Vizio Holding (VZIO) 10-Q 12 May 22 2022 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2022	May 06, 2022
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
Document Transition Report	false
Entity File Number	001-40271
Entity Registrant Name	VIZIO HOLDING CORP.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	85-4185335
Entity Address, Address Line One	39 Tesla
Entity Address, City or Town	Irvine
Entity Address, State or Province	CA
City Area Code	949
Local Phone Number	428-2525
Entity Address, Postal Zip Code	92618
Title of 12(b) Security	Class A common stock, par value $0.0001 per share
Trading Symbol	VZIO
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001835591
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Amendment Flag	false
Class A common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		115,805,280
Class B common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		76,814,638
Class C common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		0

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 309.7	$ 331.6
Accounts receivable, net	321	375.1
Other receivables due from related parties	2.1	5.1
Inventories	12.2	11.9
Income tax receivable	29.2	26.2
Other current assets	84.6	84.8
Total current assets	758.8	834.7
Property, equipment and software, net	13.6	10.3
Goodwill, net	44.8	44.8
Deferred income taxes	30.4	30.4
Other assets	19.2	15.6
Total assets	866.8	935.8
Current liabilities:
Accounts payable due to related parties	153.8	224.8
Accounts payable	144.9	118.9
Accrued expenses	169.7	185.8
Accrued royalties	47.2	56.8
Other current liabilities	5.4	4.8
Total current liabilities	521	591.1
Other long-term liabilities	16.4	14.1
Total liabilities	537.4	605.2
Commitments and contingencies
Stockholders’ equity:
Preferred stock	0	0
Common stock	0	0
Additional paid-in capital	333.1	323.3
Accumulated other comprehensive loss	(0.2)	(0.2)
Retained earnings (accumulated deficit)	(3.5)	7.5
Total stockholders’ equity	329.4	330.6
Total liabilities and stockholders' equity	$ 866.8	$ 935.8

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2022	Dec. 31, 2021
Stockholders’ equity:
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, authorized (in shares)	100,000,000	100,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, authorized (in shares)	1,350,000,000	1,350,000,000
Class A common stock
Stockholders’ equity:
Common stock, issued (in shares)	119,600,000	116,400,000
Common stock, outstanding (in shares)	115,800,000	113,200,000
Class B common stock
Stockholders’ equity:
Common stock, issued (in shares)	76,800,000	76,800,000
Common stock, outstanding (in shares)	76,800,000	76,800,000
Class C common stock
Stockholders’ equity:
Common stock, issued (in shares)	0	0
Common stock, outstanding (in shares)	0	0

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Net revenue:
Total net revenue	$ 485.5	$ 505.7
Cost of goods sold:
Total cost of goods sold	412.7	419
Gross profit:
Total gross profit	72.8	86.7
Operating expenses:
Selling, general and administrative	62.4	58.1
Marketing	13.3	4.4
Research and development	9.2	9.8
Depreciation and amortization	0.8	0.6
Total operating expenses	85.7	72.9
Income (loss) from operations	(12.9)	13.8
Interest income, net	0	0.1
Other income (expense), net	0	(0.2)
Total non-operating income (expense), net	0	(0.1)
Income (loss) before income taxes	(12.9)	13.7
Provision for (benefit from) income taxes	(1.9)	10.3
Net (loss) income	$ (11)	$ 3.4
Net (loss) income attributable to Class A and Class B stockholders:
Basic (in dollars per share)	$ (0.06)	$ 0.02
Diluted (in dollars per share)	$ (0.06)	$ 0.02
Weighted-average Class A and Class B common shares outstanding:
Basic (in shares)	191.2	145.7
Diluted (in shares)	191.2	157.2
Device
Net revenue:
Total net revenue	$ 382.9	$ 453.5
Cost of goods sold:
Total cost of goods sold	375	405.2
Gross profit:
Total gross profit	7.9	48.3
Platform+
Net revenue:
Total net revenue	102.6	52.2
Cost of goods sold:
Total cost of goods sold	37.7	13.8
Gross profit:
Total gross profit	$ 64.9	$ 38.4

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Other comprehensive (loss) income
Net (loss) income	$ (11)	$ 3.4
Foreign currency translation adjustments	0	(1)
Comprehensive (loss) income	$ (11)	$ 2.4

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions	Total	Class A common stock	Class B common stock	Preferred Stock	[2]	Preferred StockSeries A Convertible	Common StockClass A common stock		Common StockClass B common stock		Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Retained Earnings (Accumulated Deficit)
Beginning balance (in shares) at Dec. 31, 2020						0.1	150.8	[1]	0	[1]
Beginning balance at Dec. 31, 2020	$ 149.2					$ 2.6					$ 98.9	$ 0.9	$ 46.8
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation expense	26										26
Shares issued pursuant to incentive award plans, net of withholding taxes (in shares)							0
Shares issued pursuant to incentive award plans, net of withholding taxes	(9.1)										(9.1)
Payment of accumulated preferred stock dividends	(0.6)					$ (0.6)
Conversion of Series A preferred stock upon IPO (in shares)						(0.1)	30.3
Conversion of Series A preferred stock upon IPO	0					$ (2)					2
Exchange of Class A shares for Class B							(98.3)		98.3
Sale of common stock in IPO, net of $13.7 of underwriting fees and other offering costs (in shares)							7.6
Sale of common stock in IPO, net of $13.7 of underwriting fees and other offering costs	145										145
Forfeit of RSA awards upon IPO (in shares)							(5)
Foreign currency translation	(1)											(1)
Net (loss) income	3.4	$ 3.3	$ 0.1										3.4
Ending balance (in shares) at Mar. 31, 2021						0	85.4	[1]	98.3	[1]
Ending balance at Mar. 31, 2021	312.9					$ 0					262.8	(0.1)	50.2
Beginning balance (in shares) at Dec. 31, 2021				0			113.2	[1],[3]	76.8	[1],[3]
Beginning balance at Dec. 31, 2021	330.6			$ 0							323.3	(0.2)	7.5
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation expense	16.5										16.5
Shares issued pursuant to incentive award plans, net of withholding taxes (in shares)							2.6
Shares issued pursuant to incentive award plans, net of withholding taxes	(6.7)										(6.7)
Foreign currency translation	0
Net (loss) income	(11)	$ (6.6)	$ (4.4)										(11)
Ending balance (in shares) at Mar. 31, 2022				0			115.8	[1],[3]	76.8	[1],[3]
Ending balance at Mar. 31, 2022	$ 329.4			$ 0							$ 333.1	$ (0.2)	$ (3.5)
[1]	There were no shares of Class C common stock issued or outstanding in any of the periods presented.
[2]	There were no shares of Preferred Stock outstanding as of March 31, 2022 and December 31, 2021.
[3]	As of March 31, 2022 and December 31, 2021, the value on common stock outstanding was $19 thousand and $19 thousand, respectively, and are not shown.

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands, shares in Millions		3 Months Ended
		Mar. 31, 2021	Mar. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Stockholders' Equity [Abstract]
Stock issuance costs		$ 13,700
Common Stock
Par value on common stock outstanding			$ 19	$ 19
Common Stock | Class C common stock
Shares outstanding (in shares)		0	0	0	0
Preferred Stock
Shares outstanding (in shares)	[1]		0	0
[1]	There were no shares of Preferred Stock outstanding as of March 31, 2022 and December 31, 2021.

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities:
Net (loss) income	$ (11)	$ 3.4
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization	0.8	0.6
Deferred income taxes	0	1.2
Share-based compensation expense	16.5	26
Change in allowance for doubtful accounts	3.1	0
Changes in operating assets and liabilities:
Accounts receivable	51	157.1
Other receivables due from related parties	3	0.2
Inventories	(0.3)	0.8
Income taxes receivable	(3)	1.3
Other current assets	0.1	(1.3)
Other assets	(2.8)	0.6
Accounts payable due to related parties	(71)	(49.7)
Accounts payable	26	(38.2)
Accrued expenses	(16.1)	(19.7)
Accrued royalties	(9.6)	(3.9)
Income taxes payable	0	6.8
Other current liabilities	0.5	0
Other long-term liabilities	2.3	(0.4)
Net cash (used in) provided by operating activities	(10.5)	84.8
Cash flows from investing activities:
Purchase of property and equipment	(4)	(2.3)
Purchase of investments	(0.7)	0
Net cash used in investing activities	(4.7)	(2.3)
Cash flows from financing activities:
Proceeds from the exercise of stock options	5.2	0
Payment of dividends on Series A convertible preferred stock	0	(0.6)
Proceeds from IPO, net of $10.7 in direct offering costs	0	148
Payments of other offering costs	0	(1.4)
Withholding taxes paid on behalf of employees on net settled share-based awards	(11.9)	0
Net cash (used in) provided by financing activities	(6.7)	146
Effects of exchange rate changes on cash and cash equivalents	0	(1.1)
Net (decrease) increase in cash and cash equivalents	(21.9)	227.4
Cash and cash equivalents at beginning of period	331.6	207.7
Cash and cash equivalents at end of period	309.7	435.1
Supplemental disclosure of cash flow information:
Cash paid for income taxes	0.9	0.1
Cash paid for interest	0.1	0.1
Supplemental disclosure of non-cash investing and financing activities:
Right-of-use assets obtained in exchange for new operating lease liabilities	3.5	0
Cash paid for amounts included in the measurement of operating lease liabilities	0.8	0.7
Payment to taxing authority in connection with shares directly withheld from employees not yet made	0	9.1
IPO costs not yet paid	$ 0	$ 1.7

Condensed Consolidated Statem_6

Condensed Consolidated Statements of Cash Flows (Parenthetical) $ in Millions	3 Months Ended
	Mar. 31, 2021USD ($)
IPO
Offering costs	$ 10.7

Organization and Nature of Busi

Organization and Nature of Business	3 Months Ended
	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Nature of Business	Organization and Nature of Business Founded and headquartered in Orange County, California, the Company’s mission at VIZIO Holding Corp. (NYSE: VZIO), a Delaware corporation, is to deliver immersive entertainment and compelling lifestyle enhancements that make its products the center of the connected home. The Company is driving the future of televisions through its integrated platform of cutting-edge Smart TVs and powerful operating system. The Company also offers a portfolio of innovative sound bars that deliver consumers an elevated audio experience. The Company’s platform gives content providers more ways to distribute their content and advertisers more tools to connect with the right audience. These products are sold to retailers and through online channels throughout the United States. In 2020 VIZIO launched Platform+, which is comprised of SmartCast, the Company’s award-winning Smart TV operating system, which enables a fully integrated entertainment solution, and Inscape, which powers its data intelligence and services. SmartCast delivers content and applications through an easy-to-use interface. It supports leading streaming apps and hosts the Company’s own free ad-supported video app, WatchFree+. The Company provides broad support for third-party voice platforms and second screen experiences to offer additional interactive features and experiences. VIZIO purchases all of its products from manufacturers based in Asia. Since inception, the Company had purchased a portion of its televisions from one manufacturer who holds a noncontrolling interest in the Company through its ownership of Class A common stock; however, recently the Company has not made any material purchases from this manufacturer. Since 2012, VIZIO has purchased a portion of its televisions fro m three manufacturers who are affiliates of an investor who holds a noncontrolling interest in the Company through its ownership of Class A common stock. These manufacturers do not have any significant voting privileges, nor sufficient seats on the Board of Directors that would enable them to significantly influence any of the Company’s strategic or operating decisions. All transactions executed with the aforementioned manufacturers are presented as related party transactions. Impact of COVID-19 On March 11, 2020, the COVID-19 outbreak was declared a pandemic by the World Health Organization. The challenges posed by the COVID-19 pandemic on the global economy increased significantly as the year progressed. In response to COVID-19, national and local governments around the world instituted certain measures, including travel bans, prohibitions on group events and gatherings, shutdowns of certain businesses, curfews, shelter-in-place orders and recommendations to practice social distancing. Since the first quarter of 2020, the COVID-19 pandemic, and the responses to it have impacted the Company. During much of 2020 and early 2021 the Company experienced increased demand for its products due to the combined impact of stay at home orders and fiscal stimulus. Due to the surge in demand and supply chain and logistical partners operating at limited capacity the Company encountered reduced channel inventory levels at several retailers during 2021. By the end of 2021 and early 2022, the Company replenished most of its channel inventory.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Consolidation The Company has prepared these accompanying unaudited condensed consolidated financial statements in accordance with generally accepted accounting principles in the United States (“GAAP”). These unaudited condensed consolidated financial statements include the accounts of VIZIO and all subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. The functional currency of most of the foreign subsidiaries is the U.S. dollar. The accounts of these remaining foreign subsidiaries have been translated using the U.S. dollar as the functional currency. Gains or losses resulting from remeasurement of these accounts from local currencies into U.S. dollars are recorded in other comprehensive income in these unaudited condensed consolidated financial statements. Financial statements of the Company’s foreign subsidiaries for which the functional currency is the local currency are translated into U.S. dollars using the exchange rate at each balance sheet date for assets and liabilities and the transaction date. The condensed consolidated balance sheet as of December 31, 2021 and included herein was derived from the audited financial statements as of the same date. The Company has condensed or omitted certain information and notes normally included in complete financial statements prepared in accordance with GAAP. As such, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K. In the Company’s opinion, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, comprehensive loss and cash flows for the interim periods, but they are not necessarily indicative of the results of operations to be expected for the year ending December 31, 2022. Reclassifications The Company has reclassified Research and development costs from Selling, general and administrative amounts for the three months ended March 31, 2021, to conform to the current year presentation. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results may differ from those estimates and assumptions. Significant items subject to such estimates and assumptions include the allowances for doubtful accounts and sales returns, reserves for excess and obsolete inventory, accrued price protection and rebates, accrued royalties, share-based compensation, valuation of deferred tax assets and other contingencies. Supplier and customer concentrations also increase the degree of uncertainty inherent in these estimates and assumptions. Significant Accounting Policies There have been no material changes to the Company's significant accounting policies from its Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

Net Revenue

Net Revenue	3 Months Ended
	Mar. 31, 2022
Revenue from Contract with Customer [Abstract]
Net Revenue	Net Revenue The Company derives revenue primarily from the sale of televisions and sound bars, advertising and data services. Revenue is recognized when control of the promised goods or services is transferred to the Company’s retailers, in an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. The Company applies a five-step approach as defined in Financial Accounting Standards Board (“FASB”) ASC 606, Revenue from Contracts with Customers (Topic 606), in determining the amount and timing of revenue to be recognized: (1) identifying the contract with a customer; (2) identifying the performance obligations in the contract; (3) determining the transaction price; (4) allocating the transaction price to the performance obligations in the contract; and (5) recognizing revenue when the corresponding performance obligation is satisfied. The Company disaggregates net revenue by (i) Device Revenue, and (ii) Platform+ Revenue, as it believes it best depicts how the nature, timing and uncertainty of revenue and cash flows are affected by economic factors. The Company sells products to certain retailers under terms that allow them to receive price protection on future sell-through price reductions and may provide for limited rights of return, discounts and advertising credits. The revenue recognized from the contract liabilities consisted of the Company satisfying performance obligations during the normal course of business. The Company did not identify nor record any material contract assets as of March 31, 2022 and December 31, 2021. Additionally, no costs associated with obtaining contracts with customers were capitalized, nor any costs associated with fulfilling its contracts. All costs to obtain contracts were expensed as incurred as a practical expedient. Significant Customers VIZIO is a wholesale distributor of televisions and other home entertainment products, which are sold to the largest retailers and wholesale clubs in North America, primarily in the United States. The Company’s sales can be impacted by consumer spending and the cyclical nature of the retail industry. The following customers account for more than 10% of net revenue: Three Months Ended 2022 2021 Net revenue: Customer A 40 % 41 % Customer B 7 15 Customer C 13 12 Customer D 10 9

Accounts Receivable

Accounts Receivable	3 Months Ended
	Mar. 31, 2022
Receivables [Abstract]
Accounts Receivable	Accounts Receivable Accounts receivable consists of the following: March 31, December 31, (In millions) Accounts receivable $ 324.1 $ 375.2 Allowance for doubtful accounts (3.1) (0.1) Total accounts receivable, net of allowances $ 321.0 $ 375.1 VIZIO maintains credit insurance on certain accounts receivable balances to mitigate collection risk for these customers. The Company evaluates all accounts receivable for the allowance for doubtful accounts. During the three months ended March 31, 2022, the Company recorded a $3.1 million allowance for doubtful accounts. The following customers account for more than 10% of accounts receivable: March 31, December 31, Net receivables: Customer A 41 % 44 % Customer B 7 10 Customer C 16 10 Customer A and Customer C, and certain other customers not separately identified in the table above, are affiliates under common control with one another. Collectively, they comprised 53% and 53% of VIZIO’s net revenue for the three months ended March 31, 2022 and 2021, respectively. Their collective accounts receivable balance as of March 31, 2022 and December 31, 2021 was 57% and 54% of our total net receivables, respectively. However, throughout VIZIO’s history and presently, the Company has dealt with separate purchasing departments at Customer A and Customer C, and have at times sold products to Customer C without selling products to Customer A.

Inventories

Inventories	3 Months Ended
	Mar. 31, 2022
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories consist of the following: March 31, December 31, (In millions) Inventory on hand $ 6.4 $ 5.3 Inventory in transit 5.8 6.6 Total inventory $ 12.2 $ 11.9 Significant Manufacturers VIZIO purchases a significant amount of its product inventory from certain manufacturers. The inventory is purchased under standard product supply agreements that outline the terms of the product delivery. Once all aspects of the product are agreed upon, the manufacturers are then responsible for transporting the product to their warehouses located in the United States. The manufacturers are considered the importers of record and are required to insure the product as it is shipped to the warehouses. The title and risk of loss of the product passes to VIZIO upon shipment from the manufacturer’s warehouse in the United States to the customer. The product supply agreement stipulates that the manufacturer will (i) generally reimburse VIZIO for at least a portion of the price protection or sales concessions negotiated between the Company and customers on product purchased, and (ii) indemnify VIZIO against all liability resulting from valid and enforceable patent infringement with regard to product purchased under the agreement except if such infringement arises out of the Company’s modification or misuse of the product. The Company has the following significant concentrations related to suppliers: Three Months Ended 2022 2021 Inventory purchases: Supplier A — related party 44 % 43 % Supplier B 23 31 Supplier C 15 10 Supplier D — related party 7 13 The Company is currently reliant upon these manufacturers for products. Although VIZIO can obtain products from other sources, the loss of a significant manufacturer could have a material impact on the Company’s financial condition and results of operations as the products that are being purchased may not be available on the same terms from another manufacturer. The Company has also recorded other receivables of $4.6 million and $5.6 million due from the manufacturers as of March 31, 2022 and December 31, 2021, respectively. The other receivable balances are attributable to price protection and customer allowances as well as accrued royalties due in connection with the settlement of certain patent infringement cases for units shipped, which are indemnified by the Company’s manufacturers and are recognized at the time the aforementioned liabilities are incurred. The net effect is recorded in the condensed consolidated statements of operations as a reduction to cost of goods sold. Recycling costs The Company incurs recycling costs in order to comply with electronic waste recycling programs within certain states. These fees are assessed by the states using current market share and actual costs incurred on administration of such programs and are expensed as incurred. Recycling costs were $2.1 million and $2.6 million for the three months ended March 31, 2022 and 2021, respectively, and are recorded in cost of goods sold in the accompanying condensed consolidated statements of operations.

Property, Equipment and Softwar

Property, Equipment and Software, Net	3 Months Ended
	Mar. 31, 2022
Property, Plant and Equipment [Abstract]
Property, Equipment and Software, Net	Property, Equipment and Software, Net Property, equipment and software, net consist of the following: March 31, December 31, ( In millions) Building $ 10.1 $ 10.1 Machinery and equipment 1.7 1.6 Leasehold improvements 3.7 3.6 Furniture and fixtures 3.8 3.2 Computer and software 25.9 22.7 Total property, equipment and software 45.2 41.2 Less accumulated depreciation and amortization (31.6) (30.9) Total property, equipment and software, net $ 13.6 $ 10.3 During the three months ended March 31, 2022 and 2021, the Company capitalized software development costs of $2.3 million and $0.6 million, respectively. During the three months ended March 31, 2022 and 2021 amortization of capitalized software development costs was $0.7 million and $0.7 million, respectively, and are recorded in costs of goods sold in the accompanying condensed consolidated statements of operations. Depreciation expense was $0.7 million and $0.5 million for the three months ended March 31, 2022 and 2021, respectively. The Company’s long-lived assets of $13.6 million and $10.3 million as of March 31, 2022 and December 31, 2021, respectively, are located entirely within the United States.

Accrued Expenses

Accrued Expenses	3 Months Ended
	Mar. 31, 2022
Payables and Accruals [Abstract]
Accrued Expenses	Accrued Expenses The Company’s accrued expenses consisted of the following: March 31, December 31, (In millions) Accrued price protection $ 56.0 $ 67.2 Accrued other customer related expenses 46.2 48.4 Accrued supplier/partner related expenses 36.7 39.2 Accrued payroll expenses 20.1 21.6 Accrued other expenses 10.7 9.4 Total accrued expenses $ 169.7 $ 185.8 The Company periodically grants certain sales discounts and incentives to customers, such as rebates and price protection, which are treated as variable consideration for purposes of determining the transaction price. In certain instances, the Company will, in turn, negotiate with its manufacturers for reimbursement of a portion of the incentives so that the manufacturers are responsible for absorbing some of the rebates and price protection. The Company’s procedures for estimating customer allowances recorded as a reduction of revenue are based upon historical experience, as adjusted for the current environment, and management judgment. Customer allowances are accrued for when the related product sale is recognized. The accrued customer allowances are presented on the condensed consolidated balance sheets in accrued expenses and recorded in the condensed consolidated statements of operations as a reduction of net revenue.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2022
Share-based Payment Arrangement [Abstract]
Stockholders' Equity	Stockholders’ Equity Preferred Stock As of March 31, 2022, the Company had 100.0 million shares of undesignated preferred stock authorized but not issued with rights and preferences determined by the Company’s Board of Directors at the time of issuance of such shares. Common Stock The Company had three classes of authorized common stock, Class A common stock, Class B common stock and Class C common stock. Equity Incentive Plans The Company has two equity incentive plans, the 2017 Incentive Award Plan (as amended, the “2017 Plan”) and the 2007 Incentive Award Plan (the “2007 Plan”). The 2017 Plan replaced the 2007 and prohibits new grants under the 2007 Plan. Under the 2017 plan, the Company is permitted to grant stock options, restricted stock units (“RSUs”) and restricted stock. The primary purpose of the 2017 Plan is to enhance the Company’s ability to attract, motivate, and retain the services of qualified employees, officers, and directors. There were no material stock options granted or modified during the three months ended March 31, 2022. Stock Option Awards A summary of the status of the Company’s stock option plans as of March 31, 2022, is presented below: Number of Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (In millions, except years and per share amounts) Outstanding at December 31, 2021 14.4 $ 6.80 6.8 $ 181.4 Granted 0.3 13.51 Exercised (1.9) 2.94 Forfeited and expired (0.5) 10.84 Outstanding at March 31, 2022 12.3 $ 7.40 6.8 $ 18.4 Options vested and exercisable at March 31, 2022 7.5 $ 4.07 5.7 $ 36.2 March 31, 2022 March 31, 2021 Weighted average grant date fair value of stock options granted during the period $ 5.59 $ 9.95 RSUs A summary of the status of the Company’s RSUs as of March 31, 2022 is presented below: Number of Shares Weighted Average Grant Date Fair Value (in millions) Outstanding at December 31, 2021 4.1 $ 20.45 Granted 0.4 16.49 Vested (1.3) 19.47 Forfeited (0.3) 21.08 Outstanding at March 31, 2022 2.9 $ 20.25 Share-based Compensation Expense Total share-based compensation expense was $16.5 million and $26.0 million for the three months ended March 31, 2022 and 2021, respectively. For the three months ended March 31, 2022, $0.4 million is included in Cost of sales, $0.3 million is included in Research and development expense and the remaining amount is included in Selling, general and administrative expense in the condensed consolidated statements of operations. For the three months ended March 31, 2021, all share-based compensation expense was included in Selling, general and administrative expense. As of March 31, 2022, the Company had $73.7 million of unrecognized compensation costs related to share-based payments, which is expected to be recognized over a weighted average vesting period of approximately 2.0 years.

Net (Loss) Income Per Share

Net (Loss) Income Per Share	3 Months Ended
	Mar. 31, 2022
Earnings Per Share [Abstract]
Net (Loss) Income Per Share	Net (Loss) Income Per Share The Company computes earnings per share (“EPS”) of Class A and Class B common stock using the two-class method for participating securities. Basic earnings per share is computed by dividing the net (loss) income attributable to common stockholders by the weighted-average number of Class A and Class B common shares outstanding during the period. Participating securities are excluded from basic weighted-average common shares outstanding. Diluted earnings per share represents net (loss) income divided by the weighted-average number of common shares outstanding, inclusive of the effect of potential common shares, if dilutive. For the three-months ended March 31, 2022, potentially dilutive shares were considered antidilutive given the net loss for the period. For the three months ended March 31, 2021, the potential dilutive shares relate to the dilutive effect of outstanding stock options. Basic and diluted earnings per share and the weighted-average shares outstanding have been computed for all periods as shown below: Three Months Ended 2022 2021 Class A Class B Class A Class B (In millions) Numerator: Net (loss) income $ (6.6) $ (4.4) $ 3.3 $ 0.1 Less: Accumulated dividends on preferred shares — — — — Undistributed earnings (6.6) (4.4) 3.3 0.1 Less: Earnings attributable to participating securities — — (0.3) — Net (loss) income attributable to common stockholder - basic $ (6.6) $ (4.4) $ 3.0 $ 0.1 Reallocation of net income as a result of the conversion of Class B shares to Class A shares — — 0.1 — Net (loss) income attributable to common stockholders – diluted $ (6.6) $ (4.4) $ 3.1 $ 0.1 Denominator: Weighted-average common shares outstanding - basic 114.4 76.8 142.4 3.3 Conversion of Class B to Class A common shares outstanding — — 3.3 — Weighted-average effect of dilutive securities Employee stock options — — 8.2 — Weighted-average common shares outstanding - diluted 114.4 76.8 153.9 3.3 Net (loss) income per share attributable to Class A and Class B common stockholders: Basic $ (0.06) $ (0.06) $ 0.02 $ 0.02 Diluted $ (0.06) $ (0.06) $ 0.02 $ 0.02 Anti-dilutive equity awards under share-based award plans excluded from the determination of diluted EPS 15.3 — 3.4 —

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesThe Company recorded a tax benefit of $(1.9) million resulting in an effective tax rate of 15% and a tax provision of $10.3 million resulting in an effective tax rate of 75% for the three months ended March 31, 2022 and March 31, 2021, respectively. The effective tax rate differs from the statutory tax rate of 21% primarily due to the approximately $3.1 million in permanent book-to-tax difference for the share-based compensation expense deduction limited on certain executive officers as a publicly held corporation for the three months ended March 31, 2022. The tax provision for the three months ended March 31, 2022, includes a net income tax benefit of $2.1 million for discrete items primarily due to excess tax benefits relating to stock-based compensation.

Accrued Royalties

Accrued Royalties	3 Months Ended
	Mar. 31, 2022
Payables and Accruals [Abstract]
Accrued Royalties	Accrued Royalties A summary of future commitments on royalty obligations as of March 31, 2022 is as follows: March 31, 2022 (In millions) 2022 (nine months) $ 7.4 2023 7.1 2024 5.2 2025 3.0 2026 and thereafter 0.5 Total $ 23.2 For potential future settlements related to historical sales for which the Company does not expect to be reimbursed, a reserve of $25.3 million and $32.5 million has been recorded as of March 31, 2022 and December 31, 2021, respectively, as part of accrued royalties. Any patent infringement lawsuit in which the Company is not indemnified is expensed when management determines that it is probable that a liability has been incurred and the amount is estimable. Refundable deposits of $21.9 million and $24.3 million have been recorded as of March 31, 2022 and December 31, 2021, respectively, which are presented within accrued royalties in the condensed consolidated balance sheets. In the ordinary course of business, management anticipates that the Company will be party to various claims and suits including disputes arising over intellectual property rights and other matters. The Company intends to vigorously defend against such claims and suits; however, the ultimate outcome of such claims may remain unknown for some time. Based on all of the information available to date, management does not believe that there are any claims or suits that would have a material adverse effect on the Company’s financial condition, results of operations, or liquidity.

Leases

Leases	3 Months Ended
	Mar. 31, 2022
Leases [Abstract]
Leases	Leases The Company has various non-cancelable operating leases for its corporate and satellite offices primarily in the United States. These leases expire at various times through 2027. The table below presents supplemental balance sheet information related to the Company’s operating leases as follows: Classification March 31, December 31, Assets: (In millions) Right-of-use asset Other assets $ 11.8 $ 8.9 Liabilities: Current portion of lease liabilities Other current liabilities $ 3.2 $ 2.4 Long term portion of lease liabilities Other long-term liabilities $ 8.6 $ 6.5 Weighted-average remaining lease term (years) 4.6 4.2 Weighted-average discount rate (percentage) 4.1 % 3.7 % Operating lease costs were $1.3 million and $0.9 million for the three months ended March 31, 2022 and 2021, respectively. The table below reconciles the undiscounted cash flows of the operating leases for each of the first five years, and total of the remaining years, to the operating lease liabilities recorded on the condensed consolidated balance sheets as of March 31, 2022. March 31, (In millions) 2022 (nine months) $ 2.5 2023 2.8 2024 2.5 2025 2.4 2026 2.3 2027 and Thereafter 0.5 Total minimum lease payments 13.0 Less imputed interest (1.2) Total lease liabilities $ 11.8

Commitment and Contingencies

Commitment and Contingencies	3 Months Ended
	Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Volume Commitments Certain product supply agreements include a volume supply commitment on up to 13 weeks of inventory forecasted by the Company. Management provides periodic forecasts to manufacturers at which time they consider the first 13 weeks of supply to be committed. As of March 31, 2022, no liabilities were recorded related to this supply commitment. Revolving Credit Facility On April 13, 2016, VIZIO entered into a Loan and Security Agreement with Bank of America, N.A. and on April 13, 2021 the agreement was amended (“Second Amendment”) to extend the maturity date to April 13, 2024. Under the credit agreement, Bank of America, N.A. agreed to provide VIZIO with a revolving credit line of up to $50.0 million for the purposes of repurchasing certain outstanding shares of common stock held by a related party supplier and other general business requirements, including working capital. The Company’s indebtedness to Bank of America, N.A. under the credit agreement is collateralized by substantially all of the Company’s assets. The Second Amendment also included (i) an update to provide for use of a LIBOR successor rate, (ii) a change in the definition of Availability Reserve and Borrowing Base, and (iii) an extension of the termination date to April 13, 2024. As of March 31, 2022, there were no draws on the line of credit and the Company was in compliance with all debt covenants. Legal Matters Advanced Micro Devices, Inc. (“AMD”) presented the Company with a claim letter dated May 11, 2015 in which AMD claimed the Company is infringing its patents that cover graphics processing and semiconductor technologies. On January 23 and 24, 2017, respectively, AMD filed complaints in the U.S. District Court for the District of Delaware and the International Trade Center (ITC) alleging infringement of AMD’s U.S. patents. On August 22, 2018, the ITC ruled against VIZIO and recommended limited exclusion and cease and desist orders. On August 30, 2018, the parties entered into a settlement agreement including payments of $39.0 million in total, and the cases were subsequently dismissed. Of the $39.0 million settlement outlined in the agreement, $15.0 million was negotiated to apply to the release for units shipped prior to the effective date of the agreement which is indemnified by VIZIO’s suppliers. This is reflected in the first three payments due to AMD under the license, which were paid by the end of 2018. Payments beginning with the fourth payment are scheduled on an annual basis in May of each subsequent calendar year for payment of ongoing license from September 2018 and included in accrued royalties. In connection with the IPO in 2021, approximately $14.0 million in payments were accelerated and paid. In November 2020, the Company entered into a settlement agreement with AmTRAN Technology Co., Ltd. (“AmTRAN”) and one of its subsidiaries. AmTRAN is a beneficial holder of more than 5% of the Company’s Class A common stock. Pursuant to the settlement agreement, the Company agreed, among other things, to pay AmTRAN approximately $8.2 million. In return, on November 23, 2020 AmTRAN terminated its security agreement. AmTRAN further agreed to pay outstanding fees owed by it for IP licenses related to the manufacturing of the Company’s devices. The parties further agreed that VIZIO would continue to retain a reserve of approximately $4.0 million for payment of, future claims attributable to devices manufactured by AmTRAN. On December 31, 2022 VIZIO will release to AmTRAN the lesser of (i) 50% of the remaining balance of the reserve or (ii) approximately $2.0 million, with a like amount to be retained by the Company. On August 20, 2021, Maxell, Ltd. and Maxell Holdings, Ltd. (collectively, “Maxell”) filed a complaint in United States District Court for the Central District of California against the Company alleging the Company's TVs infringe several of their patents related to various television-related technologies. See Maxell, Ltd., et al. v. VIZIO, Inc., Case No. 2:21-cv-6758 (C.D. Cal.). This case is in the pleadings stage. The Company disputes the claims and intends to defend the lawsuit vigorously.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Basis of Consolidation - Presentation	The Company has prepared these accompanying unaudited condensed consolidated financial statements in accordance with generally accepted accounting principles in the United States (“GAAP”). These unaudited condensed consolidated financial statements include the accounts of VIZIO and all subsidiaries.The condensed consolidated balance sheet as of December 31, 2021 and included herein was derived from the audited financial statements as of the same date. The Company has condensed or omitted certain information and notes normally included in complete financial statements prepared in accordance with GAAP. As such, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K. In the Company’s opinion, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, comprehensive loss and cash flows for the interim periods, but they are not necessarily indicative of the results of operations to be expected for the year ending December 31, 2022.
Basis of Consolidation - Consolidation	All intercompany transactions and balances have been eliminated in consolidation.
Basis of Consolidation - Foreign Currency	The functional currency of most of the foreign subsidiaries is the U.S. dollar. The accounts of these remaining foreign subsidiaries have been translated using the U.S. dollar as the functional currency. Gains or losses resulting from remeasurement of these accounts from local currencies into U.S. dollars are recorded in other comprehensive income in these unaudited condensed consolidated financial statements. Financial statements of the Company’s foreign subsidiaries for which the functional currency is the local currency are translated into U.S. dollars using the exchange rate at each balance sheet date for assets and liabilities and the transaction date.
Reclassifications	ReclassificationsThe Company has reclassified Research and development costs from Selling, general and administrative amounts for the three months ended March 31, 2021, to conform to the current year presentation.
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results may differ from those estimates and assumptions. Significant items subject to such estimates and assumptions include the allowances for doubtful accounts and sales returns, reserves for excess and obsolete inventory, accrued price protection and rebates, accrued royalties, share-based compensation, valuation of deferred tax assets and other contingencies. Supplier and customer concentrations also increase the degree of uncertainty inherent in these estimates and assumptions.
Net Revenue	Net Revenue The Company derives revenue primarily from the sale of televisions and sound bars, advertising and data services. Revenue is recognized when control of the promised goods or services is transferred to the Company’s retailers, in an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. The Company applies a five-step approach as defined in Financial Accounting Standards Board (“FASB”) ASC 606, Revenue from Contracts with Customers (Topic 606), in determining the amount and timing of revenue to be recognized: (1) identifying the contract with a customer; (2) identifying the performance obligations in the contract; (3) determining the transaction price; (4) allocating the transaction price to the performance obligations in the contract; and (5) recognizing revenue when the corresponding performance obligation is satisfied. The Company disaggregates net revenue by (i) Device Revenue, and (ii) Platform+ Revenue, as it believes it best depicts how the nature, timing and uncertainty of revenue and cash flows are affected by economic factors. The Company sells products to certain retailers under terms that allow them to receive price protection on future sell-through price reductions and may provide for limited rights of return, discounts and advertising credits. The revenue recognized from the contract liabilities consisted of the Company satisfying performance obligations during the normal course of business. The Company did not identify nor record any material contract assets as of March 31, 2022 and December 31, 2021. Additionally, no costs associated with obtaining contracts with customers were capitalized, nor any costs associated with fulfilling its contracts. All costs to obtain contracts were expensed as incurred as a practical expedient.

Net Revenue (Tables)

Net Revenue (Tables)	3 Months Ended
	Mar. 31, 2022
Revenue from Contract with Customer [Abstract]
Schedule of Concentration Risk	The following customers account for more than 10% of net revenue: Three Months Ended 2022 2021 Net revenue: Customer A 40 % 41 % Customer B 7 15 Customer C 13 12 Customer D 10 9 The following customers account for more than 10% of accounts receivable: March 31, December 31, Net receivables: Customer A 41 % 44 % Customer B 7 10 Customer C 16 10 The Company has the following significant concentrations related to suppliers: Three Months Ended 2022 2021 Inventory purchases: Supplier A — related party 44 % 43 % Supplier B 23 31 Supplier C 15 10 Supplier D — related party 7 13

Accounts Receivable (Tables)

Accounts Receivable (Tables)	3 Months Ended
	Mar. 31, 2022
Receivables [Abstract]
Schedule of Accounts Receivable	Accounts receivable consists of the following: March 31, December 31, (In millions) Accounts receivable $ 324.1 $ 375.2 Allowance for doubtful accounts (3.1) (0.1) Total accounts receivable, net of allowances $ 321.0 $ 375.1
Schedule of Concentration Risk	The following customers account for more than 10% of net revenue: Three Months Ended 2022 2021 Net revenue: Customer A 40 % 41 % Customer B 7 15 Customer C 13 12 Customer D 10 9 The following customers account for more than 10% of accounts receivable: March 31, December 31, Net receivables: Customer A 41 % 44 % Customer B 7 10 Customer C 16 10 The Company has the following significant concentrations related to suppliers: Three Months Ended 2022 2021 Inventory purchases: Supplier A — related party 44 % 43 % Supplier B 23 31 Supplier C 15 10 Supplier D — related party 7 13

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2022
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventories consist of the following: March 31, December 31, (In millions) Inventory on hand $ 6.4 $ 5.3 Inventory in transit 5.8 6.6 Total inventory $ 12.2 $ 11.9
Schedule of Concentration Risk	The following customers account for more than 10% of net revenue: Three Months Ended 2022 2021 Net revenue: Customer A 40 % 41 % Customer B 7 15 Customer C 13 12 Customer D 10 9 The following customers account for more than 10% of accounts receivable: March 31, December 31, Net receivables: Customer A 41 % 44 % Customer B 7 10 Customer C 16 10 The Company has the following significant concentrations related to suppliers: Three Months Ended 2022 2021 Inventory purchases: Supplier A — related party 44 % 43 % Supplier B 23 31 Supplier C 15 10 Supplier D — related party 7 13

Property, Equipment and Softw_2

Property, Equipment and Software, Net (Tables)	3 Months Ended
	Mar. 31, 2022
Property, Plant and Equipment [Abstract]
Schedule of Property, Equipment and Software, Net	Property, equipment and software, net consist of the following: March 31, December 31, ( In millions) Building $ 10.1 $ 10.1 Machinery and equipment 1.7 1.6 Leasehold improvements 3.7 3.6 Furniture and fixtures 3.8 3.2 Computer and software 25.9 22.7 Total property, equipment and software 45.2 41.2 Less accumulated depreciation and amortization (31.6) (30.9) Total property, equipment and software, net $ 13.6 $ 10.3

Accrued Expenses (Tables)

Accrued Expenses (Tables)	3 Months Ended
	Mar. 31, 2022
Payables and Accruals [Abstract]
Schedule of Accrued Expenses	The Company’s accrued expenses consisted of the following: March 31, December 31, (In millions) Accrued price protection $ 56.0 $ 67.2 Accrued other customer related expenses 46.2 48.4 Accrued supplier/partner related expenses 36.7 39.2 Accrued payroll expenses 20.1 21.6 Accrued other expenses 10.7 9.4 Total accrued expenses $ 169.7 $ 185.8

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2022
Share-based Payment Arrangement [Abstract]
Schedule of Stock Option Activity	A summary of the status of the Company’s stock option plans as of March 31, 2022, is presented below: Number of Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (In millions, except years and per share amounts) Outstanding at December 31, 2021 14.4 $ 6.80 6.8 $ 181.4 Granted 0.3 13.51 Exercised (1.9) 2.94 Forfeited and expired (0.5) 10.84 Outstanding at March 31, 2022 12.3 $ 7.40 6.8 $ 18.4 Options vested and exercisable at March 31, 2022 7.5 $ 4.07 5.7 $ 36.2 March 31, 2022 March 31, 2021 Weighted average grant date fair value of stock options granted during the period $ 5.59 $ 9.95
Schedule of Restricted Stock Unit Activity	A summary of the status of the Company’s RSUs as of March 31, 2022 is presented below: Number of Shares Weighted Average Grant Date Fair Value (in millions) Outstanding at December 31, 2021 4.1 $ 20.45 Granted 0.4 16.49 Vested (1.3) 19.47 Forfeited (0.3) 21.08 Outstanding at March 31, 2022 2.9 $ 20.25

Net (Loss) Income Per Share (Ta

Net (Loss) Income Per Share (Tables)	3 Months Ended
	Mar. 31, 2022
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Earnings Per Share	Basic and diluted earnings per share and the weighted-average shares outstanding have been computed for all periods as shown below: Three Months Ended 2022 2021 Class A Class B Class A Class B (In millions) Numerator: Net (loss) income $ (6.6) $ (4.4) $ 3.3 $ 0.1 Less: Accumulated dividends on preferred shares — — — — Undistributed earnings (6.6) (4.4) 3.3 0.1 Less: Earnings attributable to participating securities — — (0.3) — Net (loss) income attributable to common stockholder - basic $ (6.6) $ (4.4) $ 3.0 $ 0.1 Reallocation of net income as a result of the conversion of Class B shares to Class A shares — — 0.1 — Net (loss) income attributable to common stockholders – diluted $ (6.6) $ (4.4) $ 3.1 $ 0.1 Denominator: Weighted-average common shares outstanding - basic 114.4 76.8 142.4 3.3 Conversion of Class B to Class A common shares outstanding — — 3.3 — Weighted-average effect of dilutive securities Employee stock options — — 8.2 — Weighted-average common shares outstanding - diluted 114.4 76.8 153.9 3.3 Net (loss) income per share attributable to Class A and Class B common stockholders: Basic $ (0.06) $ (0.06) $ 0.02 $ 0.02 Diluted $ (0.06) $ (0.06) $ 0.02 $ 0.02 Anti-dilutive equity awards under share-based award plans excluded from the determination of diluted EPS 15.3 — 3.4 —

Accrued Royalties (Tables)

Accrued Royalties (Tables)	3 Months Ended
	Mar. 31, 2022
Payables and Accruals [Abstract]
Schedule of Future Commitments on Royalty Obligations	A summary of future commitments on royalty obligations as of March 31, 2022 is as follows: March 31, 2022 (In millions) 2022 (nine months) $ 7.4 2023 7.1 2024 5.2 2025 3.0 2026 and thereafter 0.5 Total $ 23.2

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2022
Leases [Abstract]
Supplemental Balance Sheet Information	The table below presents supplemental balance sheet information related to the Company’s operating leases as follows: Classification March 31, December 31, Assets: (In millions) Right-of-use asset Other assets $ 11.8 $ 8.9 Liabilities: Current portion of lease liabilities Other current liabilities $ 3.2 $ 2.4 Long term portion of lease liabilities Other long-term liabilities $ 8.6 $ 6.5 Weighted-average remaining lease term (years) 4.6 4.2 Weighted-average discount rate (percentage) 4.1 % 3.7 %
Schedule of Undiscounted Cash Flows of Operating Leases	The table below reconciles the undiscounted cash flows of the operating leases for each of the first five years, and total of the remaining years, to the operating lease liabilities recorded on the condensed consolidated balance sheets as of March 31, 2022. March 31, (In millions) 2022 (nine months) $ 2.5 2023 2.8 2024 2.5 2025 2.4 2026 2.3 2027 and Thereafter 0.5 Total minimum lease payments 13.0 Less imputed interest (1.2) Total lease liabilities $ 11.8

Net Revenue - Narrative (Detail

Net Revenue - Narrative (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Contract assets	$ 0	$ 0
Capitalized contract costs	$ 0	$ 0

Net Revenue - Customers (Detail

Net Revenue - Customers (Details) - Net Revenue - Customer concentration	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Customer A
Concentration Risk [Line Items]
Concentration risk, percentage	40.00%	41.00%
Customer B
Concentration Risk [Line Items]
Concentration risk, percentage	7.00%	15.00%
Customer C
Concentration Risk [Line Items]
Concentration risk, percentage	13.00%	12.00%
Customer D
Concentration Risk [Line Items]
Concentration risk, percentage	10.00%	9.00%

Accounts Receivable - Balances

Accounts Receivable - Balances (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Receivables [Abstract]
Accounts receivable	$ 324.1	$ 375.2
Allowance for doubtful accounts	(3.1)	(0.1)
Total accounts receivable, net of allowances	$ 321	$ 375.1

Accounts Receivable - Customers

Accounts Receivable - Customers (Details) - Net Receivables - Credit concentration risk	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Customer A
Concentration Risk [Line Items]
Concentration risk, percentage	41.00%	44.00%
Customer B
Concentration Risk [Line Items]
Concentration risk, percentage	7.00%	10.00%
Customer C
Concentration Risk [Line Items]
Concentration risk, percentage	16.00%	10.00%

Accounts Receivable - Narrative

Accounts Receivable - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Concentration Risk [Line Items]
Allowance for doubtful accounts recorded	$ 3.1	$ 0
Net Revenue | Customer concentration | Customers A and C, common control
Concentration Risk [Line Items]
Concentration risk, percentage	53.00%	53.00%
Net Receivables | Credit concentration risk | Customers A and C, common control
Concentration Risk [Line Items]
Concentration risk, percentage	57.00%		54.00%

Inventories - Balances (Details

Inventories - Balances (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Inventory [Line Items]
Total inventory	$ 12.2	$ 11.9
Inventory on hand
Inventory [Line Items]
Total inventory	6.4	5.3
Inventory in transit
Inventory [Line Items]
Total inventory	$ 5.8	$ 6.6

Inventories - Inventory Purchas

Inventories - Inventory Purchases (Details) - Inventory Purchases - Supplier concentration risk	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Supplier A — related party
Concentration Risk [Line Items]
Concentration risk, percentage	44.00%	43.00%
Supplier B
Concentration Risk [Line Items]
Concentration risk, percentage	23.00%	31.00%
Supplier C
Concentration Risk [Line Items]
Concentration risk, percentage	15.00%	10.00%
Supplier D — related party
Concentration Risk [Line Items]
Concentration risk, percentage	7.00%	13.00%

Inventories - Narrative (Detail

Inventories - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Inventory [Line Items]
Recycling costs	$ 2.1	$ 2.6
Other receivables, manufacturers
Inventory [Line Items]
Receivables due from manufacturers	$ 4.6		$ 5.6

Property, Equipment and Softw_3

Property, Equipment and Software, Net - Components (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Total property, equipment and software	$ 45.2	$ 41.2
Less accumulated depreciation and amortization	(31.6)	(30.9)
Total property, equipment and software, net	13.6	10.3
Building
Property, Plant and Equipment [Line Items]
Total property, equipment and software	10.1	10.1
Machinery and equipment
Property, Plant and Equipment [Line Items]
Total property, equipment and software	1.7	1.6
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property, equipment and software	3.7	3.6
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total property, equipment and software	3.8	3.2
Computer and software
Property, Plant and Equipment [Line Items]
Total property, equipment and software	$ 25.9	$ 22.7

Property, Equipment and Softw_4

Property, Equipment and Software, Net - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Property, Plant and Equipment [Abstract]
Capitalized software development costs	$ 2.3	$ 0.6
Amortization of capitalized software development costs	0.7	0.7
Depreciation expense	0.7	$ 0.5
United States
Property, Plant and Equipment [Line Items]
Long-lived assets	$ 13.6		$ 10.3

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Accrued price protection	$ 56	$ 67.2
Accrued other customer related expenses	46.2	48.4
Accrued supplier/partner related expenses	36.7	39.2
Accrued payroll expenses	20.1	21.6
Accrued other expenses	10.7	9.4
Total accrued expenses	$ 169.7	$ 185.8

Stockholders' Equity - Narrativ

Stockholders' Equity - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Preferred stock, authorized (in shares)	100,000,000		100,000,000
Share-based compensation expense	$ 16.5	$ 26
Unrecognized compensation costs	$ 73.7
Unrecognized compensation costs, vesting period	2 years
Cost of sales
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 0.4
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 0.3

Stockholders' Equity - Stock Op

Stockholders' Equity - Stock Option Awards Activity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Number of Options
Beginning balance (in shares)	14.4
Granted (in shares)	0.3
Exercised (in shares)	(1.9)
Forfeited and expired (in shares)	(0.5)
Ending balance (in shares)	12.3	14.4
Options vested and expected to vest (in shares)	7.5
Weighted Average Exercise Price
Beginning balance (in dollars per share)	$ 6.80
Granted (in dollars per share)	13.51
Exercised (in dollars per share)	2.94
Forfeited and expired (in dollars per share)	10.84
Ending balance (in dollars per share)	7.40	$ 6.80
Options vested and expected to vest (in dollars per share)	$ 4.07
Weighted Average Remaining Contractual Term (Years)
Options outstanding	6 years 9 months 18 days	6 years 9 months 18 days
Options vested and expected to vest	5 years 8 months 12 days
Aggregate Intrinsic Value
Options outstanding	$ 18.4	$ 181.4
Options vested and expected to vest	$ 36.2

Stockholders' Equity - Weighted

Stockholders' Equity - Weighted Average Grant Date Fair Value of Stock Options Granted (Details) - $ / shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Share-based Payment Arrangement [Abstract]
Weighted average grant date fair value of stock options granted (in dollars per share)	$ 5.59	$ 9.95

Stockholders' Equity - RSU Acti

Stockholders' Equity - RSU Activity (Details) - RSUs shares in Millions	3 Months Ended
	Mar. 31, 2022$ / sharesshares
Number of Shares
Outstanding, beginning (in shares) | shares	4.1
Awards granted (in dollars per share) | shares	0.4
Vested (in shares) | shares	(1.3)
Forfeited (in shares) | shares	(0.3)
Outstanding, ending (in shares) | shares	2.9
Weighted Average Grant Date Fair Value
Outstanding, beginning (in dollars per share) | $ / shares	$ 20.45
Granted (in dollars per share) | $ / shares	16.49
Vested (in dollars per share) | $ / shares	19.47
Forfeited (in dollars per share) | $ / shares	21.08
Outstanding, ending (in dollars per share) | $ / shares	$ 20.25

Net (Loss) Income Per Share (De

Net (Loss) Income Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Numerator:
Net (loss) income	$ (11)	$ 3.4
Denominator:
Weighted-average common shares outstanding - basic (in shares)	191.2	145.7
Weighted-average effect of dilutive securities
Weighted-average common shares outstanding - diluted (in shares)	191.2	157.2
Net (loss) income per share attributable to Class A and Class B common stockholders:
Basic (in dollars per share)	$ (0.06)	$ 0.02
Diluted (in dollars per share)	$ (0.06)	$ 0.02
Class A
Numerator:
Net (loss) income	$ (6.6)	$ 3.3
Less: Accumulated dividends on preferred shares	0	0
Undistributed earnings	(6.6)	3.3
Less: Earnings attributable to participating securities	0	(0.3)
Net (loss) income attributable to common stockholder - basic	(6.6)	3
Reallocation of net income as a result of the conversion of Class B shares to Class A shares	0	0.1
Net (loss) income attributable to common stockholders – diluted	$ (6.6)	$ 3.1
Denominator:
Weighted-average common shares outstanding - basic (in shares)	114.4	142.4
Conversion of Class B to Class A common shares outstanding (in shares)	0	3.3
Weighted-average effect of dilutive securities
Employee stock options (in shares)	0	8.2
Weighted-average common shares outstanding - diluted (in shares)	114.4	153.9
Net (loss) income per share attributable to Class A and Class B common stockholders:
Basic (in dollars per share)	$ (0.06)	$ 0.02
Diluted (in dollars per share)	$ (0.06)	$ 0.02
Anti-dilutive equity awards under stock-based award plans excluded from the determination of diluted EPS (in shares)	15.3	3.4
Class B
Numerator:
Net (loss) income	$ (4.4)	$ 0.1
Less: Accumulated dividends on preferred shares	0	0
Undistributed earnings	(4.4)	0.1
Less: Earnings attributable to participating securities	0	0
Net (loss) income attributable to common stockholder - basic	(4.4)	0.1
Reallocation of net income as a result of the conversion of Class B shares to Class A shares	0	0
Net (loss) income attributable to common stockholders – diluted	$ (4.4)	$ 0.1
Denominator:
Weighted-average common shares outstanding - basic (in shares)	76.8	3.3
Conversion of Class B to Class A common shares outstanding (in shares)	0	0
Weighted-average effect of dilutive securities
Employee stock options (in shares)	0	0
Weighted-average common shares outstanding - diluted (in shares)	76.8	3.3
Net (loss) income per share attributable to Class A and Class B common stockholders:
Basic (in dollars per share)	$ (0.06)	$ 0.02
Diluted (in dollars per share)	$ (0.06)	$ 0.02
Anti-dilutive equity awards under stock-based award plans excluded from the determination of diluted EPS (in shares)	0	0

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Tax provision (benefit)	$ (1.9)	$ 10.3
Effective tax rate (percent)	15.00%	75.00%
Effect of share-based compensation expense, compensation deduction limitation	$ 3.1
Effect of excess tax benefits relating to stock-based compensation		$ 2.1

Accrued Royalties - Future Comm

Accrued Royalties - Future Commitments on Royalty Obligations (Details) - Royalty obligations $ in Millions	Mar. 31, 2022USD ($)
Other Commitments [Line Items]
2022 (nine months)	$ 7.4
2023	7.1
2024	5.2
2025	3
2026 and thereafter	0.5
Total	$ 23.2

Accrued Royalties - Narrative (

Accrued Royalties - Narrative (Details) - Accrued royalties - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Accrued Royalties [Line Items]
Refundable deposits	$ 21.9	$ 24.3
Reserve for potential unreimbursed settlements
Accrued Royalties [Line Items]
Reserve for future settlements	$ 25.3	$ 32.5

Leases - Supplemental Balance S

Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Assets:
Right-of-use asset	$ 11.8	$ 8.9
Right of use assets, balance sheet [Extensible Enumeration]	Other assets	Other assets
Liabilities [Abstract]
Current portion of lease liabilities	$ 3.2	$ 2.4
Current portion of lease liabilities, balance sheet [Extensible Enumeration]	Other current liabilities	Other current liabilities
Long term portion of lease liabilities	$ 8.6	$ 6.5
Long term portion of lease liabilities, balance sheet [Extensible Enumeration]	Other long-term liabilities	Other long-term liabilities
Weighted-average remaining lease term (years)	4 years 7 months 6 days	4 years 2 months 12 days
Weighted-average discount rate (percentage)	4.10%	3.70%

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Leases [Abstract]
Operating lease costs	$ 1.3	$ 0.9

Leases - Reconciliation of Undi

Leases - Reconciliation of Undiscounted Cash Flows of Operating Leases (Details) $ in Millions	Mar. 31, 2022USD ($)
Leases [Abstract]
2022 (nine months)	$ 2.5
2023	2.8
2024	2.5
2025	2.4
2026	2.3
2027 and Thereafter	0.5
Total minimum lease payments	13
Less imputed interest	(1.2)
Total lease liabilities	$ 11.8

Commitment and Contingencies (D

Commitment and Contingencies (Details) - USD ($)	Aug. 30, 2018	Nov. 30, 2020	Dec. 31, 2021	Mar. 31, 2022	Apr. 13, 2016
Commitments and Contingencies Disclosure [Abstract]
Liability for supply commitment				$ 0
Revolving credit facility | Line of credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity					$ 50,000,000
Draws on line of credit					$ 0
AMD patent infringement
Line of Credit Facility [Line Items]
Litigation settlement award to other party	$ 39,000,000
Settlement portion paid in previous periods	$ 15,000,000
Payments for legal settlements			$ 14,000,000
AmTRAN settlement agreement | Investor
Line of Credit Facility [Line Items]
Litigation settlement award from other party		$ 8,200,000
Reserve for future claims		$ 4,000,000
Reserve for future claims, percentage to be released		50.00%
Reserve for future claims, amount to be released		$ 2,000,000
AmTRAN Technology Co., Ltd. | VIZIO
Line of Credit Facility [Line Items]
Beneficial holder, percentage of common stock, more than		5.00%