Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 16, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Entity Registrant Name | XPERI INC. | ||
Trading Symbol | XPER | ||
Entity Central Index Key | 0001788999 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Document Financial Statement Error Correction [Flag] | true | ||
Document Financial Statement Restatement Recovery Analysis [Flag] | false | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 44,271,263 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 403.1 | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Entity File Number | 001-41486 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 83-4470363 | ||
Entity Address, Address Line One | 2190 Gold Street | ||
Entity Address, City or Town | San Jose | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 95002 | ||
City Area Code | 408 | ||
Local Phone Number | 519-9100 | ||
Document Annual Report | true | ||
ICFR Auditor Attestation Flag | true | ||
Document Transition Report | false | ||
Security12b Title | Common Stock, par value $0.001 per share | ||
Security Exchange Name | NYSE | ||
Auditor Name | PricewaterhouseCoopers LLP | ||
Auditor Location | San Jose, California, USA | ||
Auditor Firm ID | 238 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE: Portions of the registrant’s Proxy Statement for the registrant’s 2024 Annual Meeting of Stockholders will be filed with the Commission within 120 days after the close of the registrant’s 2023 fiscal year and are incorporated by reference in Part III of this Annual Report on Form 10-K to the extent stated herein. |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Revenue | $ 521,334 | $ 502,260 | $ 486,483 |
Operating expenses: | |||
Cost of revenue, excluding depreciation and amortization of intangible assets | 118,628 | 122,946 | 125,626 |
Research and development | 222,833 | 216,355 | 194,869 |
Selling, general and administrative | 233,403 | 217,402 | 199,921 |
Depreciation expense | 16,645 | 20,501 | 22,584 |
Amortization expense | 57,752 | 62,209 | 105,311 |
Goodwill impairment | 604,555 | ||
Impairment of long-lived assets | 1,710 | 7,724 | |
Total operating expenses | 650,971 | 1,251,692 | 648,311 |
Operating loss | (129,637) | (749,432) | (161,828) |
Other (expense) income, net | (9) | 1,815 | 1,590 |
Loss before taxes | (129,646) | (747,617) | (160,238) |
Provision for income taxes | 10,042 | 13,589 | 18,840 |
Net loss | (139,688) | (761,206) | (179,078) |
Less: net loss attributable to noncontrolling interest | (3,075) | (3,722) | (3,456) |
Net loss attributable to the Company | $ (136,613) | $ (757,484) | $ (175,622) |
Loss per share attributable to the Company: | |||
Basic loss per share | $ (3.18) | $ (18.02) | $ (4.18) |
Diluted loss per share | $ (3.18) | $ (18.02) | $ (4.18) |
Weighted-average number of shares used in net loss per share calculations - basic | 43,012 | 42,029 | 42,024 |
Weighted-average number of shares used in net loss per share calculations - diluted | 43,012 | 42,029 | 42,024 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (139,688) | $ (761,206) | $ (179,078) |
Other comprehensive loss: | |||
Change in foreign currency translation adjustment | 126 | (3,349) | (1,987) |
Unrealized gain (loss) on cash flow hedges | 1,128 | (94) | |
Comprehensive loss | (138,434) | (764,649) | (181,065) |
Less: comprehensive loss attributable to noncontrolling interest | (3,075) | (3,722) | (3,456) |
Comprehensive loss attributable to the Company | $ (135,359) | $ (760,927) | $ (177,609) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Current assets: | |||
Cash and cash equivalents | $ 142,085 | $ 160,127 | |
Accounts receivable, net | 55,984 | 64,712 | |
Unbilled contracts receivable, net | 64,114 | 65,251 | |
Prepaid expenses and other current assets | 38,874 | 42,174 | |
Assets held for sale | 15,860 | ||
Total current assets | 316,917 | 332,264 | |
Unbilled contracts receivable, noncurrent | 18,231 | 4,289 | |
Property and equipment, net | 41,569 | 47,827 | |
Operating lease right-of-use assets | 39,900 | 52,901 | |
Intangible assets, net | 206,895 | 264,376 | |
Deferred tax assets | 5,093 | 2,096 | |
Other noncurrent assets | 32,781 | 33,158 | |
Assets held for sale, noncurrent | 12,249 | ||
Total assets | 673,635 | 736,911 | |
Current liabilities: | |||
Accounts payable | 20,849 | 14,864 | |
Accrued liabilities | 109,961 | 110,014 | |
Deferred revenue | 28,111 | 25,363 | |
Liabilities held for sale | 6,191 | ||
Total current liabilities | 165,112 | 150,241 | |
Long-term debt | 50,000 | 50,000 | |
Deferred revenue, noncurrent | 19,425 | 19,129 | |
Operating lease liabilities, noncurrent | 30,598 | [1] | 42,666 |
Deferred tax liabilities | 6,983 | 12,899 | |
Other noncurrent liabilities | 4,577 | 12,990 | |
Liabilities held for sale, noncurrent | 9,805 | ||
Total liabilities | 286,500 | 287,925 | |
Commitments and contingencies (Note 11) | |||
Equity: | |||
Preferred stock: $0.001 par value; 6,000 shares authorized as of December 31, 2023 and 2022; no shares issued and outstanding as of December 31, 2023 and 2022 | |||
Common stock: $0.001 par value; 140,000 shares authorized as of December 31, 2023 and 2022; 44,211 and 42,066 shares issued and outstanding as of December 31, 2023 and 2022, respectively | 44 | 42 | |
Additional paid-in capital | 1,212,501 | 1,136,330 | |
Accumulated other comprehensive loss | (2,865) | (4,119) | |
Accumulated deficit | (805,448) | (668,835) | |
Total Company stockholders' equity | 404,232 | 463,418 | |
Noncontrolling interest | (17,097) | (14,432) | |
Total equity | 387,135 | 448,986 | |
Total liabilities and equity | $ 673,635 | $ 736,911 | |
[1] Future minimum lease payments exclude short-term leases as well as payments to landlords for variable common area maintenance, insurance and real estate taxes. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 6,000,000 | 6,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 140,000,000 | 140,000,000 |
Common stock, shares issued (in shares) | 44,211,000 | 42,066,000 |
Common stock, shares outstanding (in shares) | 44,211,000 | 42,066,000 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net loss | $ (139,688) | $ (761,206) | $ (179,078) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation of property and equipment | 16,645 | 20,501 | 22,584 |
Amortization of intangible assets | 57,752 | 62,209 | 105,311 |
Stock-based compensation | 69,531 | 45,303 | 33,509 |
Goodwill impairment | 604,555 | ||
Impairment of long-lived assets | 1,710 | 7,724 | |
Deferred income taxes | (8,596) | (9,261) | 6,913 |
Other | 748 | 24 | (1,754) |
Changes in operating assets and liabilities: | |||
Accounts receivable | 5,721 | 17,505 | (2,416) |
Unbilled contracts receivable | (19,386) | (12,473) | 15,475 |
Prepaid expenses and other assets | 2,696 | (20,439) | 15,296 |
Accounts payable | 5,071 | 6,633 | (4,018) |
Accrued and other liabilities | 3,688 | 18,782 | (37,249) |
Deferred revenue | 4,170 | (8,302) | 1,974 |
Net cash provided by (used in) operating activities | 62 | (28,445) | (23,453) |
Cash flows from investing activities: | |||
Net cash paid for mergers and acquisitions | (50,473) | (12,401) | |
Purchases of property and equipment | (12,748) | (14,207) | (8,893) |
Purchases of intangible assets | (185) | (166) | (186) |
Net cash used in investing activities | (12,933) | (64,846) | (21,480) |
Cash flows from financing activities: | |||
Net proceeds from capital contributions by Former Parent | 83,235 | ||
Net transfer from Former Parent | 52,802 | 83,330 | |
Proceeds from issuance of common stock under employee stock purchase plan | 11,927 | ||
Withholding taxes related to net share settlement of equity awards | (4,875) | (286) | |
Net cash provided by financing activities | 7,052 | 135,751 | 83,330 |
Effect of exchange rate changes on cash and cash equivalents | 126 | (3,028) | (3,326) |
Net (decrease) increase in cash and cash equivalents | (5,693) | 39,432 | 35,071 |
Cash and cash equivalents at beginning of period | 160,127 | 120,695 | 85,624 |
Cash, cash equivalents and cash classified held-for-sale at end of period | 154,434 | 160,127 | 120,695 |
Reconciliation of cash, cash equivalents and cash classified as held-for-sale to consolidated balance sheets: | |||
Cash and cash equivalents | 142,085 | 160,127 | 120,695 |
Cash and cash equivalents classified as held-for-sale, current (Note 7) | 12,349 | ||
Total cash, cash equivalents and cash classified as held-for-sale in consolidated balance sheets | 154,434 | 160,127 | 120,695 |
Supplemental disclosure of cash flow information: | |||
Debt issued in connection with acquisition | 50,000 | ||
Income taxes paid, net of refunds | 21,333 | 13,416 | $ 11,801 |
Interest paid | $ 3,000 | $ 756 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Net Investment by Former Parent | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Noncontrolling Interest |
Beginning balance at Dec. 31, 2020 | $ 1,080,183 | $ 1,084,630 | $ 1,311 | $ (5,758) | |||
Net transfers from Former Parent | 116,830 | 116,830 | |||||
Issuance of equity to noncontrolling interest | 9 | 9 | |||||
Foreign currency translation adjustment | (1,987) | (1,987) | |||||
Net loss | (179,078) | (175,622) | (3,456) | ||||
Ending balance at Dec. 31, 2021 | 1,015,957 | 1,025,838 | (676) | (9,205) | |||
Net transfers from Former Parent | 100,915 | 100,915 | |||||
Issuance of common stock and reclassification of net transfers from Former Parent (in shares) | 42,024,000 | ||||||
Issuance of common stock and reclassification of net transfers from Former Parent | $ 42 | $ 1,038,062 | (1,038,104) | ||||
Net capital contribution from and tax settlement with Former Parent | 82,931 | 82,931 | |||||
Change in ownership interest of the Company | (1,423) | 82 | (1,505) | ||||
Vesting of restricted stock units, net of tax withholding | (286) | (286) | |||||
Vesting of restricted stock units, net of tax withholding (in shares) | 42,000 | ||||||
Stock-based compensation | 15,541 | 15,541 | |||||
Foreign currency translation adjustment | (3,349) | (3,349) | |||||
Unrealized gain (loss) on cash flow hedges | (94) | (94) | |||||
Net loss | (761,206) | $ (88,649) | $ (668,835) | (3,722) | |||
Ending balance at Dec. 31, 2022 | 448,986 | $ 42 | 1,136,330 | (4,119) | (668,835) | (14,432) | |
Ending balance (in shares) at Dec. 31, 2022 | 42,066,000 | ||||||
Change in ownership interest of the Company | (410) | 410 | |||||
Vesting of restricted stock units, net of tax withholding | (4,875) | (4,875) | |||||
Vesting of restricted stock units, net of tax withholding (in shares) | 808,000 | ||||||
Issuance of common stock under employee stock purchase plan (in shares) | 1,337,000 | ||||||
Issuance of common stock under employee stock purchase plan | 11,927 | $ 2 | 11,925 | ||||
Stock-based compensation | 69,531 | 69,531 | |||||
Foreign currency translation adjustment | 126 | 126 | |||||
Unrealized gain (loss) on cash flow hedges | 1,128 | 1,128 | |||||
Net loss | (139,688) | (136,613) | (3,075) | ||||
Ending balance at Dec. 31, 2023 | $ 387,135 | $ 44 | $ 1,212,501 | $ (2,865) | $ (805,448) | $ (17,097) | |
Ending balance (in shares) at Dec. 31, 2023 | 44,211,000 |
The Company and Description of
The Company and Description of Business | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company and Description of Business | NOTE 1 – THE COMPANY AND DESCRIPTION OF BUSINESS Xperi is a leading consumer and entertainment technology company. The Company creates extraordinary experiences at home and on the go for millions of consumers around the world, enabling audiences to connect with content in a way that is more intelligent, immersive, and personal. Powering smart devices, connected cars, entertainment experiences and more, the Company brings together ecosystems designed to reach highly engaged consumers, allowing it and its ecosystem partners to uncover significant new business opportunities, now and in the future. The Company’s technologies are integrated into consumer devices and a variety of media platforms worldwide, driving increased value for its partners, customers, and consumers. The Company operates in one reportable business segment and groups its business into four categories: Pay-TV, Consumer Electronics, Connected Car and Media Platform. Xperi Spin-Off In June 2020, Xperi Holding Corporation (“Xperi Holding,” “Adeia,” or the “Former Parent”) announced plans to separate into two independent publicly traded companies (the “Separation”), one comprising its intellectual property (“IP”) licensing business and one comprising its product business (“Xperi Product”). On October 1, 2022 (the “Separation Date”), the Former Parent completed the Separation (the “Spin-Off”) through a pro-rata distribution (the “Distribution”) of all the outstanding common stock of its product-related business (formerly known as Xperi Product, and hereinafter “Xperi Inc.”, “Xperi” or the “Company”) to the stockholders of record of the Former Parent as of the close of business on September 21, 2022 , the record date (the “Record Date”) for the Distribution. Each Xperi Holding stockholder of record received four shares of Xperi common stock, $ 0.001 par value, for every ten shares of Xperi Holding common stock, $ 0.001 par value, held by such stockholder as of the close of business on the Record Date. As a result of the Distribution, Xperi became an independent, publicly traded company and its common stock is listed under the symbol “XPER” on the New York Stock Exchange. In connection with the Separation and the Distribution, Xperi Holding was renamed and continues as Adeia Inc. and also changed its stock symbol to “ADEA” on the Nasdaq Global Select Market. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Bas is of Presentation The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States (“U.S.”) and the applicable rules and regulations of the Securities and Exchange Commission (the “SEC”). The Company’s fiscal year ends on December 31. The Company employs a calendar month-end reporting period for its quarterly reporting. During the three months ended September 30, 2022, all of the assets and liabilities of the Xperi Product business had been transferred to a legal entity (the “Transfer”) under the common control of Xperi. Subsequent to this transfer and through December 31, 2022, the Company's financial statements and accompanying notes are prepared on a consolidated basis and include Xperi and its subsidiaries in which Xperi has a controlling financial interest. All intercompany balances and transactions are eliminated in consolidation. Prior to the Transfer, the financial statements and accompanying notes of the Xperi Product business were prepared on a combined basis and were derived from the consolidated financial statements and accounting records of the Former Parent as the Company was not historically held by a single legal entity. Net investment by Former Parent, which represents the Former Parent’s total net interest in the recorded net assets of the Company prior to the transfer, is presented within equity on a combined basis in lieu of share capital. All intercompany balances and transactions within the combined businesses of the Company have been eliminated. The Consolidated Balance Sheets of Xperi and its subsidiaries for the pre-Transfer periods include Former Parent’s assets and liabilities that are specifically identifiable or otherwise attributable to the Company. In the fourth quarter of 2018, the Company funded a new subsidiary, Perceive Corporation (“Perceive”), which was created to focus on delivering edge inference solutions. As of December 31, 2023, the Company owned approximately 77.6 % of the outstanding equity interest of Perceive. The operating results of Perceive have been included in the Company’s consolidated financial statements since the fourth quarter of 2018. Prior to the Separation, the Company was dependent on the Former Parent for all of its working capital and financing requirements as the Former Parent used a centralized approach to cash management and financing its operations. Financial transactions relating to the Company were accounted for as equity contributions from the Former Parent on the Consolidated Balance Sheets. Accordingly, none of the Former Parent’s cash and cash equivalents were allocated to the Company for any of the periods presented, unless those balances were directly attributable to the Company. The Company reflects transfers of cash to and from the Former Parent’s cash management system within equity as a component of Net investment by Former Parent on a combined basis and as a component of net capital contribution from Former Parent on a consolidated basis. Other than the debt incurred in connection with the acquisition of Vewd Software Holdings Limited (“Vewd”) discussed in Note 7, the Former Parent’s long-term debt has not been attributed to the Company for any of the periods presented because the Former Parent’s borrowings are not the legal obligation of the Company. Prior to the Separation, the Consolidated Statements of Operations and Comprehensive Loss of the Company reflect allocations of general corporate expenses from the Former Parent, including, but not limited to, executive management, sales and marketing, finance, legal, information technology, employee benefits administration, stock-based compensation, treasury, risk management, procurement, and other shared services. These allocations were made on a direct usage basis when identifiable, with the remainder allocated on a pro rata basis of billing, revenue, headcount, or other measures as deemed appropriate. Management of the Company and Former Parent consider these allocations to be a reasonable reflection of the utilization of services by, or the benefits provided to, the Company. The allocations may not, however, reflect the expenses the Company would have incurred as a standalone company for the periods presented. Actual costs that may have been incurred if the Company had been a standalone company would depend on a number of factors, such as the chosen organizational structure, whether functions were outsourced or performed by employees and decisions with respect to areas such as facilities, information technology and operating infrastructure. During the periods prior to the Separation that are presented in the accompanying Consolidated Financial Statements, the Company’s income tax expense (benefit) and deferred tax balances were included in the Former Parent’s income tax returns. Income tax expense (benefit) and deferred tax balances contained in these Consolidated Financial Statements for periods prior to the Separation are presented on a separate return basis, as if the Company had filed its own income tax returns. As a result, actual tax transactions included in the consolidated financial statements of the Former Parent may or may not be included in the Consolidated Financial Statements of the Company. Similarly, the tax treatment of certain items reflected in the Consolidated Financial Statements of the Company may or may not be reflected in the consolidated financial statements and income tax returns of the Former Parent. The taxes recorded in the Consolidated Statements of Operations for periods prior to the Separation Date are not necessarily representative of the taxes that arose when the Company filed its income tax returns independent from the Former Parent’s returns for the tax year ended December 31, 2022. The income tax expense (benefit) recorded for the three months ended December 31, 2022 is presented as if activity from this period would have been included in the same separate return as the nine months of activity through the Separation Date. Deferred tax balances for the period ended December 31, 2022 are presented for the standalone Company. In the Consolidated Balance Sheet as of December 31, 2022 included in this Form 10-K filing, the Company has revised the long-term deferred tax liabilities and other long-term liabilities line items to correct an immaterial error in the classification of unrecognized tax benefits. The adjustment results in a $ 7.7 million decrease of long-term deferred tax liabilities and an increase in other long-term liabilities. The revision has no impact on total long-term liabilities as of December 31, 2022. In relation to this adjustment, the Company has also revised its Consolidated Statement of Cash Flows for the year ended December 31, 2022 to decrease deferred income tax and increase accrued and other liabilities within the changes in operating assets and liabilities section by $ 7.7 million, with no changes to net cash flows from operating activities for 2022. Further, the revision has no impact on the Company’s 2023 consolidated financial statements. Principles of Consolidation Subsequent to the Transfer during the third quarter of 2022 and through December 31, 2022, the Company’s financial statements were prepared on a consolidated basis and include the accounts of the Company and its wholly owned subsidiaries, as well as an entity in which the Company has a controlling financial interest. All intercompany accounts and transactions have been eliminated in consolidation. Prior to the Transfer and through the date in the third quarter of 2022 when all subsidiaries of Xperi Product were owned by the parent company of Xperi Product, the accompanying financial statements of Xperi Product business were prepared on a combined basis and were derived from the consolidated financial statements and accounting records of the Former Parent as the Company was not historically held by a single legal entity. Net investment by Former Parent, which represents the Former Parent’s total net interest in the recorded net assets of the Company prior to the Transfer and through the date when all subsidiaries of Xperi Product were owned by the parent company of Xperi Product, is presented within equity on a combined basis in lieu of share capital. All intercompany balances and transactions within the combined business of the Company have been eliminated. Foreign Currency Remeasurement and Transactions The functional currency of the Company’s foreign subsidiaries is the U.S. dollar. Accordingly, each foreign subsidiary remeasures monetary assets and liabilities at period-end exchange rates, while non-monetary items are remeasured at historical exchange rates. Revenues and expenses are remeasured at the exchange rates in effect on the day the transaction occurs, except for those expenses related to non-monetary assets and liabilities, which are remeasured at historical exchange rates. Remeasurement adjustments are recognized in other (expense) income, net in the Consolidated Statements of Operations. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The accounting estimates and assumptions that require management’s most significant, challenging, and subjective judgment include the estimation of licensees’ quarterly royalties prior to receiving the royalty reports, the determination of stand-alone selling price and the transaction price in an arrangement with multiple performance obligations, the assessment of the recoverability of goodwill, the assessment of useful lives and recoverability of other intangible assets and long-lived assets, recognition and measurement of current and deferred income tax assets and liabilities, the assessment of unrecognized tax benefits, and purchase accounting resulting from business combinations. Actual results experienced by the Company may differ from management’s estimates. Net Investment by Former Parent Net investment by Former Parent on the Consolidated Balance Sheets and Consolidated Statements of Equity represents the Former Parent’s historical investment in the Company, the net effect of transactions with and allocations from the Former Parent, and the Company’s accumulated deficit. Net Loss Per Share Net loss per share is computed by dividing net loss for the period by the weighted-average number of common shares outstanding during the period. For periods prior to the Separation, the calculations of basic and diluted loss per share were based on the number of shares outstanding on October 1, 2022, the Separation Date. In addition, it is assumed that there were no dilutive equity instruments as there were no Xperi stock-based awards outstanding prior to the Separation. Dilutive weighted-average common shares outstanding do not include unvested restricted stock units and stock options for the periods presented because the effect of their inclusion would have been anti-dilutive. Revenue Recognition Revenue is recognized when control of the promised goods or services is transferred to a customer in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services, which may include various combinations of goods and services which are generally capable of being distinct and accounted for as separate performance obligations. See Note 3 —Revenue for detailed discussion on revenue recognition and disaggregation of revenue. Segment Reporting Operating segments are defined as components of an enterprise for which separate financial information is available and that is evaluated on a regular basis by the chief operating decision-maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The CODM reviews financial information presented on a consolidated basis for the purposes of making operating decisions, allocating resources, and evaluating financial performance. As such, the Company has determined that it has one operating segment, which is also its reportable segment. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less at the date of purchase to be cash equivalents. There were no cash eq uivalents as of December 31, 2023 and 2022. Cash and cash equivalents are maintained with various financial institutions. Non-Marketable Equity Investments Investments in entities over which the Company has the ability to exercise significant influence, but does not hold a controlling interest, are accounted for using the equity method. Under the equity method, the Company records its proportionate share of income or loss in other income (expense), net, in the Consolidated Statements of Operations. Investments in entities over which the Company does not have the ability to exercise significant influence and which do not have readily determinable fair values, are initially recognized at cost and remeasured through earnings when there is an observable transaction involving the same or similar investment of the same issuer, or due to an impairment (referred to as the “measurement alternative”). The fair value of non-marketable equity investments is not estimated if there are no identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. The Company monitors its non-marketable securities portfolio for potential impairment. When there is evidence that the expected fair value of the investment has declined to below the recorded cost, the impairment loss is recorded in other (expense) income, net, in the Consolidated Statements of Operations. Fair Value of Financial Instruments Fair value is defined as 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. The carrying amount of cash equivalents, accounts receivable, accounts payable and accrued liabilities approximates fair value due to the short-term nature of these instrume nts. Long-term debt is carried at amortized cost and measured at fair value on a quarterly basis for disclosure purposes. Derivati ve Instruments The Company uses derivative financial instruments to manage foreign currency exchange rate risk. The Company does not enter into derivative transactions for trading purposes. The Company’s derivative financial instruments are recorded on the Consolidated Balance Sheets as assets or liabilities measured at fair value. For derivatives designated as a hedge, and effective as part of a hedge transaction, the effective portion of the gain or loss on the hedging derivative instrument is reported as a component of other comprehensive income (loss) and as a basis adjustment to the underlying hedged item and reclassified to earnings in the period in which the hedged item affects earnings. To the extent derivatives do not qualify or are not designated as hedges, or are ineffective, their changes in fair value are recorded in earnings immediately. Concentration of Credit and Other Risks Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. The Company maintains cash and cash equivalents with large financial institutions, and at times, the deposits may exceed the federally insured limits. As part of its risk management processes, the Company performs periodic evaluations of the relative credit standing of these financial institutions. The Company has not sustained material credit losses from instruments held at these financial institutions. In addition, the Company has cash and cash equivalents held in international bank accounts that are denominated in various foreign currencies and has established risk management strategies designed to minimize the impact of certain currency exchange rate fluctuations. The Company believes that any concentration of credit risk in its accounts receivable is substantially mitigated by its evaluation process, relatively short collection terms, and the high level of credit worthiness of its customers. The Company performs ongoing credit evaluations of its customers’ financial condition and limits the amount of credit extended when deemed necessary, but generally requires no collateral. There were no individually significant customers with revenue exceeding 10% of total revenue for the years ended December 31, 2023, 2022 and 2021. As of December 31, 2023 and 2022, no single customer represented 10 % or more of the Company’s net balance of accounts receivable. Accounts Receivable and Allowance for Credit Losses The timing of revenue recognition may differ from the timing of invoicing to customers. The Company records a receivable when revenue is recognized prior to cash collection. Payment terms and conditions vary by contract type, location of customer and the products or services offered, although terms generally require payment from a customer within 30 to 60 days. When the timing of revenue recognition differs from the timing of cash collection, an evaluation is performed to determine whether the contract includes a significant financing component. The allowance for credit losses, which includes the allowance for accounts receivable and unbilled contracts receivable, represents the Company’s best estimate of lifetime expected credit losses inherent in those financial assets. The Company’s lifetime expected credit losses are determined using relevant information about past events (including historical experience), current conditions, and reasonable and supportable forecasts that affect collectability. The Company monitors its credit exposure through ongoing credit evaluations of its customers’ financial condition and limits the amount of credit extended when deemed necessary. In addition, the Company performs routine credit management activities such as timely account reconciliations, dispute resolution, and payment confirmations. The Company may employ collection agencies and legal counsel to pursue recovery of defaulted receivables. Inventory Inventories consist primarily of TiVo Stream 4K, finished DVRs, non-DVRs and accessories and are stated at the lower of cost or net realizable value on an aggregate basis. Cost is computed using standard cost, which approximates actual cost on a first-in, first-out basis. Adjustments to reduce the carrying amount of inventory to the lower of cost or net realizable value are made, if required, for excess or obsolete goods, which includes a review of, among other factors, demand requirements and market conditions. Property and Equipment Property and equipment are recorded at cost, less accumulated depreciation. Depreciation is calculated using the straight-line method over the related assets’ estimated useful lives: Equipment, furniture and other 1 to 5 years Leasehold improvements Lesser of related lease term or 5 years Building and improvements Up to 30 years Expenditures that materially increase asset life are capitalized, while ordinary maintenance and repairs are expensed as incurred. Capitalization of Cloud Computing Costs The Company capitalizes certain costs related to its enterprise cloud computing arrangem ents during the application development stage. During the post-implementation stage, these costs are amortized as hosting fees on a straight-line basis over the term of the hosting arrangements. Acquisitions The Company accounts for acquisitions using the acquisition method of accounting in accordance with Accounting Standard Codification Topic ASC 805, Business Combinations (“ASC 805”). Identifiable assets acquired and liabilities assumed are recorded at their acquisition date fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. Acquisition related costs are expensed as incurred. Upon acquisition, the accounts and results of operations are consolidated as of and subsequent to the acquisition date. When determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect to intangible assets. The Company utilizes commonly accepted valuation techniques, such as the income approach and the cost approach, as appropriate, in establishing the fair value of intangible assets. Typically, key assumptions include projections of cash flows that arise from identifiable intangible assets of acquired businesses as well as disc ount rates based on an analysis of the weighted average cost of capital, adjusted for specific risks associated with the assets. Identified Intangible Assets and Goodwill Impairment Identified finite-lived intangible assets consist of acquired patents, existing technology, customer relationships, trademarks and trade names, and non-compete agreements resulting from acquisitions, and acquired patents under asset purchase agreements. The Company’s identified intangible assets are amortized on a straight-line basis over their estimated useful lives, ranging from 1 to 10 years. Identified indefinite-lived intangible assets include legacy TiVo tradenames and trademarks resulting from acquisitions. Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the net tangible and identified intangible assets acquired. Goodwill was not amortized, but rather evaluated for potential impairment annually. As part of its annual goodwill impairment test using the quantitative approach, the Company recognized a goodwill impairment charge of $ 604.6 million for the year ended December 31, 2022. See Note 8— Goodwill Impairment and Intangible Assets, Net for more detail regarding the goodwill impairment. Impairment of Long-Lived Assets Long-lived assets include property and equipment, operating lease right-of-use (“ROU”) assets, and intangible assets. The Company reviews its long-lived assets for possible impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. Such events and changes may include: a significant decrease in market value, changes in asset use, negative industry or economic trends, and changes in the Company’s business strategy. The Company measures recoverability of these assets by comparing the carrying amounts to the future undiscounted cash flows that the assets or the asset group are expected to generate. If the carrying value of the assets is not recoverable, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the assets. For identified indefinite-lived intangible assets resulting from acquisitions, the Company evaluates their carrying value on an annual basis, and an impairment charge would be recognized to the extent that the carrying amount of such assets exceeds their estimated fair value. Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease ROU assets, accrued liabilities, and noncurrent operating lease liabilities in the Company’s consolidated balance sheets. The ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the leases do not provide an implicit rate, the Company generally uses its incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The Company’s lease terms may include options to extend or terminate the lease, and these terms are factored into the valuation of ROU assets and liabilities when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheets; expense for these leases is recognized on a straight-line basis over the lease term. Variable lease payments are expensed as incurred and are not included within the lease liability and ROU assets calculation. As a practical expedient, the Company elected to account for lease components and non-lease components such as common area maintenance costs for all data center, office, and facility leases separately . Research and Development Research and development costs are comprised primarily of employee-related costs, stock-based compensation expense, engineering consulting expenses associated with new product and technology development, product commercialization, quality assurance and testing costs, as well as costs related to information technology, patent applications and examinations, materials, supplies, and an allocation of facilities costs. All research and development costs are expensed as incurred. Stock-based Compensation Prior to the Separation, certain Company employees participated in the Former Parent’s equity programs. Stock-based compensation expense has been attributed to the Company based on the awards and terms previously granted to the Company’s direct employees, as well as an allocation of the Former Parent’s corporate and shared functional employee expenses. Stock-based compensation is measured at the grant date based on the estimated fair value of the award and is recognized on a straight-line basis, net of estimated forfeitures, over the requisite service or performance period. Forfeiture rates are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. If the actual forfeiture rate is materially different from the estimate, stock-based compensation expense could be significantly different from what was recorded in the current period. The Company uses the closing trading price of its common stock on the date of grant as the fair value of awards of restricted stock units (“RSUs”), and performance-based restricted stock units (“PSUs”) that are based on company-designated performance targets. For PSUs that are based on market conditions, or market-based PSUs, fair value is estimated by using a Monte Carlo simulation on the date of grant. The Company estimates the grant-date fair value of stock to be issued under the employee stock purchase plan (“ESPP”) using the Black-Scholes pricing mod el. Income Taxes Prior to the Separation, the Company’s operations were included in the tax returns filed by the respective Former Parent entities of which the Company’s businesses were a part. Income tax expense and other income tax-related information contained in these Consolidated Financial Statements are presented on a separate return basis as if the Company had filed its own tax returns. The separate return method applies the accounting guidance for income taxes to the Company’s standalone financial statements as if it were a separate taxpayer and a standalone enterprise for the periods presented. The income tax expense (benefit) recorded for the three month period ended December 31, 2022 is presented as if activity from this period would have been included in the same separate return as the nine months of activity through the date of Separation. Current income tax liabilities related to entities which file jointly with the Former Parent are assumed to be immediately settled with the Former Parent and are relieved through the Net Investment by Former Parent and are presented in Net transfers from and to Former Parent in the Consolidated Statements of Cash Flows. Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amount of assets and liabilities and their respective tax bases and operating loss and tax carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates applicable to the years in which those temporary differences are expected to reverse. A valuation allowance is recorded to reduce deferred tax assets to the amount that is more likely than not to be realized. From time to time, the Company engages in transactions in which the tax consequences may be subject to uncertainty. Significant judgment is required in assessing and estimating the tax consequences of these transactions. Accruals for unrecognized tax benefit liabilities, which represent the difference between a tax position taken or expected to be taken in a tax return and the benefit recognized for financial reporting purposes, are recorded when the Company believes it is not more-likely-than-not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. Adjustments to unrecognized tax benefits are recognized when facts and circumstances change, such as the closing of a tax audit, notice of an assessment by a taxing authority or the refinement of an estimate. Income tax benefit includes the effects of adjustments to unrecognized tax benefits, as well as any related interest and penalties. Advertising Costs Advertising costs are expensed as incurred and are presented within selling, general and administrative expense in the Consolidated Statements of Operations. Advertising expenses for the years ended December 31, 2023, 2022 and 2021, were $ 8.1 million, $ 5.5 million, and $ 9.1 million, respectively. Contingencies From time to time, the Company may be involved in legal and administrative proceedings and claims of various types. The Company records a liability in its consolidated financial statements for these matters when a loss is known or considered probable and the amount can be reasonably estimated. Management reviews these estimates in each accounting period as additional information becomes known and adjusts the loss provision when appropriate. If the loss is not probable or cannot be reasonably estimated, a liability is not recorded in the consolidated financial statements. If a loss is probable but the amount of loss cannot be reasonably estimated, the Company discloses the loss contingency and an estimate of possible loss or range of loss (unless such an estimate cannot be made). The Company does not recognize gain contingencies until they are realized. Legal costs incurred in connection with loss contingencies are expensed as incurred. Recent Accounting Pronouncements Accounting Standards Adopted In October 2021, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update No. 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU 2021-08”), which amends the guidance in ASC 805 to require that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with revenue recognition guidance under ASC 606. As a result of the amendments, it is expected that an acquirer will generally recognize and measure acquired contract assets and contract liabilities in a manner consistent with how the acquiree recognized and measured them in its preacquisition financial statements. The Company adopted this standard on January 1, 2022 . The adoption did no t have an impact on the Company’s consolidated financial statements. Accounting Standards Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which requires significant segment expenses and other segment related items to be disclosed on an interim and annual basis. The new disclosure requirements are also applicable to companies with a single reportable segment. This guidance is effective on a retrospective basis for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of this guidance on the disclosures within its consolidated financial statements. In December 2023, the FASB issued ASU |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | NOTE 3 – REVENUE Revenue Recognition General Revenue is recognized when control of the promised goods or services is transferred to a customer in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services, which may include various combinations of goods and services which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of sales taxes collected from customers which are subsequently remitted to governmental authorities. Some of the Company’s contracts with customers contain multiple performance obligations. For these contracts, the individual performance obligations are separately accounted for if they are distinct. In an arrangement with multiple performance obligations, the transaction price is allocated among the separate performance obligations on a relative stand-alone selling price basis. The determination of stand-alone selling price considers market conditions, the size and scope of the contract, customer and geographic information, and other factors. When observable prices are not available, stand-alone selling price for separate performance obligations is generally based on the cost-plus-margin approach, considering overall pricing objectives. When variable consideration is in the form of a sales-based or usage-based royalty in exchange for a license of technology or when a license of technology is the predominant item to which the variable consideration relates, revenue is recognized at the later of when the subsequent sale or usage occurs or the performance obligation to which some or all of the sales-based or usage-based royalty has been allocated has been satisfied or partially satisfied. Description of Revenue-Generating Activities The Company derives the majority of its revenue from licensing its technologies and solutions to customers within the Pay-TV, Consumer Electronics, Connected Car and Media Platform product categories. Refer to Part I, Item 1 of this Form 10-K for detailed information regarding these product categories. Pay-TV Customers within the Pay-TV category are primarily multi-channel video service providers, consumer electronics (“CE”) manufacturers, and end consumers. Revenue in this category is primarily derived from licensing the Company’s Pay-TV solutions, including Electronic Program Guides, TiVo video-over-broadband (“IPTV”) Solutions, Personalized Content Discovery and enriched Metadata. For these solutions, the Company provides on-going media or data delivery, either via on-premise licensed software, hosting or access to its platform. The Company generally receives fees on a per-subscriber per-month basis or as a monthly fee, and revenue is recognized during the month in which the solutions are provided to the customer. For most of the on-premise licensed software arrangements, substantially all functionality is obtained through the Company’s frequent updating of the technology, data and content. In these instances, the Company typically has a single performance obligation related to these ongoing activities in the underlying arrangement, and revenue is generally recognized over the period the solution is provided. Hosted solutions and access to our platform is considered a single performance obligation recognized over the period the solution is provided. Consumer Electronics The Company licenses its audio technologies to CE manufacturers or their supply chain partners. The Company generally recognizes royalty revenue from licenses based on units shipped or manufactured. Revenue is recognized in the period in which the customer’s sales or production are estimated to have occurred. This may result in an adjustment to revenue when actual sales or production are subsequently reported by the customer, generally in the month or quarter following sales or production. Estimating customers’ quarterly royalties prior to receiving the royalty reports requires the Company to make significant assumptions and judgments related to forecasted trends and growth rates used to estimate quantities shipped or manufactured by customers, which could have a material impact on the amount of revenue it reports on a quarterly basis. Certain customers enter into fixed fee or minimum guarantee agreements, whereby customers pay a fixed fee for the right to incorporate the Company’s technology in the customer’s products over the license term. In arrangements with a minimum guarantee, the fixed fee component corresponds to a minimum number of units or dollars that the customer must produce or pay, with additional per-unit fees for any units or dollars exceeding the minimum. The Company generally recognizes the full fixed fee as revenue at the beginning of the license term when the customer has the right to use the technology and begins to benefit from the license, net of the effect of any significant financing components calculated using customer-specific, risk-adjusted lending rates, with the related interest income being recognized over time on an effective rate basis. For minimum guarantee agreements where the customer exceeds the minimum, the Company recognizes revenue relating to any additional per-unit fees in the periods it estimates the customer will exceed the minimum and adjusts the revenue based on actual usage once that is reported by the customer. Connected Car The Company licenses its digital radio solutions, automotive infotainment and related offerings, and driver and occupant monitoring systems to automotive manufacturers or their supply chain partners. The Company generally recognizes royalty revenue from these licenses based on units shipped or manufactured, similar to the revenue recognition described above in “Consumer Electronics”. Certain customers may enter into fixed fee or minimum guarantee agreements, also similar to the revenue recognition described above in “Consumer Electronics”. Automotive infotainment and related revenue is generally recognized over time as the customer obtains access to the solutions and underlying data. Media Platform The Company generates revenue from advertising, TV viewership data, and licensing of the Vewd app framework and core middleware solutions. Advertising revenue is generally recognized when the related advertisement is provided. TV viewership data revenue is generally recognized over time as the customer obtains the underlying data. License revenue for the Vewd solutions is generally recognized either on a per-unit royalty or a minimum guarantee or fixed fee basis, similar to as described in the “Consumer Electronics” section above. Hardware Products, Services and Settlements/Recoveries The Company sells hardware products, primarily to end consumers, within the Pay-TV, Media Platform and Consumer Electronics product categories. Hardware product revenue is generally recognized when the promised product is delivered. The Company also generates non-recurring engineering (“NRE”) revenue within all of its product categories. The Company recognizes NRE revenue as progress toward completion is made, generally using an input method based on the ratio of costs incurred to date to total estimated costs of the project. Revenue from each of advertising, NRE services, and hardware products was less than 10 % of total revenue for all periods presented. The Company actively monitors and enforces its technology licenses, including seeking appropriate compensation from customers that have under-reported royalties owed under a license agreement and from third parties that utilize the Company’s technologies without a license. As a result of these activities, the Company may, from time to time, recognize revenue from periodic compliance audits of licensees for underreporting royalties incurred in prior periods, or from legal judgments in a license dispute. These settlements and recoveries may cause revenue to be higher than expected during a particular reporting period and such settlements and recoveries may not occur in subsequent periods. The Company recognizes revenue from settlements and recoveries when a binding agreement has been executed or a revised royalty report has been received and the Company concludes collection is probable. Practical Expedients and Exemptions The Company applies a practical expedient to not perform an evaluation of whether a contract includes a significant financing component when the timing of revenue recognition differs from the timing of cash collection by one year or less. The Company applies a practical expedient to expense costs to obtain a contract with a customer as incurred as a component of selling, general and administrative expenses when the amortization period would have been one year or less. Contract costs capitalized and amortized have not been material to the consolidated financial statements. The Company applies a practical expedient when disclosing revenue expected to be recognized from unsatisfied performance obligations to exclude contracts with customers with an original duration of one year or less; amounts attributable to variable consideration arising from (i) a sales-based or usage-based royalty of a technology license or (ii) when variable consideration is allocated entirely to a wholly unsatisfied performance obligation; or to a wholly unsatisfied promise to transfer a distinct good or service that forms part of a single performance obligation. Disaggregation of Revenue The Company’s revenue that is recognized over time consists primarily of per unit royalties, per-subscriber per-month or monthly license fees, single performance obligations satisfied over time, and NRE services. Revenue that is recognized at a point in time consists primarily of fixed fee or minimum guarantee contracts, hardware products, advertising and settlements/recoveries. The following table summarizes revenue by timing of recognition (in thousands): Year Ended December 31, 2023 2022 2021 Recognized over time $ 410,865 $ 401,668 $ 412,334 Recognized at a point in time 110,469 100,592 74,149 Total revenue $ 521,334 $ 502,260 $ 486,483 The following table summarizes revenue by product category (in thousands): Year Ended December 31, 2023 2022 2021 Pay-TV $ 244,708 $ 249,457 $ 262,929 Consumer Electronics 132,355 128,395 99,529 Connected Car 94,864 84,201 88,306 Media Platform 49,407 40,207 35,719 Total revenue $ 521,334 $ 502,260 $ 486,483 A significant portion of the Company’s revenue is derived from licensees headquartered outside of the United States, principally in Asia, Europe and the Middle East, and it is expected that this revenue will continue to account for a significant portion of total revenue in future periods. The following table presents the Company’s revenue disaggregated by geographic area (in thousands): Year Ended December 31, 2023 2022 2021 U.S. $ 267,998 51 % $ 278,920 56 % $ 249,537 51 % Japan 83,138 16 65,551 13 70,956 15 Europe and Middle East 41,113 8 42,846 9 56,317 12 China 35,809 7 30,932 6 18,027 4 Latin America 31,863 6 27,212 5 22,894 4 Other 61,413 12 56,799 11 68,752 14 Total revenue $ 521,334 100 % $ 502,260 100 % $ 486,483 100 % Contract Balances Contract Assets Contract assets primarily consist of unbilled contracts receivable that are expected to be received from customers in future periods, where the revenue recognized to date exceeds the amount billed. The amount of unbilled contracts receivable may not exceed their net realizable value and are classified as noncurrent if the payments are expected to be received more than one year from the reporting date. As of December 31, 2023 and 2022, the total of current and noncurrent balances of unbilled contracts receivable, net were $ 82.3 million and $ 69.5 million, respectively. Contract Liabilities Contract liabilities are mainly comprised of deferred revenue, which arises when cash payments are received, including amounts which are refundable, in advance of performance obligations being completed. Deferred revenue generally consists of prepaid licenses or other fees, amounts received related to NRE services to be performed in the future, and other offerings for which the Company is paid in advance while the promised good or service is transferred to the customer at a future date or over time. As of December 31, 2023 and 2022, the total of current and noncurrent balances of deferred revenue were $ 47.5 million and $ 44.5 million, respectively. The following table presents additional revenue disclosures (in thousands): Years Ended December 31, 2023 2022 2021 Revenue recognized in the period from: Amounts included in deferred revenue at the beginning of the period (1) $ 20,620 $ 24,307 $ 23,863 Performance obligations satisfied in previous periods (true (2)(3) $ 11,863 $ 30,561 $ 8,772 (1) The Company has identified an error in the disclosure of the amount of revenue recognized from the beginning balance of deferred revenue for the year ended December 31, 2022 in this Form 10-K filing. The amount for the year ended December 31, 2022 was revised to correct an immaterial error, which resulted in the disclosure of the amount recognized increasing by $ 4.6 million from the amount previously disclosed. There was no impact on any amounts recorded in the Company’s consolidated financial statements for any period presented. (2) True ups represent the differences between the Company’s quarterly estimates of per-unit royalty revenue and actual production/sales-based royalties reported by licensees in the following period. Recoveries represent corrections or revisions to previously reported per-unit royalties by licensees, generally resulting from the Company’s inquiries or compliance audits. Settlements represent resolutions of litigation or disputes during the period for past royalties owed. (3) For the year ended December 31, 2022, the Company recorded revenue from both the settlement of a contract dispute with a large mobile imaging customer, and the execution of a long-term license agreement with the same large mobile imaging customer. The long-term license agreement was effective as of the expiration of the prior agreement, and the Company expected to record revenue from the license agreement in future periods. Remaining Performance Obligations Remaining revenue under contracts with performance obligations represents the aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied, or partially unsatisfied, under certain of the Company’s fixed fee arrangements and engineering services contracts. As of December 31, 2023, the Company’s estimated remaining revenue under contracts with performance obligations was as follows (in thousands): Year Ending December 31: Amounts 2024 $ 46,763 2025 19,127 2026 6,375 2027 2,292 2028 1,031 Thereafter 1,203 Total $ 76,791 Allowance for Credit Losses The following table presents the activity in the allowance for credit losses for the years ended December 31, 2023, 2022 and 2021 (in thousands): Year Ended December 31, 2023 2022 2021 Accounts Receivable Unbilled Contracts Receivable Accounts Receivable Unbilled Contracts Receivable Accounts Receivable Unbilled Contracts Receivable Beginning balance $ 1,950 $ 369 $ 2,255 $ 468 $ 6,454 $ 1,414 Provision for credit losses 497 52 799 ( 99 ) 714 38 Recoveries/charge-off ( 541 ) ( 231 ) ( 1,104 ) — ( 4,913 ) ( 984 ) Balance at end of period $ 1,906 $ 190 $ 1,950 $ 369 $ 2,255 $ 468 |
Composition of Certain Financia
Composition of Certain Financial Statement Captions | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Composition of Certain Financial Statement Captions | NOTE 4 – COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS Other current assets consisted of the following (in thousands): December 31, 2023 2022 Prepaid income tax $ 4,813 $ 1,777 Prepaid expenses 19,913 20,001 Finished goods inventory 7,279 6,662 Other 6,869 13,734 Total $ 38,874 $ 42,174 Property and equipment, net consisted of the following (in thousands): December 31, 2023 2022 Equipment, furniture and other $ 78,357 $ 78,976 Building and improvements 17,876 18,331 Land 5,300 5,300 Leasehold improvements 11,758 17,038 Total property and equipment 113,291 119,645 Less: Accumulated depreciation and amortization ( 71,722 ) ( 71,818 ) Property and equipment, net $ 41,569 $ 47,827 Due to the global downsizing of its real estate footprint, the Company vacated a number of its leased office facilities, resulting in the impairment of the leasehold improvements completed at those facilities. For the years ended December 31, 2023 and 2022, the Company recorded impairment cha rges of $ 0.4 million and $ 2.9 million on leasehold improvements, respectively. See Note 10— Leases for more detail. Accrued liabilities consisted of the following (in thousands): December 31, 2023 2022 Employee compensation and benefits $ 44,095 $ 53,546 Accrued expenses 24,307 23,899 Current portion of operating lease liabilities 14,760 17,195 Third-party royalties 8,478 7,620 Accrued other taxes 6,464 1,285 Accrued income taxes 1,991 4,926 Other 9,866 1,543 Total $ 109,961 $ 110,014 Accumulated other comprehensive loss (“AOCL”) consisted of the following (in thousands): Foreign Currency Translation Adjustment Unrealized Gains (Losses) on Cash Flow Hedges Total Balance at December 31, 2020 $ 1,311 $ — $ 1,311 Other comprehensive loss before reclassification ( 1,987 ) — ( 1,987 ) Balance at December 31, 2021 $ ( 676 ) $ — $ ( 676 ) Other comprehensive loss before reclassification ( 3,349 ) ( 94 ) ( 3,443 ) Balance at December 31, 2022 $ ( 4,025 ) $ ( 94 ) $ ( 4,119 ) Other comprehensive income before reclassification 126 1,190 1,316 Amounts reclassified from AOCL into net loss — ( 62 ) ( 62 ) Net current period other comprehensive income 126 1,128 1,254 Balance at December 31, 2023 $ ( 3,899 ) $ 1,034 $ ( 2,865 ) |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Financial Instruments | NOTE 5 – FINANCIAL INSTRUMENTS Non-marketable Equity Securities As of December 31, 2023 and 2022, other noncurrent assets included equity securities accounted for under the equity method with a carrying amount of $ 4.9 milli on and $ 4.4 million, respectively. No impairments to the carrying amount of the Company’s non-marketable equity securities were recognized in the years ended December 31, 2023, 2022 and 2021, respectively. Derivatives Instruments In the fourth quarter of 2022, the Company initiated a foreign exchange hedging strategy to hedge local currency expenses and reduce variability associated with anticipated cash flows. The Company’s derivative financial instruments consist of foreign currency forward contracts. The maturities of these instruments are generally less than twelve months. Fair values for derivative financial instruments are based on prices computed using third-party valuation models. All the significant inputs to the third-party valuation models are observable in active markets. Inputs include current market-based parameters such as forward rates, yield curves and credit default swap pricing. For additional information related to the three-level hierarchy of fair value measurements, see Note 6— Fair Value . The notio nal and fair values of all derivative instruments were as follows (in thousands): December 31, 2023 2022 Derivative instruments in cash flow hedges (foreign exchange contracts): Assets Other current assets $ 1,184 $ — Liabilities Accrued liabilities — 94 Total fair value $ 1,184 $ 94 Notional value held to buy U.S. dollars in exchange for other currencies $ 738 $ — Notional value held to sell U.S. dollars in exchange for other currencies $ 45,468 $ 52,197 Undesignated derivative instruments (foreign exchange contracts): Liabilities Accrued liabilities $ — $ 41 Total fair value $ — $ 41 Notional value held to sell U.S. dollars in exchange for other currencies $ — $ 7,402 All of the Company’s derivative financial instruments are eligible for netting arrangements that allow the Company and its counterparty to net settle amounts owed to each other. Derivative assets and liabilities that can be net settled under these arrangements have been presented in the Company’s Consolidated Balance Sheets on a net basis. The gross amounts of the Company’s foreign currency forward contracts and the net amounts recorded in the Company’s Consolidated Balance Sheets were as follows (in thousands): December 31, 2023 2022 Gross amount of recognized assets $ 1,300 $ — Gross amount of recognized liabilities ( 116 ) ( 135 ) Net assets (liabilities) $ 1,184 $ ( 135 ) Cash Flow Hedges The Company designates certain foreign currency forward contracts as hedging instruments pursuant to ASC 815, Derivatives and Hedging . The effective portion of the gain or loss on the derivatives are reported as a component of AOCL in stockholders’ equity and reclassified into earnings in the Consolidated Statements of Operations in the period upon which the hedged transactions are settled. For information on the unrealized gain or loss on the derivatives included in and reclassified out of the AOCL into Consolidated Statements of Operations, refer to Note 4— Composition of Certain Financial Statement Captions . The following table summarizes the gains recognized upon settlement of the hedged transactions in the Condensed Consolidated Statement of Operations for the years ended December 31, 2023 and 2022 (in thousands): Year Ended December 31, 2023 2022 Research and development $ 841 $ — Selling, general and administrative 192 — Total $ 1,033 $ — Undesignated Derivatives For derivatives that are not designated as hedge instruments, they are measured and reported at fair value as a derivative asset or liability in the Consolidated Balance Sheets with their corresponding change in the fair value recognized as gains or losses in other income, net in the Consolidated Statements of Operations. These instruments were all re-designated as foreign currency cash flow hedges in July 2023. For the year ended December 31, 2023, gains recognized on the undesignated derivatives were $ 0.4 million; and for the year ended December 31, 2022, losses recognized were not significant. The Company did not enter into any derivative contracts in 2021. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value | NOTE 6 – FAIR VALUE The Company follows the authoritative guidance for fair value measurement and the fair value option for financial assets and financial liabilities. The Company carries its financial instruments at fair value with the exception of its long-term debt. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability, or an exit price, in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets. Level 2 Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. When applying fair value principles in the valuation of assets, the Company is required to maximize the use of quoted market prices and minimize the use of unobservable inputs. The Company calculates the fair value of its Level 1 and Level 2 instruments based on the exchange traded price of similar or identical instruments, where available, or based on other observable inputs. The Company’s derivative financial instruments, consisting of foreign currency forward contracts, are reported at fair value based on prices computed using third-party valuation models and classified as Level 2 of the fair value hierarchy (as described in Note 5— Financial Instruments ). Financial Instruments Not Recorded at Fair Value The Company’s long-term debt is carried at historical cost and is measured at fair value on a quarterly basis for disclosure purposes. The carrying amounts and estimated fair values are as follows (in thousands): December 31, 2023 2022 Carrying Estimated Fair Carrying Estimated Fair Senior Unsecured Promissory Note $ 50,000 $ 49,659 $ 50,000 $ 48,478 If reported at fair value in the Consolidated Balance Sheets, the Company’s debt would be classified within Level 2 of the fair value hierarchy. The fair value of the debt was estimated based on the quoted market prices for the same or similar issues. For more details related to the senior unsecured promissory note, see Note 9— Debt . |
Acquisitions and Divestiture
Acquisitions and Divestiture | 12 Months Ended |
Dec. 31, 2023 | |
Business Combinations [Abstract] | |
Acquisitions and Divestiture | NOTE 7 – ACQUISITIONS AND DIVESTITURE Vewd Software Holdings Limited On July 1, 2022, the Company acquired all common stock of Vewd Software Holdings Limited (“Vewd,” and the “Vewd Acquisition”). Vewd is a leading global provider of OTT and hybrid TV solutions. The Vewd Acquisition establishes the Company as a leading independent streaming media platform through its TiVo brand and one of the largest independent providers of Smart TV middleware globally. The total consideration was approximately $ 102.9 million, consisting of approximately $ 52.9 million of cash and $ 50.0 million of debt. See Note 9— Debt for additional information on this debt. Purchase Price Allocation The Vewd Acquisition was accounted for as a business combination, using the acquisition method. The following table presents the allocation of the purchase price to the identifiable assets acquired and liabilities assumed based on the fair values at the acquisition date (fair value amounts in thousands): Estimated Estimated Cash and cash equivalents $ 2,684 Accounts receivable 3,341 Unbilled contracts receivable 2,335 Other current assets 1,208 Property and equipment 443 Operating lease right-of-use assets 2,020 Identifiable intangible assets: Technology 7 28,050 Customer relationships - large 7 4,900 Customer relationships - small 4 3,500 Non-compete agreements 2 870 Trade name 5 830 Total identifiable intangible assets 38,150 Goodwill 68,115 Other long-term assets 977 Accounts payable ( 869 ) Accrued liabilities ( 4,777 ) Deferred revenue ( 920 ) Long-term deferred tax liabilities ( 8,393 ) Noncurrent operating lease liabilities ( 1,094 ) Other long-term liabilities ( 307 ) Total purchase price $ 102,913 Identifiable Intangible Assets Identifiable intangible assets primarily consist of technology, customer relationships, non-compete agreements and trade name. In determining the fair value, the Company utilized various forms of the income and cost approaches depending on the asset being valued. The estimation of fair value required significant judgment related to cash flow forecasts, discount rates reflecting the risk inherent in each cash flow stream, competitive trends, market comparables and other factors. Inputs were generally determined using historical data supplemented by current and anticipated market conditions, and growth rates. The technology was valued using the excess earnings method. Significant assumptions used under this method include forecasted revenue and growth, estimated technology obsolescence, contributory asset charges, and the discount rate. The customer relationships were valued using the cost approach, based on estimated customer acquisition costs. Goodwill The excess of the consideration transferred over the fair value of assets acquired and liabilities assumed was recognized as goodwill. The goodwill is generated from operational synergies and cost savings the Company expects to achieve from the consolidated operations, as well as the expected benefits from future technologies that do not meet the definition of an identifiable intangible asset and Vewd’s knowledgeable and experienced workforce. Transaction and Other Costs In connection with the Vewd Acquisition, the Company incurred significant one-time expenses such as transaction-related costs, including transaction bonuses, legal expenses and consultant fees, and severance and retention costs. For the year ended December 31, 2022, transaction-related costs and severance and retention costs were $ 7.4 million and $ 4.0 million, respectively. Supplemental Pro Forma Information The following unaudited pro forma financial information assumes the Vewd Acquisition was completed as of January 1, 2021. The unaudited pro forma financial information as presented below is for informational purposes only and is based on estimates and assumptions that have been made solely for purposes of developing such pro forma information. This is not necessarily indicative of the results of operations that would have been achieved if the Vewd Acquisition had taken place on January 1, 2021, nor is it necessarily indicative of future results. Consequently, actual results could differ materially from the unaudited pro forma financial information presented below. The following table presents the pro forma operating results as if the acquired operations of Vewd had been included in the Company’s Consolidated Statements of Operations as of January 1, 2021 (unaudited, in thousands): Year Ended December 31, 2022 2021 Revenue $ 508,636 $ 498,992 Net loss attributable to the Company $ ( 769,483 ) $ ( 209,690 ) The unaudited supplemental pro forma information above includes the following pro forma adjustments: adjustments for transaction-related costs and severance and retention costs, adjustments for amortization of intangible assets, adjustments for interest and related expenses associated with Vewd’s historical debt, elimination of inter-company transactions between Vewd and the Company, and adjustments for the related income tax impact. The unaudited supplemental pro forma information above does not include any cost saving synergies from operating efficiencies. Divestiture and Assets Held for Sale In December 2023, the Company entered into a definitive agreement with Tobii AB (the “Purchaser”), an eye tracking and attention computing company, pursuant to which it agreed to sell to the Purchaser its AutoSense in-cabin safety business and related imaging solutions subject to certain customary closing conditions (the “Divestiture”). The Divestiture represents a 100 % equity sale transaction, in which the Purchaser is obligated to issue a senior secured promissory note in the principal amount of approximately $ 27.7 million carrying a fixed interest rate of 8 %, and will make an aggregate of $ 15.0 million in future cash payments. In addition, there is potential incremental cash consideration which is contingent upon the future success of the divested AutoSense in-cabin safety business. Within 15 days of closing the Divestiture, the Purchaser is required to pay to the Company the acquired closing cash balance, less certain adjustments. The Divestiture is expected to further streamline the Company’s business and focus its investments on entertainment markets. The divestiture did not represent a strategic shift that would have a major effect on the Company’s consolidated results of operations, and therefore its results of operations were not reported as discontinued operations. The following table summarizes the carrying amounts of assets and liabilities classified as held for sale in connection with the Divestiture on the Company’s consolidated balance sheet as of December 31, 2023 (in thousands): December 31, 2023 Current Noncurrent Total Assets: Cash and cash equivalents $ 12,349 $ — $ 12,349 Accounts receivable, net 1,323 — 1,323 Unbilled contracts receivable, net 1,209 5,320 6,529 Prepaid expenses and other current assets 979 — 979 Property and equipment, net — 2,391 2,391 Operating lease right-of-use assets — 3,346 3,346 Other noncurrent assets — 1,192 1,192 Total assets held for sale (1) $ 15,860 $ 12,249 $ 28,109 Liabilities: Accounts payable $ 244 $ — $ 244 Accrued liabilities 4,821 — 4,821 Deferred revenue 1,126 — 1,126 Operating lease liabilities, noncurrent — 2,741 2,741 Other noncurrent liabilities — 7,064 7,064 Total liabilities held for sale $ 6,191 $ 9,805 $ 15,996 Net assets held for sale $ 9,669 $ 2,444 $ 12,113 (1) Total assets held for sale also included certain fully amortized finite-lived intangible assets with an original cost of $ 35.2 million. Due to the estimated fair value less cost to sell exceeding the carrying amount of the assets and liabilities presented above, the Company did not recognize an impairment loss related to the assets held for sale in the year ended December 31, 2023. |
Goodwill Impairment and Intangi
Goodwill Impairment and Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill Impairment and Intangible Assets, Net | NOTE 8 – GOODWILL IMPAIRMENT AND INTANGIBLE ASSETS, NET Goodwill Impairment Goodwill was evaluated for potential impairment annually, as of the beginning of the fourth quarter, and whenever events or changes in circumstances indicated the carrying amount of goodwill may not be recoverable. The process of evaluating goodwill for potential impairment is subjective and requires significant estimates, assumptions and judgments particularly related to the identification of reporting units, the assignment of assets and liabilities to reporting units and estimating the fair value of each reporting unit. The Company concluded it operated in one reporting unit for all periods presented. During the third and fourth quarters of 2022, sufficient impairment indicators were identified by the Company that it was more-likely-than-not that goodwill was impaired, and a quantitative interim goodwill impairment test was performed in each of the reporting periods. These impairment indicators included a sustained decline in the Former Parent’s stock price during the third quarter of 2022 and a further significant decline in the trading price of Xperi’s common stock during the fourth quarter of 2022, along with continued decline in macroeconomic conditions. A fair value assessment was completed for the Product reporting unit using the market approach capitalization, and when compared to the carrying value of this reporting unit, goodwill was considered impaired. As a result, a goodwill impairment charge of $ 604.6 million was recognized for the year ended December 31, 2022. As a result of this impairment charge, the Company’s goodwill balance was completely written off as of December 31, 2022. Identified Intangible Assets Identified intangible assets consisted of the following (in thousands): December 31, 2023 Average Gross Accumulated Net Carrying Value Finite-lived intangible assets Acquired patents 3 - 10 $ 17,281 $ ( 3,478 ) $ 13,803 Existing technology / content database 5 - 10 219,717 ( 181,713 ) 38,004 Customer contracts and related relationships 3 - 9 493,685 ( 365,074 ) 128,611 Trademarks/trade name 4 - 10 39,313 ( 34,453 ) 4,860 Non-compete agreements 1 - 2 3,101 ( 2,884 ) 217 Total finite-lived intangible assets 773,097 ( 587,602 ) 185,495 Indefinite-lived intangible assets: TiVo tradename/trademarks N/A 21,400 — 21,400 Total intangible assets $ 794,497 $ ( 587,602 ) $ 206,895 Total intangible assets excluded certain finite-lived intangible assets with a gross amount of $ 35.2 million, which were fully amortized and classified as held for sale as of December 31, 2023 in connection with the Divestiture (as described in Note 7). December 31, 2022 Average Gross Accumulated Net Carrying Value Finite-lived intangible assets Acquired patents 3 - 10 $ 22,189 $ ( 6,175 ) $ 16,014 Existing technology / content database 5 - 10 240,894 ( 190,671 ) 50,223 Customer contracts and related relationships 3 - 9 502,188 ( 335,981 ) 166,207 Trademarks/trade name 4 - 10 39,613 ( 29,733 ) 9,880 Non-compete agreements 1 - 2 3,101 ( 2,449 ) 652 Total finite-lived intangible assets 807,985 ( 565,009 ) 242,976 Indefinite-lived intangible assets: TiVo tradename/trademarks N/A 21,400 — 21,400 Total intangible assets $ 829,385 $ ( 565,009 ) $ 264,376 As of December 31, 2023, the estimated future amortization expense of finite-lived intangible assets was as follows (in thousands): Year Ending December 31: Amounts 2024 $ 43,363 2025 34,816 2026 31,486 2027 30,643 2028 30,305 Thereafter 14,882 Total amortization $ 185,495 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | NOTE 9 – DEBT In connection with the Vewd Acquisition as disclosed in Note 7, on July 1 , 2022, TiVo Product Holdco LLC, which was subsequently renamed Xperi Inc., issued a senior unsecured promissory note (the “Promissory Note”) to the sellers of Vewd in a principal amount of $ 50.0 million. Indebtedness outstanding under the Promissory Note bears an interest rate of 6.00 % per annum, payable in cash on a quarterly basis. If a certain qualified spin-off transaction occurs, the interest rate will be increased to the greater of (a) 6.00 % and (b) the sum of (i) the highest interest rate payable under any credit facility or bonds, debentures, notes or similar instruments where the issuer or any guarantor borrows money or guarantees obligations on a secured basis on or after the date of such spin-off transaction, plus (ii) 2.00 %. It was determined that the Spin-Off completed on October 1, 2022 did not trigger any change in the interest rate of the debt. The Promissory Note matures on July 1, 2025 . The issuer may, at any time and on any one or more occasions, prepay all or any portion of the outstanding principal amount, plus accrued and unpaid interest, if any, under the Promissory Note without premium or penalty. In addition, the Promissory Note has mandatory prepayment provisions upon certain change of control or asset sale events. The Promissory Note includes certain covenants that restrict the issuer and each guarantor’s ability to, among other things, incur certain indebtedness or engage in any material line of business substantially different from those lines of business conducted by such entities on the closing date of the acquisition. The Promissory Note does not contain any financial covenants. As of December 31, 2023, $ 50.0 million in principal balance was outstanding. Interest expense on the Promissory Note was $ 3.0 million and $ 1.5 million for the years ended December 31, 2023 and 2022, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | NOTE 10 – LEASES The Company leases office and research facilities, data centers and office equipment under operating leases with various expiration dates thro ugh 2030. Certain leases offer the option to renew for up to ten ye ars and to terminate before the expiration date. The Company subleases certain real estate to third parties. The sublease portfolio consists of operating leases for previously exited office space. Certain subleases include variable payments for operating costs. The subleases are generally co-terminus with the head lease, or shorter. Subleases do not include any residual value guarantees or restrictions or covenants imposed by the leases. Income from subleases is recognized as a reduction to selling, general and administrative expenses. The Company began the effort of optimizing its global real estate footprint and decided to vacate and sublease certain offices follow ing the Spin-Off in October 2022. For the years ended December 31, 2023 and 2022, the Company recorded impairment charges of $ 1.3 millio n and $ 4.8 million to reduce the carrying amount of certain operating lease ROU assets, respectively, along with writing off the related leasehold improvements of $ 0.4 million and $ 2.9 million, respectively. The Company determined that it may not be able to fully recover the carrying amount of the leased offices due to a change in the manner in which the offices are being used, a significant decrease in the expected market price of the leased asset, and expected delays in subleasing the space based on the current real estate leasing market. The Company estimated the fair value using a discounted cash flows approach with assumptions such as expectations of cash flows from projected sublease income, occupancy estimates, and its outlook for the local real estate market. The components of operating lease costs were as follows (in thousands): Year Ended December 31, 2023 2022 2021 Fixed lease cost (1) $ 20,306 $ 20,581 $ 20,619 Variable lease cost 5,130 5,365 5,030 Less: sublease income ( 9,896 ) ( 9,498 ) ( 9,724 ) Total operating lease cost $ 15,540 $ 16,448 $ 15,925 (1) Includes short-term leases expensed on a straight-line basis. The following table presents supplemental cash flow information arising from lease transactions (in thousands): Year Ended December 31, 2023 2022 2021 Cash payments included in the measurement of operating lease liabilities $ 19,968 $ 20,307 $ 20,826 Operating ROU assets obtained in exchange for lease obligations $ 11,563 $ 14,360 $ 6,131 The weighted-average remaining term of the Company’s operating leases and the weighted-average discount rate used to measure the present value of the operating lease liabilities are as follows: December 31, 2023 2022 Weighted-average remaining lease term (in years) 3.37 3.69 Weighted-average discount rate 5.3 % 5.1 % Future minimum lease payments and related lease liabilities as of December 31, 2023 were as follows (in thousands): Operating Lease Payments (1) Sublease Income Net Operating Lease Payments 2024 $ 16,805 $ ( 5,843 ) $ 10,962 2025 16,177 ( 6,108 ) 10,069 2026 9,812 ( 1,412 ) 8,400 2027 3,964 ( 368 ) 3,596 2028 1,996 ( 379 ) 1,617 Thereafter 1,101 ( 291 ) 810 Total lease payments 49,855 $ ( 14,401 ) $ 35,454 Less: imputed interest ( 4,497 ) Present value of operating lease liabilities: $ 45,358 Less: operating lease liabilities, current portion ( 14,760 ) Noncurrent operating lease liabilities $ 30,598 (1) Future minimum lease payments exclude short-term leases as well as payments to landlords for variable common area maintenance, insurance and real estate taxes. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | NOTE 12 – NET LOSS PER SHARE On October 1, 2022, 42,023,632 shares of the Company’s common stock, par value $ 0.001 per share, were distributed to the Former Parent’s stockholders of record as of September 21, 2022 . This share amount is utilized for the calculation of basic and diluted earnings per share for all periods presented prior to the Separation and such shares are treated as issued and outstanding for purposes of cal culating historical net loss per share. For periods prior to the Separation, it is assumed that there are no dilutive equity instruments as there were no Xperi stock-based awards outstanding prior to the Separation. For periods subsequent to the Separation, actual outstanding shares are used to calculate both basic and diluted weighted-average number of common shares outstanding. Potentially dilutive common shares, such as common shares issuable upon exercise of stock options and vesting of restricted stock awards and units are typically reflected in the computation of diluted net income per share by application of the treasury stock method. Due to the net losses reported, these potentially dilutive securities were excluded from the computation of diluted net loss per share, since their effect would be anti-dilutive. The following table sets forth th e computation of basic and diluted shares (in thousands, except per share amounts): Year Ended December 31, 2023 2022 2021 Numerator: Net loss attributable to the Company - basic and diluted $ ( 136,613 ) $ ( 757,484 ) $ ( 175,622 ) Denominator: Weighted-average number of shares used to compute net loss per share attributable to the Company - basic and diluted 43,012 42,029 42,024 Net loss per share attributable to the Company - basic and diluted $ ( 3.18 ) $ ( 18.02 ) $ ( 4.18 ) The following potentially dilutive shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented (in thousands): Year Ended December 31, 2023 2022 Stock options 106 146 Restricted stock units 7,067 4,604 ESPP 81 — Total 7,254 4,750 Potentially dilutive shares for the year ended December 31, 2021 were not considered as there were no Xperi stock-based awards outstanding prior to the Separation. |
Stockholders' Equity And Stock-
Stockholders' Equity And Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stockholders' Equity And Stock-Based Compensation | NOTE 13 – STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION Prior to the Separation, certain of the Company’s employees participated in equity-based compensation plans sponsored by the Former Parent. The Former Parent’s equity-based compensation plans included incentive compensation plans and an ESPP. All grants made through September 30, 2022 were issued under those plans which are described fully in the Form 10 filed with the SEC on September 14, 2022. On October 1, 2022, in connection with the Separation, all outstanding Former Parent equity awards were equitably adjusted to reflect the impact of the Separation. The adjustments to each type of award outstanding pursuant to the Former Parent equity incentive plans as of immediately prior to the Separation was determined in accordance with the terms of the Employee Matters Agreement by and between Adeia Inc. and Xperi Inc., dated as of October 1, 2022 (the “EMA”). In connection with this adjustment, each outstanding Former Parent equity award as of the Separation Date was converted into either (a) both Adeia and Xperi equity awards, with certain adjustments to the underlying shares and terms of outstanding awards to preserve the aggregate intrinsic value of each award immediately after the Separation when compared to the aggregate intrinsic value immediately prior to the Separation, or (b) an equity award of only Adeia common stock or only Xperi common stock, with an adjustment to the number of shares to preserve the value of the award. Following the Separation, the Adeia awards and Xperi awards related to prior grants made by the Former Parent are subject to substantially the same terms and vesting conditions that applied to the original Former Parent awards immediately prior to the Separation. The conversion of the Former Parent equity awards was accounted for as a modification, resulting in $ 8.4 million of incremental stock-based compensation expense to be recognized over the remaining vesting term of the modified awards. Equity Incentive Plans In connection with the Separation and on October 1, 2022, the Company adopted the Xperi Inc. 2022 Equity Incentive Plan (the “2022 EIP”). Under the 2022 EIP, the Company may grant equity-based awards to employees, non-employee directors, and consultants for services rendered to the Company (or any parent or subsidiary) in the form of stock options, stock awards, restricted stock awards, RSUs, stock appreciation rights, dividend equivalents and performance awards, or any combination thereof. The 2022 EIP provides for option grants designated as either incentive stock options or non-statutory options. Stock options have been granted with an exercise price not less than the value of the Company’s common stock on the grant date and have 10-year contractual terms from the date of grant and vest over a four-year period. The vesting criteria for restricted stock units has historically been the passage of time or meeting certain performance-based objectives, and continued employment through the vesting period over three or four years for time-based awards or three years for performance-based awards. As of December 31, 2023, there were approximately 4.2 million shares reserved for future grant under the 2022 EIP. Employee Stock Purchase Plans In connection with the Separation and on October 1, 2022, the Company adopted the Xperi Inc. 2022 Employee Stock Purchase Plan. The plan provided consecutive overlapping 24-month offering periods, with four purchase periods that were generally six months in length, commencing on each December 1 and June 1 during the term of the plan. The plan was subsequently amended (as amended, the “2022 ESPP”), and commencing December 1, 2023, the length of the offering periods was reduced from 24 months to 12 months and the employee’s maximum participant contribution was reduced from 100 % to 15 % of their after tax base earnings and commissions up to the limit imposed by the Internal Revenue Service (“IRS”). The accumulated deductions will be applied to the purchase of shares on each semi-annual purchase date. The purchase price per share will equal 85 % of the fair market value per share on the start date of the offering period or, if lower, 85 % of the fair market value per share on the semi-annual purchase date. An eligible employee’s right to purchase the Company’s common stock under the 2022 ESPP may not accrue at a rate in excess of $ 25,000 limit imposed by the IRS on the fair market value of such shares per calendar year. If the fair market value per share of the Company’s common stock on any purchase date during an offering period is less than the fair market value per share on the start date of the 12-month offering period, then that offering period will automatically terminate and a new 12-month offering period will begin on the next business day. All participants in the terminated offering will be transferred to the new offering. The change in the term of the offering period (as described above) was accounted for as a modification, where the original options to purchase shares were cancelled and concurrently replaced with new options from the 12-month offering period. There was no incremental compensation expense resulting from the modification. As of December 1, 2023, total compensation expense of $ 5.9 million was expected to be recognized by the Company, on a straight-line basis, over an accelerated term of 12 months . For the year ended December 31, 2023, the Company issued 1.3 million shares under the 2022 ESPP at a weighted-average purchase price of $ 8.92 , net of s hares withheld to satisfy withholding tax requirements for certain employees, for an aggregate net proceeds of $ 11.9 million. As of December 31, 2023, there were approximately 3.7 million shares reserved for future grant under the 2022 ESPP. The following table summarizes the valuation assumptions used in estimating the fair value of the 2022 ESPP for the offering periods in effect using the Black-Scholes option pricing model: Year Ended December 31, 2023 2022 Expected life (years) 0.5 — 2.0 2.0 Risk-free interest rate 4.33 % — 5.44 % 4.3 % Dividend yield 0.0 % 0.0 % Expected volatility 44.11 % — 51.19 % 42.9 % Prior to the Separation, the valuation assumptions were determined by the Former Parent. The following assumptions were used to value the Former Parent’s ESPP shares granted to employees specifically identifiable to Xperi in the years ended December 31, 2022 and 2021: Year Ended December 31, 2022 2021 Expected life (years) 2.0 2.0 Risk-free interest rate 1.3 % 0.1 % - 0.2 % Dividend yield 1.1 % 0.9 % - 1.2 % Expected volatility 48.5 % 52.0 % The Company uses the Black-Scholes option pricing model to determine the estimated fair value of ESPP shares. The determinations of these assumptions are outlined below: Expected life— The expected life assumption is based on analysis of the Company’s historical employee exercise patterns. The expected life of options granted under the ESPP represents the offering period of two years . Effective December 1, 2023, the expected life of options granted under the ESPP was changed to one year . Volatility— Due to limited historical trading data, volatility is calculated based on a peer group over the most recent period that represents the remaining term of the vesting period as of the valuation date. For ESPP with the expected life of one year , volatility is calculated based on the Company’s stock price. Risk-free interest rate— The risk-free interest rate assumption is based on the U.S. Treasury rate for issues, commensurate with the expected life of the options granted. Dividend yield— Following the Separation in October 2022, the Company does not expect to pay dividends in the foreseeable future. Prior to the Separation, the Former Parent determined the expected dividend yield based on cash dividends declared by the board of directors for the previous four quarters and dividing that result by the average closing price of the Former Parent’s common stock for the quarter. Cash dividends were not paid on stock options, restricted stock units, or unvested restricted stock awards. Stock Options The following table provides the Company’s stock option activity from the Separation Date to December 31, 2023 (in thousands, except per share amounts): Number of Weighted Weighted Aggregate Balance at December 31, 2022 146 $ 25.48 1.89 $ — Options canceled / forfeited / expired ( 40 ) $ 21.76 Balance at December 31, 2023 (1) 106 $ 26.87 1.69 $ — (1) The ending balance at December 31, 2023 represents stock options that were fully vested and exercisable. Restricted Stock Units Information with respect to outstanding RSUs (including both time-based vesting and performance-based vesting) as of December 31, 2023 is as follows (in thousands, except per share amounts): Number of Shares Number of Shares Total Number Weighted Average Balance at December 31, 2022 3,713 891 4,604 $ 20.35 Granted 3,204 1,009 4,213 $ 11.64 Vested / released ( 1,231 ) ( 15 ) ( 1,246 ) $ 18.44 Canceled / forfeited ( 290 ) ( 214 ) ( 504 ) $ 20.20 Balance at December 31, 2023 5,396 1,671 7,067 $ 15.51 Performance-Based Awards From time to time, the Company may grant PSUs to senior executives, certain employees, and consultants. The value and the vesting of such PSUs are generally linked to one or more performance goals or certain market conditions determined by the Company, in each case on a specified date or dates or over any period or periods determined by the Company, and may range from zero to 200 % of the grant. For PSUs subject to market conditions, the fair value per award is fixed at the grant date and the amount of compensation expense is not adjusted during the performance period regardless of changes in the level of achievement of the market condition. In April 2023, in accordance with the EMA executed by the Company and the Former Parent in connection with the Separation, the Company modified certain vesting conditions related to market-based PSUs granted in 2022, resulting in a total incremental compensation expense of $ 2.9 million, which is expected to be recognized over the remaining requisite service period through April 2025. The Company uses the closing trading price of its common stock on the date of grant as the fair value of awards of RSUs and PSUs that are based on Company-designated performance targets. For PSUs that are based on market conditions, or market-based PSUs, fair value is estimated by using a Monte Carlo simulation on the date of grant. The following assumptions were used to value the market-based PSUs granted during the period: Year Ended December 31, 2023 2022 2021 Expected life (years) 1.5 — 2.8 3.0 3.0 Risk-free interest rate 4.54 % — 4.96 % 2.8 % 0.3 % Dividend yield 0.00 % 1.2 % 1.0 % Expected volatility 44.11 % — 51.19 % 40.9 % 47.9 % Assumptions used in the years ended December 31, 2022 and 2021 were for market-based PSUs granted by the Former Parent. Stock-Based Compensation Prior to the Separation, the stock-based compensation expense was based on the expense for employees specifically identifiable to Xperi. Consequently, the amounts presented are not necessarily indicative of future awards and do not necessarily reflect the costs that the Company would have incurred as an independent company. Total stock-based compensation expense for the years ended December 31, 2023, 2022 and 2021 is as follows (in thousands): Year Ended December 31, 2023 2022 2021 Cost of revenue, excluding depreciation and amortization of intangible assets $ 3,466 $ 2,906 $ 1,972 Research and development 25,276 21,561 17,914 Selling, general and administrative 40,789 20,836 13,623 Total stock-based compensation expense $ 69,531 $ 45,303 $ 33,509 Stock-based compensation expense categorized by award type for the years ended December 31, 2023, 2022 and 2021 is summarized in the table below (in thousands): Year Ended December 31, 2023 2022 2021 Restricted stock awards and units $ 64,179 $ 42,208 $ 30,015 Stock options — 368 66 ESPP 5,352 2,727 3,428 Total stock-based compensation expense $ 69,531 $ 45,303 $ 33,509 In addition, for the years ended December 31, 2022 and 2021, $ 6.9 million and $ 9.2 million, respectively, of stock-based compensation expense was recognized in operating results as part of the corporate and shared functional employees’ expenses allocation. As of December 31, 2023, unrecognized stock-based compensation expense related to unvested stock-based awards is as follows (amounts in thousands): December 31, 2023 Unrecognized Stock-Based Compensation Weighted-Average Period to Recognize Expense RSUs and PSUs $ 88,151 2.1 ESPP 5,532 0.9 Total unrecognized stock-based compensation expense $ 93,683 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 14 – INCOME TAXES The components of loss before taxes are as follows (in thousands): Year Ended December 31, 2023 2022 2021 U.S. $ ( 142,447 ) $ ( 667,612 ) $ ( 123,201 ) Foreign 12,801 ( 80,005 ) ( 37,037 ) Loss before taxes $ ( 129,646 ) $ ( 747,617 ) $ ( 160,238 ) The provision for income taxes consisted of the following (in thousands): Year Ended December 31, 2023 2022 2021 Current: U.S. federal $ 1,398 $ — $ — Foreign 16,546 21,252 12,531 State and local 694 1,723 ( 604 ) Total current 18,638 22,975 11,927 Deferred: U.S. federal 19 ( 5,431 ) 1,215 Foreign ( 8,113 ) ( 3,871 ) 7,116 State and local ( 502 ) ( 84 ) ( 1,418 ) Total deferred ( 8,596 ) ( 9,386 ) 6,913 Provision for income taxes $ 10,042 $ 13,589 $ 18,840 Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts for income tax purposes. As of December 31, 2023, the Company released $ 2.6 million of valuation allowance associated with certain foreign deferred tax assets due to the change in circumstances that affect the realizability of those deferred tax assets. Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands): December 31, 2023 2022 Deferred tax assets: Net operating losses $ 22,442 $ 19,477 Research credits 10,513 6,791 Foreign tax credits 5,796 2,119 Accrued expenses 25,729 27,987 Basis difference in fixed and intangible assets 38,899 16,290 Deferred revenue 10,652 9,556 Capitalized R&D 87,465 63,601 Lease liability 11,075 13,310 Other tax credits 2,318 1,673 Gross deferred tax assets 214,889 160,804 Valuation allowance ( 157,595 ) ( 111,779 ) Net deferred tax assets 57,294 49,025 Deferred tax liabilities: Acquired intangible assets ( 36,416 ) ( 45,424 ) Revenue recognition ( 4,574 ) ( 2,292 ) Operating ROU assets ( 9,758 ) ( 10,550 ) Other ( 8,436 ) ( 1,562 ) Gross deferred tax liabilities ( 59,184 ) ( 59,828 ) Net deferred tax liabilities $ ( 1,890 ) $ ( 10,803 ) The need for a valuation allowance requires an assessment of both positive and negative evidence when determining whether it is more-likely-than-not that deferred tax assets are recoverable. Such assessment is required on a jurisdiction-by-jurisdiction basis. In making such assessment, significant weight is given to evidence that can be objectively verified. After considering both positive and negative evidence to assess the recoverability of the Company’s net deferred tax assets, the Company determined that it was not more-likely-than-not that it would realize its federal, certain state and certain foreign deferred tax assets. The Company intends to continue maintaining a valuation allowance on its federal deferred tax assets until there is sufficient evidence to support the reversal of all or some portion of these allowances. Release of the valuation allowance would result in the recognition of certain federal deferred tax assets and a decrease to income tax expense for the period the release is recorded. The exact timing and amount of the valuation allowance release depends on the level of profitability that the Company is able to achieve. As of December 31, 2023, the Company had recorded deferred tax assets for the tax effects of the following gross tax loss carryforwards (in thousands): Carry forward Amount Years of Expiration Federal $ 29,202 2027 —indefinite State (post-apportionment) $ 93,258 2024 — 2042 As of December 31, 2023, the Company had the following credits available to reduce future income tax expense (in thousands): Carry forward Amount Years of Expiration Federal research and development credits $ 9,451 2024 — 2043 State research and development credits $ 17,356 2024 —indefinite Foreign tax credits $ 8,114 2026 — 2033 The deferred tax asset valuation allowance and changes in the deferred tax asset valuation allowance consisted of the following (in thousands): Year Ended December 31, 2023 2022 2021 Balance at beginning of period $ 111,779 $ 101,529 $ 52,676 Charged (credited) to expenses 46,397 19,321 59,249 Charged (credited) to other accounts ( 581 ) ( 9,071 ) ( 10,396 ) Balance at end of period $ 157,595 $ 111,779 $ 101,529 Income tax expense differed from the amounts computed by applying the U.S. federal income tax rate to loss before income taxes as a result of the following (in thousands): Year Ended December 31, 2023 2022 2021 U.S. federal statutory rate $ ( 27,226 ) $ ( 157,032 ) $ ( 33,650 ) State, net of federal benefit 532 1,974 ( 258 ) Stock-based compensation 6,758 2,036 ( 1,740 ) Executive compensation limitation 1,911 2,286 2,221 Research tax credit ( 6,983 ) ( 5,225 ) ( 2,321 ) Foreign withholding tax 12,811 8,079 11,018 Goodwill impairment — 107,831 — Restructuring and transaction costs 649 293 — Divestiture-related activity ( 26,915 ) — — Foreign rate differential ( 7,354 ) 19,337 16,407 Foreign tax credit ( 10,124 ) ( 977 ) ( 8,928 ) Change in valuation allowance 50,314 20,491 39,063 Foreign income inclusions 10,151 7,656 — Unrecognized tax benefits 746 6,798 1,526 Change in estimates 3,844 ( 1,802 ) ( 4,674 ) Others 928 1,844 176 Total $ 10,042 $ 13,589 $ 18,840 At December 31, 2023, the Company asserts that it will not permanently reinvest its foreign earnings outside the United States. The Company anticipates that the cash from its foreign earnings may be used domestically to fund operations or used for other business needs. The accumulated undistributed earnings generated by its foreign subsidiaries was approximately $ 29.7 million. Substantially all of these earnings will not be taxable upon repatriation to the United States since they will be treated as previously taxed earnings and profits. The U.S. state income taxes and foreign withholding taxes related to the distributable cash of the Company’s foreign subsidiaries are not expected to be material. As of December 31, 2023, unrecognized tax benefits were approximately $ 23.6 million, of which $ 9.6 million would affect the effective tax rate, if recognized. As of December 31, 2022, unrecognized tax benefits were approximately $ 19.4 million, of which $ 8.8 million would affect the effective tax rate, if recognized. As of December 31, 2021, unrecognized tax benefits were approximately $ 8.4 million, of which $ 1.7 million would affect the effective tax rate, if recognized. The Company is unable to make a reasonable estimate of the timing of the long-term payments or the amount by which the unrecognized tax benefits will increase or decrease over the next 12 months. The reconciliation of the Company’s unrecognized tax benefits for the years ended December 31, 2023, 2022 and 2021 is as follows (in thousands): Year Ended December 31, 2023 2022 2021 Total unrecognized tax benefits at January 1 $ 19,354 $ 8,438 $ 7,106 Changes due to mergers and transactions — 1,682 ( 1,440 ) Increases for tax positions related to the current year 4,070 8,793 1,962 Increases for tax positions related to prior years 961 444 1,303 Decreases for tax positions related to prior years ( 798 ) ( 3 ) ( 493 ) Total unrecognized tax benefits at December 31 $ 23,587 $ 19,354 $ 8,438 It is the Company’s policy to classify accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes. For the year ended December 31, 2023, the Company recognized interest and penalties of $ 0.3 million related to unrecognized tax benefits, whereas interest and penalties were immaterial for the years ended December 31, 2022 and 2021. As of December 31, 2023, accrued interest and penalties were $ 0.4 million, whereas amounts accrued as of December 31, 2022 were immaterial. With few exceptions, the Company’s 2019 through 2023 tax years are open and subject to potential examination in one or more jurisdictions at December 31, 2023 . In addition, in the United States, any net operating losses or credits that were generated in 2022 or earlier but not yet fully utilized in a year that is closed under the statute of limitations may also be subject to adjustment if the Former Parent were to be audited. |
Geographic Information
Geographic Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Geographic Information | NOTE 15 - GEOGRAPHIC INFORMATION Long-lived assets consist primarily of property and equipment and operating lease ROU assets. The following table summarizes long-lived assets by geographic region (in thousands): December 31, 2023 2022 U.S. $ 69,725 $ 81,570 Europe 3,416 8,865 Asia and other 8,328 10,293 Total $ 81,469 $ 100,728 See Note 3— Revenue for information on revenue by geographic region. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 11 – COMMITMENTS AND CONTINGENCIES Unconditional Purchase Obligations In the ordinary course of business, the Company enters into contractual agreements with third parties that include non-cancelable payment obligations, for which it is liable in future periods. These arrangements primarily include unconditional purchase obligations to service providers. Total future unconditional purchase obligations as o f December 31, 2023 were as follows (in thousands): Year Ending December 31: Amounts 2024 $ 44,156 2025 30,185 2026 28,310 2027 8,701 2028 8,324 Thereafter 23,552 Total $ 143,228 Inventory Purchase Commitment The Company uses contract manufacturers to provide manufacturing services for its products. During the normal course of business, in order to manage manufacturing lead times and help ensure adequate supply, the Company enters into agreements with its contract manufacturers that either allow them to procure inventory based on criteria as defined by the Company or that establish the parameters defining the Company’s requirements. A significant portion of the Company’s purchase commitments arising from these agreements consist of firm, non-cancelable and unconditional purchase commitments. In certain instances, these agreements allow the Company the option to cancel, reschedule or adjust the Company’s requirements based on its business needs prior to firm orders being placed. As of December 31, 2023, the Company had total inventory purchase commitme nts of $ 0.4 million. Indemnifications In the normal course of business, the Company provides indemnifications of varying scopes and amounts to certain of its licensees, customers, and business partners against claims made by third parties arising from the use of the Company's products, intellectual property, services, or technologies. The Company cannot reasonably estimate the possible range of losses that may be incurred pursuant to its indemnification obligations, if any. Variables affecting any such assessment include, but are not limited to: the scope of the contractual indemnification obligation; the nature of the third party claim asserted; the relative merits of the third party claim; the financial ability of the third party claimant to engage in protracted litigation; the number of parties seeking indemnification; the nature and amount of damages claimed by the party suing the indemnified party; and the willingness of such party to engage in settlement negotiations. The Company has received requests for indemnification, but to date none has been material, and no liability has been recorded in the Company’s financial statements. As permitted under Delaware law, the Company has agreements whereby it indemnifies its officers and directors for certain events or occurrences while the officer or director is, or was, serving at the Company’s request in such capacity. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, the Company believes, given the absence of any such payments in the Company’s history, and the estimated low probability of such payments in the future, that the estimated fair value of these indemnification agreements is immaterial. In addition, the Company has directors’ and officers’ liability insurance coverage that is intended to reduce its financial exposure and may enable the Company to recover any payments under the indemnification agreements, should they occur. Contingencies The Company and its subsidiaries have been involved in litigation matters and claims in the normal course of business. In the past, the Company or its subsidiaries have litigated to enforce their respective patents and other intellectual property rights, to enforce the terms of license agreements, to determine infringement or validity of intellectual property rights, and to defend themselves or their customers against claims of infringement or breach of contract. The Company expects it or its subsidiaries will be involved in similar legal proceedings in the future, including proceedings to ensure proper and full payment of royalties by licensees under the terms of their license agreements. An adverse decision in any legal actions could result in a loss of the Company’s proprietary rights, subject the Company to significant liabilities, require the Company to seek licenses from others, limit the value of the Company’s licensed technology or otherwise negatively impact the Company’s stock price or its business and consolidated financial results. |
Related Party Transactions and
Related Party Transactions and Net Investment By Former Parent | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions and Net Investment By Former Parent | NOTE 16 - RELATED PARTY TRANSACTIONS AND NET INVESTMENT BY FORMER PARENT For periods prior to the Separation, the Consolidated Financial Statements have been prepared on a standalone basis and were derived from the consolidated financial statements and accounting records of the Former Parent. The following disclosure summarizes activity prior to the Separation between the Company and the Former Parent, including affiliates of the Former Parent that were not part of the Separation. Allocation of Corporate Expenses Prior to Separation, the Consolidated Financial Statements included expenses for certain management and support functions which were provided on a centralized basis within the Former Parent, as described in Note 2— Summary of Significant Accounting Policies . These management and support functions include, but are not limited to, executive management, sales and marketing, finance, legal, information technology, employee benefits administration, stock-based compensation, treasury, risk management, procurement and other shared services. These allocations were made on a direct usage basis when identifiable, with the remainder allocated on a pro rata basis of billing, revenue, headcount or other measures of the Company and the Former Parent. The amount of these allocations from the Former Parent was $ 47.6 million, which included $ 3.0 million for depreciation expenses and $ 44.6 million for selling, general and administrative for the year ended December 31, 2022; and $ 59.7 million, which included $ 4.6 million for depreciation expense, and $ 55.1 million for selling, general and administrative expense for the year ended December 31, 2021. Management believes these cost allocations are a reasonable reflection of the utilization of services provided to, or the benefit derived by, the Company during the periods presented. The allocations may not, however, be indicative of the actual expenses that would have been incurred had the Company operated as a standalone public company. Actual costs that may have been incurred if the Company had been a standalone public company would depend on a number of factors, such as the chosen organizational structure, whether functions were outsourced or performed by the Company’s employees, and strategic decisions made in areas such as selling, information technology and infrastructure. Net Transfers from Former Parent A reconciliation of Net transfers from the Former Parent on the Consolidated Statements of Equity to the corresponding amount on the Consolidated Statements of Cash Flows was as follows (i n thousands): Year Ended December 31, 2022 2021 Total net transfers from Former Parent per Consolidated Statements of Equity $ 100,915 $ 116,830 Stock-based compensation ( 45,303 ) ( 33,509 ) Net proceeds from capital contributions by Former Parent 83,235 — Issuance of equity to noncontrolling interest ( 1,423 ) 9 Other ( 1,387 ) — Total net transfers from Former Parent per Consolidated Statements of Cash Flows $ 136,037 $ 83,330 |
Benefit Plan
Benefit Plan | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Benefit Plan | NOTE 17 – BENEFIT PLAN The Company maintains a 401(k) retirement savings plan that allows voluntary contributions by all eligible U.S. employees upon their hire date. Eligible employees may elect to contribute up to the maximum amount allowed under Internal Revenue Service regulations. The Company can make discretionary contributions under the 401(k) plan. During the years ended December 31, 2023, 2022 and 2021, the Company’s employer 401(k) match expense was approximately $ 4.3 million, $ 5.4 million, and $ 3.6 million, respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 18 - SUBSEQUENT EVENT As previously discussed in Note 7, in December 2023, the Company entered into a definitive agreement with the Purchaser to divest its AutoSense in-cabin safety business and related imaging solutions. All of the assets and liabilities associated with the Divestiture were classified as held for sale as of December 31, 2023. The Divestiture was completed on January 31, 2024. The Company is currently evaluating the accounting impact resulting from the Divestiture, which it expects to include in its financial results in the first quarter of 2024. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Bas is of Presentation The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States (“U.S.”) and the applicable rules and regulations of the Securities and Exchange Commission (the “SEC”). The Company’s fiscal year ends on December 31. The Company employs a calendar month-end reporting period for its quarterly reporting. During the three months ended September 30, 2022, all of the assets and liabilities of the Xperi Product business had been transferred to a legal entity (the “Transfer”) under the common control of Xperi. Subsequent to this transfer and through December 31, 2022, the Company's financial statements and accompanying notes are prepared on a consolidated basis and include Xperi and its subsidiaries in which Xperi has a controlling financial interest. All intercompany balances and transactions are eliminated in consolidation. Prior to the Transfer, the financial statements and accompanying notes of the Xperi Product business were prepared on a combined basis and were derived from the consolidated financial statements and accounting records of the Former Parent as the Company was not historically held by a single legal entity. Net investment by Former Parent, which represents the Former Parent’s total net interest in the recorded net assets of the Company prior to the transfer, is presented within equity on a combined basis in lieu of share capital. All intercompany balances and transactions within the combined businesses of the Company have been eliminated. The Consolidated Balance Sheets of Xperi and its subsidiaries for the pre-Transfer periods include Former Parent’s assets and liabilities that are specifically identifiable or otherwise attributable to the Company. In the fourth quarter of 2018, the Company funded a new subsidiary, Perceive Corporation (“Perceive”), which was created to focus on delivering edge inference solutions. As of December 31, 2023, the Company owned approximately 77.6 % of the outstanding equity interest of Perceive. The operating results of Perceive have been included in the Company’s consolidated financial statements since the fourth quarter of 2018. Prior to the Separation, the Company was dependent on the Former Parent for all of its working capital and financing requirements as the Former Parent used a centralized approach to cash management and financing its operations. Financial transactions relating to the Company were accounted for as equity contributions from the Former Parent on the Consolidated Balance Sheets. Accordingly, none of the Former Parent’s cash and cash equivalents were allocated to the Company for any of the periods presented, unless those balances were directly attributable to the Company. The Company reflects transfers of cash to and from the Former Parent’s cash management system within equity as a component of Net investment by Former Parent on a combined basis and as a component of net capital contribution from Former Parent on a consolidated basis. Other than the debt incurred in connection with the acquisition of Vewd Software Holdings Limited (“Vewd”) discussed in Note 7, the Former Parent’s long-term debt has not been attributed to the Company for any of the periods presented because the Former Parent’s borrowings are not the legal obligation of the Company. Prior to the Separation, the Consolidated Statements of Operations and Comprehensive Loss of the Company reflect allocations of general corporate expenses from the Former Parent, including, but not limited to, executive management, sales and marketing, finance, legal, information technology, employee benefits administration, stock-based compensation, treasury, risk management, procurement, and other shared services. These allocations were made on a direct usage basis when identifiable, with the remainder allocated on a pro rata basis of billing, revenue, headcount, or other measures as deemed appropriate. Management of the Company and Former Parent consider these allocations to be a reasonable reflection of the utilization of services by, or the benefits provided to, the Company. The allocations may not, however, reflect the expenses the Company would have incurred as a standalone company for the periods presented. Actual costs that may have been incurred if the Company had been a standalone company would depend on a number of factors, such as the chosen organizational structure, whether functions were outsourced or performed by employees and decisions with respect to areas such as facilities, information technology and operating infrastructure. During the periods prior to the Separation that are presented in the accompanying Consolidated Financial Statements, the Company’s income tax expense (benefit) and deferred tax balances were included in the Former Parent’s income tax returns. Income tax expense (benefit) and deferred tax balances contained in these Consolidated Financial Statements for periods prior to the Separation are presented on a separate return basis, as if the Company had filed its own income tax returns. As a result, actual tax transactions included in the consolidated financial statements of the Former Parent may or may not be included in the Consolidated Financial Statements of the Company. Similarly, the tax treatment of certain items reflected in the Consolidated Financial Statements of the Company may or may not be reflected in the consolidated financial statements and income tax returns of the Former Parent. The taxes recorded in the Consolidated Statements of Operations for periods prior to the Separation Date are not necessarily representative of the taxes that arose when the Company filed its income tax returns independent from the Former Parent’s returns for the tax year ended December 31, 2022. The income tax expense (benefit) recorded for the three months ended December 31, 2022 is presented as if activity from this period would have been included in the same separate return as the nine months of activity through the Separation Date. Deferred tax balances for the period ended December 31, 2022 are presented for the standalone Company. In the Consolidated Balance Sheet as of December 31, 2022 included in this Form 10-K filing, the Company has revised the long-term deferred tax liabilities and other long-term liabilities line items to correct an immaterial error in the classification of unrecognized tax benefits. The adjustment results in a $ 7.7 million decrease of long-term deferred tax liabilities and an increase in other long-term liabilities. The revision has no impact on total long-term liabilities as of December 31, 2022. In relation to this adjustment, the Company has also revised its Consolidated Statement of Cash Flows for the year ended December 31, 2022 to decrease deferred income tax and increase accrued and other liabilities within the changes in operating assets and liabilities section by $ 7.7 million, with no changes to net cash flows from operating activities for 2022. Further, the revision has no impact on the Company’s 2023 consolidated financial statements. |
Principles of Consolidation | Principles of Consolidation Subsequent to the Transfer during the third quarter of 2022 and through December 31, 2022, the Company’s financial statements were prepared on a consolidated basis and include the accounts of the Company and its wholly owned subsidiaries, as well as an entity in which the Company has a controlling financial interest. All intercompany accounts and transactions have been eliminated in consolidation. Prior to the Transfer and through the date in the third quarter of 2022 when all subsidiaries of Xperi Product were owned by the parent company of Xperi Product, the accompanying financial statements of Xperi Product business were prepared on a combined basis and were derived from the consolidated financial statements and accounting records of the Former Parent as the Company was not historically held by a single legal entity. Net investment by Former Parent, which represents the Former Parent’s total net interest in the recorded net assets of the Company prior to the Transfer and through the date when all subsidiaries of Xperi Product were owned by the parent company of Xperi Product, is presented within equity on a combined basis in lieu of share capital. All intercompany balances and transactions within the combined business of the Company have been eliminated. |
Foreign Currency Remeasurement and Transactions | Foreign Currency Remeasurement and Transactions The functional currency of the Company’s foreign subsidiaries is the U.S. dollar. Accordingly, each foreign subsidiary remeasures monetary assets and liabilities at period-end exchange rates, while non-monetary items are remeasured at historical exchange rates. Revenues and expenses are remeasured at the exchange rates in effect on the day the transaction occurs, except for those expenses related to non-monetary assets and liabilities, which are remeasured at historical exchange rates. Remeasurement adjustments are recognized in other (expense) income, net in the Consolidated Statements of Operations. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The accounting estimates and assumptions that require management’s most significant, challenging, and subjective judgment include the estimation of licensees’ quarterly royalties prior to receiving the royalty reports, the determination of stand-alone selling price and the transaction price in an arrangement with multiple performance obligations, the assessment of the recoverability of goodwill, the assessment of useful lives and recoverability of other intangible assets and long-lived assets, recognition and measurement of current and deferred income tax assets and liabilities, the assessment of unrecognized tax benefits, and purchase accounting resulting from business combinations. Actual results experienced by the Company may differ from management’s estimates. |
Net Investment by Former Parent | Net Investment by Former Parent Net investment by Former Parent on the Consolidated Balance Sheets and Consolidated Statements of Equity represents the Former Parent’s historical investment in the Company, the net effect of transactions with and allocations from the Former Parent, and the Company’s accumulated deficit. |
Net Loss Per Share | Net Loss Per Share Net loss per share is computed by dividing net loss for the period by the weighted-average number of common shares outstanding during the period. For periods prior to the Separation, the calculations of basic and diluted loss per share were based on the number of shares outstanding on October 1, 2022, the Separation Date. In addition, it is assumed that there were no dilutive equity instruments as there were no Xperi stock-based awards outstanding prior to the Separation. Dilutive weighted-average common shares outstanding do not include unvested restricted stock units and stock options for the periods presented because the effect of their inclusion would have been anti-dilutive. |
Revenue Recognition | Revenue Recognition Revenue is recognized when control of the promised goods or services is transferred to a customer in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services, which may include various combinations of goods and services which are generally capable of being distinct and accounted for as separate performance obligations. See Note 3 —Revenue for detailed discussion on revenue recognition and disaggregation of revenue. |
Segment Reporting | Segment Reporting Operating segments are defined as components of an enterprise for which separate financial information is available and that is evaluated on a regular basis by the chief operating decision-maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The CODM reviews financial information presented on a consolidated basis for the purposes of making operating decisions, allocating resources, and evaluating financial performance. As such, the Company has determined that it has one operating segment, which is also its reportable segment. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less at the date of purchase to be cash equivalents. There were no cash eq uivalents as of December 31, 2023 and 2022. Cash and cash equivalents are maintained with various financial institutions. |
Non-Marketable Equity Investments | Non-Marketable Equity Investments Investments in entities over which the Company has the ability to exercise significant influence, but does not hold a controlling interest, are accounted for using the equity method. Under the equity method, the Company records its proportionate share of income or loss in other income (expense), net, in the Consolidated Statements of Operations. Investments in entities over which the Company does not have the ability to exercise significant influence and which do not have readily determinable fair values, are initially recognized at cost and remeasured through earnings when there is an observable transaction involving the same or similar investment of the same issuer, or due to an impairment (referred to as the “measurement alternative”). The fair value of non-marketable equity investments is not estimated if there are no identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. The Company monitors its non-marketable securities portfolio for potential impairment. When there is evidence that the expected fair value of the investment has declined to below the recorded cost, the impairment loss is recorded in other (expense) income, net, in the Consolidated Statements of Operations. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined as 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. The carrying amount of cash equivalents, accounts receivable, accounts payable and accrued liabilities approximates fair value due to the short-term nature of these instrume nts. Long-term debt is carried at amortized cost and measured at fair value on a quarterly basis for disclosure purposes. |
Derivative Instruments | Derivati ve Instruments The Company uses derivative financial instruments to manage foreign currency exchange rate risk. The Company does not enter into derivative transactions for trading purposes. The Company’s derivative financial instruments are recorded on the Consolidated Balance Sheets as assets or liabilities measured at fair value. For derivatives designated as a hedge, and effective as part of a hedge transaction, the effective portion of the gain or loss on the hedging derivative instrument is reported as a component of other comprehensive income (loss) and as a basis adjustment to the underlying hedged item and reclassified to earnings in the period in which the hedged item affects earnings. To the extent derivatives do not qualify or are not designated as hedges, or are ineffective, their changes in fair value are recorded in earnings immediately. |
Concentration of Credit and Other Risks | Concentration of Credit and Other Risks Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. The Company maintains cash and cash equivalents with large financial institutions, and at times, the deposits may exceed the federally insured limits. As part of its risk management processes, the Company performs periodic evaluations of the relative credit standing of these financial institutions. The Company has not sustained material credit losses from instruments held at these financial institutions. In addition, the Company has cash and cash equivalents held in international bank accounts that are denominated in various foreign currencies and has established risk management strategies designed to minimize the impact of certain currency exchange rate fluctuations. The Company believes that any concentration of credit risk in its accounts receivable is substantially mitigated by its evaluation process, relatively short collection terms, and the high level of credit worthiness of its customers. The Company performs ongoing credit evaluations of its customers’ financial condition and limits the amount of credit extended when deemed necessary, but generally requires no collateral. There were no individually significant customers with revenue exceeding 10% of total revenue for the years ended December 31, 2023, 2022 and 2021. As of December 31, 2023 and 2022, no single customer represented 10 % or more of the Company’s net balance of accounts receivable. |
Accounts Receivable and Allowance for Credit Losses | Accounts Receivable and Allowance for Credit Losses The timing of revenue recognition may differ from the timing of invoicing to customers. The Company records a receivable when revenue is recognized prior to cash collection. Payment terms and conditions vary by contract type, location of customer and the products or services offered, although terms generally require payment from a customer within 30 to 60 days. When the timing of revenue recognition differs from the timing of cash collection, an evaluation is performed to determine whether the contract includes a significant financing component. The allowance for credit losses, which includes the allowance for accounts receivable and unbilled contracts receivable, represents the Company’s best estimate of lifetime expected credit losses inherent in those financial assets. The Company’s lifetime expected credit losses are determined using relevant information about past events (including historical experience), current conditions, and reasonable and supportable forecasts that affect collectability. The Company monitors its credit exposure through ongoing credit evaluations of its customers’ financial condition and limits the amount of credit extended when deemed necessary. In addition, the Company performs routine credit management activities such as timely account reconciliations, dispute resolution, and payment confirmations. The Company may employ collection agencies and legal counsel to pursue recovery of defaulted receivables. |
Inventory | Inventory Inventories consist primarily of TiVo Stream 4K, finished DVRs, non-DVRs and accessories and are stated at the lower of cost or net realizable value on an aggregate basis. Cost is computed using standard cost, which approximates actual cost on a first-in, first-out basis. Adjustments to reduce the carrying amount of inventory to the lower of cost or net realizable value are made, if required, for excess or obsolete goods, which includes a review of, among other factors, demand requirements and market conditions. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost, less accumulated depreciation. Depreciation is calculated using the straight-line method over the related assets’ estimated useful lives: Equipment, furniture and other 1 to 5 years Leasehold improvements Lesser of related lease term or 5 years Building and improvements Up to 30 years Expenditures that materially increase asset life are capitalized, while ordinary maintenance and repairs are expensed as incurred. |
Capitalization of Cloud Computing Costs | Capitalization of Cloud Computing Costs The Company capitalizes certain costs related to its enterprise cloud computing arrangem ents during the application development stage. During the post-implementation stage, these costs are amortized as hosting fees on a straight-line basis over the term of the hosting arrangements. |
Acquisitions | The Company accounts for acquisitions using the acquisition method of accounting in accordance with Accounting Standard Codification Topic ASC 805, Business Combinations (“ASC 805”). Identifiable assets acquired and liabilities assumed are recorded at their acquisition date fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. Acquisition related costs are expensed as incurred. Upon acquisition, the accounts and results of operations are consolidated as of and subsequent to the acquisition date. When determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect to intangible assets. The Company utilizes commonly accepted valuation techniques, such as the income approach and the cost approach, as appropriate, in establishing the fair value of intangible assets. Typically, key assumptions include projections of cash flows that arise from identifiable intangible assets of acquired businesses as well as disc ount rates based on an analysis of the weighted average cost of capital, adjusted for specific risks associated with the assets. |
Identified Intangible Assets and Goodwill Impairment | Identified Intangible Assets and Goodwill Impairment Identified finite-lived intangible assets consist of acquired patents, existing technology, customer relationships, trademarks and trade names, and non-compete agreements resulting from acquisitions, and acquired patents under asset purchase agreements. The Company’s identified intangible assets are amortized on a straight-line basis over their estimated useful lives, ranging from 1 to 10 years. Identified indefinite-lived intangible assets include legacy TiVo tradenames and trademarks resulting from acquisitions. Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the net tangible and identified intangible assets acquired. Goodwill was not amortized, but rather evaluated for potential impairment annually. As part of its annual goodwill impairment test using the quantitative approach, the Company recognized a goodwill impairment charge of $ 604.6 million for the year ended December 31, 2022. See Note 8— Goodwill Impairment and Intangible Assets, Net for more detail regarding the goodwill impairment. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets include property and equipment, operating lease right-of-use (“ROU”) assets, and intangible assets. The Company reviews its long-lived assets for possible impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. Such events and changes may include: a significant decrease in market value, changes in asset use, negative industry or economic trends, and changes in the Company’s business strategy. The Company measures recoverability of these assets by comparing the carrying amounts to the future undiscounted cash flows that the assets or the asset group are expected to generate. If the carrying value of the assets is not recoverable, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the assets. For identified indefinite-lived intangible assets resulting from acquisitions, the Company evaluates their carrying value on an annual basis, and an impairment charge would be recognized to the extent that the carrying amount of such assets exceeds their estimated fair value. |
Leases | Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease ROU assets, accrued liabilities, and noncurrent operating lease liabilities in the Company’s consolidated balance sheets. The ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the leases do not provide an implicit rate, the Company generally uses its incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The Company’s lease terms may include options to extend or terminate the lease, and these terms are factored into the valuation of ROU assets and liabilities when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheets; expense for these leases is recognized on a straight-line basis over the lease term. Variable lease payments are expensed as incurred and are not included within the lease liability and ROU assets calculation. As a practical expedient, the Company elected to account for lease components and non-lease components such as common area maintenance costs for all data center, office, and facility leases separately . |
Research and Development | Research and Development Research and development costs are comprised primarily of employee-related costs, stock-based compensation expense, engineering consulting expenses associated with new product and technology development, product commercialization, quality assurance and testing costs, as well as costs related to information technology, patent applications and examinations, materials, supplies, and an allocation of facilities costs. All research and development costs are expensed as incurred. |
Stock-based Compensation | Stock-based Compensation Prior to the Separation, certain Company employees participated in the Former Parent’s equity programs. Stock-based compensation expense has been attributed to the Company based on the awards and terms previously granted to the Company’s direct employees, as well as an allocation of the Former Parent’s corporate and shared functional employee expenses. Stock-based compensation is measured at the grant date based on the estimated fair value of the award and is recognized on a straight-line basis, net of estimated forfeitures, over the requisite service or performance period. Forfeiture rates are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. If the actual forfeiture rate is materially different from the estimate, stock-based compensation expense could be significantly different from what was recorded in the current period. The Company uses the closing trading price of its common stock on the date of grant as the fair value of awards of restricted stock units (“RSUs”), and performance-based restricted stock units (“PSUs”) that are based on company-designated performance targets. For PSUs that are based on market conditions, or market-based PSUs, fair value is estimated by using a Monte Carlo simulation on the date of grant. The Company estimates the grant-date fair value of stock to be issued under the employee stock purchase plan (“ESPP”) using the Black-Scholes pricing mod el. |
Income Taxes | Income Taxes Prior to the Separation, the Company’s operations were included in the tax returns filed by the respective Former Parent entities of which the Company’s businesses were a part. Income tax expense and other income tax-related information contained in these Consolidated Financial Statements are presented on a separate return basis as if the Company had filed its own tax returns. The separate return method applies the accounting guidance for income taxes to the Company’s standalone financial statements as if it were a separate taxpayer and a standalone enterprise for the periods presented. The income tax expense (benefit) recorded for the three month period ended December 31, 2022 is presented as if activity from this period would have been included in the same separate return as the nine months of activity through the date of Separation. Current income tax liabilities related to entities which file jointly with the Former Parent are assumed to be immediately settled with the Former Parent and are relieved through the Net Investment by Former Parent and are presented in Net transfers from and to Former Parent in the Consolidated Statements of Cash Flows. Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amount of assets and liabilities and their respective tax bases and operating loss and tax carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates applicable to the years in which those temporary differences are expected to reverse. A valuation allowance is recorded to reduce deferred tax assets to the amount that is more likely than not to be realized. From time to time, the Company engages in transactions in which the tax consequences may be subject to uncertainty. Significant judgment is required in assessing and estimating the tax consequences of these transactions. Accruals for unrecognized tax benefit liabilities, which represent the difference between a tax position taken or expected to be taken in a tax return and the benefit recognized for financial reporting purposes, are recorded when the Company believes it is not more-likely-than-not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. Adjustments to unrecognized tax benefits are recognized when facts and circumstances change, such as the closing of a tax audit, notice of an assessment by a taxing authority or the refinement of an estimate. Income tax benefit includes the effects of adjustments to unrecognized tax benefits, as well as any related interest and penalties. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and are presented within selling, general and administrative expense in the Consolidated Statements of Operations. Advertising expenses for the years ended December 31, 2023, 2022 and 2021, were $ 8.1 million, $ 5.5 million, and $ 9.1 million, respectively. |
Contingencies | Contingencies From time to time, the Company may be involved in legal and administrative proceedings and claims of various types. The Company records a liability in its consolidated financial statements for these matters when a loss is known or considered probable and the amount can be reasonably estimated. Management reviews these estimates in each accounting period as additional information becomes known and adjusts the loss provision when appropriate. If the loss is not probable or cannot be reasonably estimated, a liability is not recorded in the consolidated financial statements. If a loss is probable but the amount of loss cannot be reasonably estimated, the Company discloses the loss contingency and an estimate of possible loss or range of loss (unless such an estimate cannot be made). The Company does not recognize gain contingencies until they are realized. Legal costs incurred in connection with loss contingencies are expensed as incurred. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Standards Adopted In October 2021, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update No. 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU 2021-08”), which amends the guidance in ASC 805 to require that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with revenue recognition guidance under ASC 606. As a result of the amendments, it is expected that an acquirer will generally recognize and measure acquired contract assets and contract liabilities in a manner consistent with how the acquiree recognized and measured them in its preacquisition financial statements. The Company adopted this standard on January 1, 2022 . The adoption did no t have an impact on the Company’s consolidated financial statements. Accounting Standards Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which requires significant segment expenses and other segment related items to be disclosed on an interim and annual basis. The new disclosure requirements are also applicable to companies with a single reportable segment. This guidance is effective on a retrospective basis for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of this guidance on the disclosures within its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which requires disclosure of specific categories in the effective tax rate reconciliation and additional information for reconciling items that meet a quantitative threshold and further disaggregation of income taxes paid for individually significant jurisdictions. This guidance is effective on a prospective or retrospective basis for annual periods beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of this guidance on the disclosures within its consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Life | Property and equipment are recorded at cost, less accumulated depreciation. Depreciation is calculated using the straight-line method over the related assets’ estimated useful lives: Equipment, furniture and other 1 to 5 years Leasehold improvements Lesser of related lease term or 5 years Building and improvements Up to 30 years |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue by Product Category and Timing of Recognition | The following table summarizes revenue by timing of recognition (in thousands): Year Ended December 31, 2023 2022 2021 Recognized over time $ 410,865 $ 401,668 $ 412,334 Recognized at a point in time 110,469 100,592 74,149 Total revenue $ 521,334 $ 502,260 $ 486,483 The following table summarizes revenue by product category (in thousands): Year Ended December 31, 2023 2022 2021 Pay-TV $ 244,708 $ 249,457 $ 262,929 Consumer Electronics 132,355 128,395 99,529 Connected Car 94,864 84,201 88,306 Media Platform 49,407 40,207 35,719 Total revenue $ 521,334 $ 502,260 $ 486,483 |
Schedule of Geographic Revenue Information | The following table presents the Company’s revenue disaggregated by geographic area (in thousands): Year Ended December 31, 2023 2022 2021 U.S. $ 267,998 51 % $ 278,920 56 % $ 249,537 51 % Japan 83,138 16 65,551 13 70,956 15 Europe and Middle East 41,113 8 42,846 9 56,317 12 China 35,809 7 30,932 6 18,027 4 Latin America 31,863 6 27,212 5 22,894 4 Other 61,413 12 56,799 11 68,752 14 Total revenue $ 521,334 100 % $ 502,260 100 % $ 486,483 100 % |
Schedule of Revenue Recognized in Period | The following table presents additional revenue disclosures (in thousands): Years Ended December 31, 2023 2022 2021 Revenue recognized in the period from: Amounts included in deferred revenue at the beginning of the period (1) $ 20,620 $ 24,307 $ 23,863 Performance obligations satisfied in previous periods (true (2)(3) $ 11,863 $ 30,561 $ 8,772 (1) The Company has identified an error in the disclosure of the amount of revenue recognized from the beginning balance of deferred revenue for the year ended December 31, 2022 in this Form 10-K filing. The amount for the year ended December 31, 2022 was revised to correct an immaterial error, which resulted in the disclosure of the amount recognized increasing by $ 4.6 million from the amount previously disclosed. There was no impact on any amounts recorded in the Company’s consolidated financial statements for any period presented. (2) True ups represent the differences between the Company’s quarterly estimates of per-unit royalty revenue and actual production/sales-based royalties reported by licensees in the following period. Recoveries represent corrections or revisions to previously reported per-unit royalties by licensees, generally resulting from the Company’s inquiries or compliance audits. Settlements represent resolutions of litigation or disputes during the period for past royalties owed. (3) For the year ended December 31, 2022, the Company recorded revenue from both the settlement of a contract dispute with a large mobile imaging customer, and the execution of a long-term license agreement with the same large mobile imaging customer. The long-term license agreement was effective as of the expiration of the prior agreement, and the Company expected to record revenue from the license agreement in future periods. |
Schedule of Remaining Performance Obligations | Company’s estimated remaining revenue under contracts with performance obligations was as follows (in thousands): Year Ending December 31: Amounts 2024 $ 46,763 2025 19,127 2026 6,375 2027 2,292 2028 1,031 Thereafter 1,203 Total $ 76,791 |
Schedule of Allowance for Credit Losses | The following table presents the activity in the allowance for credit losses for the years ended December 31, 2023, 2022 and 2021 (in thousands): Year Ended December 31, 2023 2022 2021 Accounts Receivable Unbilled Contracts Receivable Accounts Receivable Unbilled Contracts Receivable Accounts Receivable Unbilled Contracts Receivable Beginning balance $ 1,950 $ 369 $ 2,255 $ 468 $ 6,454 $ 1,414 Provision for credit losses 497 52 799 ( 99 ) 714 38 Recoveries/charge-off ( 541 ) ( 231 ) ( 1,104 ) — ( 4,913 ) ( 984 ) Balance at end of period $ 1,906 $ 190 $ 1,950 $ 369 $ 2,255 $ 468 |
Composition Of Certain Financ_2
Composition Of Certain Financial Statement Captions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Other Current Assets | Other current assets consisted of the following (in thousands): December 31, 2023 2022 Prepaid income tax $ 4,813 $ 1,777 Prepaid expenses 19,913 20,001 Finished goods inventory 7,279 6,662 Other 6,869 13,734 Total $ 38,874 $ 42,174 |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): December 31, 2023 2022 Equipment, furniture and other $ 78,357 $ 78,976 Building and improvements 17,876 18,331 Land 5,300 5,300 Leasehold improvements 11,758 17,038 Total property and equipment 113,291 119,645 Less: Accumulated depreciation and amortization ( 71,722 ) ( 71,818 ) Property and equipment, net $ 41,569 $ 47,827 |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following (in thousands): December 31, 2023 2022 Employee compensation and benefits $ 44,095 $ 53,546 Accrued expenses 24,307 23,899 Current portion of operating lease liabilities 14,760 17,195 Third-party royalties 8,478 7,620 Accrued other taxes 6,464 1,285 Accrued income taxes 1,991 4,926 Other 9,866 1,543 Total $ 109,961 $ 110,014 Accumulated other comprehensive loss (“AOCL”) |
Schedule of Accumulated Other Comprehensive Loss | consisted of the following (in thousands): Foreign Currency Translation Adjustment Unrealized Gains (Losses) on Cash Flow Hedges Total Balance at December 31, 2020 $ 1,311 $ — $ 1,311 Other comprehensive loss before reclassification ( 1,987 ) — ( 1,987 ) Balance at December 31, 2021 $ ( 676 ) $ — $ ( 676 ) Other comprehensive loss before reclassification ( 3,349 ) ( 94 ) ( 3,443 ) Balance at December 31, 2022 $ ( 4,025 ) $ ( 94 ) $ ( 4,119 ) Other comprehensive income before reclassification 126 1,190 1,316 Amounts reclassified from AOCL into net loss — ( 62 ) ( 62 ) Net current period other comprehensive income 126 1,128 1,254 Balance at December 31, 2023 $ ( 3,899 ) $ 1,034 $ ( 2,865 ) |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Notional and Fair Values of All Derivative Instruments | The notio nal and fair values of all derivative instruments were as follows (in thousands): December 31, 2023 2022 Derivative instruments in cash flow hedges (foreign exchange contracts): Assets Other current assets $ 1,184 $ — Liabilities Accrued liabilities — 94 Total fair value $ 1,184 $ 94 Notional value held to buy U.S. dollars in exchange for other currencies $ 738 $ — Notional value held to sell U.S. dollars in exchange for other currencies $ 45,468 $ 52,197 Undesignated derivative instruments (foreign exchange contracts): Liabilities Accrued liabilities $ — $ 41 Total fair value $ — $ 41 Notional value held to sell U.S. dollars in exchange for other currencies $ — $ 7,402 |
Schedule of Gross Amounts of Foreign Currency Forward Contracts | The gross amounts of the Company’s foreign currency forward contracts and the net amounts recorded in the Company’s Consolidated Balance Sheets were as follows (in thousands): December 31, 2023 2022 Gross amount of recognized assets $ 1,300 $ — Gross amount of recognized liabilities ( 116 ) ( 135 ) Net assets (liabilities) $ 1,184 $ ( 135 ) |
Summary of the Gains Recognized upon Settlement of the Hedged Transactions | The following table summarizes the gains recognized upon settlement of the hedged transactions in the Condensed Consolidated Statement of Operations for the years ended December 31, 2023 and 2022 (in thousands): Year Ended December 31, 2023 2022 Research and development $ 841 $ — Selling, general and administrative 192 — Total $ 1,033 $ — |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Amounts and Estimated Fair Values | The carrying amounts and estimated fair values are as follows (in thousands): December 31, 2023 2022 Carrying Estimated Fair Carrying Estimated Fair Senior Unsecured Promissory Note $ 50,000 $ 49,659 $ 50,000 $ 48,478 |
Acquisitions and Divestiture (T
Acquisitions and Divestiture (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Acquisition [Line Items] | |
Summary of the Carrying Amounts of Assets and Liabilities Classified as Held for Sale | The following table summarizes the carrying amounts of assets and liabilities classified as held for sale in connection with the Divestiture on the Company’s consolidated balance sheet as of December 31, 2023 (in thousands): December 31, 2023 Current Noncurrent Total Assets: Cash and cash equivalents $ 12,349 $ — $ 12,349 Accounts receivable, net 1,323 — 1,323 Unbilled contracts receivable, net 1,209 5,320 6,529 Prepaid expenses and other current assets 979 — 979 Property and equipment, net — 2,391 2,391 Operating lease right-of-use assets — 3,346 3,346 Other noncurrent assets — 1,192 1,192 Total assets held for sale (1) $ 15,860 $ 12,249 $ 28,109 Liabilities: Accounts payable $ 244 $ — $ 244 Accrued liabilities 4,821 — 4,821 Deferred revenue 1,126 — 1,126 Operating lease liabilities, noncurrent — 2,741 2,741 Other noncurrent liabilities — 7,064 7,064 Total liabilities held for sale $ 6,191 $ 9,805 $ 15,996 Net assets held for sale $ 9,669 $ 2,444 $ 12,113 (1) Total assets held for sale also included certain fully amortized finite-lived intangible assets with an original cost of $ 35.2 million. Due to the estimated fair value less cost to sell exceeding the carrying amount of the assets and liabilities presented above, the Company did not recognize an impairment loss related to the assets held for sale in the year ended December 31, 2023. |
Vewd | |
Business Acquisition [Line Items] | |
Schedule of Estimated Fair Value that Allocated to Assets and Liabilities | The following table presents the allocation of the purchase price to the identifiable assets acquired and liabilities assumed based on the fair values at the acquisition date (fair value amounts in thousands): Estimated Estimated Cash and cash equivalents $ 2,684 Accounts receivable 3,341 Unbilled contracts receivable 2,335 Other current assets 1,208 Property and equipment 443 Operating lease right-of-use assets 2,020 Identifiable intangible assets: Technology 7 28,050 Customer relationships - large 7 4,900 Customer relationships - small 4 3,500 Non-compete agreements 2 870 Trade name 5 830 Total identifiable intangible assets 38,150 Goodwill 68,115 Other long-term assets 977 Accounts payable ( 869 ) Accrued liabilities ( 4,777 ) Deferred revenue ( 920 ) Long-term deferred tax liabilities ( 8,393 ) Noncurrent operating lease liabilities ( 1,094 ) Other long-term liabilities ( 307 ) Total purchase price $ 102,913 |
Schedule of Unaudited Pro Forma Financial Information | The following table presents the pro forma operating results as if the acquired operations of Vewd had been included in the Company’s Consolidated Statements of Operations as of January 1, 2021 (unaudited, in thousands): Year Ended December 31, 2022 2021 Revenue $ 508,636 $ 498,992 Net loss attributable to the Company $ ( 769,483 ) $ ( 209,690 ) |
Goodwill Impairment and Intan_2
Goodwill Impairment and Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Identified Intangible Assets | Identified intangible assets consisted of the following (in thousands): December 31, 2023 Average Gross Accumulated Net Carrying Value Finite-lived intangible assets Acquired patents 3 - 10 $ 17,281 $ ( 3,478 ) $ 13,803 Existing technology / content database 5 - 10 219,717 ( 181,713 ) 38,004 Customer contracts and related relationships 3 - 9 493,685 ( 365,074 ) 128,611 Trademarks/trade name 4 - 10 39,313 ( 34,453 ) 4,860 Non-compete agreements 1 - 2 3,101 ( 2,884 ) 217 Total finite-lived intangible assets 773,097 ( 587,602 ) 185,495 Indefinite-lived intangible assets: TiVo tradename/trademarks N/A 21,400 — 21,400 Total intangible assets $ 794,497 $ ( 587,602 ) $ 206,895 Total intangible assets excluded certain finite-lived intangible assets with a gross amount of $ 35.2 million, which were fully amortized and classified as held for sale as of December 31, 2023 in connection with the Divestiture (as described in Note 7). December 31, 2022 Average Gross Accumulated Net Carrying Value Finite-lived intangible assets Acquired patents 3 - 10 $ 22,189 $ ( 6,175 ) $ 16,014 Existing technology / content database 5 - 10 240,894 ( 190,671 ) 50,223 Customer contracts and related relationships 3 - 9 502,188 ( 335,981 ) 166,207 Trademarks/trade name 4 - 10 39,613 ( 29,733 ) 9,880 Non-compete agreements 1 - 2 3,101 ( 2,449 ) 652 Total finite-lived intangible assets 807,985 ( 565,009 ) 242,976 Indefinite-lived intangible assets: TiVo tradename/trademarks N/A 21,400 — 21,400 Total intangible assets $ 829,385 $ ( 565,009 ) $ 264,376 |
Estimated Future Amortization Expense | As of December 31, 2023, the estimated future amortization expense of finite-lived intangible assets was as follows (in thousands): Year Ending December 31: Amounts 2024 $ 43,363 2025 34,816 2026 31,486 2027 30,643 2028 30,305 Thereafter 14,882 Total amortization $ 185,495 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Operating Lease Costs | The components of operating lease costs were as follows (in thousands): Year Ended December 31, 2023 2022 2021 Fixed lease cost (1) $ 20,306 $ 20,581 $ 20,619 Variable lease cost 5,130 5,365 5,030 Less: sublease income ( 9,896 ) ( 9,498 ) ( 9,724 ) Total operating lease cost $ 15,540 $ 16,448 $ 15,925 (1) Includes short-term leases expensed on a straight-line basis. |
Schedule of Supplemental Cash Flow Information arising from Lease Transactions | The following table presents supplemental cash flow information arising from lease transactions (in thousands): Year Ended December 31, 2023 2022 2021 Cash payments included in the measurement of operating lease liabilities $ 19,968 $ 20,307 $ 20,826 Operating ROU assets obtained in exchange for lease obligations $ 11,563 $ 14,360 $ 6,131 |
Schedule of Weighted-average Remaining Term of Operating Leases and Weighted-average of Discount Rate of Present Value of Operating Lease Liabilities | The weighted-average remaining term of the Company’s operating leases and the weighted-average discount rate used to measure the present value of the operating lease liabilities are as follows: December 31, 2023 2022 Weighted-average remaining lease term (in years) 3.37 3.69 Weighted-average discount rate 5.3 % 5.1 % |
Schedule of Future Minimum Lease Payments and Related Lease Liabilities | Future minimum lease payments and related lease liabilities as of December 31, 2023 were as follows (in thousands): Operating Lease Payments (1) Sublease Income Net Operating Lease Payments 2024 $ 16,805 $ ( 5,843 ) $ 10,962 2025 16,177 ( 6,108 ) 10,069 2026 9,812 ( 1,412 ) 8,400 2027 3,964 ( 368 ) 3,596 2028 1,996 ( 379 ) 1,617 Thereafter 1,101 ( 291 ) 810 Total lease payments 49,855 $ ( 14,401 ) $ 35,454 Less: imputed interest ( 4,497 ) Present value of operating lease liabilities: $ 45,358 Less: operating lease liabilities, current portion ( 14,760 ) Noncurrent operating lease liabilities $ 30,598 (1) Future minimum lease payments exclude short-term leases as well as payments to landlords for variable common area maintenance, insurance and real estate taxes. |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Loss Per Share | The following table sets forth th e computation of basic and diluted shares (in thousands, except per share amounts): Year Ended December 31, 2023 2022 2021 Numerator: Net loss attributable to the Company - basic and diluted $ ( 136,613 ) $ ( 757,484 ) $ ( 175,622 ) Denominator: Weighted-average number of shares used to compute net loss per share attributable to the Company - basic and diluted 43,012 42,029 42,024 Net loss per share attributable to the Company - basic and diluted $ ( 3.18 ) $ ( 18.02 ) $ ( 4.18 ) |
Schedule of Potentially Dilutive Shares Were Excluded From Calculation of Diluted Net Loss Per Share | The following potentially dilutive shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented (in thousands): Year Ended December 31, 2023 2022 Stock options 106 146 Restricted stock units 7,067 4,604 ESPP 81 — Total 7,254 4,750 |
Stockholders' Equity And Stoc_2
Stockholders' Equity And Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Summary of Stock Option Activity | The following table provides the Company’s stock option activity from the Separation Date to December 31, 2023 (in thousands, except per share amounts): Number of Weighted Weighted Aggregate Balance at December 31, 2022 146 $ 25.48 1.89 $ — Options canceled / forfeited / expired ( 40 ) $ 21.76 Balance at December 31, 2023 (1) 106 $ 26.87 1.69 $ — (1) The ending balance at December 31, 2023 represents stock options that were fully vested and exercisable. |
Summary of Restricted Stock Awards and Units | Information with respect to outstanding RSUs (including both time-based vesting and performance-based vesting) as of December 31, 2023 is as follows (in thousands, except per share amounts): Number of Shares Number of Shares Total Number Weighted Average Balance at December 31, 2022 3,713 891 4,604 $ 20.35 Granted 3,204 1,009 4,213 $ 11.64 Vested / released ( 1,231 ) ( 15 ) ( 1,246 ) $ 18.44 Canceled / forfeited ( 290 ) ( 214 ) ( 504 ) $ 20.20 Balance at December 31, 2023 5,396 1,671 7,067 $ 15.51 |
Summary of Stock-Based Compensation Expense | Total stock-based compensation expense for the years ended December 31, 2023, 2022 and 2021 is as follows (in thousands): Year Ended December 31, 2023 2022 2021 Cost of revenue, excluding depreciation and amortization of intangible assets $ 3,466 $ 2,906 $ 1,972 Research and development 25,276 21,561 17,914 Selling, general and administrative 40,789 20,836 13,623 Total stock-based compensation expense $ 69,531 $ 45,303 $ 33,509 |
Stock-Based Compensation Expense Categorized by Award Type | Stock-based compensation expense categorized by award type for the years ended December 31, 2023, 2022 and 2021 is summarized in the table below (in thousands): Year Ended December 31, 2023 2022 2021 Restricted stock awards and units $ 64,179 $ 42,208 $ 30,015 Stock options — 368 66 ESPP 5,352 2,727 3,428 Total stock-based compensation expense $ 69,531 $ 45,303 $ 33,509 |
Summary of Unrecognized Stock-based Compensation Expense | As of December 31, 2023, unrecognized stock-based compensation expense related to unvested stock-based awards is as follows (amounts in thousands): December 31, 2023 Unrecognized Stock-Based Compensation Weighted-Average Period to Recognize Expense RSUs and PSUs $ 88,151 2.1 ESPP 5,532 0.9 Total unrecognized stock-based compensation expense $ 93,683 |
Employee Stock Purchase Plan | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Schedule of Valuation Assumptions Used in Estimating Fair Value and Awards Granted | The following table summarizes the valuation assumptions used in estimating the fair value of the 2022 ESPP for the offering periods in effect using the Black-Scholes option pricing model: Year Ended December 31, 2023 2022 Expected life (years) 0.5 — 2.0 2.0 Risk-free interest rate 4.33 % — 5.44 % 4.3 % Dividend yield 0.0 % 0.0 % Expected volatility 44.11 % — 51.19 % 42.9 % Prior to the Separation, the valuation assumptions were determined by the Former Parent. The following assumptions were used to value the Former Parent’s ESPP shares granted to employees specifically identifiable to Xperi in the years ended December 31, 2022 and 2021: Year Ended December 31, 2022 2021 Expected life (years) 2.0 2.0 Risk-free interest rate 1.3 % 0.1 % - 0.2 % Dividend yield 1.1 % 0.9 % - 1.2 % Expected volatility 48.5 % 52.0 % |
Market-Based Performance Stock Units | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Schedule of Valuation Assumptions Used in Estimating Fair Value and Awards Granted | The following assumptions were used to value the market-based PSUs granted during the period: Year Ended December 31, 2023 2022 2021 Expected life (years) 1.5 — 2.8 3.0 3.0 Risk-free interest rate 4.54 % — 4.96 % 2.8 % 0.3 % Dividend yield 0.00 % 1.2 % 1.0 % Expected volatility 44.11 % — 51.19 % 40.9 % 47.9 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Components of Loss Before Income Taxes | The components of loss before taxes are as follows (in thousands): Year Ended December 31, 2023 2022 2021 U.S. $ ( 142,447 ) $ ( 667,612 ) $ ( 123,201 ) Foreign 12,801 ( 80,005 ) ( 37,037 ) Loss before taxes $ ( 129,646 ) $ ( 747,617 ) $ ( 160,238 ) |
Summary of Provision for Income Taxes | The provision for income taxes consisted of the following (in thousands): Year Ended December 31, 2023 2022 2021 Current: U.S. federal $ 1,398 $ — $ — Foreign 16,546 21,252 12,531 State and local 694 1,723 ( 604 ) Total current 18,638 22,975 11,927 Deferred: U.S. federal 19 ( 5,431 ) 1,215 Foreign ( 8,113 ) ( 3,871 ) 7,116 State and local ( 502 ) ( 84 ) ( 1,418 ) Total deferred ( 8,596 ) ( 9,386 ) 6,913 Provision for income taxes $ 10,042 $ 13,589 $ 18,840 |
Component of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands): December 31, 2023 2022 Deferred tax assets: Net operating losses $ 22,442 $ 19,477 Research credits 10,513 6,791 Foreign tax credits 5,796 2,119 Accrued expenses 25,729 27,987 Basis difference in fixed and intangible assets 38,899 16,290 Deferred revenue 10,652 9,556 Capitalized R&D 87,465 63,601 Lease liability 11,075 13,310 Other tax credits 2,318 1,673 Gross deferred tax assets 214,889 160,804 Valuation allowance ( 157,595 ) ( 111,779 ) Net deferred tax assets 57,294 49,025 Deferred tax liabilities: Acquired intangible assets ( 36,416 ) ( 45,424 ) Revenue recognition ( 4,574 ) ( 2,292 ) Operating ROU assets ( 9,758 ) ( 10,550 ) Other ( 8,436 ) ( 1,562 ) Gross deferred tax liabilities ( 59,184 ) ( 59,828 ) Net deferred tax liabilities $ ( 1,890 ) $ ( 10,803 ) |
Summary of Deferred Tax Assets for Tax Effects of Following Gross Tax Loss Carryforwards | As of December 31, 2023, the Company had recorded deferred tax assets for the tax effects of the following gross tax loss carryforwards (in thousands): Carry forward Amount Years of Expiration Federal $ 29,202 2027 —indefinite State (post-apportionment) $ 93,258 2024 — 2042 |
Schedule of Credits Available to Reduce Future Income Tax Expense | As of December 31, 2023, the Company had the following credits available to reduce future income tax expense (in thousands): Carry forward Amount Years of Expiration Federal research and development credits $ 9,451 2024 — 2043 State research and development credits $ 17,356 2024 —indefinite Foreign tax credits $ 8,114 2026 — 2033 |
Schedule of Changes in Deferred Tax Asset Valuation Allowance | The deferred tax asset valuation allowance and changes in the deferred tax asset valuation allowance consisted of the following (in thousands): Year Ended December 31, 2023 2022 2021 Balance at beginning of period $ 111,779 $ 101,529 $ 52,676 Charged (credited) to expenses 46,397 19,321 59,249 Charged (credited) to other accounts ( 581 ) ( 9,071 ) ( 10,396 ) Balance at end of period $ 157,595 $ 111,779 $ 101,529 |
Reconciliation of Statutory U.S. Federal Income Tax Rate to Company's Effective Tax | Income tax expense differed from the amounts computed by applying the U.S. federal income tax rate to loss before income taxes as a result of the following (in thousands): Year Ended December 31, 2023 2022 2021 U.S. federal statutory rate $ ( 27,226 ) $ ( 157,032 ) $ ( 33,650 ) State, net of federal benefit 532 1,974 ( 258 ) Stock-based compensation 6,758 2,036 ( 1,740 ) Executive compensation limitation 1,911 2,286 2,221 Research tax credit ( 6,983 ) ( 5,225 ) ( 2,321 ) Foreign withholding tax 12,811 8,079 11,018 Goodwill impairment — 107,831 — Restructuring and transaction costs 649 293 — Divestiture-related activity ( 26,915 ) — — Foreign rate differential ( 7,354 ) 19,337 16,407 Foreign tax credit ( 10,124 ) ( 977 ) ( 8,928 ) Change in valuation allowance 50,314 20,491 39,063 Foreign income inclusions 10,151 7,656 — Unrecognized tax benefits 746 6,798 1,526 Change in estimates 3,844 ( 1,802 ) ( 4,674 ) Others 928 1,844 176 Total $ 10,042 $ 13,589 $ 18,840 |
Reconciliation of Unrecognized Tax Benefits | The reconciliation of the Company’s unrecognized tax benefits for the years ended December 31, 2023, 2022 and 2021 is as follows (in thousands): Year Ended December 31, 2023 2022 2021 Total unrecognized tax benefits at January 1 $ 19,354 $ 8,438 $ 7,106 Changes due to mergers and transactions — 1,682 ( 1,440 ) Increases for tax positions related to the current year 4,070 8,793 1,962 Increases for tax positions related to prior years 961 444 1,303 Decreases for tax positions related to prior years ( 798 ) ( 3 ) ( 493 ) Total unrecognized tax benefits at December 31 $ 23,587 $ 19,354 $ 8,438 |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Summary of Long-lived Assets by Geographic Region | The following table summarizes long-lived assets by geographic region (in thousands): December 31, 2023 2022 U.S. $ 69,725 $ 81,570 Europe 3,416 8,865 Asia and other 8,328 10,293 Total $ 81,469 $ 100,728 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Payments under Noncancelable Unconditional Purchase Obligations | In the ordinary course of business, the Company enters into contractual agreements with third parties that include non-cancelable payment obligations, for which it is liable in future periods. These arrangements primarily include unconditional purchase obligations to service providers. Total future unconditional purchase obligations as o f December 31, 2023 were as follows (in thousands): Year Ending December 31: Amounts 2024 $ 44,156 2025 30,185 2026 28,310 2027 8,701 2028 8,324 Thereafter 23,552 Total $ 143,228 |
Related Party Transactions an_2
Related Party Transactions and Net Investment By Former Parent (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Reconciliation of Net Transfers from Former Parent | A reconciliation of Net transfers from the Former Parent on the Consolidated Statements of Equity to the corresponding amount on the Consolidated Statements of Cash Flows was as follows (i n thousands): Year Ended December 31, 2022 2021 Total net transfers from Former Parent per Consolidated Statements of Equity $ 100,915 $ 116,830 Stock-based compensation ( 45,303 ) ( 33,509 ) Net proceeds from capital contributions by Former Parent 83,235 — Issuance of equity to noncontrolling interest ( 1,423 ) 9 Other ( 1,387 ) — Total net transfers from Former Parent per Consolidated Statements of Cash Flows $ 136,037 $ 83,330 |
The Company and Description o_2
The Company and Description of Business - Additional Information (Details) | 12 Months Ended | |||
Oct. 01, 2022 $ / shares shares | Dec. 31, 2023 Business Segment $ / shares | Dec. 31, 2022 $ / shares | Sep. 21, 2022 $ / shares | |
Organization Consolidation And Presentation [Line Items] | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||
Number of reportable business segments | Segment | 1 | |||
Number of business category | 4 | |||
Xperi Holding | ||||
Organization Consolidation And Presentation [Line Items] | ||||
Number of independent publicly traded companies | 2 | |||
Number of intellectual property licensing business | 1 | |||
Number of product business | 1 | |||
Spin-Off | Xperi Holding | ||||
Organization Consolidation And Presentation [Line Items] | ||||
Record date of outstanding common stock distribution for spinoff | Sep. 21, 2022 | |||
Number of shares received for every ten common stock shares held on record date | shares | 4 | |||
Number of common stock shares considered as one unit for issue of shares in spinoff | shares | 10 | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) Customer Segment | Dec. 31, 2022 USD ($) Customer | Dec. 31, 2021 USD ($) Customer | |
Summary of Significant Accounting Policies [Line Items] | |||
Long-term deferred tax liabilities | $ 6,983,000 | $ 12,899,000 | |
Other long-term liabilities | $ 4,577,000 | 12,990,000 | |
Decrease deferred income tax | (7,700,000) | ||
Increase accrued and other liabilities | 7,700,000 | ||
Number of operating segments | Segment | 1 | ||
Cash equivalents | $ 0 | 0 | |
Foreign currency translation adjustment | 126,000 | (3,349,000) | $ (1,987,000) |
Goodwill impairment charge | 604,555,000 | ||
Advertising expense | $ 8,100,000 | 5,500,000 | $ 9,100,000 |
Unrecognized Tax Benefits | |||
Summary of Significant Accounting Policies [Line Items] | |||
Long-term deferred tax liabilities | 7,700,000 | ||
Other long-term liabilities | $ 7,700,000 | ||
Accounting Standards Update 2021-08 | |||
Summary of Significant Accounting Policies [Line Items] | |||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | ||
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 01, 2022 | ||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | ||
Minimum | |||
Summary of Significant Accounting Policies [Line Items] | |||
Intangible assets estimated useful life | 1 year | ||
Maximum | |||
Summary of Significant Accounting Policies [Line Items] | |||
Intangible assets estimated useful life | 10 years | ||
Aggregate trade receivables | Credit Concentration Risk | |||
Summary of Significant Accounting Policies [Line Items] | |||
Number of customers, concentration of risk disclosure | Customer | 0 | 0 | |
Revenue | Credit Concentration Risk | |||
Summary of Significant Accounting Policies [Line Items] | |||
Number of customers, concentration of risk disclosure | Customer | 0 | 0 | 0 |
Perceive Corporation | |||
Summary of Significant Accounting Policies [Line Items] | |||
Ownership interest, percentage | 77.60% | ||
Customer One | Aggregate trade receivables | Credit Concentration Risk | |||
Summary of Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage (or more) | 10% | 10% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Identifiable Intangible Assets (Details) | Dec. 31, 2023 |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful life | 1 year |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets estimated useful life | 10 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Long-Lived Assets (Details) | Dec. 31, 2023 |
Equipment, furniture and other | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 1 year |
Equipment, furniture and other | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Building and improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 30 years |
Recent Accounting Pronouncement
Recent Accounting Pronouncements - Additional Information (Details) - Accounting Standards Update 2021-08 | Dec. 31, 2023 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Change in accounting principle, accounting standards update, adopted [true false] | true |
Change in accounting principle accounting standards update adoption date | Jan. 01, 2022 |
Change in accounting principle, accounting standards update, immaterial effect [true false] | true |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue Recognition [Line Items] | ||
Unbilled contracts receivable, current and noncurrent | $ 82.3 | $ 69.5 |
Deferred revenue, current and noncurrent | $ 47.5 | $ 44.5 |
Total Revenue | Product Concentration Risk [Member] | Advertising | ||
Revenue Recognition [Line Items] | ||
Concentration Risk Percentage | 10% | |
Total Revenue | Product Concentration Risk [Member] | NRE services | ||
Revenue Recognition [Line Items] | ||
Concentration Risk Percentage | 10% | |
Total Revenue | Product Concentration Risk [Member] | Hardware Products | ||
Revenue Recognition [Line Items] | ||
Concentration Risk Percentage | 10% |
Revenue - Schedule of Revenue b
Revenue - Schedule of Revenue by Timing of Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 521,334 | $ 502,260 | $ 486,483 |
Recognized over time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 410,865 | 401,668 | 412,334 |
Recognized at a point in time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 110,469 | $ 100,592 | $ 74,149 |
Revenue - Schedule of Revenue_2
Revenue - Schedule of Revenue by Product Category (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 521,334 | $ 502,260 | $ 486,483 |
Pay TV | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 244,708 | 249,457 | 262,929 |
Consumer Electronics | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 132,355 | 128,395 | 99,529 |
Connected Car | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 94,864 | 84,201 | 88,306 |
Media Platform | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 49,407 | $ 40,207 | $ 35,719 |
Revenue - Schedule of Geographi
Revenue - Schedule of Geographic Revenue Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 521,334 | $ 502,260 | $ 486,483 |
Total Revenue | Geographic Concentration Risk | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage (or more) | 100% | 100% | 100% |
U.S. | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 267,998 | $ 278,920 | $ 249,537 |
U.S. | Total Revenue | Geographic Concentration Risk | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage (or more) | 51% | 56% | 51% |
Japan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 83,138 | $ 65,551 | $ 70,956 |
Japan | Total Revenue | Geographic Concentration Risk | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage (or more) | 16% | 13% | 15% |
Europe and Middle East | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 41,113 | $ 42,846 | $ 56,317 |
Europe and Middle East | Total Revenue | Geographic Concentration Risk | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage (or more) | 8% | 9% | 12% |
China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 35,809 | $ 30,932 | $ 18,027 |
China | Total Revenue | Geographic Concentration Risk | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage (or more) | 7% | 6% | 4% |
Latin America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 31,863 | $ 27,212 | $ 22,894 |
Latin America | Total Revenue | Geographic Concentration Risk | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage (or more) | 6% | 5% | 4% |
Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 61,413 | $ 56,799 | $ 68,752 |
Other | Total Revenue | Geographic Concentration Risk | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage (or more) | 12% | 11% | 14% |
Revenue - Schedule of Revenue R
Revenue - Schedule of Revenue Recognized in Period (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Revenue from Contract with Customer [Abstract] | ||||
Amounts included in deferred revenue at the beginning of the period | [1] | $ 20,620 | $ 24,307 | $ 23,863 |
Performance obligations satisfied in previous periods (true ups, recoveries and settlements) | [2],[3] | $ 11,863 | $ 30,561 | $ 8,772 |
[1] The Company has identified an error in the disclosure of the amount of revenue recognized from the beginning balance of deferred revenue for the year ended December 31, 2022 in this Form 10-K filing. The amount for the year ended December 31, 2022 was revised to correct an immaterial error, which resulted in the disclosure of the amount recognized increasing by $ 4.6 million from the amount previously disclosed. There was no impact on any amounts recorded in the Company’s consolidated financial statements for any period presented. For the year ended December 31, 2022, the Company recorded revenue from both the settlement of a contract dispute with a large mobile imaging customer, and the execution of a long-term license agreement with the same large mobile imaging customer. The long-term license agreement was effective as of the expiration of the prior agreement, and the Company expected to record revenue from the license agreement in future periods. True ups represent the differences between the Company’s quarterly estimates of per-unit royalty revenue and actual production/sales-based royalties reported by licensees in the following period. Recoveries represent corrections or revisions to previously reported per-unit royalties by licensees, generally resulting from the Company’s inquiries or compliance audits. Settlements represent resolutions of litigation or disputes during the period for past royalties owed. |
Revenue - Schedule of Revenue_3
Revenue - Schedule of Revenue Recognized in Period (Parenthetical) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Disaggregation of Revenue [Line Items] | ||||
Amount of revenue recognized | [1] | $ 20,620,000 | $ 24,307,000 | $ 23,863,000 |
Previously Disclosed | ||||
Disaggregation of Revenue [Line Items] | ||||
Amount of revenue recognized | $ 4,600 | |||
[1] The Company has identified an error in the disclosure of the amount of revenue recognized from the beginning balance of deferred revenue for the year ended December 31, 2022 in this Form 10-K filing. The amount for the year ended December 31, 2022 was revised to correct an immaterial error, which resulted in the disclosure of the amount recognized increasing by $ 4.6 million from the amount previously disclosed. There was no impact on any amounts recorded in the Company’s consolidated financial statements for any period presented. |
Revenue - Schedule of Remaining
Revenue - Schedule of Remaining Performance Obligations (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | $ 76,791 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | $ 46,763 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | $ 19,127 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | $ 6,375 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2027-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | $ 2,292 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2028-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | $ 1,031 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2029-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | $ 1,203 |
Performance obligations expected to be satisfied, expected timing | 1 year |
Revenue - Schedule of Remaini_2
Revenue - Schedule of Remaining Performance Obligations (Details 1) $ in Thousands | Dec. 31, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 76,791 |
Revenue - Schedule of Allowance
Revenue - Schedule of Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts Receivable | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Beginning balance | $ 1,950 | $ 2,255 | $ 6,454 |
Provision for credit losses | 497 | 799 | 714 |
Recoveries/charge-off | (541) | (1,104) | (4,913) |
Balance at end of period | 1,906 | 1,950 | 2,255 |
Unbilled Contracts Receivable | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Beginning balance | 369 | 468 | 1,414 |
Provision for credit losses | 52 | (99) | 38 |
Recoveries/charge-off | (231) | (984) | |
Balance at end of period | $ 190 | $ 369 | $ 468 |
Composition of Certain Financ_3
Composition of Certain Financial Statement Captions - Schedule of Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid income tax | $ 4,813 | $ 1,777 |
Prepaid expenses | 19,913 | 20,001 |
Finished goods inventory | 7,279 | 6,662 |
Other | 6,869 | 13,734 |
Total | $ 38,874 | $ 42,174 |
Composition of Certain Financ_4
Composition of Certain Financial Statement Captions - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 113,291 | $ 119,645 |
Less: Accumulated depreciation and amortization | (71,722) | (71,818) |
Property and equipment, net | 41,569 | 47,827 |
Equipment, furniture and other | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 78,357 | 78,976 |
Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 17,876 | 18,331 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 5,300 | 5,300 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 11,758 | $ 17,038 |
Composition of Certain Financ_5
Composition of Certain Financial Statement Captions - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | ||
Impairment charges | $ 1.3 | $ 1.3 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Impairment charges | $ 0.4 | $ 2.9 |
Composition of Certain Financ_6
Composition of Certain Financial Statement Captions - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Employee compensation and benefits | $ 44,095 | $ 53,546 | |
Accrued expenses | 24,307 | 23,899 | |
Current portion of operating lease liabilities | $ 14,760 | [1] | $ 17,195 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Total | Total | |
Third-party royalties | $ 8,478 | $ 7,620 | |
Accrued other taxes | 6,464 | 1,285 | |
Accrued income taxes | 1,991 | 4,926 | |
Other | 9,866 | 1,543 | |
Total | $ 109,961 | $ 110,014 | |
[1] Future minimum lease payments exclude short-term leases as well as payments to landlords for variable common area maintenance, insurance and real estate taxes. |
Composition of Certain Financ_7
Composition of Certain Financial Statement Captions - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $ 448,986 | $ 1,015,957 | $ 1,080,183 |
Ending balance | 387,135 | 448,986 | 1,015,957 |
Total | (2,865) | (4,119) | |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (94) | ||
Other comprehensive loss income before reclassification | 1,190 | (94) | |
Amounts reclassified from AOCL into net loss | (62) | ||
Net current period other comprehensive income | 1,128 | ||
Ending balance | 1,034 | (94) | |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (4,025) | (676) | 1,311 |
Other comprehensive loss income before reclassification | 126 | (3,349) | (1,987) |
Net current period other comprehensive income | 126 | ||
Ending balance | (3,899) | (4,025) | (676) |
AOCI Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (4,119) | (676) | 1,311 |
Other comprehensive loss income before reclassification | 1,316 | (3,443) | (1,987) |
Amounts reclassified from AOCL into net loss | (62) | ||
Net current period other comprehensive income | 1,254 | ||
Ending balance | $ (2,865) | $ (4,119) | $ (676) |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Undesignated Derivative Instruments | |||
Schedule Of Investments [Line Items] | |||
Gains on derivatives | $ 400,000 | ||
Non-marketable Equity Securities | TiVo Merger | |||
Schedule Of Investments [Line Items] | |||
Equity securities accounted for under equity method | 4,900,000 | $ 4,400,000 | |
Impairment charges related to non-marketable equity securities | $ 0 | $ 0 | $ 0 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Notional and Fair Values of All Derivative Instruments (Details) - Foreign Exchange Contracts - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Designated Derivative Instruments | Cash Flow Hedging [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Other current assets | $ 1,184 | |
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration] | Prepaid Expense and Other Assets, Current | |
Accrued liabilities | $ 94 | |
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities, Current | |
Total fair value | $ 1,184 | $ 94 |
Total notional value | 738 | |
Total notional value | $ 45,468 | 52,197 |
Undesignated Derivative Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Accrued liabilities | $ 41 | |
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities, Current | |
Total fair value | $ 41 | |
Total notional value | $ 7,402 |
Financial Instruments - Sched_2
Financial Instruments - Schedule of Gross Amounts of Foreign Currency Forward Contracts (Details) - Foreign Exchange Contracts - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Gross amount of recognized assets | $ 1,300 | |
Gross amount of recognized liabilities | (116) | $ (135) |
Net assets (liabilities) | $ 1,184 | $ (135) |
Financial Instruments - Summary
Financial Instruments - Summary of the Gains Recognized upon Settlement of the Hedged Transactions (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Derivatives, Fair Value [Line Items] | |
Gain on fair value hedges | $ 1,033 |
Research and development | |
Derivatives, Fair Value [Line Items] | |
Gain on fair value hedges | 841 |
Selling, general and administrative | |
Derivatives, Fair Value [Line Items] | |
Gain on fair value hedges | $ 192 |
Fair Value - Schedule of Carryi
Fair Value - Schedule of Carrying Amounts and Estimated Fair Values (Details) - Recurring - Senior Unsecured Promissory Note - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total long-term debt, net - Carrying Amount | $ 50,000 | $ 50,000 |
Total long-term debt, net - Estimated Fair Value | $ 49,659 | $ 48,478 |
Acquisitions and Divestiture -
Acquisitions and Divestiture - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Jul. 01, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | ||||
Common stock, par value | $ 0.001 | $ 0.001 | ||
Revenue | $ 521,334,000 | $ 502,260,000 | $ 486,483,000 | |
Operating loss | $ (129,637,000) | (749,432,000) | $ (161,828,000) | |
Equity sale percetage | 100% | |||
Goodwill impairment charge | 604,555,000 | |||
Vewd | ||||
Business Acquisition [Line Items] | ||||
Purchase price | $ 102,913,000 | |||
Cash included in the total consideration | 52,900,000 | |||
Debt included in the total consideration | $ 50,000,000 | |||
Transaction related costs including transaction bonuses, legal and consultant fees | 7,400,000 | |||
Severance and retention costs | $ 4,000,000 | |||
Purchaser | Senior Secured Promissory Note | ||||
Business Acquisition [Line Items] | ||||
Debt instrument, principal amount | $ 27,700,000 | |||
Interest rate | 8% | |||
Future cash payments | $ 15,000,000 |
Acquisitions and Divestiture _2
Acquisitions and Divestiture - Schedule of Purchase Price Allocation (Details) - Vewd $ in Thousands | Jul. 01, 2022 USD ($) |
Business Acquisition [Line Items] | |
Cash and cash equivalents | $ 2,684 |
Accounts receivable | 3,341 |
Unbilled contracts receivable | 2,335 |
Other current assets | 1,208 |
Property and equipment | 443 |
Operating lease right-of-use assets | 2,020 |
Identifiable intangible assets: | |
Total identifiable intangible assets | 38,150 |
Goodwill | 68,115 |
Other long-term assets | 977 |
Accounts payable | (869) |
Accrued liabilities | (4,777) |
Deferred revenue | (920) |
Long-term deferred tax liabilities | (8,393) |
Noncurrent operating lease liabilities | (1,094) |
Other long-term liabilities | (307) |
Total purchase price | $ 102,913 |
Technology | |
Business Acquisition [Line Items] | |
Estimated Useful Life (years) | 7 years |
Identifiable intangible assets: | |
Total identifiable intangible assets | $ 28,050 |
Customer relationships - large | |
Business Acquisition [Line Items] | |
Estimated Useful Life (years) | 7 years |
Identifiable intangible assets: | |
Total identifiable intangible assets | $ 4,900 |
Customer relationships - small | |
Business Acquisition [Line Items] | |
Estimated Useful Life (years) | 4 years |
Identifiable intangible assets: | |
Total identifiable intangible assets | $ 3,500 |
Non-competition agreements | |
Business Acquisition [Line Items] | |
Estimated Useful Life (years) | 2 years |
Identifiable intangible assets: | |
Total identifiable intangible assets | $ 870 |
Trade name | |
Business Acquisition [Line Items] | |
Estimated Useful Life (years) | 5 years |
Identifiable intangible assets: | |
Total identifiable intangible assets | $ 830 |
Acquisitions and Divestiture _3
Acquisitions and Divestiture - Schedule of Unaudited Pro Forma Financial Information (Details) - Vewd - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | ||
Revenue | $ 508,636 | $ 498,992 |
Net loss attributable to the Company | $ (769,483) | $ (209,690) |
Acquisitions and Divestiture _4
Acquisitions and Divestiture - Summary of the Carrying Amounts of Assets and Liabilities Classified as Held for Sale (Details) $ in Thousands | Dec. 31, 2023 USD ($) | |
Assets Current: | ||
Cash and cash equivalents | $ 12,349 | |
Total assets held for sale | 15,860 | |
Assets Noncurrent: | ||
Total assets held for sale | 12,249 | |
Liabilities Current: | ||
Total liabilities held for sale | 6,191 | |
Liabilities Noncurrent: | ||
Total liabilities to be disposed of | 9,805 | |
Purchaser | Divestiture | ||
Assets Current: | ||
Cash and cash equivalents | 12,349 | |
Accounts receivable, net | 1,323 | |
Unbilled contracts receivable, net | 1,209 | |
Prepaid expenses and other current assets | 979 | |
Total assets held for sale | 15,860 | [1] |
Assets Noncurrent: | ||
Unbilled contracts receivable, net | 5,320 | |
Property and equipment, net | 2,391 | |
Operating lease right-of-use assets | 3,346 | |
Other noncurrent assets | 1,192 | |
Total assets held for sale | 12,249 | [1] |
Assets Total: | ||
Unbilled contracts receivable, net | 6,529 | |
Total assets held for sale | 28,109 | [1] |
Liabilities Current: | ||
Accounts payable | 244 | |
Accrued liabilities | 4,821 | |
Deferred revenue | 1,126 | |
Total liabilities held for sale | 6,191 | |
Liabilities Noncurrent: | ||
Operating lease liabilities, noncurrent | 2,741 | |
Other noncurrent liabilities | 7,064 | |
Total liabilities to be disposed of | 9,805 | |
Liabilities Total: | ||
Total liabilities to be disposed of | 15,996 | |
Net assets held for sale, Current | 9,669 | |
Net assets held for sale, Noncurrent | 2,444 | |
Net assets held for sale | $ 12,113 | |
[1] Total assets held for sale also included certain fully amortized finite-lived intangible assets with an original cost of $ 35.2 million. |
Acquisitions and Divestiture _5
Acquisitions and Divestiture - Summary of the Carrying Amounts of Assets and Liabilities Classified as Held for Sale (Parenthetical) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Finite-lived intangible assets, Gross Amount | $ 773,097 | $ 807,985 |
Assets held for sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Finite-lived intangible assets, Gross Amount | $ 35,200 |
Goodwill Impairment and Intan_3
Goodwill Impairment and Intangible Assets, Net - Additional Information (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) ReportingUnit | Dec. 31, 2022 USD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||
Number of reporting units | ReportingUnit | 1 | |
Goodwill impairment charge | $ 604,555 | |
Finite-lived intangible assets, Gross Amount | $ 773,097 | $ 807,985 |
Assets held for sale | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Amount | $ 35,200 |
Goodwill Impairment and Intan_4
Goodwill Impairment and Intangible Assets, Net - Identified Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 794,497 | $ 829,385 |
Finite-lived intangible assets, Gross Amount | 773,097 | 807,985 |
Finite-lived intangible assets, Accumulated Amortization | (587,602) | (565,009) |
Intangible assets, net | 206,895 | 264,376 |
Finite-lived intangible assets, Net | $ 185,495 | 242,976 |
Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life (years) | 1 year | |
Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life (years) | 10 years | |
TiVo tradename/trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, Gross Assets | $ 21,400 | 21,400 |
Indefinite-lived intangible assets, Net | 21,400 | 21,400 |
Acquired patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Amount | 17,281 | 22,189 |
Finite-lived intangible assets, Accumulated Amortization | (3,478) | (6,175) |
Finite-lived intangible assets, Net | $ 13,803 | $ 16,014 |
Acquired patents | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life (years) | 3 years | 3 years |
Acquired patents | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life (years) | 10 years | 10 years |
Existing technology / content database | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Amount | $ 219,717 | $ 240,894 |
Finite-lived intangible assets, Accumulated Amortization | (181,713) | (190,671) |
Finite-lived intangible assets, Net | $ 38,004 | $ 50,223 |
Existing technology / content database | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life (years) | 5 years | 5 years |
Existing technology / content database | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life (years) | 10 years | 10 years |
Customer contracts and related relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Amount | $ 493,685 | $ 502,188 |
Finite-lived intangible assets, Accumulated Amortization | (365,074) | (335,981) |
Finite-lived intangible assets, Net | $ 128,611 | $ 166,207 |
Customer contracts and related relationships | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life (years) | 3 years | 3 years |
Customer contracts and related relationships | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life (years) | 9 years | 9 years |
Trademarks/trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Amount | $ 39,313 | $ 39,613 |
Finite-lived intangible assets, Accumulated Amortization | (34,453) | (29,733) |
Finite-lived intangible assets, Net | $ 4,860 | $ 9,880 |
Trademarks/trade name | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life (years) | 4 years | 4 years |
Trademarks/trade name | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life (years) | 10 years | 10 years |
Non-competition agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Amount | $ 3,101 | $ 3,101 |
Finite-lived intangible assets, Accumulated Amortization | (2,884) | (2,449) |
Finite-lived intangible assets, Net | $ 217 | $ 652 |
Non-competition agreements | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life (years) | 1 year | 1 year |
Non-competition agreements | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life (years) | 2 years | 2 years |
Goodwill Impairment and Intan_5
Goodwill Impairment and Intangible Assets, Net - Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 | $ 43,363 | |
2025 | 34,816 | |
2026 | 31,486 | |
2027 | 30,643 | |
2028 | 30,305 | |
Thereafter | 14,882 | |
Finite-lived intangible assets, Net | $ 185,495 | $ 242,976 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 01, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Promissory Note | |||
Line Of Credit Facility [Line Items] | |||
Interest expense | $ 3 | $ 1.5 | |
Vewd | Promissory Note | |||
Line Of Credit Facility [Line Items] | |||
Debt instrument, principal amount | $ 50 | ||
Interest rate | 6% | ||
Debt instrument, basis spread on variable rate | 2% | ||
Debt instrument, maturity date | Jul. 01, 2025 | ||
2021 Convertible Notes | |||
Line Of Credit Facility [Line Items] | |||
Borrowings | $ 50 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Lessee Lease Description [Line Items] | ||
Operating lease existence of option to renew | true | |
Operating lease description | The Company leases office and research facilities, data centers and office equipment under operating leases with various expiration dates through 2030. Certain leases offer the option to renew for up to ten years and to terminate before the expiration date. | |
Impairment charges | $ 1.3 | $ 1.3 |
Non-cash impairment charges related to operating lease ROU assets | 4.8 | 4.8 |
Writing off of leasehold improvements | $ 0.4 | $ 2.9 |
Maximum | ||
Lessee Lease Description [Line Items] | ||
Lessee term of period to extend | 10 years |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Leases [Abstract] | ||||
Fixed lease cost | [1] | $ 20,306 | $ 20,581 | $ 20,619 |
Variable lease cost | 5,130 | 5,365 | 5,030 | |
Less: sublease income | (9,896) | (9,498) | (9,724) | |
Total operating lease cost | $ 15,540 | $ 16,448 | $ 15,925 | |
[1] Includes short-term leases expensed on a straight-line basis. |
Leases - Schedule Of Cash Flow
Leases - Schedule Of Cash Flow Supplemental Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Cash payments included in the measurement of operating lease liabilities | $ 19,968 | $ 20,307 | $ 20,826 |
Operating ROU assets obtained in exchange for lease obligations | $ 11,563 | $ 14,360 | $ 6,131 |
Leases - Schedule of Weighted-a
Leases - Schedule of Weighted-average Remaining Term of Operating Leases and Weighted-average of Discount Rate of Present Value of Operating Lease Liabilities (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Weighted-average remaining lease term (in years) | 3 years 4 months 13 days | 3 years 8 months 8 days |
Weighted-average discount rate | 5.30% | 5.10% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments and Related Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | ||
Operating Lease Payments | ||||
2024 | [1] | $ 16,805 | ||
2025 | [1] | 16,177 | ||
2026 | [1] | 9,812 | ||
2027 | [1] | 3,964 | ||
2028 | [1] | 1,996 | ||
Thereafter | [1] | 1,101 | ||
Total lease payments | [1] | 49,855 | ||
Less: imputed interest | [1] | (4,497) | ||
Present value of operating lease liabilities: | [1] | 45,358 | ||
Less: operating lease liabilities, current portion | (14,760) | [1] | $ (17,195) | |
Noncurrent operating lease liabilities | 30,598 | [1] | $ 42,666 | |
Sublease Income | ||||
2024 | (5,843) | |||
2025 | (6,108) | |||
2026 | (1,412) | |||
2027 | (368) | |||
2028 | (379) | |||
Thereafter | (291) | |||
Total lease payments | (14,401) | |||
Net Operating Lease Payments | ||||
2024 | 10,962 | |||
2025 | 10,069 | |||
2026 | 8,400 | |||
2027 | 3,596 | |||
2028 | 1,617 | |||
Thereafter | 810 | |||
Total lease payments | $ 35,454 | |||
[1] Future minimum lease payments exclude short-term leases as well as payments to landlords for variable common area maintenance, insurance and real estate taxes. |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Payments under Noncancelable Unconditional Purchase Obligations (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2024 | $ 44,156 |
2025 | 30,185 |
2026 | 28,310 |
2027 | 8,701 |
2028 | 8,324 |
Thereafter | 23,552 |
Total | $ 143,228 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Commitments And Contingencies Disclosure [Line Items] | |
Purchase commitments | $ 143,228 |
Inventory | |
Commitments And Contingencies Disclosure [Line Items] | |
Purchase commitments | $ 400 |
Net Loss Per Share - Additional
Net Loss Per Share - Additional Information (Details) - $ / shares | Oct. 01, 2022 | Dec. 31, 2023 | Dec. 31, 2022 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Common stock, shares issued (in shares) | 44,211,000 | 42,066,000 | |
Common stock, par value | $ 0.001 | $ 0.001 | |
Spin-Off | Xperi Inc. | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Common stock, shares issued (in shares) | 42,023,632 | ||
Common stock, par value | $ 0.001 | ||
Record date of outstanding common stock distribution for spinoff | Sep. 21, 2022 |
Net Loss Per Share - Computatio
Net Loss Per Share - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: | |||
Net loss attributable to the Company - basic | $ (136,613) | $ (757,484) | $ (175,622) |
Net loss attributable to the Company - diluted | $ (136,613) | $ (757,484) | $ (175,622) |
Denominator: | |||
Weighted-average number of shares used to compute net loss per share attributable to the Company - basic | 43,012 | 42,029 | 42,024 |
Weighted-average number of shares used to compute net loss per share attributable to the Company - diluted | 43,012 | 42,029 | 42,024 |
Net loss per share attributable to the Company - basic | $ (3.18) | $ (18.02) | $ (4.18) |
Net loss per share attributable to the Company - diluted | $ (3.18) | $ (18.02) | $ (4.18) |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Potentially Dilutive Shares Were Excluded From Calculation of Diluted Net Loss Per Share (Details) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive common stock equivalents | 7,254 | 4,750 |
Stock Options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive common stock equivalents | 106 | 146 |
Restricted Stock Units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive common stock equivalents | 7,067 | 4,604 |
ESPP | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive common stock equivalents | 81 |
Stockholders' Equity And Stoc_3
Stockholders' Equity And Stock-Based Compensation - Additional Information (Details) - USD ($) shares in Millions | 1 Months Ended | 12 Months Ended | ||||
Dec. 01, 2023 | Oct. 01, 2022 | Apr. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense recognized | $ 69,531,000 | $ 45,303,000 | $ 33,509,000 | |||
Black Scholes Option Pricing Model | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expected life (in years) | 1 year | 2 years | ||||
Employee Stock Purchase Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expiration period | 24 months | |||||
Shares reserved for grant (in shares) | 3.7 | |||||
Number of shares issued | 1.3 | |||||
Weighted-average purchase price | 8.92 | |||||
Aggregate net proceeds from ESPP | $ 11,900,000 | |||||
Maximum employee subscription rate | 100% | |||||
Purchase price of common stock, percent | 85% | |||||
Maximum employee subscription amount | $ 25,000,000 | |||||
Rolling expiration period | 24 months | |||||
Accelerated term | 12 months | |||||
Expected life (in years) | 2 years | |||||
Stock-based compensation expense recognized | $ 5,352,000 | $ 2,727,000 | 3,428,000 | |||
Minimum | Employee Stock Purchase Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expected life (in years) | 6 months | |||||
Maximum | Employee Stock Purchase Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expected life (in years) | 2 years | |||||
Performance Shares | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance awards, percentage of grant available to vest | 0% | |||||
Performance Shares | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance awards, percentage of grant available to vest | 200% | |||||
Former Parent Equity Awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Incremental stock-based compensation expense | $ 8,400,000 | |||||
Former Parents PSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Incremental compensation expense modification, description | In April 2023, in accordance with the EMA executed by the Company and the Former Parent in connection with the Separation, the Company modified certain vesting conditions related to market-based PSUs granted in 2022, resulting in a total incremental compensation expense of $2.9 million, which is expected to be recognized over the remaining requisite service period through April 2025. | |||||
Incremental compensation expense recognized over requisite service period through 2025 | $ 2,900,000 | |||||
Corporate and Shared Functional Employees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense recognized | 6,900,000 | 9,200,000 | ||||
Restricted Stock and Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense recognized | $ 64,179,000 | 42,208,000 | 30,015,000 | |||
Employee Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense recognized | $ 368,000 | $ 66,000 | ||||
2022 EIP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expiration period | 10 years | |||||
Vesting period | 4 years | |||||
Shares reserved for grant (in shares) | 4.2 | |||||
2022 EIP | Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 years | |||||
2022 EIP | Time-based Awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
Amendment 2022 ESP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Incremental stock-based compensation expense | $ 0 | |||||
Stock-based compensation expense recognized | $ 5,900,000 | |||||
Amendment 2022 ESP | Employee Stock Purchase Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Maximum employee subscription rate | 15% | |||||
Rolling expiration period | 12 months |
Stockholders' Equity And Stoc_4
Stockholders' Equity And Stock-Based Compensation - Schedule of Valuation Assumptions Used in Estimating Fair Value and Awards Granted (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Employee Stock Purchase Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract] | |||
Expected life (in years) | 2 years | ||
Risk-free interest rate, Minimum | 4.33% | ||
Risk-free interest rate, Maximum | 5.44% | ||
Risk-free interest rate | 4.30% | ||
Dividend yield | 0% | 0% | |
Expected volatility, Minimum | 44.11% | ||
Expected volatility, Maximum | 51.19% | ||
Expected volatility | 42.90% | ||
Employee Stock Purchase Plan | Xperi | |||
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract] | |||
Expected life (in years) | 2 years | 2 years | |
Risk-free interest rate | 1.30% | ||
Dividend yield | 1.10% | ||
Expected volatility | 48.50% | 52% | |
Employee Stock Purchase Plan | Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract] | |||
Expected life (in years) | 6 months | ||
Employee Stock Purchase Plan | Minimum | Xperi | |||
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract] | |||
Risk-free interest rate | 0.10% | ||
Dividend yield | 0.90% | ||
Employee Stock Purchase Plan | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract] | |||
Expected life (in years) | 2 years | ||
Employee Stock Purchase Plan | Maximum | Xperi | |||
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract] | |||
Risk-free interest rate | 0.20% | ||
Dividend yield | 1.20% | ||
Market-Based Performance Stock Units | |||
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract] | |||
Expected life (in years) | 3 years | 3 years | |
Risk-free interest rate | 2.80% | 0.30% | |
Dividend yield | 0% | 1.20% | 1% |
Expected volatility | 40.90% | 47.90% | |
Market-Based Performance Stock Units | Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract] | |||
Expected life (in years) | 1 year 6 months | ||
Risk-free interest rate | 4.54% | ||
Expected volatility | 44.11% | ||
Market-Based Performance Stock Units | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract] | |||
Expected life (in years) | 2 years 9 months 18 days | ||
Risk-free interest rate | 4.96% | ||
Expected volatility | 51.19% |
Stockholders' Equity And Stoc_5
Stockholders' Equity And Stock-Based Compensation - Summary of Stock Option Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Number of Shares Subject to Options | |||
Number of Shares, Beginning balance (shares) | 146 | ||
Number of Shares, Options canceled / forfeited / expired (shares) | (40) | ||
Number of Shares, Ending balance (shares) | 106 | [1] | 146 |
Weighted Average Exercise Price Per Share | |||
Weighted Average Exercise Price Per Share, Beginning balance (USD per share) | $ 25.48 | ||
Weighted Average Exercise Price Per Share, Options canceled / forfeited / expired (USD per share) | 21.76 | ||
Weighted Average Exercise Price Per Share, Ending balance (USD per share) | $ 26.87 | [1] | $ 25.48 |
Weighted Average Remaining Contractual Life and Aggregate Intrinsic Value | |||
Weighted Average Remaining Contractual Life (in years) | 1 year 8 months 8 days | [1] | 1 year 10 months 20 days |
[1] The ending balance at December 31, 2023 represents stock options that were fully vested and exercisable. |
Stockholders' Equity And Stoc_6
Stockholders' Equity And Stock-Based Compensation - Summary of Restricted Stock Awards and Units (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Time Based Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Restricted stock units, beginning balance (shares) | 3,713 |
Restricted stock awards and units, granted (shares) | 3,204 |
Restricted stock awards and units, vested / earned (shares) | (1,231) |
Restricted stock awards and units, canceled / forfeited (shares) | (290) |
Restricted stock units, ending balance (shares) | 5,396 |
Performance Based Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Restricted stock units, beginning balance (shares) | 891 |
Restricted stock awards and units, granted (shares) | 1,009 |
Restricted stock awards and units, vested / earned (shares) | (15) |
Restricted stock awards and units, canceled / forfeited (shares) | (214) |
Restricted stock units, ending balance (shares) | 1,671 |
Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Restricted stock units, beginning balance (shares) | 4,604 |
Restricted stock awards and units, granted (shares) | 4,213 |
Restricted stock awards and units, vested / earned (shares) | (1,246) |
Restricted stock awards and units, canceled / forfeited (shares) | (504) |
Restricted stock units, ending balance (shares) | 7,067 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Weighted average grant date fair value per share of restricted stock units, beginning balance (USD per share) | $ / shares | $ / shares | $ 20.35 |
Weighted average grant date fair value per share of restricted stock and units, granted (USD per share) | $ / shares | 11.64 |
Weighted average grant date fair value per share of restricted stock and units, vested / earned (USD per share) | $ / shares | 18.44 |
Weighted average grant date fair value of restricted stock and units, canceled / forfeited (USD per share) | $ / shares | 20.2 |
Weighted average grant date fair value per share of restricted stock and units, ending balance (USD per share) | $ / shares | $ 15.51 |
Stockholder's Equity And Stock-
Stockholder's Equity And Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 69,531 | $ 45,303 | $ 33,509 |
Cost of revenue, excluding depreciation and amortization of intangible assets | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 3,466 | 2,906 | 1,972 |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 25,276 | 21,561 | 17,914 |
Selling, general and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 40,789 | $ 20,836 | $ 13,623 |
Stockholder's Equity And Stoc_2
Stockholder's Equity And Stock-Based Compensation - Stock-Based Compensation Expense Categorized by Award Type (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 69,531 | $ 45,303 | $ 33,509 |
Employee stock purchase plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 5,352 | 2,727 | 3,428 |
Restricted stock awards and units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 64,179 | 42,208 | 30,015 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 368 | $ 66 |
Stockholder's Equity And Stoc_3
Stockholder's Equity And Stock-Based Compensation - Summary of Unrecognized Stock-based Compensation Expense (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Total unrecognized stock-based compensation expense | $ 93,683 |
RSUs and PSUs | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Total unrecognized stock-based compensation expense | $ 88,151 |
Weighted-Average Period to Recognize Expense | 2 years 1 month 6 days |
ESPP | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Total unrecognized stock-based compensation expense | $ 5,532 |
Weighted-Average Period to Recognize Expense | 10 months 24 days |
Income Taxes - Components of To
Income Taxes - Components of Total Loss Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ (142,447) | $ (667,612) | $ (123,201) |
Foreign | 12,801 | (80,005) | (37,037) |
Loss before taxes | $ (129,646) | $ (747,617) | $ (160,238) |
Income Taxes - Summary of Provi
Income Taxes - Summary of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | |||
U.S. federal | $ 1,398 | ||
Foreign | 16,546 | $ 21,252 | $ 12,531 |
State and local | 694 | 1,723 | (604) |
Total current | 18,638 | 22,975 | 11,927 |
Deferred: | |||
U.S. federal | 19 | (5,431) | 1,215 |
Foreign | (8,113) | (3,871) | 7,116 |
State and local | (502) | (84) | (1,418) |
Total deferred | (8,596) | (9,386) | 6,913 |
Provision for income taxes | $ 10,042 | $ 13,589 | $ 18,840 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets | ||||
Net operating losses | $ 22,442 | $ 19,477 | ||
Research credits | 10,513 | 6,791 | ||
Foreign tax credits | 5,796 | 2,119 | ||
Accrued expenses | 25,729 | 27,987 | ||
Basis difference in fixed and intangible assets | 38,899 | 16,290 | ||
Deferred revenue | 10,652 | 9,556 | ||
Capitalized R&D | 87,465 | 63,601 | ||
Lease liability | 11,075 | 13,310 | ||
Other tax credits | 2,318 | 1,673 | ||
Gross deferred tax assets | 214,889 | 160,804 | ||
Valuation allowance | (157,595) | (111,779) | $ (101,529) | $ (52,676) |
Net deferred tax assets | 57,294 | 49,025 | ||
Deferred tax liabilities | ||||
Acquired intangible assets | (36,416) | (45,424) | ||
Revenue recognition | (4,574) | (2,292) | ||
Operating ROU assets | (9,758) | (10,550) | ||
Other | (8,436) | (1,562) | ||
Gross deferred tax liabilities | (59,184) | (59,828) | ||
Net deferred tax liabilities | $ (1,890) | $ (10,803) |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Tax Assets for Tax Effects of Following Gross Tax Loss Carryforwards (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Federal | |
Tax Credit Carryforward [Line Items] | |
Carry forward Amount | $ 29,202 |
Years of Expiration | 2027 |
State (post-apportionment) | |
Tax Credit Carryforward [Line Items] | |
Carry forward Amount | $ 93,258 |
State (post-apportionment) | Earliest Tax Year | |
Tax Credit Carryforward [Line Items] | |
Years of Expiration | 2024 |
State (post-apportionment) | Latest Tax Year | |
Tax Credit Carryforward [Line Items] | |
Years of Expiration | 2042 |
Income Taxes - Schedule of Cred
Income Taxes - Schedule of Credits Available to Reduce Future Income Tax Expense (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Federal | Research Tax Credit Carryforward | |
Tax Credit Carryforward [Line Items] | |
Carryforward Amount | $ 9,451 |
Federal | Research Tax Credit Carryforward | Earliest Tax Year | |
Tax Credit Carryforward [Line Items] | |
Year of Expiration | 2024 |
Federal | Research Tax Credit Carryforward | Latest Tax Year | |
Tax Credit Carryforward [Line Items] | |
Year of Expiration | 2043 |
State | Research Tax Credit Carryforward | |
Tax Credit Carryforward [Line Items] | |
Carryforward Amount | $ 17,356 |
State | Research Tax Credit Carryforward | Earliest Tax Year | |
Tax Credit Carryforward [Line Items] | |
Year of Expiration | 2024 |
Foreign | |
Tax Credit Carryforward [Line Items] | |
Carryforward Amount | $ 8,114 |
Foreign | Earliest Tax Year | |
Tax Credit Carryforward [Line Items] | |
Year of Expiration | 2026 |
Foreign | Latest Tax Year | |
Tax Credit Carryforward [Line Items] | |
Year of Expiration | 2033 |
Income Taxes - Schedule of Chan
Income Taxes - Schedule of Changes in Deferred Tax Asset Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of period | $ 111,779 | $ 101,529 | $ 52,676 |
Charged (credited) to expenses | 46,397 | 19,321 | 59,249 |
Charged (credited) to other accounts | (581) | (9,071) | (10,396) |
Balance at end of period | $ 157,595 | $ 111,779 | $ 101,529 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory U.S. Federal Income Tax Rate to Effective Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory rate | $ (27,226) | $ (157,032) | $ (33,650) |
State, net of federal benefit | 532 | 1,974 | (258) |
Stock-based compensation | 6,758 | 2,036 | (1,740) |
Executive compensation limitation | 1,911 | 2,286 | 2,221 |
Research tax credit | (6,983) | (5,225) | (2,321) |
Foreign withholding tax | 12,811 | 8,079 | 11,018 |
Goodwill impairment | 107,831 | ||
Restructuring and transaction costs | 649 | 293 | |
Divestiture-related activity | (26,915) | ||
Foreign rate differential | (7,354) | 19,337 | 16,407 |
Foreign tax credit | (10,124) | (977) | (8,928) |
Change in valuation allowance | 50,314 | 20,491 | 39,063 |
Foreign income inclusions | 10,151 | 7,656 | |
Unrecognized tax benefits | 746 | 6,798 | 1,526 |
Change in estimates | 3,844 | (1,802) | (4,674) |
Others | 928 | 1,844 | 176 |
Provision for income taxes | $ 10,042 | $ 13,589 | $ 18,840 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Contingency [Line Items] | ||||
Valuation allowance | $ 157,595 | $ 111,779 | $ 101,529 | $ 52,676 |
Accumulated undistributed earnings generated by foreign subsidiaries | 29,700 | |||
Unrecognized tax benefits | 23,587 | 19,354 | 8,438 | $ 7,106 |
Unrecognized tax benefits that would impact the effective income tax rate | $ 9,600 | $ 8,800 | $ 1,700 | |
Income tax examination description | With few exceptions, the Company’s 2019 through 2023 tax years are open and subject to potential examination in one or more jurisdictions at December 31, 2023 | |||
Unrecognized tax benefits, income tax penalties and interest expense | $ 300 | |||
Accrued interest and tax penalties related to unrecognized tax benefits | 400 | |||
Federal | Research Tax Credit Carryforward | ||||
Income Tax Contingency [Line Items] | ||||
Tax credit carryforward | 9,451 | |||
State | Research Tax Credit Carryforward | ||||
Income Tax Contingency [Line Items] | ||||
Tax credit carryforward | 17,356 | |||
Foreign | ||||
Income Tax Contingency [Line Items] | ||||
Valuation allowance | 2,600 | |||
Tax credit carryforward | $ 8,114 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Total unrecognized tax benefits at January 1 | $ 19,354 | $ 8,438 | $ 7,106 |
Changes due to mergers and transactions | 1,682 | ||
Changes due to mergers and transactions | (1,440) | ||
Increases for tax positions related to the current year | 4,070 | 8,793 | 1,962 |
Increases for tax positions related to prior years | 961 | 444 | 1,303 |
Decreases for tax positions related to prior years | (798) | (3) | (493) |
Total unrecognized tax benefits at December 31 | $ 23,587 | $ 19,354 | $ 8,438 |
Geographic Information - Summar
Geographic Information - Summary of Long-lived Assets by Geographic Region (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 81,469 | $ 100,728 |
U.S. | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 69,725 | 81,570 |
Europe | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 3,416 | 8,865 |
Asia and other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 8,328 | $ 10,293 |
Related Party Transactions an_3
Related Party Transactions and Net Investment By Former Parent - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Research, development and other related costs | $ 222,833 | $ 216,355 | $ 194,869 |
Depreciation expense | 16,645 | 20,501 | 22,584 |
Selling, general and administrative | $ 233,403 | 217,402 | 199,921 |
Former Parent | |||
Related Party Transaction [Line Items] | |||
Amount of allocations from parent | 47,600 | 59,700 | |
Depreciation expense | 3,000 | 4,600 | |
Selling, general and administrative | $ 44,600 | $ 55,100 |
Related Party Transactions an_4
Related Party Transactions and Net Investment By Former Parent - Reconciliation of Net Transfers From Former Parent (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | ||
Issuance of equity to noncontrolling interest | $ 9 | |
Total net transfers from Former Parent per Consolidated Statements of Cash Flows | $ 52,802 | 83,330 |
Former Parent | ||
Related Party Transaction [Line Items] | ||
Total net transfers from Former Parent per Consolidated Statements of Equity | 100,915 | 116,830 |
Stock-based compensation | (45,303) | (33,509) |
Net proceeds from capital contributions by Former Parent | 83,235 | |
Issuance of equity to noncontrolling interest | (1,423) | 9 |
Other | (1,387) | |
Total net transfers from Former Parent per Consolidated Statements of Cash Flows | $ 136,037 | $ 83,330 |
Benefit Plan - Additional Infor
Benefit Plan - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |||
Company contributions to 401(k) Plan | $ 4.3 | $ 5.4 | $ 3.6 |