Net cash provided by operating activities | (33,880) | 77,496 | 220,040 | 226,664 | ||||||
Net cash used in investing activities | (1,901) | (5,666) | (8,704) | (11,663) | ||||||
Repayments on revolving line of credit | 0 | 0 | 0 | |||||||
Net cash provided by financing activities | 162,672 | 172,576 | 79,730 | 94,112 | ||||||
Restatement Adjustment | ||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||
Net loss from operations | (33,439) | (790) | (69,757) | (6,972) | (76,729) | (77,519) | (110,958) | |||
Adjustments to reconcile net loss to net cash used in operating activities of operations: | ||||||||||
Loss on warrant derivative | $ 29,357 | $ 974 | $ 62,202 | 16,717 | 78,919 | 79,893 | 109,250 | |||
Warrant issuance costs | 723 | 723 | 723 | 723 | ||||||
Loss on early extinguishment of debt | (4,239) | |||||||||
Stock-based compensation | (6,279) | (5,068) | (4,385) | (1,297) | ||||||
Deferred income taxes | 903 | |||||||||
Changes in operating assets and liabilities: | ||||||||||
Accounts and notes receivable, net | 59 | 377 | 875 | |||||||
Accounts payable | 2,006 | 3,002 | 4,476 | 4,292 | ||||||
Accrued payroll and commissions, accrued expenses, and other current and long-term liabilities | 2 | (342) | 1,948 | 1,366 | ||||||
Deferred revenue | (947) | 691 | (2,744) | (5,154) | ||||||
Net cash provided by operating activities | 1,011 | 1,255 | 2,769 | 0 | ||||||
Net cash used in investing activities | 0 | 0 | 0 | 0 | ||||||
Repayments on revolving line of credit | (1,011) | (1,255) | (2,769) | |||||||
Net cash provided by financing activities | $ (1,011) | $ (1,255) | $ (2,769) | $ 0 |
Significant Accounting Polici_4
Significant Accounting Policies (Restated) - Additional Information (Detail) | 12 Months Ended | |||
Dec. 31, 2020USD ($)paymentunit | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Contract with customer, term | 3 years | |||
Accounts receivable | $ 19,800,000 | $ 20,500,000 | ||
Allowance for doubtful accounts | 9,911,000 | 8,118,000 | $ 5,594,000 | $ 5,356,000 |
Provision for doubtful accounts | $ 23,778,000 | 25,043,000 | 19,405,000 | |
Capitalized contract cost, amortization period | 5 years | |||
Capitalized contract costs, expected period of benefit | 5 years | |||
Long lived asset impairment | $ 0 | 0 | 0 | |
Deferred financing cost, net | 28,827,000 | 28,161,000 | 34,423,000 | |
Amortization of deferred financing costs and bond premiums and discounts | 3,956,000 | 4,703,000 | 5,152,000 | |
Sales commission included in accrued payroll and commissions | 4,100,000 | 4,500,000 | ||
Other long-term obligations | 23,800,000 | 20,700,000 | ||
Advertising expenses incurred | $ 70,900,000 | 60,400,000 | 47,200,000 | |
Uncertain income tax position percentage | 50.00% | |||
Number of reporting units | unit | 1 | |||
Goodwill, impairment loss | $ 0 | 0 | 0 | |
Intercompany translation gains (losses) | 600,000 | 3,400,000 | (7,100,000) | |
Issued and unused letters of credit | $ 15,300,000 | 11,100,000 | ||
SkyControl Panels | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Percentage of installed panels | 92.00% | |||
2GIG Sale | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Percentage of installed panels | 8.00% | |||
Minimum | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Liability percentage | 5.00% | |||
Estimated useful life of intangible assets | 2 years | |||
Maximum | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Liability percentage | 100.00% | |||
Estimated useful life of intangible assets | 10 years | |||
Interest Expense | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Amortization of deferred financing costs and bond premiums and discounts | $ 7,900,000 | 9,800,000 | 10,400,000 | |
Notes Payable | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Deferred financing cost, net | 27,200,000 | 27,000,000 | ||
Deferred financing cost, accumulated amortization | 70,900,000 | 63,500,000 | ||
Revolving Credit Facility | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Issued and unused letters of credit | 334,700,000 | |||
Revolving Credit Facility | Line of Credit | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Deferred financing cost, net | 1,667,000 | 1,123,000 | $ 2,058,000 | |
Deferred financing cost, accumulated amortization | $ 11,000,000 | $ 10,600,000 | ||
Vivint Flex Pay | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Number of payment options | payment | 3 | |||
Installment loans available to qualified customers, maximum amount provided by third party | $ 4,000 | |||
Vivint Flex Pay | Minimum | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Installment loans available to qualified customers, annual percentage rate | 0.00% | |||
Installment loans available to qualified customers, term of loan | 42 months | |||
Vivint Flex Pay | Maximum | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Installment loans available to qualified customers, annual percentage rate | 9.99% | |||
Installment loans available to qualified customers, term of loan | 60 months | |||
Subscriber Contracts | Minimum | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Contract with customer, term | 3 years | |||
Subscriber Contracts | Maximum | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Contract with customer, term | 5 years |
Significant Accounting Polici_5
Significant Accounting Policies (Restated) - Changes in Company's Allowance for Accounts Receivable (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 8,118 | $ 5,594 | $ 5,356 |
Provision for doubtful accounts | 23,778 | 25,043 | 19,405 |
Write-offs and adjustments | (21,985) | (22,519) | (19,167) |
Balance at end of period | $ 9,911 | $ 8,118 | $ 5,594 |
Significant Accounting Polici_6
Significant Accounting Policies (Restated) - Depreciation and Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Amortization of capitalized contract costs | $ 481,213 | $ 437,285 | $ 398,174 |
Total depreciation and amortization | 570,831 | 543,440 | 514,082 |
Depreciation of property, plant and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total depreciation and amortization | 20,153 | 25,687 | 24,963 |
Amortization of definite-lived intangibles | |||
Property, Plant and Equipment [Line Items] | |||
Total depreciation and amortization | $ 69,465 | $ 80,468 | $ 90,945 |
Revenue and Capitalized Contr_2
Revenue and Capitalized Contract Costs - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Service warranty accrual | $ 5,711 | $ 8,680 |
Revenue recognized that were included in deferred revenue | 235,900 | $ 225,900 |
Revenue expected to be recognized from remaining performance obligations for subscription contracts | $ 3,000,000 | |
Expected life of customers | 5 years |
Revenue and Capitalized Contr_3
Revenue and Capitalized Contract Costs - Performance Obligation, Expected Timing (Details) | Dec. 31, 2020 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 24 months |
Percentage revenue of related to remaining performance obligation expected to recognized over the next 24 months | 61.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 36 months |
Smart Home Services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 5 years |
Retail Installment Contract R_3
Retail Installment Contract Receivables - Installment Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
RIC allowance | $ (28,848) | $ (39,218) | |
Imputed interest | (13,275) | (20,295) | |
Retail Installment Contracts | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
RIC receivables, gross | 145,000 | 192,058 | |
RIC allowance | (28,848) | (39,218) | |
Imputed interest | (13,275) | (20,295) | |
RIC receivables, net | 102,877 | 132,545 | |
Classified on the consolidated balance sheets as: | |||
Accounts and notes receivable, net | 44,931 | 43,733 | |
Long-term notes receivables and other assets, net | 57,946 | 88,812 | |
RIC receivables, net | 102,877 | 132,545 | |
Interest income | $ 10,600 | $ 13,600 | $ 14,900 |
Vivint Flex Pay | Minimum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Installment loans available to qualified customers, term of loan | 42 months | ||
Vivint Flex Pay | Maximum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Installment loans available to qualified customers, term of loan | 60 months |
Retail Installment Contract R_4
Retail Installment Contract Receivables - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Jun. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Change in expected credit losses | $ 9,259 | $ 128,939 | $ 281,991 | $ 296,082 | $ 128,624 | $ 172,905 |
Retail Installment Contracts | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
RIC allowance, beginning of period | $ 39,218 | $ 39,218 | $ 39,218 | 39,218 | 22,080 | |
Write-offs | (21,163) | (26,018) | ||||
Recoveries | 6,340 | 4,626 | ||||
Additions from RICs originated during the period | 7,567 | 20,455 | ||||
Change in expected credit losses | (2,914) | 18,572 | ||||
Other adjustments | (200) | (497) | ||||
RIC allowance, end of period | $ 28,848 | $ 39,218 | $ 22,080 |
Retail Installment Contract R_5
Retail Installment Contract Receivables - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Period of RIC customer history | 2 years | ||||||
Change in expected credit losses | $ 9,259 | $ 128,939 | $ 281,991 | $ 296,082 | $ 128,624 | $ 172,905 | |
Increase (decrease) to earnings per share from change in accounting estimate | $ 0.10 | ||||||
Uncollectible Receivables | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Change in expected credit losses | $ 17,500 | ||||||
Retail Installment Contracts | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Change in expected credit losses | (2,914) | $ 18,572 | |||||
Other revenue | $ 10,600 | $ 13,600 | $ 14,900 | ||||
Retail Installment Contracts | Uncollectible Receivables | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Change in expected credit losses | 26,600 | ||||||
Other revenue | $ (9,100) |
Long-Term Debt - Summary of Deb
Long-Term Debt - Summary of Debt (Detail) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Outstanding Principal | $ 2,844,875,000 | $ 3,294,174,000 |
Unamortized Premium (Discount) | 7,885,000 | 14,577,000 |
Unamortized Deferred Financing Costs | (27,160,000) | (27,038,000) |
Net Carrying Amount | 2,825,600,000 | 3,281,713,000 |
Total Long-Term Debt (2) | ||
Debt Instrument [Line Items] | ||
Outstanding Principal, excluding current maturities | 2,835,375,000 | 2,831,775,000 |
Unamortized Premium (Discount) | 7,885,000 | 13,835,000 |
Unamortized Deferred Financing Costs | (27,160,000) | (25,317,000) |
Net Carrying Amount | $ 2,816,100,000 | $ 2,820,293,000 |
Senior Notes | 8.875% Senior Secured Notes Due 2022 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (percentage) | 8.875% | 8.875% |
Outstanding Principal, excluding current maturities | $ 270,000,000 | |
Unamortized Premium (Discount) | (1,645,000) | |
Unamortized Deferred Financing Costs | (451,000) | |
Net Carrying Amount | $ 267,904,000 | |
Senior Notes | 7.875% Senior Secured Notes Due 2022 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (percentage) | 7.875% | 7.875% |
Outstanding Principal, excluding current maturities | $ 677,000,000 | $ 900,000,000 |
Unamortized Premium (Discount) | 7,885,000 | 15,480,000 |
Unamortized Deferred Financing Costs | (4,697,000) | (9,532,000) |
Net Carrying Amount | $ 680,188,000 | $ 905,948,000 |
Senior Notes | 7.625% Senior Notes Due 2023 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (percentage) | 7.625% | 7.625% |
Outstanding Principal, excluding current maturities | $ 400,000,000 | $ 400,000,000 |
Unamortized Premium (Discount) | 0 | 0 |
Unamortized Deferred Financing Costs | (2,241,000) | (3,081,000) |
Net Carrying Amount | $ 397,759,000 | $ 396,919,000 |
Senior Notes | 8.500% Senior Secured Notes Due 2024 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (percentage) | 8.50% | 8.50% |
Outstanding Principal, excluding current maturities | $ 225,000,000 | $ 225,000,000 |
Unamortized Premium (Discount) | 0 | 0 |
Unamortized Deferred Financing Costs | (3,530,000) | (4,431,000) |
Net Carrying Amount | $ 221,470,000 | $ 220,569,000 |
Senior Notes | 6.750% Senior Secured Notes Due 2027 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (percentage) | 6.75% | |
Outstanding Principal, excluding current maturities | $ 600,000,000 | |
Unamortized Premium (Discount) | 0 | |
Unamortized Deferred Financing Costs | (5,771,000) | |
Net Carrying Amount | $ 594,229,000 | |
Senior Notes | 8.75% Senior Notes due 2020 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (percentage) | 8.75% | 8.75% |
Outstanding Principal, including current maturities | $ 454,299,000 | |
Unamortized Premium (Discount) | 742,000 | |
Unamortized Deferred Financing Costs | (1,721,000) | |
Net Carrying Amount | 453,320,000 | |
Term Loan | Term Loan | ||
Debt Instrument [Line Items] | ||
Outstanding Principal, excluding current maturities | $ 933,375,000 | 791,775,000 |
Outstanding Principal, including current maturities | 9,500,000 | 8,100,000 |
Unamortized Premium (Discount) | 0 | 0 |
Unamortized Deferred Financing Costs | (10,921,000) | (7,822,000) |
Net Carrying Amount | 922,454,000 | 783,953,000 |
Net Carrying Amount | 9,500,000 | 8,100,000 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Deferred financing costs, net | 1,700,000 | 1,100,000 |
Revolving Credit Facility | Senior Notes | ||
Debt Instrument [Line Items] | ||
Outstanding Principal, excluding current maturities | $ 245,000,000 | |
Unamortized Premium (Discount) | 0 | |
Unamortized Deferred Financing Costs | 0 | |
Net Carrying Amount | $ 245,000,000 |
Long-Term Debt - Notes Payable
Long-Term Debt - Notes Payable (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Jun. 01, 2023 | Dec. 31, 2019 | |
Senior Notes | 2020 Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate (percentage) | 8.75% | 8.75% | |
Senior Notes | 8.875% Senior Secured Notes Due 2022 | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate (percentage) | 8.875% | 8.875% | |
Senior Notes | 7.875% Senior Secured Notes Due 2022 | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 677,000,000 | ||
Debt instrument interest rate (percentage) | 7.875% | 7.875% | |
Senior Notes | 7.625% Senior Notes Due 2023 | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 400,000,000 | ||
Debt instrument interest rate (percentage) | 7.625% | 7.625% | |
Senior Notes | 8.500% Senior Secured Notes Due 2024 | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 225,000,000 | ||
Debt instrument interest rate (percentage) | 8.50% | 8.50% | |
Senior Notes | 6.750% Senior Secured Notes Due 2027 | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate (percentage) | 6.75% | ||
Term Loan | September 2018 Issuance | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 942,900,000 | ||
Debt instrument, redemption price, percentage of principal amount redeemed (as a percentage) | 0.25% | ||
Federal Funds Effective Swap Rate | Term Loan | |||
Debt Instrument [Line Items] | |||
Variable Interest rate (percentage) | 0.50% | ||
LIBOR Referenced To US Dollar Deposits | LIBOR | Term Loan | |||
Debt Instrument [Line Items] | |||
Variable Interest rate (percentage) | 1.00% | ||
LIBOR Referenced To LIBOR For Dollars In Period Of Borrowing | LIBOR | Term Loan | |||
Debt Instrument [Line Items] | |||
Variable Interest rate (percentage) | 5.00% | ||
LIBOR Referenced To LIBOR For Dollars In Period Of Borrowing | Base Rate | Term Loan | |||
Debt Instrument [Line Items] | |||
Variable Interest rate (percentage) | 4.00% | ||
Forecast | $125.0 Million 2023 Notes Remaining Outstanding Or Has Not Been Refinanced | Senior Notes | 7.625% Senior Notes Due 2023 | |||
Debt Instrument [Line Items] | |||
Principal amount outstanding threshold for accelerated maturity | $ 125,000,000 |
Long-Term Debt - Other Expense
Long-Term Debt - Other Expense and Loss on Extinguishment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Previously deferred financing costs extinguished | $ 4,268 | $ 1,395 | |
New financing costs | (12,894) | (4,896) | $ (9,302) |
February 2020 Issuance | |||
Debt Instrument [Line Items] | |||
Original premium extinguished | (2,749) | ||
Previously deferred financing costs extinguished | 4,268 | ||
New financing costs | 11,191 | ||
Total other expense and loss on extinguishment | 12,710 | ||
Previously deferred financing rolled over | 7,178 | ||
New deferred financing costs | 11,807 | ||
Total deferred financing costs | 18,985 | ||
February 2020 Issuance | Senior Notes | |||
Debt Instrument [Line Items] | |||
Original premium extinguished | 0 | ||
Previously deferred financing costs extinguished | 235 | ||
New financing costs | 5,045 | ||
Total other expense and loss on extinguishment | 5,280 | ||
Previously deferred financing rolled over | 6,973 | ||
New deferred financing costs | 5,461 | ||
Total deferred financing costs | 12,434 | ||
February 2020 Issuance | Term Loan | |||
Debt Instrument [Line Items] | |||
Original premium extinguished | (2,749) | ||
Previously deferred financing costs extinguished | 4,033 | ||
New financing costs | 6,146 | ||
Total other expense and loss on extinguishment | 7,430 | ||
Previously deferred financing rolled over | 205 | ||
New deferred financing costs | 6,346 | ||
Total deferred financing costs | $ 6,551 | ||
May 2019 Issuance | Senior Notes | |||
Debt Instrument [Line Items] | |||
Original premium extinguished | (588) | ||
Previously deferred financing costs extinguished | 1,395 | ||
New financing costs | 0 | ||
Total other expense and loss on extinguishment | 807 | ||
Previously deferred financing rolled over | 0 | ||
New deferred financing costs | 4,956 | ||
Total deferred financing costs | $ 4,956 | ||
September 2018 Issuance | Senior Notes | |||
Debt Instrument [Line Items] | |||
Original premium extinguished | (953) | ||
Previously deferred financing costs extinguished | 4,207 | ||
New financing costs | 11,317 | ||
Total other expense and loss on extinguishment | 14,571 | ||
Previously deferred financing rolled over | 0 | ||
New deferred financing costs | 10,275 | ||
Total deferred financing costs | $ 10,275 |
Long-Term Debt - Deferred Finan
Long-Term Debt - Deferred Financing Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred Financing Activity [Roll Forward] | ||
Beginning balance | $ 28,161 | $ 34,423 |
Additions | 12,834 | 4,956 |
Early Extinguishment | (4,268) | (1,395) |
Amortized | (7,900) | (9,823) |
Ending balance | 28,827 | 28,161 |
Senior Notes | 2019 Notes | ||
Deferred Financing Activity [Roll Forward] | ||
Beginning balance | 0 | 0 |
Additions | 0 | |
Early Extinguishment | 0 | |
Amortized | 0 | |
Ending balance | 0 | |
Senior Notes | 2020 Notes | ||
Deferred Financing Activity [Roll Forward] | ||
Beginning balance | 1,721 | 5,380 |
Additions | 0 | 0 |
Early Extinguishment | (1,565) | (1,395) |
Amortized | (156) | (2,264) |
Ending balance | 0 | 1,721 |
Senior Notes | 2022 Notes Private Placement Notes | ||
Deferred Financing Activity [Roll Forward] | ||
Beginning balance | 451 | 602 |
Additions | (205) | 0 |
Early Extinguishment | (221) | 0 |
Amortized | (25) | (151) |
Ending balance | 0 | 451 |
Senior Notes | 2022 Notes | ||
Deferred Financing Activity [Roll Forward] | ||
Beginning balance | 9,532 | 12,799 |
Additions | 0 | 0 |
Early Extinguishment | (2,247) | 0 |
Amortized | (2,588) | (3,267) |
Ending balance | 4,697 | 9,532 |
Senior Notes | 2023 Notes | ||
Deferred Financing Activity [Roll Forward] | ||
Beginning balance | 3,081 | 3,922 |
Additions | 0 | 0 |
Early Extinguishment | 0 | 0 |
Amortized | (840) | (841) |
Ending balance | 2,241 | 3,081 |
Senior Notes | 2024 Notes | ||
Deferred Financing Activity [Roll Forward] | ||
Beginning balance | 4,431 | 0 |
Additions | 0 | 4,956 |
Early Extinguishment | 0 | 0 |
Amortized | (901) | (525) |
Ending balance | 3,530 | 4,431 |
Senior Notes | 2027 Notes | ||
Deferred Financing Activity [Roll Forward] | ||
Beginning balance | 0 | |
Additions | 6,551 | |
Early Extinguishment | 0 | |
Amortized | (780) | |
Ending balance | 5,771 | 0 |
Term Loan | September 2018 Issuance | ||
Deferred Financing Activity [Roll Forward] | ||
Beginning balance | 7,822 | 9,662 |
Additions | 5,461 | 0 |
Early Extinguishment | (235) | 0 |
Amortized | (2,127) | (1,840) |
Ending balance | 10,921 | 7,822 |
Revolving Credit Facility | Line of Credit | ||
Deferred Financing Activity [Roll Forward] | ||
Beginning balance | 1,123 | 2,058 |
Additions | 1,027 | 0 |
Early Extinguishment | 0 | 0 |
Amortized | (483) | (935) |
Ending balance | $ 1,667 | $ 1,123 |
Long-Term Debt - Revolving Cred
Long-Term Debt - Revolving Credit Facility (Details) - USD ($) | Aug. 01, 2024 | Jun. 01, 2023 | Sep. 01, 2022 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 10, 2017 |
Debt Instrument [Line Items] | ||||||
Issued and unused letters of credit | $ 15,300,000 | $ 11,100,000 | ||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 350,000,000 | |||||
Step down margin (as a percentage) | 25.00% | |||||
Commitment fee, step down (percentage) | 12.50% | |||||
Outstanding borrowings | $ 0 | $ 245,000,000 | ||||
Issued and unused letters of credit | $ 334,700,000 | |||||
Revolving Credit Facility | Federal Funds Effective Swap Rate | ||||||
Debt Instrument [Line Items] | ||||||
Variable Interest rate (percentage) | 0.50% | |||||
Revolving Credit Facility | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Variable Interest rate (percentage) | 1.00% | |||||
Revolving Credit Facility | Series A- Revolving Commitments | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 10,900,000 | |||||
Revolving Credit Facility | Series A- Revolving Commitments | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Variable Interest rate (percentage) | 2.75% | |||||
Revolving Credit Facility | Series C- Revolving Commitments | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 330,800,000 | |||||
Revolving Credit Facility | Series A and Series C Revolving Commitments | ||||||
Debt Instrument [Line Items] | ||||||
Variable Interest rate (percentage) | 1.75% | |||||
Revolving Credit Facility | Series B- Revolving Commitments | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 8,300,000 | |||||
Revolving Credit Facility | Series B- Revolving Commitments | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Variable Interest rate (percentage) | 3.75% | |||||
Revolving Credit Facility | Series B- Revolving Commitments | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Variable Interest rate (percentage) | 2.75% | |||||
$325.0 Million 2022 Notes Remain Outstanding Or Has Not Been Refinanced | Forecast | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount outstanding threshold for accelerated maturity | $ 350,000,000 | |||||
Days prior to maturity | 91 days | |||||
$125.0 Million 2023 Notes Remain Outstanding Or Has Not Been Refinanced | Forecast | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount outstanding threshold for accelerated maturity | $ 125,000,000 | |||||
Days prior to maturity | 91 days | |||||
$125.0 Million 2024 Notes Remain Outstanding Or Has Not Been Refinanced | Forecast | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount outstanding threshold for accelerated maturity | $ 125,000,000 | |||||
Days prior to maturity | 91 days |
Business Combination (Restate_3
Business Combination (Restated) (Details) $ / shares in Units, $ in Millions | Jan. 17, 2020USD ($)$ / sharesshares | Jan. 16, 2020$ / shares | Dec. 31, 2020$ / shares | Dec. 31, 2019$ / shares | Jun. 28, 2019$ / shares |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |||
Warrants, expiration period | 5 years | ||||
Fortress Investment Group | |||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||
Shares from Fortress Subscription And Backstop Agreement (in shares) | 2,698,753 | ||||
Merger | |||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | ||||
Conversion ratio for founder shares | 1.2 | ||||
Warrants, expiration period | 5 years | ||||
Shares from Fortress Subscription And Backstop Agreement (in shares) | 2,698,753 | ||||
Shares from Additional Forward Purchaser Subscription Agreement (in shares) | 5,000,000 | ||||
Forward Purchase Agreement, share purchase price (in dollars per share) | $ / shares | $ 10 | ||||
Percentage of Mosaic Sponsor LLC's founder shares and private placement warrants forfeited (percent) | 25.00% | ||||
Common stock issued per share of founder share forefeited | 1.20 | ||||
Shares from IPO Forward Purchaser Investment (in shares) | 15,789,474 | ||||
Conversion ratio of preferred stock to common stock | 1.43 | ||||
Merger | Fortress Investment Group | |||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||
Purchase price of shares | $ | $ 27.8 | ||||
Shares redeemed (in shares) | 31,074,592 | ||||
Price of shares redeemed (in dollars per share) | $ / shares | $ 10.29 | ||||
Merger | Legacy Vivint Smart Home | |||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | ||||
Merger | Fortress Investment Group | |||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||
Shares issued from PIPE (in shares) | 12,500,000 | ||||
Purchase price of shares | $ | $ 125 | ||||
Merger | Blackstone Management Partners L.L.C. | |||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||
Shares issued from PIPE (in shares) | 10,000,000 | ||||
Purchase price of shares | $ | $ 100 | ||||
Merger | Certain Investors | |||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||
Shares from IPO Forward Purchaser Investment (in shares) | 15,789,474 | ||||
IPO Forward Purchase Investment, share purchase price (in dollars per share) | $ / shares | $ 9.50 | ||||
Common Class A | |||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | ||||
Common Class A | Merger | |||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||
Conversion ratio for legacy shares | 84.5320916792 | ||||
Conversion ratio for founder shares | 1.20 |
Business Combination (Restate_4
Business Combination (Restated) - Schedule of Net Impact (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Jan. 17, 2020 | |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||||
Net cash received from recapitalization | $ 463,522 | $ 0 | $ 0 | ||||
Less: Warrant derivative liabilities assumed (Restated) | (75,531) | $ 0 | $ (79,325) | $ (88,080) | $ (56,811) | $ (40,094) | |
Merger | |||||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||||||
Cash - Mosaic (net of redemptions) | 35,344 | ||||||
Cash - Subscribers and Forward Purchasers | 453,221 | ||||||
Less fees to underwriters and other transaction costs | (25,043) | ||||||
Net cash received from recapitalization | 463,522 | ||||||
Less: non-cash net liabilities assumed from Mosaic | (5) | ||||||
Less: deferred and accrued transaction costs | (1,304) | ||||||
Net contributions from recapitalization (Restated) | $ 422,119 |
Business Combination (Restate_5
Business Combination (Restated) - Schedule of Shares Issued (Details) - shares | Jan. 17, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||
Common stock, outstanding (in shares) | 154,730,618 | 202,216,341 | 94,937,597 |
Merger | |||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||
Shares from Additional Forward Purchaser Subscription Agreement (in shares) | 5,000,000 | ||
Shares from IPO Forward Purchaser Investment (in shares) | 15,789,474 | ||
Shares from Fortress Subscription And Backstop Agreement (in shares) | 2,698,753 | ||
Shares from Mosaic Founder Shares (in shares) | 10,379,386 | ||
Recapitalization transaction (in shares) | 59,793,021 | ||
Mosaic | Merger | |||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||
Common Stock outstanding prior to Business Combination (in shares) | 34,500,000 | ||
Less redemption of Mosaic Shares (in shares) | (31,074,592) | ||
Common Stock of Mosaic (in shares) | 3,425,408 | ||
Fortress Investment Group | Merger | |||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||
Shares issued from PIPE (in shares) | 12,500,000 | ||
Blackstone Management Partners L.L.C. | Merger | |||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||
Shares issued from PIPE (in shares) | 10,000,000 | ||
Legacy Vivint Smart Home | Merger | |||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||
Common stock, outstanding (in shares) | 94,937,597 |
Business Combination (Restate_6
Business Combination (Restated) - Earnout Consideration (Details) - $ / shares | Jan. 17, 2020 | Sep. 30, 2020 |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||
Earnout consideration, shares issued (in shares) | 36,084,141 | |
Merger | ||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||
Earnout consideration, contingent shares (in shares) | 37,500,000 | |
First Share Issuance | Merger | ||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||
Earnout consideration, contingent stock, first issuance (in shares) | 12,500,000 | |
Earnout consideration, threshold share price (in dollars per share) | $ 12.50 | |
Earnout consideration, threshold trading days | 20 days | |
Earnout consideration, threshold trading day period | 30 days | |
Second Share Issuance | Merger | ||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||
Earnout consideration, contingent stock, first issuance (in shares) | 12,500,000 | |
Earnout consideration, threshold share price (in dollars per share) | $ 15 | |
Earnout consideration, threshold trading days | 20 days | |
Earnout consideration, threshold trading day period | 30 days | |
Third Share Issuance | Merger | ||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||
Earnout consideration, contingent stock, first issuance (in shares) | 12,500,000 | |
Earnout consideration, threshold share price (in dollars per share) | $ 17.50 | |
Earnout consideration, threshold trading days | 20 days | |
Earnout consideration, threshold trading day period | 30 days |
Balance Sheet Components (Res_3
Balance Sheet Components (Restated) - Schedule of Balance Sheet Component Balances (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Prepaid expenses | $ 11,286 | $ 7,753 | |||
Deposits | 1,308 | 870 | |||
Other | 1,744 | 9,440 | |||
Total prepaid expenses and other current assets | 14,338 | 18,063 | |||
Capitalized contract costs | |||||
Capitalized contract costs | 3,491,629 | 2,903,389 | |||
Accumulated amortization | (2,173,131) | (1,688,140) | |||
Capitalized contract costs, net | 1,318,498 | 1,215,249 | |||
Long-term notes receivables and other assets | |||||
RIC receivables, gross | 100,069 | 148,325 | |||
RIC allowance | (28,848) | (39,218) | |||
RIC imputed interest | (13,275) | (20,295) | |||
Security deposits | 835 | 6,715 | |||
Other | 3,729 | 300 | |||
Total long-term notes receivables and other assets, net | 62,510 | 95,827 | |||
Accrued payroll and commissions | |||||
Accrued payroll | 41,590 | 35,666 | |||
Accrued commissions | 46,353 | 36,976 | |||
Total accrued payroll and commissions | 87,943 | 72,642 | |||
Accrued expenses and other current liabilities | |||||
Accrued interest payable | 33,340 | 31,327 | |||
Current portion of derivative liability (restated) | 142,755 | 80,366 | |||
Service warranty accrual | 5,711 | 8,680 | |||
Current portion of warrant derivative liabilities (restated) | 8,063 | 0 | |||
Accrued taxes | 8,700 | 5,462 | |||
Accrued payroll taxes and withholdings | 14,391 | 5,361 | |||
Loss contingencies | 26,200 | 1,831 | |||
Other | 8,164 | 6,362 | |||
Total accrued expenses and other current liabilities (restated) | $ 247,324 | $ 212,966 | $ 177,050 | $ 156,802 | $ 139,389 |
Property Plant and Equipment -
Property Plant and Equipment - Components of Property and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 169,051 | $ 162,552 |
Accumulated depreciation and amortization | (116,672) | (101,464) |
Property, plant and equipment, net | 52,379 | 61,088 |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 39,735 | 46,496 |
Vehicles | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 3 years | |
Vehicles | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 5 years | |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 72,616 | 63,197 |
Computer equipment and software | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 3 years | |
Computer equipment and software | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 5 years | |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 29,126 | 28,593 |
Leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 2 years | |
Leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 15 years | |
Office furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 21,394 | 20,786 |
Office furniture, fixtures and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 2 years | |
Office furniture, fixtures and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 7 years | |
Construction in process | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 6,180 | $ 3,480 |
Property Plant and Equipment _2
Property Plant and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Finance lease, right-of-use asset, net | $ 17.6 | $ 24.3 | |
Depreciation and amortization expense | 20.2 | 25.7 | $ 25 |
Assets Held Under Finance Lease | |||
Property, Plant and Equipment [Line Items] | |||
Accumulated amortization | $ 23 | $ 22.8 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 10, 2018 | May 31, 2019 | Jan. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill addition | $ 453 | |||||
Proceeds from the sale of intangible assets | $ 0 | 0 | $ 53,693 | |||
Amortization expense related to intangible assets | $ 69,500 | 80,500 | $ 90,900 | |||
Definite-lived intangible assets, remaining amortization period | 1 year 10 months 24 days | |||||
Finite-lived patents, gross | $ 100 | |||||
Patents | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Acquisition of intangible assets | 3,100 | $ 1,200 | ||||
Spectrum Leases | Verizon | Spectrum licenses | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Proceeds from the sale of intangible assets | $ 55,000 | |||||
Extinguishment of debt, amount | $ 27,900 | |||||
Indefinite-lived intangible assets, written off related to sale of business unit | 31,300 | |||||
Indefinite-lived intangible assets, regulatory costs | 1,300 | |||||
Net gain (loss) on disposal | $ 50,400 | |||||
Crowd Storage, Inc. | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill addition | $ 400 | |||||
Technology-Based Intangible Assets | Crowd Storage, Inc. | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Acquisition of intangible assets | $ 1,800 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | ||
Goodwill beginning balance | $ 836,540 | $ 834,855 |
Effect of CrowdStorage acquisition | 453 | |
Effect of Foreign Currency Translation | 537 | 1,232 |
Goodwill ending balance | $ 837,077 | $ 836,540 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Intangible Asset Balances (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Definite-lived intangible assets, gross | $ 1,008,826 | $ 1,009,333 |
Accumulated amortization | (897,417) | (831,581) |
Definite-lived intangible assets, net | 111,409 | 177,752 |
Indefinite-lived intangible assets | 65 | 59 |
Total intangible assets, gross | 1,008,891 | 1,009,392 |
Total intangible assets, net | $ 111,474 | 177,811 |
Minimum | ||
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 | |
Domain names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | $ 65 | 59 |
Customer contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Definite-lived intangible assets, gross | 969,158 | 967,623 |
Accumulated amortization | (862,352) | (794,926) |
Definite-lived intangible assets, net | $ 106,806 | 172,697 |
Estimated useful lives of intangible asset | 10 years | |
2GIG 2.0 technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Definite-lived intangible assets, gross | $ 17,000 | 17,000 |
Accumulated amortization | (17,000) | (16,534) |
Definite-lived intangible assets, net | $ 0 | 466 |
Estimated useful lives of intangible asset | 8 years | |
Other technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Definite-lived intangible assets, gross | $ 4,725 | 4,725 |
Accumulated amortization | (4,309) | (2,858) |
Definite-lived intangible assets, net | $ 416 | 1,867 |
Other technology | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful lives of intangible asset | 2 years | |
Other technology | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful lives of intangible asset | 7 years | |
Space Monkey technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Definite-lived intangible assets, gross | $ 7,100 | 7,100 |
Accumulated amortization | (7,100) | (6,809) |
Definite-lived intangible assets, net | $ 0 | 291 |
Estimated useful lives of intangible asset | 6 years | |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Definite-lived intangible assets, gross | $ 10,843 | 12,885 |
Accumulated amortization | (6,656) | (10,454) |
Definite-lived intangible assets, net | $ 4,187 | $ 2,431 |
Estimated useful lives of intangible asset | 5 years |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Estimated Future Amortization Expense of Intangible Assets Excluding Patents Currently in Process (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2021 | $ 59,823 |
2022 | 49,728 |
2023 | 679 |
2024 | 542 |
2025 | 491 |
Thereafter | 0 |
Total estimated amortization expense | $ 111,263 |
Financial Instruments (Restat_3
Financial Instruments (Restated) - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | ||
Available-for-sale securities, gross unrealized gain (loss) | $ 2.3 | $ 0.3 |
Financial Instruments - Financi
Financial Instruments - Financial Instruments at Fair Value Based on Valuation Approach Applied to Each Class of Security (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | $ 283,750 | $ 4,545 |
Adjusted Cost | 313,799 | 4,549 |
Unrealized Losses | 0 | 0 |
Fair Value | 313,799 | 4,549 |
Cash and Cash Equivalents | 313,799 | 4,549 |
Money Market Funds | Level 1: | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Adjusted Cost | 30,049 | 4 |
Unrealized Losses | 0 | 0 |
Fair Value | 30,049 | 4 |
Cash and Cash Equivalents | $ 30,049 | $ 4 |
Financial Instruments (Restat_4
Financial Instruments (Restated) - Components of Long-Term Debt Including Associated Interest Rates and Related Fair Values (Detail) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Face Value | $ 2,825,600,000 | $ 3,281,713,000 |
Senior Notes | 2020 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Stated Interest Rate | 8.75% | 8.75% |
Senior Notes | 2022 Notes Private Placement Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Stated Interest Rate | 8.875% | 8.875% |
Senior Notes | 2022 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Stated Interest Rate | 7.875% | 7.875% |
Senior Notes | 2023 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Stated Interest Rate | 7.625% | 7.625% |
Senior Notes | 2024 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Stated Interest Rate | 8.50% | 8.50% |
Senior Notes | 2027 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Stated Interest Rate | 6.75% | |
Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Face Value | $ 2,844,875,000 | $ 3,049,174,000 |
Estimated Fair Value | 2,919,123,000 | 3,042,433,000 |
Fair Value, Inputs, Level 2 | Senior Notes | 2020 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Face Value | 0 | 454,299,000 |
Estimated Fair Value | 0 | 455,253,000 |
Fair Value, Inputs, Level 2 | Senior Notes | 2022 Notes Private Placement Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Face Value | 0 | 270,000,000 |
Estimated Fair Value | 0 | 267,975,000 |
Fair Value, Inputs, Level 2 | Senior Notes | 2022 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Face Value | 677,000,000 | 900,000,000 |
Estimated Fair Value | 677,203,000 | 909,000,000 |
Fair Value, Inputs, Level 2 | Senior Notes | 2023 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Face Value | 400,000,000 | 400,000,000 |
Estimated Fair Value | 415,200,000 | 378,040,000 |
Fair Value, Inputs, Level 2 | Senior Notes | 2024 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Face Value | 225,000,000 | 225,000,000 |
Estimated Fair Value | 238,545,000 | 232,290,000 |
Fair Value, Inputs, Level 2 | Senior Notes | 2027 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Face Value | 600,000,000 | 0 |
Estimated Fair Value | 645,300,000 | 0 |
Fair Value, Inputs, Level 2 | Term Loan | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Face Value | 942,875,000 | 799,875,000 |
Estimated Fair Value | $ 942,875,000 | $ 799,875,000 |
Financial Instruments (Restat_5
Financial Instruments (Restated) - Derivative Instruments (Details) - Fair Value, Inputs, Level 2 - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value, gross | $ 227,896 | $ 136,863 |
Derivative, notional amount | 912,626 | 534,560 |
Accrued expenses and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value, gross | 142,755 | 80,366 |
Other long-term obligations | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value, gross | $ 85,141 | $ 56,497 |
Financial Instruments (Restat_6
Financial Instruments (Restated) - Level 3 (Details) - Fair Value, Inputs, Level 3 - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Balance, beginning of period | $ 136,863 | $ 117,620 |
Additions | 167,055 | 94,592 |
Settlements | (71,962) | (70,213) |
Gains included in earnings | (4,060) | (5,136) |
Balance, end of period | $ 227,896 | $ 136,863 |
Financial Instruments (Restat_7
Financial Instruments (Restated) - Change in Fair Value of Derivative Warrant Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 11 Months Ended | 12 Months Ended | |||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Warrant Derivative Liabilities [Roll Forward] | ||||||||||
Warrant liability assumed from the Business Combination, Current | $ 0 | $ 0 | $ 0 | $ 0 | ||||||
Balance, end of period, current | $ 8,063 | $ 8,063 | 8,063 | $ 0 | ||||||
Warrant liability assumed from the Business Combination, non-current | 79,325 | $ 88,080 | $ 56,811 | 0 | 0 | 0 | 0 | |||
Balance, end of period, non-current | 75,531 | 79,325 | 88,080 | 56,811 | 88,080 | 79,325 | 75,531 | 75,531 | 0 | |
Change in fair value of warrant liabilities | 29,357 | $ 974 | $ 62,202 | $ 16,717 | $ 78,919 | $ 79,893 | 109,250 | 109,250 | $ 0 | $ 0 |
Derivative Liability, Decrease for Exercise of Warrants | (65,750) | |||||||||
Balance, end of period | 83,594 | 83,594 | 83,594 | |||||||
Public Warrants | ||||||||||
Warrant Derivative Liabilities [Roll Forward] | ||||||||||
Change in fair value of warrant liability | 64,038 | |||||||||
Reclassification of derivative liabilities for exercised warrants | (65,750) | |||||||||
Balance, end of period, current | 8,063 | 8,063 | 8,063 | |||||||
Private Placement Warrants | ||||||||||
Warrant Derivative Liabilities [Roll Forward] | ||||||||||
Change in fair value of warrant liability | 45,212 | |||||||||
Reclassification of derivative liabilities for exercised warrants | 0 | |||||||||
Balance, end of period, non-current | $ 75,531 | $ 75,531 | $ 75,531 |
Financial Instruments (Restat_8
Financial Instruments (Restated) - Quantitative Information Regarding Level 3 Measurements Inputs (Details) | Dec. 31, 2020$ / sharesshares |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants outstanding (shares) | 878,346 |
Private placement warrants | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants outstanding (shares) | 5,933,334 |
Warrant | Private placement warrants | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants outstanding (shares) | 5,933,334 |
Warrant | Private placement warrants | Measurement Input, Exercise Price | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants outstanding, measurement input | $ / shares | 11.5 |
Warrant | Private placement warrants | Measurement Input, Stock Price | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants outstanding, measurement input | $ / shares | 20.75 |
Warrant | Private placement warrants | Measurement Input, Expected Term | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Expiration term (in years) | 4 years 18 days |
Warrant | Private placement warrants | Measurement Input, Volatility | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants outstanding, measurement input | 0.60 |
Warrant | Private placement warrants | Measurement Input, Risk Free Interest Rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants outstanding, measurement input | 0.0027 |
Warrant | Private placement warrants | Measurement Input, Expected Dividend Yield | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants outstanding, measurement input | 0 |
Restructuring and Asset Impai_3
Restructuring and Asset Impairment Charges - Additional Information (Detail) - USD ($) $ in Thousands | Jul. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
2018 Cost Reductions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Loss on contract termination | $ 5,500 | |||
Severance and Termination Benefits Expenses | 2020 Cost Reductions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cash-based restructuring charges | $ 20,900 | |||
Severance and Termination Benefits Expenses | 2018 Cost Reductions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cash-based restructuring charges | $ 4,700 | |||
Stock-based Compensation Expense | 2020 Cost Reductions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cash-based restructuring charges | $ 11,100 | |||
Subscriber Contracts In New Zealand And Puerto Rico | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Amortization of subscriber acquisition costs | $ 4,800 |
Restructuring and Asset Impai_4
Restructuring and Asset Impairment Charges - Results of Operations of Wireless (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||||||||
Recurring and other revenue | $ 332,423 | $ 321,014 | $ 303,897 | $ 607,129 | $ 928,143 | $ 1,260,566 | $ 1,155,981 | $ 1,050,441 | |
Operating expenses | 94,615 | 92,309 | 82,259 | $ 83,160 | 165,419 | 257,728 | 352,343 | 369,285 | 355,813 |
Selling expenses | 106,774 | 79,680 | 65,110 | 50,723 | 115,833 | 195,513 | 302,287 | 193,359 | 213,386 |
General and administrative expenses | 87,220 | 68,723 | 59,969 | 50,423 | 110,392 | 179,115 | 266,335 | 192,182 | 209,257 |
Depreciation and amortization | 570,831 | 543,440 | 514,082 | ||||||
Total costs and expenses | 436,051 | 384,677 | 347,513 | 344,496 | 692,009 | 1,076,686 | 1,512,737 | 1,298,266 | 1,297,221 |
Loss from operations | (103,628) | (63,663) | (43,616) | (41,264) | (84,880) | (148,543) | (252,171) | (142,285) | (246,780) |
Interest expense | 221,175 | 260,014 | 245,214 | ||||||
Net loss | $ (184,589) | $ (108,729) | $ (156,784) | $ (145,096) | $ (301,880) | $ (410,609) | (595,198) | (395,924) | (472,635) |
Wireless | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Operating expenses | 5,455 | 8,295 | |||||||
Selling expenses | 137 | 674 | |||||||
General and administrative expenses | 5,291 | 15,547 | |||||||
Depreciation and amortization | 68 | 102 | |||||||
Total costs and expenses | 10,951 | 24,618 | |||||||
Loss from operations | (8,143) | (17,748) | |||||||
Interest expense | 0 | 2 | |||||||
Other income, net | (2,100) | (52,021) | |||||||
Net loss | (6,043) | 34,271 | |||||||
Recurring and other revenue | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Recurring and other revenue | $ 1,260,566 | 1,155,981 | 1,050,441 | ||||||
Recurring and other revenue | Wireless | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Recurring and other revenue | $ 2,808 | $ 6,870 |
Income Taxes (Restated) - Incom
Income Taxes (Restated) - Income Tax Provision (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current income tax: | ||||
Federal | $ 0 | $ 0 | $ 0 | |
State | 2,174 | 703 | 512 | |
Foreign | 764 | (2) | (52) | |
Total | 2,938 | 701 | 460 | |
Deferred income tax: | ||||
Federal | 0 | (380) | 0 | |
State | 903 | (73) | 0 | |
Foreign | (1,004) | 1,065 | (2,071) | |
Total | (101) | 612 | (2,071) | |
Income tax expense (benefit) | $ 2,513 | $ 2,837 | $ 1,313 | $ (1,611) |
Income Taxes (Restated) - Recon
Income Taxes (Restated) - Reconciliation of Tax Expense Computed at Statutory Federal Rate and Company's Tax Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Computed expected tax benefit | $ (124,580) | $ (82,833) | $ (98,598) | |
State income taxes, net of federal tax effect | 2,636 | 483 | 404 | |
Foreign income taxes | (383) | 232 | (690) | |
Other reconciling items | 6,790 | 2,988 | 0 | |
Permanent differences | 38,586 | 7,007 | 4,406 | |
Change in valuation allowance | 79,788 | 73,436 | 92,867 | |
Income tax expense (benefit) | $ 2,513 | $ 2,837 | $ 1,313 | $ (1,611) |
Income Taxes (Resated) - Signif
Income Taxes (Resated) - Significant Portions of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Gross deferred tax assets: | ||
Net operating loss carryforwards | $ 558,972 | $ 585,854 |
Deferred subscriber income | 254,722 | 151,051 |
Interest expense limitation | 119,402 | 111,682 |
Accrued expenses and allowances | 52,031 | 26,683 |
Lease liabilities | 15,342 | 18,773 |
Purchased intangibles and deferred financing costs | 13,765 | 11,232 |
Inventory reserves | 2,801 | 3,387 |
Research and development credits | 41 | 41 |
Property and equipment | 2 | 0 |
Valuation allowance | (664,191) | (566,498) |
Deferred tax assets, net of valuation allowance | 352,887 | 342,205 |
Gross deferred tax liabilities: | ||
Deferred capitalized contract costs | (338,141) | (325,616) |
Right of use assets | (13,119) | (16,355) |
Purchased intangibles and deferred financing costs | (2,092) | 0 |
Property and equipment | (1,703) | (2,465) |
Deferred tax liabilities, net | (355,055) | (344,436) |
Net deferred tax liabilities | $ (2,168) | $ (2,231) |
Income Taxes (Restated) - Summa
Income Taxes (Restated) - Summary of Net Operating Loss Carryforwards (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carry forwards | $ 4,290,585 | $ 4,390,891 |
Internal Revenue Service (IRS) | Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carry forwards | 2,294,340 | 2,408,078 |
Internal Revenue Service (IRS) | States | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carry forwards | 1,996,245 | 1,972,423 |
Canada Revenue Agency | Foreign Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carry forwards | $ 0 | $ 10,390 |
Income Taxes (Restated) - Addit
Income Taxes (Restated) - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Income Taxes And Tax Related [Line Items] | ||
Net operating loss carry forwards | $ 4,290,585 | $ 4,390,891 |
Valuation allowance | 664,191 | 566,498 |
Federal | ||
Income Taxes And Tax Related [Line Items] | ||
Research and development credits | 41 | 41 |
Foreign Tax Authority | Canada Revenue Agency | ||
Income Taxes And Tax Related [Line Items] | ||
Net operating loss carry forwards | $ 0 | $ 10,390 |
Stock-Based Compensation and _3
Stock-Based Compensation and Equity (Restated) - Restricted Stock and Earnout Share Activity (Details) | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Restricted Stock | |
Stock Awards: | |
Granted (shares) | shares | 890,746 |
Vested (shares) | shares | (532,272) |
Forfeited (shares) | shares | (152,078) |
Unvested at year end (in shares) | shares | 206,396 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Granted (in USD per share) | $ / shares | $ 7.52 |
Vested (in USD per share) | $ / shares | 7.89 |
Forfeited (in USD per share) | $ / shares | 6.67 |
Unvested at end of year (in USD per share) | $ / shares | $ 7.22 |
Earnout Shares | |
Stock Awards: | |
Granted (shares) | shares | 2,112,431 |
Vested (shares) | shares | (1,544,037) |
Forfeited (shares) | shares | (155,578) |
Unvested at year end (in shares) | shares | 412,816 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Granted (in USD per share) | $ / shares | $ 20.87 |
Vested (in USD per share) | $ / shares | 20.28 |
Forfeited (in USD per share) | $ / shares | 23.86 |
Unvested at end of year (in USD per share) | $ / shares | $ 21.98 |
Stock-Based Compensation and _4
Stock-Based Compensation and Equity (Restated) - Additional Information (Detail) $ / shares in Units, $ in Thousands | Jan. 17, 2020USD ($)shares$ / shares | Jan. 16, 2020vestingInstallment$ / shares | Nov. 30, 2020USD ($)$ / sharesshares | Jul. 31, 2020USD ($)$ / sharesshares | Mar. 31, 2020USD ($)shares | Jun. 30, 2018 | Dec. 31, 2020USD ($)shares$ / shares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)shares | Jan. 07, 2021$ / shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based compensation expense | $ | $ 198,213 | $ 4,241 | $ 2,505 | |||||||
Common stock, authorized (in shares) | 3,000,000,000 | 3,000,000,000 | ||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||||||||
Common stock, issued (in shares) | 202,216,341 | 94,937,597 | ||||||||
Common stock, outstanding (in shares) | 154,730,618 | 202,216,341 | 94,937,597 | |||||||
Preferred stock, authorized (in shares) | 300,000,000 | 300,000,000 | ||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||||||||
Preferred stock, issued (in shares) | 0 | 0 | ||||||||
Preferred stock, outstanding (in shares) | 0 | 0 | ||||||||
Warrants outstanding (shares) | 878,346 | |||||||||
Number of common shares called by each warrant (shares) | 1 | |||||||||
Warrant exercise price (dollars per share) | $ / shares | $ 11.50 | |||||||||
Warrants, period before warrants become exercisable | 30 days | |||||||||
Warrants, expiration period | 5 years | |||||||||
Call price, cash (in dollars per share) | $ / shares | $ 0.01 | |||||||||
Warrants, call feature notice period | 30 days | |||||||||
Warrants, call feature, threshold closing share price for cash redemption (in dollars per share) | $ / shares | $ 18 | |||||||||
Warrant, call feature, threshold trading days | 20 days | |||||||||
Warrant, call feature, trading day period | 30 days | |||||||||
Warrant, call feature, threshold closing share price for share redemption (in dollars per share) | $ / shares | $ 10 | |||||||||
Warrants exercised during the year (shares) | 10,504,533 | |||||||||
Proceeds from warrant exercises | $ | $ 120,802 | $ 0 | 0 | |||||||
Warrants exercised, proceeds not yet received | 117,121 | |||||||||
Increase to additional paid-in capital for warrant exercise | $ | $ 1,300 | |||||||||
Capital contributions from parent | $ | $ 0 | 4,700 | 4,700 | |||||||
Capital contributions returned to parent | $ | 4,800 | |||||||||
Subsequent Event | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Warrant, redemption price per warrant (in dollars per share) | $ / shares | $ 0.01 | |||||||||
Warrant redemption, exercise price (in dollars per share) | $ / shares | 11.50 | |||||||||
Warrants, unexercised, redemption price (in dollars per share) | $ / shares | $ 0.01 | |||||||||
Private placement warrants | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Warrants outstanding (shares) | 5,933,334 | |||||||||
Warrants, period before warrants become transferable, assignable or salable | 30 days | |||||||||
Common Class A | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Common stock, authorized (in shares) | 3,000,000,000 | |||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | |||||||||
Common stock, issued (in shares) | 202,756,582 | |||||||||
Common stock, outstanding (in shares) | 202,756,582 | |||||||||
Selling expenses | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based compensation expense | $ | $ 101,623 | 508 | 285 | |||||||
Operating expenses | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based compensation expense | $ | $ 20,157 | $ 320 | $ 129 | |||||||
Rollover LTIPs | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Cash proceeds for vesting of restricted stock as a multiple of cumulative invested capital | 2 | |||||||||
Number of vesting installments | 3 | |||||||||
LTIP, strike price (in dollars per share) | $ / shares | $ 7.22 | |||||||||
Shares issued (shares) | 997,671 | 415,040 | ||||||||
Share-based compensation expense | $ | $ 20,400 | $ 6,500 | ||||||||
Shares reserved for issuance (in shares) | 2,316,869 | |||||||||
Share price (in dollars per share) | $ / shares | $ 20.40 | $ 15.62 | ||||||||
Rollover LTIPs | Rollover LTIP Award Vesting Installment 1 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting period | 24 months | |||||||||
Rollover LTIPs | Rollover LTIP Award Vesting Installment 2 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting period | 36 months | |||||||||
Rollover LTIPs | Rollover LTIP Award Vesting Installment 3 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting period | 48 months | |||||||||
Rollover LTIPs | Selling expenses | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based compensation expense | $ | $ 17,900 | $ 5,700 | ||||||||
Rollover LTIPs | Operating expenses | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based compensation expense | $ | $ 2,500 | $ 800 | ||||||||
Tracking Units | Holdback Executives | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting period | 5 years | |||||||||
Cash proceeds for vesting of restricted stock as a multiple of cumulative invested capital | 2 | |||||||||
Unrecognized stock compensation expense | $ | $ 1,600 | |||||||||
Unrecognized stock compensation, recognition period | 2 years 4 months 24 days | |||||||||
Granted (shares) | 12,058,077 | |||||||||
Total grant date fair value | $ | $ 17,500 | |||||||||
Shares outstanding (in shares) | 1,682,522 | |||||||||
Tracking Units | Holdback Executives | Separation Agreement | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vested (shares) | 6,309,459 | |||||||||
Restructuring charges | $ | $ 8,500 | |||||||||
Tracking Units | Performance Condition Achieved | Holdback Executives | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vested (shares) | 3,505,255 | |||||||||
Tracking Units | Time-based Vesting | Holdback Executives | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vested (shares) | 560,841 | |||||||||
Incentive Units | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Redemption price per share (in USD) | $ / shares | $ 0 | |||||||||
Incentive Units | Ratable Vesting from the Applicable Reference Date | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share based compensation, award vesting rights, annual vesting percentage | 33.33% | |||||||||
Incentive Units | Subject to Achievement of Certain Return Thresholds by The Blackstone GroupInc. and Its Affiliates | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share based compensation, award vesting rights, annual vesting percentage | 33.33% | |||||||||
Incentive Units | Ratable Vesting from June 2018 for Grants Prior to the Modification or from the Applicable Reference Date for Grants after Modification | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share based compensation, award vesting rights, annual vesting percentage | 33.33% | |||||||||
Restricted Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Redemption price per share (in USD) | $ / shares | $ 0 | |||||||||
Cash proceeds for vesting of restricted stock as a multiple of cumulative invested capital | 2 | |||||||||
Number of vesting installments | vestingInstallment | 4 | |||||||||
Unrecognized stock compensation expense | $ | $ 100 | |||||||||
Unrecognized stock compensation, recognition period | 1 month 6 days | |||||||||
Granted (shares) | 890,746 | |||||||||
Vested (shares) | 532,272 | |||||||||
Shares outstanding (in shares) | 206,396 | |||||||||
Weighted average grant date fair value of the outstanding units (in dollars per share) | $ / shares | $ 7.22 | |||||||||
Restricted stock units, fair value at grant date (usd per share) | $ / shares | $ 7.52 | |||||||||
Rollover SARs | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Cash proceeds for vesting of restricted stock as a multiple of cumulative invested capital | 2 | 2 | ||||||||
Rollover Restricted Shares | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Cash proceeds for vesting of restricted stock as a multiple of cumulative invested capital | 2 | |||||||||
Earnout Shares | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Unrecognized stock compensation expense | $ | $ 500 | |||||||||
Unrecognized stock compensation, recognition period | 2 months 12 days | |||||||||
Granted (shares) | 2,112,431 | |||||||||
Vested (shares) | 1,544,037 | |||||||||
Shares outstanding (in shares) | 412,816 | |||||||||
Weighted average grant date fair value of the outstanding units (in dollars per share) | $ / shares | $ 21.98 | |||||||||
Restricted stock units, fair value at grant date (usd per share) | $ / shares | $ 20.87 | |||||||||
Restricted Stock Units (RSUs) | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Granted (shares) | 9,467,810 | |||||||||
Shares outstanding (in shares) | 8,640,418 | |||||||||
Restricted Stock Units (RSUs) | 2020 Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting period | 4 years | |||||||||
Number of vesting installments | 4 | |||||||||
Unrecognized stock compensation expense | $ | $ 150,100 | |||||||||
Unrecognized stock compensation, recognition period | 2 years | |||||||||
Share based compensation, award vesting rights, annual vesting percentage | 25.00% | |||||||||
Number of shares each equity instrument has the right to receive | 1 | |||||||||
Restricted Stock Units (RSUs) | 2020 Plan | Non-employee Board Member | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting period | 1 year | |||||||||
PSUs | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting period | 4 years | |||||||||
Unrecognized stock compensation expense | $ | $ 41,900 | |||||||||
Unrecognized stock compensation, recognition period | 1 year | |||||||||
Share based compensation, award vesting rights, annual vesting percentage | 25.00% | |||||||||
Granted (shares) | 5,343,990 | |||||||||
Shares outstanding (in shares) | 4,877,277 | |||||||||
Number of shares each equity instrument has the right to receive | 1 | |||||||||
313 Acquisition LLC | Incentive Units | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based compensation arrangement by share-based payment award, fair value assumptions, minimum expected volatility rate | 55.00% | |||||||||
Share-based compensation arrangement by share-based payment award, fair value assumptions, maximum expected volatility rate | 125.00% | |||||||||
Share-based compensation arrangement by share-based payment award, fair value assumptions, minimum risk free interest rate | 0.61% | |||||||||
Share-based compensation arrangement by share-based payment award, fair value assumptions, maximum risk free interest rate | 2.61% | |||||||||
313 Acquisition LLC | Incentive Units | Minimum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Expected exercise term | 3 years 11 months 15 days | |||||||||
313 Acquisition LLC | Incentive Units | Maximum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Expected exercise term | 6 years | |||||||||
Vivint | Rollover Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Conversion ratio | 0.0864152412 | |||||||||
Vivint | Rollover SARs | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Unrecognized stock compensation expense | $ | $ 200 | |||||||||
Unrecognized stock compensation, recognition period | 1 month 6 days | |||||||||
Granted (shares) | 930,865 | |||||||||
Vested (shares) | 873,233 | |||||||||
Shares outstanding (in shares) | 2,474,011 | 3,603,537 | 3,284,806 | |||||||
Share-based compensation arrangement by share-based payment award, fair value assumptions, minimum expected volatility rate | 55.00% | |||||||||
Share-based compensation arrangement by share-based payment award, fair value assumptions, maximum expected volatility rate | 125.00% | |||||||||
Expected exercise term | 6 years 3 months | |||||||||
Share-based compensation arrangement by share-based payment award, fair value assumptions, minimum risk free interest rate | 0.61% | |||||||||
Share-based compensation arrangement by share-based payment award, fair value assumptions, maximum risk free interest rate | 2.61% | |||||||||
Expected volatility rate | 60.00% | |||||||||
Expected dividends (percentage) | 0.00% | |||||||||
Risk-free interest rate | 1.70% | |||||||||
Weighted average grant date fair value of the outstanding units (in dollars per share) | $ / shares | $ 6.02 | |||||||||
Vivint | Rollover SARs | Minimum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Expected exercise term | 6 years | |||||||||
Vivint | Rollover SARs | Maximum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Expected exercise term | 6 years 6 months |
Stock-Based Compensation and _5
Stock-Based Compensation and Equity (Restated) - Summary of the SARs Activity (Detail) - Vivint - Rollover SARs - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding, Beginning Balance (shares) | 3,603,537 | 3,284,806 | |
Granted (shares) | 930,865 | ||
Forfeited (shares) | (1,055,978) | (482,593) | |
Exercised (shares) | (73,548) | (129,541) | |
Outstanding, Ending Balance (shares) | 2,474,011 | 3,603,537 | 3,284,806 |
Unvested Rollover SARs expected to vest (shares) | 873,233 | ||
Exercisable (shares) | 1,600,778 | ||
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) | $ 18.17 | $ 16.90 | |
Weighted average exercise price per share, granted (in dollars per share) | 22.57 | ||
Weighted average exercise price per share, forfeited (in dollars per share) | 18.03 | 17.94 | |
Weighted average exercise price per share, exercised (in dollars per share) | 12.35 | 10.30 | |
Weighted average exercise price per share, outstanding, ending balance (in dollars per share) | 17.59 | $ 18.17 | $ 16.90 |
Weighted average exercise price per share, unvested shares expected to vest (in dollars per share) | 19.04 | ||
Weighted average exercise price per share, Exercisable (in dollars per share) | $ 16.80 | ||
Outstanding, weighted average remaining contractual life | 6 years 7 months 6 days | 7 years 10 months 9 days | 8 years 25 days |
Unvested shares expected to vest, weighted average remaining contractual life | 7 years 1 month 20 days | ||
Exercisable at end of period, weighted average remaining contractual life | 6 years 3 months 18 days | ||
Outstanding, aggregate intrinsic value | $ 7.8 | $ 0.9 | $ 0 |
Unvested shares expected to vest, aggregate intrinsic value | 1.5 | ||
Exercisable, aggregate intrinsic value | $ 6.3 |
Stock-Based Compensation and _6
Stock-Based Compensation and Equity (Restated) - Summary of Incentive Unit Activity (Detail) | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Granted (shares) | shares | 9,467,810 |
Forfeited (shares) | shares | (827,392) |
Shares outstanding (in shares) | shares | 8,640,418 |
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, granted (in dollars per share) | $ / shares | $ 22.77 |
Weighted average exercise price per share, forfeited (in dollars per share) | $ / shares | 22.86 |
Weighted average exercise price per share, outstanding, ending balance (in dollars per share) | $ / shares | $ 22.76 |
PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Granted (shares) | shares | 5,343,990 |
Forfeited (shares) | shares | (466,713) |
Shares outstanding (in shares) | shares | 4,877,277 |
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, granted (in dollars per share) | $ / shares | $ 22.63 |
Weighted average exercise price per share, forfeited (in dollars per share) | $ / shares | 22.21 |
Weighted average exercise price per share, outstanding, ending balance (in dollars per share) | $ / shares | $ 22.67 |
Stock-Based Compensation and _7
Stock-Based Compensation and Equity (Restated) - Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation | $ 198,213 | $ 4,241 | $ 2,505 |
Operating expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation | 20,157 | 320 | 129 |
Selling expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation | 101,623 | 508 | 285 |
General and administrative expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation | $ 76,433 | $ 3,413 | $ 2,091 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | ||
Jan. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Loss Contingencies [Line Items] | |||
Loss contingency accrual | $ 26.2 | $ 1.8 | |
DOJ FIRREA Investigation | Subsequent Event | |||
Loss Contingencies [Line Items] | |||
Payment for legal settlement | $ 3.2 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Operating and finance leases, renewal term | 10 years | |
Operating and finance leases, options to terminate lease, term | 1 year | |
Operating lease cost | $ 16,784 | $ 16,323 |
Finance lease cost: | ||
Amortization of right-of-use assets | 5,090 | 5,533 |
Interest on lease liabilities | 453 | 730 |
Total finance lease cost | $ 5,543 | $ 6,263 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Operating and finance leases, remaining lease term | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Operating and finance leases, remaining lease term | 8 years |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ (17,635) | $ (16,713) | |
Operating cash flows from finance leases | (453) | (730) | |
Financing cash flows from finance leases | (7,657) | (9,781) | $ (12,354) |
Right-of-use assets obtained in exchange for lease obligations: | |||
Operating leases | 3,420 | 3,423 | |
Finance leases | $ 1,228 | $ 8,728 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Leases | ||
Operating lease right-of-use assets | $ 52,880 | $ 65,320 |
Current operating lease liabilities | 12,135 | 11,640 |
Operating lease liabilities | 49,692 | 63,477 |
Total lease payments | 61,827 | 75,117 |
Finance Leases | ||
Property, plant and equipment, gross | 40,571 | 47,175 |
Accumulated depreciation | (22,976) | (22,827) |
Property, plant and equipment, net | 17,595 | 24,348 |
Current portion of finance lease liabilities | 3,356 | 7,708 |
Finance lease liabilities, net of current portion | 2,460 | 5,474 |
Total lease payments | $ 5,816 | $ 13,182 |
Weighted Average Remaining Lease Term | ||
Operating leases, weighted average remaining lease term | 5 years | 6 years |
Finance leases, weighted average remaining lease term | 1 year 7 months 6 days | 1 year 8 months 12 days |
Weighted Average Discount Rate | ||
Operating leases, weighted average discount rate, percentage | 7.00% | 7.00% |
Finance leases, weighted average discount rate, percentage | 4.00% | 4.00% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Leases | ||
2021 | $ 16,341 | |
2022 | 14,338 | |
2023 | 13,855 | |
2024 | 13,492 | |
2025 | 8,079 | |
Thereafter | 8,747 | |
Total lease payments | 74,852 | |
Amounts representing interest | (13,025) | |
Total | 61,827 | $ 75,117 |
Finance Leases | ||
2021 | 3,466 | |
2022 | 2,400 | |
2023 | 152 | |
2024 | 20 | |
2025 | 0 | |
Thereafter | 0 | |
Total lease payments | 6,038 | |
Less imputed interest | (222) | |
Total | $ 5,816 | $ 13,182 |
Related Party Transactions (Det
Related Party Transactions (Detail) - USD ($) | Mar. 03, 2020 | Jul. 31, 2019 | Sep. 30, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Feb. 29, 2020 | Jan. 17, 2020 |
Related Party Transaction [Line Items] | |||||||||||
Additional expenses incurred for other related-party transactions | $ 600,000 | $ 2,500,000 | $ 2,700,000 | ||||||||
Accrued expenses and other current liabilities | 247,324,000 | 139,389,000 | $ 212,966,000 | $ 177,050,000 | $ 156,802,000 | ||||||
Monitoring fees | 8,100,000 | ||||||||||
Deferred financing cost, net | 28,827,000 | 28,161,000 | 34,423,000 | ||||||||
Face Value | 2,825,600,000 | 3,281,713,000 | |||||||||
Solar | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Related-party agreement, term | 1 year | ||||||||||
Related-party agreement, renewal term | 1 year | ||||||||||
Related-party agreement, renewal notification period | 90 days | ||||||||||
Blackstone Management Partners L.L.C. | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Monitoring fee (percent) | 1.00% | ||||||||||
2023 Notes | Senior Notes | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Deferred financing cost, net | 2,241,000 | 3,081,000 | 3,922,000 | ||||||||
2024 Notes | Senior Notes | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Deferred financing cost, net | 3,530,000 | 4,431,000 | 0 | ||||||||
2027 Notes | Senior Notes | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Deferred financing cost, net | 5,771,000 | 0 | |||||||||
Solar | Affiliated Entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Sublease and other administrative expenses | 3,300,000 | 9,200,000 | 17,300,000 | ||||||||
Due from related party | 2,200,000 | ||||||||||
Wireless | Affiliated Entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Due from related party | 0 | 0 | |||||||||
Transactions associated with spin-off services | 1,300,000 | ||||||||||
Due to related parties | 0 | 0 | |||||||||
Blackstone Management Partners L.L.C. | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Percentage of voting shares held, threshold | 5.00% | ||||||||||
Fair market value of voting share held, threshold | $ 25,000,000 | ||||||||||
Blackstone Management Partners L.L.C. | Affiliated Entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Prepaid expenses and other current assets | 8,100,000 | 5,600,000 | 4,100,000 | ||||||||
Blackstone Management Partners L.L.C. | Affiliated Entity | Minimum | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Annual monitoring base fee, minimum | 2,700,000 | ||||||||||
Blackstone Advisory Partners L.P. | Affiliated Entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Deferred financing cost, net | 1,000,000 | $ 1,500,000 | |||||||||
Fortress Investment Group | Affiliated Entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Deferred financing cost, net | $ 900,000 | ||||||||||
Fortress Investment Group | Term Loan | Affiliated Entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Face Value | 173,700,000 | ||||||||||
Fortress Investment Group | 2023 Notes | Senior Notes | Affiliated Entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Face Value | 72,500,000 | ||||||||||
Fortress Investment Group | 2024 Notes | Senior Notes | Affiliated Entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Face Value | 19,900,000 | ||||||||||
Fortress Investment Group | 2027 Notes | Senior Notes | Affiliated Entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Face Value | 11,700,000 | ||||||||||
Affiliated Entity | Blackstone Advisory Partners L.P. | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Outstanding borrowings | 166,100,000 | 103,600,000 | |||||||||
Affiliated Entity | Vivint Smart Home, Inc. | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Proceeds from contributed capital | $ 4,700,000 | $ 4,700,000 | |||||||||
Blackstone Management Partners LLC Support And Services Agreement | Blackstone Management Partners L.L.C. | Affiliated Entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Accrued expenses and other current liabilities | 1,300,000 | ||||||||||
Fee paid for support services by BMP to Company | 1,500,000 | ||||||||||
Expenses from transactions with related party | 0 | 0 | $ 0 | ||||||||
Due to related parties | 1,800,000 | ||||||||||
Vivint | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Accrued expenses and other current liabilities | $ 100,000 | $ 1,000,000 |
Segment Reporting and Busines_3
Segment Reporting and Business Concentrations (Restated) - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2020SegmentCountry | Dec. 31, 2019SegmentCountry | Dec. 31, 2018CountrySegment | |
Segment Reporting [Abstract] | |||
Number of operating segments | Segment | 1 | 1 | 1 |
Number of geographic region company has historically operated in | Country | 2 | 2 | 2 |
Segment Reporting and Busines_4
Segment Reporting and Business Concentrations (Restated) - Revenues and Long-Lived Assets by Geographic Region (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | ||||||||
Revenues | $ 332,423 | $ 321,014 | $ 303,897 | $ 607,129 | $ 928,143 | $ 1,260,566 | $ 1,155,981 | $ 1,050,441 |
United States | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 1,193,640 | 1,083,756 | 977,877 | |||||
Canada | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | $ 66,926 | $ 72,225 | $ 72,564 |
Employee Benefit Plan (Detail)
Employee Benefit Plan (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Postemployment Benefits [Abstract] | |||
Employer matching contribution, percent of employees' gross pay | 1.00% | ||
Employer matching contribution, amount for every employees' dollar contributed | $ 0.50 | ||
Employer matching contribution, percent of employees' gross pay for 50% matching for every dollar contributed | 5.00% | ||
Maximum annual contributions per employee, percent | 3.50% | ||
Award vesting service period | 2 years | ||
Matching contributions to the plan | $ 4,300,000 | $ 6,500,000 | $ 6,000,000 |
Basic and Diluted Net Loss Pe_3
Basic and Diluted Net Loss Per Share (Restated) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator: | |||||||||
Net loss attributable to common stockholders (in thousands) | $ (595,198) | $ (395,924) | $ (472,635) | ||||||
Denominator: | |||||||||
Shares used in computing net loss attributable per share to common stockholders, basic and diluted (in shares) | 179,071,278 | 94,805,201 | 94,527,648 | ||||||
Net loss per share attributable to common stockholders: | |||||||||
Basic and diluted (in dollars per share) | $ (0.93) | $ (0.58) | $ (0.88) | $ (0.96) | $ (1.83) | $ (2.38) | $ (3.32) | $ (4.18) | $ (5) |
Basic and Diluted Net Loss Pe_4
Basic and Diluted Net Loss Per Share (Restated) - Antidilutive Securities (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Rollover SARs | Rollover Awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive shares excluded from computation of basic and diluted earnings per share (in shares) | 2,474,011 | 3,603,537 | 3,284,806 |
Rollover LTIPs | Rollover Awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive shares excluded from computation of basic and diluted earnings per share (in shares) | 2,316,869 | 4,633,738 | 4,633,738 |
RSUs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive shares excluded from computation of basic and diluted earnings per share (in shares) | 8,640,418 | 0 | 0 |
RSUs | Rollover Awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive shares excluded from computation of basic and diluted earnings per share (in shares) | 51,929 | 51,929 | 31,360 |
PSUs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive shares excluded from computation of basic and diluted earnings per share (in shares) | 4,877,277 | 0 | 0 |
Public warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive shares excluded from computation of basic and diluted earnings per share (in shares) | 878,346 | 0 | 0 |
Private placement warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive shares excluded from computation of basic and diluted earnings per share (in shares) | 5,933,334 | 0 | 0 |
Earnout shares reserved for future issuance | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive shares excluded from computation of basic and diluted earnings per share (in shares) | 1,260,281 | 0 | 0 |
Uncategorized Items - ck0001713
Label | Element | Value |
Derivative Warrant Liabilities | ck0001713952_DerivativeWarrantLiabilities | $ 40,094,000 |
Private Placement Warrants [Member] | ||
Derivative Warrant Liabilities, Non-current | ck0001713952_DerivativeWarrantLiabilitiesNonCurrent | 30,319,000 |
Public Warrants [Member] | ||
Derivative Warrant Liabilities, Current | ck0001713952_DerivativeWarrantLiabilitiesCurrent | $ 9,775,000 |