Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 07, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Entity Registrant Name | ADEIA INC. | ||
Trading Symbol | ADEA | ||
Entity Central Index Key | 0001803696 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 105,230,113 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 904,728,072 | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Entity File Number | 001-39304 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 84-4734590 | ||
Entity Address, Address Line One | 3025 Orchard Parkway | ||
Entity Address, City or Town | San Jose | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 95134 | ||
City Area Code | 408 | ||
Local Phone Number | 473-2500 | ||
Document Annual Report | true | ||
ICFR Auditor Attestation Flag | true | ||
Document Transition Report | false | ||
Security12b Title | Common Stock, par value $0.001 per share | ||
Security Exchange Name | NASDAQ | ||
Auditor Name | PricewaterhouseCoopers LLP | ||
Auditor Location | San Jose, California, USA | ||
Auditor Firm ID | 238 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE: Portions of the registrant’s Proxy Statement for the registrant’s 2023 Annual Meeting of Stockholders will be filed with the Commission within 120 days after the close of the registrant’s 2022 fiscal year and are incorporated by reference in Part III of this Annual Report on Form 10-K to the extent stated herein. |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Revenue | $ 438,933 | $ 391,212 | $ 515,919 |
Operating expenses: | |||
Research and development | 44,579 | 39,608 | 35,080 |
Selling, general and administrative | 135,630 | 129,214 | 136,800 |
Amortization expense | 97,077 | 98,090 | 58,617 |
Litigation expense | 8,587 | 5,272 | 17,967 |
Total operating expenses | 285,873 | 272,184 | 248,464 |
Operating income from continuing operations | 153,060 | 119,028 | 267,455 |
Interest expense | (45,335) | (38,973) | (37,873) |
Other income and expense, net | 2,047 | 768 | 3,212 |
Loss on debt extinguishment | 0 | (8,012) | (8,300) |
Income from continuing operations before income taxes | 109,772 | 72,811 | 224,494 |
Provision for (benefit from) income taxes | (28,620) | 4,828 | (15,312) |
Net income from continuing operations | 138,392 | 67,983 | 239,806 |
Net loss from discontinued operations, net of tax | (436,978) | (126,896) | (96,010) |
Net income (loss) | (298,586) | (58,913) | 143,796 |
Less: Net loss attributable to non-controlling interest in discontinued operations | (2,706) | (3,456) | (2,966) |
Net income (loss) attributable to the Company | $ (295,880) | $ (55,457) | $ 146,762 |
Basic | |||
Continuing operations | $ 1.33 | $ 0.65 | $ 2.89 |
Discontinued operations | (4.16) | (1.18) | (1.12) |
Net income (loss) | (2.83) | (0.53) | 1.77 |
Diluted | |||
Continuing operations | 1.29 | 0.63 | 2.86 |
Discontinued operations | (4.04) | (1.15) | (1.11) |
Net income (loss) | $ (2.75) | $ (0.52) | $ 1.75 |
Weighted average number of shares used in per share calculations-basic | 104,336 | 104,735 | 82,840 |
Weighted average number of shares used in per share calculations-diluted | 107,580 | 107,265 | 83,856 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (298,586) | $ (58,913) | $ 143,796 |
Other comprehensive income (loss), net of tax: | |||
Change in foreign currency translation adjustment | (4,425) | (1,975) | 1,345 |
Net unrealized losses on available-for-sale debt securities | 45 | (41) | (28) |
Other comprehensive income (loss), net of tax | (4,380) | (2,016) | 1,317 |
Comprehensive income (loss) | (302,966) | (60,929) | 145,113 |
Less: Comprehensive loss attributable to noncontrolling interest | (2,706) | (3,456) | (2,966) |
Comprehensive income (loss) attributable to the Company | $ (300,260) | $ (57,473) | $ 148,079 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 114,555 | $ 80,428 |
Available-for-sale debt securities | 60,534 | |
Accounts receivable, net of allowance for credit losses of $713 and $934, respectively | 58,480 | 64,187 |
Unbilled contracts receivable, net | 73,754 | 26,715 |
Other current assets | 11,924 | 10,490 |
Current assets of discontinued operations | 277,120 | |
Total current assets | 258,713 | 519,474 |
Long-term unbilled contracts receivable | 40,705 | 282 |
Property and equipment, net | 4,550 | 4,936 |
Operating lease right-of-use assets | 5,993 | 6,640 |
Intangible assets, net | 432,476 | 546,982 |
Goodwill | 313,660 | 314,576 |
Long-term income tax receivable | 113,679 | 118,059 |
Other long-term assets | 40,750 | 9,646 |
Long-term assets of discontinued operations | 949,427 | |
Total assets | 1,210,526 | 2,470,022 |
Current liabilities: | ||
Accounts payable | 8,546 | 448 |
Accrued legal fees | 4,942 | 4,980 |
Accrued liabilities | 26,335 | 21,752 |
Current portion of long-term debt | 109,813 | 36,095 |
Deferred revenue | 17,076 | 6,975 |
Current liabilities of discontinued operations | 119,497 | |
Total current liabilities | 166,712 | 189,747 |
Deferred revenue, less current portion | 10,683 | 13,443 |
Long-term deferred tax liabilities | 7,077 | |
Long-term debt, net | 619,580 | 729,392 |
Noncurrent operating lease liabilities | 4,794 | 5,641 |
Long-term income tax payable | 87,302 | 91,445 |
Other long-term liabilities | 20,043 | 3,792 |
Long-term liabilities of discontinued operations | 89,057 | |
Total liabilities | 909,114 | 1,129,594 |
Commitments and contingencies (Note 17) | ||
Company stockholders’ equity: | ||
Preferred stock: $0.001 par value; authorized (2022: 15,000 shares; 2021: 15,000 shares) and no shares issued and outstanding | ||
Common stock: $0.001 par value; (2022: authorized 350,000 shares, issued 113,460 shares, outstanding 103,260 shares; 2021: authorized 350,000 shares, issued 113,460 shares, outstanding 103,260 shares) | 117 | 113 |
Additional paid-in capital | 636,266 | 1,340,480 |
Treasury stock at cost (2022: 11,879 shares; 2021: 10,200 shares) | (211,223) | (178,022) |
Accumulated other comprehensive loss | (51) | (752) |
Retained earnings (accumulated deficit) | (123,697) | 187,814 |
Total Company stockholders’ equity | 301,412 | 1,349,633 |
Noncontrolling interest | (9,205) | |
Total equity | 301,412 | 1,340,428 |
Total liabilities and equity | $ 1,210,526 | $ 2,470,022 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Accounts receivable allowance for credit losses | $ 713 | $ 934 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 15,000,000 | 15,000,000 |
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) | 350,000,000 | 350,000,000 |
Common stock, shares issued (in shares) | 117,392,000 | 113,460,000 |
Common stock, shares outstanding (in shares) | 105,167,000 | 103,260,000 |
Treasury stock, shares (in shares) | 12,225,000 | 10,200,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (298,586,000) | $ (58,913,000) | $ 143,796,000 |
Adjustments to reconcile net income (loss) to net cash from operating activities: | |||
Depreciation of property and equipment | 17,144,000 | 23,801,000 | 17,918,000 |
Amortization of intangible assets | 143,243,000 | 203,401,000 | 156,826,000 |
Goodwill impairment | 354,000,000 | 0 | 0 |
Stock-based compensation expense | 52,626,000 | 58,182,000 | 39,135,000 |
Deferred income tax | (40,301,000) | (978,000) | (34,670,000) |
Loss on debt extinguishment | 0 | 8,012,000 | 8,300,000 |
Patent assets received in lieu of cash | (8,787,000) | ||
Other | 5,149,000 | 5,488,000 | 19,500,000 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 24,892,000 | (27,615,000) | 7,091,000 |
Unbilled contracts receivable, net | (86,673,000) | 58,496,000 | 76,262,000 |
Other assets | (3,243,000) | 7,497,000 | (41,948,000) |
Accounts payable | 18,601,000 | (5,234,000) | (4,863,000) |
Accrued and other liabilities | (3,614,000) | (27,910,000) | 21,692,000 |
Deferred revenue | (215,000) | (651,000) | 18,564,000 |
Net cash from operating activities | 183,023,000 | 234,789,000 | 427,603,000 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (12,576,000) | (13,950,000) | (7,379,000) |
Proceeds from sale of property and equipment | 86,000 | 19,000 | |
Net cash received (paid) for mergers and acquisitions | (50,473,000) | (17,400,000) | 117,424,000 |
Purchases of short-term investments | (4,490,000) | (67,343,000) | (77,178,000) |
Proceeds from sales of short-term investments | 28,254,000 | 49,768,000 | 11,225,000 |
Proceeds from maturities of short-term investments | 36,576,000 | 42,886,000 | 24,683,000 |
Purchases of intangible assets | (290,000) | (186,000) | (50,935,000) |
Net cash from investing activities | (2,913,000) | (6,206,000) | 17,840,000 |
Cash flows from financing activities: | |||
Repayment of debt | (40,500,000) | (84,048,000) | (520,250,000) |
Repayment of assumed debt from merger transaction | 0 | (734,609,000) | |
Proceeds from debt, net | 1,010,286,000 | ||
Debt refinancing costs | (4,253,000) | ||
Dividends paid | (20,888,000) | (20,979,000) | (30,829,000) |
Distribution of Xperi Inc. | (182,928,000) | ||
Proceeds from employee stock purchase program and exercise of stock options | 14,260,000 | 13,839,000 | 4,855,000 |
Repurchases of common stock | (33,201,000) | (100,804,000) | (80,589,000) |
Net cash from financing activities | (263,257,000) | (196,245,000) | (351,136,000) |
Effect of exchange rate changes on cash and cash equivalents | (3,419,000) | (1,405,000) | 1,330,000 |
Net increase (decrease) in cash and cash equivalents | (86,566,000) | 30,933,000 | 95,637,000 |
Cash and cash equivalents at beginning of period | 201,121,000 | 170,188,000 | 74,551,000 |
Cash and cash equivalents at end of period | 114,555,000 | 201,121,000 | 170,188,000 |
Supplemental disclosure of cash flow information: | |||
Interest paid | 40,505,000 | 32,363,000 | 31,240,000 |
Income taxes paid, net of refunds | 24,782,000 | 30,865,000 | 43,066,000 |
Debt acquired in a business acquisition | $ 50,000,000 | ||
Stock issued in merger transaction | $ 0 | $ 828,334,000 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Cash Flows [Abstract] | ||
Cash and cash equivalents, current assets of discontinued operations | $ 120.7 | $ 85.6 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) | Noncontrolling Interest |
Beginning balance at Dec. 31, 2019 | $ 545,100 | $ 64 | $ 768,284 | $ (368,701) | $ (53) | $ 148,317 | $ (2,811) |
Beginning balance (in shares) at Dec. 31, 2019 | 49,620,000 | 14,002,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of subsidiary shares to noncontrolling interest | (19) | 19 | |||||
Net income (loss) | 143,796 | 146,762 | (2,966) | ||||
Other comprehensive income (loss), net of tax | 1,317 | 1,317 | |||||
Cash dividends paid on common stock | (30,829) | (30,829) | |||||
Issuance of common stock in connection with exercise of stock options | 89 | 89 | |||||
Issuance of common stock in connection with exercise of stock options (in shares) | 7,000 | ||||||
Issuance of common stock in connection with employee stock purchase plan | $ 4,764 | 4,764 | |||||
Issuance of common stock in connection with employee common stock purchase plan (in shares) | 355,000 | 355,000 | |||||
Issuance of restricted stock, net of shares canceled | $ 2 | $ 2 | |||||
Issuance of restricted stock, net of shares cancelled (in shares) | 2,083,000 | ||||||
Withholding taxes related to net share settlement of restricted awards | $ (10,508) | $ (10,508) | |||||
Withholding taxes related to net share settlement of restricted awards (in shares) | 700,000 | (671,000) | 671,000 | ||||
Repurchases of common stock | $ (70,081) | $ (70,081) | |||||
Repurchases of common stock (in shares) | (4,919,000) | 4,919,000 | |||||
Common stock issued in merger transaction | 828,334 | $ 58 | 828,276 | ||||
Common stock issued in merger transaction (in shares) | 58,300,000 | ||||||
Retirement of treasury stock | $ (14) | (372,058) | $ 372,072 | ||||
Retirement of treasury stock (in shares) | (14,185,000) | ||||||
Stock-based compensation expense | 39,135 | 39,135 | |||||
Ending balance at Dec. 31, 2020 | 1,451,119 | $ 110 | 1,268,471 | $ (77,218) | 1,264 | 264,250 | (5,758) |
Ending balance (in shares) at Dec. 31, 2020 | 104,775,000 | 5,407,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of subsidiary shares to noncontrolling interest | (9) | 9 | |||||
Net income (loss) | (58,913) | (55,457) | (3,456) | ||||
Other comprehensive income (loss), net of tax | (2,016) | (2,016) | |||||
Cash dividends paid on common stock | (20,979) | (20,979) | |||||
Issuance of common stock in connection with exercise of stock options | 779 | 779 | |||||
Issuance of common stock in connection with exercise of stock options (in shares) | 39,000 | ||||||
Issuance of common stock in connection with employee stock purchase plan | $ 13,058 | $ 1 | 13,057 | ||||
Issuance of common stock in connection with employee common stock purchase plan (in shares) | 1,238,000 | 1,236,000 | |||||
Issuance of restricted stock, net of shares canceled | $ 2 | $ 2 | |||||
Issuance of restricted stock, net of shares cancelled (in shares) | 2,003,000 | ||||||
Withholding taxes related to net share settlement of restricted awards | $ (15,916) | $ (15,916) | |||||
Withholding taxes related to net share settlement of restricted awards (in shares) | 800,000 | (751,000) | 751,000 | ||||
Repurchases of common stock | $ (84,888) | $ (84,888) | |||||
Repurchases of common stock (in shares) | (4,042,000) | 4,042,000 | |||||
Stock-based compensation expense | 58,182 | 58,182 | |||||
Ending balance at Dec. 31, 2021 | 1,340,428 | $ 113 | 1,340,480 | $ (178,022) | (752) | 187,814 | (9,205) |
Ending balance (in shares) at Dec. 31, 2021 | 103,260,000 | 10,200,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of subsidiary shares to noncontrolling interest | 1,421 | (1,421) | |||||
Net income (loss) | (298,586) | (295,880) | (2,706) | ||||
Other comprehensive income (loss), net of tax | (4,380) | (4,380) | |||||
Cash dividends paid on common stock | (20,888) | (5,257) | (15,631) | ||||
Distribution of Xperi Inc. | (748,850) | (767,263) | 5,081 | $ 13,332 | |||
Issuance of common stock in connection with exercise of stock options | 128 | 128 | |||||
Issuance of common stock in connection with exercise of stock options (in shares) | 11,000 | ||||||
Issuance of common stock in connection with employee stock purchase plan | $ 14,132 | $ 1 | 14,131 | ||||
Issuance of common stock in connection with employee common stock purchase plan (in shares) | 1,301,000 | 1,301,000 | |||||
Issuance of restricted stock, net of shares canceled | $ 3 | $ 3 | |||||
Issuance of restricted stock, net of shares cancelled (in shares) | 2,620,000 | ||||||
Withholding taxes related to net share settlement of restricted awards | $ (15,941) | $ (15,941) | |||||
Withholding taxes related to net share settlement of restricted awards (in shares) | 1,000,000 | (996,000) | 996,000 | ||||
Repurchases of common stock | $ (17,260) | $ (17,260) | |||||
Repurchases of common stock (in shares) | (1,029,000) | 1,029,000 | |||||
Stock-based compensation expense | 52,626 | 52,626 | |||||
Ending balance at Dec. 31, 2022 | $ 301,412 | $ 117 | $ 636,266 | $ (211,223) | $ (51) | $ (123,697) | |
Ending balance (in shares) at Dec. 31, 2022 | 105,167,000 | 12,225,000 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends paid on common stock, price per share | $ 0.20 | $ 0.20 | $ 0.50 |
The Company And Basis Of Presen
The Company And Basis Of Presentation | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company and Basis of Presentation | NOTE 1 – THE COMPANY AND BASIS OF PRESENTATION Adeia Inc. (formerly known as Xperi Holding Corporation) (the "Company"), a Delaware corporation, is one of the industry’s largest intellectual property ("IP") licensing platforms, with a diverse portfolio of media and semiconductor intellectual property and more than 9,750 patents and patent applications worldwide. On December 18, 2019, Xperi Corporation (“Xperi”) entered into an Agreement and Plan of Merger and Reorganization with TiVo Corporation (“TiVo”) to combine in an all-stock merger of equals transaction (the “Mergers”). Immediately following the consummation of the Mergers on June 1, 2020 (the “Merger Date”), Xperi Holding Corporation, a Delaware corporation founded in December 2019 under the name “XRAY-TWOLF HoldCo Corporation,” became the parent company of both Xperi and TiVo. The common stock of Xperi and TiVo were de-registered after completion of the Mergers. On June 2, 2020, Xperi Holding Corporation’s common stock, par value $ 0.001 per share, commenced trading on the Nasdaq Global Select Market (“Nasdaq”) under the ticker symbol “XPER.” On October 1, 2022, the Company completed the previously announced separation ("the Separation") of its product business into a separate, independent, publicly-traded company, Xperi Inc. ("Xperi Inc."). The Separation was structured as a spin-off (the "Spin-off"), which was achieved through the Company's distribution of 100 percent of the outstanding shares of Xperi Inc.'s common stock to holders of the Company's common stock as of the close of business on the record date of September 21, 2022 (the "Record Date"). Each Company stockholder of record received four shares of Xperi Inc. common stock for every ten shares of Company common stock that it held on the Record Date. Following the Separation, the Company retains no ownership in Xperi Inc., which is now listed under the ticker symbol "XPER" on the New York Stock Exchange. Effective at the open of business on October 3, 2022, the Company's shares of common stock, par value $ 0.001 per share, began trading on the Nasdaq Global Select Market under the new ticker symbol "ADEA". The accounting requirements for reporting the Separation of Xperi Inc. as a discontinued operation were met when the Separation was completed. Accordingly, the financial results of Xperi Inc. for the years ended December 31, 2022, 2021 and 2020 are presented as net loss from discontinued operations, net of tax on the Consolidated Statements of Operations and its assets and liabilities as of December 31, 2021 are reclassified as discontinued operations in the Consolidated Balance Sheets. For further information on discontinued operations, see "Note 9 - Discontinued Operations ". Unless noted otherwise, discussion in the Notes to the Consolidated Financial Statements pertain to continuing operations. Additionally, as a result of the Separation, the Company changed its operational structure in the fourth quarter of 2022, resulting in one reportable segment: Intellectual Property ("IP") Licensing. 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 (“SEC”). All intercompany balances and transactions are eliminated in consolidation. The Company's fiscal year ends on December 31. The Company employs a calendar month-end reporting period for its quarterly reporting. Reclassification Certain reclassifications have been made to prior period balances in order to conform to the current period’s presentation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The accounting estimates and assumptions that require management’s most significant, challenging, and subjective judgment include identifying the performance obligations in the contract, estimating variable consideration, estimating quarterly royalties prior to receiving the royalty reports from the licensee, determining standalone selling price, and allocating consideration in a contract 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, among others. Actual results experienced by the Company may differ from management’s estimates. These estimates may change, as new events occur and additional information is obtained, and are recognized in the consolidated financial statements as soon as they become known. 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 be entitled to 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 4 – Revenue” for a detailed discussion on revenue and revenue recognition. 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. Cash and cash equivalents are maintained with various financial institutions. Short-term Investments The Company has historically held investments in debt securities which include corporate bonds and notes, treasury and agency notes and bills, commercial paper, certificates of deposit, and in equity securities consisting of money market funds. The Company classifies all investments as current as the securities are available for use, if needed, for current operations. Marketable Debt Securities The Company classifies its debt securities as available-for-sale (“AFS”), which are accounted for at fair value. For AFS debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more-likely-than-not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through income. For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in accumulated other comprehensive income or loss on the Consolidated Balance Sheets. Marketable Equity Securities Marketable equity securities are measured at fair value with unrealized gains and losses recognized in other income and expense, net, on the Consolidated Statements of Operations. 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 and 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 income and expense, 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 instruments. Long-term debt is carried at amortized cost and measured at fair value on a quarterly basis for disclosure purposes. See “Note 7 – Fair Value” for further information . Concentration of Credit and Other Risks Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash equivalents, short-term investments and accounts receivable. The Company follows a corporate investment policy which sets credit, maturity and concentration limits and regularly monitors the composition, market risk and maturities of these investments. The Company believes that any concentration of credit risk in its accounts receivable is substantially mitigated by the Company’s 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. See "Note 18 - Segment and Geographic Information " for further discussion on concentration of credit and other risks. Allowance for Credit Losses 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. See “Note 4 – Revenue ” for a further discussion of the allowance for credit losses. Business Combinations The Company accounts for business combinations using the acquisition method of accounting in accordance with ASC 805, “Business Combinations.” 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 discount rates based on an analysis of the weighted average cost of capital, adjusted for specific risks associated with the assets. Goodwill and Identified Intangible Assets Goodwill 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 under a business combination. Goodwill also includes acquired assembled workforce, which does not qualify as an identifiable intangible asset. The Company performs an annual review of the valuation of goodwill in the fourth quarter, or more often if indicators of impairment exist. Triggering events for impairment reviews may be indicators such as adverse industry or economic trends, restructuring actions, lower projections of profitability or a sustained decline in the Company's market capitalization. Evaluations of possible impairment and, if applicable, adjustments to carrying values require the Company to estimate, among other factors, future cash flows, useful lives and fair market values of the Company's assets. When the Company conducts the evaluation of goodwill, the fair value of goodwill is assessed using valuation techniques that require significant management estimates and judgment. In performing the quantitative impairment test for goodwill, the fair value of the reporting unit is compared to its carrying amount. The Company utilizes the market capitalization approach to determine the fair value of a reporting unit. Under the market capitalization approach, the fair value of a reporting unit is estimated based on the trading price of the Company's stock as of the test date, or trading prices over a short period of time immediately prior or subsequent to the test date if such prices more reasonably represent the estimated fair value as of the test date, which is further adjusted by a control premium representing the synergies a market participant would achieve when obtaining control of the business. Identified intangible assets Identified finite-lived intangible assets consist of acquired patents, existing technology, customer relationships and trademarks and trade names resulting from business combinations, as well as 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 . The Company makes judgments about the recoverability of intangible assets whenever events or changes in circumstances indicate that impairment may exist. If such facts and circumstances exist, the Company assesses the recoverability by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their remaining lives against their respective carrying amounts. Impairments, if any, are based on the excess of the carrying amount over the fair value of those assets. If the useful life is shorter than originally estimated, the Company would accelerate the rate of amortization and amortize the remaining carrying value over the new shorter useful life. For further discussion of goodwill and identified intangible assets, see “Note 11 – Goodwill and Identified Intangible Assets .” Debt Discount and Issuance Costs Debt discount and issuance costs are presented in the Consolidated Balance Sheet as a deduction from the carrying amount of both the short-term debt and long-term debt, and are amortized over the term of the associated debt to interest expense using the effective interest method. In addition, the Company elects to continue to defer the unamortized debt discount and issuance costs when it voluntarily pays down a portion of the debt as the prepayment is factored into the terms agreed to on the debt. Treasury Stock The Company accounts for stock repurchases using the cost method. For reissuance of treasury stock, to the extent that the reissuance price is more than the cost, the excess is recorded as an increase to additional paid-in capital. If the reissuance price is less than the cost, the difference is recorded in additional paid-in capital to the extent there is a cumulative treasury stock paid-in capital balance. Once the cumulative balance is reduced to zero, any remaining difference resulting from the sale of treasury stock below cost is recorded as a reduction of retained earnings. Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“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. As a practical expedient, the Company elected, for all office and facility leases, not to separate nonlease components from lease components and instead to account for each separate lease component and its associated non-lease components as a single lease component. For additional information regarding the Company's leases, refer to “Note 8 – Leases.” Research and Development Research and development expense (“R&D expense”) consists primarily of employee-related costs, stock-based compensation expense, engineering consulting expenses associated with new IP development, as well as costs related to patent applications and examinations, reverse engineering, materials, supplies and an allocation of facilities costs. All R&D expense is expensed as incurred. Stock-based Compensation Expense Stock-based compensation is measured at the grant date based on the estimated fair value of the award and is recognized as expense 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 stock units (“PSUs”) that are based on company-designated performance targets. For performance stock awards 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 options and stock to be issued under the employee stock purchase plan (“ESPP”) using the Black-Scholes pricing model. See “Note 15 – Stock-based Compensation Expense ” for additional detail. Performance-based PSU awards will vest if certain employee-specific or company-designated performance targets are achieved. If minimum performance thresholds are achieved, each PSU award will convert into the Company’s common stock at a defined ratio depending on the degree of achievement of the performance target designated by each individual award. If minimum performance thresholds are not achieved, then no shares will be issued. The expected levels of achievement are reassessed over the requisite service periods and, to the extent that the expected levels of achievement change, stock-based compensation is adjusted in the period of change and recorded on the statements of operations and the remaining unrecognized stock-based compensation is recorded over the remaining requisite service period. For market-based PSUs, 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 unless it is due to termination. Income Taxes The Company must make certain estimates and judgments in determining income tax expense for financial statement purposes. These estimates and judgments are used in the calculation of tax credits, tax benefits, tax deductions, and in the calculation of certain deferred taxes and tax liabilities. Significant changes to these estimates may result in an increase or decrease to the Company’s tax provision in a subsequent period. The provision for income taxes is comprised of the Company’s current tax liability and changes in deferred income tax assets and liabilities. The calculation of the current tax liability involves dealing with uncertainties in the application of complex tax laws and regulations and in determining the liability for tax positions, if any, taken on the Company’s tax returns in accordance with authoritative guidance on accounting for uncertainty in income taxes. Deferred income taxes are determined based on the differences between the financial reporting and tax basis of assets and liabilities. The Company must assess the likelihood that it will be able to recover its deferred tax assets. If recovery is not likely on a more-likely-than-not basis, the Company must increase its provision for income taxes by recording a valuation allowance against the deferred tax assets that it estimates will not ultimately be recoverable. However, should there be a change in the Company’s ability to recover its deferred tax assets, the provision for income taxes would fluctuate in the period of such change. See “Note 16 – Income Taxes” for additional detail. 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 were $ 5.5 million for the year ended December 31, 2022, and were not material for the years ended December 31, 2021 and 2020. Guarantees and Indemnification The Company has certain financial and performance guarantees which have been issued in the normal course of business. The Company entered into the underlying arrangement with a third-party to facilitate commercial transactions. See "Note 17 - Commitments and Contingencies " for further information regarding the Company's guarantees. The Company provides indemnification of varying scope to certain customers against claims of intellectual property infringement made by third parties arising from the use of the Company’s technologies. In accordance with authoritative guidance for accounting for guarantees, the Company evaluates estimated losses for such indemnification. The Company considers such factors as the degree of probability of an unfavorable outcome and the ability to make a reasonable estimate of the amount of loss. To date, no such claims have been filed against the Company 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 maintains a directors’ and officers’ liability insurance policy that is intended to reduce its financial exposure and may enable the Company to recover any payments, should they occur. 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 nature of the loss contingency and the fact that an estimate cannot be made. If a loss is reasonably possible but not probable, the Company discloses the nature of the loss contingency and an estimate of the possible loss, range of loss or the fact that 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. See “Note 17 – Commitments and Contingencies ,” for further information regarding the Company’s pending litigation. Property and Equipment Property and equipment are recorded at cost, less accumulated depreciation. Depreciation expense 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. Foreign Currency Translation The Company uses the U.S. dollar as its functional currency. Non-U.S. subsidiaries may designate a local currency as their functional currency. The translation of assets and liabilities into U.S. dollars for subsidiaries with a functional currency other than the U.S. dollar is performed using exchange rates in effect at the balance sheet date. The translation of revenues and expenses into U.S. dollars for subsidiaries with a functional currency other than the U.S. dollar is performed using the average exchange rate for the respective period. Gains or losses from cumulative translation adjustments, net of tax, are included as a component of accumulated other comprehensive income (loss) in the Consolidated Balance Sheets. The Company records net foreign exchange transaction gains and losses resulting from the conversion of the transaction currency to the functional currency within other income and expense, net. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Pronouncements | NOTE 3 – RECENT ACCOUNTING PRONOUNCEMENTS Recently Adopted Accounting Pronouncements In October 2021, the Financial Accounting Standards Board (“FASB”) issued ASU 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 from Contracts with Customers (“Topic 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. ASU 2021-08 is effective for public business entities for fiscal years beginning after December 15, 2022 and early adoption is permitted. The Company elected to early adopt the new standard on January 1, 2022 . The adoption did no t have an impact on the Company’s consolidated financial statements. Recent Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). ASU 2020-04 provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in ASU 2020-04 apply only to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848), which provides further clarification on the scope of Topic 848 so that derivatives affected by the discounting transition are explicitly eligible for certain optional expedients and exceptions in Topic 848. ASU 2020-04 became effective upon issuance and may be applied prospectively to contract modifications made on or before December 31, 2022. ASU 2021-01 became effective upon issuance and may be applied on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 or prospectively for contract modifications made on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 ("ASU 2022-06"), which deferred the application dates of Topic 848 to December 31, 2024. The Company currently has debt agreements that reference LIBOR and will apply the amendments prospectively through December 31, 2024 as these contracts are modified to reference other rates. The Company does not anticipate the adoption will have a material impact to the Company's consolidated financial statements. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | NOTE 4 – REVENUE Revenue Recognition General Revenue is recognized when control of the intellectual property ("IP") rights is transferred to a customer in an amount that reflects the consideration the Company expects to be entitled to in exchange for the licensing of the Company's IP, which may include various combinations of IP rights and services which are generally capable of being distinct and accounted for as separate performance obligations. In situations where foreign withholding taxes are withheld by the Company’s licensee, revenue is recognized gross of withholding taxes that are remitted directly by the licensee to a local tax authority. 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 a contract with multiple performance obligations, the transaction price is allocated among the separate performance obligations on a relative standalone selling price basis. The determination of standalone 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, standalone selling price for separate performance obligations is based on the adjusted market assessment approach to estimate the price that a customer in the relevant market would be willing to pay for licensing the Company’s IP rights. The allocation of transaction price among performance obligations in a contract may impact the amount and timing of revenue recognized in the Consolidated Statements of Operations during a given period. When a contract with a customer includes variable consideration, an estimate of the consideration which the Company expects to be entitled to for transferring the promised IP rights or services is made at contract inception and in each subsequent reporting period until the uncertainty associated with the variable consideration is resolved. The amount of variable consideration is estimated by considering all available information (historical, current, and forecast) and is updated as additional information becomes available. The estimate of variable consideration is included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Subsequent changes in the transaction price resulting from changes in the estimate of variable consideration are allocated to the performance obligations in the contract on the same basis as at contract inception. When variable consideration is in the form of a sales-based or usage-based royalty in exchange for a license of IP, 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 IP License Arrangements The Company licenses (i) its media patent portfolios (“Media IP licensing”) to multichannel video programming distributors, over-the-top video service providers, consumer electronics manufacturers, social media, and other new media companies and (ii) its semiconductor technologies and associated patent portfolios (“Semiconductor IP licensing”) to memory, logic, sensors, radio frequency (“RF”) component, and foundry companies. The Company generally licenses its IP portfolios under three models: (i) fixed-fee Media IP licensing, (ii) fixed-fee or minimum guarantee Semiconductor IP licensing, and (iii) per-unit or per-subscriber Media IP or Semiconductor IP royalty licensing. Fixed-fee Media IP licensing The Company's long-term fixed-fee Media IP licensing contracts provide its customers with rights to future patented technologies over the term of the contract that are highly interdependent or highly interrelated to the patented technologies provided at the inception of the contract. The Company treats these rights as a single performance obligation with revenue recognized on a straight-line basis over the term of the fixed-fee license contract. Fixed-fee or minimum guarantee Semiconductor IP licensing The Company enters into Semiconductor IP licenses that have a fixed fee or a minimum guarantee, whereby licensees pay a fixed fee for the right to incorporate the Company’s IP technologies in the licensee’s products over the license term. In contracts 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 IP 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 contracts where the customer exceeds the minimum, the Company recognizes revenue relating to any additional per-unit fees in the periods it believes the customer has exceeded the minimum and adjusts the revenue based on actual usage once that is reported by the customer. Per-unit or per-subscriber Media IP or Semiconductor IP royalty licensing The Company recognizes revenue from per-unit or per-subscriber IP royalty licenses in the period in which the licensee's sales or production are estimated to have occurred, which results in an adjustment to revenue when actual sales or production are subsequently reported by the licensee, which is generally in the month or quarter following usage or shipment. Estimating customers’ monthly or 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. IP license contracts with multiple performance obligations At times, the Company enters into long-term license contracts with more than one performance obligation, which may include releases from past patent infringement claims or one or more prospective licenses. In these arrangements, the Company allocates the transaction price between releases for past patent infringement claims and prospective licenses based on their relative standalone selling prices, which requires significant management judgment. In determining the standalone selling price of each performance obligation, the Company considers such factors as the number of past and projected future subscribers, units shipped, and units manufactured, as well as the per-subscriber or per-unit licensing rates the Company generally receives from licensees of comparable sizes in comparable markets and geographies. As a release from past patent infringement claims is generally satisfied at execution of the contract, the transaction price allocated to the release from past patent infringement claims is generally recognized in the period the contract is executed. Transaction price allocated to prospective Media IP licenses is recognized ratably over the license term, and transaction price allocated to prospective Semiconductor IP licenses is recognized upon execution of the contract. 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. 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 less than one year ; amounts attributable to variable consideration arising from (i) a sales-based or usage-based royalty of an intellectual property 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. Revenue Details Contract Balances Contracts 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 long-term assets if the payments are expected to be received more than one year from the reporting date. Contract assets also include the incremental costs of obtaining a contract with a customer, principally sales commissions when the renewal commission is not commensurate with the initial commission. Contract assets were recorded in the Consolidated Balance Sheets as follows (in thousands): December 31, 2022 December 31, Unbilled contracts receivable $ 73,754 $ 26,715 Other current assets 512 426 Long-term unbilled contracts receivable 40,705 282 Other long-term assets 1,144 1,267 Total contract assets $ 116,115 $ 28,690 Contract Liabilities Contract liabilities are comprised of deferred revenue related to multi-period licensing arrangements for which the Company is paid in advance, while the underlying performance obligation is satisfied at a future date or over time. Allowance for Credit Losses The allowance for credit losses represents the Company’s best estimate of lifetime expected credit losses inherent in accounts receivable and unbilled contracts receivable. The Company’s long-term unbilled contracts receivable is derived from fixed-fee or minimum-guarantee Semiconductor IP and is primarily comprised of contracts with large, well-capitalized companies. It is generally considered to be of high credit quality due to past collection history and the nature of the customers. The Company allowance for credit losses for the years ended December 31, 2022 and 2021 was $ 0.7 million and $ 0.9 million, respectively and it is presented as part of accounts receivable, net in the Consolidated Balance Sheets. Additional Disclosures The following table presents additional revenue and contract disclosures (in thousands): Years Ended December 31, 2022 2021 2020 Revenue recognized in the period from: Amounts included in deferred revenue at the beginning of the period $ 5,509 $ 4,476 $ 904 Performance obligations satisfied in previous periods (1) $ 12,976 (2) $ 33,885 (3) $ 282,893 (4) (1) Performance obligations satisfied in previous periods consist of settlements of litigation during the period for past royalties owed pursuant to expired or terminated IP license agreements. (2) Includes past royalty revenue from the execution of long-term license agreements with a leading consumer electronics and OTT service provider and two social media companies. The long-term license agreements were effective as of the expiration of the prior agreements. The Company recorded revenue from both the settlement and the license agreements, referred to above, in the second and fourth quarter of 2022 and expects to record revenue from the prospective license in future periods. (3) Includes past royalty revenue from the execution of multiple long-term license agreements. The Company recorded revenue from both the settlement and the license agreements during 2021 and continues to record revenue from the prospective license. (4) Includes past royalty revenue from the execution of a license agreement with a pay-TV provider. On November 9, 2020, the Company entered into a patent license agreement, which was effective as of the expiration of the customer's prior agreement in 2016 and its term expires in 2031. In connection with the agreement, the Company recorded revenue from past royalties in the fourth quarter of 2020 and expects to record revenue from the prospective license into 2031. 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. Amounts Revenue from contracts with performance obligations expected to be satisfied in: 2023 $ 157,160 2024 146,095 2025 141,295 2026 42,481 2027 32,908 Thereafter 59,527 Total $ 579,466 |
Composition of Certain Financia
Composition of Certain Financial Statement Captions | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Composition of Certain Financial Statement Captions | NOTE 5 – COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS Other current assets consisted of the following (in thousands): December 31, 2022 2021 Prepaid income taxes $ 7,252 $ 4,938 Prepaid insurance 2,103 2,057 Prepaid expenses 1,924 2,000 Other 645 1,495 $ 11,924 $ 10,490 Property and equipment, net consisted of the following (in thousands): December 31, 2022 2021 Equipment, furniture and other $ 14,148 $ 16,839 Leasehold improvements 5,057 5,724 19,205 22,563 Less: Accumulated depreciation and amortization ( 14,655 ) ( 17,627 ) $ 4,550 $ 4,936 Other long-term assets consisted of the following (in thousands): December 31, 2022 2021 Long-term deferred tax assets $ 35,278 $ 1,910 Other assets 5,472 7,736 $ 40,750 $ 9,646 Accrued liabilities consisted of the following (in thousands): December 31, 2022 2021 Employee compensation and benefits $ 6,978 $ 7,266 Accrued expenses 12,745 10,188 Accrued income taxes 358 736 Current portion of guarantee 2,431 — Current portion of operating lease liabilities 2,108 1,742 Other 1,715 1,820 $ 26,335 $ 21,752 Refer to "Note 17 - Commitments and Contingencies " for further detail on the nature of the guarantee. Other long-term liabilities consisted of the following (in thousands): December 31, 2022 2021 Long-term portion of guarantee 18,064 — Other 1,979 3,792 $ 20,043 $ 3,792 Refer to "Note 17 - Commitments and Contingencies " for further detail on the nature of the guarantee. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Financial Instruments | NOTE 6 – FINANCIAL INSTRUMENTS The Company has investments in debt securities which include corporate bonds and notes, treasury and agency notes and bills, commercial paper, certificates of deposit, and in equity securities consisting of money market funds. The Company classifies its debt securities as available-for-sale (“AFS”), which are accounted for at fair value with credit related losses recognized as a provision for credit losses in its Consolidated Statements of Operations and all non-credit related unrealized gains and losses recognized in accumulated other comprehensive income or loss on the Consolidated Balance Sheets. Under ASU 2016-01 (Topic 321), equity securities are measured at fair value with unrealized gains and losses recognized in other income and expense, net, in the Consolidated Statements of Operations. The following is a summary of marketable securities at December 31, 2022 and December 31, 2021 (in thousands): December 31, 2022 Cost Gross Gross Allowance for Credit Losses Estimated Marketable securities Corporate bonds and notes $ 29,018 $ 3 $ ( 6 ) $ — $ 29,015 Total debt securities 29,018 3 ( 6 ) 29,015 Money market funds 4,107 4,107 Total equity securities 4,107 — — — 4,107 Total marketable securities $ 33,125 $ 3 $ ( 6 ) $ — $ 33,122 Reported in: Cash and cash equivalents $ 33,122 December 31, 2021 Cost Gross Gross Allowance for Credit Losses Estimated Marketable securities Corporate bonds and notes $ 40,466 $ — $ ( 53 ) $ — $ 40,413 Commercial paper 49,609 — ( 18 ) — 49,591 Total debt securities 90,075 — ( 71 ) — 90,004 Money market funds 12,372 — — — 12,372 Total equity securities 12,372 — — — 12,372 Total marketable securities $ 102,447 $ — $ ( 71 ) $ — $ 102,376 Reported in: Cash and cash equivalents $ 41,842 Available-for-sale debt securities 60,534 Total marketable securities $ 102,376 At December 31, 2022 and 2021, the Company had $ 114.6 million and $ 141.0 million, respectively, in cash, cash equivalents and short-term investments. A significant portion of these amounts were held in marketable securities, as shown above. The remaining balance of $ 81.5 million and $ 38.6 million at December 31, 2022 and December 31, 2021, respectively, was cash held in operating accounts not included in the tables above. Debt Securities The gross realized gains and losses on sales of marketable debt securities were immaterial during the years ended December 31, 2022, 2021 and 2020. Unrealized losses on AFS d ebt securities were immaterial as of December 31, 2022 and December 31, 2021. The Company evaluated whether the decline in fair value has resulted from credit losses or other factors and concluded these amounts were related to temporary fluctuations in value of AFS securities and were due primarily to changes in interest rates and market conditions of the underlying securities. In addition, the contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. The Company does not intend to sell the debt securities and it is more-likely-than-not that it will not be required to sell the investments before recovery of their amortized cost bases. The Company did no t recognize a provision for credit loss expense related to its AFS debt securities for the years ended December 31, 2022 and 2021, respectively. No impairment charges were recorded on the AFS debt securities for the year ended December 31, 2022. The following table summarizes the fair value and gross unrealized losses related to individual debt securities at December 31, 2022 and 2021, which have been in a continuous unrealized loss position, aggregated by investment category and length of time (in thousands): December 31, 2022 Less Than 12 Months 12 Months or More Total Fair Value Fair Gross Fair Gross Fair Gross Cash and Cash Equivalents AFS Debt Securities Commercial paper $ 29,015 $ ( 6 ) $ — $ — $ 29,015 $ ( 6 ) $ 29,015 $ — December 31, 2021 Less Than 12 Months 12 Months or More Total Fair Value Fair Gross Fair Gross Fair Gross Cash and Cash Equivalents AFS Debt Securities Corporate bonds and notes $ 29,807 $ ( 45 ) $ 10,382 $ ( 8 ) $ 40,189 $ ( 53 ) $ - $ 40,189 Commercial paper 48,091 ( 18 ) — — 48,091 ( 18 ) 29,470 18,621 Total $ 77,898 $ ( 63 ) $ 10,382 $ ( 8 ) $ 88,280 $ ( 71 ) $ 29,470 $ 58,810 The estimated fair value of marketable debt securities by contractual maturity at December 31, 2022 is shown below (in thousands). Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without call or prepayment penalties. Estimated Due in one year or less $ 29,015 |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value | NOTE 7 – 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. There were no significant transfers into or out of Level 1 or Level 2 that occurred between December 31, 2021 and December 31, 2022. The following sets forth the fair value, and classification within the hierarchy, of the Company’s assets required to be measured at fair value on a recurring basis as of December 31, 2022 (in thousands): Fair Value Quoted Significant Significant Assets Marketable securities Money market funds - equity securities (1) $ 4,107 $ 4,107 $ — $ — Commercial paper - debt securities (2) 29,015 — 29,015 — Total Assets $ 33,122 $ 4,107 $ 29,015 $ — (1) Reported as cash and cash equivalents in the Consolidated Balance Sheet. (2) Reported as cash and cash equivalents as these were purchased with original maturities of three months or less at the date of purchase. The following sets forth the fair value, and classification within the hierarchy, of the Company’s assets required to be measured at fair value on a recurring basis as of December 31, 2021 (in thousands): Fair Value Quoted Significant Significant Assets Marketable securities Money market funds - equity securities (1) $ 12,372 $ 10,372 $ 2,000 $ — Corporate bonds and notes - debt securities (2) 40,413 — 40,413 — Commercial paper - debt securities (3) 49,591 — 49,591 — Total Assets $ 102,376 $ 10,372 $ 92,004 $ — (1) Reported as cash and cash equivalents in the Consolidated Balance Sheet. (2) Reported as AFS debt securities in the Consolidated Balance Sheet. (3) Reported as cash and cash equivalents if purchased with an original maturity of three months or less at the date of purchase; otherwise reported as AFS debt securities in the Consolidated Balance Sheet. Financial Instruments Not Recorded at Fair Value The Company’s long-term debt is carried at amortized 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, 2022 December 31, 2021 Carrying Estimated Fair Carrying Estimated Fair Refinanced Term B Loans (1) 729,393 700,217 765,487 764,530 Total long-term debt, net $ 729,393 $ 700,217 $ 765,487 $ 764,530 (1) Carrying amounts of long-term debt are net of unamortized debt discount and issuance c osts of $ 19.9 million and $ 24.3 million as of December 31, 2022 and 2021, respectively. See “Note 12 – Debt ” for additional information. 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. Non-Recurring Fair Value Measurements For purchase accounting related fair value measurements, see "Note 10 - Business Combinations" For impairment related fair value measurements, see "Note 11 - Goodwill And Identified Intangible Assets" |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | NOTE 8 - LEASES Under Topic 842, a contract is a lease, or contains a lease, if the contract conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. To determine whether a contract conveys the right to control the use of an identified asset for a period of time, an entity shall assess whether, throughout the period of use, the entity has both of the following: (a) the right to obtain substantially all of the economic benefits from use of the identified asset; and (b) the right to direct the use of the identified asset. The Company leases office and research facilities, and office equipment under operating leases which expire through 2027. The Company’s leases have remaining lease terms of two to five years , some of which may include options to extend the leases for five years or longer, and some of which may include options to terminate the leases within the next 5 years or less. Leases with an initial term of 12 months or less are not recorded on the Consolidated 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 right-of-use assets calculation. As a practical expedient, the Company elected, for all office and facility leases, not to separate nonlease components (e.g., common-area maintenance costs) from lease components (e.g., fixed payments including rent) and instead to account for each separate lease component and its associated non-lease components as a single lease component. As most of the leases do not provide an implicit rate, the Company generally, for purposes of discounting lease payments, 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 components of operating lease costs were as follows (in thousands): Years Ended December 31, 2022 2021 2020 Fixed lease cost (1) $ 2,177 $ 3,387 $ 3,962 Variable lease cost 598 1,002 $ 166 Total operating lease cost $ 2,775 $ 4,389 $ 4,128 (1) Includes short-term leases costs, which were immaterial. Other information related to leases was as follows (in thousands, except lease term and discount rate): Years Ended December 31, 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,227 $ 4,039 $ 3,357 ROU assets obtained in exchange for new lease liabilities: Operating leases $ 1,153 $ 764 $ — Years ended December 31, 2022 2021 Weighted-average remaining lease term (years): Operating leases 3.19 2.18 Weighted-average discount rate: Operating leases 5.4 % 2.0 % F uture minimum lease payments and related lease liabilities as of December 31, 2022 were as follows (in thousands): Operating Lease Payments (1) 2023 $ 2,429 2024 2,524 2025 1,975 2026 290 2027 299 Total lease payments 7,517 Less: imputed interest ( 615 ) Present value of lease liabilities: $ 6,902 Less: current obligations under leases (accrued liabilities) ( 2,108 ) Noncurrent operating lease liabilities $ 4,794 (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. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | NOTE 9 – DISCONTINUED OPERATIONS On October 1, 2022, the Company completed the Separation of its product business into a separate, independent, publicly-traded company, Xperi Inc. (the "Separation"). The Separation was achieved through the Company's distribution of 100 percent of the outstanding shares of Xperi Inc.'s common stock to holders of the Company's common stock as of the close of business on the record date of September 21, 2022 (the "Record Date"). Each Company stockholder of record received four shares of Xperi Inc. common stock for every ten shares of Company common stock that it held on the Record Date. Following the Separation, the Company retains no ownership in Xperi Inc. The accounting requirements for reporting the Separation of Xperi Inc. as a discontinued operation were met when the Separation was completed. Accordingly, the historical financial results of Xperi Inc. have been presented as discontinued operations and, as such, have been excluded from continuing operations and results of operations from all periods presented. Prior to the Separation, the Company reported the results of operations of Xperi Inc. as part of its Product segment. During the fourth quarter of 2022, the Company changed its organizational structure, resulting in one reportable segment: IP Licensing. For additional information relating to the Company's segment and geographic information, refer to "Note 18 - Segment and Geographic Information ". The Company's presentation of discontinued operations excludes general corporate overhead costs, which were historically allocated to Xperi Inc., that do not meet the requirements to be presented in discontinued operations, although such costs are not reflective of the on-going operations of the Company. Such allocations included labor and non-labor costs related to the Company’s corporate support functions (e.g., administration, human resources, finance, accounting, tax, information technology, corporate development, legal, among others) that historically provided support to Xperi Inc. prior to the Separation. In addition, discontinued operations excludes the historical intercompany balances and transactions between the Company and Xperi Inc. that were eliminated in consolidation. In connection with the Separation, the Company incurred separation costs of $ 42.3 million from January 1, 2020 to December 31, 2022. Separation costs primarily consist of third-party advisory, consulting, legal and professional service, IT and employee bonus costs directly related to the Separation, as well as other items that are incremental and one-time in nature. Out of these costs, $ 16.9 million, $ 6.9 million and $ 4.8 million were incurred during the nine months ended September 30, 2022 and the years ended December 31, 2021, and 2020 respectively, and are included in net loss from discontinued operations, net of tax. The remaining separation costs of $ 13.7 million were incurred after the Separation during the fourth quarter of 2022 and are reflected in continuing operations within operating expenses in the Company's Consolidated Statement of Operations. The Company and Xperi Inc. entered into various agreements to effect the Separation and provide a framework for their on-going relationship, including a separation and distribution agreement, transition services agreement, employee matters agreement, tax matters agreement, cross business license agreement and data sharing agreement. The transition services agreement consists of services that Xperi Inc. and its subsidiaries will provide to the Company and its subsidiaries for a transitional period, as defined in the agreement. The services to be provided include back office functions and assistance with regard to administrative tasks relating to day-to-day activities as needed, including finance, accounting and tax activities, IT services, customer support, facilities services, human resources, and general corporate support, as well as pass-through services provided by certain vendors. The impact of these transition services on the Company's Consolidated Financial Statements for the year ended December 31, 2022 was not material. Net Loss from Discontinued Operations The financial results of Xperi Inc. through September 30, 2022 are presented as net loss from discontinued operations, net of tax, on the Consolidated Statements of Operations. The following table presents financial results of Xperi Inc. (in thousands): 2022 (1) 2021 2020 Revenue $ 366,730 $ 486,484 $ 376,101 Operating expenses: Cost of revenue 85,689 125,627 77,788 Research and development 158,708 194,869 161,630 Selling, general and administrative 123,764 137,745 109,188 Depreciation expense 15,702 21,777 16,298 Amortization expense 46,166 105,311 98,209 Litigation expense 921 6,371 2,815 Goodwill impairment 354,000 — — Total operating expenses 784,950 591,700 465,928 Operating loss ( 418,220 ) ( 105,216 ) ( 89,827 ) Interest expense ( 754 ) — — Other income and expense, net 62 1,870 1,242 Loss before taxes ( 418,912 ) ( 103,346 ) ( 88,585 ) Provision for income taxes 18,066 23,550 7,425 Net loss from discontinued operations, net of tax $ ( 436,978 ) $ ( 126,896 ) $ ( 96,010 ) Less: net loss attributable to noncontrolling interest ( 2,706 ) ( 3,456 ) ( 2,966 ) Net loss attributable to discontinued operations $ ( 434,272 ) $ ( 123,440 ) $ ( 93,044 ) (1) Represents nine months of Xperi Inc.'s operations in 2022, as compared to a full year of Xperi Inc.'s operations in 2021 and 2020. Assets and Liabilities of Discontinued Operations The following table presents the aggregate carrying amounts of the major classes of assets and liabilities of discontinued operations (in thousands): 2021 Assets Current assets: Cash and cash equivalents $ 120,695 Accounts receivable, net of allowance for credit losses 79,494 Unbilled contracts receivable, net 50,962 Other current assets 25,969 Total current assets of discontinued operations 277,120 Long-term unbilled contracts receivable 3,825 Property and equipment, net 56,038 Operating lease right-of-use assets 61,858 Intangible assets, net 270,934 Goodwill 536,512 Other long-term assets 20,260 Total assets of discontinued operations $ 1,226,547 Liabilities Current liabilities: Accounts payable $ 7,362 Accrued legal fees 2,210 Accrued liabilities 81,764 Deferred revenue 28,161 Total current liabilities of discontinued operations 119,497 Deferred revenue, less current portion 23,663 Long-term deferred tax liabilities 12,771 Noncurrent operating lease liabilities 49,017 Other long-term liabilities 3,606 Total liabilities of discontinued operations $ 208,554 The total net impact to stockholders' equity as a result of the Separation was a reduction of $ 748.9 million, which has been reflected as a reduction of $ 767.3 million, $ 5.1 million and $ 13.3 million to additional paid-in capital, accumulated other comprehensive income/(loss) and noncontrolling interest, respectively, in the Consolidated Statements of Equity as of December 31, 2022. Transactions of Discontinued Operations The following transactions have been included as part of discontinued operations for all the periods presented. Business Combinations The Company completed certain acquisitions that were accounted for as business combinations, using the acquisition method. The assets and liabilities and results of operations following the business combinations were attributed to the Company's former Product business; therefore, the assets and liabilities are presented in the Consolidated Balance Sheet for the year ended December 31, 2021 as assets and liabilities of discontinued operations. The results of operations are presented in the Consolidated Statements of Operations for all periods as net loss from discontinued operations, net of tax. MobiTV On May 31, 2021, the Company completed the acquisition of certain assets and assumption of certain liabilities of MobiTV, Inc. (“MobiTV”), a provider of application-based Pay-TV video delivery solutions (the "MobiTV Acquisition"). The net purchase price for the MobiTV Acquisition was $ 17.4 million. Purchase Price Allocation The MobiTV 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, with any excess of the purchase price over the estimated fair value of the identifiable net assets acquired recorded to goodwill, all of which is expected to be deductible for tax purposes. The following table sets forth the final purchase price allocation (in thousands): Estimated Useful Final Other current assets $ 390 Property and equipment 9,223 Operating lease right-of-use assets 1,186 Identifiable intangible assets: Patents 10 5,000 Technology 6 3,260 Total identifiable intangible assets 8,260 Goodwill 4,059 Other long-term assets 115 Accrued liabilities ( 5,288 ) Noncurrent operating lease liabilities ( 545 ) Total purchase price $ 17,400 The results of operations and cash flows relating to the business acquired pursuant to the MobiTV Acquisition were included in the Company’s Consolidated Financial Statements for periods subsequent to May 31, 2021, and the related assets and liabilities were recorded at their estimated fair values in the Company’s Consolidated Balance Sheet as of May 31, 2021. Certain assets and liabilities acquired in the business combination were attributed to the Company's IP Licensing segment. Supplemental Pro Forma Information The following unaudited pro forma financial information assumes the MobiTV Acquisition was completed as of January 1, 2020. 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 MobiTV Acquisition had taken place on January 1, 2020, 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 MobiTV had been included in the Company's Condensed Consolidated Statements of Operations as of January 1, 2020 (unaudited, in thousands): Years Ended December 31, 2021 2020 Net loss attributable to discontinued operations $ ( 71,169 ) $ 105,793 The unaudited supplemental pro forma information above includes the following pro forma adjustments: removal of certain elements of the historical MobiTV business that were not acquired, elimination of inter-company transactions between MobiTV and the Company, adjustments for transaction related costs and adjustments to reflect the impact of purchase accounting adjustments. The unaudited supplemental pro forma information above does not include any cost saving synergies from operating efficiencies. Vewd Software Holdings Limited On July 1, 2022, the Company completed the acquisition of Vewd Software Holdings Limited ("Vewd" and the acquisition, the "Vewd Acquisition"), a provider of over-the-top ("OTT") and hybrid TV solutions. The total consideration was approximately $ 102.9 million, consisting of approximately $ 52.9 million of cash and $ 50.0 million of 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 (in thousands): Estimated Useful 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 Current liabilities ( 6,566 ) Long-term deferred tax liabilities ( 8,393 ) Noncurrent operating lease liabilities ( 1,094 ) Other long-term liabilities ( 307 ) Total purchase price $ 102,913 The above purchase price allocation, including the purchase consideration, was based on valuations and assumptions, including potential changes to prepaid income taxes, current and non-current income taxes payable, deferred taxes, and other working capital adjustments. Vewd Results of Operations The results of operations and cash flows related to the Vewd Acquisition were included in the Company's Consolidated Financial Statements for periods subsequent to July 1, 2022, and the related assets and liabilities were recorded at their estimated fair values in the Company's Consolidated Balance Sheet as of July 1, 2022. For the year ended December 31, 2022, the acquired Vewd business contributed $ 2.5 million of revenue and $ 10.1 million of operating loss, respectively, to the Company's operating results. Transaction Costs In connection with the Vewd Acquisition, the Company incurred one-time expenses such as transaction related costs and severance and retention costs. For year ended December 31, 2022, transaction related costs including transaction bonuses, legal and consultant fees were $ 6.1 million and severance and retention costs were $ 2.1 million. 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 information 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): Nine Months Ended September 30, 2022 2021 Net loss attributable to discontinued operations $ ( 377,614 ) $ ( 62,976 ) 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, and elimination of inter-company transactions between Vewd and the Company. The unaudited supplemental pro forma information above does not include any cost saving synergies from operating efficiencies. Goodwill and Identified Intangible Assets During the three-months ended September 30, 2022, indicators of potential impairment for the Company's former Product reporting unit were identified such that management concluded it was more-likely-than-not that goodwill was impaired and a quantitative interim goodwill impairment assessment should be performed as of September 30, 2022. Indicators of potential impairment included a sustained decline in the Company’s stock price during the second half of the third quarter of 2022, reflective of rising interest rates and continued decline in macroeconomic conditions. The Company proceeded to perform a fair value analysis of the Company's former Product reporting unit using the market capitalization approach. Under this approach, management estimated the fair value of the Company's former Product reporting unit as of September 30, 2022 using quoted market prices of the common stock of Xperi Inc., which as of October 1, 2022 comprised the former Product segment of the Company, over its first ten trading days following the Separation, and a control premium representing the synergies a market participant would achieve upon obtaining control of Xperi Inc. As a result of the fair value analysis, the Company recognized a goodwill impairment charge of $ 354.0 million in the third quarter of 2022, which was allocated to the Company's former Product segment and it is included as part of net loss from discontinued operations, net of tax. The Company also assessed the recoverability of indefinite-lived intangible assets related to the Company's former Product reporting unit and concluded that no impairment existed as of September 30, 2022, as its estimated fair values exceeded their carrying amounts. No impairment indicators were identified with respect to other long-lived assets. Net Cash Flows of Discontinued Operations In connection with the Separation, the Company distributed $ 182.9 million of cash which is presented as part of financing activities in the Consolidated Statement of Cash Flows. The following table presents selected financial information related to cash flows from discontinued operations: 2022 (1) 2021 2020 Net cash from operating activities $ 2,308 $ 24,395 $ 29,207 Net cash from investing activities $ ( 61,097 ) $ ( 21,479 ) $ 26,527 (1) Represents nine months of Xperi Inc.'s operations in 2022, as compared to a full year of Xperi Inc.'s operations in 2021 and 2020. |
Business Combination
Business Combination | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Business Combination | NOTE 10 - BUSINESS COMBINATIONS TiVo On December 18, 2019, Xperi Corporation (“Xperi”) entered into an Agreement and Plan of Merger and Reorganization with TiVo Corporation (“TiVo”) to combine in an all-stock merger of equals transaction (the “Mergers”). Immediately following the consummation of the Mergers on June 1, 2020 (the “Merger Date”), Xperi Holding Corporation, under the name “XRAY TWOLF HoldCo Corporation,” became the parent company of both Xperi and TiVo. The common stock of Xperi and TiVo were de-registered after completion of the Mergers. On June 2, 2020, Xperi Holding Corporation’s common stock, par value $ 0.001 per share, commenced trading on the Nasdaq Global Select Market (“Nasdaq”) under the ticker symbol “XPER.” Effective at the open of business on October 3, 2022, the Company's shares of common stock, par value $ 0.001 per share, began trading on the Nasdaq Global Select Market under the new ticker symbol "ADEA". The Mergers created a leading IP licensing company. The Company’s IP business includes one of the industry’s largest and most successful IP portfolios licensed to a diverse base of customers. Certain assets and liabilities acquired in this business combination were attributed to the Company's former Product business segment. Purchase Price Allocation Based on an evaluation of the provisions of ASC 805, “Business Combinations,” the Company was determined to be the accounting acquirer in the Mergers. The Company applied the acquisition method of accounting that requires, among other things, that identifiable assets acquired and liabilities assumed generally be recognized on the balance sheet at fair value as of the acquisition date. In determining the fair value, the Company utilized various forms of the income, cost and market approaches depending on the asset or liability being fair valued. The estimation of fair value required significant judgment related to future net cash flows (including revenue, operating expenses, and working capital), discount rates reflecting the risk inherent in each cash flow stream, competitive trends, market comparables, and other factors. Inputs were generally determined by taking into account historical data (supplemented by current and anticipated market conditions) and growth rates. The following table sets forth the purchase price allocation reflective of measurement period adjustments (in thousands): Estimated Fair Value Cash and cash equivalents $ 117,424 Accounts receivable 105,778 Unbilled contracts receivable 69,058 Other current assets 21,923 Long-term unbilled contracts receivable 129 Property and equipment 41,307 Operating lease right-of-use assets 71,444 Identifiable intangible assets: Patents 10 457,400 Customer contracts and related relationships 4 - 9 358,200 Developed technology 5 34,800 Content database 9 6,200 Trademarks and tradenames N/A 21,400 Total identifiable intangible assets 878,000 Goodwill 461,245 Other long-term assets 43,559 Accounts payable ( 13,258 ) Accrued legal fees ( 5,619 ) Accrued liabilities ( 79,601 ) Current portion of deferred revenue ( 29,291 ) Current portion of long-term debt ( 734,609 ) Deferred revenue, less current portion ( 24,319 ) Long-term deferred tax liabilities ( 27,528 ) Long-term debt ( 48 ) Noncurrent operating lease liabilities ( 59,291 ) Other long-term liabilities ( 7,969 ) Total purchase price $ 828,334 Transaction and Severance Costs In connection with the Mergers, the Company incurred significant expenses such as transaction-related costs (e.g. bankers fees, legal fees, consultant fees, etc.), lease impairment charges due to facilities consolidation, severance and retention costs (including stock-based compensation expense resulting from the contractually-required acceleration of equity instruments for departing executives). Total transaction related costs and lease impairment charges were $ 29.4 million and $ 2.4 million, respectively, in 2020. No significant transaction related costs and lease impairment charges were incurred in 2021. In addition, post-merger severance and retention costs (including related stock-based compensation expense) amounted to $ 6.4 million and $ 14.3 million in 2021 and 2020, respectively. TiVo Results of Operations TiVo’s results of operations and cash flows were included in the Company’s consolidated financial statements for periods subsequent to June 1, 2020, and TiVo’s assets and liabilities were recorded at their estimated fair values in the Company’s Consolidated Balance Sheets as of June 1, 2020. For the year ended December 31, 2020, TiVo contributed $ 593.6 million of revenue and $ 263.8 million of operating income, respectively, to the operating results of the Company. Supplemental Pro Forma Information The following unaudited pro forma financial information assumes the companies were combined as of January 1, 2019. The unaudited pro forma financial information as presented below is for informational purposes only and it was based on estimates and assumptions that were 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 Mergers had taken place on January 1, 2019, 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 TiVo had been included in the Company's Consolidated Statements of Operations as of January 1, 2019 (unaudited, in thousands): Year Ended December 31, 2020 Revenue $ 1,142,603 Net income (loss) attributable to the Company $ 9,775 The unaudited supplemental pro forma information above includes the estimated impact of purchase accounting and other material, nonrecurring adjustments directly attributable to the Mergers such as: estimated decrease to earnings due to revenue adjustments resulting from purchase accounting, estimated impact to earnings to adjust for transaction and other related costs including facilities impairment charges, estimated impact to earnings to adjust for severance and retention costs including related stock-based compensation expense, estimated impact to earnings to reflect pay-off of historical debt and issuance of new debt financing and estimated decrease to earnings due to pro forma adjustments for income taxes. The unaudited supplemental pro forma information above does not include any cost saving synergies from operating efficiencies. |
Goodwill and Identified Intangi
Goodwill and Identified Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Identified Intangible Assets | NOTE 11 – GOODWILL AND IDENTIFIED INTANGIBLE ASSETS Goodwill The changes to the carrying value of goodwill from January 1, 2021 through December 31, 2022 are reflected below (in thousands): Amounts Balance at December 31, 2020 and 2021 $ 314,576 Goodwill adjustment related to Mergers in prior periods ( 916 ) Balance at December 31, 2022 $ 313,660 Goodwill at each reporting unit is evaluated for potential impairment annually, as of the beginning of the fourth quarter, and whenever events or changes in circumstances indicate 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. As part of its annual goodwill impairment test, the Company elected to proceed with a qualitative goodwill impairment test and no indicators of potential impairment were identified. Additionally, based on the qualitative evaluation, which included consideration of the carrying value of the IP Licensing reporting unit and market capitalization of the Company, no goodwill impairment triggers were identified as of December 31, 2022. No impairment charges were recognized for the years ended December 31, 2021 and 2020. Identified Intangible Assets Identified intangible assets consisted of the following (in thousands): December 31, 2022 December 31, 2021 Average Gross Accumulated Net Gross Accumulated Net Finite-lived intangible assets Acquired patents / core technology 3 - 10 $ 645,928 $ ( 270,275 ) $ 375,653 $ 667,613 $ ( 219,292 ) $ 448,321 Existing technology / content database 5 - 10 38,681 ( 36,614 ) 2,067 38,681 ( 33,514 ) 5,167 Customer contracts and related relationships 3 - 9 155,900 ( 101,252 ) 54,648 155,900 ( 62,677 ) 93,223 Trademarks/trade name 4 - 10 1,300 ( 1,192 ) 108 1,300 ( 1,029 ) 271 Total intangible assets $ 841,809 $ ( 409,333 ) $ 432,476 $ 863,494 $ ( 316,512 ) $ 546,982 As of December 31, 2022, the estimated future amortization expense of total finite-lived intangible assets was as follows (in thousands): Amounts 2023 $ 93,540 2024 68,809 2025 52,731 2026 52,597 2027 52,246 Thereafter 112,553 $ 432,476 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | NOTE 12 – DEBT The outstanding amounts of debt were as follows (in thousands): December 31, 2022 2021 Refinanced Term B Loans $ 749,250 $ 789,750 Unamortized debt discount and issuance costs ( 19,857 ) ( 24,263 ) 729,393 765,487 Less: current portion, net of debt discount and issuance costs ( 109,813 ) ( 36,095 ) Total long-term debt, net of current portion $ 619,580 $ 729,392 Refinanced Term B Loans On June 8, 2021, the Company amended that certain Credit Agreement dated June 1, 2020 by and among the Company, the lenders party thereto and Bank of America, N.A., as administrative agent and collateral agent (the “2020 Credit Agreement”). The 2020 Credit Agreement initially provided for a five-year senior secured term B loan facility in an aggregate principal amount of $ 1,050 million (the “2020 Term B Loan Facility”). In connection with the amendment (the “Amendment”), the Company made a voluntary prepayment of $ 50.6 million of the term loan outstanding under the 2020 Credit Agreement using cash on hand. The Amendment provided for, among other things, (i) a new tranche of term loans (the “Refinanced Term B Loans”) in an aggregate principal amount of $ 810.0 million, (ii) a reduction of the interest rate margin applicable to such loans to (x) in the case of base rate loans, 2.50 % per annum and (y) in the case of Eurodollar loans, LIBOR plus a margin of 3.50 % per annum, (iii) a prepayment premium of 1.00 % in connection with any repricing transaction with respect to the Refinanced Term B Loans within six months of the closing date of the Amendment, (iv) an extension of the maturity to June 8, 2028 , and (v) certain additional amendments, including amendments to provide the Company with additional flexibility under the covenant governing restricted payments. The Company commenced repaying quarterly installments under the Refinanced Term B Loans in the third quarter of 2021. The obligations under the 2020 Credit Agreement, inclusive of any changes by the Amendment, continue to be guaranteed by the Company’s wholly-owned material domestic subsidiaries (collectively, the “Guarantors”) and continue to be secured by a lien on substantially all of the assets of the Company and the Guarantors. The 2020 Credit Agreement, as amended, contains customary events of default, upon the occurrence of which, after any applicable cure period, the lenders will have the ability to accelerate all outstanding loans thereunder. The 2020 Credit Agreement, as amended, also contains customary representations and warranties and affirmative and negative covenants that, among other things and subject to certain exceptions, restrict the ability of the Company and its subsidiaries to create or incur certain liens, incur or guarantee additional indebtedness, merge or consolidate with other companies, transfer or sell assets and make restricted payments. The Separation did not require the Company to obtain any waivers under the 2020 Credit Agreement, and the Company completed the Separation in compliance with all of the covenants contained in the 2020 Credit Agreement. The 2020 Credit Agreement, as amended, requires the Company to maintain a total net leverage ratio of no greater than 3.00x in order access an annual basket from which to make restricted payments (such as dividend payments and share repurchases). The Company was in compliance with all requirements as of December 31, 2022. The 2020 Credit Agreement, as amended, also requires the Company to make additional cash payments on an annual basis beginning in April 2023 based on certain leverage ratios and excess cash flow generated for the immediately preceding fiscal year. The additional cash payments are applied to the remaining principal balance due at final maturity. Accordingly, as of December 31, 2022, the Company reclassified $ 73.5 million to current portion of long-term debt for the payment to be made under the excess cash flow provisions. Certain lenders of the 2020 Term B Loan Facility participated in the Amendment and the changes in terms were not considered substantial. Accordingly, the Company accounted for the refinancing event for these lenders as a debt modification under ASC 470-50, “Debt — Modifications and Extinguishments.” Under its policy, the Company elected to continue to defer the unamortized debt discount and issuance costs for these continuing lenders related to the partial pay-down of the debt. Certain lenders of the 2020 Term B Loan Facility did not participate in the Amendment. Accordingly, the Company accounted for the refinancing event for these lenders as a debt extinguishment. As a result, the Company recorded an $ 8.0 million loss on debt extinguishment in the second quarter of 2021, related to the write-off of unamortized debt discount and issuance costs for the portions of the 2020 Term B Loan Facility considered to be extinguished. In connection with its entry into the Amendment, the Company incurred $ 6.8 million in debt financing costs, of which $ 4.2 million were capitalized in accordance with ASC 835-30 “Debt Issuance Costs” and, together with a portion of the unamortized debt discount and issuance costs from the 2020 Term B Loan Facility, are being amortized into interest expense over the term of the Amendment. Under ASC 470-50, the remaining $ 2.6 million, primarily related to third-party fees, were recorded as selling, general and administrative expense in the second quarter of 2021. After the Separation, the Company remains the obligor under the Refinanced B Term Loans. Interest Expense and Expected Principal Payments At December 31, 2022, $ 729.4 million in total debt was outstanding. There were also $ 19.9 million of unamortized debt discount and issuance costs recorded as a reduction from the c arrying amount of the debt. The interest rate on the Refinanced Term B Loans as of December 31, 2022, including the amortization of debt discount and issuance costs, was 7.6 % and interest is payable monthly. Interest expense was $ 45.3 million, $ 39.0 million and $ 37.9 million for the years ended December 31, 2022, 2021 and 2020, respectively. Amortized debt discount and issuance costs, which were included in interest expense, amounted to $ 4.4 million, $ 6.4 million and $ 6.3 million for the years ended December 31, 2022, 2021 and 2020, respectively. As of December 31, 2022, future minimum principal payments for long-term debt, excluding any additional principal payment required by the excess cash flow provision, are summarized as follows (in thousands): Amounts 2023 $ 40,500 2024 40,500 2025 40,500 2026 40,500 2027 40,500 Thereafter 546,750 Total $ 749,250 |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | NOTE 13 – NET INCOME (LOSS) PER SHARE The following table sets forth the computation of basic and diluted shares (in thousands): Years Ended December 31, 2022 2021 2020 Denominator: Weighted average common shares outstanding 104,336 104,735 82,840 Total common shares-basic 104,336 104,735 82,840 Effect of dilutive securities: Options — 17 1 Restricted stock awards 3,244 2,513 1,015 Total common shares-diluted 107,580 107,265 83,856 Basic net income (loss) per share is computed using the weighted average number of shares of common stock outstanding during the period, excluding any unvested restricted stock awards that are subject to repurchase. Diluted net income (loss) per share is computed using the treasury stock method to calculate the weighted average number of shares of common stock and, if dilutive, potential common shares outstanding during the period. Potentially dilutive common shares include unvested restricted stock awards and incremental common shares issuable upon the exercise of stock options, less shares repurchased from assumed proceeds. The assumed proceeds calculation includes actual proceeds to be received from the employee upon exercise and the average unrecognized stock compensation cost during the period. For the years ended December 31, 2022, 2021 and 2020, 1.8 million, 2.8 million and 2.1 million shares, respectively, subject to stock options and restricted stock awards were excluded from the computation of diluted net income per share as they were anti-dilutive. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stockholders' Equity | NOTE 14 – STOCKHOLDERS’ EQUITY Equity Incentive Plans The 2020 EIP On June 1, 2020, the Company adopted the 2020 Equity Incentive Plan (the “2020 EIP”). Under the 2020 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, restricted stock units, stock appreciation rights, dividend equivalents and performance awards (or any combination thereof). A total of 16.8 million shares have been reserved for issuance under the 2020 EIP provided that each share issued pursuant to “full value” awards (i.e., stock awards, restricted stock awards, restricted stock units, performance awards and dividend equivalents) are counted against shares available for issuance under the 2020 EIP on a 1.5 to 1 ratio. At the 2022 Annual Stockholders Meeting on April 29, 2022, the Company's shareholders approved an amendment to the 2020 EIP and increased by 8.8 million the number of shares reserved for issuance. The 2020 EIP provides for option grants designed as either incentive stock options or nonstatutory options. Options generally are granted with an exercise price not less than the value of the common stock on the grant date and have a term of ten years from the date of grant and vest over a four-year period. The vesting criteria for restricted stock awards and restricted stock units is generally the passage of time or meeting certain performance-based objectives, and continued employment through the vesting period, which is generally four years for time-based awards. Assumed Plans On June 1, 2020, the Company assumed all then-outstanding stock options, awards, and shares available and reserved for issuance under all legacy Equity Incentive Plans of TiVo (collectively, the “Assumed Plans”). Stock options assumed from the Assumed Plans generally have vesting periods of four years and a contractual term of seven years . Awards of restricted stock and restricted stock units assumed from the Assumed Plans are generally subject to a four year vesting period. The number of shares subject to stock options and restricted stock unit awards outstanding under these plans are included in the tables below. Shares reserved under the Assumed Plans will be available for future grants. As of December 31, 2022, there were 5.4 million shares reserved for future grants under both the 2020 EIP and the Assumed Plans. A summary of the stock option activity is presented below (in thousands, except per share amounts): Options Outstanding Number of Weighted Weighted Aggregate Balance at December 31, 2019 605 $ 26.68 Options granted — $ — Options assumed 175 $ 50.96 Options exercised ( 7 ) $ 13.47 Options canceled / forfeited / expired ( 136 ) $ 44.59 Balance at December 31, 2020 637 $ 29.59 Options granted — $ — Options exercised ( 39 ) $ 20.03 Options canceled / forfeited / expired ( 151 ) $ 44.99 Balance at December 31, 2021 447 $ 25.22 Options granted — $ — Options exercised ( 10 ) $ 13.96 Options canceled / forfeited / expired ( 73 ) $ 37.24 Balance at December 31, 2022 364 1.88 6.59 Vested and expected to vest at December 31, 2022 364 1.88 6.59 Exercisable at December 31, 2022 364 1.88 6.59 The following table summarizes information about stock options outstanding and exercisable under all of the Company’s plans at December 31, 2022: Options Outstanding Options Exercisable Range of Exercise Number Weighted Weighted Number Weighted $ 8.99 - $ 28.79 364 1.88 $ 13.06 364 $ 13.06 Restricted Stock Awards Information with respect to outstanding restricted stock awards (including both time-based vesting and performance-based vesting) as of December 31, 2022 is as follows (in thousands, except per share amounts): Restricted Stock Awards Number of Shares Number of Shares Total Number Weighted Average Balance at December 31, 2019 2,371 554 2,925 $ 25.99 Awards granted 3,331 994 4,325 $ 14.64 Awards assumed 2,185 253 2,438 $ 13.99 Awards converted 11 ( 11 ) — $ 22.45 Awards vested / earned ( 1,676 ) ( 487 ) ( 2,163 ) $ 21.12 Awards canceled / forfeited ( 560 ) ( 242 ) ( 802 ) $ 19.96 Balance at December 31, 2020 5,662 1,061 6,723 $ 16.63 Awards granted 3,959 650 4,609 $ 22.77 Awards vested / earned ( 1,916 ) ( 87 ) ( 2,003 ) $ 17.79 Awards canceled / forfeited ( 890 ) ( 99 ) ( 989 ) $ 17.75 Balance at December 31, 2021 6,815 1,525 8,340 $ 19.61 Awards granted 5,417 514 5,931 $ 12.56 Awards vested / earned ( 2,281 ) ( 340 ) ( 2,621 ) $ 18.59 Awards canceled / forfeited ( 903 ) ( 174 ) ( 1,077 ) $ 18.29 Balance at December 31, 2022 9,048 1,525 10,573 $ 10.48 Performance Awards Performance awards may be granted to employees or consultants based upon, among other things, the contributions, responsibilities and other compensation of the particular employee or consultant. The value and the vesting of such performance awards 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 percent of the grant. For performance awards subject to a market vesting condition (“market-based PSUs”), 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. Employee Stock Purchase Plans On June 1, 2020, the Company adopted the 2020 Employee Stock Purchase Plan (the “2020 ESPP”). The 2020 ESPP is implemented through consecutive overlapping 24-month offering periods, each of which is comprised of four six-month purchase periods. The first offering period commenced on September 1, 2020 and ended on August 31, 2022. Due to the Separation, the next offering period under the 2020 ESPP plan commenced on December 1, 2022 and will end on November 30, 2024. Each subsequent offering period under the 2020 ESPP will be twenty-four ( 24 ) months long and will commence on each December 1 with four six-month purchase periods. Participants may contribute up to 100 % of their base earnings and commissions through payroll deductions, and 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 buy the Company’s common stock under the 2020 ESPP may not accrue at a rate in excess of $ 25,000 of the fair market value of such shares per calendar year for each calendar year of an offering period. 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 24-month offering period, then that offering period will automatically terminate and a new 24-month offering period will begin on the next business day. All participants in the terminated offering will be transferred to the new offering period. At the 2022 Annual Stockholders Meeting on April 29, 2022, the Company's shareholders approved an amendment to the 2020 ESPP and increased by 6.0 million the number of shares reserved for issuance. As of December 31, 2022, there were 5.5 million shares reserved for grant under the Company’s 2020 ESPP. Modification of Equity Awards In connection with the Separation and under the provisions of the existing plans described above, the Company's outstanding stock options and equity awards were converted to units denominated in the equity of the Company, Xperi Inc., or both. The number of units and exercise prices of outstanding stock options and equity awards were converted based on the conversion ratios established in the Employee Matters Agreement that the Company entered into in connection with the Separation. The intent of the conversion ratios was to preserve the value of the awards immediately before and after the Separation. Upon the Separation, employees holding stock options and equity awards denominated in the Company's pre-Separation stock received a number of otherwise-similar stock options and awards in post-Separation Company's stock and/or Xperi Inc.'s stock based on the conversion ratios outlined for each group of employees. For purposes of the vesting of these equity awards, continued employment or service with the Company or with Xperi Inc. is treated as continued employment for purposes of both the Company's and Xperi Inc.'s equity awards and the vesting terms of each converted grant remained unchanged. There were no changes to the plan terms described above with the exception that the price on the grant date, or October 1, 2022 was adjusted to exclude the value of Xperi Inc. based on the conversion ratios applied to other equity awards. Refer to "Note 15 - Stock Based Compensation Expense", for further discussion on the impact of this modification to the Company's Consolidated Statements of Operations. Dividends Stockholders of the Company’s common stock are entitled to receive dividends when declared by the Company’s Board of Directors. For the years ended December 31, 2022, 2021 and 2020, dividends declared in the aggregate for each year were $ 0.20 , $ 0.20 and $ 0.50 , respectively per common share. The capacity to pay dividends in the future depends on many factors, including the Company's financial condition, results of operations, capital requirements, capital structure, industry practice and other business conditions that the Board of Directors considers relevant. Stock Repurchase Programs On June 12, 2020 the Board of Directors (the “Board”) of the Company authorized a new stock repurchase program providing for the repurchase of up to $ 150.0 million of the Company's Common Stock dependent on market conditions, share prices and other factors. On April 22, 2021, the Board authorized an additional $ 100.0 million of purchases under the existing stock repurchase plan. As of December 31, 2022, the Company has repurchased a total of approximately 10.0 million shares of common stock, since inception of the plan, at an average price of $ 17.24 per share for a total cost of $ 172.2 million. As of December 31, 2021, the Company had repurchased a total of approximately 9.0 million shares of common stock, since inception of the plan, at an average price of $ 17.29 per share for a total cost of $ 155.0 million. The shares repurchased are recorded as treasury stock and are accounted for under the cost method. No expiration date has been specified for this plan. As of December 31, 2022, the total remaining amount available for repurchase under this plan was $ 77.8 million. The Company may execute authorized repurchases from time to time under the plan. In connection with the Mergers, all shares repurchased by the Company as of June 1, 2020 and recorded as treasury stock were canceled and retired. The Company accounts for stock repurchases using the cost method and records retirement of treasury stock as a reduction of the cumulative treasury stock paid-in capital balance. Once the cumulative balance is reduced to zero, any remaining difference resulting from the retirement of treasury stock is recorded as a reduction of retained earnings. The Company issues restricted stock awards as part of the equity incentive plans described above. For the majority of restricted awards, shares are withheld to satisfy required withholding taxes at the vesting date. Shares withheld to satisfy required withholding taxes in connection with the vesting of restricted awards are treated as common stock repurchases in the condensed consolidated financial statements because they reduce the number of shares that would have been issued on vesting. However, these withheld shares are not included in common stock repurchases under the Company's authorized share repurchase plan. As of December 31, 2022, 2021 a nd 2020, the Company withheld 1.0 million, 0.8 million and 0.7 million shares of common stock to satisfy $ 15.9 million, $ 15.9 million and $ 10.5 million of required withholding taxes, respectively. |
Stock-Based Compensation Expens
Stock-Based Compensation Expense | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation Expense | NOTE 15 – STOCK-BASED COMPENSATION EXPENSE The effect of recording stock-based compensation ("SBC") expense for continuing operations for the years ended December 31, 2022, 2021 and 2020 is as follows (in thousands): Years Ended December 31, 2022 2021 2020 Research and development $ 1,644 $ 1,895 $ 2,189 Selling, general and administrative 21,201 23,733 17,954 Total stock-based compensation expense $ 22,845 $ 25,628 $ 20,143 In connection with termination of employment with a former executive on March 1, 2022, the Company entered into a Separation Agreement and Release with the executive, dated February 18, 2022 (the “Separation Agreement”). Pursuant to the Separation Agreement, the Company approved, among other severance benefits, accelerated vesting of 372,244 of outstanding performance and time-based restricted stock awards. As a result of this modification, the Company recorded incremental SBC expense of approximately $ 2.2 million during the first quarter of 2022. As a result of the Separation and the conversion of the outstanding stock options and equity awards described in "Note 14 - Stockholders' Equity" , the Company compared the fair value of the outstanding stock options immediately before and after the Separation and a total incremental cost of $ 0.4 million was recognized as part of stock-based compensation expense. The total fair value of restricted stock awards vested during the years ended December 31, 2022, 2021 and 2020 was $ 48.7 million, $ 35.6 million and $ 45.7 million, respectively. The total intrinsic value of options exercised during the years ended December 31, 2022, 2021 and 2020 was $ 0.02 million, $ 0.1 million and $ 0.1 million, respectively. The intrinsic value is calculated as the difference between the market value on the date of exercise and the exercise price of the shares. As of December 31, 2022, there was no unrecognized stock-based compensation balance after estimated forfeitures related to unvested stock options, and there was $ 25.5 million related to restricted stock awards, including performance-based awards, to be recognized over an estimated weighted average period of 2.5 years. The Company uses the Black-Scholes option pricing model to determine the estimated fair value of options and ESPP shares. The fair value of each option grant is determined on the date of grant and the expense is recorded on a straight-line basis over the offering period of two years. The assumptions used in the model include expected life, volatility, risk-free interest rate, and dividend yield. The Company’s 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 . Volatility – Volatility is calculated using the historical volatility of the Company’s common stock for a term consistent with the expected life. Historical volatility of the Company’s common stock is also utilized for the ESPP. Risk-free interest rate – The risk-free interest rate assumption is based on the U.S. Treasury rate for issues with remaining terms similar to the expected life of the options. Dividend yield – Expected dividend yield is calculated based on cash dividends declared by the Board for the previous four quarters and dividing that result by the average closing price of the Company’s common stock for the quarter. Cash dividends are not paid on options, restricted stock awards or unvested restricted stock awards. In addition, the Company estimates forfeiture rates. Forfeitures are estimated at the time of grant and revised in subsequent periods if actual forfeitures differ from those estimates. Historical data is used to estimate pre-vesting option forfeitures and record stock-based compensation expense only for those awards that are expected to vest. There were no stock options granted during the years ended December 31, 2022, 2021 and 2020. The following assumptions were used to value the ESPP shares: Years Ended December 31, 2022 2021 2020 Expected life (years) 2.0 2.0 2.0 Risk-free interest rate 1.3 - 4.3 % 0.1 - 0.2 % 0.1 - 1.4 % Dividend yield 1.1 - 2.3 % 0.9 - 1.2 % 1.4 - 4.0 % Expected volatility 48.5 - 69.0 % 52.0 - 52.0 % 45.8 - 57.5 % For the years ended December 31, 2022, 2021 and 2020, an aggregate of 1,301,000 , 1,238,000 and 355,000 common shares, respectively, were purchased pursuant to the ESPP. The Company uses a Monte Carlo simulation to determine the grant date fair value of performance stock awards subject to market conditions, or market-based PSUs. The following assumptions were used to value the performance stock awards subject to market conditions granted in the years ended December 31, 2022, 2021 and 2020: Years Ended December 31, 2022 2021 2020 Expected life (in years) 3.0 3.0 3.0 Risk-free interest rate 2.8 % 0.3 % 0.2 % Dividend yield 1.2 % 1.0 % 1.4 % Expected volatility 37.5 % - 40.9 % 47.9 % 51.3 % |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 16 – INCOME TAXES The components of total income (loss) before taxes from continuing operations are as follows (in thousands): Years Ended December 31, 2022 2021 2020 U.S. $ 110,796 $ 71,485 $ 222,930 Foreign ( 1,024 ) 1,326 1,564 Income before taxes from continuing operations $ 109,772 $ 72,811 $ 224,494 The provision for (benefit from) income taxes consisted of the following (in thousands): Years Ended December 31, 2022 2021 2020 Current: U.S. federal $ ( 5,156 ) $ ( 5,578 ) $ ( 20,157 ) Foreign 9,937 14,045 24,107 State and local 8,636 4,201 8,083 Total current 13,417 12,668 12,033 Deferred: U.S. federal ( 36,363 ) ( 576 ) ( 25,322 ) Foreign 4,730 ( 4,935 ) — State and local ( 10,404 ) ( 2,329 ) ( 2,023 ) Total deferred ( 42,037 ) ( 7,840 ) ( 27,345 ) Provision for (benefit from) income taxes $ ( 28,620 ) $ 4,828 $ ( 15,312 ) 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. Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands): December 31, 2022 2021 Deferred tax assets Net operating losses $ 63,702 $ 74,463 Research tax credits 78,340 80,468 Foreign tax credits 29,077 69,637 Expenses not currently deductible 18,823 14,434 Fixed and intangible assets — 207 Deferred revenue 8,428 6,385 Capitalized research expenses 38,806 34,963 Lease liability 1,598 1,715 Gross deferred tax assets 238,774 282,272 Valuation allowance ( 120,508 ) ( 178,731 ) Net deferred tax assets 118,266 103,541 Deferred tax liabilities Revenue recognition ( 4,288 ) ( 1,445 ) Operating leases ( 1,388 ) ( 1,508 ) Acquired intangible assets ( 74,075 ) ( 101,679 ) Other ( 3,237 ) ( 4,076 ) Net deferred tax liabilities $ 35,278 $ ( 5,167 ) At December 31, 2022 and 2021, the Company had a valuation allowance of $ 120.5 million and $ 178.7 million, respectively, related to federal, state, and foreign deferred tax assets that the Company believes will not be realizable on a more-likely-than-not basis. The $ 58.2 million decrease from the prior year is primarily comprised of federal and state valuation allowance releases. 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 an 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 the positive evidence outweighed the negative evidence primarily due to cumulative income from its IP Licensing business on a continuing operations basis and the expectation of sustained profitability in future periods and concluded that it was more-likely-than-not that it would realize its federal and certain state deferred tax assets. As a result, during the fourth quarter of 2022, the Company released the valuation allowance on all the federal deferred tax assets and state deferred tax assets, except for California and certain other states where tax attributes can only be utilized against the income of specific legal entities. The release of the valuation allowance resulted in $ 86.1 million of tax benefit. The Company will maintain a full valuation allowance on its foreign deferred tax asset as the expectation of future taxable income is uncertain. As of December 31, 2022, the Company had federal net operating loss carryforwards of approximately $ 2.9 million and state net operating loss carryforwards of approximately $ 842.0 million. The state net operating loss carryforwards, if not utilized, will begin to expire on various dates beginning in 2023 and will continue to expire through 2041 . The Company has research tax credit carryforwards of approximately $ 78.4 million for federal purposes. The federal research tax credit will start to expire in 2023 and will continue to expire through 2041 . The Company also has research tax credit carryforwards of approximately $ 76.1 million for state purposes, which do not expire. The Company has $ 94.2 million of foreign tax credit carryforwards which will begin to expire in 2023 and will continue to expire through 2031 . Under the provisions of the Internal Revenue Code, substantial ownership changes may limit the amount of net operating loss and tax credit carryforwards that can be utilized annually in the future to offset taxable income. A reconciliation of the statutory U.S. federal income tax rate to the Company’s effective tax rate is as follows: Years Ended December 31, 2022 2021 2020 U.S. federal statutory rate $ 23,052 $ 15,291 $ 47,144 State, net of federal benefit ( 2,712 ) ( 617 ) 2,094 Stock-based compensation expense 235 ( 129 ) 1,222 Executive compensation limitation 1,236 2,430 235 Research tax credit ( 2,705 ) 353 694 Foreign withholding tax 5,969 1,575 1,250 Transaction costs 1,308 145 1,996 Foreign tax rate differential 4,960 ( 3,249 ) ( 288 ) Foreign tax credit 10,525 10,714 ( 2,603 ) Change in valuation allowance ( 78,699 ) ( 33,526 ) ( 63,346 ) U.S. tax reform 541 192 89 Unrecognized tax benefits ( 3,318 ) 4,548 6,424 Change in estimates ( 3,478 ) ( 85 ) ( 1,217 ) Foreign exchange and interest 4,516 6,956 ( 7,438 ) Divestitures 15,396 — — Foreign derived intangible income ( 4,697 ) — — Others ( 749 ) 230 ( 1,568 ) Total $ ( 28,620 ) $ 4,828 $ ( 15,312 ) At December 31, 2022, the Company asserts that it will not permanently reinvest its foreign earnings outside the U.S. The Company anticipates that the cash from its foreign earnings may be used domestically to fund operations, settle a portion of the outstanding debt obligation, or used for other business needs. The accumulated undistributed earnings generated by its foreign subsidiaries was insignificant. Substantially all of these earnings will not be taxable upon repatriation to the United States since under the Tax Cuts and Jobs Act they will be treated as previously taxed income from the one-time transition tax, Global Intangible Low-Taxed Income or dividends-received deduction. During the fourth quarter of 2019, the Company filed a refund claim for foreign taxes previously withheld from licensees in South Korea based on court rulings in South Korea and other business factors. These previously withheld foreign taxes were claimed as a foreign tax credit in the U.S. As a result of the filed and planned refund claims, the Company recorded a total of $ 113.7 million and $ 118.1 million as a noncurrent income tax receivable at December 31, 2022 and 2021, respectively, $ 63.6 million and $ 63.1 million as a noncurrent income tax payable at December 31, 2022 and 2021, respectively, and $ 42.2 million and $ 39.9 million as a reduction in deferred tax assets at December 31, 2022 and 2021, respectively. Although the refund claim is subject to judicial review, the Company anticipates it will receive refunds in the amount recorded in the receivable. As of December 31, 2022, unrecognized tax benefits were $ 229.5 million, of which $ 194.3 million would affect the effective tax rate if recognized. As of December 31, 2021, unrecognized tax benefits were $ 230.1 million, of which $ 97.3 million would affect the effective tax rate if recognized. The Company believes that its unrecognized tax benefits as of December 31, 2022 will decrease by approximately $ 8.5 million within the next twelve months due to expiring statutes of limitation. The reconciliation of the Company’s unrecognized tax benefits for the years ended December 31, 2022, 2021 and 2020 is as follows (in thousands): Years Ended December 31, 2022 2021 2020 Total unrecognized tax benefits at January 1 $ 230,076 $ 225,279 $ 100,037 Increases due to the Mergers — — 102,582 Increases for tax positions related to the current year 3,872 6,876 21,199 Increases for tax positions related to prior years 229 5,195 3,245 Decreases for tax positions related to prior years ( 4,685 ) ( 7,274 ) ( 1,784 ) Total unrecognized tax benefits at December 31 $ 229,492 $ 230,076 $ 225,279 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, 2022, the Company did no t recognize any significant interest or penalties. For the years ended December 31, 2021, the Company recognized $ 0.2 million of interest and penalties, and for the year ended 2020, an insignificant amount of interest and penalties related to unrecognized tax benefits. Accrued interest and penalties were $ 2.8 million and $ 2.8 million as of December 31, 2022 and 2021, respectively. At December 31, 2022, the Company’s 2018 through 2022 tax years are generally open and subject to potential examination in one or more jurisdictions. In the U.S., any net operating losses or credits that were generated in prior years but not yet fully utilized in a year that is closed under the statute of limitations may also be subject to examination. Earlier tax years for the Company and its subsidiaries are also open in certain jurisdictions and are currently subject to examination. The Company has no significant income tax audits at this time. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 17 – COMMITMENTS AND CONTINGENCIES Purchase and Other Contractual 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 of December 31, 2022 are estimated to be $ 0.7 million, including $ 0.4 million due in 2023 and $ 0.3 million due in 2024. Guarantee Prior to the Separation, Adeia Media LLC, a subsidiary of the Company (“Adeia Media”), and a subsidiary of Xperi Inc (“Xperi Sub”) entered into an agreement (the “Specified Agreement”) with a third party pursuant to which Adeia Media guarantees the performance of Xperi Sub under the Specified Agreement, including its payment obligations to such third party. In connection with the Separation, Adeia Media and Xperi Sub entered into a separate cross business agreement (the “Cross Business Agreement”) effective as of October 1, 2022 under which Adeia Media agreed to make guarantee payments to Xperi Sub in amounts based on certain of its operating expenses and other minimum performance obligations under the Specified Agreement through 2031. Consequently, on October 1, 2022, the Company recognized a guarantee liability pursuant to ASC 460 “Guarantees” of $ 19.7 million which represents the fair value of Adeia Media’s projected payments of such operating expenses during the term of the Cross Business Agreement. Subsequent changes to the fair value of guarantee are recognized as part of the Company’s results of operations. As of December 31, 2022, the balance of the guarantee liability was $ 20.5 million, including a current portion of $ 2.4 million. The maximum potential amount of future payments subject to the guarantee is approximately $ 7.5 million per annum between 2023 and 2031 . 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 nature of the claim asserted; the relative merits of the claim; the financial ability of the party suing the indemnified party 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. To date, no such claims have been filed against the Company and no liability has been recorded in the Company’s financial statements. Contingencies At each reporting period, the Company evaluates whether or not a potential loss amount or a potential range of losses is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. Litigation related On June 23, 2017, Adeia Guides Inc. (formerly known as Rovi Guides, Inc.) and Adeia Media Solutions Inc. (formerly known as TiVo Solutions Inc.) (together, “Adeia Media”) filed a patent infringement complaint against Videotron Ltd. and Videotron G.P. (together, “Videotron”) in Toronto, Canada, alleging infringement of six patents (“Videotron 1”). On June 10, 2022, the Federal Court of Canada issued its decision in the case finding in favor of Videotron and its legacy illico platform. Specifically, the Court found invalid each of the asserted claims related to the four remaining patents involved in the case. In Canada, the prevailing party in patent litigation is entitled to reimbursement of certain of its costs and expenses. Accordingly, the Company accrued and paid $ 2.5 million for expense reimbursement during the year ended December 31, 2022. On September 12, 2022, Adeia Media filed a notice of appeal with the Federal Court of Appeal of Canada appealing the decision of the Federal Court of Canada. On January 30, 2023, Adeia Media filed its opening memorandum of fact and law. Videotron's memorandum of fact and law is due April 17, 2023. On January 19, 2018, Adeia Media filed a patent infringement complaint against Bell Canada (and four of its affiliates) (collectively, "Bell") in Toronto, Canada, alleging infringement of six patents (“Bell 1”). On February 2, 2018, Adeia Media filed a patent infringement complaint against Telus Corporation (and two of its affiliates) (collectively, "Telus") in Toronto, Canada, alleging infringement of the same six patents (“Telus 1”). Bell 1and Telus 1 were heard together for purposes of pre-trial and trial proceedings. On October 7, 2022, the Federal Court of Canada issued its confidential decision in the two cases finding in favor of Bell and Telus and their respective IPTV services, Bell Fibe TV and Telus Optik TV. Specifically, the Court found invalid each of the asserted claims of the four remaining patents involved in the case. In Canada, the prevailing party in patent litigation is entitled to reimbursement of certain of its costs and expenses. Accordingly, the Company accrued $ 2.6 million for expense reimbursement in the third quarter of 2022. On November 7, 2022, Adeia Media filed a notice of appeal with the Federal Court of Appeal of Canada appealing the decision of the Federal Court of Canada. The Company is unable to predict the final outcome of other lawsuits, including other patent infringement lawsuits in Canada, to which it is a party and therefore cannot determine the likelihood of loss nor estimate a range of possible losses. An adverse decision in any of these proceedings could significantly harm the Company's business and consolidated financial position, results of operations or cash flows. The Company and its subsidiaries are involved in litigation matters and claims in the normal course of business. In the past, the Company and its subsidiaries have litigated to enforce their respective patents and other intellectual property rights, to enforce the terms of license agreements, to protect trade secrets, to determine the validity and scope of the proprietary rights of others and to defend itself or its customers against claims of infringement or invalidity. The Company expects it or its subsidiaries will be involved in similar legal proceedings in the future, including proceedings regarding infringement of its patents, and proceedings to ensure proper and full payment of royalties by licensees under the terms of its license agreements. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | NOTE 18 – SEGMENT AND GEOGRAPHIC INFORMATION As a result of the Separation, the Company changed its operational structure in the fourth quarter of 2022, resulting in one reportable segment: Intellectual Property ("IP") Licensing. Reportable segments are identified based on the Company's organizational structure and information reviewed by the Company’s chief operating decision maker (“CODM”) to evaluate performance and allocate resources. The Company’s Chief Executive Officer is also the CODM as defined by the authoritative guidance on segment reporting. A portion of the Company’s revenue is derived from licensees headquartered outside of the U.S., and it is expected that this revenue will continue to account for a portion of total revenue in future periods. The table below lists the geographic revenue for the periods indicated (in thousands): Years Ended December 31, 2022 2021 2020 U.S. $ 366,527 84 % $ 299,253 76 % $ 365,819 71 % Japan 13,830 3 % 18,025 5 % 6,106 1 % South Korea 20,539 5 % 28,082 7 % 124,867 24 % Europe and Middle East 6,058 1 % 8,201 2 % 2,348 1 % Other 31,979 7 % 37,651 10 % 16,779 3 % $ 438,933 100 % $ 391,212 100 % $ 515,919 100 % For the years ended December 31, 2022, 2021 and 2020, three , two and two customers, respectively, each accounted for 10% or more of total revenue. The following table sets forth revenue generated from customers which comprise 10% or more of total revenue for the periods indicated: Years Ended December 31, 2022 2021 2020 Customer A 16 % 18 % * Customer B 13 % * * Customer C 11 % 14 % 46 % Customer D * * 14 % * denotes less than 10% of total revenue. At December 31, 2022, the Company had two customers representing 36 % and 29 % of aggregate accounts receivable, respectively. At December 31, 2021, the Company had three customers representing 28 %, 20 % and 10 % of aggregate accounts receivable, respectively. As of December 31, 2022 and 2021, property and equipment, net, was all located in the U.S. |
Benefit Plan
Benefit Plan | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Benefit Plan | NOTE 19 – 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, 2022, 2021 and 2020, the Company contributed approximately $ 1.3 million, $ 1.0 million and $ 1.1 million, respectively, to the 401(k) plan. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 20 – SUBSEQUENT EVENTS Declaration of a Cash Dividend On February 9, 2023 , the Board declared a cash dividend of $ 0.05 per share of common stock, payable on March 29, 2023 , for the stockholders of record at the close of business on March 15, 2023 . |
Quarterly Results Of Operations
Quarterly Results Of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results Of Operations (Unaudited) | NOTE 21 – QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) The following table sets forth the Company's unaudited quarterly Consolidated Statements of Operations for each of the quarters indicated and has been retrospectively adjusted to reflect Xperi Inc.'s historical financial results as discontinued operations. The information for each quarter has been derived from the Company's unaudited condensed consolidated financial statements and has been prepared on a basis consistent with these audited consolidated financial statements, and reflect, in the opinion of management, all adjustments of a normal, recurring nature that are necessary for a fair presentation of the financial information contained in those statements. The following quarterly financial data should be read in conjunction with our consolidated financial statements (in thousands, except per share amounts): Three Months Ended Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Revenue $ 103,290 $ 89,296 $ 107,815 $ 138,532 $ 89,705 $ 101,647 $ 101,846 $ 98,014 Total operating expenses 70,047 73,654 73,094 69,078 72,738 64,160 70,385 64,901 Operating income from continuing operations 33,243 15,642 34,721 69,454 16,967 37,487 31,461 33,113 Income from continuing operations before income taxes 18,640 4,058 25,712 61,362 7,354 29,249 13,564 22,644 Provision for (benefit from) income taxes ( 55,090 ) 10,401 10,552 5,517 ( 11,314 ) 8,676 ( 387 ) 7,853 Net income from continuing operations 73,730 ( 6,343 ) 15,160 55,845 18,668 20,573 13,951 14,791 Net loss attributable to discontinued operations, net of tax — ( 382,585 ) ( 20,785 ) ( 30,902 ) ( 33,227 ) ( 65,640 ) ( 15,069 ) ( 9,504 ) Net income (loss) attributable to the Company $ 73,730 $ ( 388,928 ) $ ( 5,625 ) $ 24,943 $ ( 14,559 ) $ ( 45,067 ) $ ( 1,118 ) $ 5,287 Income (loss) per share: Basic Continuing operations $ 0.70 $ ( 0.06 ) $ 0.15 $ 0.54 $ 0.18 $ 0.20 $ 0.13 $ 0.14 Discontinued operations — ( 3.66 ) ( 0.20 ) ( 0.30 ) ( 0.32 ) ( 0.63 ) ( 0.14 ) ( 0.09 ) Net income (loss) $ 0.70 $ ( 3.72 ) $ ( 0.05 ) $ 0.24 $ ( 0.14 ) $ ( 0.43 ) $ ( 0.01 ) $ 0.05 Diluted Continuing operations $ 0.65 $ ( 0.06 ) $ 0.14 $ 0.53 $ 0.18 $ 0.19 $ 0.13 $ 0.14 Discontinued operations — ( 3.61 ) ( 0.20 ) ( 0.29 ) ( 0.31 ) ( 0.61 ) ( 0.14 ) ( 0.09 ) Net income (loss) $ 0.65 $ ( 3.67 ) $ ( 0.06 ) $ 0.24 $ ( 0.13 ) $ ( 0.42 ) $ ( 0.01 ) $ 0.05 Weighted average number of shares-basic 105,135 104,510 104,001 103,679 104,249 104,849 104,906 104,940 Weighted average number of shares-diluted 113,392 105,850 105,160 105,332 105,915 106,910 107,267 107,776 |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II Valuation and Qualifying Accounts | Schedule II. Valuation and Qualifying Accounts for the Years Ended December 31, 2022, 2021 and 2020 (in thousands): Balance at Charged Charged Balance at End of Deferred income tax asset: Valuation allowance 2020 $ 37,243 $ ( 63,346 ) $ 257,397 $ 231,294 2021 $ 231,294 $ ( 52,563 ) $ — $ 178,731 2022 $ 178,731 $ ( 58,223 ) $ — $ 120,508 Accounts receivable and unbilled contract receivables Allowance for credit losses 2020 $ 2,056 $ 975 $ — $ 3,031 2021 $ 3,031 $ ( 1,923 ) $ — $ 1,108 2022 $ 1,108 $ ( 395 ) $ — $ 713 |
Summary Of Significant Accoun_2
Summary Of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Reclassification | Reclassification Certain reclassifications have been made to prior period balances in order to conform to the current period’s presentation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The accounting estimates and assumptions that require management’s most significant, challenging, and subjective judgment include identifying the performance obligations in the contract, estimating variable consideration, estimating quarterly royalties prior to receiving the royalty reports from the licensee, determining standalone selling price, and allocating consideration in a contract 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, among others. Actual results experienced by the Company may differ from management’s estimates. These estimates may change, as new events occur and additional information is obtained, and are recognized in the consolidated financial statements as soon as they become known. |
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 be entitled to 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 4 – Revenue” for a detailed discussion on revenue and revenue recognition. |
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. Cash and cash equivalents are maintained with various financial institutions. |
Short-term Investments | Short-term Investments The Company has historically held investments in debt securities which include corporate bonds and notes, treasury and agency notes and bills, commercial paper, certificates of deposit, and in equity securities consisting of money market funds. The Company classifies all investments as current as the securities are available for use, if needed, for current operations. Marketable Debt Securities The Company classifies its debt securities as available-for-sale (“AFS”), which are accounted for at fair value. For AFS debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more-likely-than-not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through income. For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in accumulated other comprehensive income or loss on the Consolidated Balance Sheets. Marketable Equity Securities Marketable equity securities are measured at fair value with unrealized gains and losses recognized in other income and expense, net, on the Consolidated Statements of Operations. |
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 and 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 income and expense, 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 instruments. Long-term debt is carried at amortized cost and measured at fair value on a quarterly basis for disclosure purposes. See “Note 7 – Fair Value” for further information . |
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 equivalents, short-term investments and accounts receivable. The Company follows a corporate investment policy which sets credit, maturity and concentration limits and regularly monitors the composition, market risk and maturities of these investments. The Company believes that any concentration of credit risk in its accounts receivable is substantially mitigated by the Company’s 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. See "Note 18 - Segment and Geographic Information " for further discussion on concentration of credit and other risks. |
Allowance for Credit Losses | Allowance for Credit Losses 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. See “Note 4 – Revenue ” for a further discussion of the allowance for credit losses. |
Business Combinations | Business Combinations The Company accounts for business combinations using the acquisition method of accounting in accordance with ASC 805, “Business Combinations.” 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 discount rates based on an analysis of the weighted average cost of capital, adjusted for specific risks associated with the assets. |
Goodwill and Identified Intangible Assets | Goodwill and Identified Intangible Assets Goodwill 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 under a business combination. Goodwill also includes acquired assembled workforce, which does not qualify as an identifiable intangible asset. The Company performs an annual review of the valuation of goodwill in the fourth quarter, or more often if indicators of impairment exist. Triggering events for impairment reviews may be indicators such as adverse industry or economic trends, restructuring actions, lower projections of profitability or a sustained decline in the Company's market capitalization. Evaluations of possible impairment and, if applicable, adjustments to carrying values require the Company to estimate, among other factors, future cash flows, useful lives and fair market values of the Company's assets. When the Company conducts the evaluation of goodwill, the fair value of goodwill is assessed using valuation techniques that require significant management estimates and judgment. In performing the quantitative impairment test for goodwill, the fair value of the reporting unit is compared to its carrying amount. The Company utilizes the market capitalization approach to determine the fair value of a reporting unit. Under the market capitalization approach, the fair value of a reporting unit is estimated based on the trading price of the Company's stock as of the test date, or trading prices over a short period of time immediately prior or subsequent to the test date if such prices more reasonably represent the estimated fair value as of the test date, which is further adjusted by a control premium representing the synergies a market participant would achieve when obtaining control of the business. Identified intangible assets Identified finite-lived intangible assets consist of acquired patents, existing technology, customer relationships and trademarks and trade names resulting from business combinations, as well as 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 . The Company makes judgments about the recoverability of intangible assets whenever events or changes in circumstances indicate that impairment may exist. If such facts and circumstances exist, the Company assesses the recoverability by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their remaining lives against their respective carrying amounts. Impairments, if any, are based on the excess of the carrying amount over the fair value of those assets. If the useful life is shorter than originally estimated, the Company would accelerate the rate of amortization and amortize the remaining carrying value over the new shorter useful life. For further discussion of goodwill and identified intangible assets, see “Note 11 – Goodwill and Identified Intangible Assets .” |
Debt Discount and Issuance Costs | Debt Discount and Issuance Costs Debt discount and issuance costs are presented in the Consolidated Balance Sheet as a deduction from the carrying amount of both the short-term debt and long-term debt, and are amortized over the term of the associated debt to interest expense using the effective interest method. In addition, the Company elects to continue to defer the unamortized debt discount and issuance costs when it voluntarily pays down a portion of the debt as the prepayment is factored into the terms agreed to on the debt. |
Treasury Stock | Treasury Stock The Company accounts for stock repurchases using the cost method. For reissuance of treasury stock, to the extent that the reissuance price is more than the cost, the excess is recorded as an increase to additional paid-in capital. If the reissuance price is less than the cost, the difference is recorded in additional paid-in capital to the extent there is a cumulative treasury stock paid-in capital balance. Once the cumulative balance is reduced to zero, any remaining difference resulting from the sale of treasury stock below cost is recorded as a reduction of retained earnings. |
Leases | Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“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. As a practical expedient, the Company elected, for all office and facility leases, not to separate nonlease components from lease components and instead to account for each separate lease component and its associated non-lease components as a single lease component. For additional information regarding the Company's leases, refer to “Note 8 – Leases.” |
Research and Development | Research and Development Research and development expense (“R&D expense”) consists primarily of employee-related costs, stock-based compensation expense, engineering consulting expenses associated with new IP development, as well as costs related to patent applications and examinations, reverse engineering, materials, supplies and an allocation of facilities costs. All R&D expense is expensed as incurred. |
Stock-based Compensation Expense | Stock-based Compensation Expense Stock-based compensation is measured at the grant date based on the estimated fair value of the award and is recognized as expense 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 stock units (“PSUs”) that are based on company-designated performance targets. For performance stock awards 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 options and stock to be issued under the employee stock purchase plan (“ESPP”) using the Black-Scholes pricing model. See “Note 15 – Stock-based Compensation Expense ” for additional detail. Performance-based PSU awards will vest if certain employee-specific or company-designated performance targets are achieved. If minimum performance thresholds are achieved, each PSU award will convert into the Company’s common stock at a defined ratio depending on the degree of achievement of the performance target designated by each individual award. If minimum performance thresholds are not achieved, then no shares will be issued. The expected levels of achievement are reassessed over the requisite service periods and, to the extent that the expected levels of achievement change, stock-based compensation is adjusted in the period of change and recorded on the statements of operations and the remaining unrecognized stock-based compensation is recorded over the remaining requisite service period. For market-based PSUs, 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 unless it is due to termination. |
Income Taxes | Income Taxes The Company must make certain estimates and judgments in determining income tax expense for financial statement purposes. These estimates and judgments are used in the calculation of tax credits, tax benefits, tax deductions, and in the calculation of certain deferred taxes and tax liabilities. Significant changes to these estimates may result in an increase or decrease to the Company’s tax provision in a subsequent period. The provision for income taxes is comprised of the Company’s current tax liability and changes in deferred income tax assets and liabilities. The calculation of the current tax liability involves dealing with uncertainties in the application of complex tax laws and regulations and in determining the liability for tax positions, if any, taken on the Company’s tax returns in accordance with authoritative guidance on accounting for uncertainty in income taxes. Deferred income taxes are determined based on the differences between the financial reporting and tax basis of assets and liabilities. The Company must assess the likelihood that it will be able to recover its deferred tax assets. If recovery is not likely on a more-likely-than-not basis, the Company must increase its provision for income taxes by recording a valuation allowance against the deferred tax assets that it estimates will not ultimately be recoverable. However, should there be a change in the Company’s ability to recover its deferred tax assets, the provision for income taxes would fluctuate in the period of such change. See “Note 16 – Income Taxes” for additional detail. |
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 were $ 5.5 million for the year ended December 31, 2022, and were not material for the years ended December 31, 2021 and 2020. |
Guarantees and Indemnification | Guarantees and Indemnification The Company has certain financial and performance guarantees which have been issued in the normal course of business. The Company entered into the underlying arrangement with a third-party to facilitate commercial transactions. See "Note 17 - Commitments and Contingencies " for further information regarding the Company's guarantees. The Company provides indemnification of varying scope to certain customers against claims of intellectual property infringement made by third parties arising from the use of the Company’s technologies. In accordance with authoritative guidance for accounting for guarantees, the Company evaluates estimated losses for such indemnification. The Company considers such factors as the degree of probability of an unfavorable outcome and the ability to make a reasonable estimate of the amount of loss. To date, no such claims have been filed against the Company 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 maintains a directors’ and officers’ liability insurance policy that is intended to reduce its financial exposure and may enable the Company to recover any payments, should they occur. |
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 nature of the loss contingency and the fact that an estimate cannot be made. If a loss is reasonably possible but not probable, the Company discloses the nature of the loss contingency and an estimate of the possible loss, range of loss or the fact that 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. See “Note 17 – Commitments and Contingencies ,” for further information regarding the Company’s pending litigation. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost, less accumulated depreciation. Depreciation expense 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. |
Foreign Currency Transactions | Foreign Currency Translation The Company uses the U.S. dollar as its functional currency. Non-U.S. subsidiaries may designate a local currency as their functional currency. The translation of assets and liabilities into U.S. dollars for subsidiaries with a functional currency other than the U.S. dollar is performed using exchange rates in effect at the balance sheet date. The translation of revenues and expenses into U.S. dollars for subsidiaries with a functional currency other than the U.S. dollar is performed using the average exchange rate for the respective period. Gains or losses from cumulative translation adjustments, net of tax, are included as a component of accumulated other comprehensive income (loss) in the Consolidated Balance Sheets. The Company records net foreign exchange transaction gains and losses resulting from the conversion of the transaction currency to the functional currency within other income and expense, net. |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements In October 2021, the Financial Accounting Standards Board (“FASB”) issued ASU 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 from Contracts with Customers (“Topic 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. ASU 2021-08 is effective for public business entities for fiscal years beginning after December 15, 2022 and early adoption is permitted. The Company elected to early adopt the new standard on January 1, 2022 . The adoption did no t have an impact on the Company’s consolidated financial statements. Recent Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). ASU 2020-04 provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in ASU 2020-04 apply only to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848), which provides further clarification on the scope of Topic 848 so that derivatives affected by the discounting transition are explicitly eligible for certain optional expedients and exceptions in Topic 848. ASU 2020-04 became effective upon issuance and may be applied prospectively to contract modifications made on or before December 31, 2022. ASU 2021-01 became effective upon issuance and may be applied on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 or prospectively for contract modifications made on or before December 31, 2022. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 ("ASU 2022-06"), which deferred the application dates of Topic 848 to December 31, 2024. The Company currently has debt agreements that reference LIBOR and will apply the amendments prospectively through December 31, 2024 as these contracts are modified to reference other rates. The Company does not anticipate the adoption will have a material impact to the Company's consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Customers Comprising 10% or More of Total Revenues | The following table sets forth revenue generated from customers which comprise 10% or more of total revenue for the periods indicated: Years Ended December 31, 2022 2021 2020 Customer A 16 % 18 % * Customer B 13 % * * Customer C 11 % 14 % 46 % Customer D * * 14 % * denotes less than 10% of total revenue. |
Schedule of Estimated Useful Life | Property and equipment are recorded at cost, less accumulated depreciation. Depreciation expense 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, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Assets | Contract assets were recorded in the Consolidated Balance Sheets as follows (in thousands): December 31, 2022 December 31, Unbilled contracts receivable $ 73,754 $ 26,715 Other current assets 512 426 Long-term unbilled contracts receivable 40,705 282 Other long-term assets 1,144 1,267 Total contract assets $ 116,115 $ 28,690 |
Schedule of Revenue Recognized in Period | The following table presents additional revenue and contract disclosures (in thousands): Years Ended December 31, 2022 2021 2020 Revenue recognized in the period from: Amounts included in deferred revenue at the beginning of the period $ 5,509 $ 4,476 $ 904 Performance obligations satisfied in previous periods (1) $ 12,976 (2) $ 33,885 (3) $ 282,893 (4) (1) Performance obligations satisfied in previous periods consist of settlements of litigation during the period for past royalties owed pursuant to expired or terminated IP license agreements. (2) Includes past royalty revenue from the execution of long-term license agreements with a leading consumer electronics and OTT service provider and two social media companies. The long-term license agreements were effective as of the expiration of the prior agreements. The Company recorded revenue from both the settlement and the license agreements, referred to above, in the second and fourth quarter of 2022 and expects to record revenue from the prospective license in future periods. (3) Includes past royalty revenue from the execution of multiple long-term license agreements. The Company recorded revenue from both the settlement and the license agreements during 2021 and continues to record revenue from the prospective license. (4) Includes past royalty revenue from the execution of a license agreement with a pay-TV provider. On November 9, 2020, the Company entered into a patent license agreement, which was effective as of the expiration of the customer's prior agreement in 2016 and its term expires in 2031. In connection with the agreement, the Company recorded revenue from past royalties in the fourth quarter of 2020 and expects to record revenue from the prospective license into 2031. |
Schedule of Remaining Performance Obligations | Amounts Revenue from contracts with performance obligations expected to be satisfied in: 2023 $ 157,160 2024 146,095 2025 141,295 2026 42,481 2027 32,908 Thereafter 59,527 Total $ 579,466 |
Composition of Certain Financ_2
Composition of Certain Financial Statement Captions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Other Current Assets | Other current assets consisted of the following (in thousands): December 31, 2022 2021 Prepaid income taxes $ 7,252 $ 4,938 Prepaid insurance 2,103 2,057 Prepaid expenses 1,924 2,000 Other 645 1,495 $ 11,924 $ 10,490 |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): December 31, 2022 2021 Equipment, furniture and other $ 14,148 $ 16,839 Leasehold improvements 5,057 5,724 19,205 22,563 Less: Accumulated depreciation and amortization ( 14,655 ) ( 17,627 ) $ 4,550 $ 4,936 |
Schedule of Other Long Term Assets | Other long-term assets consisted of the following (in thousands): December 31, 2022 2021 Long-term deferred tax assets $ 35,278 $ 1,910 Other assets 5,472 7,736 $ 40,750 $ 9,646 |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following (in thousands): December 31, 2022 2021 Employee compensation and benefits $ 6,978 $ 7,266 Accrued expenses 12,745 10,188 Accrued income taxes 358 736 Current portion of guarantee 2,431 — Current portion of operating lease liabilities 2,108 1,742 Other 1,715 1,820 $ 26,335 $ 21,752 |
Schedule of Other Long-Term Liabilities | Other long-term liabilities consisted of the following (in thousands): December 31, 2022 2021 Long-term portion of guarantee 18,064 — Other 1,979 3,792 $ 20,043 $ 3,792 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Marketable Securities | The following is a summary of marketable securities at December 31, 2022 and December 31, 2021 (in thousands): December 31, 2022 Cost Gross Gross Allowance for Credit Losses Estimated Marketable securities Corporate bonds and notes $ 29,018 $ 3 $ ( 6 ) $ — $ 29,015 Total debt securities 29,018 3 ( 6 ) 29,015 Money market funds 4,107 4,107 Total equity securities 4,107 — — — 4,107 Total marketable securities $ 33,125 $ 3 $ ( 6 ) $ — $ 33,122 Reported in: Cash and cash equivalents $ 33,122 December 31, 2021 Cost Gross Gross Allowance for Credit Losses Estimated Marketable securities Corporate bonds and notes $ 40,466 $ — $ ( 53 ) $ — $ 40,413 Commercial paper 49,609 — ( 18 ) — 49,591 Total debt securities 90,075 — ( 71 ) — 90,004 Money market funds 12,372 — — — 12,372 Total equity securities 12,372 — — — 12,372 Total marketable securities $ 102,447 $ — $ ( 71 ) $ — $ 102,376 Reported in: Cash and cash equivalents $ 41,842 Available-for-sale debt securities 60,534 Total marketable securities $ 102,376 |
Fair Value and Gross Unrealized Losses Related to Individual Available-for-Sale Debt Securities | The following table summarizes the fair value and gross unrealized losses related to individual debt securities at December 31, 2022 and 2021, which have been in a continuous unrealized loss position, aggregated by investment category and length of time (in thousands): December 31, 2022 Less Than 12 Months 12 Months or More Total Fair Value Fair Gross Fair Gross Fair Gross Cash and Cash Equivalents AFS Debt Securities Commercial paper $ 29,015 $ ( 6 ) $ — $ — $ 29,015 $ ( 6 ) $ 29,015 $ — December 31, 2021 Less Than 12 Months 12 Months or More Total Fair Value Fair Gross Fair Gross Fair Gross Cash and Cash Equivalents AFS Debt Securities Corporate bonds and notes $ 29,807 $ ( 45 ) $ 10,382 $ ( 8 ) $ 40,189 $ ( 53 ) $ - $ 40,189 Commercial paper 48,091 ( 18 ) — — 48,091 ( 18 ) 29,470 18,621 Total $ 77,898 $ ( 63 ) $ 10,382 $ ( 8 ) $ 88,280 $ ( 71 ) $ 29,470 $ 58,810 |
Estimated Fair Value of Marketable Debt Securities by Contractual Maturity | The estimated fair value of marketable debt securities by contractual maturity at December 31, 2022 is shown below (in thousands). Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without call or prepayment penalties. Estimated Due in one year or less $ 29,015 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Assets Measured on Recurring Basis | The following sets forth the fair value, and classification within the hierarchy, of the Company’s assets required to be measured at fair value on a recurring basis as of December 31, 2022 (in thousands): Fair Value Quoted Significant Significant Assets Marketable securities Money market funds - equity securities (1) $ 4,107 $ 4,107 $ — $ — Commercial paper - debt securities (2) 29,015 — 29,015 — Total Assets $ 33,122 $ 4,107 $ 29,015 $ — (1) Reported as cash and cash equivalents in the Consolidated Balance Sheet. (2) Reported as cash and cash equivalents as these were purchased with original maturities of three months or less at the date of purchase. The following sets forth the fair value, and classification within the hierarchy, of the Company’s assets required to be measured at fair value on a recurring basis as of December 31, 2021 (in thousands): Fair Value Quoted Significant Significant Assets Marketable securities Money market funds - equity securities (1) $ 12,372 $ 10,372 $ 2,000 $ — Corporate bonds and notes - debt securities (2) 40,413 — 40,413 — Commercial paper - debt securities (3) 49,591 — 49,591 — Total Assets $ 102,376 $ 10,372 $ 92,004 $ — (1) Reported as cash and cash equivalents in the Consolidated Balance Sheet. (2) Reported as AFS debt securities in the Consolidated Balance Sheet. (3) Reported as cash and cash equivalents if purchased with an original maturity of three months or less at the date of purchase; otherwise reported as AFS debt securities in the Consolidated Balance Sheet. |
Schedule of Carrying Amounts and Estimated Fair Values | The carrying amounts and estimated fair values are as follows (in thousands): December 31, 2022 December 31, 2021 Carrying Estimated Fair Carrying Estimated Fair Refinanced Term B Loans (1) 729,393 700,217 765,487 764,530 Total long-term debt, net $ 729,393 $ 700,217 $ 765,487 $ 764,530 (1) Carrying amounts of long-term debt are net of unamortized debt discount and issuance c osts of $ 19.9 million and $ 24.3 million as of December 31, 2022 and 2021, respectively. See “Note 12 – Debt ” for additional information. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Operating Lease Costs | The components of operating lease costs were as follows (in thousands): Years Ended December 31, 2022 2021 2020 Fixed lease cost (1) $ 2,177 $ 3,387 $ 3,962 Variable lease cost 598 1,002 $ 166 Total operating lease cost $ 2,775 $ 4,389 $ 4,128 (1) Includes short-term leases costs, which were immaterial. |
Schedule of Other Information Related to Leases | Other information related to leases was as follows (in thousands, except lease term and discount rate): Years Ended December 31, 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,227 $ 4,039 $ 3,357 ROU assets obtained in exchange for new lease liabilities: Operating leases $ 1,153 $ 764 $ — Years ended December 31, 2022 2021 Weighted-average remaining lease term (years): Operating leases 3.19 2.18 Weighted-average discount rate: Operating leases 5.4 % 2.0 % |
Schedule of Future Minimum Lease Payments and Related Lease Liabilities | uture minimum lease payments and related lease liabilities as of December 31, 2022 were as follows (in thousands): Operating Lease Payments (1) 2023 $ 2,429 2024 2,524 2025 1,975 2026 290 2027 299 Total lease payments 7,517 Less: imputed interest ( 615 ) Present value of lease liabilities: $ 6,902 Less: current obligations under leases (accrued liabilities) ( 2,108 ) Noncurrent operating lease liabilities $ 4,794 (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. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Acquisition [Line Items] | |
Summary of Consolidated Statement of Operations, Balance Sheet and Cash flows of Discontinued Operation | The financial results of Xperi Inc. through September 30, 2022 are presented as net loss from discontinued operations, net of tax, on the Consolidated Statements of Operations. The following table presents financial results of Xperi Inc. (in thousands): 2022 (1) 2021 2020 Revenue $ 366,730 $ 486,484 $ 376,101 Operating expenses: Cost of revenue 85,689 125,627 77,788 Research and development 158,708 194,869 161,630 Selling, general and administrative 123,764 137,745 109,188 Depreciation expense 15,702 21,777 16,298 Amortization expense 46,166 105,311 98,209 Litigation expense 921 6,371 2,815 Goodwill impairment 354,000 — — Total operating expenses 784,950 591,700 465,928 Operating loss ( 418,220 ) ( 105,216 ) ( 89,827 ) Interest expense ( 754 ) — — Other income and expense, net 62 1,870 1,242 Loss before taxes ( 418,912 ) ( 103,346 ) ( 88,585 ) Provision for income taxes 18,066 23,550 7,425 Net loss from discontinued operations, net of tax $ ( 436,978 ) $ ( 126,896 ) $ ( 96,010 ) Less: net loss attributable to noncontrolling interest ( 2,706 ) ( 3,456 ) ( 2,966 ) Net loss attributable to discontinued operations $ ( 434,272 ) $ ( 123,440 ) $ ( 93,044 ) (1) Represents nine months of Xperi Inc.'s operations in 2022, as compared to a full year of Xperi Inc.'s operations in 2021 and 2020. Assets and Liabilities of Discontinued Operations The following table presents the aggregate carrying amounts of the major classes of assets and liabilities of discontinued operations (in thousands): 2021 Assets Current assets: Cash and cash equivalents $ 120,695 Accounts receivable, net of allowance for credit losses 79,494 Unbilled contracts receivable, net 50,962 Other current assets 25,969 Total current assets of discontinued operations 277,120 Long-term unbilled contracts receivable 3,825 Property and equipment, net 56,038 Operating lease right-of-use assets 61,858 Intangible assets, net 270,934 Goodwill 536,512 Other long-term assets 20,260 Total assets of discontinued operations $ 1,226,547 Liabilities Current liabilities: Accounts payable $ 7,362 Accrued legal fees 2,210 Accrued liabilities 81,764 Deferred revenue 28,161 Total current liabilities of discontinued operations 119,497 Deferred revenue, less current portion 23,663 Long-term deferred tax liabilities 12,771 Noncurrent operating lease liabilities 49,017 Other long-term liabilities 3,606 Total liabilities of discontinued operations $ 208,554 The following table presents selected financial information related to cash flows from discontinued operations: 2022 (1) 2021 2020 Net cash from operating activities $ 2,308 $ 24,395 $ 29,207 Net cash from investing activities $ ( 61,097 ) $ ( 21,479 ) $ 26,527 (1) Represents nine months of Xperi Inc.'s operations in 2022, as compared to a full year of Xperi Inc.'s operations in 2021 and 2020. |
MobiTV | |
Business Acquisition [Line Items] | |
Schedule of Purchase Price Allocation Reflective of Measurement Period Adjustments | The following table sets forth the final purchase price allocation (in thousands): Estimated Useful Final Other current assets $ 390 Property and equipment 9,223 Operating lease right-of-use assets 1,186 Identifiable intangible assets: Patents 10 5,000 Technology 6 3,260 Total identifiable intangible assets 8,260 Goodwill 4,059 Other long-term assets 115 Accrued liabilities ( 5,288 ) Noncurrent operating lease liabilities ( 545 ) Total purchase price $ 17,400 |
Schedule of Unaudited Pro Forma Financial Information | The following table presents the pro forma operating results as if the acquired operations of MobiTV had been included in the Company's Condensed Consolidated Statements of Operations as of January 1, 2020 (unaudited, in thousands): Years Ended December 31, 2021 2020 Net loss attributable to discontinued operations $ ( 71,169 ) $ 105,793 |
Vewd Acquisition | |
Business Acquisition [Line Items] | |
Schedule of Purchase Price Allocation Reflective of Measurement Period Adjustments | 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 (in thousands): Estimated Useful 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 Current liabilities ( 6,566 ) 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): Nine Months Ended September 30, 2022 2021 Net loss attributable to discontinued operations $ ( 377,614 ) $ ( 62,976 ) |
Business Combination (Tables)
Business Combination (Tables) - TiVo Merger | 12 Months Ended |
Dec. 31, 2022 | |
Business Acquisition [Line Items] | |
Schedule of Purchase Price Allocation Reflective of Measurement Period Adjustments | The following table sets forth the purchase price allocation reflective of measurement period adjustments (in thousands): Estimated Fair Value Cash and cash equivalents $ 117,424 Accounts receivable 105,778 Unbilled contracts receivable 69,058 Other current assets 21,923 Long-term unbilled contracts receivable 129 Property and equipment 41,307 Operating lease right-of-use assets 71,444 Identifiable intangible assets: Patents 10 457,400 Customer contracts and related relationships 4 - 9 358,200 Developed technology 5 34,800 Content database 9 6,200 Trademarks and tradenames N/A 21,400 Total identifiable intangible assets 878,000 Goodwill 461,245 Other long-term assets 43,559 Accounts payable ( 13,258 ) Accrued legal fees ( 5,619 ) Accrued liabilities ( 79,601 ) Current portion of deferred revenue ( 29,291 ) Current portion of long-term debt ( 734,609 ) Deferred revenue, less current portion ( 24,319 ) Long-term deferred tax liabilities ( 27,528 ) Long-term debt ( 48 ) Noncurrent operating lease liabilities ( 59,291 ) Other long-term liabilities ( 7,969 ) Total purchase price $ 828,334 |
Schedule of Unaudited Pro Forma Financial Information | The following table presents the pro forma operating results as if TiVo had been included in the Company's Consolidated Statements of Operations as of January 1, 2019 (unaudited, in thousands): Year Ended December 31, 2020 Revenue $ 1,142,603 Net income (loss) attributable to the Company $ 9,775 |
Goodwill and Identified Intan_2
Goodwill and Identified Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes to Carrying Value of Goodwill | The changes to the carrying value of goodwill from January 1, 2021 through December 31, 2022 are reflected below (in thousands): Amounts Balance at December 31, 2020 and 2021 $ 314,576 Goodwill adjustment related to Mergers in prior periods ( 916 ) Balance at December 31, 2022 $ 313,660 |
Identified Intangible Assets | Identified intangible assets consisted of the following (in thousands): December 31, 2022 December 31, 2021 Average Gross Accumulated Net Gross Accumulated Net Finite-lived intangible assets Acquired patents / core technology 3 - 10 $ 645,928 $ ( 270,275 ) $ 375,653 $ 667,613 $ ( 219,292 ) $ 448,321 Existing technology / content database 5 - 10 38,681 ( 36,614 ) 2,067 38,681 ( 33,514 ) 5,167 Customer contracts and related relationships 3 - 9 155,900 ( 101,252 ) 54,648 155,900 ( 62,677 ) 93,223 Trademarks/trade name 4 - 10 1,300 ( 1,192 ) 108 1,300 ( 1,029 ) 271 Total intangible assets $ 841,809 $ ( 409,333 ) $ 432,476 $ 863,494 $ ( 316,512 ) $ 546,982 |
Estimated Future Amortization Expense | As of December 31, 2022, the estimated future amortization expense of total finite-lived intangible assets was as follows (in thousands): Amounts 2023 $ 93,540 2024 68,809 2025 52,731 2026 52,597 2027 52,246 Thereafter 112,553 $ 432,476 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Amounts of Debt | The outstanding amounts of debt were as follows (in thousands): December 31, 2022 2021 Refinanced Term B Loans $ 749,250 $ 789,750 Unamortized debt discount and issuance costs ( 19,857 ) ( 24,263 ) 729,393 765,487 Less: current portion, net of debt discount and issuance costs ( 109,813 ) ( 36,095 ) Total long-term debt, net of current portion $ 619,580 $ 729,392 |
Summary of Future Minimum Principal Payments for Long-term Debt, Excluding Any Additional Payment Required by the Excess Cash Flow Provision | As of December 31, 2022, future minimum principal payments for long-term debt, excluding any additional principal payment required by the excess cash flow provision, are summarized as follows (in thousands): Amounts 2023 $ 40,500 2024 40,500 2025 40,500 2026 40,500 2027 40,500 Thereafter 546,750 Total $ 749,250 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Income (Loss) Per Share | The following table sets forth the computation of basic and diluted shares (in thousands): Years Ended December 31, 2022 2021 2020 Denominator: Weighted average common shares outstanding 104,336 104,735 82,840 Total common shares-basic 104,336 104,735 82,840 Effect of dilutive securities: Options — 17 1 Restricted stock awards 3,244 2,513 1,015 Total common shares-diluted 107,580 107,265 83,856 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity | A summary of the stock option activity is presented below (in thousands, except per share amounts): Options Outstanding Number of Weighted Weighted Aggregate Balance at December 31, 2019 605 $ 26.68 Options granted — $ — Options assumed 175 $ 50.96 Options exercised ( 7 ) $ 13.47 Options canceled / forfeited / expired ( 136 ) $ 44.59 Balance at December 31, 2020 637 $ 29.59 Options granted — $ — Options exercised ( 39 ) $ 20.03 Options canceled / forfeited / expired ( 151 ) $ 44.99 Balance at December 31, 2021 447 $ 25.22 Options granted — $ — Options exercised ( 10 ) $ 13.96 Options canceled / forfeited / expired ( 73 ) $ 37.24 Balance at December 31, 2022 364 1.88 6.59 Vested and expected to vest at December 31, 2022 364 1.88 6.59 Exercisable at December 31, 2022 364 1.88 6.59 |
Summary of Stock Options Outstanding and Exercisable | The following table summarizes information about stock options outstanding and exercisable under all of the Company’s plans at December 31, 2022: Options Outstanding Options Exercisable Range of Exercise Number Weighted Weighted Number Weighted $ 8.99 - $ 28.79 364 1.88 $ 13.06 364 $ 13.06 |
Summary of Restricted Stock Awards | Information with respect to outstanding restricted stock awards (including both time-based vesting and performance-based vesting) as of December 31, 2022 is as follows (in thousands, except per share amounts): Restricted Stock Awards Number of Shares Number of Shares Total Number Weighted Average Balance at December 31, 2019 2,371 554 2,925 $ 25.99 Awards granted 3,331 994 4,325 $ 14.64 Awards assumed 2,185 253 2,438 $ 13.99 Awards converted 11 ( 11 ) — $ 22.45 Awards vested / earned ( 1,676 ) ( 487 ) ( 2,163 ) $ 21.12 Awards canceled / forfeited ( 560 ) ( 242 ) ( 802 ) $ 19.96 Balance at December 31, 2020 5,662 1,061 6,723 $ 16.63 Awards granted 3,959 650 4,609 $ 22.77 Awards vested / earned ( 1,916 ) ( 87 ) ( 2,003 ) $ 17.79 Awards canceled / forfeited ( 890 ) ( 99 ) ( 989 ) $ 17.75 Balance at December 31, 2021 6,815 1,525 8,340 $ 19.61 Awards granted 5,417 514 5,931 $ 12.56 Awards vested / earned ( 2,281 ) ( 340 ) ( 2,621 ) $ 18.59 Awards canceled / forfeited ( 903 ) ( 174 ) ( 1,077 ) $ 18.29 Balance at December 31, 2022 9,048 1,525 10,573 $ 10.48 |
Stock-Based Compensation Expe_2
Stock-Based Compensation Expense (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Effect of Recording Stock-Based Compensation Expense | The effect of recording stock-based compensation ("SBC") expense for continuing operations for the years ended December 31, 2022, 2021 and 2020 is as follows (in thousands): Years Ended December 31, 2022 2021 2020 Research and development $ 1,644 $ 1,895 $ 2,189 Selling, general and administrative 21,201 23,733 17,954 Total stock-based compensation expense $ 22,845 $ 25,628 $ 20,143 |
Employee Stock Purchase Plan | |
Schedule of Assumptions Used to Value Options Granted | The following assumptions were used to value the ESPP shares: Years Ended December 31, 2022 2021 2020 Expected life (years) 2.0 2.0 2.0 Risk-free interest rate 1.3 - 4.3 % 0.1 - 0.2 % 0.1 - 1.4 % Dividend yield 1.1 - 2.3 % 0.9 - 1.2 % 1.4 - 4.0 % Expected volatility 48.5 - 69.0 % 52.0 - 52.0 % 45.8 - 57.5 % |
Performance Stock Units | |
Schedule of Assumptions Used to Value Options Granted | The following assumptions were used to value the performance stock awards subject to market conditions granted in the years ended December 31, 2022, 2021 and 2020: Years Ended December 31, 2022 2021 2020 Expected life (in years) 3.0 3.0 3.0 Risk-free interest rate 2.8 % 0.3 % 0.2 % Dividend yield 1.2 % 1.0 % 1.4 % Expected volatility 37.5 % - 40.9 % 47.9 % 51.3 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Components of Income (Loss) Before Income Taxes | The components of total income (loss) before taxes from continuing operations are as follows (in thousands): Years Ended December 31, 2022 2021 2020 U.S. $ 110,796 $ 71,485 $ 222,930 Foreign ( 1,024 ) 1,326 1,564 Income before taxes from continuing operations $ 109,772 $ 72,811 $ 224,494 |
Components of Provision for Income Taxes | The provision for (benefit from) income taxes consisted of the following (in thousands): Years Ended December 31, 2022 2021 2020 Current: U.S. federal $ ( 5,156 ) $ ( 5,578 ) $ ( 20,157 ) Foreign 9,937 14,045 24,107 State and local 8,636 4,201 8,083 Total current 13,417 12,668 12,033 Deferred: U.S. federal ( 36,363 ) ( 576 ) ( 25,322 ) Foreign 4,730 ( 4,935 ) — State and local ( 10,404 ) ( 2,329 ) ( 2,023 ) Total deferred ( 42,037 ) ( 7,840 ) ( 27,345 ) Provision for (benefit from) income taxes $ ( 28,620 ) $ 4,828 $ ( 15,312 ) |
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, 2022 2021 Deferred tax assets Net operating losses $ 63,702 $ 74,463 Research tax credits 78,340 80,468 Foreign tax credits 29,077 69,637 Expenses not currently deductible 18,823 14,434 Fixed and intangible assets — 207 Deferred revenue 8,428 6,385 Capitalized research expenses 38,806 34,963 Lease liability 1,598 1,715 Gross deferred tax assets 238,774 282,272 Valuation allowance ( 120,508 ) ( 178,731 ) Net deferred tax assets 118,266 103,541 Deferred tax liabilities Revenue recognition ( 4,288 ) ( 1,445 ) Operating leases ( 1,388 ) ( 1,508 ) Acquired intangible assets ( 74,075 ) ( 101,679 ) Other ( 3,237 ) ( 4,076 ) Net deferred tax liabilities $ 35,278 $ ( 5,167 ) |
Reconciliation of Statutory U.S. Federal Income Tax Rate to Company's Effective Tax | A reconciliation of the statutory U.S. federal income tax rate to the Company’s effective tax rate is as follows: Years Ended December 31, 2022 2021 2020 U.S. federal statutory rate $ 23,052 $ 15,291 $ 47,144 State, net of federal benefit ( 2,712 ) ( 617 ) 2,094 Stock-based compensation expense 235 ( 129 ) 1,222 Executive compensation limitation 1,236 2,430 235 Research tax credit ( 2,705 ) 353 694 Foreign withholding tax 5,969 1,575 1,250 Transaction costs 1,308 145 1,996 Foreign tax rate differential 4,960 ( 3,249 ) ( 288 ) Foreign tax credit 10,525 10,714 ( 2,603 ) Change in valuation allowance ( 78,699 ) ( 33,526 ) ( 63,346 ) U.S. tax reform 541 192 89 Unrecognized tax benefits ( 3,318 ) 4,548 6,424 Change in estimates ( 3,478 ) ( 85 ) ( 1,217 ) Foreign exchange and interest 4,516 6,956 ( 7,438 ) Divestitures 15,396 — — Foreign derived intangible income ( 4,697 ) — — Others ( 749 ) 230 ( 1,568 ) Total $ ( 28,620 ) $ 4,828 $ ( 15,312 ) |
Reconciliation of Unrecognized Tax Benefits | The reconciliation of the Company’s unrecognized tax benefits for the years ended December 31, 2022, 2021 and 2020 is as follows (in thousands): Years Ended December 31, 2022 2021 2020 Total unrecognized tax benefits at January 1 $ 230,076 $ 225,279 $ 100,037 Increases due to the Mergers — — 102,582 Increases for tax positions related to the current year 3,872 6,876 21,199 Increases for tax positions related to prior years 229 5,195 3,245 Decreases for tax positions related to prior years ( 4,685 ) ( 7,274 ) ( 1,784 ) Total unrecognized tax benefits at December 31 $ 229,492 $ 230,076 $ 225,279 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Geographic Revenue Information | The table below lists the geographic revenue for the periods indicated (in thousands): Years Ended December 31, 2022 2021 2020 U.S. $ 366,527 84 % $ 299,253 76 % $ 365,819 71 % Japan 13,830 3 % 18,025 5 % 6,106 1 % South Korea 20,539 5 % 28,082 7 % 124,867 24 % Europe and Middle East 6,058 1 % 8,201 2 % 2,348 1 % Other 31,979 7 % 37,651 10 % 16,779 3 % $ 438,933 100 % $ 391,212 100 % $ 515,919 100 % |
Summary of Customers Comprising 10% or More of Total Revenues | The following table sets forth revenue generated from customers which comprise 10% or more of total revenue for the periods indicated: Years Ended December 31, 2022 2021 2020 Customer A 16 % 18 % * Customer B 13 % * * Customer C 11 % 14 % 46 % Customer D * * 14 % * denotes less than 10% of total revenue. |
Quarterly Results Of Operatio_2
Quarterly Results Of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Data | The following quarterly financial data should be read in conjunction with our consolidated financial statements (in thousands, except per share amounts): Three Months Ended Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Revenue $ 103,290 $ 89,296 $ 107,815 $ 138,532 $ 89,705 $ 101,647 $ 101,846 $ 98,014 Total operating expenses 70,047 73,654 73,094 69,078 72,738 64,160 70,385 64,901 Operating income from continuing operations 33,243 15,642 34,721 69,454 16,967 37,487 31,461 33,113 Income from continuing operations before income taxes 18,640 4,058 25,712 61,362 7,354 29,249 13,564 22,644 Provision for (benefit from) income taxes ( 55,090 ) 10,401 10,552 5,517 ( 11,314 ) 8,676 ( 387 ) 7,853 Net income from continuing operations 73,730 ( 6,343 ) 15,160 55,845 18,668 20,573 13,951 14,791 Net loss attributable to discontinued operations, net of tax — ( 382,585 ) ( 20,785 ) ( 30,902 ) ( 33,227 ) ( 65,640 ) ( 15,069 ) ( 9,504 ) Net income (loss) attributable to the Company $ 73,730 $ ( 388,928 ) $ ( 5,625 ) $ 24,943 $ ( 14,559 ) $ ( 45,067 ) $ ( 1,118 ) $ 5,287 Income (loss) per share: Basic Continuing operations $ 0.70 $ ( 0.06 ) $ 0.15 $ 0.54 $ 0.18 $ 0.20 $ 0.13 $ 0.14 Discontinued operations — ( 3.66 ) ( 0.20 ) ( 0.30 ) ( 0.32 ) ( 0.63 ) ( 0.14 ) ( 0.09 ) Net income (loss) $ 0.70 $ ( 3.72 ) $ ( 0.05 ) $ 0.24 $ ( 0.14 ) $ ( 0.43 ) $ ( 0.01 ) $ 0.05 Diluted Continuing operations $ 0.65 $ ( 0.06 ) $ 0.14 $ 0.53 $ 0.18 $ 0.19 $ 0.13 $ 0.14 Discontinued operations — ( 3.61 ) ( 0.20 ) ( 0.29 ) ( 0.31 ) ( 0.61 ) ( 0.14 ) ( 0.09 ) Net income (loss) $ 0.65 $ ( 3.67 ) $ ( 0.06 ) $ 0.24 $ ( 0.13 ) $ ( 0.42 ) $ ( 0.01 ) $ 0.05 Weighted average number of shares-basic 105,135 104,510 104,001 103,679 104,249 104,849 104,906 104,940 Weighted average number of shares-diluted 113,392 105,850 105,160 105,332 105,915 106,910 107,267 107,776 |
The Company and Basis of Pres_2
The Company and Basis of Presentation - Additional Information (Details) | 3 Months Ended | 12 Months Ended | ||||
Oct. 01, 2022 NumberOfShare | Dec. 31, 2022 Patent Segment $ / shares | Dec. 31, 2022 Segment Patent $ / shares | Oct. 03, 2022 $ / shares | Dec. 31, 2021 $ / shares | Jun. 02, 2020 $ / shares | |
Organization Consolidation And Presentation [Line Items] | ||||||
Effective date of merger | Jun. 01, 2020 | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |
Distribution of outstanding shares, percentage | 100% | |||||
Common stock, conversion ratio | 4 | |||||
Number of each shares of common stock held on record date | NumberOfShare | 10 | |||||
Number of principal segment | Segment | 1 | 1 | ||||
Xperi Inc | ||||||
Organization Consolidation And Presentation [Line Items] | ||||||
Ownership interest, percentage | 0% | |||||
Minimum | ||||||
Organization Consolidation And Presentation [Line Items] | ||||||
Number of patents and applications | Patent | 9,750 | 9,750 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Accounting Policies [Abstract] | |
Advertising expense | $ 5.5 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Identifiable Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2022 | |
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) | 12 Months Ended |
Dec. 31, 2022 | |
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 Pronounceme_2
Recent Accounting Pronouncements (Narrative) (Details) - Accounting Standards Update 2021-08 | Dec. 31, 2022 |
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) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) RevenueModel | Dec. 31, 2021 USD ($) | |
Revenue Recognition [Line Items] | ||
Accounts receivable allowance for credit losses | $ | $ 713 | $ 934 |
Number of revenue models used for company licenses | RevenueModel | 3 | |
Maximum | ||
Revenue Recognition [Line Items] | ||
Practical expedient, timing of revenue recognition differs from the timing of cash collection, period | 1 year | |
Revenue recognition practical expedient amortization period | 1 year | |
Practical expedient revenue expected to be recognized from unsatisfied performance obligations, duration | 1 year |
Revenue - Schedule of Contract
Revenue - Schedule of Contract Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Unbilled contracts receivable | $ 73,754 | $ 26,715 |
Other current assets | 512 | 426 |
Long-term unbilled contracts receivable | 40,705 | 282 |
Other long-term assets | 1,144 | 1,267 |
Total contract assets | $ 116,115 | $ 28,690 |
Revenue - Schedule of Revenue R
Revenue - Schedule of Revenue Recognized in Period (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |||
Amounts included in deferred revenue at the beginning of the period | $ 5,509 | $ 4,476 | $ 904 |
Performance obligations satisfied in previous periods | $ 12,976 | $ 33,885 | $ 282,893 |
Revenue - Schedule of Remaining
Revenue - Schedule of Remaining Performance Obligations (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | $ 579,466 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Remaining performance obligations | $ 157,160 |
Performance obligations expected to be satisfied, expected timing | 1 year |
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 | $ 146,095 |
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 | $ 141,295 |
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 | $ 42,481 |
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 | $ 32,908 |
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 | $ 59,527 |
Performance obligations expected to be satisfied, expected timing |
Revenue - Schedule of Remaini_2
Revenue - Schedule of Remaining Performance Obligations (Details 1) $ in Thousands | Dec. 31, 2022 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 579,466 |
Composition of Certain Financ_3
Composition of Certain Financial Statement Captions - Schedule of Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid income taxes | $ 7,252 | $ 4,938 |
Prepaid insurance | 2,103 | 2,057 |
Prepaid expenses | 1,924 | 2,000 |
Other | 645 | 1,495 |
Other current assets, total | $ 11,924 | $ 10,490 |
Composition of Certain Financ_4
Composition of Certain Financial Statement Captions - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 19,205 | $ 22,563 |
Less: Accumulated depreciation and amortization | (14,655) | (17,627) |
Property and equipment, net | 4,550 | 4,936 |
Equipment, furniture and other | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 14,148 | 16,839 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 5,057 | $ 5,724 |
Composition of Certain Financ_5
Composition of Certain Financial Statement Captions - Schedule of Other Long Term Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Long-term deferred tax assets | $ 35,278 | $ 1,910 |
Other assets | 5,472 | 7,736 |
Other long-term assets, total | $ 40,750 | $ 9,646 |
Composition of Certain Financ_6
Composition of Certain Financial Statement Captions - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Employee compensation and benefits | $ 6,978 | $ 7,266 |
Accrued expenses | 12,745 | 10,188 |
Accrued income taxes | 358 | 736 |
Current portion of guarantee | 2,431 | |
Current portion of operating lease liabilities | $ 2,108 | $ 1,742 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued liabilities, total | Accrued liabilities, total |
Other | $ 1,715 | $ 1,820 |
Accrued liabilities, total | $ 26,335 | $ 21,752 |
Composition of Certain Financ_7
Composition of Certain Financial Statement Captions - Schedule of Other Long-Term Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Long-term portion of guarantee | $ 18,064 | |
Other | 1,979 | $ 3,792 |
Other long-term liabilities | $ 20,043 | $ 3,792 |
Financial Instruments - Summary
Financial Instruments - Summary of Marketable Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Marketable Securities [Line Items] | ||
Debt securities, Cost | $ 29,018 | $ 90,075 |
Debt securities, Gross Unrealized Gains | 3 | 0 |
Debt securities, Gross Unrealized Losses | (6) | (71) |
Debt securities, Allowance for Credit Losses | 0 | 0 |
Debt securities, Estimated Fair Values | 29,015 | 90,004 |
Equity securities, Cost | 4,107 | 12,372 |
Equity securities, Gross Unrealized Gains | 0 | 0 |
Equity securities, Gross Unrealized Losses | 0 | 0 |
Equity securities, Allowance for Credit Losses | 0 | 0 |
Equity securities, Estimated Fair Values | 4,107 | 12,372 |
Marketable securities, Cost | 33,125 | 102,447 |
Marketable securities, Gross Unrealized Gains | 3 | 0 |
Marketable securities, Gross Unrealized Losses | (6) | (71) |
Marketable securities, Allowance for Credit Losses | 0 | 0 |
Marketable securities, Estimated Fair Values | 33,122 | 102,376 |
Corporate bonds and notes | ||
Marketable Securities [Line Items] | ||
Debt securities, Cost | 29,018 | 40,466 |
Debt securities, Gross Unrealized Gains | 3 | 0 |
Debt securities, Gross Unrealized Losses | (6) | (53) |
Debt securities, Allowance for Credit Losses | 0 | 0 |
Debt securities, Estimated Fair Values | 29,015 | 40,413 |
Commercial paper | ||
Marketable Securities [Line Items] | ||
Debt securities, Cost | 49,609 | |
Debt securities, Gross Unrealized Gains | 0 | |
Debt securities, Gross Unrealized Losses | (18) | |
Debt securities, Allowance for Credit Losses | 0 | |
Debt securities, Estimated Fair Values | 49,591 | |
Money market funds | ||
Marketable Securities [Line Items] | ||
Equity securities, Cost | 4,107 | 12,372 |
Equity securities, Gross Unrealized Gains | 0 | |
Equity securities, Gross Unrealized Losses | 0 | |
Equity securities, Allowance for Credit Losses | 0 | |
Equity securities, Estimated Fair Values | 4,107 | 12,372 |
Cash and cash equivalents | ||
Marketable Securities [Line Items] | ||
Marketable securities, Estimated Fair Values | $ 33,122 | 41,842 |
Available-for-sale debt securities | ||
Marketable Securities [Line Items] | ||
Marketable securities, Estimated Fair Values | $ 60,534 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Investments [Line Items] | ||
Cash, cash equivalents and short -term investments | $ 114,600,000 | $ 141,000,000 |
Impairment charges related to marketable debt securities | 0 | |
Provision for credit loss expense related available for sale debt securities | 0 | 0 |
Operating Accounts | ||
Schedule Of Investments [Line Items] | ||
Cash, cash equivalents and short -term investments | $ 81,500,000 | $ 38,600,000 |
Financial Instruments - Fair Va
Financial Instruments - Fair Value and Gross Unrealized Losses Related to Individual Debt Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 77,898 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Gross Unrealized Losses | (63) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 months or more, Fair Value | 10,382 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 months or more, Gross Unrealized Losses | (8) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 88,280 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses | (71) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Cash and Cash Equivalents | 29,470 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, AFS Debt Securities | 58,810 | |
Corporate bonds and notes | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 29,807 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Gross Unrealized Losses | (45) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 months or more, Fair Value | 10,382 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 months or more, Gross Unrealized Losses | (8) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 40,189 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses | (53) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, AFS Debt Securities | 40,189 | |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 29,015 | 48,091 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Gross Unrealized Losses | (6) | (18) |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 months or more, Fair Value | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 months or more, Gross Unrealized Losses | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 29,015 | 48,091 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses | (6) | (18) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Cash and Cash Equivalents | 29,015 | 29,470 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, AFS Debt Securities | $ 0 | $ 18,621 |
Financial Instruments - Estimat
Financial Instruments - Estimated Fair Value of Marketable Debt Securities by Contractual Maturity (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Due in one year or less | $ 29,015 |
Fair Value - Schedule of Fair V
Fair Value - Schedule of Fair Value Assets Measured on Recurring Basis (Details) - Recurring - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 33,122 | $ 102,376 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 4,107 | 10,372 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 29,015 | 92,004 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 4,107 | 12,372 |
Money market funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 4,107 | 10,372 |
Money market funds | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 2,000 |
Money market funds | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Corporate bonds and notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 40,413 | |
Corporate bonds and notes | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | |
Corporate bonds and notes | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 40,413 | |
Corporate bonds and notes | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 29,015 | 49,591 |
Commercial paper | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Commercial paper | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 29,015 | 49,591 |
Commercial paper | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 0 | $ 0 |
Fair Value - Schedule of Carryi
Fair Value - Schedule of Carrying Amounts and Estimated Fair Values (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total long-term debt, net - Carrying Amount | $ 729,393 | $ 765,487 |
Recurring | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total long-term debt, net - Carrying Amount | 729,393 | 765,487 |
Total long-term debt, net - Estimated Fair Value | 700,217 | 764,530 |
Recurring | Refinanced Term B Loans | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total long-term debt, net - Carrying Amount | 729,393 | 765,487 |
Total long-term debt, net - Estimated Fair Value | $ 700,217 | $ 764,530 |
Fair Value - Schedule of Carr_2
Fair Value - Schedule of Carrying Amounts and Estimated Fair Values (Parenthetical) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Unamortized debt discount and issuance costs | $ 19,857 | $ 24,263 |
Term B Loan Facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Unamortized debt discount and issuance costs | $ 19,900 | $ 24,300 |
Leases - Additional Information
Leases - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Lessee Lease Description [Line Items] | |
Operating lease existence of option to extend | true |
Operating lease description | The Company’s leases have remaining lease terms of two to five years, some of which may include options to extend the leases for five years or longer, and some of which may include options to terminate the leases within the next 5 years or less. Leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheets |
Minimum | |
Lessee Lease Description [Line Items] | |
Remaining lease term | 2 years |
Lessee term of period to extend | 5 years |
Maximum | |
Lessee Lease Description [Line Items] | |
Remaining lease term | 5 years |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Fixed lease cost | $ 2,177 | $ 3,387 | $ 3,962 |
Variable lease cost | 598 | 1,002 | 166 |
Total operating lease cost | $ 2,775 | $ 4,389 | $ 4,128 |
Leases - Schedule of Other Info
Leases - Schedule of Other Information Related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating cash flows from operating leases | $ 2,227 | $ 4,039 | $ 3,357 |
Operating lease, ROU assets obtained in exchange for new lease liabilities | $ 1,153 | $ 764 | |
Operating leases, weighted average remaining lease term (years) | 3 years 2 months 8 days | 2 years 2 months 4 days | |
Operating leases, weighted average discount rate | 5.40% | 2% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments and Related Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Lease Payments | ||
2023 | $ 2,429 | |
2024 | 2,524 | |
2025 | 1,975 | |
2026 | 290 | |
2027 | 299 | |
Total lease payments | 7,517 | |
Less: imputed interest | (615) | |
Present value of lease liabilities: | 6,902 | |
Current portion of operating lease liabilities | (2,108) | $ (1,742) |
Noncurrent operating lease liabilities | $ 4,794 | $ 5,641 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 36 Months Ended | ||||||||||||
Oct. 01, 2022 NumberOfShare | Jul. 01, 2022 USD ($) | Dec. 31, 2022 USD ($) Segment | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) Segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 USD ($) | May 31, 2021 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Distribution of outstanding shares, percentage | 100% | |||||||||||||||
Stockholder of record received shares | 4 | |||||||||||||||
Number of each shares of common stock held on record date | NumberOfShare | 10 | |||||||||||||||
Number of principal businesses segment | Segment | 1 | 1 | ||||||||||||||
Separation costs | $ 16,900,000 | $ 6,900,000 | $ 4,800,000 | $ 42,300,000 | ||||||||||||
Total revenue | $ 103,290,000 | $ 89,296,000 | $ 107,815,000 | $ 138,532,000 | $ 89,705,000 | $ 101,647,000 | $ 101,846,000 | $ 98,014,000 | $ 438,933,000 | 391,212,000 | 515,919,000 | |||||
Operating income | 33,243,000 | 15,642,000 | $ 34,721,000 | $ 69,454,000 | $ 16,967,000 | $ 37,487,000 | $ 31,461,000 | $ 33,113,000 | 153,060,000 | 119,028,000 | 267,455,000 | |||||
Total net impact to stockholders' equity | (748,850,000) | |||||||||||||||
Goodwill impairment charges | 354,000,000 | $ 0 | $ 0 | |||||||||||||
Cash from financing activities | 182,900,000 | |||||||||||||||
Product Revenue | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Goodwill impairment charges | $ 354,000,000 | |||||||||||||||
Operating Expenses | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Separation costs | $ 13,700,000 | |||||||||||||||
MobiTV | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Purchase price | $ 17,400,000 | |||||||||||||||
Vewd Acquisition | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Total consideration | $ 102,900,000 | |||||||||||||||
Acquisition of business, cash | 52,900,000 | |||||||||||||||
Acquisition of business, debt | 50,000,000 | |||||||||||||||
Purchase price | $ 102,913,000 | |||||||||||||||
Total revenue | 2,500,000 | |||||||||||||||
Operating income | 10,100,000 | |||||||||||||||
Transaction related costs including transaction bonuses, legal and consultant fees | 6,100,000 | |||||||||||||||
Severance and retention costs | 2,100,000 | |||||||||||||||
Additional Paid-In Capital | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Total net impact to stockholders' equity | (767,263,000) | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Total net impact to stockholders' equity | 5,081,000 | |||||||||||||||
Noncontrolling Interest | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||
Total net impact to stockholders' equity | $ 13,332,000 |
Discontinued Operations - Summa
Discontinued Operations - Summary of Financial Results (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Operating expenses: | ||||||||||||
Net loss from discontinued operations, net of tax | $ (382,585) | $ (20,785) | $ (30,902) | $ (33,227) | $ (65,640) | $ (15,069) | $ (9,504) | |||||
Net loss attributable to discontinued operations | $ (436,978) | $ (126,896) | $ (96,010) | |||||||||
Xperi Inc. | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Revenue | 366,730 | [1] | 486,484 | 376,101 | ||||||||
Operating expenses: | ||||||||||||
Cost of revenue | 85,689 | [1] | 125,627 | 77,788 | ||||||||
Research and development | 158,708 | [1] | 194,869 | 161,630 | ||||||||
Selling, general and administrative | 123,764 | [1] | 137,745 | 109,188 | ||||||||
Depreciation expense | 15,702 | [1] | 21,777 | 16,298 | ||||||||
Amortization expense | 46,166 | [1] | 105,311 | 98,209 | ||||||||
Litigation expense | 921 | [1] | 6,371 | 2,815 | ||||||||
Goodwill impairment | [1] | 354,000 | ||||||||||
Total operating expenses | 784,950 | [1] | 591,700 | 465,928 | ||||||||
Operating loss | (418,220) | [1] | (105,216) | (89,827) | ||||||||
Interest expense | [1] | (754) | ||||||||||
Other income and expense, net | 62 | [1] | 1,870 | 1,242 | ||||||||
Loss before taxes | (418,912) | [1] | (103,346) | (88,585) | ||||||||
Provision for income taxes | 18,066 | [1] | 23,550 | 7,425 | ||||||||
Net loss from discontinued operations, net of tax | (436,978) | [1] | (126,896) | (96,010) | ||||||||
Less: net loss attributable to noncontrolling interest | (2,706) | [1] | (3,456) | (2,966) | ||||||||
Net loss attributable to discontinued operations | $ (434,272) | [1] | $ (123,440) | $ (93,044) | ||||||||
[1] Represents nine months of Xperi Inc.'s operations in 2022, as compared to a full year of Xperi Inc.'s operations in 2021 and 2020. |
Discontinued Operations - Aggre
Discontinued Operations - Aggregate Carrying Amounts of the Major Classes of Assets and Liabilities of Discontinued Operations (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 120,700 | $ 85,600 |
Total current assets of discontinued operations | 277,120 | |
Other long-term assets | 949,427 | |
Current liabilities: | ||
Total current liabilities of discontinued operations | 119,497 | |
Xperi Inc. | ||
Current assets: | ||
Cash and cash equivalents | 120,695 | |
Accounts receivable, net of allowance for credit losses | 79,494 | |
Unbilled contracts receivable, net | 50,962 | |
Other current assets | 25,969 | |
Total current assets of discontinued operations | 277,120 | |
Long-term unbilled contracts receivable | 3,825 | |
Property and equipment, net | 56,038 | |
Operating lease right-of-use assets | 61,858 | |
Intangible assets, net | 270,934 | |
Goodwill | 536,512 | |
Other long-term assets | 20,260 | |
Total assets of discontinued operations | 1,226,547 | |
Current liabilities: | ||
Accounts payable | 7,362 | |
Accrued legal fees | 2,210 | |
Accrued liabilities | 81,764 | |
Deferred revenue | 28,161 | |
Total current liabilities of discontinued operations | 119,497 | |
Deferred revenue, less current portion | 23,663 | |
Long-term deferred tax liabilities | 12,771 | |
Noncurrent operating lease liabilities | 49,017 | |
Other long-term liabilities | 3,606 | |
Total liabilities of discontinued operations | $ 208,554 |
Discontinued Operations - Sum_2
Discontinued Operations - Summary Selected Financial Information Related to Cash Flows (Details) - Xperi Inc. - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | [1] | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net cash from operating activities | $ (2,308) | $ (24,395) | $ (29,207) | |
Net cash from investing activities | $ (61,097) | $ (21,479) | $ 26,527 | |
[1] Represents nine months of Xperi Inc.'s operations in 2022, as compared to a full year of Xperi Inc.'s operations in 2021 and 2020. |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Purchase Price Allocation (Details) - USD ($) $ in Thousands | Jul. 01, 2022 | May 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Identifiable intangible assets: | |||||
Goodwill | $ 313,660 | $ 314,576 | $ 314,576 | ||
MobiTV | |||||
Business Acquisition [Line Items] | |||||
Other current assets | $ 390 | ||||
Property and equipment | 9,223 | ||||
Operating lease right-of-use assets | 1,186 | ||||
Identifiable intangible assets: | |||||
Total identifiable intangible assets | 8,260 | ||||
Goodwill | 4,059 | ||||
Other long-term assets | 115 | ||||
Accrued liabilities | (5,288) | ||||
Noncurrent operating lease liabilities | (545) | ||||
Total purchase price | $ 17,400 | ||||
MobiTV | Patents | |||||
Business Acquisition [Line Items] | |||||
Estimated Useful Life (years) | 10 years | ||||
Identifiable intangible assets: | |||||
Total identifiable intangible assets | $ 5,000 | ||||
MobiTV | Technology | |||||
Business Acquisition [Line Items] | |||||
Estimated Useful Life (years) | 6 years | ||||
Identifiable intangible assets: | |||||
Total identifiable intangible assets | $ 3,260 | ||||
Vewd Acquisition | |||||
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 | ||||
Current liabilities | (6,566) | ||||
Long-term deferred tax liabilities | (8,393) | ||||
Noncurrent operating lease liabilities | (1,094) | ||||
Other long-term liabilities | (307) | ||||
Total purchase price | $ 102,913 | ||||
Vewd Acquisition | Technology | |||||
Business Acquisition [Line Items] | |||||
Estimated Useful Life (years) | 7 years | ||||
Identifiable intangible assets: | |||||
Total identifiable intangible assets | $ 28,050 | ||||
Vewd Acquisition | Customer Relationships - Large | |||||
Business Acquisition [Line Items] | |||||
Estimated Useful Life (years) | 7 years | ||||
Identifiable intangible assets: | |||||
Total identifiable intangible assets | $ 4,900 | ||||
Vewd Acquisition | Customer Relationships - Small | |||||
Business Acquisition [Line Items] | |||||
Estimated Useful Life (years) | 4 years | ||||
Identifiable intangible assets: | |||||
Total identifiable intangible assets | $ 3,500 | ||||
Vewd Acquisition | Non-compete Agreements | |||||
Business Acquisition [Line Items] | |||||
Estimated Useful Life (years) | 2 years | ||||
Identifiable intangible assets: | |||||
Total identifiable intangible assets | $ 870 | ||||
Vewd Acquisition | Trade Name | |||||
Business Acquisition [Line Items] | |||||
Estimated Useful Life (years) | 5 years | ||||
Identifiable intangible assets: | |||||
Total identifiable intangible assets | $ 830 |
Discontinued Operations - Sch_2
Discontinued Operations - Schedule of Unaudited Pro Forma Financial Information (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
MobiTV | ||||
Business Acquisition [Line Items] | ||||
Net income (loss) attributable to the Company | $ (71,169) | $ 105,793 | ||
Vewd Acquisition | ||||
Business Acquisition [Line Items] | ||||
Net income (loss) attributable to the Company | $ (377,614) | $ (62,976) |
Business Combination - Addition
Business Combination - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Oct. 03, 2022 | Jun. 02, 2022 | Jun. 02, 2020 | |
Business Acquisition [Line Items] | ||||||||||||||
Effective date of merger | Jun. 01, 2020 | |||||||||||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||
Total revenue | $ 103,290 | $ 89,296 | $ 107,815 | $ 138,532 | $ 89,705 | $ 101,647 | $ 101,846 | $ 98,014 | $ 438,933 | $ 391,212 | $ 515,919 | |||
Operating income | $ 33,243 | $ 15,642 | $ 34,721 | $ 69,454 | $ 16,967 | $ 37,487 | $ 31,461 | $ 33,113 | $ 153,060 | 119,028 | 267,455 | |||
TiVo Merger | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Effective date of merger | Jun. 01, 2020 | |||||||||||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | ||||||||||||
Transaction related costs | 29,400 | |||||||||||||
Lease impairment charges | 2,400 | |||||||||||||
Post-merger severance and retention costs | $ 6,400 | 14,300 | ||||||||||||
Total revenue | 593,600 | |||||||||||||
Operating income | $ 263,800 |
Business Combination - Schedule
Business Combination - Schedule of Purchase Price Allocation Reflective of Measurement Period Adjustments (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 01, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Identifiable intangible assets: | ||||
Goodwill | $ 313,660 | $ 314,576 | $ 314,576 | |
Minimum | ||||
Identifiable intangible assets: | ||||
Estimated Useful Life (years) | 1 year | |||
Maximum | ||||
Identifiable intangible assets: | ||||
Estimated Useful Life (years) | 10 years | |||
Trademarks and tradenames | Minimum | ||||
Identifiable intangible assets: | ||||
Estimated Useful Life (years) | 4 years | |||
Trademarks and tradenames | Maximum | ||||
Identifiable intangible assets: | ||||
Estimated Useful Life (years) | 10 years | |||
TiVo Merger | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 117,424 | |||
Accounts receivable | 105,778 | |||
Unbilled contracts receivable | 69,058 | |||
Other current assets | 21,923 | |||
Long-term unbilled contracts receivable | 129 | |||
Property and equipment | 41,307 | |||
Operating lease right-of-use assets | 71,444 | |||
Identifiable intangible assets: | ||||
Total identifiable intangible assets | 878,000 | |||
Goodwill | 461,245 | |||
Other long-term assets | 43,559 | |||
Accounts payable | (13,258) | |||
Accrued legal fees | (5,619) | |||
Accrued liabilities | (79,601) | |||
Current portion of deferred revenue | (29,291) | |||
Current portion of long-term debt | (734,609) | |||
Deferred revenue, less current portion | (24,319) | |||
Long-term deferred tax liabilities | (27,528) | |||
Long-term debt | (48) | |||
Noncurrent operating lease liabilities | (59,291) | |||
Other long-term liabilities | (7,969) | |||
Total purchase price | 828,334 | |||
TiVo Merger | Patents | ||||
Identifiable intangible assets: | ||||
Total identifiable intangible assets | $ 457,400 | |||
Estimated Useful Life (years) | 10 years | |||
TiVo Merger | Customer contracts and related relationships | ||||
Identifiable intangible assets: | ||||
Total identifiable intangible assets | $ 358,200 | |||
TiVo Merger | Customer contracts and related relationships | Minimum | ||||
Identifiable intangible assets: | ||||
Estimated Useful Life (years) | 4 years | |||
TiVo Merger | Customer contracts and related relationships | Maximum | ||||
Identifiable intangible assets: | ||||
Estimated Useful Life (years) | 9 years | |||
TiVo Merger | Developed technology | ||||
Identifiable intangible assets: | ||||
Total identifiable intangible assets | $ 34,800 | |||
Estimated Useful Life (years) | 5 years | |||
TiVo Merger | Content database | ||||
Identifiable intangible assets: | ||||
Total identifiable intangible assets | $ 6,200 | |||
Estimated Useful Life (years) | 9 years | |||
TiVo Merger | Trademarks and tradenames | ||||
Identifiable intangible assets: | ||||
Total identifiable intangible assets | $ 21,400 |
Business Combination - Schedu_2
Business Combination - Schedule of Unaudited Pro Forma Financial Information (Details) - TiVo Merger $ in Thousands | 12 Months Ended |
Dec. 31, 2020 USD ($) | |
Business Acquisition [Line Items] | |
Revenue | $ 1,142,603 |
Net income (loss) attributable to the Company | $ 9,775 |
Goodwill and Identified Intan_3
Goodwill and Identified Intangible Assets - Summary of Changes to Carrying Value of Goodwill (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Balance beginning | $ 314,576 |
Goodwill adjustment related to Mergers in prior periods | (916) |
Balance ending | $ 313,660 |
Goodwill and Identified Intan_4
Goodwill and Identified Intangible Assets - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill impairment | $ 0 | ||
Impairment charges | $ 354,000,000 | $ 0 | $ 0 |
Goodwill and Identified Intan_5
Goodwill and Identified Intangible Assets - Identified Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Assets | $ 841,809 | $ 863,494 |
Finite-lived intangible assets, Accumulated Amortization | (409,333) | (316,512) |
Finite-lived intangible assets, Net | $ 432,476 | 546,982 |
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 | |
Acquired patents / core technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Assets | $ 645,928 | 667,613 |
Finite-lived intangible assets, Accumulated Amortization | (270,275) | (219,292) |
Finite-lived intangible assets, Net | $ 375,653 | 448,321 |
Acquired patents / core technology | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life (years) | 3 years | |
Acquired patents / core technology | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life (years) | 10 years | |
Existing technology / content database | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Assets | $ 38,681 | 38,681 |
Finite-lived intangible assets, Accumulated Amortization | (36,614) | (33,514) |
Finite-lived intangible assets, Net | $ 2,067 | 5,167 |
Existing technology / content database | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life (years) | 5 years | |
Existing technology / content database | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life (years) | 10 years | |
Customer contracts and related relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Assets | $ 155,900 | 155,900 |
Finite-lived intangible assets, Accumulated Amortization | (101,252) | (62,677) |
Finite-lived intangible assets, Net | $ 54,648 | 93,223 |
Customer contracts and related relationships | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life (years) | 3 years | |
Customer contracts and related relationships | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life (years) | 9 years | |
Trademarks/trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Assets | $ 1,300 | 1,300 |
Finite-lived intangible assets, Accumulated Amortization | (1,192) | (1,029) |
Finite-lived intangible assets, Net | $ 108 | $ 271 |
Trademarks/trade name | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life (years) | 4 years | |
Trademarks/trade name | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life (years) | 10 years |
Goodwill and Identified Intan_6
Goodwill and Identified Intangible Assets - Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 | $ 93,540 | |
2024 | 68,809 | |
2025 | 52,731 | |
2026 | 52,597 | |
2027 | 52,246 | |
Thereafter | 112,553 | |
Finite-lived intangible assets, Net | $ 432,476 | $ 546,982 |
Debt - Schedule of Outstanding
Debt - Schedule of Outstanding Amounts of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Line Of Credit Facility [Line Items] | ||
Long-term debt, Gross | $ 749,250 | |
Unamortized debt discount and issuance costs | (19,857) | $ (24,263) |
Long-term debt | 729,393 | 765,487 |
Less: current portion, net of debt discount and issuance costs | (109,813) | (36,095) |
Long-term debt, net | 619,580 | 729,392 |
2020 Term B Loan Facility | ||
Line Of Credit Facility [Line Items] | ||
Unamortized debt discount and issuance costs | (4,200) | |
Refinanced Term B Loans | ||
Line Of Credit Facility [Line Items] | ||
Long-term debt, Gross | 749,250 | $ 789,750 |
2021 Convertible Notes | ||
Line Of Credit Facility [Line Items] | ||
Unamortized debt discount and issuance costs | $ (19,900) |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jun. 08, 2021 | Jun. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Line Of Credit Facility [Line Items] | |||||
Unamortized debt discount and issuance costs | $ 19,857 | $ 24,263 | |||
Voluntary prepayment against the term loan | 40,500 | 84,048 | $ 520,250 | ||
Loss on debt extinguishment | 0 | 8,012 | 8,300 | ||
Borrowings | 729,393 | 765,487 | |||
Interest expense | 45,335 | 38,973 | 37,873 | ||
Reclassification of current portion of long-term debt | $ 73,500 | ||||
2020 Term B Loan Facility | |||||
Line Of Credit Facility [Line Items] | |||||
Loan facility, term | 5 years | ||||
Borrowing capacity | $ 1,050,000 | ||||
Unamortized debt discount and issuance costs | 4,200 | ||||
Loss on debt extinguishment | $ 8,000 | ||||
Debt issuance cost | 6,800 | ||||
Debt issuance remaining third party fees | $ 2,600 | ||||
Refinanced Term B Loans | |||||
Line Of Credit Facility [Line Items] | |||||
Borrowing capacity | $ 810,000 | ||||
Debt instrument, maturity date | Jun. 08, 2028 | ||||
Voluntary prepayment against the term loan | $ 50,600 | ||||
Debt instrument, prepayment premium | 1% | ||||
Interest rate | 7.60% | ||||
Interest expense | $ 45,300 | 39,000 | 37,900 | ||
Amortized costs | $ 4,400 | $ 6,400 | $ 6,300 | ||
Refinanced Term B Loans | Base Rate | |||||
Line Of Credit Facility [Line Items] | |||||
Debt instrument, basis spread on variable rate | 2.50% | ||||
Refinanced Term B Loans | Eurodollar, London Interbank Offered Rate (LIBOR) | |||||
Line Of Credit Facility [Line Items] | |||||
Debt instrument, basis spread on variable rate | 3.50% | ||||
2021 Convertible Notes | |||||
Line Of Credit Facility [Line Items] | |||||
Unamortized debt discount and issuance costs | $ 19,900 |
Debt - Summary of Future Minimu
Debt - Summary of Future Minimum Principal Payments for Long-term Debt, Excluding Any Additional Payment Required by the Excess Cash Flow Provision (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Debt Disclosure [Abstract] | |
2023 | $ 40,500 |
2024 | 40,500 |
2025 | 40,500 |
2026 | 40,500 |
2027 | 40,500 |
Thereafter | 546,750 |
Total | $ 749,250 |
Net Income (Loss) Per Share - C
Net Income (Loss) Per Share - Computation of Basic and Diluted Net Income (Loss) Per Share (Details) - shares shares in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Denominator: | |||||||||||
Weighted average common shares outstanding | 104,336 | 104,735 | 82,840 | ||||||||
Total common shares-basic (in shares) | 105,135 | 104,510 | 104,001 | 103,679 | 104,249 | 104,849 | 104,906 | 104,940 | 104,336 | 104,735 | 82,840 |
Effect of dilutive securities: | |||||||||||
Options (in shares) | 0 | 17 | 1 | ||||||||
Restricted stock awards and units (in shares) | 3,244 | 2,513 | 1,015 | ||||||||
Total common shares-diluted (in shares) | 113,392 | 105,850 | 105,160 | 105,332 | 105,915 | 106,910 | 107,267 | 107,776 | 107,580 | 107,265 | 83,856 |
Net Income (Loss) Per Share - A
Net Income (Loss) Per Share - Additional Information (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Shares of common stock excluded from the computation of net income (loss) per share | 1.8 | 2.8 | 2.1 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) | 12 Months Ended | 19 Months Ended | 31 Months Ended | |||||
Apr. 29, 2022 shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Apr. 22, 2021 USD ($) | Jun. 12, 2020 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Dividends declared, per share | $ / shares | $ 0.20 | $ 0.20 | $ 0.50 | |||||
Stock repurchase program, authorized amount | $ | $ 100,000,000 | $ 150,000,000 | ||||||
Treasury stock, total repurchase during period (in shares) | 9,000,000 | 10,000,000 | ||||||
Treasury stock, average price of share repurchased (in dollars per share) | $ / shares | $ 17.29 | $ 17.24 | ||||||
Treasury stock, total cost of repurchased stock | $ | $ 17,260,000 | $ 84,888,000 | $ 70,081,000 | $ 155,000,000 | $ 172,200,000 | |||
Stock repurchase program, remaining amount available for repurchase | $ | $ 77,800,000 | $ 77,800,000 | ||||||
Withholding taxes related to net share settlement of restricted awards (in shares) | 1,000,000 | 800,000 | 700,000 | |||||
Tax withholding on restricted stock awards | $ | $ 15,941,000 | $ 15,916,000 | $ 10,508,000 | |||||
Employee Stock Purchase Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares reserved for grant (in shares) | 5,500,000 | 5,500,000 | ||||||
Expiration period | 24 months | |||||||
Additional shares reserved for issuance | 6,000,000 | |||||||
Maximum employee subscription rate | 100% | 100% | ||||||
Purchase price of common stock, percent | 85% | |||||||
Maximum employee subscription amount | $ | $ 25,000 | $ 25,000 | ||||||
Rolling expiration period | 24 months | |||||||
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% | |||||||
2020 EIP | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Expiration period | 10 years | |||||||
Vesting period | 4 years | |||||||
Share based compensation full value awards counted against shares available for issuance ratio | 1.5 | |||||||
Number of shares reserved for issuance | 16,800,000 | 16,800,000 | ||||||
Additional shares reserved for issuance | 8,800,000 | |||||||
2020 EIP | Time-based Awards | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 4 years | |||||||
Assumed Plans | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Expiration period | 7 years | |||||||
Vesting period | 4 years | |||||||
Assumed Plans | Restricted Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 4 years | |||||||
2020 EIP and Assumed Plans | Employee Stock Options | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares reserved for grant (in shares) | 5,400,000 | 5,400,000 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Number of Shares Subject to Options | |||
Number of Shares, Beginning balance (shares) | 447 | 637 | 605 |
Number of Shares, Options assumed (shares) | 175 | ||
Number of Shares, Options exercised (shares) | (10) | (39) | (7) |
Number of Shares, Options canceled / forfeited / expired (shares) | (73) | (151) | (136) |
Number of Shares, Ending balance (shares) | 364 | 447 | 637 |
Vested and expected to vest, number of shares subject to options | 364 | ||
Exercisable, number of shares subject to options | 364 | ||
Weighted Average Exercise Price Per Share | |||
Weighted Average Exercise Price Per Share, Beginning balance (USD per share) | $ 25.22 | $ 29.59 | $ 26.68 |
Weighted Average Exercise Price Per Share, Options assumed (USD per share) | 50.96 | ||
Weighted Average Exercise Price Per Share, Options exercised (USD per share) | 13.96 | 20.03 | 13.47 |
Weighted Average Exercise Price Per Share, Options canceled / forfeited / expired (USD per share) | $ 37.24 | 44.99 | 44.59 |
Weighted Average Exercise Price Per Share, Ending balance (USD per share) | $ 25.22 | $ 29.59 | |
Weighted Average Remaining Contractual Life and Aggregate Intrinsic Value | |||
Weighted Average Remaining Contractual Life (in years) | 1 year 10 months 17 days | ||
Vested and expected to vest, weighted average remaining contractual life (in years) | 1 year 10 months 17 days | ||
Exercisable, weighted average remaining contractual life (in years) | 1 year 10 months 17 days | ||
Aggregate Intrinsic Value | $ 6,590 | ||
Vested and expected to vest, aggregate intrinsic value | 6,590 | ||
Exercisable, aggregate intrinsic value | $ 6,590 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Stock Options Outstanding and Exercisable (Details) - $8.99 - $28.79 shares in Thousands | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Low End | $ 8.99 |
Range of Exercise Prices, Upper End | $ 28.79 |
Number Outstanding (in thousands) | shares | 364 |
Weighted Average Remaining Contractual Life (in years) | 1 year 10 months 17 days |
Weighted Average Exercise Price per Share | $ 13.06 |
Number Exercisable (in thousands) | shares | 364 |
Weighted Average Exercise Price per Share | $ 13.06 |
Stockholders' Equity - Summar_3
Stockholders' Equity - Summary of Restricted Stock Awards (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Time-Based Restricted Stock Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Restricted stock awards, beginning balance (shares) | 6,815,000 | 5,662,000 | 2,371,000 |
Restricted stock awards, granted (shares) | 5,417,000 | 3,959,000 | 3,331,000 |
Restricted stock awards, assumed (shares) | 2,185,000 | ||
Restricted stock awards, converted (shares) | 11,000 | ||
Restricted stock awards, vested / earned (shares) | (2,281,000) | (1,916,000) | (1,676,000) |
Restricted stock awards, canceled / forfeited (shares) | (903,000) | (890,000) | (560,000) |
Restricted stock awards, ending balance (shares) | 9,048,000 | 6,815,000 | 5,662,000 |
Performance-Based Restricted Stock Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Restricted stock awards, beginning balance (shares) | 1,525,000 | 1,061,000 | 554,000 |
Restricted stock awards, granted (shares) | 514,000 | 650,000 | 994,000 |
Restricted stock awards, assumed (shares) | 253,000 | ||
Restricted stock awards, converted (shares) | (11,000) | ||
Restricted stock awards, vested / earned (shares) | (340,000) | (87,000) | (487,000) |
Restricted stock awards, canceled / forfeited (shares) | (174,000) | (99,000) | (242,000) |
Restricted stock awards, ending balance (shares) | 1,525,000 | 1,525,000 | 1,061,000 |
Restricted Stock Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Restricted stock awards, beginning balance (shares) | 8,340,000 | 6,723,000 | 2,925,000 |
Restricted stock awards, granted (shares) | 5,931,000 | 4,609,000 | 4,325,000 |
Restricted stock awards, assumed (shares) | 2,438,000 | ||
Restricted stock awards, vested / earned (shares) | (2,621,000) | (2,003,000) | (2,163,000) |
Restricted stock awards, canceled / forfeited (shares) | (1,077,000) | (989,000) | (802,000) |
Restricted stock awards, ending balance (shares) | 10,573,000 | 8,340,000 | 6,723,000 |
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 and units, beginning balance (USD per share) | $ 19.61 | $ 16.63 | $ 25.99 |
Weighted average grant date fair value per share of restricted stock and units, granted (USD per share) | 12.56 | 22.77 | $ 14.64 |
Weighted average grant date fair value per share of restricted stock and units, assumed (usd per share) | 13.99 | ||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Converted In Period Weighted Average Grant Date Fair Value | $ 22.45 | ||
Weighted average grant date fair value per share of restricted stock and units, vested / earned (USD per share) | 18.59 | 17.79 | 21.12 |
Weighted average grant date fair value of restricted stock and units, canceled / forfeited (USD per share) | 18.29 | 17.75 | 19.96 |
Weighted average grant date fair value per share of restricted stock and units, ending balance (USD per share) | $ 10.48 | $ 19.61 | $ 16.63 |
Stock-Based Compensation Expe_3
Stock-Based Compensation Expense - Effect of Recording Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 22,845 | $ 25,628 | $ 20,143 |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 1,644 | 1,895 | 2,189 |
Selling, general and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 21,201 | $ 23,733 | $ 17,954 |
Stock-Based Compensation Expe_4
Stock-Based Compensation Expense - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 01, 2022 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total intrinsic value of options exercised | $ 20 | $ 100 | $ 100 | ||
Unrecognized stock-based compensation balance after estimated forfeitures related to unvested stock options | $ 0 | ||||
Estimated weighted average period | 2 years 6 months | ||||
Number of shares, options granted | 0 | 0 | 0 | ||
Issuance of common stock in connection with employee common stock purchase plan (in shares) | 1,301,000 | 1,238,000 | 355,000 | ||
Incremental stock-based compensation | $ 400 | ||||
Performance Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected life (in years) | 3 years | 3 years | 3 years | ||
Black Scholes Option Pricing Model | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected life (in years) | 2 years | ||||
Restricted Stock and Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock awards, total fair value | $ 48,700 | $ 35,600 | $ 45,700 | ||
Unrecognized stock-based compensation balance after estimated forfeitures related to unvested stock options | $ 25,500 | ||||
Separation Agreement | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, accelerated vesting | 372,244 | ||||
Incremental stock-based compensation | $ 2,200 |
Stock-Based Compensation Expe_5
Stock-Based Compensation Expense - Schedule of Assumptions Used to Value Options Granted (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
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 | 2 years | 2 years |
Employee stock purchase plan | Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract] | |||
Risk-free interest rate | 1.30% | 0.10% | 0.10% |
Dividend yield | 1.10% | 0.90% | 1.40% |
Expected volatility | 48.50% | 52% | 45.80% |
Employee stock purchase plan | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract] | |||
Risk-free interest rate | 4.30% | 0.20% | 1.40% |
Dividend yield | 2.30% | 1.20% | 4% |
Expected volatility | 69% | 52% | 57.50% |
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 | 3 years |
Risk-free interest rate | 2.80% | 0.30% | 0.20% |
Dividend yield | 1.20% | 1% | 1.40% |
Expected volatility | 47.90% | 51.30% | |
Performance Stock Units | Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract] | |||
Expected volatility | 37.50% | ||
Performance Stock Units | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract] | |||
Expected volatility | 40.90% |
Income Taxes - Components of In
Income Taxes - Components of Income (loss) Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||||||||||
U.S. | $ 110,796 | $ 71,485 | $ 222,930 | ||||||||
Foreign | (1,024) | 1,326 | 1,564 | ||||||||
Income from continuing operations before income taxes | $ 18,640 | $ 4,058 | $ 25,712 | $ 61,362 | $ 7,354 | $ 29,249 | $ 13,564 | $ 22,644 | $ 109,772 | $ 72,811 | $ 224,494 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | |||||||||||
U.S. federal | $ (5,156) | $ (5,578) | $ (20,157) | ||||||||
Foreign | 9,937 | 14,045 | 24,107 | ||||||||
State and local | 8,636 | 4,201 | 8,083 | ||||||||
Total current | 13,417 | 12,668 | 12,033 | ||||||||
Deferred: | |||||||||||
U.S. federal | (36,363) | (576) | (25,322) | ||||||||
Foreign | 4,730 | (4,935) | |||||||||
State and local | (10,404) | (2,329) | (2,023) | ||||||||
Total deferred | (42,037) | (7,840) | (27,345) | ||||||||
Provision for (benefit from) income taxes | $ (55,090) | $ 10,401 | $ 10,552 | $ 5,517 | $ (11,314) | $ 8,676 | $ (387) | $ 7,853 | $ (28,620) | $ 4,828 | $ (15,312) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets | ||
Net operating losses | $ 63,702 | $ 74,463 |
Research tax credits | 78,340 | 80,468 |
Foreign tax credits | 29,077 | 69,637 |
Expenses not currently deductible | 18,823 | 14,434 |
Fixed and intangible assets | 207 | |
Deferred revenue | 8,428 | 6,385 |
Capitalized research expenses | 38,806 | 34,963 |
Lease liability | 1,598 | 1,715 |
Gross deferred tax assets | 238,774 | 282,272 |
Valuation allowance | (120,508) | (178,731) |
Net deferred tax assets | 118,266 | 103,541 |
Deferred tax liabilities | ||
Revenue recognition | (4,288) | (1,445) |
Operating leases | (1,388) | (1,508) |
Acquired intangible assets | (74,075) | (101,679) |
Other | (3,237) | (4,076) |
Net deferred tax assets | $ 35,278 | |
Net deferred tax liabilities | $ (5,167) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Contingency [Line Items] | ||||
Valuation allowance | $ 120,508,000 | $ 178,731,000 | ||
Valuation allowance change in amount | (58,200,000) | |||
Income tax receivable, noncurrent | 113,679,000 | 118,059,000 | ||
Long-term income tax payable | 87,302,000 | 91,445,000 | ||
Unrecognized tax benefits | 229,492,000 | 230,076,000 | $ 225,279,000 | $ 100,037,000 |
Unrecognized tax benefits that would impact the effective income tax rate | 194,300,000 | 97,300,000 | ||
Unrecognized tax benefits, period decrease | (8,500,000) | |||
Unrecognized tax benefits, income tax penalties and interest expense | 0 | 200,000 | ||
Accrued interest and tax penalties related to unrecognized tax benefits | 2,800,000 | 2,800,000 | ||
South Korea and Other Business Factors | ||||
Income Tax Contingency [Line Items] | ||||
Valuation allowance change in amount | (42,200,000) | (39,900,000) | ||
Income tax receivable, noncurrent | 113,700,000 | 118,100,000 | ||
Long-term income tax payable | 63,600,000 | $ 63,100,000 | ||
Federal | ||||
Income Tax Contingency [Line Items] | ||||
Operating loss carryforwards | 2,900,000 | |||
Federal | Research Tax Credit Carryforward | ||||
Income Tax Contingency [Line Items] | ||||
Tax credit carryforward | $ 78,400,000 | |||
Tax credit carryforward expiration start year | 2023 | |||
Tax credit carryforward expiration end year | 2041 | |||
State | ||||
Income Tax Contingency [Line Items] | ||||
Operating loss carryforwards | $ 842,000,000 | |||
Operating loss carryforwards, begin to expire year | 2023 | |||
Operating loss carryforwards, expiration end year | 2041 | |||
State | Research Tax Credit Carryforward | ||||
Income Tax Contingency [Line Items] | ||||
Tax credit carryforward | $ 76,100,000 | |||
Foreign | ||||
Income Tax Contingency [Line Items] | ||||
Valuation allowance | 86,100,000 | |||
Tax credit carryforward | $ 94,200,000 | |||
Tax credit carryforward expiration start year | 2023 | |||
Tax credit carryforward expiration end year | 2031 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory U.S. Federal Income Tax Rate to Effective Tax Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||||||||||
U.S. federal statutory rate | $ 23,052 | $ 15,291 | $ 47,144 | ||||||||
State, net of federal benefit | (2,712) | (617) | 2,094 | ||||||||
Stock-based compensation expense | 235 | (129) | 1,222 | ||||||||
Executive compensation limitation | 1,236 | 2,430 | 235 | ||||||||
Research tax credit | (2,705) | 353 | 694 | ||||||||
Foreign withholding tax | 5,969 | 1,575 | 1,250 | ||||||||
Transaction costs | 1,308 | 145 | 1,996 | ||||||||
Foreign tax rate differential | 4,960 | (3,249) | (288) | ||||||||
Foreign tax credit | 10,525 | 10,714 | (2,603) | ||||||||
Change in valuation allowance | (78,699) | (33,526) | (63,346) | ||||||||
U.S. tax reform | 541 | 192 | 89 | ||||||||
Unrecognized tax benefits | (3,318) | 4,548 | 6,424 | ||||||||
Change in estimates | (3,478) | (85) | (1,217) | ||||||||
Foreign exchange and interest | 4,516 | 6,956 | (7,438) | ||||||||
Divestitures | 15,396 | ||||||||||
Foreign derived intangible income | (4,697) | ||||||||||
Others | (749) | 230 | (1,568) | ||||||||
Provision for (benefit from) income taxes | $ (55,090) | $ 10,401 | $ 10,552 | $ 5,517 | $ (11,314) | $ 8,676 | $ (387) | $ 7,853 | $ (28,620) | $ 4,828 | $ (15,312) |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Total unrecognized tax benefits at January 1 | $ 230,076 | $ 225,279 | $ 100,037 |
Increases due to the Mergers | 102,582 | ||
Increases for tax positions related to the current year | 3,872 | 6,876 | 21,199 |
Increases for tax positions related to prior years | 229 | 5,195 | 3,245 |
Decreases for tax positions related to prior years | (4,685) | (7,274) | (1,784) |
Total unrecognized tax benefits at December 31 | $ 229,492 | $ 230,076 | $ 225,279 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Oct. 01, 2022 | Sep. 30, 2022 | |
Commitments And Contingencies Disclosure [Line Items] | |||
Total purchase commitments | $ 0.7 | ||
Purchase commitments due in 2023 | 0.4 | ||
Purchase commitments due in 2024 | 0.3 | ||
Accrued estimated expense reimbursement | 2.5 | $ 2.6 | |
Guarantee liability | 20.5 | ||
Guarantee liability current portion | 2.4 | ||
Maximum potential amount of future payments subject to guarantee | $ 7.5 | ||
Guarantor obligations potential amount of future payments start year | 2023 | ||
Guarantor obligations potential amount of future payments end year | 2031 | ||
Cross Business Agreement | |||
Commitments And Contingencies Disclosure [Line Items] | |||
Guarantee liability | $ 19.7 |
Segment and Geographic Inform_3
Segment and Geographic Information - Additional Information (Details) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 Segment | Dec. 31, 2022 Customer Segment | Dec. 31, 2021 Customer | Dec. 31, 2020 Customer | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Number of principal businesses segment | Segment | 1 | 1 | ||
Number of customers more than 10% of revenue | Customer | 3 | 2 | 2 | |
Accounts Receivable | Credit Concentration Risk | Customer One | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage (or more) | 36% | 28% | ||
Accounts Receivable | Credit Concentration Risk | Customer Two | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage (or more) | 29% | 20% | ||
Accounts Receivable | Credit Concentration Risk | Customer Three | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage (or more) | 10% |
Segment and Geographic Inform_4
Segment and Geographic Information - Schedule of Geographic Revenue Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 438,933 | $ 391,212 | $ 515,919 |
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] | |||
Revenues | $ 366,527 | $ 299,253 | $ 365,819 |
U.S. | Total Revenue | Geographic Concentration Risk | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage (or more) | 84% | 76% | 71% |
Japan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 13,830 | $ 18,025 | $ 6,106 |
Japan | Total Revenue | Geographic Concentration Risk | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage (or more) | 3% | 5% | 1% |
South Korea | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 20,539 | $ 28,082 | $ 124,867 |
South Korea | Total Revenue | Geographic Concentration Risk | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage (or more) | 5% | 7% | 24% |
Europe and Middle East | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 6,058 | $ 8,201 | $ 2,348 |
Europe and Middle East | Total Revenue | Geographic Concentration Risk | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage (or more) | 1% | 2% | 1% |
Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 31,979 | $ 37,651 | $ 16,779 |
Other | Total Revenue | Geographic Concentration Risk | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage (or more) | 7% | 10% | 3% |
Segment and Geographic Inform_5
Segment and Geographic Information - Schedule of Summary of Customers Comprising 10% or More of Total Revenues (Details) - Sales Revenue Net - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Customer A | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage (or more) | 16% | 18% | |
Customer B | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage (or more) | 13% | ||
Customer C | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage (or more) | 11% | 14% | 46% |
Customer D | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage (or more) | 14% |
Benefit Plan - Additional Infor
Benefit Plan - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Company contributions to 401(k) Plan | $ 1.3 | $ 1 | $ 1.1 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - $ / shares | 12 Months Ended | |||
Feb. 09, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Subsequent Event [Line Items] | ||||
Dividends payable per share | $ 0.20 | $ 0.20 | $ 0.50 | |
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Dividends declaration date | Feb. 09, 2023 | |||
Dividends payable per share | $ 0.05 | |||
Dividends payable date | Mar. 29, 2023 | |||
Dividends record date | Mar. 15, 2023 |
Quarterly Results Of Operatio_3
Quarterly Results Of Operations (Unaudited) - Summary of Quarterly Financial Data (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Selected Quarterly Financial Information [Abstract] | |||||||||||
Revenue | $ 103,290 | $ 89,296 | $ 107,815 | $ 138,532 | $ 89,705 | $ 101,647 | $ 101,846 | $ 98,014 | $ 438,933 | $ 391,212 | $ 515,919 |
Total operating expenses | 70,047 | 73,654 | 73,094 | 69,078 | 72,738 | 64,160 | 70,385 | 64,901 | 285,873 | 272,184 | 248,464 |
Operating income from continuing operations | 33,243 | 15,642 | 34,721 | 69,454 | 16,967 | 37,487 | 31,461 | 33,113 | 153,060 | 119,028 | 267,455 |
Income from continuing operations before income taxes | 18,640 | 4,058 | 25,712 | 61,362 | 7,354 | 29,249 | 13,564 | 22,644 | 109,772 | 72,811 | 224,494 |
Provision for (benefit from) income taxes | (55,090) | 10,401 | 10,552 | 5,517 | (11,314) | 8,676 | (387) | 7,853 | (28,620) | 4,828 | (15,312) |
Net income from continuing operations | 73,730 | (6,343) | 15,160 | 55,845 | 18,668 | 20,573 | 13,951 | 14,791 | 138,392 | 67,983 | 239,806 |
Net loss attributable to discontinued operations, net of tax | (382,585) | (20,785) | (30,902) | (33,227) | (65,640) | (15,069) | (9,504) | ||||
Net income (loss) attributable to the Company | $ 73,730 | $ (388,928) | $ (5,625) | $ 24,943 | $ (14,559) | $ (45,067) | $ (1,118) | $ 5,287 | $ (295,880) | $ (55,457) | $ 146,762 |
Basic | |||||||||||
Continuing operations | $ 0.70 | $ (0.06) | $ 0.15 | $ 0.54 | $ 0.18 | $ 0.20 | $ 0.13 | $ 0.14 | $ 1.33 | $ 0.65 | $ 2.89 |
Discontinued operations | (3.66) | (0.20) | (0.30) | (0.32) | (0.63) | (0.14) | (0.09) | (4.16) | (1.18) | (1.12) | |
Net income (loss) | 0.70 | (3.72) | (0.05) | 0.24 | (0.14) | (0.43) | (0.01) | 0.05 | (2.83) | (0.53) | 1.77 |
Diluted | |||||||||||
Continuing operations | 0.65 | (0.06) | 0.14 | 0.53 | 0.18 | 0.19 | 0.13 | 0.14 | 1.29 | 0.63 | 2.86 |
Discontinued operations | (3.61) | (0.20) | (0.29) | (0.31) | (0.61) | (0.14) | (0.09) | (4.04) | (1.15) | (1.11) | |
Net income (loss) | $ 0.65 | $ (3.67) | $ (0.06) | $ 0.24 | $ (0.13) | $ (0.42) | $ (0.01) | $ 0.05 | $ (2.75) | $ (0.52) | $ 1.75 |
Weighted average number of shares-basic | 105,135 | 104,510 | 104,001 | 103,679 | 104,249 | 104,849 | 104,906 | 104,940 | 104,336 | 104,735 | 82,840 |
Weighted average number of shares-diluted | 113,392 | 105,850 | 105,160 | 105,332 | 105,915 | 106,910 | 107,267 | 107,776 | 107,580 | 107,265 | 83,856 |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Valuation Allowance of Deferred Tax Assets | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 178,731 | $ 231,294 | $ 37,243 |
Charged (Credited) to Expenses | (58,223) | (52,563) | (63,346) |
Charged (Credited) to Other Accounts | 257,397 | ||
Balance at End of Year | 120,508 | 178,731 | 231,294 |
Allowance for Credit Losses of Accounts Receivable and Unbilled Contract Receivables | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 1,108 | 3,031 | 2,056 |
Charged (Credited) to Expenses | (395) | (1,923) | 975 |
Balance at End of Year | $ 713 | $ 1,108 | $ 3,031 |