Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 28, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
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 | $ 861.1 | ||
Entity Common Stock, Shares Outstanding | 208,734,698 | ||
Documents Incorporated by Reference | Portions of the Registrant's Proxy Statement relating to its 2022 Annual Meeting of Stockholders are incorporated by reference into Part III of this report. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001713952 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Salt Lake City, Utah |
Auditor Firm ID | 42 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 208,509 | $ 313,799 |
Accounts and notes receivable, net of allowance of $13,271 and $9,911 | 63,671 | 64,697 |
Inventories | 51,251 | 47,299 |
Prepaid expenses and other current assets | 19,385 | 14,338 |
Total current assets | 342,816 | 440,133 |
Property, plant and equipment, net | 55,448 | 52,379 |
Capitalized contract costs, net | 1,405,442 | 1,318,498 |
Deferred financing costs, net | 2,088 | 1,667 |
Intangible assets, net | 51,928 | 111,474 |
Goodwill | 837,153 | 837,077 |
Operating lease right-of-use assets | 46,000 | 52,880 |
Long-term notes receivables and other non-current assets, net | 44,753 | 58,317 |
Total assets | 2,785,628 | 2,872,425 |
Current Liabilities: | ||
Accounts payable | 96,317 | 85,656 |
Accrued payroll and commissions | 83,347 | 87,943 |
Accrued expenses and other current liabilities | 236,250 | 247,324 |
Deferred revenue | 429,900 | 327,632 |
Current portion of notes payable, net | 13,500 | 9,500 |
Current portion of operating lease liabilities | 12,033 | 12,135 |
Current portion of finance lease liabilities | 2,854 | 3,356 |
Total current liabilities | 874,201 | 773,546 |
Notes payable, net | 2,347,765 | 2,372,235 |
Notes payable, net - related party | 351,080 | 443,865 |
Finance lease liabilities, net of current portion | 1,416 | 2,460 |
Deferred revenue, net of current portion | 778,214 | 621,182 |
Operating lease liabilities, net of current portion | 41,713 | 49,692 |
Other long-term obligations | 106,135 | 121,235 |
Warrant derivative liabilities | 24,564 | 75,531 |
Deferred income tax liabilities | 640 | 2,168 |
Total liabilities | 4,525,728 | 4,461,914 |
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, 2021 and 2020, respectively | 0 | 0 |
Class A Common stock, $0.0001 par value, 3,000,000,000 shares authorized; 208,734,193 and 202,216,341 shares issued and outstanding as of December 31, 2021 and 2020, respectively | 21 | 20 |
Additional paid-in capital | 1,703,815 | 1,548,786 |
Accumulated deficit | (3,417,038) | (3,111,486) |
Accumulated other comprehensive loss | (26,898) | (26,809) |
Total stockholders’ deficit | (1,740,100) | (1,589,489) |
Total liabilities and stockholders’ deficit | $ 2,785,628 | $ 2,872,425 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for credit loss | $ 13,271 | $ 9,911 |
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) | 208,734,193 | 202,216,341 |
Common stock, outstanding (in shares) | 208,734,193 | 202,216,341 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | |||
Revenues | $ 1,479,388 | $ 1,252,267 | $ 1,151,100 |
Costs and expenses: | |||
Operating expenses (exclusive of depreciation and amortization shown separately below) | 384,365 | 352,343 | 369,285 |
Selling expenses (exclusive of amortization of deferred commissions of $212,967, $197,697 and $181,265, respectively, which are included in depreciation and amortization shown separately below) | 379,497 | 302,287 | 191,800 |
General and administrative expenses | 268,312 | 267,923 | 193,480 |
Depreciation and amortization | 601,452 | 570,831 | 543,592 |
Restructuring and asset impairment charges | 0 | 20,941 | 0 |
Total costs and expenses | 1,633,626 | 1,514,325 | 1,298,157 |
Loss from operations | (154,238) | (262,058) | (147,057) |
Other expenses (income): | |||
Interest expense | 184,993 | 221,175 | 260,014 |
Interest income | (532) | (708) | (23) |
Fair Value Adjustment of Warrants | (50,107) | 109,250 | 0 |
Other loss (income), net | 14,489 | 10,473 | (7,665) |
Loss before income taxes | (303,081) | (602,248) | (399,383) |
Income tax expense | 2,471 | 1,083 | 1,313 |
Net loss | $ (305,552) | $ (603,331) | $ (400,696) |
Net loss per share attributable to common stockholders: | |||
Basic (in dollars per share) | $ (1.47) | $ (3.37) | $ (4.23) |
Diluted (in dollars per share) | $ (1.71) | $ (3.37) | $ (4.23) |
Weighted-average shares used in computing net loss per share attributable to common stockholders: | |||
Basic (in shares) | 208,265,631 | 179,071,278 | 94,805,201 |
Diluted (in shares) | 209,078,167 | 179,071,278 | 94,805,201 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Amortization of deferred commissions | $ 212,967 | $ 197,697 | $ 181,265 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (305,552) | $ (603,331) | $ (400,696) |
Other comprehensive (loss) income, net of tax effects: | |||
Foreign currency translation adjustment | (89) | 657 | 1,371 |
Total other comprehensive (loss) income | (89) | 657 | 1,371 |
Comprehensive loss | $ (305,641) | $ (602,674) | $ (399,325) |
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 |
Stockholders' equity, beginning balance (in shares) at Dec. 31, 2018 | 94,696,362 | ||||||
Beginning Balance at Dec. 31, 2018 | $ (1,400,402) | $ 83 | $ 9 | $ 735,968 | $ (2,107,542) | $ 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 | (400,696) | (400,696) | |||||
Foreign currency translation adjustment | 1,371 | 1,371 | |||||
Stock-based compensation | 4,241 | 4,241 | |||||
Return of capital | (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 | (1,795,491) | $ 9 | 740,121 | (2,508,155) | (27,466) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Recapitalization transaction (in shares) | 59,793,021 | ||||||
Recapitalization transaction | 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 | 186,551 | 186,551 | |||||
Issuance of common stock upon exercise or vesting of equity awards (in shares) | 1,437,673 | ||||||
Net Loss | (603,331) | (603,331) | |||||
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 | (1,589,489) | $ 20 | 1,548,786 | (3,111,486) | (26,809) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of earnout shares (in shares) | 1,239,818 | ||||||
Issuance of earnout shares | 0 | ||||||
Tax withholdings related to net share settlement of equity awards (in shares) | (1,691,254) | ||||||
Tax withholdings related to net share settlement of equity awards | (29,398) | (29,398) | |||||
Forfeited shares (in shares) | (17,198) | ||||||
Warrants exercised (in shares) | 825,016 | ||||||
Warrants exercised | 19,743 | 19,743 | |||||
Issuance of common stock upon exercise or vesting of equity awards (in shares) | 6,161,470 | ||||||
Issuance of common stock upon exercise or vesting of equity awards | 1 | $ 1 | |||||
Net Loss | (305,552) | (305,552) | |||||
Foreign currency translation adjustment | (89) | (89) | |||||
Stock-based compensation | 164,684 | 164,684 | |||||
Stockholders' equity, ending balance (in shares) at Dec. 31, 2021 | 208,734,193 | ||||||
Ending Balance at Dec. 31, 2021 | $ (1,740,100) | $ 21 | $ 1,703,815 | $ (3,417,038) | $ (26,898) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2016-02 [Member] |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net loss from operations | $ (305,552) | $ (603,331) | $ (400,696) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities of operations: | |||
Amortization of capitalized contract costs | 524,981 | 481,213 | 437,437 |
Amortization of customer relationships | 58,134 | 65,908 | 74,538 |
Gain on fair value changes of equity securities | (659) | 0 | (2,254) |
Expensed offering costs | 0 | 0 | 168 |
Depreciation and amortization of property, plant and equipment and other intangible assets | 18,337 | 23,710 | 31,617 |
Amortization of deferred financing costs and bond premiums and discounts | 4,629 | 3,956 | 4,703 |
Loss (gain) on warrant derivative liability | (50,107) | 109,250 | 0 |
Warrant issuance costs | 0 | 723 | 0 |
Loss on sale or disposal of assets | 339 | 2,579 | 1,121 |
Loss on early extinguishment of debt | 30,210 | 12,710 | 806 |
Stock-based compensation | 164,684 | 198,213 | 4,241 |
Provision for doubtful accounts | 31,341 | 23,778 | 25,043 |
Deferred income taxes | (3,598) | (1,813) | 606 |
Restructuring and asset impairment charges | 0 | 11,106 | 0 |
Changes in operating assets and liabilities: | |||
Accounts and notes receivable, net | (30,724) | (24,684) | (34,486) |
Inventories | (3,950) | 17,299 | (13,951) |
Prepaid expenses and other current assets | (5,102) | (2,336) | (816) |
Capitalized contract costs, net | (611,547) | (584,151) | (535,063) |
Long-term notes receivables and other non-current assets, net | 16,335 | 28,964 | 22,273 |
Right-of-use assets | 6,881 | 12,440 | 7,255 |
Accounts payable | 9,627 | 3,256 | 5,611 |
Accrued payroll and commissions, accrued expenses, and other current and long-term liabilities | (22,837) | 156,784 | 24,899 |
Current and long-term operating lease liabilities | (8,081) | (13,291) | (8,149) |
Deferred revenue | 259,113 | 304,381 | 133,505 |
Net cash provided by (used in) operating activities | 82,454 | 226,664 | (221,592) |
Cash flows from investing activities: | |||
Capital expenditures | (17,275) | (25,245) | (10,119) |
Proceeds from the sale of capital assets | 141 | 18,063 | 878 |
Acquisition of intangible assets | (347) | (4,481) | (1,801) |
Proceeds from sales of equity securities | 0 | 0 | 5,430 |
Net cash used in investing activities | (17,481) | (11,663) | (5,612) |
Cash flows from financing activities: | |||
Proceeds from notes payable | 1,758,000 | 1,241,000 | 225,000 |
Proceeds from notes payable - related party | 392,000 | 309,000 | 0 |
Repayments of notes payable | (1,896,950) | (1,579,499) | (233,100) |
Repayments of notes payable - related party | (351,300) | (174,800) | 0 |
Borrowings from revolving line of credit | 0 | 359,200 | 342,500 |
Repayment of revolving line of credit | 0 | (604,200) | (97,500) |
Taxes paid related to net share settlements of stock-based compensation awards | (29,398) | (9,171) | 0 |
Repayments of finance lease obligations | (3,158) | (7,657) | (9,781) |
Proceeds from Mosaic recapitalization | 0 | 463,522 | 0 |
Proceeds from warrant exercises | 10,819 | 120,802 | 0 |
Financing costs | (26,351) | (11,191) | 0 |
Deferred financing costs | (23,878) | (12,894) | (4,896) |
Payment of offering costs | 0 | 0 | (2,574) |
Return of capital | 0 | 0 | (5,435) |
Proceeds from capital contributions | 0 | 0 | 4,700 |
Net cash (used in) provided by financing activities | (170,216) | 94,112 | 218,914 |
Effect of exchange rate changes on cash and cash equivalents | (47) | 137 | 66 |
Net (decrease) increase in cash and cash equivalents | (105,290) | 309,250 | (8,224) |
Cash and cash equivalents: | |||
Beginning of period | 313,799 | 4,549 | 12,773 |
End of period | 208,509 | 313,799 | 4,549 |
Supplemental cash flow disclosures: | |||
Income tax paid | 7,050 | 537 | 661 |
Interest paid | 173,160 | 215,223 | 252,911 |
Supplemental non-cash investing and financing activities: | |||
Finance lease additions | 1,823 | 855 | 10,197 |
Intangible asset acquisitions included within accounts payable, accrued expenses and other current liabilities and other long-term obligations | 157 | 167 | 1,536 |
Capital expenditures included within accounts payable, accrued expenses and other current liabilities | 3,426 | 2,458 | 2,074 |
Deferred offering costs included within accounts payable | $ 0 | $ 0 | $ 4,206 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2021 | |
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. |
Revisions of Previously-Issued
Revisions of Previously-Issued Financial Statements | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Revisions of Previously-Issued Financial Statements | Revisions of Previously-Issued Financial Statements During the financial close for the quarter ended September 30, 2021, the Company determined that certain revenue transactions associated with monthly service charge adjustments and contract modifications were not being recognized over the proper period. Consequently, during 2021 and in previous annual and quarterly periods, certain immaterial errors existed in previously reported amounts of revenue. The Company assessed the materiality of the misstatements both quantitatively and qualitatively and determined the correction of these errors to be immaterial to all prior consolidated financial statements taken as a whole and, therefore, amending previously filed reports to correct the errors was not required. However, the Company concluded that the cumulative effect of correcting the errors in the quarter ended September 30, 2021 would materially misstate the Company’s consolidated financial statements for the three and nine months ended September 30, 2021. Accordingly, the Company has reflected the corrections in the results for prior periods included in this Annual Report on Form 10-K. In addition, the amounts labeled “Adjustment” include certain other previously identified adjustments that were not previously deemed material to the periods presented. The Company will also revise such information in future filings to reflect the correction of the errors. The following tables present the revised results for each previously reported period, the adjustments made to each period and the previously reported amounts to summarize the effect of the corrections on the previously reported Balance Sheets and Statements of Operations for the periods presented (in thousands, except per-share amounts). These errors did not impact total cash flows from operating, investing or financing activities as presented in the Statement of Cash Flows for any period. Consolidated Balance Sheets As of December 31, 2020 As Previously Reported Adjustment As Revised Long-term notes receivables and other assets, net 62,510 (4,193) 58,317 Total assets 2,876,618 (4,193) 2,872,425 Deferred revenue 321,143 6,489 327,632 Total current liabilities 767,057 6,489 773,546 Deferred revenue, net of current portion 615,598 5,584 621,182 Total liabilities 4,449,841 12,073 4,461,914 Accumulated deficit (3,095,220) (16,266) (3,111,486) Total stockholders’ deficit (1,573,223) (16,266) (1,589,489) Total liabilities and stockholders’ deficit 2,876,618 (4,193) 2,872,425 Consolidated Statements of Operations Year Ended December 31, 2020 As Previously Reported Adjustment As Revised Recurring and other revenue $ 1,260,566 $ (8,299) $ 1,252,267 General and administrative expenses 266,335 1,588 267,923 Total costs and expenses 1,512,737 1,588 1,514,325 Loss from operations (252,171) (9,887) (262,058) Loss before income taxes (592,361) (9,887) (602,248) Income tax expense 2,837 (1,754) 1,083 Net loss (595,198) (8,133) (603,331) Comprehensive loss (594,541) (8,133) (602,674) Net loss attributable per share to common stockholders: Basic and diluted (3.32) (0.05) (3.37) Consolidated Statements of Operations Year Ended December 31, 2019 As Previously Reported Adjustment As Revised Recurring and other revenue $ 1,155,981 $ (4,881) $ 1,151,100 Selling expenses 193,359 (1,559) 191,800 General and administrative expenses 192,182 1,298 193,480 Depreciation and amortization 543,440 152 543,592 Total costs and expenses 1,298,266 (109) 1,298,157 Loss from operations (142,285) (4,772) (147,057) Loss before income taxes (394,611) (4,772) (399,383) Net loss (395,924) (4,772) (400,696) Comprehensive loss (394,553) (4,772) (399,325) Net loss attributable per share to common stockholders: Basic and diluted (4.18) (0.05) (4.23) |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of Presentation The Company has prepared the accompanying consolidated financial statements pursuant to generally accepted accounting principles in the United States (“GAAP”). Preparing financial statements requires the Company to make estimates and assumptions that affect the amounts that are reported in the consolidated financial statements and accompanying disclosures. Although these estimates are based on the Company’s best knowledge of current events and actions that the Company may undertake in the future, actual results may be different from the Company’s estimates. The results of operations presented herein are not necessarily indicative of the Company’s results for any future period. 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 had the greatest voting interest in the combined entity; • Prior to the Business Combination, Legacy Vivint Smart Home’s directors represented the majority of the Vivint Smart Home board of directors; • Prior to the Business Combination, Legacy Vivint Smart Home’s senior management was the senior management of Vivint Smart Home; and • Prior to the Business Combination, Legacy Vivint Smart Home was 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 Annual 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” or “CFP”) (2) the Company generally 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 or by obtaining short-term financing (generally no more than six month installment terms) through the Company. 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. For RICs, gross deferred revenues are reduced by imputed interest and estimated write-offs. For Products financed through the CFP, gross deferred revenues are reduced by (i) any fees the third-party financing provider (“Financing Provider”) is contractually entitled to receive at the time of loan origination, and (ii) the present value of expected future payments due to the Financing Providers. Under the CFP, qualified customers are eligible for financing offerings (“Loans”) originated by Financing Providers of between $150 and $6,000. The terms of most Loans 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 the Loans are issued on either an installment or revolving basis with repayment terms ranging from with a 6- to 60-months. For certain Financing Provider Loans: • The Company pays a monthly fee based on either the average daily outstanding balance of the installment loans, or the number of outstanding Loans. • The Company incurs fees at the time of the Loan origination and receives proceeds that are net of these fees. • The Company also shares liability for credit losses, with the Company being responsible for between 2.6% and 100% of lost principal balances. • The Company is responsible for reimbursing certain Financing Providers for merchant transaction fees and other fees associated with the Loans. Because of the nature of these provisions, the Company records a derivative liability at its fair value when the 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 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 certain other Loans, the Company receives net proceeds (net of fees and expected losses) for which the Company has no further obligation to the Financing Provider. 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, 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. 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 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 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. Beginning in late 2020, the Company began operating as a third-party dealer for residential solar installers in several states throughout the U.S, whereby the Company earns a commission from the installer for selling their solar services. Because there are no further performance obligations once the installation is complete, revenue is recognized at that time. To date, revenues from the Smart Insurance business have been immaterial to our overall financial results. 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 Accounts receivable consists primarily of amounts due from subscribers for recurring monthly monitoring Services, amounts due from Financing Providers 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 $26.4 million and $19.8 million and December 31, 2021 and 2020, respectively net of the allowance for doubtful accounts of $13.3 million and $9.9 million at December 31, 2021 and 2020, respectively. 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 consolidated statements of operations. The changes in the Company’s allowance for doubtful accounts were as follows for the periods ended (in thousands): Year ended December 31, 2021 2020 2019 Beginning balance $ 9,911 $ 8,118 $ 5,594 Provision for doubtful accounts 31,341 23,778 25,043 Write-offs and adjustments (27,981) (21,985) (22,519) Balance at end of period $ 13,271 $ 9,911 $ 8,118 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. During the years ended December 31, 2021 and 2020, no impairment losses were recorded. 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. The Company’s depreciation and amortization included in the consolidated statements of operations consisted of the following (in thousands): Year ended December 31, 2021 2020 2019 Amortization of capitalized contract costs $ 524,981 $ 481,213 $ 437,437 Amortization of definite-lived intangibles 60,004 69,465 80,468 Depreciation and amortization of property, plant and equipment 16,467 20,153 25,687 Total depreciation and amortization $ 601,452 $ 570,831 $ 543,592 Cash and Cash Equivalents Cash and cash equivalents consist 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. 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 APX Group, Inc.’s (“APX”) 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, 2021 and 2020 were $2.1 million and $1.7 million, net of accumulated amortization of $11.5 million and $11.0 million, respectively. Deferred financing costs included in the accompanying consolidated balance sheets within notes payable, net at December 31, 2021 and 2020 were $34.3 million and $27.2 million, net of accumulated amortization of $77.4 million and $70.9 million, respectively. Amortization expense on deferred financing costs recognized and included in interest expense in the accompanying consolidated statements of operations totaled $6.9 million, $7.9 million and $9.8 million for the years ended December 31, 2021, 2020 and 2019, 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 $4.3 million and $4.1 million as of December 31, 2021 and 2020, respectively, and the noncurrent portion included in other long-term obligations was $23.2 million and $23.8 million at December 31, 2021 and 2020, respectively. Stock-Based Compensation The Company measures compensation expense for all stock-based awards based on the grant-date fair value of the award and recognizes that cost over the requisite service period of the awards. The Company accounts for forfeitures as they occur (See Note 14). Advertising Expense Advertising costs are expensed as incurred. Advertising costs were approximately $89.9 million, $70.9 million and $60.4 million for the years ended December 31, 2021, 2020 and 2019, 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, 2021, approximately 95% of the Company’s installed panels were the Company's proprietary SkyControl or Smart Hub panels and 5% 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, 2021, 2020, and 2019. 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 tests goodwill at the reporting unit level for impairment annually as of October 1 and on an interim basis when events occur or circumstances exist that indicate the carrying value may no longer be recoverable. The company compares the fair value of our reporting units with the carrying amount, including goodwill. The Company recognizes an impairment charge for the amount by which the reporting unit’s carrying amount exceeds its fair value. The Company’s reporting units are determined based on its current reporting structure, which as of December 31, 2021 consisted of one reporting unit. As of December 31, 2021, there were no changes in facts and circumstances since the most recent annual impairment analysis to indicate impairment existed. During the years ended December 31, 2021, 2020 and 2019, no impairments to goodwill were recorded. 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. revenue and expenses are translated at the weighted-average exchange rates for the period. Adjustments resulting from this translation process are classified as other comprehensive income or loss and shown as a separate component of equity. When intercompany foreign currency transactions between entities included in the consolidated financial statements are of a long term investment nature (i.e., those for which settlement is not planned or anticipated in the foreseeable future) foreign currency translation adjustments resulting from those transactions are included in stockholders’ (deficit) equity as accumulated other comprehensive loss or income. When intercompany transactions are deemed to be of a short-term nature, translation adjustments are required to be included in the consolidated statement of operations. The Company has determined that settlement of Vivint Canada, Inc. intercompany balances are anticipated and therefore such balances are deemed to be of a short-term nature. Translation activity included in the statement of operations in other (income) expenses, net related to intercompany balances was as follows: (in thousands) For the Years Ended December 31, 2021 December 31, 2020 December 31, 2019 Translation gain $ (423) $ (602) $ (3,400) Letters of Credit As of December 31, 2021 and 2020, the Company had $14.0 million and $15.3 million, respectively, of letters of credit issued in the ordinary course of business, all of which are undrawn. Derivative Warrant Liabilities 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. The Company accounts for its public warrants and private placement warrants as derivative warrant liabilities in accordance with ASC 815-40. Accordingly, the Company recognizes the warrant instruments as liabilities at fair value and adjusts the instruments to fair value at each reporting period. The liabilities are re-measured at each balance sheet date until exercised, and any change in fair value is recognized in the Company’s statement of operations. Accounting Pronouncements Issued But Not Yet Adopted In March 2020 and January 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update “ASU”) No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting and ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope |
Revenue and Capitalized Contrac
Revenue and Capitalized Contract Costs | 12 Months Ended |
Dec. 31, 2021 | |
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. As of December 31, 2021 and 2020, the Company had warranty service reserves of $6.0 million and $5.7 million, respectively, which are included in accrued expenses and other current liabilities on the consolidated balance sheets. During the years ended December 31, 2021 and 2020, the Company recognized revenues of $320.0 million and $235.9 million, respectively, that were included in the deferred revenue balance as of December 31, 2020 and 2019, respectively. Transaction Price Allocated to the Remaining Performance Obligations As of December 31, 2021, approximately $3.4 billion of revenue is expected to be recognized from remaining performance obligations for subscription contracts. The Company expects to recognize approximately 63% 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, 2021 | |
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): For the Years Ended December 31, 2021 December 31, 2020 RIC receivables, gross $ 90,204 $ 138,926 RIC allowance (12,384) (27,061) Imputed interest (7,469) (13,275) RIC receivables, net $ 70,351 $ 98,590 Classified on the consolidated balance sheets as: Accounts and notes receivable, net $ 37,270 $ 44,931 Long-term notes receivables and other assets, net 33,081 53,659 RIC receivables, net $ 70,351 $ 98,590 The changes in the Company’s RIC allowance were as follows (in thousands): For the Years Ended December 31, 2021 December 31, 2020 RIC allowance, beginning of period $ 27,061 $ 38,110 Write-offs (13,714) (21,841) Recoveries 3,446 6,340 Additions from RICs originated during the period 6,795 7,567 Change in expected credit losses (10,995) (2,914) Other adjustments (1) (209) (201) RIC allowance, end of period $ 12,384 $ 27,061 (1) Other adjustments primarily reflect changes in foreign currency exchange rates related to Canadian RICs. During years ended December 31, 2021, 2020 and 2019, the amount of RIC imputed interest income recognized in recurring and other revenue was $7.6 million, $10.6 million and $13.6 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 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt The Company’s debt at December 31, 2021 and 2020 consisted of the following (in thousands): December 31, 2021 Outstanding Unamortized Unamortized Deferred Financing Costs (1) Net Carrying Long-Term Debt: 6.750% Senior Secured Notes Due 2027 600,000 — (4,835) 595,165 5.750% Senior Notes Due 2029 800,000 — (11,154) 788,846 Senior Secured Term Loan - noncurrent 1,333,125 — (18,291) 1,314,834 Total Long-Term Debt 2,733,125 — (34,280) 2,698,845 Senior Secured Term Loan - current 13,500 — — 13,500 Total Debt 2,746,625 $ — $ (34,280) $ 2,712,345 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 2,835,375 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 (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, 2021 and 2020 was $2.1 million and $1.7 million, respectively. Notes Payable 2027 Notes As of December 31, 2021, APX had $600.0 million outstanding aggregate principal amount of 6.750% senior secured notes due 2027 (the “2027 notes”). 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 Facility (as defined below), in each case, subject to certain exceptions and permitted liens. Interest accrues at the rate of 6.75% per annum for the 2027 notes. 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. 2029 Notes As of December 31, 2021, APX had $800.0 million outstanding aggregate principal amount of 5.75% senior notes due 2029 (the “2029 notes” and, together with the 2027 notes the “Notes”). The 2029 notes will mature on July 15, 2029. Interest accrues at the rate of 5.75% per annum for the 2029 notes. Interest on the 2029 notes is payable semiannually in arrears on January 15 and July 15 each year. APX may redeem the Notes at the prices and on the terms specified in the applicable indenture. Senior Secured Credit Facilities In July 2021, APX amended and restated its existing senior secured term loan credit agreement and existing senior secured revolving credit facility with a new senior secured credit agreement (the “Credit Agreement”) that provides for (i) a term loan facility in an aggregate principal amount of $1,350 million (the “Term Loan Facility”, and the loans thereunder, the “Term Loans”) and (ii) a revolving credit facility with commitments in an aggregate principal amount of $370 million (the “Revolving Credit Facility”, and the loans thereunder, the “Revolving Loans”). As of December 31, 2021, APX had outstanding term loans under the Term Loan Facility in an aggregate principal amount of $1,346.6 million. 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 Loans will be due and payable in full on July 9, 2028. APX may prepay the Term Loans on the terms specified in the Credit Agreement. No amortization payments are required under the Revolving Credit Facility. In addition to paying interest on outstanding principal under the Revolving Credit Facility, APX is required to pay a quarterly commitment fee of 50 basis points (which will be subject to two interest rate step-downs of 12.5 basis points, based on APX meeting consolidated first lien net leverage ratio tests) 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. The revolving credit commitments outstanding under the Revolving Credit Facility will be due and payable in full on July 9, 2026. Borrowings under the amended and restated Term Loan Facility and Revolving Credit Facility bear interest, at APX’s option, at a rate per annum equal to either (a)(i) a base rate determined by reference to the highest of (1) the “Prime Rate” in the United States as published in The Wall Street Journal, (2) the federal funds effective rate plus 0.50% and (3) the LIBOR rate for a one month interest period plus 1.00%, plus (ii) 2.50% (or after the delivery of financial statements for the fiscal quarter ending December 31, 2021, between 2.50% and 2.00%, depending on the first lien net leverage ratio of the applicable fiscal quarter) or (b)(i) a LIBOR rate determined by reference to the applicable page for the LIBOR rate for the interest period relevant to such borrowing plus (ii) 3.50% (or after the delivery of financial statements for the fiscal quarter ending December 31, 2021, between 3.50% and 3.00%, depending on the first lien net leverage ratio of the applicable fiscal quarter), subject in each case to an agreed interest rate floor. There were no outstanding borrowings under the Revolving Credit Facility as of December 31, 2021 and December 31, 2020. As of December 31, 2021, the Company had $356.0 million of availability under the Revolving Credit Facility (after giving effect to $14.0 million of letters of credit outstanding and no borrowings). 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, 2021 2029 Notes issuance - July 2021 $ (5,656) $ 8,016 $ 17,187 $ 19,547 $ — $ 11,767 $ 11,767 Term Loan issuance - July 2021 — 1,499 9,165 10,664 8,148 11,302 19,450 Total $ (5,656) $ 9,515 $ 26,352 $ 30,211 $ 8,148 $ 23,069 $ 31,217 For the year ended December 31, 2020 2027 Notes issuance - February 2020 $ (2,749) $ 4,033 $ 6,146 $ 7,430 $ 205 $ 6,346 $ 6,551 Term Loan issuance - February 2020 — 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 issuance - May 2019 $ (588) $ 1,395 $ — $ 807 $ — $ 4,956 $ 4,956 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, 2021 and 2020 (in thousands): Unamortized Deferred Financing Costs Balance December 31, 2020 Additions Early Extinguishment Amortized Balance December 31, 2021 Revolving Credit Facility $ 1,667 $ 843 $ — $ (422) $ 2,088 2022 Notes 4,697 — (3,314) (1,383) — 2023 Notes 2,241 — (1,681) (560) — 2024 Notes 3,530 — (3,021) (509) — 2027 Notes 5,771 — — (936) 4,835 2029 Notes — 11,767 — (614) 11,153 Term Loan 10,921 11,302 (1,499) (2,434) 18,290 Total Deferred Financing Costs $ 28,827 $ 23,912 $ (9,515) $ (6,858) $ 36,366 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 Guarantees |
Business Combination
Business Combination | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combination | Business Combination 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 Blackstone 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, 2021: 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 (40,094) Less: non-cash net liabilities assumed from Mosaic (5) Less: deferred and accrued transaction costs (1,304) Net contributions from recapitalization $ 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 restricted stock units (“Rollover RSUs”), the rollover stock appreciation rights (“Rollover SARs”), the shares of rollover restricted stock (“Rollover Restricted Stock”) and any awards granted under the Company rollover long-term incentive program (“Rollover LTIP Plans”) (together, “Rollover Equity Awards”) 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 37,323,959 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 |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Components | Balance Sheet Components The following table presents material balance sheet component balances as of December 31, 2021 and December 31, 2020 (in thousands): December 31, 2021 2020 Prepaid expenses and other current assets Prepaid expenses $ 12,791 $ 11,286 Deposits 627 1,308 Other 5,967 1,744 Total prepaid expenses and other current assets $ 19,385 $ 14,338 Capitalized contract costs Capitalized contract costs $ 4,103,683 $ 3,491,629 Accumulated amortization (2,698,241) (2,173,131) Capitalized contract costs, net $ 1,405,442 $ 1,318,498 Long-term notes receivables and other assets RIC receivables, gross $ 52,934 $ 93,995 RIC allowance (12,384) (27,061) RIC imputed interest (7,469) (13,275) Deferred income tax assets 2,022 — Other 9,650 4,658 Total long-term notes receivables and other assets, net $ 44,753 $ 58,317 Accrued payroll and commissions Accrued commissions 47,879 46,353 Accrued payroll $ 35,468 $ 41,590 Total accrued payroll and commissions $ 83,347 $ 87,943 Accrued expenses and other current liabilities Accrued interest payable $ 40,333 $ 33,340 Current portion of derivative liability 140,394 142,755 Service warranty accrual 5,992 5,711 Current portion of warrant derivative liabilities — 8,063 Accrued taxes 10,758 8,700 Accrued payroll taxes and withholdings 14,392 14,391 Loss contingencies 8,150 26,200 Other 16,231 8,164 Total accrued expenses and other current liabilities $ 236,250 $ 247,324 |
Property Plant and Equipment
Property Plant and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property Plant and Equipment | Property Plant and Equipment Property, plant and equipment is recorded at historical cost less accumulated depreciation, which is calculated using the straight-line method over the estimated useful lives of the related assets, as follows (in thousands): December 31, Estimated 2021 2020 Vehicles $ 40,103 $ 39,735 3-5 years Computer equipment and software 83,479 72,616 3-5 years Leasehold improvements 30,087 29,126 2-15 years Office furniture, fixtures and equipment 22,327 21,394 2-7 years Construction in process 11,089 6,180 Property, plant and equipment, gross 187,085 169,051 Accumulated depreciation and amortization (131,637) (116,672) Property, plant and equipment, net $ 55,448 $ 52,379 Property plant and equipment includes approximately $16.5 million and $17.6 million of assets under finance lease obligations, net of accumulated amortization of $24.5 million and $23.0 million at December 31, 2021 and 2020, respectively. Depreciation and amortization expense on all property plant and equipment was $16.5 million, $20.2 million and $25.7 million for the years ended December 31, 2021, 2020 and 2019, 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, 2021 | |
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, 2021 was the result of foreign currency translation adjustments. The changes in the carrying amount of goodwill for the years ended December 31, 2021 and 2020, were as follows (in thousands): Balance as of January 1, 2020 $ 836,540 Effect of Foreign Currency Translation 537 Balance as of December 31, 2020 837,077 Effect of Foreign Currency Translation 76 Balance as of December 31, 2021 $ 837,153 Intangible assets, net The following table presents intangible asset balances as of December 31, 2021 and 2020 (in thousands): December 31, 2021 December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Estimated Definite-lived intangible assets: Customer contracts $ 969,376 $ (920,617) $ 48,759 $ 969,158 $ (862,352) $ 106,806 10 years 2GIG 2.0 technology 17,000 (17,000) — 17,000 (17,000) — 8 years Other technology 4,725 (4,725) — 4,725 (4,309) 416 2 - 7 years Space Monkey technology 7,100 (7,100) — 7,100 (7,100) — 6 years Patents 11,180 (8,076) 3,104 10,843 (6,656) 4,187 5 years Total definite-lived intangible assets: 1,009,381 (957,518) 51,863 1,008,826 (897,417) 111,409 Indefinite-lived intangible assets: Domain names 65 — 65 65 — 65 Total Indefinite-lived intangible assets 65 — 65 65 — 65 Total intangible assets, net $ 1,009,446 $ (957,518) $ 51,928 $ 1,008,891 $ (897,417) $ 111,474 During the years ended December 31, 2021 and 2020, the Company added $0.4 million and $3.1 million of intangible assets related to patents, respectively. Amortization expense related to intangible assets was approximately $60.0 million, $69.5 million and $80.5 million for the years ended December 31, 2021, 2020, and 2019, respectively. As of December 31, 2021, the remaining weighted-average amortization period for definite-lived intangible assets was 1.0 year. Estimated future amortization expense of intangible assets, excluding approximately $0.1 million in patents currently in process, is as follows as of December 31, 2021 (in thousands): 2022 $ 49,889 2023 795 2024 610 2025 514 2026 4 Thereafter — Total estimated amortization expense $ 51,812 |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments Cash and Cash Equivalents Cash equivalents are classified as level 1 assets, as they have readily available market prices in an active market. The Company's cash and cash equivalents totaled $208.5 million and $313.8 million as of December 31, 2021 and 2020, respectively. Corporate Securities During the three months ended September 30, 2021, the Company obtained corporate securities, which are classified as Level 2 assets. The fair value of these securities was $2.4 million as of December 31, 2021. The fair value of the Company’s Level 2 corporate securities are based on observable prices that are based on inputs not quoted in active markets, but corroborated by market data. 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, 2021 December 31, 2020 Stated Interest Face Value Estimated Fair Value Face Value Estimated Fair Value 2022 Notes — — 677,000 677,203 7.875 % 2023 Notes — — 400,000 415,200 7.625 % 2024 Notes — — 225,000 238,545 8.500 % 2027 Notes 600,000 633,660 600,000 645,300 6.750 % 2029 Notes 800,000 795,680 — — 5.750 % Term Loan 1,346,625 1,346,625 942,875 942,875 N/A Total $ 2,746,625 $ 2,775,965 $ 2,844,875 $ 2,919,123 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 Financing Providers based on either the average daily outstanding balance of the Loans or the number of outstanding Loans. For certain Loans, the Company incurs fees at the time of the loan origination and receives proceeds that are net of these fees. 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 future payment obligations with the 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 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 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 derivative instrument as of December 31, 2021 and 2020 (in thousands): December 31, 2021 2020 Consumer Financing Program Contractual Obligations: Fair value $ 216,795 $ 227,896 Notional amount 1,160,278 912,626 Classified on the consolidated balance sheets as: Accrued expenses and other current liabilities 140,394 142,755 Other long-term obligations 76,401 85,141 Total Consumer Financing Program Contractual Obligation $ 216,795 $ 227,896 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 derivative instrument for the years ended December 31, 2021 and 2020 (in thousands): December 31, 2021 2020 Balance, beginning of period $ 227,896 $ 136,863 Additions 94,995 167,055 Settlements (91,826) (71,962) Gains included in earnings (14,270) (4,060) Balance, end of period $ 216,795 $ 227,896 Warrant Liabilities 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 were measured based on the market price of such warrants and are considered a Level 1 fair value measurement. As of January 7, 2021, all public warrants were exercised or redeemed and none were outstanding as of December 31, 2021. 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 years ended December 31, 2021 and 2020 is summarized as follows (in thousands): Public Warrants Private Placement Warrants Total Derivative Warrant liability 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, December 31, 2020 8,063 75,531 83,594 Change in fair value of warrant liability 1,350 $ (50,967) (49,617) Write-off fair value of unexercised expired warrants (490) $ — (490) Reclassification of derivative liabilities for exercised warrants (8,923) $ — (8,923) Balance, December 31, 2021 — 24,564 24,564 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 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, 2021 As of December 31, 2020 Number of private placement warrants 5,933,334 5,933,334 Exercise price $ 11.50 $ 11.50 Stock price $ 9.78 $ 20.75 Expiration term (in years) 3.05 4.05 Volatility 70 % 60 % Risk-free Rate 0.98 % 0.27 % Dividend yield — % — % |
Restructuring and Asset Impairm
Restructuring and Asset Impairment Charges | 12 Months Ended |
Dec. 31, 2021 | |
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 year ended December 31, 2019: Years Ended December 31, 2019 Recurring and other revenue $ 2,808 Costs and expenses: Operating expenses $ 5,455 Selling expenses $ 137 General and administrative expenses $ 5,291 Depreciation and amortization $ 68 Total costs and expenses $ 10,951 Loss from operations $ (8,143) Other expenses (income): Interest expense — Other income, net (2,100) Net loss $ (6,043) |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company files a consolidated federal income tax return with its wholly owned U.S. subsidiaries. The income tax expense consisted of the following (in thousands): Year ended December 31, 2021 2020 2019 Current income tax: Federal $ — $ — $ — State 2,359 2,174 703 Foreign 3,641 764 (2) Total 6,000 2,938 701 Deferred income tax: Federal — — (380) State (263) (851) (73) Foreign (3,266) (1,004) 1,065 Total (3,529) (1,855) 612 Income tax expense $ 2,471 $ 1,083 $ 1,313 The following reconciles the tax benefit computed at the statutory federal rate and the Company’s tax expense (in thousands): Year ended December 31, 2021 2020 2019 Computed expected tax benefit $ (63,647) $ (126,472) $ (82,833) State income taxes, net of federal tax effect 1,556 882 483 Foreign income taxes 221 (383) 232 Other reconciling items (1,235) (714) 2,988 Permanent differences (8,753) 36,423 5,694 Excess deductible compensation limitation 10,463 9,667 1,313 Change in valuation allowance 63,866 81,680 73,436 Income tax expense $ 2,471 $ 1,083 $ 1,313 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, 2021 2020 Gross deferred tax assets: Net operating loss carryforwards $ 546,693 $ 558,972 Deferred subscriber income 326,759 254,722 Interest expense limitation 142,919 119,402 Accrued expenses and allowances 56,495 52,031 Lease liabilities 13,356 15,342 Purchased intangibles and deferred financing costs 9,687 13,765 Inventory reserves 1,859 2,801 Research and development credits 41 41 Deferred capitalized contract costs 1,800 — Property and equipment 1,888 2 Valuation allowance (740,397) (664,191) Total 361,100 352,887 Gross deferred tax liabilities: Deferred capitalized contract costs (346,887) (338,141) Right of use assets (11,430) (13,119) Purchased intangibles and deferred financing costs (959) (2,092) Property and equipment (443) (1,703) Total (359,719) -359719000 (355,055) Net deferred tax assets (liabilities) $ 1,381 $ (2,168) The Company had gross operating loss carryforwards as follows (in thousands): December 31, 2021 2020 Net operating loss carryforwards: Federal $ 2,229,000 $ 2,294,340 States 2,036,000 1,996,245 Total $ 4,265,000 $ 4,290,585 U.S. federal net operating loss carryforwards will begin to expire in 2029, if not used. State net operating loss carryforwards expire over different periods and some have already begun to expire. The Company had U.S. research and development credits of approximately $41,000 at December 31, 2021, and December 31, 2020, which begin to expire in 2030. There are no remaining Canadian net operating loss (“NOL”) carryforwards as of December 31, 2021. 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, 2021 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, 2021 and 2020, 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 against U.S. net deferred tax assets of approximately $740.4 million and $664.2 million at December 31, 2021 and 2020, 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, 2021, the Company has not recognized any uncertain tax positions. |
Stock-Based Compensation and Eq
Stock-Based Compensation and Equity | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation and Equity | Stock-Based Compensation and Equity The Vivint Smart Home, Inc. 2020 Omnibus Incentive Plan (the “Plan”) provides for the issuance of stock-based incentive awards to attract, motivate and retain qualified employees and non-employee directors, and to align their financial interests with those of company stockholders. In addition to the rollover awards converted as part of the Business Combination, the Company utilizes a combination of time-based and performance-based restricted stock units. Tracking Units The Company issued tracking units to certain executives to align their financial interests with those of company stockholders. The tracking units are recognized as expense over the employee's requisite service period. In 2021, 560,841 tracking units vested that were subject to time-based vesting. In June 2021, the fair value of the unvested tracking units was modified such that at December 31, 2021, 1,121,681 tracking units were unvested, and there was $1.2 million of unrecognized compensation expense of which is expected to be recognized over a weighted-average period of 1.4 years, and are subject to ratable time-based vesting over a five-year period from June 2018. Rollover SARs Stock Appreciation Rights (“SARs”) were previously issued to various levels of key employees and board members. As of December 31, 2021, there was no unrecognized compensation expense related to Rollover SARs. A summary of the Rollover SARs activity for the years ended December 31, 2021 and 2020 is presented below: Rollover SARs Weighted Average Weighted Average Aggregate 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 Forfeited (409,566) 18.50 Exercised (59,733) 9.32 Outstanding, December 31, 2021 2,004,712 17.65 5.62 — Unvested Rollover SARs expected to vest after December 31, 2021 — — — — Exercisable at December 31, 2021 2,004,712 $ 17.65 5.62 — Rollover LTIPs The Company 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 “Rollover LTIP Plans”). 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 the first quarter of 2021, the Company made the final distribution of shares of Class A common stock pursuant to the Rollover LTIP Plans resulting in the issuance of 1,609,627 shares of Class A common stock to holders of Rollover LTIP Awards. As a result of this distribution, the Company recorded compensation costs totaling $37.2 million, of which $32.7 million and $4.5 million was included in selling expenses and operating expenses, respectively. The fair value of the shares distributed pursuant to the Rollover LTIP Plans values were determined based on the stock price of the Company on the date shares were issued to holders of Rollover LTIP Awards, which was $23.08 per share for the January 2021 distribution. Earnouts During the year ended December 31, 2021, 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. Associated with the Rollover LTIP distribution in 2021, 847,141 shares of related earnouts were issued, resulting in $19.6 million expense. At December 31, 2021, there was a de minimis amount of unrecognized compensation expense related to earnouts granted, which is expected to be recognized over a weighted-average period of 1.5 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, 2021 is presented below: Shares Weighted Average Grant-Date Fair Value per Share Unvested at December 31, 2020 412,816 $ 21.98 Granted 847,141 23.08 Vested (1,235,897) 22.73 Unvested at December 31, 2020 24,060 21.98 Restricted Stock Units During the year ended December 31, 2021, the Company approved grants under 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. Compensation expense associated with the unvested restricted stock units is recognized on a straight-line basis over the vesting period. At December 31, 2021, there was approximately $114.8 million of unrecognized compensation expense related to restricted stock units, which is expected to be recognized over a weighted-average period of 2.8 years. The following summarizes information about RSU transactions for the year ended December 31, 2021: Units Weighted Average Grant-Date Fair Value per Unit Unvested at December 31, 2020 8,640,418 $ 22.76 Modified (1,842,146) 22.86 Granted 5,865,475 13.33 Vested (2,162,984) 22.62 Forfeited (930,096) 20.43 Unvested at December 31, 2021 9,570,667 16.12 Performance Stock Units During the year ended December 31, 2021, 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 the performance period and the passage of time. The PSUs 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, subject to continued employment on the applicable vesting date. During the year ended December 31, 2021, 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, 2021, there was approximately $61.7 million of unrecognized compensation expense related to PSUs, which is expected to be recognized over a weighted-average period of 1.8 years. The following summarizes information about PSU transactions for the year ended December 31, 2021: Units Weighted Average Grant-Date Fair Value per Unit Unvested at December 31, 2020 4,877,277 $ 22.67 Modified 1,842,146 22.86 Granted 5,993,063 15.72 Vested (2,348,957) 22.83 Forfeited (719,863) 19.12 Unvested at December 31, 2021 9,643,666 17.23 Stock-based compensation expense in connection with all stock-based awards for the years ended December 31, 2021, 2020 and 2019 is allocated as follows (in thousands): Year ended December 31, 2021 2020 2019 Operating expenses $ 16,567 $ 20,157 $ 320 Selling expenses 103,239 101,623 508 General and administrative expenses 46,622 76,433 3,413 Total stock-based compensation $ 166,428 $ 198,213 $ 4,241 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, 2021, there were 208,734,193 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, 2021, there are no preferred stock issued or outstanding. Warrants—As of December 31, 2021, no public warrants were outstanding. Each whole warrant entitled the holder to purchase one Class A common stock at an exercise price of $11.50 per share, subject to adjustment. Warrants could only be exercised for a whole number of shares. No fractional warrants were issued upon separation of the units and only whole warrants were traded. The warrants became exercisable 30 days after the completion of the Business Combination. As of December 31, 2021, 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 warrants will expire five years after the completion of the Business Combination or earlier upon redemption or liquidation. 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 could have been exercised by the holders thereof prior to 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. All Public Warrants that remained unexercised at 5:00 p.m., New York City time, on the Redemption Date were void and were no longer exercisable, and the holders of those Public Warrants were 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, 2021, 825,016 warrants were exercised for Class A common stock, for which the Company received $10.8 million of cash. 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. Capital Contribution |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
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. 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 U.S. 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”). In April 2021, the Company entered into a settlement with the FTC that resolved this investigation. As part of this settlement, which was approved by a federal court on May 3, 2021, the Company paid a total of $20 million to the U.S. and agreed to implement various additional compliance related measures. The Company is currently in the process of administering the terms of this settlement, which include multiple undertakings by the Company. The Company has been endeavoring to comply with these undertakings and the demands on management and costs incurred in connection with these undertakings may be substantial. The Company has been engaged in ongoing discussions with the staff of the FTC regarding the Company’s compliance with the terms of the settlement. In addition, in accordance with the settlement, the Company is required to undergo biennial assessments by an independent third-party assessor who will review the Company’s compliance programs and provide a report to the FTC staff on the Company’s ongoing compliance with the settlement. The Company expects to receive the results of the first biennial assessment during the first quarter of 2022. 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 U.S. 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 $8.2 million and $26.2 million as of December 31, 2021 and 2020, 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. The amount of such adjustment could significantly exceed the accruals the Company has recorded. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
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. The Company has finance leases for vehicles, office equipment and other warehouse equipment. The leases have remaining terms of 1 year to 7 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, 2021 2020 Operating lease cost $ 15,689 $ 16,784 Finance lease cost: Amortization of right-of-use assets $ 2,375 $ 5,090 Interest on lease liabilities 264 453 Total finance lease cost $ 2,639 $ 5,543 Supplemental cash flow information related to leases was as follows (in thousands): Year ended December 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (16,877) $ (17,635) Operating cash flows from finance leases (264) (453) Financing cash flows from finance leases (3,158) (7,657) Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 4,490 $ 3,420 Finance leases 1,808 1,228 Supplemental balance sheet information related to leases was as follows (in thousands, except lease term and discount rate): Year ended December 31, 2021 2020 Operating Leases Operating lease right-of-use assets $ 46,000 $ 52,880 Current operating lease liabilities $ 12,033 $ 12,135 Operating lease liabilities 41,713 49,692 Total operating lease liabilities $ 53,746 $ 61,827 Finance Leases Property, plant and equipment, gross $ 40,939 $ 40,571 Accumulated depreciation (24,465) (22,976) Property, plant and equipment, net $ 16,474 $ 17,595 Current finance lease liabilities $ 2,854 $ 3,356 Finance lease liabilities 1,416 2,460 Total finance lease liabilities $ 4,270 $ 5,816 Weighted Average Remaining Lease Term Operating leases 5 years 5 years Finance leases 2.7 years 1.6 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, 2022 $ 15,858 $ 3,025 2023 15,199 847 2024 14,392 514 2025 8,764 — 2026 5,008 — Thereafter 4,494 — Total lease payments 63,715 4,386 Less imputed interest (9,969) (116) Total $ 53,746 $ 4,270 |
Leases | Leases The Company has operating leases for corporate offices, warehouse facilities, research and development and other operating facilities and other operating assets. The Company has finance leases for vehicles, office equipment and other warehouse equipment. The leases have remaining terms of 1 year to 7 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, 2021 2020 Operating lease cost $ 15,689 $ 16,784 Finance lease cost: Amortization of right-of-use assets $ 2,375 $ 5,090 Interest on lease liabilities 264 453 Total finance lease cost $ 2,639 $ 5,543 Supplemental cash flow information related to leases was as follows (in thousands): Year ended December 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (16,877) $ (17,635) Operating cash flows from finance leases (264) (453) Financing cash flows from finance leases (3,158) (7,657) Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 4,490 $ 3,420 Finance leases 1,808 1,228 Supplemental balance sheet information related to leases was as follows (in thousands, except lease term and discount rate): Year ended December 31, 2021 2020 Operating Leases Operating lease right-of-use assets $ 46,000 $ 52,880 Current operating lease liabilities $ 12,033 $ 12,135 Operating lease liabilities 41,713 49,692 Total operating lease liabilities $ 53,746 $ 61,827 Finance Leases Property, plant and equipment, gross $ 40,939 $ 40,571 Accumulated depreciation (24,465) (22,976) Property, plant and equipment, net $ 16,474 $ 17,595 Current finance lease liabilities $ 2,854 $ 3,356 Finance lease liabilities 1,416 2,460 Total finance lease liabilities $ 4,270 $ 5,816 Weighted Average Remaining Lease Term Operating leases 5 years 5 years Finance leases 2.7 years 1.6 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, 2022 $ 15,858 $ 3,025 2023 15,199 847 2024 14,392 514 2025 8,764 — 2026 5,008 — Thereafter 4,494 — Total lease payments 63,715 4,386 Less imputed interest (9,969) (116) Total $ 53,746 $ 4,270 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
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 Acquisition. 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 Acquisition 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 and $9.2 million during the years ended December 31, 2020 and 2019, respectively. 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, 2021, 2020 and 2019, of approximately $0.9 million, $0.6 million, $2.5 million, respectively, for other related-party transactions including contributions to the charitable organization Vivint Gives Back, facility costs, 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 included on the Company's balance sheets associated with these related-party transactions at December 31, 2021 and 2020 were $0.1 million and $0.1 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. There were no transactions associated with these services for the year ended December 31, 2021 and $1.3 million for each of the years ended December 31, 2020 and 2019. There were no balances due to or from Wireless as of December 31, 2021 and 2020. 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 $5.7 million, $8.1 million and $5.6 million during the years ended December 31, 2021, 2020 and 2019, 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, 2021 and 2020 included liabilities of $0.7 million and $8.1 million, respectively 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, 2021, 2020 and 2019 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 paid in the fourth quarter of 2021. 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 Affiliates of Blackstone participated as initial purchasers, arrangers, or creditors of the 2027 notes and term loan facility amendment and restatement in February 2020 and again in the 2029 notes and term loan facility amendment and restatement in July 2021 and received approximately $1.3 million and $3.0 million, respectively, of fees associated with these transactions. As of December 31, 2021, affiliates of Blackstone held $201.2 million and $18.5 million in the Term Loan Facility and 2029 Notes, respectively. As of December 31, 2020, affiliates of Blackstone held $166.1 million of outstanding aggregate principal of the Term Loan Facility. In February 2020 and July 2021, an affiliate of Fortress participated as a lender in the amended and restated term loan facility and received approximately $0.9 million and $0.8 million in lender fees, respectively. As of December 31, 2021, Fortress held $11.7 million and $119.7 million in the 2027 Notes and Term Loan Facility, respectively. 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 Facility, respectively. In July 2019, 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 | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting and Business Concentrations | Segment Reporting and Business Concentrations For the years ended December 31, 2021, 2020 and 2019, the Company conducted business through one operating segment, Vivint. The Company 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, 2021 $ 1,418,700 $ 60,688 $ 1,479,388 Year ended December 31, 2020 $ 1,186,218 $ 66,049 $ 1,252,267 Year ended December 31, 2019 $ 1,079,246 $ 71,854 $ 1,151,100 |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2021 | |
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 and reinstated, effective January 1, 2021. Additionally, at the end of 2020, the Company made a one-time contribution to the matching program. Under this reinstated program, the Company matches an employee’s contributions to the 401(k) savings plan dollar-for-dollar up to 3% of such employee’s eligible earnings and $0.50 for every $1.00 for the next 2% of such employee’s eligible earnings. The maximum match available under the 401(k) plan is 4% of the employee’s eligible earnings. All contributions under the reinstated program vest immediately. |
Basic and Diluted Net Loss Per
Basic and Diluted Net Loss Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Loss Per Share | Basic and Diluted Net Loss Per Share 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. The calculation of diluted loss per share requires that, to the extent the average market price of the underlying shares for the reporting period exceeds the exercise price of the warrants, and the presumed exercise of such securities are dilutive to net loss per share for the period, an adjustment to net loss available to common stockholders used in the calculation is required to remove the change in fair value of the warrants from the numerator for the period. Likewise, an adjustment to the denominator is required to reflect the related dilutive shares, if any, under the treasury stock method. 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, 2021, 2020 and 2019: Year ended December 31, 2021 2020 2019 Numerator: Net loss attributable to common stockholders $ (305,552) $ (603,331) $ (400,696) Gain on change in fair value of warrants, diluted (50,967) — — Net loss attributable to common stockholders, diluted (in thousands) (356,519) (603,331) (400,696) Denominator: Shares used in computing net loss attributable per share to common stockholders, basic and diluted 208,265,631 179,071,278 94,805,201 Weighted-average effect of potentially dilutive shares to purchase common stock 812,536 — — Shares used in computing net loss attributable per share to common stockholders, diluted 209,078,167 179,071,278 94,805,201 Net loss attributable per share to common stockholders: Basic $ (1.47) $ (3.37) $ (4.23) Diluted $ (1.71) $ (3.37) $ (4.23) 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, 2021 2020 2019 Rollover SARs 2,004,712 2,474,011 3,603,537 Rollover LTIPs — 2,316,869 4,633,738 RSUs 9,570,667 8,692,347 51,929 PSUs 9,643,666 4,877,277 — Public warrants — 878,346 — Private placement warrants — 5,933,334 — Earnout shares reserved for future issuance 24,060 1,260,281 — |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
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 had the greatest voting interest in the combined entity; • Prior to the Business Combination, Legacy Vivint Smart Home’s directors represented the majority of the Vivint Smart Home board of directors; • Prior to the Business Combination, Legacy Vivint Smart Home’s senior management was the senior management of Vivint Smart Home; and • Prior to the Business Combination, Legacy Vivint Smart Home was 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 Annual 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” or “CFP”) (2) the Company generally 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 or by obtaining short-term financing (generally no more than six month installment terms) through the Company. 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. For RICs, gross deferred revenues are reduced by imputed interest and estimated write-offs. For Products financed through the CFP, gross deferred revenues are reduced by (i) any fees the third-party financing provider (“Financing Provider”) is contractually entitled to receive at the time of loan origination, and (ii) the present value of expected future payments due to the Financing Providers. Under the CFP, qualified customers are eligible for financing offerings (“Loans”) originated by Financing Providers of between $150 and $6,000. The terms of most Loans 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 the Loans are issued on either an installment or revolving basis with repayment terms ranging from with a 6- to 60-months. For certain Financing Provider Loans: • The Company pays a monthly fee based on either the average daily outstanding balance of the installment loans, or the number of outstanding Loans. • The Company incurs fees at the time of the Loan origination and receives proceeds that are net of these fees. • The Company also shares liability for credit losses, with the Company being responsible for between 2.6% and 100% of lost principal balances. • The Company is responsible for reimbursing certain Financing Providers for merchant transaction fees and other fees associated with the Loans. Because of the nature of these provisions, the Company records a derivative liability at its fair value when the 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 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, 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. |
Revenue Recognition | 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 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. Beginning in late 2020, the Company began operating as a third-party dealer for residential solar installers in several states throughout the U.S, whereby the Company earns a commission from the installer for selling their solar services. Because there are no further performance obligations once the installation is complete, revenue is recognized at that time. To date, revenues from the Smart Insurance business have been immaterial to our overall financial results. 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 | Accounts Receivable Accounts receivable consists primarily of amounts due from subscribers for recurring monthly monitoring Services, amounts due from Financing Providers 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 $26.4 million and $19.8 million and December 31, 2021 and 2020, respectively net of the allowance for doubtful accounts of $13.3 million and $9.9 million at December 31, 2021 and 2020, respectively. 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 consolidated statements of operations. |
Restructuring and Asset Impairment Charges | Restructuring and Asset Impairment ChargesRestructuring 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 | Principles of ConsolidationThe 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. During the years ended December 31, 2021 and 2020, no impairment losses were recorded. 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 consist of highly liquid investments with remaining maturities when purchased of three months or less. |
Inventories | InventoriesInventories, 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. |
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 APX Group, Inc.’s (“APX”) 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, 2021 and 2020 were $2.1 million and $1.7 million, net of accumulated amortization of $11.5 million and $11.0 million, respectively. Deferred financing costs included in the accompanying consolidated balance sheets within notes payable, net at December 31, 2021 and 2020 were $34.3 million and $27.2 million, net of accumulated amortization of $77.4 million and $70.9 million, respectively. Amortization expense on deferred financing costs recognized and included in interest expense in the accompanying consolidated statements of operations totaled $6.9 million, $7.9 million and $9.8 million for the years ended December 31, 2021, 2020 and 2019, respectively. |
Residual Income Plans | 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 $4.3 million and $4.1 million as of December 31, 2021 and 2020, respectively, and the noncurrent portion included in other long-term obligations was $23.2 million and $23.8 million at December 31, 2021 and 2020, respectively. |
Stock-Based Compensation | Stock-Based Compensation The Company measures compensation expense for all stock-based awards based on the grant-date fair value of the award and recognizes that cost over the requisite service period of the awards. The Company accounts for forfeitures as they occur (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, 2021, approximately 95% of the Company’s installed panels were the Company's proprietary SkyControl or Smart Hub panels and 5% 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, 2021, 2020, and 2019. 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 | GoodwillThe Company tests goodwill at the reporting unit level for impairment annually as of October 1 and on an interim basis when events occur or circumstances exist that indicate the carrying value may no longer be recoverable. The company compares the fair value of our reporting units with the carrying amount, including goodwill. The Company recognizes an impairment charge for the amount by which the reporting unit’s carrying amount exceeds its fair value. The Company’s reporting units are determined based on its current reporting structure, which as of December 31, 2021 consisted of one reporting unit. As of December 31, 2021, there were no changes in facts and circumstances since the most recent annual impairment analysis to indicate impairment existed. |
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. revenue and expenses are translated at the weighted-average exchange rates for the period. Adjustments resulting from this translation process are classified as other comprehensive income or loss and shown as a separate component of equity. When intercompany foreign currency transactions between entities included in the consolidated financial statements are of a long term investment nature (i.e., those for which settlement is not planned or anticipated in the foreseeable future) foreign currency translation adjustments resulting from those transactions are included in stockholders’ (deficit) equity as accumulated other comprehensive loss or income. When intercompany transactions are deemed to be of a short-term nature, translation adjustments are required to be included in the consolidated statement of operations. The Company has determined that settlement of Vivint Canada, Inc. intercompany balances are anticipated and therefore such balances are deemed to be of a short-term nature. Translation activity included in the statement of operations in other (income) expenses, net related to intercompany balances was as follows: (in thousands) For the Years Ended December 31, 2021 December 31, 2020 December 31, 2019 Translation gain $ (423) $ (602) $ (3,400) |
Letters of Credit | Letters of Credit As of December 31, 2021 and 2020, the Company had $14.0 million and $15.3 million, respectively, of letters of credit issued in the ordinary course of business, all of which are undrawn. |
Derivative warrant liabilities | Derivative Warrant Liabilities 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. |
Accounting Pronouncements Issued But Not Yet Adopted | Accounting Pronouncements Issued But Not Yet Adopted In March 2020 and January 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update “ASU”) No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting and ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope |
Revisions of Previously-Issue_2
Revisions of Previously-Issued Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Impact of the Restatement | The following tables present the revised results for each previously reported period, the adjustments made to each period and the previously reported amounts to summarize the effect of the corrections on the previously reported Balance Sheets and Statements of Operations for the periods presented (in thousands, except per-share amounts). These errors did not impact total cash flows from operating, investing or financing activities as presented in the Statement of Cash Flows for any period. Consolidated Balance Sheets As of December 31, 2020 As Previously Reported Adjustment As Revised Long-term notes receivables and other assets, net 62,510 (4,193) 58,317 Total assets 2,876,618 (4,193) 2,872,425 Deferred revenue 321,143 6,489 327,632 Total current liabilities 767,057 6,489 773,546 Deferred revenue, net of current portion 615,598 5,584 621,182 Total liabilities 4,449,841 12,073 4,461,914 Accumulated deficit (3,095,220) (16,266) (3,111,486) Total stockholders’ deficit (1,573,223) (16,266) (1,589,489) Total liabilities and stockholders’ deficit 2,876,618 (4,193) 2,872,425 Consolidated Statements of Operations Year Ended December 31, 2020 As Previously Reported Adjustment As Revised Recurring and other revenue $ 1,260,566 $ (8,299) $ 1,252,267 General and administrative expenses 266,335 1,588 267,923 Total costs and expenses 1,512,737 1,588 1,514,325 Loss from operations (252,171) (9,887) (262,058) Loss before income taxes (592,361) (9,887) (602,248) Income tax expense 2,837 (1,754) 1,083 Net loss (595,198) (8,133) (603,331) Comprehensive loss (594,541) (8,133) (602,674) Net loss attributable per share to common stockholders: Basic and diluted (3.32) (0.05) (3.37) Consolidated Statements of Operations Year Ended December 31, 2019 As Previously Reported Adjustment As Revised Recurring and other revenue $ 1,155,981 $ (4,881) $ 1,151,100 Selling expenses 193,359 (1,559) 191,800 General and administrative expenses 192,182 1,298 193,480 Depreciation and amortization 543,440 152 543,592 Total costs and expenses 1,298,266 (109) 1,298,157 Loss from operations (142,285) (4,772) (147,057) Loss before income taxes (394,611) (4,772) (399,383) Net loss (395,924) (4,772) (400,696) Comprehensive loss (394,553) (4,772) (399,325) Net loss attributable per share to common stockholders: Basic and diluted (4.18) (0.05) (4.23) |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Changes in Company's Allowance for Accounts Receivable | The changes in the Company’s allowance for doubtful accounts were as follows for the periods ended (in thousands): Year ended December 31, 2021 2020 2019 Beginning balance $ 9,911 $ 8,118 $ 5,594 Provision for doubtful accounts 31,341 23,778 25,043 Write-offs and adjustments (27,981) (21,985) (22,519) Balance at end of period $ 13,271 $ 9,911 $ 8,118 |
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, 2021 2020 2019 Amortization of capitalized contract costs $ 524,981 $ 481,213 $ 437,437 Amortization of definite-lived intangibles 60,004 69,465 80,468 Depreciation and amortization of property, plant and equipment 16,467 20,153 25,687 Total depreciation and amortization $ 601,452 $ 570,831 $ 543,592 |
Schedule of Intercompany Foreign Currency Balances | Translation activity included in the statement of operations in other (income) expenses, net related to intercompany balances was as follows: (in thousands) For the Years Ended December 31, 2021 December 31, 2020 December 31, 2019 Translation gain $ (423) $ (602) $ (3,400) |
Retail Installment Contract R_2
Retail Installment Contract Receivables (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of Changes in Company's Allowance for Accounts Receivable | The changes in the Company’s allowance for doubtful accounts were as follows for the periods ended (in thousands): Year ended December 31, 2021 2020 2019 Beginning balance $ 9,911 $ 8,118 $ 5,594 Provision for doubtful accounts 31,341 23,778 25,043 Write-offs and adjustments (27,981) (21,985) (22,519) Balance at end of period $ 13,271 $ 9,911 $ 8,118 |
Retail Installment Contracts | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of Changes in Company's Allowance for Accounts Receivable | The following table summarizes the RIC receivables (in thousands): For the Years Ended December 31, 2021 December 31, 2020 RIC receivables, gross $ 90,204 $ 138,926 RIC allowance (12,384) (27,061) Imputed interest (7,469) (13,275) RIC receivables, net $ 70,351 $ 98,590 Classified on the consolidated balance sheets as: Accounts and notes receivable, net $ 37,270 $ 44,931 Long-term notes receivables and other assets, net 33,081 53,659 RIC receivables, net $ 70,351 $ 98,590 |
Schedule of 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, 2021 December 31, 2020 RIC allowance, beginning of period $ 27,061 $ 38,110 Write-offs (13,714) (21,841) Recoveries 3,446 6,340 Additions from RICs originated during the period 6,795 7,567 Change in expected credit losses (10,995) (2,914) Other adjustments (1) (209) (201) RIC allowance, end of period $ 12,384 $ 27,061 (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, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Debt | The Company’s debt at December 31, 2021 and 2020 consisted of the following (in thousands): December 31, 2021 Outstanding Unamortized Unamortized Deferred Financing Costs (1) Net Carrying Long-Term Debt: 6.750% Senior Secured Notes Due 2027 600,000 — (4,835) 595,165 5.750% Senior Notes Due 2029 800,000 — (11,154) 788,846 Senior Secured Term Loan - noncurrent 1,333,125 — (18,291) 1,314,834 Total Long-Term Debt 2,733,125 — (34,280) 2,698,845 Senior Secured Term Loan - current 13,500 — — 13,500 Total Debt 2,746,625 $ — $ (34,280) $ 2,712,345 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 2,835,375 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 (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, 2021 and 2020 was $2.1 million and $1.7 million, respectively. |
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, 2021 2029 Notes issuance - July 2021 $ (5,656) $ 8,016 $ 17,187 $ 19,547 $ — $ 11,767 $ 11,767 Term Loan issuance - July 2021 — 1,499 9,165 10,664 8,148 11,302 19,450 Total $ (5,656) $ 9,515 $ 26,352 $ 30,211 $ 8,148 $ 23,069 $ 31,217 For the year ended December 31, 2020 2027 Notes issuance - February 2020 $ (2,749) $ 4,033 $ 6,146 $ 7,430 $ 205 $ 6,346 $ 6,551 Term Loan issuance - February 2020 — 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 issuance - May 2019 $ (588) $ 1,395 $ — $ 807 $ — $ 4,956 $ 4,956 |
Schedule of Deferred Finance Activity | The following tables present deferred financing activity for the years ended December 31, 2021 and 2020 (in thousands): Unamortized Deferred Financing Costs Balance December 31, 2020 Additions Early Extinguishment Amortized Balance December 31, 2021 Revolving Credit Facility $ 1,667 $ 843 $ — $ (422) $ 2,088 2022 Notes 4,697 — (3,314) (1,383) — 2023 Notes 2,241 — (1,681) (560) — 2024 Notes 3,530 — (3,021) (509) — 2027 Notes 5,771 — — (936) 4,835 2029 Notes — 11,767 — (614) 11,153 Term Loan 10,921 11,302 (1,499) (2,434) 18,290 Total Deferred Financing Costs $ 28,827 $ 23,912 $ (9,515) $ (6,858) $ 36,366 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 |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [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, 2021: 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 (40,094) Less: non-cash net liabilities assumed from Mosaic (5) Less: deferred and accrued transaction costs (1,304) Net contributions from recapitalization $ 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 (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 and December 31, 2020 (in thousands): December 31, 2021 2020 Prepaid expenses and other current assets Prepaid expenses $ 12,791 $ 11,286 Deposits 627 1,308 Other 5,967 1,744 Total prepaid expenses and other current assets $ 19,385 $ 14,338 Capitalized contract costs Capitalized contract costs $ 4,103,683 $ 3,491,629 Accumulated amortization (2,698,241) (2,173,131) Capitalized contract costs, net $ 1,405,442 $ 1,318,498 Long-term notes receivables and other assets RIC receivables, gross $ 52,934 $ 93,995 RIC allowance (12,384) (27,061) RIC imputed interest (7,469) (13,275) Deferred income tax assets 2,022 — Other 9,650 4,658 Total long-term notes receivables and other assets, net $ 44,753 $ 58,317 Accrued payroll and commissions Accrued commissions 47,879 46,353 Accrued payroll $ 35,468 $ 41,590 Total accrued payroll and commissions $ 83,347 $ 87,943 Accrued expenses and other current liabilities Accrued interest payable $ 40,333 $ 33,340 Current portion of derivative liability 140,394 142,755 Service warranty accrual 5,992 5,711 Current portion of warrant derivative liabilities — 8,063 Accrued taxes 10,758 8,700 Accrued payroll taxes and withholdings 14,392 14,391 Loss contingencies 8,150 26,200 Other 16,231 8,164 Total accrued expenses and other current liabilities $ 236,250 $ 247,324 |
Property Plant and Equipment (T
Property Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Components of Property and Equipment | Property, plant and equipment is recorded at historical cost less accumulated depreciation, which is calculated using the straight-line method over the estimated useful lives of the related assets, as follows (in thousands): December 31, Estimated 2021 2020 Vehicles $ 40,103 $ 39,735 3-5 years Computer equipment and software 83,479 72,616 3-5 years Leasehold improvements 30,087 29,126 2-15 years Office furniture, fixtures and equipment 22,327 21,394 2-7 years Construction in process 11,089 6,180 Property, plant and equipment, gross 187,085 169,051 Accumulated depreciation and amortization (131,637) (116,672) Property, plant and equipment, net $ 55,448 $ 52,379 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill | The change in the carrying amount of goodwill during the year ended December 31, 2021 was the result of foreign currency translation adjustments. The changes in the carrying amount of goodwill for the years ended December 31, 2021 and 2020, were as follows (in thousands): Balance as of January 1, 2020 $ 836,540 Effect of Foreign Currency Translation 537 Balance as of December 31, 2020 837,077 Effect of Foreign Currency Translation 76 Balance as of December 31, 2021 $ 837,153 |
Schedule of Intangible Asset Balances | The following table presents intangible asset balances as of December 31, 2021 and 2020 (in thousands): December 31, 2021 December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Estimated Definite-lived intangible assets: Customer contracts $ 969,376 $ (920,617) $ 48,759 $ 969,158 $ (862,352) $ 106,806 10 years 2GIG 2.0 technology 17,000 (17,000) — 17,000 (17,000) — 8 years Other technology 4,725 (4,725) — 4,725 (4,309) 416 2 - 7 years Space Monkey technology 7,100 (7,100) — 7,100 (7,100) — 6 years Patents 11,180 (8,076) 3,104 10,843 (6,656) 4,187 5 years Total definite-lived intangible assets: 1,009,381 (957,518) 51,863 1,008,826 (897,417) 111,409 Indefinite-lived intangible assets: Domain names 65 — 65 65 — 65 Total Indefinite-lived intangible assets 65 — 65 65 — 65 Total intangible assets, net $ 1,009,446 $ (957,518) $ 51,928 $ 1,008,891 $ (897,417) $ 111,474 |
Schedule of Indefinite-Lived Intangible Assets | The following table presents intangible asset balances as of December 31, 2021 and 2020 (in thousands): December 31, 2021 December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Estimated Definite-lived intangible assets: Customer contracts $ 969,376 $ (920,617) $ 48,759 $ 969,158 $ (862,352) $ 106,806 10 years 2GIG 2.0 technology 17,000 (17,000) — 17,000 (17,000) — 8 years Other technology 4,725 (4,725) — 4,725 (4,309) 416 2 - 7 years Space Monkey technology 7,100 (7,100) — 7,100 (7,100) — 6 years Patents 11,180 (8,076) 3,104 10,843 (6,656) 4,187 5 years Total definite-lived intangible assets: 1,009,381 (957,518) 51,863 1,008,826 (897,417) 111,409 Indefinite-lived intangible assets: Domain names 65 — 65 65 — 65 Total Indefinite-lived intangible assets 65 — 65 65 — 65 Total intangible assets, net $ 1,009,446 $ (957,518) $ 51,928 $ 1,008,891 $ (897,417) $ 111,474 |
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, 2021 (in thousands): 2022 $ 49,889 2023 795 2024 610 2025 514 2026 4 Thereafter — Total estimated amortization expense $ 51,812 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
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, 2021 December 31, 2020 Stated Interest Face Value Estimated Fair Value Face Value Estimated Fair Value 2022 Notes — — 677,000 677,203 7.875 % 2023 Notes — — 400,000 415,200 7.625 % 2024 Notes — — 225,000 238,545 8.500 % 2027 Notes 600,000 633,660 600,000 645,300 6.750 % 2029 Notes 800,000 795,680 — — 5.750 % Term Loan 1,346,625 1,346,625 942,875 942,875 N/A Total $ 2,746,625 $ 2,775,965 $ 2,844,875 $ 2,919,123 |
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 derivative instrument as of December 31, 2021 and 2020 (in thousands): December 31, 2021 2020 Consumer Financing Program Contractual Obligations: Fair value $ 216,795 $ 227,896 Notional amount 1,160,278 912,626 Classified on the consolidated balance sheets as: Accrued expenses and other current liabilities 140,394 142,755 Other long-term obligations 76,401 85,141 Total Consumer Financing Program Contractual Obligation $ 216,795 $ 227,896 |
Schedule of 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 derivative instrument for the years ended December 31, 2021 and 2020 (in thousands): December 31, 2021 2020 Balance, beginning of period $ 227,896 $ 136,863 Additions 94,995 167,055 Settlements (91,826) (71,962) Gains included in earnings (14,270) (4,060) Balance, end of period $ 216,795 $ 227,896 |
Schedule of Fair Value of Derivative Warranty Liabilities | The change in the fair value of the derivative warrant liabilities for the years ended December 31, 2021 and 2020 is summarized as follows (in thousands): Public Warrants Private Placement Warrants Total Derivative Warrant liability 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, December 31, 2020 8,063 75,531 83,594 Change in fair value of warrant liability 1,350 $ (50,967) (49,617) Write-off fair value of unexercised expired warrants (490) $ — (490) Reclassification of derivative liabilities for exercised warrants (8,923) $ — (8,923) Balance, December 31, 2021 — 24,564 24,564 |
Schedule of 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, 2021 As of December 31, 2020 Number of private placement warrants 5,933,334 5,933,334 Exercise price $ 11.50 $ 11.50 Stock price $ 9.78 $ 20.75 Expiration term (in years) 3.05 4.05 Volatility 70 % 60 % Risk-free Rate 0.98 % 0.27 % Dividend yield — % — % |
Restructuring and Asset Impai_2
Restructuring and Asset Impairment Charges (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 year ended December 31, 2019: Years Ended December 31, 2019 Recurring and other revenue $ 2,808 Costs and expenses: Operating expenses $ 5,455 Selling expenses $ 137 General and administrative expenses $ 5,291 Depreciation and amortization $ 68 Total costs and expenses $ 10,951 Loss from operations $ (8,143) Other expenses (income): Interest expense — Other income, net (2,100) Net loss $ (6,043) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Provision | The income tax expense consisted of the following (in thousands): Year ended December 31, 2021 2020 2019 Current income tax: Federal $ — $ — $ — State 2,359 2,174 703 Foreign 3,641 764 (2) Total 6,000 2,938 701 Deferred income tax: Federal — — (380) State (263) (851) (73) Foreign (3,266) (1,004) 1,065 Total (3,529) (1,855) 612 Income tax expense $ 2,471 $ 1,083 $ 1,313 |
Schedule of 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 (in thousands): Year ended December 31, 2021 2020 2019 Computed expected tax benefit $ (63,647) $ (126,472) $ (82,833) State income taxes, net of federal tax effect 1,556 882 483 Foreign income taxes 221 (383) 232 Other reconciling items (1,235) (714) 2,988 Permanent differences (8,753) 36,423 5,694 Excess deductible compensation limitation 10,463 9,667 1,313 Change in valuation allowance 63,866 81,680 73,436 Income tax expense $ 2,471 $ 1,083 $ 1,313 |
Schedule of 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, 2021 2020 Gross deferred tax assets: Net operating loss carryforwards $ 546,693 $ 558,972 Deferred subscriber income 326,759 254,722 Interest expense limitation 142,919 119,402 Accrued expenses and allowances 56,495 52,031 Lease liabilities 13,356 15,342 Purchased intangibles and deferred financing costs 9,687 13,765 Inventory reserves 1,859 2,801 Research and development credits 41 41 Deferred capitalized contract costs 1,800 — Property and equipment 1,888 2 Valuation allowance (740,397) (664,191) Total 361,100 352,887 Gross deferred tax liabilities: Deferred capitalized contract costs (346,887) (338,141) Right of use assets (11,430) (13,119) Purchased intangibles and deferred financing costs (959) (2,092) Property and equipment (443) (1,703) Total (359,719) -359719000 (355,055) Net deferred tax assets (liabilities) $ 1,381 $ (2,168) |
Summary of Net Operating Loss Carryforwards | The Company had gross operating loss carryforwards as follows (in thousands): December 31, 2021 2020 Net operating loss carryforwards: Federal $ 2,229,000 $ 2,294,340 States 2,036,000 1,996,245 Total $ 4,265,000 $ 4,290,585 |
Stock-Based Compensation and _2
Stock-Based Compensation and Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of the SAR Activity | A summary of the Rollover SARs activity for the years ended December 31, 2021 and 2020 is presented below: Rollover SARs Weighted Average Weighted Average Aggregate 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 Forfeited (409,566) 18.50 Exercised (59,733) 9.32 Outstanding, December 31, 2021 2,004,712 17.65 5.62 — Unvested Rollover SARs expected to vest after December 31, 2021 — — — — Exercisable at December 31, 2021 2,004,712 $ 17.65 5.62 — |
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, 2021 is presented below: Shares Weighted Average Grant-Date Fair Value per Share Unvested at December 31, 2020 412,816 $ 21.98 Granted 847,141 23.08 Vested (1,235,897) 22.73 Unvested at December 31, 2020 24,060 21.98 |
Summary of Restricted Stock Unit Activity | The following summarizes information about RSU transactions for the year ended December 31, 2021: Units Weighted Average Grant-Date Fair Value per Unit Unvested at December 31, 2020 8,640,418 $ 22.76 Modified (1,842,146) 22.86 Granted 5,865,475 13.33 Vested (2,162,984) 22.62 Forfeited (930,096) 20.43 Unvested at December 31, 2021 9,570,667 16.12 |
Summary of Performance Stock Unit Activity | The following summarizes information about PSU transactions for the year ended December 31, 2021: Units Weighted Average Grant-Date Fair Value per Unit Unvested at December 31, 2020 4,877,277 $ 22.67 Modified 1,842,146 22.86 Granted 5,993,063 15.72 Vested (2,348,957) 22.83 Forfeited (719,863) 19.12 Unvested at December 31, 2021 9,643,666 17.23 |
Schedule of Stock-Based Compensation Expense | Stock-based compensation expense in connection with all stock-based awards for the years ended December 31, 2021, 2020 and 2019 is allocated as follows (in thousands): Year ended December 31, 2021 2020 2019 Operating expenses $ 16,567 $ 20,157 $ 320 Selling expenses 103,239 101,623 508 General and administrative expenses 46,622 76,433 3,413 Total stock-based compensation $ 166,428 $ 198,213 $ 4,241 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 Operating lease cost $ 15,689 $ 16,784 Finance lease cost: Amortization of right-of-use assets $ 2,375 $ 5,090 Interest on lease liabilities 264 453 Total finance lease cost $ 2,639 $ 5,543 Supplemental cash flow information related to leases was as follows (in thousands): Year ended December 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (16,877) $ (17,635) Operating cash flows from finance leases (264) (453) Financing cash flows from finance leases (3,158) (7,657) Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 4,490 $ 3,420 Finance leases 1,808 1,228 |
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, 2021 2020 Operating Leases Operating lease right-of-use assets $ 46,000 $ 52,880 Current operating lease liabilities $ 12,033 $ 12,135 Operating lease liabilities 41,713 49,692 Total operating lease liabilities $ 53,746 $ 61,827 Finance Leases Property, plant and equipment, gross $ 40,939 $ 40,571 Accumulated depreciation (24,465) (22,976) Property, plant and equipment, net $ 16,474 $ 17,595 Current finance lease liabilities $ 2,854 $ 3,356 Finance lease liabilities 1,416 2,460 Total finance lease liabilities $ 4,270 $ 5,816 Weighted Average Remaining Lease Term Operating leases 5 years 5 years Finance leases 2.7 years 1.6 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, 2022 $ 15,858 $ 3,025 2023 15,199 847 2024 14,392 514 2025 8,764 — 2026 5,008 — Thereafter 4,494 — Total lease payments 63,715 4,386 Less imputed interest (9,969) (116) Total $ 53,746 $ 4,270 |
Schedule of Maturities of Operating Leases Liabilities | Maturities of lease liabilities were as follows (in thousands): Operating Leases Finance Leases Year Ending December 31, 2022 $ 15,858 $ 3,025 2023 15,199 847 2024 14,392 514 2025 8,764 — 2026 5,008 — Thereafter 4,494 — Total lease payments 63,715 4,386 Less imputed interest (9,969) (116) Total $ 53,746 $ 4,270 |
Segment Reporting and Busines_2
Segment Reporting and Business Concentrations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 $ 1,418,700 $ 60,688 $ 1,479,388 Year ended December 31, 2020 $ 1,186,218 $ 66,049 $ 1,252,267 Year ended December 31, 2019 $ 1,079,246 $ 71,854 $ 1,151,100 |
Basic and Diluted Net Loss Pe_2
Basic and Diluted Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021, 2020 and 2019: Year ended December 31, 2021 2020 2019 Numerator: Net loss attributable to common stockholders $ (305,552) $ (603,331) $ (400,696) Gain on change in fair value of warrants, diluted (50,967) — — Net loss attributable to common stockholders, diluted (in thousands) (356,519) (603,331) (400,696) Denominator: Shares used in computing net loss attributable per share to common stockholders, basic and diluted 208,265,631 179,071,278 94,805,201 Weighted-average effect of potentially dilutive shares to purchase common stock 812,536 — — Shares used in computing net loss attributable per share to common stockholders, diluted 209,078,167 179,071,278 94,805,201 Net loss attributable per share to common stockholders: Basic $ (1.47) $ (3.37) $ (4.23) Diluted $ (1.71) $ (3.37) $ (4.23) |
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, 2021 2020 2019 Rollover SARs 2,004,712 2,474,011 3,603,537 Rollover LTIPs — 2,316,869 4,633,738 RSUs 9,570,667 8,692,347 51,929 PSUs 9,643,666 4,877,277 — Public warrants — 878,346 — Private placement warrants — 5,933,334 — Earnout shares reserved for future issuance 24,060 1,260,281 — |
Schedule of Restatement of Fina
Schedule of Restatement of Financial Statements - Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Long-term notes receivables and other assets, net | $ 44,753 | $ 58,317 | ||
Total assets | 2,785,628 | 2,872,425 | ||
Deferred revenue | 429,900 | 327,632 | ||
Total current liabilities | 874,201 | 773,546 | ||
Deferred revenue, net of current portion | 778,214 | 621,182 | ||
Deferred income tax liabilities | 640 | 2,168 | ||
Total liabilities | 4,525,728 | 4,461,914 | ||
Accumulated deficit | (3,417,038) | (3,111,486) | ||
Total stockholders’ deficit | (1,740,100) | (1,589,489) | $ (1,795,491) | $ (1,400,402) |
Total liabilities and stockholders’ deficit | $ 2,785,628 | 2,872,425 | ||
As Previously Reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Long-term notes receivables and other assets, net | 62,510 | |||
Total assets | 2,876,618 | |||
Deferred revenue | 321,143 | |||
Total current liabilities | 767,057 | |||
Deferred revenue, net of current portion | 615,598 | |||
Total liabilities | 4,449,841 | |||
Accumulated deficit | (3,095,220) | |||
Total stockholders’ deficit | (1,573,223) | |||
Total liabilities and stockholders’ deficit | 2,876,618 | |||
Adjustment | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Long-term notes receivables and other assets, net | (4,193) | |||
Total assets | (4,193) | |||
Deferred revenue | 6,489 | |||
Total current liabilities | 6,489 | |||
Deferred revenue, net of current portion | 5,584 | |||
Total liabilities | 12,073 | |||
Accumulated deficit | (16,266) | |||
Total stockholders’ deficit | (16,266) | |||
Total liabilities and stockholders’ deficit | $ (4,193) |
Schedule of Restatement of Fi_2
Schedule of Restatement of Financial Statements - Statement of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Recurring and other revenue | $ 1,479,388 | $ 1,252,267 | $ 1,151,100 |
Selling expenses | 379,497 | 302,287 | 191,800 |
General and administrative expenses | 268,312 | 267,923 | 193,480 |
Depreciation and amortization | 601,452 | 570,831 | 543,592 |
Total costs and expenses | 1,633,626 | 1,514,325 | 1,298,157 |
Loss from operations | (154,238) | (262,058) | (147,057) |
Loss before income taxes | (303,081) | (602,248) | (399,383) |
Income tax expense | 2,471 | 1,083 | 1,313 |
Net loss | (305,552) | (603,331) | (400,696) |
Comprehensive loss | $ (305,641) | $ (602,674) | $ (399,325) |
Basic (in dollars per share) | $ (1.47) | $ (3.37) | $ (4.23) |
Diluted (in dollars per share) | $ (1.71) | $ (3.37) | $ (4.23) |
As Previously Reported | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Recurring and other revenue | $ 1,260,566 | $ 1,155,981 | |
Selling expenses | 193,359 | ||
General and administrative expenses | 266,335 | 192,182 | |
Depreciation and amortization | 543,440 | ||
Total costs and expenses | 1,512,737 | 1,298,266 | |
Loss from operations | (252,171) | (142,285) | |
Loss before income taxes | (592,361) | (394,611) | |
Income tax expense | 2,837 | ||
Net loss | (595,198) | (395,924) | |
Comprehensive loss | $ (594,541) | $ (394,553) | |
Basic (in dollars per share) | $ (3.32) | $ (4.18) | |
Diluted (in dollars per share) | $ (3.32) | $ (4.18) | |
Adjustment | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Recurring and other revenue | $ (8,299) | $ (4,881) | |
Selling expenses | (1,559) | ||
General and administrative expenses | 1,588 | 1,298 | |
Depreciation and amortization | 152 | ||
Total costs and expenses | 1,588 | (109) | |
Loss from operations | (9,887) | (4,772) | |
Loss before income taxes | (9,887) | (4,772) | |
Income tax expense | (1,754) | ||
Net loss | (8,133) | (4,772) | |
Comprehensive loss | $ (8,133) | $ (4,772) | |
Basic (in dollars per share) | $ (0.05) | $ (0.05) | |
Diluted (in dollars per share) | $ (0.05) | $ (0.05) |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | |||
Dec. 31, 2021USD ($)paymentunit | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Material right to renew contract, term | 3 years | |||
Accounts receivable | $ 26,400,000 | $ 19,800,000 | ||
Allowance for doubtful accounts | $ 13,271,000 | 9,911,000 | $ 8,118,000 | $ 5,594,000 |
Capitalized contract cost, amortization period | 5 years | |||
Capitalized contract costs, expected period of benefit | 5 years | |||
Capitalized contract cost, impairment loss | $ 0 | 0 | ||
Amortization of deferred financing costs and bond premiums and discounts | 4,629,000 | 3,956,000 | 4,703,000 | |
Sales commission included in accrued payroll and commissions | 4,300,000 | 4,100,000 | ||
Other long-term obligations | 23,200,000 | 23,800,000 | ||
Advertising expenses incurred | $ 89,900,000 | 70,900,000 | 60,400,000 | |
Uncertain income tax position percentage | 50.00% | |||
Number of reporting units | unit | 1 | |||
Goodwill, impairment loss | $ 0 | 0 | 0 | |
Issued and unused letters of credit | 15,300,000 | |||
Vivint Sky Control Panels | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Percentage of installed panels | 95.00% | |||
2GIG Sale | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Percentage of installed panels | 5.00% | |||
Minimum | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Liability percentage | 260.00% | |||
Maximum | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Liability percentage | 100.00% | |||
Interest Expense | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Amortization of deferred financing costs and bond premiums and discounts | $ 6,900,000 | 7,900,000 | $ 9,800,000 | |
Notes Payable | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Deferred financing cost, net | 34,300,000 | 27,200,000 | ||
Deferred financing cost, accumulated amortization | 77,400,000 | 70,900,000 | ||
Revolving Credit Facility | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Issued and unused letters of credit | 356,000,000 | |||
Revolving Credit Facility | Line of Credit | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Deferred financing cost, net | 2,100,000 | 1,700,000 | ||
Deferred financing cost, accumulated amortization | $ 11,500,000 | $ 11,000,000 | ||
Vivint Flex Pay | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Number of payment options | payment | 3 | |||
Vivint Flex Pay | Minimum | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Installment loans available to qualified customers, amount provided by third party | $ 150 | |||
Installment loans available to qualified customers, annual percentage rate | 0.00% | |||
Loans available to qualified customers, term of loan | 6 months | |||
Vivint Flex Pay | Maximum | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Installment loans available to qualified customers, amount provided by third party | $ 6,000 | |||
Installment loans available to qualified customers, annual percentage rate | 9.99% | |||
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 - Statement of Operations in Other (Income) Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||
Translation gain | $ (423) | $ (602) | $ (3,400) |
Significant Accounting Polici_6
Significant Accounting Policies - Accounts Receivable (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 9,911 | $ 8,118 | $ 5,594 |
Provision for doubtful accounts | 31,341 | 23,778 | 25,043 |
Write-offs and adjustments | (27,981) | (21,985) | (22,519) |
Balance at end of period | $ 13,271 | $ 9,911 | $ 8,118 |
Significant Accounting Polici_7
Significant Accounting Policies - Depreciation and Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Total depreciation and amortization | $ 601,452 | $ 570,831 | $ 543,592 |
Depreciation and amortization of property, plant and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total depreciation and amortization | 16,467 | 20,153 | 25,687 |
Amortization of capitalized contract costs | |||
Property, Plant and Equipment [Line Items] | |||
Total depreciation and amortization | 524,981 | 481,213 | 437,437 |
Amortization of definite-lived intangibles | |||
Property, Plant and Equipment [Line Items] | |||
Total depreciation and amortization | $ 60,004 | $ 69,465 | $ 80,468 |
Revenue and Capitalized Contr_2
Revenue and Capitalized Contract Costs - (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Capitalized Contract Cost [Line Items] | ||
Service warranty accrual | $ 5,992 | $ 5,711 |
Revenue recognized that were included in deferred revenue | 320,000 | $ 235,900 |
Revenue expected to be recognized from remaining performance obligations for subscription contracts | $ 3,400,000 | |
Capitalized contract cost, amortization period | 5 years | |
Subscriber Contracts | Minimum | ||
Capitalized Contract Cost [Line Items] | ||
Contract with customer, term | 3 years | |
Subscriber Contracts | Maximum | ||
Capitalized Contract Cost [Line Items] | ||
Contract with customer, term | 5 years |
Revenue and Capitalized Contr_3
Revenue and Capitalized Contract Costs - Performance Obligation, Expected Timing (Details) | Dec. 31, 2021 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percentage revenue of related to remaining performance obligation expected to recognized over the next 24 months | 63.00% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 24 months |
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 |
Retail Installment Contract R_3
Retail Installment Contract Receivables - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Period of RIC customer history | 2 years | |||
Change in expected credit losses | $ 259,113 | $ 304,381 | $ 133,505 | |
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] | ||||
Interest income | 7,600 | 10,600 | $ 13,600 | |
Other revenue | $ 7,600 | $ 10,600 | $ 13,600 | |
Retail Installment Contracts | Uncollectible Receivables | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest income | (9,100) | |||
Change in expected credit losses | 26,600 | |||
Other revenue | $ (9,100) | |||
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 - Installment Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
RIC allowance | $ (12,384) | $ (27,061) | |
Imputed interest | (7,469) | (13,275) | |
Classified on the consolidated balance sheets as: | |||
Accounts and Financing Receivable, after Allowance for Credit Loss, Current | 63,671 | 64,697 | |
Long-term notes receivables and other assets, net | 44,753 | 58,317 | |
Retail Installment Contracts | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
RIC receivables, gross | 90,204 | 138,926 | |
RIC allowance | (12,384) | (27,061) | $ (38,110) |
RIC receivables, net | 70,351 | 98,590 | |
Classified on the consolidated balance sheets as: | |||
Accounts and Financing Receivable, after Allowance for Credit Loss, Current | 37,270 | 44,931 | |
Long-term notes receivables and other assets, net | $ 33,081 | $ 53,659 |
Retail Installment Contract R_5
Retail Installment Contract Receivables - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
RIC allowance, beginning of period | $ 27,061 | |
Recoveries | 3,446 | $ 6,340 |
RIC allowance, end of period | 12,384 | 27,061 |
Retail Installment Contracts | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
RIC allowance, beginning of period | 27,061 | 38,110 |
Write-offs | (13,714) | (21,841) |
Additions from RICs originated during the period | 6,795 | 7,567 |
Change in expected credit losses | (10,995) | (2,914) |
Other adjustments | (209) | (201) |
RIC allowance, end of period | $ 12,384 | $ 27,061 |
Long-Term Debt - Summary of Deb
Long-Term Debt - Summary of Debt (Detail) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Outstanding principal, noncurrent debt | $ 2,733,125,000 | |
Outstanding Principal, total debt | 2,746,625,000 | $ 2,844,875,000 |
Unamortized Premium (Discount) | 0 | 7,885,000 |
Unamortized Deferred Financing Costs | (34,280,000) | (27,160,000) |
Net Carrying Amount, noncurrent | 2,698,845,000 | |
Net Carrying Amount | 2,712,345,000 | 2,825,600,000 |
Long-term Debt | ||
Debt Instrument [Line Items] | ||
Outstanding principal, noncurrent debt | 2,835,375,000 | |
Unamortized Premium (Discount) | 7,885,000 | |
Unamortized Deferred Financing Costs | (27,160,000) | |
Net Carrying Amount, noncurrent | 2,816,100,000 | |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Net Carrying Amount | 0 | 0 |
Deferred financing costs, net | $ 2,100,000 | $ 1,700,000 |
Senior Notes | 6.750% Senior Secured Notes Due 2027 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (percentage) | 6.75% | 6.75% |
Outstanding principal, noncurrent debt | $ 600,000,000 | $ 600,000,000 |
Unamortized Premium (Discount) | 0 | 0 |
Unamortized Deferred Financing Costs | (4,835,000) | (5,771,000) |
Net Carrying Amount, noncurrent | $ 595,165,000 | $ 594,229,000 |
Senior Notes | 5.750% Senior Notes Due 2029 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (percentage) | 5.75% | |
Outstanding principal, noncurrent debt | $ 800,000,000 | |
Unamortized Premium (Discount) | 0 | |
Unamortized Deferred Financing Costs | (11,154,000) | |
Net Carrying Amount, noncurrent | $ 788,846,000 | |
Senior Notes | 7.875% Senior Secured Notes Due 2022 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (percentage) | 7.875% | 7.875% |
Outstanding principal, noncurrent debt | $ 677,000,000 | |
Unamortized Premium (Discount) | 7,885,000 | |
Unamortized Deferred Financing Costs | (4,697,000) | |
Net Carrying Amount, noncurrent | $ 680,188,000 | |
Senior Notes | 7.625% Senior Notes Due 2023 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (percentage) | 7.625% | 7.625% |
Outstanding principal, noncurrent debt | $ 400,000,000 | |
Unamortized Premium (Discount) | 0 | |
Unamortized Deferred Financing Costs | (2,241,000) | |
Net Carrying Amount, noncurrent | $ 397,759,000 | |
Senior Notes | 8.500% Senior Secured Notes Due 2024 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate (percentage) | 8.50% | 8.50% |
Outstanding principal, noncurrent debt | $ 225,000,000 | |
Unamortized Premium (Discount) | 0 | |
Unamortized Deferred Financing Costs | (3,530,000) | |
Net Carrying Amount, noncurrent | 221,470,000 | |
Term Loan | Term Loan | ||
Debt Instrument [Line Items] | ||
Outstanding principal, noncurrent debt | 933,375,000 | |
Unamortized Premium (Discount) | 0 | |
Unamortized Deferred Financing Costs | (10,921,000) | |
Net Carrying Amount, noncurrent | 922,454,000 | |
Net carrying amount, current | 9,500,000 | |
Term Loan | Term Loan | ||
Debt Instrument [Line Items] | ||
Outstanding principal, noncurrent debt | $ 1,333,125,000 | |
Outstanding principal, current debt | 13,500,000 | $ 9,500,000 |
Unamortized Premium (Discount) | 0 | |
Unamortized Deferred Financing Costs | (18,291,000) | |
Net Carrying Amount, noncurrent | 1,314,834,000 | |
Net carrying amount, current | $ 13,500,000 |
Long-Term Debt - Notes Payable
Long-Term Debt - Notes Payable (Detail) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2021USD ($)step-down | Jul. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Debt Instrument [Line Items] | ||||
Outstanding principal, noncurrent debt | $ 2,733,125,000 | |||
Face Value | $ 2,712,345,000 | $ 2,825,600,000 | ||
Available borrowing capacity | 15,300,000 | |||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Basis percentage | 0.50% | |||
Number of interest rate step downs | step-down | 2 | |||
Commitment fee, step down (percentage) | 0.125% | |||
Face Value | $ 0 | 0 | ||
Available borrowing capacity | 356,000,000 | |||
Letters of credit outstanding | 14,000,000 | |||
Senior Notes | 6.750% Senior Secured Notes Due 2027 | ||||
Debt Instrument [Line Items] | ||||
Outstanding principal, noncurrent debt | $ 600,000,000 | $ 600,000,000 | ||
Debt instrument interest rate (percentage) | 6.75% | 6.75% | ||
Senior Notes | 5.750% Senior Notes Due 2029 | ||||
Debt Instrument [Line Items] | ||||
Outstanding principal, noncurrent debt | $ 800,000,000 | |||
Debt instrument interest rate (percentage) | 5.75% | |||
Senior Notes | 7.875% Senior Secured Notes Due 2022 | ||||
Debt Instrument [Line Items] | ||||
Outstanding principal, noncurrent debt | $ 677,000,000 | |||
Debt instrument interest rate (percentage) | 7.875% | 7.875% | ||
Senior Notes | 7.625% Senior Notes Due 2023 | ||||
Debt Instrument [Line Items] | ||||
Outstanding principal, noncurrent debt | $ 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] | ||||
Outstanding principal, noncurrent debt | $ 225,000,000 | |||
Debt instrument interest rate (percentage) | 8.50% | 8.50% | ||
Term Loan | Term Loan | ||||
Debt Instrument [Line Items] | ||||
Outstanding principal, noncurrent debt | $ 933,375,000 | |||
Principal amount | $ 1,346,600,000 | $ 1,350,000,000 | ||
Debt instrument, redemption price, percentage of principal amount redeemed (as a percentage) | 0.25% | |||
Term Loan | Term Loan | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 370,000,000 | |||
Federal Funds Effective Swap Rate | Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Variable Interest rate (percentage) | 0.50% | |||
LIBOR | Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Variable Interest rate (percentage) | 1.00% | |||
LIBOR plus 1% | Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Variable Interest rate (percentage) | 2.50% | |||
LIBOR plus 1% | Credit Agreement | Forecast | Maximum | ||||
Debt Instrument [Line Items] | ||||
Variable Interest rate (percentage) | 2.50% | |||
LIBOR plus 1% | Credit Agreement | Forecast | Minimum | ||||
Debt Instrument [Line Items] | ||||
Variable Interest rate (percentage) | 2.00% | |||
LIBOR Referenced to Applicable Page for LIBOR Rate for the Interest Period Relevant to Such Borrowings | Credit Agreement | Maximum | ||||
Debt Instrument [Line Items] | ||||
Variable Interest rate (percentage) | 3.50% | |||
LIBOR Referenced to Applicable Page for LIBOR Rate for the Interest Period Relevant to Such Borrowings | Credit Agreement | Forecast | Maximum | ||||
Debt Instrument [Line Items] | ||||
Variable Interest rate (percentage) | 3.50% | |||
LIBOR Referenced to Applicable Page for LIBOR Rate for the Interest Period Relevant to Such Borrowings | Credit Agreement | Forecast | Minimum | ||||
Debt Instrument [Line Items] | ||||
Variable Interest rate (percentage) | 3.00% |
Long-Term Debt - Other Expense
Long-Term Debt - Other Expense and Loss on Extinguishment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Original premium extinguished | $ (5,656) | $ (2,749) | |
Previously deferred financing costs extinguished | 9,515 | 4,268 | |
New financing costs | 26,352 | 11,191 | |
Total other expense and loss on extinguishment | 30,211 | 12,710 | |
Previously deferred financing rolled over | 8,148 | 7,178 | |
New deferred financing costs | 23,069 | 11,807 | |
Total deferred financing costs | 31,217 | 18,985 | |
Term Loan | Term Loan | |||
Debt Instrument [Line Items] | |||
Previously deferred financing costs extinguished | 1,499 | 235 | |
Term Loan | Term Loan issuance - July 2021 | Term Loan | |||
Debt Instrument [Line Items] | |||
Original premium extinguished | 0 | ||
Previously deferred financing costs extinguished | 1,499 | ||
New financing costs | 9,165 | ||
Total other expense and loss on extinguishment | 10,664 | ||
Previously deferred financing rolled over | 8,148 | ||
New deferred financing costs | 11,302 | ||
Total deferred financing costs | 19,450 | ||
Term Loan | Term Loan issuance - February 2020 | Term Loan | |||
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 | ||
Senior Notes | 2029 Notes | |||
Debt Instrument [Line Items] | |||
Previously deferred financing costs extinguished | 0 | ||
Senior Notes | 8.500% Senior Secured Notes Due 2024 | |||
Debt Instrument [Line Items] | |||
Previously deferred financing costs extinguished | 3,021 | 0 | |
Senior Notes | 2029 Notes issuance - July 2021 | 2029 Notes | |||
Debt Instrument [Line Items] | |||
Original premium extinguished | (5,656) | ||
Previously deferred financing costs extinguished | 8,016 | ||
New financing costs | 17,187 | ||
Total other expense and loss on extinguishment | 19,547 | ||
Previously deferred financing rolled over | 0 | ||
New deferred financing costs | 11,767 | ||
Total deferred financing costs | $ 11,767 | ||
Senior Notes | 2027 Notes issuance - February 2020 | 6.750% Senior Secured Noes Due 2027 | |||
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 | ||
Senior Notes | 2024 Notes issuance - May 2019 | 8.500% Senior Secured Notes Due 2024 | |||
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 |
Long-Term Debt - Deferred Finan
Long-Term Debt - Deferred Financing Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred Financing Activity [Roll Forward] | ||
Beginning balance | $ 28,827 | $ 28,161 |
Additions | 23,912 | 12,834 |
Early Extinguishment | (9,515) | (4,268) |
Amortized | (6,858) | (7,900) |
Ending balance | 36,366 | 28,827 |
Senior Notes | 2020 Notes | ||
Deferred Financing Activity [Roll Forward] | ||
Beginning balance | 0 | 1,721 |
Additions | 0 | |
Early Extinguishment | (1,565) | |
Amortized | (156) | |
Ending balance | 0 | |
Senior Notes | 2022 Private Placement Notes | ||
Deferred Financing Activity [Roll Forward] | ||
Beginning balance | 0 | 451 |
Additions | (205) | |
Early Extinguishment | (221) | |
Amortized | (25) | |
Ending balance | 0 | |
Senior Notes | 2022 Notes | ||
Deferred Financing Activity [Roll Forward] | ||
Beginning balance | 4,697 | 9,532 |
Additions | 0 | 0 |
Early Extinguishment | (3,314) | (2,247) |
Amortized | (1,383) | (2,588) |
Ending balance | 0 | 4,697 |
Senior Notes | 2023 Notes | ||
Deferred Financing Activity [Roll Forward] | ||
Beginning balance | 2,241 | 3,081 |
Additions | 0 | 0 |
Early Extinguishment | (1,681) | 0 |
Amortized | (560) | (840) |
Ending balance | 0 | 2,241 |
Senior Notes | 2024 Notes | ||
Deferred Financing Activity [Roll Forward] | ||
Beginning balance | 3,530 | 4,431 |
Additions | 0 | 0 |
Early Extinguishment | (3,021) | 0 |
Amortized | (509) | (901) |
Ending balance | 0 | 3,530 |
Senior Notes | 2027 Notes | ||
Deferred Financing Activity [Roll Forward] | ||
Beginning balance | 5,771 | 0 |
Additions | 0 | 6,551 |
Early Extinguishment | 0 | 0 |
Amortized | (936) | (780) |
Ending balance | 4,835 | 5,771 |
Senior Notes | 2029 Notes | ||
Deferred Financing Activity [Roll Forward] | ||
Beginning balance | 0 | |
Additions | 11,767 | |
Early Extinguishment | 0 | |
Amortized | (614) | |
Ending balance | 11,153 | 0 |
Term Loan | Term Loan | ||
Deferred Financing Activity [Roll Forward] | ||
Beginning balance | 10,921 | 7,822 |
Additions | 11,302 | 5,461 |
Early Extinguishment | (1,499) | (235) |
Amortized | (2,434) | (2,127) |
Ending balance | 18,290 | 10,921 |
Revolving Credit Facility | Line of Credit | ||
Deferred Financing Activity [Roll Forward] | ||
Beginning balance | 1,667 | 1,123 |
Additions | 843 | 1,027 |
Early Extinguishment | 0 | 0 |
Amortized | (422) | (483) |
Ending balance | $ 2,088 | $ 1,667 |
Business Combination (Details)
Business Combination (Details) $ / shares in Units, $ in Millions | Jan. 17, 2020USD ($)$ / sharesshares | Jan. 16, 2020$ / shares | Dec. 31, 2021$ / shares | Dec. 31, 2020$ / shares |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||
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 | |||
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 | Mosaic Sponsor LLC | ||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||
Percentage of Mosaic Sponsor LLC's founder shares and private placement warrants forfeited (percent) | 25.00% | |||
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 - Schedule
Business Combination - Schedule of Net Impact (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||
Net cash received from recapitalization | $ 0 | $ 463,522 | $ 0 |
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: Warrant derivative liabilities assumed | (40,094) | ||
Less: non-cash net liabilities assumed from Mosaic | (5) | ||
Less: deferred and accrued transaction costs | (1,304) | ||
Net contributions from recapitalization | $ 422,119 |
Business Combination - Schedu_2
Business Combination - Schedule of Shares Issued (Details) - shares | Jan. 17, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||
Common stock, outstanding (in shares) | 154,730,618 | 208,734,193 | 202,216,341 |
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 - Earnout
Business Combination - Earnout Consideration (Details) - $ / shares | Jan. 17, 2020 | Feb. 29, 2020 |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||
Earnout consideration, shares issued (in shares) | 37,323,959 | |
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 - Sche
Balance Sheet Components - Schedule of Balance Sheet Component Balances (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid expenses | $ 12,791 | $ 11,286 |
Deposits | 627 | 1,308 |
Other | 5,967 | 1,744 |
Total prepaid expenses and other current assets | 19,385 | 14,338 |
Capitalized contract costs | ||
Capitalized contract costs | 4,103,683 | 3,491,629 |
Accumulated amortization | (2,698,241) | (2,173,131) |
Capitalized contract costs, net | 1,405,442 | 1,318,498 |
Long-term notes receivables and other assets | ||
RIC receivables, gross | 52,934 | 93,995 |
RIC allowance | (12,384) | (27,061) |
RIC imputed interest | (7,469) | (13,275) |
Deferred income tax assets | 2,022 | 0 |
Other | 9,650 | 4,658 |
Total long-term notes receivables and other assets, net | 44,753 | 58,317 |
Accrued payroll and commissions | ||
Accrued commissions | 47,879 | 46,353 |
Accrued payroll | 35,468 | 41,590 |
Total accrued payroll and commissions | 83,347 | 87,943 |
Accrued expenses and other current liabilities | ||
Accrued interest payable | 40,333 | 33,340 |
Current portion of derivative liability | 140,394 | 142,755 |
Service warranty accrual | 5,992 | 5,711 |
Current portion of warrant derivative liabilities | 0 | 8,063 |
Accrued taxes | 10,758 | 8,700 |
Accrued payroll taxes and withholdings | 14,392 | 14,391 |
Loss contingencies | 8,150 | 26,200 |
Other | 16,231 | 8,164 |
Total accrued expenses and other current liabilities | $ 236,250 | $ 247,324 |
Property Plant and Equipment -
Property Plant and Equipment - Components of Property and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 187,085 | $ 169,051 |
Accumulated depreciation and amortization | (131,637) | (116,672) |
Property, plant and equipment, net | 55,448 | 52,379 |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 40,103 | 39,735 |
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 | $ 83,479 | 72,616 |
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 | $ 30,087 | 29,126 |
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 | $ 22,327 | 21,394 |
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 | $ 11,089 | $ 6,180 |
Property Plant and Equipment _2
Property Plant and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Finance lease, right-of-use asset, net | $ 16,474 | $ 17,595 | |
Accumulated amortization | 24,465 | 22,976 | |
Depreciation and amortization expense | $ 16,500 | $ 20,200 | $ 25,700 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Roll Forward] | ||
Goodwill beginning balance | $ 837,077 | $ 836,540 |
Effect of Foreign Currency Translation | 76 | 537 |
Goodwill ending balance | $ 837,153 | $ 837,077 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Intangible Asset Balances (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Definite-lived intangible assets, gross carrying amount | $ 1,009,381 | $ 1,008,826 |
Accumulated Amortization | (957,518) | (897,417) |
Definite-lived intangible assets, net carrying amount | 51,863 | 111,409 |
Indefinite-lived intangible assets: | 65 | 65 |
Total intangible assets, gross carrying amount | 1,009,446 | 1,008,891 |
Total intangible assets, net carrying amount | 51,928 | 111,474 |
Domain names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets: | 65 | 65 |
Customer contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Definite-lived intangible assets, gross carrying amount | 969,376 | 969,158 |
Accumulated Amortization | (920,617) | (862,352) |
Definite-lived intangible assets, net carrying amount | $ 48,759 | 106,806 |
Estimated Useful Lives | 10 years | |
2GIG 2.0 technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Definite-lived intangible assets, gross carrying amount | $ 17,000 | 17,000 |
Accumulated Amortization | (17,000) | (17,000) |
Definite-lived intangible assets, net carrying amount | $ 0 | 0 |
Estimated Useful Lives | 8 years | |
Other technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Definite-lived intangible assets, gross carrying amount | $ 4,725 | 4,725 |
Accumulated Amortization | (4,725) | (4,309) |
Definite-lived intangible assets, net carrying amount | $ 0 | 416 |
Other technology | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 2 years | |
Other technology | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 7 years | |
Space Monkey technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Definite-lived intangible assets, gross carrying amount | $ 7,100 | 7,100 |
Accumulated Amortization | (7,100) | (7,100) |
Definite-lived intangible assets, net carrying amount | $ 0 | 0 |
Estimated Useful Lives | 6 years | |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Definite-lived intangible assets, gross carrying amount | $ 11,180 | 10,843 |
Accumulated Amortization | (8,076) | (6,656) |
Definite-lived intangible assets, net carrying amount | $ 3,104 | $ 4,187 |
Estimated Useful Lives | 5 years |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense related to intangible assets | $ 60 | $ 69.5 | $ 80.5 |
Definite-lived intangible assets, remaining amortization period | 1 year | ||
Finite-lived patents, gross | $ 0.1 | ||
Patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Acquisition of intangible assets | $ 0.4 | $ 3.1 |
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, 2021USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2022 | $ 49,889 |
2023 | 795 |
2024 | 610 |
2025 | 514 |
2026 | 4 |
Thereafter | 0 |
Total estimated amortization expense | $ 51,812 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | ||||
Cash and cash equivalents | $ 208,509 | $ 313,799 | $ 4,549 | $ 12,773 |
Corporate securities, fair value | $ 2,400 |
Financial Instruments - Debt Fa
Financial Instruments - Debt Fair Value and Carrying Value (Detail) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Face Value | $ 2,712,345,000 | $ 2,825,600,000 |
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% | 6.75% |
Senior Notes | 2029 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Stated Interest Rate | 5.75% | |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Face Value | $ 2,746,625,000 | $ 2,844,875,000 |
Estimated Fair Value | 2,775,965,000 | 2,919,123,000 |
Level 2 | Senior Notes | 2022 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Face Value | 0 | 677,000,000 |
Estimated Fair Value | 0 | 677,203,000 |
Level 2 | Senior Notes | 2023 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Face Value | 0 | 400,000,000 |
Estimated Fair Value | 0 | 415,200,000 |
Level 2 | Senior Notes | 2024 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Face Value | 0 | 225,000,000 |
Estimated Fair Value | 0 | 238,545,000 |
Level 2 | Senior Notes | 2027 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Face Value | 600,000,000 | 600,000,000 |
Estimated Fair Value | 633,660,000 | 645,300,000 |
Level 2 | Senior Notes | 2029 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Face Value | 800,000,000 | 0 |
Estimated Fair Value | 795,680,000 | 0 |
Level 2 | Term Loan | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Face Value | 1,346,625,000 | 942,875,000 |
Estimated Fair Value | $ 1,346,625,000 | $ 942,875,000 |
Financial Instruments - Derivat
Financial Instruments - Derivative Fair Value (Details) - Level 2 - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Fair value | $ 216,795 | $ 227,896 |
Notional amount | 1,160,278 | 912,626 |
Accrued expenses and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value | 140,394 | 142,755 |
Other long-term obligations | ||
Derivatives, Fair Value [Line Items] | ||
Fair value | $ 76,401 | $ 85,141 |
Financial Instruments - Level 3
Financial Instruments - Level 3 (Details) - Fair Value, Inputs, Level 3 - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Balance, beginning of period | $ 227,896 | $ 136,863 |
Additions | 94,995 | 167,055 |
Settlements | (91,826) | (71,962) |
Gains included in earnings | (14,270) | (4,060) |
Balance, end of period | $ 216,795 | $ 227,896 |
Financial Instruments - Change
Financial Instruments - Change in Fair Value of Derivative Warrant Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Warrant Derivative Liabilities [Roll Forward] | ||
Warrant liability assumed from the Business Combination | $ 75,531 | |
Balance, December 31, 2020 | 24,564 | $ 75,531 |
Change in fair value of warrant liability | (49,617) | 109,250 |
Warrant liability assumed from the Business Combination | 83,594 | 40,094 |
Write-off fair value of unexercised expired warrants | (490) | |
Reclassification of derivative liabilities for exercised warrants | (8,923) | (65,750) |
Balance, December 31, 2020 | 24,564 | 83,594 |
Public Warrants | ||
Warrant Derivative Liabilities [Roll Forward] | ||
Warrant liability assumed from the Business Combination | 8,063 | 9,775 |
Change in fair value of warrant liability | 1,350 | 64,038 |
Write-off fair value of unexercised expired warrants | (490) | |
Reclassification of derivative liabilities for exercised warrants | (8,923) | (65,750) |
Balance, December 31, 2020 | 0 | 8,063 |
Private Placement Warrants | ||
Warrant Derivative Liabilities [Roll Forward] | ||
Warrant liability assumed from the Business Combination | 75,531 | 30,319 |
Change in fair value of warrant liability | (50,967) | 45,212 |
Write-off fair value of unexercised expired warrants | 0 | |
Reclassification of derivative liabilities for exercised warrants | 0 | 0 |
Balance, December 31, 2020 | $ 24,564 | $ 75,531 |
Financial Instruments - Quantit
Financial Instruments - Quantitative Information Regarding Level 3 Measurements Inputs (Details) | Dec. 31, 2021$ / sharesshares | Dec. 31, 2020$ / sharesshares |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants outstanding (shares) | 0 | |
Private placement warrants | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants outstanding (shares) | 5,933,334 | |
Expiration term (in years) | 5 years | |
Warrant | Private placement warrants | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants outstanding (shares) | 5,933,334 | 5,933,334 |
Warrant | Private placement warrants | Exercise price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants outstanding, measurement input | $ / shares | 11.50 | 11.50 |
Warrant | Private placement warrants | Stock price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants outstanding, measurement input | $ / shares | 9.78 | 20.75 |
Warrant | Private placement warrants | Expiration term (in years) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Expiration term (in years) | 3 years 18 days | 4 years 18 days |
Warrant | Private placement warrants | Volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants outstanding, measurement input | 0.70 | 0.60 |
Warrant | Private placement warrants | Risk-free Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants outstanding, measurement input | 0.0098 | 0.0027 |
Warrant | Private placement warrants | Dividend yield | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants outstanding, measurement input | 0 | 0 |
Restructuring and Asset Impai_3
Restructuring and Asset Impairment Charges - Additional Information (Detail) - USD ($) $ in Thousands | Jul. 31, 2019 | Dec. 31, 2020 |
Severance and Termination Benefits Expenses | 2020 Cost Reductions | ||
Restructuring Cost and Reserve [Line Items] | ||
Cash-based restructuring charges | $ 20,900 | |
Stock-based Compensation Expense | 2020 Cost Reductions | ||
Restructuring Cost and Reserve [Line Items] | ||
Share-based payment arrangement, accelerated cost | $ 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 | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||
Recurring and other revenue | $ 1,479,388 | $ 1,252,267 | $ 1,151,100 |
Operating expenses | 384,365 | 352,343 | 369,285 |
Selling expenses | 379,497 | 302,287 | 191,800 |
General and administrative expenses | 268,312 | 267,923 | 193,480 |
Depreciation and amortization | 601,452 | 570,831 | 543,592 |
Total costs and expenses | 1,633,626 | 1,514,325 | 1,298,157 |
Loss from operations | (154,238) | (262,058) | (147,057) |
Interest expense | 184,993 | 221,175 | 260,014 |
Net loss | $ (305,552) | $ (603,331) | (400,696) |
Wireless | |||
Restructuring Cost and Reserve [Line Items] | |||
Operating expenses | 5,455 | ||
Selling expenses | 137 | ||
General and administrative expenses | 5,291 | ||
Depreciation and amortization | 68 | ||
Total costs and expenses | 10,951 | ||
Loss from operations | (8,143) | ||
Interest expense | 0 | ||
Other income, net | (2,100) | ||
Net loss | (6,043) | ||
Recurring and other revenue | Wireless | |||
Restructuring Cost and Reserve [Line Items] | |||
Recurring and other revenue | $ 2,808 |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current income tax: | |||
Federal | $ 0 | $ 0 | $ 0 |
State | 2,359 | 2,174 | 703 |
Foreign | 3,641 | 764 | (2) |
Total | 6,000 | 2,938 | 701 |
Deferred income tax: | |||
Federal | 0 | 0 | (380) |
State | (263) | (851) | (73) |
Foreign | (3,266) | (1,004) | 1,065 |
Total | (3,529) | (1,855) | 612 |
Income tax expense | $ 2,471 | $ 1,083 | $ 1,313 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Tax Expense Computed at Statutory Federal Rate and Company's Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Computed expected tax benefit | $ (63,647) | $ (126,472) | $ (82,833) |
State income taxes, net of federal tax effect | 1,556 | 882 | 483 |
Foreign income taxes | 221 | (383) | 232 |
Other reconciling items | (1,235) | (714) | 2,988 |
Permanent differences | (8,753) | 36,423 | 5,694 |
Excess deductible compensation limitation | 10,463 | 9,667 | 1,313 |
Change in valuation allowance | 63,866 | 81,680 | 73,436 |
Income tax expense | $ 2,471 | $ 1,083 | $ 1,313 |
Income Taxes - Significant Port
Income Taxes - Significant Portions of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Gross deferred tax assets: | ||
Net operating loss carryforwards | $ 546,693 | $ 558,972 |
Deferred subscriber income | 326,759 | 254,722 |
Interest expense limitation | 142,919 | 119,402 |
Accrued expenses and allowances | 56,495 | 52,031 |
Lease liabilities | 13,356 | 15,342 |
Purchased intangibles and deferred financing costs | 9,687 | 13,765 |
Inventory reserves | 1,859 | 2,801 |
Research and development credits | 41 | 41 |
Deferred capitalized contract costs | 1,800 | 0 |
Property and equipment | 1,888 | 2 |
Valuation allowance | (740,397) | (664,191) |
Total | 361,100 | 352,887 |
Gross deferred tax liabilities: | ||
Deferred capitalized contract costs | (346,887) | (338,141) |
Right of use assets | (11,430) | (13,119) |
Purchased intangibles and deferred financing costs | (959) | (2,092) |
Property and equipment | (443) | (1,703) |
Total | (359,719) | (355,055) |
Net deferred tax assets (liabilities) | $ (2,168) | |
Net deferred tax assets (liabilities) | $ 1,381 |
Income Taxes - Summary of Net O
Income Taxes - Summary of Net Operating Loss Carryforwards (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carry forwards | $ 4,265,000 | $ 4,290,585 |
Internal Revenue Service (IRS) | Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carry forwards | 2,229,000 | 2,294,340 |
Internal Revenue Service (IRS) | States | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carry forwards | $ 2,036,000 | $ 1,996,245 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Income Taxes And Tax Related [Line Items] | ||
Net operating loss carry forwards | $ 4,265,000,000 | $ 4,290,585,000 |
Valuation allowance | 740,397,000 | 664,191,000 |
Uncertain tax positions | 0 | |
Federal | ||
Income Taxes And Tax Related [Line Items] | ||
Research and development credits | 41,000 | $ 41,000 |
Canada | Canada Revenue Agency | ||
Income Taxes And Tax Related [Line Items] | ||
Net operating loss carry forwards | $ 0 |
Stock-Based Compensation and _3
Stock-Based Compensation and Equity - Additional Information (Detail) | Jan. 17, 2020shares | Jun. 30, 2018 | Mar. 31, 2021USD ($)shares | Dec. 31, 2021USD ($)anniversaryshares$ / shares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)shares | Jul. 01, 2021$ / shares | Jan. 07, 2021$ / shares | Nov. 30, 2020$ / shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Unrecognized stock compensation expense | $ | $ 19,600,000 | ||||||||
Share-based compensation expense | $ | $ 37,200,000 | $ 166,428,000 | $ 198,213,000 | $ 4,241,000 | |||||
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) | 208,734,193 | 202,216,341 | |||||||
Common stock, outstanding (in shares) | 154,730,618 | 208,734,193 | 202,216,341 | ||||||
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) | 0 | ||||||||
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 | ||||||||
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 | ||||||||
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 | ||||||||
Proceeds from warrant exercises | $ | $ 10,819,000 | $ 120,802,000 | 0 | ||||||
Capital contributions from parent | $ | $ 0 | $ 0 | 4,700,000 | ||||||
Capital contribution returned to parent | $ | (4,800,000) | ||||||||
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 | ||||||||
Expiration term (in years) | 5 years | ||||||||
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) | 208,734,193 | ||||||||
Common stock, outstanding (in shares) | 208,734,193 | ||||||||
Warrants exercised (in shares) | 825,016 | 10,504,533 | |||||||
Selling expenses | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based compensation expense | $ | $ 103,239,000 | $ 101,623,000 | 508,000 | ||||||
Operating expenses | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based compensation expense | $ | $ 16,567,000 | $ 20,157,000 | $ 320,000 | ||||||
Rollover LTIPs | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
LTIP, strike price (in dollars per share) | $ / shares | $ 7.22 | ||||||||
Shares issued (shares) | 1,609,627 | ||||||||
Share price (in dollars per share) | $ / shares | $ 23.08 | ||||||||
Rollover LTIPs | Selling expenses | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based compensation expense | $ | $ 32,700,000 | ||||||||
Rollover LTIPs | Operating expenses | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based compensation expense | $ | $ 4,500,000 | ||||||||
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% | ||||||||
Tracking Units | Holdback Executives | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Unrecognized stock compensation expense | $ | $ 1,200,000 | ||||||||
Unrecognized stock compensation, recognition period | 1 year 4 months 24 days | ||||||||
Shares outstanding (in shares) | 1,121,681 | ||||||||
Award vesting period | 5 years | ||||||||
Tracking Units | Time-based Vesting | Holdback Executives | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vested (shares) | 560,841 | ||||||||
Rollover SARs | Vivint | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Unrecognized stock compensation expense | $ | $ 0 | ||||||||
Vested (shares) | 0 | ||||||||
Shares outstanding (in shares) | 2,004,712 | 2,474,011 | 3,603,537 | ||||||
Earnout Shares | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Unrecognized stock compensation, recognition period | 1 year 6 months | ||||||||
Granted (shares) | 847,141 | ||||||||
Vested (shares) | 1,235,897 | ||||||||
Shares outstanding (in shares) | 24,060 | 412,816 | |||||||
Weighted average grant date fair value of the outstanding units (in dollars per share) | $ / shares | $ 21.98 | $ 21.98 | |||||||
Restricted Stock Units (RSUs) | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Granted (shares) | 5,865,475 | ||||||||
Vested (shares) | 2,162,984 | ||||||||
Shares outstanding (in shares) | 9,570,667 | 8,640,418 | |||||||
Restricted Stock Units (RSUs) | 2020 Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of vesting installments | anniversary | 4 | ||||||||
Unrecognized stock compensation expense | $ | $ 114,800,000 | ||||||||
Unrecognized stock compensation, recognition period | 2 years 9 months 18 days | ||||||||
Share based compensation, award vesting rights, annual vesting percentage | 25.00% | ||||||||
Award vesting period | 4 years | ||||||||
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] | |||||||||
Unrecognized stock compensation expense | $ | $ 61,700,000 | ||||||||
Unrecognized stock compensation, recognition period | 1 year 9 months 18 days | ||||||||
Share based compensation, award vesting rights, annual vesting percentage | 25.00% | ||||||||
Granted (shares) | 5,993,063 | ||||||||
Vested (shares) | 2,348,957 | ||||||||
Shares outstanding (in shares) | 9,643,666 | 4,877,277 | |||||||
Number of shares each equity instrument has the right to receive | 1 |
Stock-Based Compensation and _4
Stock-Based Compensation and Equity - Restricted Stock and Earnout Share Activity (Details) - Earnout Shares | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Shares | |
Outstanding, Beginning Balance (shares) | shares | 412,816 |
Granted (shares) | shares | 847,141 |
Vested (shares) | shares | (1,235,897) |
Outstanding, Ending Balance (shares) | shares | 24,060 |
Weighted Average Grant-Date Fair Value per Share | |
Weighted average grant-date fair value per share, outstanding, beginning balance (in dollars per share) | $ / shares | $ 21.98 |
Granted (in USD per share) | $ / shares | 23.08 |
Vested (in USD per share) | $ / shares | 22.73 |
Weighted average grant-date fair value per share, outstanding, ending balance (in dollars per share) | $ / shares | $ 21.98 |
Stock-Based Compensation and _5
Stock-Based Compensation and Equity - Summary of the SARs Activity (Detail) - Vivint - Rollover SARs - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Rollover SARs | |||
Outstanding, Beginning Balance (shares) | 2,474,011 | 3,603,537 | |
Forfeited (shares) | (409,566) | (1,055,978) | |
Exercised (shares) | (59,733) | (73,548) | |
Outstanding, Ending Balance (shares) | 2,004,712 | 2,474,011 | 3,603,537 |
Unvested Rollover SARs expected to vest (shares) | 0 | ||
Exercisable (shares) | 2,004,712 | ||
Weighted Average Grant-Date Fair Value per Share | |||
Weighted average exercise price per share, outstanding, beginning balance (in dollars per share) | $ 17.59 | $ 18.17 | |
Weighted average exercise price per share, forfeited (in dollars per share) | 18.50 | 18.03 | |
Weighted average exercise price per share, exercised (in dollars per share) | 9.32 | 12.35 | |
Weighted average exercise price per share, outstanding, ending balance (in dollars per share) | 17.65 | $ 17.59 | $ 18.17 |
Weighted average exercise price per share, unvested shares expected to vest (in dollars per share) | 0 | ||
Weighted average exercise price per share, Exercisable (in dollars per share) | $ 17.65 | ||
Outstanding, weighted average remaining contractual life | 5 years 7 months 13 days | 6 years 7 months 6 days | 7 years 10 months 9 days |
Exercisable at end of period, weighted average remaining contractual life | 5 years 7 months 13 days | ||
Outstanding, aggregate intrinsic value | $ 0 | $ 7.8 | $ 0.9 |
Unvested shares expected to vest, aggregate intrinsic value | $ 0 | ||
Exercisable, aggregate intrinsic value | $ 0 |
Stock-Based Compensation and _6
Stock-Based Compensation and Equity - Summary of Incentive Unit Activity (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Restricted Stock Units (RSUs) | ||
Shares | ||
Shares outstanding (in shares) | 9,570,667 | 8,640,418 |
Modified (in shares) | 1,842,146 | |
Granted (shares) | 5,865,475 | |
Vested (in shares) | 2,162,984 | |
Forfeited (shares) | (930,096) | |
Weighted Average Grant-Date Fair Value per Share | ||
Weighted average exercise price per share, outstanding, beginning balance (in dollars per share) | $ 22.76 | |
Weighted average exercise price per share, modified (in dollars per share) | 22.86 | |
Weighted average exercise price per share, granted (in dollars per share) | 13.33 | |
Weighted average exercise price per share, vested (in dollars per share) | 22.62 | |
Weighted average exercise price per share, forfeited (in dollars per share) | 20.43 | |
Weighted average exercise price per share, outstanding, ending balance (in dollars per share) | $ 16.12 | $ 22.76 |
PSUs | ||
Shares | ||
Shares outstanding (in shares) | 9,643,666 | 4,877,277 |
Modified (in shares) | 1,842,146 | |
Granted (shares) | 5,993,063 | |
Vested (in shares) | 2,348,957 | |
Forfeited (shares) | (719,863) | |
Weighted Average Grant-Date Fair Value per Share | ||
Weighted average exercise price per share, outstanding, beginning balance (in dollars per share) | $ 22.67 | |
Weighted average exercise price per share, modified (in dollars per share) | 22.86 | |
Weighted average exercise price per share, granted (in dollars per share) | 15.72 | |
Weighted average exercise price per share, vested (in dollars per share) | 22.83 | |
Weighted average exercise price per share, forfeited (in dollars per share) | 19.12 | |
Weighted average exercise price per share, outstanding, ending balance (in dollars per share) | $ 17.23 | $ 22.67 |
Stock-Based Compensation and _7
Stock-Based Compensation and Equity - Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | $ 37,200 | $ 166,428 | $ 198,213 | $ 4,241 |
Operating expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | 16,567 | 20,157 | 320 | |
Selling expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | 103,239 | 101,623 | 508 | |
General and administrative expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | $ 46,622 | $ 76,433 | $ 3,413 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | May 03, 2021 | Jan. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Loss Contingencies [Line Items] | ||||
Loss contingency accrual | $ 8.2 | $ 26.2 | ||
DOJ FIRREA Investigation | ||||
Loss Contingencies [Line Items] | ||||
Payment for legal settlement | $ 3.2 | |||
FTC Investigation | ||||
Loss Contingencies [Line Items] | ||||
Payment for legal settlement | $ 20 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
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 | $ 15,689 | $ 16,784 |
Finance lease cost: | ||
Amortization of right-of-use assets | 2,375 | 5,090 |
Interest on lease liabilities | 264 | 453 |
Total finance lease cost | $ 2,639 | $ 5,543 |
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 | 7 years |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ (16,877) | $ (17,635) | |
Operating cash flows from finance leases | (264) | (453) | |
Financing cash flows from finance leases | (3,158) | (7,657) | $ (9,781) |
Right-of-use assets obtained in exchange for lease obligations: | |||
Operating leases | 4,490 | 3,420 | |
Finance leases | $ 1,808 | $ 1,228 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Leases | ||
Operating lease right-of-use assets | $ 46,000 | $ 52,880 |
Current operating lease liabilities | 12,033 | 12,135 |
Operating lease liabilities | 41,713 | 49,692 |
Total operating lease liabilities | 53,746 | 61,827 |
Finance Leases | ||
Property, plant and equipment, gross | 40,939 | 40,571 |
Accumulated depreciation | (24,465) | (22,976) |
Property, plant and equipment, net | 16,474 | 17,595 |
Current finance lease liabilities | 2,854 | 3,356 |
Finance lease liabilities | 1,416 | 2,460 |
Total finance lease liabilities | $ 4,270 | $ 5,816 |
Weighted Average Remaining Lease Term | ||
Operating leases | 5 years | 5 years |
Finance leases | 2 years 8 months 12 days | 1 year 7 months 6 days |
Weighted Average Discount Rate | ||
Operating leases | 7.00% | 7.00% |
Finance leases | 4.00% | 4.00% |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, plant and equipment, net | Property, plant and equipment, net |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Leases | ||
2022 | $ 15,858 | |
2023 | 15,199 | |
2024 | 14,392 | |
2025 | 8,764 | |
2026 | 5,008 | |
Thereafter | 4,494 | |
Total lease payments | 63,715 | |
Less imputed interest | (9,969) | |
Total | 53,746 | $ 61,827 |
Finance Leases | ||
2022 | 3,025 | |
2023 | 847 | |
2024 | 514 | |
2025 | 0 | |
2026 | 0 | |
Thereafter | 0 | |
Total lease payments | 4,386 | |
Less imputed interest | (116) | |
Total | $ 4,270 | $ 5,816 |
Related Party Transactions (Det
Related Party Transactions (Detail) - USD ($) | Mar. 03, 2020 | Jul. 31, 2019 | Sep. 30, 2018 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jul. 31, 2021 | Feb. 29, 2020 | Jan. 17, 2020 |
Related Party Transaction [Line Items] | |||||||||
Additional expenses incurred for other related-party transactions | $ 900,000 | $ 600,000 | $ 2,500,000 | ||||||
Accrued expenses and other current liabilities | 236,250,000 | 247,324,000 | |||||||
Monitoring fees | 700,000 | 8,100,000 | |||||||
Face Value | 2,712,345,000 | 2,825,600,000 | |||||||
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 | ||||||||
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% | ||||||||
Solar | Affiliated Entity | |||||||||
Related Party Transaction [Line Items] | |||||||||
Sublease and other administrative expenses | 3,300,000 | 9,200,000 | |||||||
Vivint Gives Back | |||||||||
Related Party Transaction [Line Items] | |||||||||
Accrued expenses and other current liabilities | 100,000 | 100,000 | |||||||
Wireless | Affiliated Entity | |||||||||
Related Party Transaction [Line Items] | |||||||||
Due from related party | 0 | 0 | |||||||
Transactions associated with spin-off services | 0 | 1,300,000 | 1,300,000 | ||||||
Due to related parties | 0 | 0 | |||||||
Blackstone Management Partners L.L.C. | Affiliated Entity | |||||||||
Related Party Transaction [Line Items] | |||||||||
Prepaid expenses and other current assets | 5,700,000 | 8,100,000 | 5,600,000 | ||||||
Blackstone Management Partners L.L.C. | Affiliated Entity | Minimum | |||||||||
Related Party Transaction [Line Items] | |||||||||
Annual monitoring base fee, minimum | 2,700,000 | ||||||||
Blackstone Management Partners L.L.C. | Blackstone Management Partners LLC Support And Services Agreement | 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 | ||||||||
Blackstone Advisory Partners L.P. | Senior Notes | Affiliated Entity | 2029 Notes | |||||||||
Related Party Transaction [Line Items] | |||||||||
Deferred financing cost, net | 3,000,000 | ||||||||
Face Value | 18,500,000 | ||||||||
Blackstone Advisory Partners L.P. | Term Loan | Affiliated Entity | |||||||||
Related Party Transaction [Line Items] | |||||||||
Deferred financing cost, net | $ 1,300,000 | ||||||||
Face Value | 201,200,000 | 166,100,000 | |||||||
Fortress Investment Group | Senior Notes | Affiliated Entity | 2023 Notes | |||||||||
Related Party Transaction [Line Items] | |||||||||
Face Value | 72,500,000 | ||||||||
Fortress Investment Group | Senior Notes | Affiliated Entity | 2024 Notes | |||||||||
Related Party Transaction [Line Items] | |||||||||
Face Value | 19,900,000 | ||||||||
Fortress Investment Group | Senior Notes | Affiliated Entity | 2027 Notes | |||||||||
Related Party Transaction [Line Items] | |||||||||
Face Value | 11,700,000 | 11,700,000 | |||||||
Fortress Investment Group | Term Loan | Affiliated Entity | |||||||||
Related Party Transaction [Line Items] | |||||||||
Face Value | $ 119,700,000 | $ 173,700,000 | |||||||
Fortress Investment Group | Term Loan | Affiliated Entity | 6.750% Senior Secured Noes Due 2027 | |||||||||
Related Party Transaction [Line Items] | |||||||||
Deferred financing cost, net | $ 900,000 | ||||||||
Fortress Investment Group | Term Loan | Affiliated Entity | 2029 Notes | |||||||||
Related Party Transaction [Line Items] | |||||||||
Deferred financing cost, net | $ 800,000 | ||||||||
Vivint Smart Home, Inc. | Affiliated Entity | |||||||||
Related Party Transaction [Line Items] | |||||||||
Proceeds from contributed capital | $ 4,700,000 | $ 4,700,000 |
Segment Reporting and Busines_3
Segment Reporting and Business Concentrations - (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)CountrySegment | Dec. 31, 2020USD ($)CountrySegment | Dec. 31, 2019USD ($)CountrySegment | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | Segment | 1 | 1 | 1 |
Number of geographic regions | Country | 2 | 2 | 2 |
Revenues | $ 1,479,388 | $ 1,252,267 | $ 1,151,100 |
United States | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,418,700 | 1,186,218 | 1,079,246 |
Canada | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 60,688 | $ 66,049 | $ 71,854 |
Employee Benefit Plan (Detail)
Employee Benefit Plan (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Postemployment Benefits [Abstract] | |||
Employer matching contribution, percent of employees' gross pay | 3.00% | ||
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 | 2.00% | ||
Maximum annual contributions per employee, percent | 4.00% | ||
Matching contributions to the plan | $ 10,300,000 | $ 4,300,000 | $ 6,500,000 |
Basic and Diluted Net Loss Pe_3
Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator: | |||
Net loss attributable to common stockholders | $ (305,552) | $ (603,331) | $ (400,696) |
Gain on change in fair value of warrants, diluted | (50,967) | 0 | 0 |
Net loss attributable to common stockholders, diluted (in thousands) | $ (356,519) | $ (603,331) | $ (400,696) |
Denominator: | |||
Shares used in computing net loss attributable per share to common stockholders, basic (in shares) | 208,265,631 | 179,071,278 | 94,805,201 |
Weighted-average effect of potentially dilutive shares to purchase common stock (in shares) | 812,536 | 0 | 0 |
Weighted Average Number of Shares Outstanding, Diluted, Total | 209,078,167 | 179,071,278 | 94,805,201 |
Net loss attributable per share to common stockholders: | |||
Basic (in dollars per share) | $ (1.47) | $ (3.37) | $ (4.23) |
Diluted (in dollars per share) | $ (1.71) | $ (3.37) | $ (4.23) |
Basic and Diluted Net Loss Pe_4
Basic and Diluted Net Loss Per Share - Schedule of Potentially Antidilutive Securities (Details) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
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) | 2,004,712 | 2,474,011 | 3,603,537 |
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) | 0 | 2,316,869 | 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) | 9,570,667 | 8,692,347 | 51,929 |
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) | 9,643,666 | 4,877,277 | 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) | 0 | 878,346 | 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) | 0 | 5,933,334 | 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) | 24,060 | 1,260,281 | 0 |