Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2021 | May 13, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-38246 | |
Entity Registrant Name | Vivint Smart Home, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 98-1380306 | |
Entity Address, Address Line One | 4931 North 300 West | |
Entity Address, City or Town | Provo | |
Entity Address, State or Province | UT | |
Entity Address, Postal Zip Code | 84604 | |
City Area Code | (801) | |
Local Phone Number | 377-9111 | |
Title of 12(b) Security | Class A common stock, par value $0.0001 per share | |
Trading Symbol | VVNT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 208,670,866 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0001713952 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 274,344 | $ 313,799 |
Accounts and notes receivable, net | 66,985 | 64,697 |
Inventories | 80,296 | 47,299 |
Prepaid expenses and other current assets | 26,175 | 14,338 |
Total current assets | 447,800 | 440,133 |
Property, plant and equipment, net | 51,644 | 52,379 |
Capitalized contract costs, net | 1,290,176 | 1,318,498 |
Deferred financing costs, net | 1,567 | 1,667 |
Intangible assets, net | 96,666 | 111,474 |
Goodwill | 837,386 | 837,077 |
Operating lease right-of-use assets | 50,486 | 52,880 |
Long-term notes receivables and other assets, net | 57,534 | 62,510 |
Total assets | 2,833,259 | 2,876,618 |
Current Liabilities: | ||
Accounts payable | 121,505 | 85,656 |
Accrued payroll and commissions | 47,063 | 87,943 |
Accrued expenses and other current liabilities | 233,020 | 247,324 |
Deferred revenue | 334,154 | 321,143 |
Current portion of notes payable, net | 9,500 | 9,500 |
Current portion of operating lease liabilities | 12,062 | 12,135 |
Current portion of finance lease liabilities | 3,208 | 3,356 |
Total current liabilities | 760,512 | 767,057 |
Notes payable, net | 2,350,284 | 2,372,235 |
Notes payable, net - related party | 464,290 | 443,865 |
Revolving credit facility | 0 | 0 |
Finance lease liabilities, net of current portion | 1,701 | 2,460 |
Deferred revenue, net of current portion | 622,287 | 615,598 |
Operating lease liabilities | 47,081 | 49,692 |
Warrant derivative liabilities | 45,568 | 75,531 |
Other long-term obligations | 124,948 | 121,235 |
Deferred income tax liability | 557 | 2,168 |
Total liabilities | 4,417,228 | 4,449,841 |
Commitments and contingencies (See Note 12) | ||
Stockholders’ deficit: | ||
Class A Common stock, $0.0001 par value, 3,000,000,000 shares authorized; 208,670,866 and 202,216,341 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively | 21 | 20 |
Preferred stock, $0.0001 par value, 300,000,000 shares authorized; none issued and outstanding as of March 31, 2021 and December 31, 2020, respectively | 0 | 0 |
Additional paid-in capital | 1,625,027 | 1,548,786 |
Accumulated deficit | (3,182,600) | (3,095,220) |
Accumulated other comprehensive loss | (26,417) | (26,809) |
Total stockholders’ deficit | (1,583,969) | (1,573,223) |
Total liabilities and stockholders’ deficit | $ 2,833,259 | $ 2,876,618 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 | Jan. 17, 2020 |
Statement of Financial Position [Abstract] | |||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |
Common stock, authorized (in shares) | 3,000,000,000 | 3,000,000,000 | |
Common stock, issued (in shares) | 208,670,866 | 202,216,341 | |
Common stock, outstanding (in shares) | 208,670,866 | 202,216,341 | 154,730,618 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |
Preferred stock, shares authorized (in shares) | 300,000,000 | 300,000,000 | |
Preferred stock, shares issued (in shares) | 0 | 0 | |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues: | ||
Recurring and other revenue | $ 343,293 | $ 303,232 |
Costs and expenses: | ||
Operating expenses (exclusive of depreciation and amortization shown separately below) | 96,531 | 83,160 |
Selling expenses (exclusive of amortization of deferred commissions of $52,078 and $32,466, respectively, which are included in depreciation and amortization shown separately below) | 114,541 | 50,723 |
General and administrative expenses | 66,348 | 50,423 |
Depreciation and amortization | 146,912 | 139,249 |
Restructuring expenses | 0 | 20,941 |
Total costs and expenses | 424,332 | 344,496 |
Loss from operations | (81,039) | (41,264) |
Other expenses (income): | ||
Interest expense | 49,803 | 65,293 |
Interest income | (44) | (229) |
Change in fair value of warrant liabilities | (29,103) | 16,717 |
Other (income) expense, net | (14,559) | 22,839 |
Loss before income taxes | (87,136) | (145,884) |
Income tax expense (benefit) | 244 | (788) |
Net loss | $ (87,380) | $ (145,096) |
Net loss attributable per share to common stockholders: | ||
Basic (in dollars per share) | $ (0.42) | $ (0.96) |
Diluted (in dollars per share) | $ (0.56) | $ (0.96) |
Weighted-average shares used in computing net loss attributable per share to common stockholders: | ||
Basic (in shares) | 206,791,625 | 151,010,847 |
Diluted (in shares) | 208,989,080 | 151,010,847 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations (unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Amortization of deferred commissions | $ 52,078 | $ 32,466 |
Change in fair value of warrant liabilities | $ (29,103) | $ 16,717 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Loss (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (87,380) | $ (145,096) |
Other comprehensive income (loss), net of tax effects: | ||
Foreign currency translation adjustment | 392 | (2,429) |
Total other comprehensive income (loss) | 392 | (2,429) |
Comprehensive loss | $ (86,988) | $ (147,525) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Equity (Deficit) Statement - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Stockholders' equity, beginning balance (in shares) at Dec. 31, 2019 | 94,937,597 | ||||
Stockholders' equity, beginning balance at Dec. 31, 2019 | $ (1,787,358) | $ 9 | $ 740,121 | $ (2,500,022) | $ (27,466) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Recapitalization transaction (in shares) | 59,793,021 | ||||
Recapitalization transaction | 422,248 | $ 6 | 422,242 | ||
Issuance of earnout shares (in shares) | 23,196,214 | ||||
Issuance of earnout shares | 0 | $ 3 | (3) | ||
Tax withholdings related to net share settlement of equity awards (in shares) | (52,981) | ||||
Tax withholdings related to net share settlement of equity awards | (1,198) | $ 0 | (1,198) | ||
Forfeited shares (in shares) | (161,941) | ||||
Net Loss | (145,096) | (145,096) | |||
Foreign currency translation adjustment | (2,429) | (2,429) | |||
Stock-based compensation | 10,791 | 10,791 | |||
Restructuring expenses | 11,106 | 11,106 | |||
Stockholders' equity, ending balance (in shares) at Mar. 31, 2020 | 177,711,910 | ||||
Stockholders' equity, ending balance at Mar. 31, 2020 | (1,491,936) | $ 18 | 1,183,059 | (2,645,118) | (29,895) |
Stockholders' equity, beginning balance (in shares) at Dec. 31, 2020 | 202,216,341 | ||||
Stockholders' equity, beginning balance at Dec. 31, 2020 | (1,573,223) | $ 20 | 1,548,786 | (3,095,220) | (26,809) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of earnout shares (in shares) | 1,237,211 | ||||
Issuance of earnout shares | $ 0 | 0 | |||
Tax withholdings related to net share settlement of equity awards (in shares) | (1,663,202) | ||||
Tax withholdings related to net share settlement of equity awards | (28,735) | (28,735) | |||
Forfeited shares (in shares) | (17,198) | ||||
Warrants exercised (in shares) | 825,016 | ||||
Warrants exercised | 19,743 | 19,743 | |||
Issuance of common stock upon exercise or vesting of equity awards (in shares) | 6,072,698 | ||||
Issuance of common stock upon exercise or vesting of equity awards | 1 | $ 1 | |||
Net Loss | (87,380) | (87,380) | |||
Foreign currency translation adjustment | 392 | 392 | |||
Stock-based compensation | 85,233 | 85,233 | |||
Stockholders' equity, ending balance (in shares) at Mar. 31, 2021 | 208,670,866 | ||||
Stockholders' equity, ending balance at Mar. 31, 2021 | $ (1,583,969) | $ 21 | $ 1,625,027 | $ (3,182,600) | $ (26,417) |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (87,380) | $ (145,096) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Amortization of capitalized contract costs | 127,768 | 116,143 |
Amortization of customer relationships | 14,521 | 16,476 |
Depreciation and amortization of property, plant and equipment and other intangible assets | 4,623 | 6,630 |
Amortization of deferred financing costs and bond premiums and discounts | 949 | 951 |
Loss on sale or disposal of assets | 19 | 365 |
(Gain) loss on warrant derivative liabilities | (29,103) | 16,717 |
Loss on early extinguishment of debt | 0 | 12,710 |
Expensed issuance costs | 0 | 723 |
Stock-based compensation | 85,251 | 10,791 |
Provision for doubtful accounts | 4,712 | 8,083 |
Deferred income taxes | (4,953) | (1,095) |
Non-cash restructuring expenses | 0 | 11,106 |
Changes in operating assets and liabilities: | ||
Accounts and notes receivable, net | (7,454) | (20,656) |
Inventories | (32,985) | (15,526) |
Prepaid expenses and other current assets | (11,894) | (4,445) |
Capitalized contract costs, net | (98,923) | (84,532) |
Long-term notes receivables, other assets, net | 8,494 | 7,121 |
Right-of-use assets | 2,394 | 1,487 |
Accounts payable | 36,521 | 39,990 |
Accrued payroll and commissions, accrued expenses, and other current and long-term liabilities | (43,457) | (18,384) |
Current and long-term operating lease liabilities | (2,684) | (1,687) |
Deferred revenue | 19,425 | 9,259 |
Net cash used in operating activities | (14,156) | (32,869) |
Cash flows from investing activities: | ||
Capital expenditures | (4,647) | (2,867) |
Proceeds associated with disposal of capital assets | 99 | 1,287 |
Acquisition of intangible assets | 0 | (321) |
Net cash used in investing activities | (4,548) | (1,901) |
Cash flows from financing activities: | ||
Proceeds from notes payable | 0 | 1,241,000 |
Proceeds from notes payable - related party | 0 | 309,000 |
Repayment of notes payable | (2,375) | (1,572,374) |
Repayment of notes payable - related party | 0 | (174,800) |
Borrowings from revolving credit facility | 0 | 190,000 |
Taxes paid related to net share settlements of stock-based compensation awards | (28,701) | (1,011) |
Repayments on revolving credit facility | 0 | (270,000) |
Proceeds from warrant exercises | 10,819 | 0 |
Proceeds from Mosaic recapitalization | 0 | 465,087 |
Repayments of finance lease obligations | (500) | (2,243) |
Financing costs | 0 | (11,061) |
Deferred financing costs | 0 | (11,937) |
Net cash (used in) provided by financing activities | (20,757) | 161,661 |
Effect of exchange rate changes on cash | 6 | (351) |
Net (decrease) increase in cash and cash equivalents | (39,455) | 126,540 |
Cash and cash equivalents: | ||
Beginning of period | 313,799 | 4,549 |
End of period | $ 274,344 | $ 131,089 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows (unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Supplemental non-cash investing and financing activities: | ||
Finance lease additions | $ 413 | $ 592 |
Intangible asset acquisitions included within accounts payable, accrued expenses and other current liabilities and other long-term obligations | 382 | 1,448 |
Capital expenditures included within accounts payable | 1,553 | 1,869 |
Reclassification of warrant derivative liability for exercised warrants | 8,924 | 0 |
Debt and equity financing costs included within accounts payable | $ 0 | $ 2,455 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies Unaudited Interim Financial Statements The accompanying interim unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q have been prepared by the Company without audit. The accompanying consolidated financial statements include the accounts of Vivint Smart Home, Inc. and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. The information as of December 31, 2020 included in the unaudited condensed consolidated balance sheets was derived from the Company’s audited consolidated financial statements. The unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q were prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments (all of which are considered of a normal recurring nature) considered necessary to present fairly the Company’s financial position, results of operations and cash flows for the periods and dates presented. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. Preparing financial statements requires the Company to make estimates and assumptions that affect the amounts that are reported in the condensed consolidated financial statements and accompanying disclosures. Although these estimates are based on the Company’s best knowledge of current events and actions that the Company may undertake in the future, actual results may be different from the Company’s estimates. The results of operations presented herein are not necessarily indicative of the Company’s results for any future period. These unaudited condensed consolidated financial statements and notes should be read in conjunction with the Company’s audited consolidated financial statements and related notes as set forth in the Company’s Annual Report on Form 10-K/A for the fiscal year ended December 31, 2020, as filed with the Securities and Exchange Commission (“SEC”) on May 12, 2021, which is available on the SEC’s website at www.sec.gov. Certain prior period balances were conformed to the restated financial statements, as previously disclosed in the Company's Annual Report on Form 10-K/A for the year ended December 31, 2020, due to the accounting for warrant liabilities. Basis of Presentation On January 17, 2020 (the “Closing Date”), the Company consummated the previously announced merger pursuant to that certain Agreement and Plan of Merger, dated September 15, 2019, by and among the Company, Merger Sub, and Legacy Vivint Smart Home, as amended by Amendment No. 1 to the Agreement and Plan of Merger, dated as of December 18, 2019, by and among the Company, Merger Sub and Legacy Vivint Smart Home. (See Note 5 “Business Combination” for further discussion). Pursuant to the terms of the Merger Agreement, a business combination between the Company and Legacy Vivint Smart Home was effected through the merger of Merger Sub with and into Legacy Vivint Smart Home, with Legacy Vivint Smart Home surviving as the surviving company (the “Business Combination”). Notwithstanding the legal form of the Business Combination pursuant to the Merger Agreement, the Business Combination is accounted for as a reverse recapitalization in accordance with GAAP. Under this method of accounting, Vivint Smart Home, Inc. is treated as the acquired company and Legacy Vivint Smart Home is treated as the acquirer for financial statement reporting and accounting purposes. Legacy Vivint Smart Home has been determined to be the accounting acquirer based on evaluation of the following facts and circumstances: • Legacy Vivint Smart Home’s shareholders prior to the Business Combination have the greatest voting interest in the combined entity; • the largest individual shareholder of the combined entity was an existing shareholder of Legacy Vivint Smart Home; • Legacy Vivint Smart Home’s directors represent the majority of the Vivint Smart Home board of directors; • Legacy Vivint Smart Home’s senior management is the senior management of Vivint Smart Home; and • Legacy Vivint Smart Home is the larger entity based on historical total assets and revenues. As a result of Legacy Vivint Smart Home being the accounting acquirer, the financial reports filed with the SEC by the Company subsequent to the Business Combination are prepared “as if” Legacy Vivint Smart Home is the predecessor and legal successor to the Company. The historical operations of Legacy Vivint Smart Home are deemed to be those of the Company. Thus, the financial statements included in this report reflect (i) the historical operating results of Legacy Vivint Smart Home prior to the Business Combination; (ii) the combined results of the Company and Legacy Vivint Smart Home following the Business Combination on January 17, 2020; (iii) the assets and liabilities of Legacy Vivint Smart Home at their historical cost; and (iv) the Company’s equity structure for all periods presented. The recapitalization of the number of shares of common stock attributable to the purchase of Legacy Vivint Smart Home in connection with the Business Combination is reflected retroactively to the earliest period presented and will be utilized for calculating earnings per share in all prior periods presented. No step-up basis of intangible assets or goodwill was recorded in the Business Combination transaction consistent with the treatment of the transaction as a reverse recapitalization of Legacy Vivint Smart Home. In connection with the Business Combination, Mosaic Acquisition Corp. changed its name to Vivint Smart Home, Inc. The Company’s Common Stock is now listed on the NYSE under the symbol “VVNT” and warrants to purchase the Common Stock at an exercise price of $11.50 per share are listed on the NYSE under the symbol “VVNT WS”. Prior to the Business Combination, the Company neither engaged in any operations nor generated any revenue. Until the Business Combination, based on the Company’s business activities, it was a “shell company” as defined under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Vivint Flex Pay The Vivint Flex Pay plan (“Vivint Flex Pay”) became the Company’s primary equipment financing model beginning in March 2017. Under Vivint Flex Pay, customers pay separately for the products (including control panel, security peripheral equipment, smart home equipment, and related installation) (“Products”) and Vivint’s smart home and security services (“Services”). The customer has the following three ways to pay for the Products: (1) qualified customers in the United States may finance the purchase of Products through third-party financing providers (“Consumer Financing Program” or “CFP”), (2) the Company offers to a limited number of customers not eligible for the CFP, but who qualify under the Company's underwriting criteria, the option to enter into a retail installment contract (“RIC”) directly with Vivint, or (3) customers may purchase the Products at the outset of the service contract by check, automatic clearing house payments (“ACH”), credit or debit card. Although customers pay separately for Products and Services under the Vivint Flex Pay plan, the Company has determined that the sale of Products and Services are one single performance obligation. As a result, all forms of transactions under Vivint Flex Pay create deferred revenue for the gross amount of Products sold. For RICs, gross deferred revenues are reduced by imputed interest and estimated write-offs. For Products financed through the CFP, gross deferred revenues are reduced by (i) any fees the third-party financing provider (“Financing Provider”) is contractually entitled to receive at the time of loan origination, and (ii) the present value of expected future payments due to Financing Providers. Under the CFP, qualified customers are eligible for financing offerings (“Loans”) originated by Financing Providers of between $150 and $6,000. The terms of most Loans are determined based on the customer's credit quality. The annual percentage rates on these Loans is either 0% or 9.99%, depending on the customer's credit quality, and are either installment or revolving loans with repayment terms ranging from 6- to 60-months. For certain Financing Provider Loans, the Company pays a monthly fee based on either the average daily outstanding balance of the installment loans, or the number of outstanding Loans. For certain Loans, the Company incurs fees at the time of the loan origination and receives proceeds that are net of these fees. For certain Loans, the Company also shares liability for credit losses, with the Company being responsible for between 2.6% and 100% of lost principal balances. Additionally, the Company is responsible for reimbursing certain Financing Providers for merchant transaction fees and other fees associated with the Loans. Because of the nature of these provisions, the Company records a derivative liability at its fair value when the Financing Provider originates loans to customers, which reduces the amount of estimated revenue recognized on the provision of the services. The derivative liability is reduced as payments are made by the Company to the Financing Provider. Subsequent changes to the fair value of the derivative liability are realized through other expenses (income), net in the unaudited condensed consolidated statement of operations. (see Note 9 “Financial Instruments” for additional information). For certain other Loans, the Company receives net proceeds (net of fees and expected losses) for which the Company has no further obligation to the Financing Provider. The Company records these net proceeds to deferred revenue. For other third-party loans, the Company receives net proceeds (net of fees and expected losses) for which the Company has no further obligation to the third-party. The Company records these net proceeds to deferred revenue. Retail Installment Contract Receivables For subscribers that enter into a RIC to finance the purchase of Products and related installation, the Company records a receivable for the amount financed. Gross RIC receivables are reduced for (i) expected write-offs of uncollectible balances over the term of the RIC and (ii) a present value discount of the expected cash flows using a risk adjusted market interest rate. Therefore, the RIC receivables equal the present value of the expected cash flows to be received by the Company over the term of the RIC, evaluated on a pool basis. RICs are pooled based on customer credit quality, contract length and geography. At the time of installation, the Company records a long-term note receivable within long-term notes receivables and other assets, net on the unaudited condensed consolidated balance sheets for the present value of the receivables that are expected to be collected beyond 12 months of the reporting date. The unbilled receivable amounts that are expected to be collected within 12 months of the reporting date are included as a short-term notes receivable within accounts and notes receivable, net on the unaudited condensed consolidated balance sheets. The billed amounts of notes receivables are included in accounts receivable within accounts and notes receivable, net on the unaudited condensed consolidated balance sheets. The Company imputes the interest on the RIC receivable using a risk adjusted market interest rate and records it as a reduction to deferred revenue and as an adjustment to the face amount of the related receivable. The risk adjusted interest rate considers a number of factors, including credit quality of the subscriber base and other qualitative considerations such as macro-economic factors. The imputed interest income is recognized over the term of the RIC contract as recurring and other revenue on the unaudited condensed consolidated statements of operations. When the Company determines that there are RIC receivables that have become uncollectible, it records an adjustment to the allowance and reduces the related note receivable balance. On a regular basis, the Company also assesses the expected remaining cash flows based on historical RIC write-off trends, current market conditions and both Company and third-party forecast data. If the Company determines there is a change in expected remaining cash flows, the total amount of this change for all RICs is recorded in the current period to the provision for credit losses, which is included in general and administrative expenses in the accompanying unaudited condensed consolidated statements of operations. Account balances are written-off if collection efforts are unsuccessful and future collection is unlikely based on the length of time from the day accounts become past due. Accounts Receivable Accounts receivable consists primarily of amounts due from subscribers for recurring monthly monitoring Services, amounts due from third-party financing providers and the billed portion of RIC receivables. The accounts receivable are recorded at invoiced amounts and are non-interest bearing and are included within accounts and notes receivable, net on the unaudited condensed consolidated balance sheets. Accounts receivable totaled $22.1 million and $19.8 million at March 31, 2021 and December 31, 2020, respectively, net of the allowance for doubtful accounts of $8.1 million and $9.9 million at March 31, 2021 and December 31, 2020, respectively. The Company estimates this allowance based on historical collection experience, subscriber attrition rates, current market conditions and both Company and third-party forecast data. When the Company determines that there are accounts receivable that are uncollectible, they are charged off against the allowance for doubtful accounts. The provision for doubtful accounts is included in general and administrative expenses in the accompanying unaudited condensed consolidated statements of operations and totaled $4.7 million and $8.1 million for the three months ended March 31, 2021 and 2020, respectively. The changes in the Company’s allowance for accounts receivable were as follows for the periods ended (in thousands): Three Months Ended March 31, 2021 2020 Beginning balance $ 9,911 $ 8,118 Provision for doubtful accounts 4,712 8,083 Write-offs and adjustments (6,498) (7,730) Balance at end of period $ 8,125 $ 8,471 Revenue Recognition The Company offers its customers smart home services combining Products, including a proprietary control panel, door and window sensors, door locks, cameras and smoke alarms; installation; and a proprietary back-end cloud platform software and Services. These together create an integrated system that allows the Company’s customers to monitor, control and protect their home (“Smart Home Services”). The Company’s customers are buying this integrated system that provides them with these Smart Home Services. The number and type of Products purchased by a customer depends on their desired functionality. Because the Products and Services included in the customer’s contract are integrated and highly interdependent, and because they must work together to deliver the Smart Home Services, the Company has concluded that installed Products, related installation and Services contracted for by the customer are generally not distinct within the context of the contract and, therefore, constitute a single, combined performance obligation. Revenues for this single, combined performance obligation are recognized on a straight-line basis over the customer’s contract term, which is the period in which the parties to the contract have enforceable rights and obligations. The Company has determined that certain contracts that do not require a long-term commitment for monitoring services by the customer contain a material right to renew the contract, because the customer does not have to purchase Products upon renewal. Proceeds allocated to the material right are recognized over the period of benefit, which is generally three years. The majority of the Company’s subscription contracts are between three Sales of Products and other one-time fees such as service or installation fees are invoiced to the customer at the time of sale. Revenues for the wireless internet service that were provided by the Company's former wireless internet business (“Wireless”) and any Products or Services that are considered separate performance obligations are recognized when those Products or Services are delivered. Taxes collected from customers and remitted to governmental authorities are not included in revenue. Payments received or amounts billed in advance of revenue recognition are reported as deferred revenue. Deferred Revenue The Company's deferred revenues primarily consist of amounts for sales (including upfront proceeds) of Smart Home Services. Deferred revenues are recognized over the term of the related performance obligation, which is generally three Capitalized Contract Costs Capitalized contract costs represent the costs directly related and incremental to the origination of new contracts, modification of existing contracts or to the fulfillment of the related subscriber contracts. These include commissions, other compensation and related costs incurred directly for the origination and installation of new or upgraded customer contracts, as well as the cost of Products installed in the customer home at the commencement or modification of the contract. The Company calculates amortization by accumulating all deferred contract costs into separate portfolios based on the initial month of service and amortizes those deferred contract costs on a straight-line basis over the expected period of benefit that the Company has determined to be five years, consistent with the pattern in which the Company provides services to its customers. The Company believes this pattern of amortization appropriately reduces the carrying value of the capitalized contract costs over time to reflect the decline in the value of the assets as the remaining period of benefit for each monthly portfolio of contracts decreases. The period of benefit of five years is longer than a typical contract term because of anticipated contract renewals. The Company applies this period of benefit to its entire portfolio of contracts. The Company updates its estimate of the period of benefit periodically and whenever events or circumstances indicate that the period of benefit could change significantly. Such changes, if any, are accounted for prospectively as a change in estimate. Amortization of capitalized contract costs is included in “Depreciation and Amortization” on the consolidated statements of operations. The carrying amount of the capitalized contract costs is periodically reviewed for impairment. In performing this review, the Company considers whether the carrying amount of the capitalized contract costs will be recovered. In estimating the amount of consideration the Company expects to receive in the future related to capitalized contract costs, the Company considers factors such as attrition rates, economic factors, and industry developments, among other factors. If it is determined that capitalized contract costs are impaired, an impairment loss is recognized for the amount by which the carrying amount of the capitalized contract costs and the anticipated costs that relate directly to providing the future services exceed the consideration that has been received and that is expected to be received in the future. Contract costs not directly related and incremental to the origination of new contracts, modification of existing contracts or to the fulfillment of the related subscriber contracts are expensed as incurred. These costs include those associated with housing, marketing and recruiting, non-direct lead generation costs, certain portions of sales commissions and residuals, overhead and other costs considered not directly and specifically tied to the origination of a particular subscriber. On the unaudited condensed consolidated statement of cash flows, capitalized contract costs are classified as operating activities and reported as “Capitalized contract costs – deferred contract costs” as these assets represent deferred costs associated with subscriber contracts. Cash and Cash Equivalents Cash and cash equivalents consists of highly liquid investments with remaining maturities when purchased of three months or less. Inventories Inventories, which are comprised of smart home and security system equipment and parts are stated at the lower of cost or net realizable value with cost determined under the first-in, first-out (“FIFO”) method. Inventories sold to customers as part of a smart home and security system are generally capitalized as contract costs. The Company adjusts the inventory balance based on anticipated obsolescence, usage and historical write-offs. Property, Plant and Equipment and Long-lived Assets Property, plant and equipment are stated at cost and depreciated on the straight-line method over the estimated useful lives of the assets or the lease term for assets under finance leases, whichever is shorter. Intangible assets with definite lives are amortized over the remaining estimated economic life of the underlying technology or relationships, which ranges from 2 to 10 years. Definite-lived intangible assets are amortized on the straight-line method over the estimated useful life of the asset or in a pattern in which the economic benefits of the intangible asset are consumed. Amortization expense associated with leased assets is included in depreciation expense. Routine repairs and maintenance are charged to expense as incurred. The Company reviews long-lived assets, including property, plant and equipment, capitalized contract costs, and definite-lived intangibles for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company considers whether or not indicators of impairment exist on a regular basis and as part of each quarterly and annual financial statement close process. Factors the Company considers in determining whether or not indicators of impairment exist include market factors and patterns of customer attrition. If indicators of impairment are identified, the Company estimates the fair value of the assets. An impairment loss is recognized if the carrying amount of a long-lived asset is not recoverable and exceeds its fair value. The Company conducts an indefinite-lived intangible impairment analysis annually as of October 1, and as necessary if changes in facts and circumstances indicate that the fair value of the Company’s indefinite-lived intangibles may be less than the carrying amount. When indicators of impairment do not exist and certain accounting criteria are met, the Company is able to evaluate indefinite-lived intangible impairment using a qualitative approach. When necessary, the Company’s quantitative impairment test consists of two steps. The first step requires that the Company compare the estimated fair value of its indefinite-lived intangibles to the carrying value. If the fair value is greater than the carrying value, the intangibles are not considered to be impaired and no further testing is required. If the fair value is less than the carrying value, an impairment loss in an amount equal to the difference is recorded. During the three months ended March 31, 2021 and 2020, no impairments to long-lived assets or intangibles were recorded. The Company’s depreciation and amortization included in the consolidated statements of operations consisted of the following (in thousands): Three Months Ended March 31, 2021 2020 Amortization of capitalized contract costs $ 127,769 $ 116,141 Amortization of definite-lived intangibles 15,018 17,441 Depreciation of property, plant and equipment 4,125 5,667 Total depreciation and amortization $ 146,912 $ 139,249 Leases The Company determines if an arrangement is a lease at inception. Lease right-of-use (“ROU”) assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. In determining the present value of lease payments, the Company uses the implicit rate when available. When implicit rates are not available, the Company uses an incremental borrowing rate based on the information available at commencement date. The lease ROU asset also includes any lease payments made and is reduced by lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company does not record lease ROU assets and liabilities for leases with terms of 12 months or less. Leases are classified as either operating or finance at lease inception. Operating lease assets and liabilities and finance lease liabilities are stated separately on the unaudited condensed consolidated balance sheets. Finance lease assets are included in property, plant and equipment, net on the unaudited condensed consolidated balance sheets. The Company has lease agreements with lease and non-lease components. For facility type leases, the Company separates the lease and non-lease components. Generally, the Company accounts for the lease and non-lease components as a single lease component for all other class of leases. Deferred Financing Costs Certain costs incurred in connection with obtaining debt financing are deferred and amortized utilizing the straight-line method, which approximates the effective-interest method, over the life of the related financing. Deferred financing costs associated with obtaining APX Group, Inc.’s (“APX”) revolving credit facility are amortized over the amended maturity dates discussed in Note 3 “Long-Term Debt.” Deferred financing costs associated with the revolving credit facility reported in the accompanying unaudited condensed consolidated balance sheets within deferred financing costs, net at March 31, 2021 and December 31, 2020 were $1.6 million and $1.7 million, net of accumulated amortization of $11.1 million and $11.0 million, respectively. Deferred financing costs included in the accompanying unaudited condensed consolidated balance sheets within notes payable, net at March 31, 2021 and December 31, 2020 were $25.3 million and $27.2 million, net of accumulated amortization of $72.7 million and $70.9 million, respectively. Amortization expense on deferred financing costs recognized and included in interest expense in the accompanying unaudited condensed consolidated statements of operations, totaled $1.9 million and $2.1 million for the three months ended March 31, 2021 and 2020, respectively (See Note 3 “Long-Term Debt” for additional detail). Residual Income Plans The Company has a program that allows certain third-party sales channel partners to receive additional compensation based on the performance of the underlying contracts they create (the “Channel Partner Plan”). The Company also has a residual sales compensation plan (the “Residual Plan”) under which the Company's sales personnel (each, a “Plan Participant”) receive compensation based on the performance of certain underlying contracts they created in prior years. For both the Channel Partner Plan and Residual Plan, the Company calculates the present value of the expected future residual payments and records a liability for this amount in the period the subscriber account is originated. These costs are recorded to capitalized contract costs. The Company monitors actual payments and customer attrition on a periodic basis and, when necessary, makes adjustments to the liability. The current portion of the liability included in accrued payroll and commissions was $4.2 million and $4.1 million at March 31, 2021 and December 31, 2020, respectively, and the noncurrent portion included in other long-term obligations was $23.8 million and $23.8 million at March 31, 2021 and December 31, 2020, respectively. Stock-Based Compensation The Company measures compensation cost based on the grant-date fair value of the award and recognizes that cost over the requisite service period of the awards (See Note 11 “Stock-Based Compensation and Equity” for additional details). Advertising Expense Advertising costs are expensed as incurred. Advertising costs were $16.8 million and $12.8 million for the three months ended March 31, 2021 and 2020, respectively. Income Taxes The Company accounts for income taxes based on the asset and liability method. Under the asset and liability method, deferred tax assets and deferred tax liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Valuation allowances are established when necessary to reduce deferred tax assets when it is determined that it is more likely than not that some portion, or all, of the deferred tax asset will not be realized. The Company recognizes the effect of an uncertain income tax position on the income tax return at the largest amount that is more likely than not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. The Company’s policy for recording interest and penalties is to record such items as a component of the provision for income taxes. Changes in tax laws and rates could also affect recorded deferred tax assets and liabilities in the future. The Company records the effect of a tax rate or law change on the Company’s deferred tax assets and liabilities in the period of enactment. Future tax rate or law changes could have a material effect on the Company’s results of operations, financial condition, or cash flows. Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist principally of receivables and cash. At times during the year, the Company maintains cash balances in excess of insured limits. The Company is not dependent on any single customer or geographic location. The loss of a customer would not adversely impact the Company’s operating results or financial position. Concentrations of Supply Risk As of March 31, 2021, approximately 93% of the Company’s installed panels were the Company's proprietary SkyControl or Smart Hub panels and 7% were 2GIG Go!Control panels. The loss of the Company's SkyControl or Smart Hub panel suppliers could potentially impact its operating results or financial position. Fair Value Measurement Fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities subject to on-going fair value measurement are categorized and disclosed into one of three categories depending on observable or unobservable inputs employed in the measurement. These two types of inputs have created the following fair value hierarchy: Level 1: Quoted prices in active markets that are accessible at the measurement date for assets and liabilities. Level 2: Observable prices that are based on inputs not quoted in active markets, but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. This hierarchy requires the Company to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value. The Company recognizes transfers between levels of the hierarchy based on the fair values of the respective financial measurements at the end of the reporting period in which the transfer occurred. There were no transfers between levels of the fair value hierarchy during the three months ended March 31, 2021 and 2020. The carrying amounts of the Company’s accounts receivable, accounts payable and accrued and other liabilities approximate their fair values due to their short maturities. Goodwill The |
Revenue and Capitalized Contrac
Revenue and Capitalized Contract Costs | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue and Capitalized Contract Costs | Revenue and Capitalized Contract Costs Customers are typically invoiced for Smart Home Services in advance or at the time the Company delivers the related Smart Home Services. The majority of customers pay at the time of invoice via credit card, debit card or ACH. Deferred revenue relates to the advance consideration received from customers, which precedes the Company’s satisfaction of the associated performance obligation. The Company’s deferred revenues primarily result from customer payments received in advance for recurring monthly monitoring and other Smart Home Services, or other one-time fees, because these performance obligations are satisfied over time. The Company also provides its customers with service warranties associated with product replacement and related services for the first 30 days after the generation and installation of new or modified customer contracts. These are considered a separate performance obligation and are determined to be satisfied upon completion of the warranty period. As of March 31, 2021 and December 31, 2020, the Company had warranty service reserves of $5.6 million and $5.7 million, respectively, which are included in accrued expenses and other current liabilities on the condensed consolidated balance sheets. During the three months ended March 31, 2021 and 2020, the Company recognized revenues of $116.2 million and $133.5 million, respectively, that were included in the deferred revenue balance as of December 31, 2020 and 2019, respectively. Transaction Price Allocated to the Remaining Performance Obligations As of March 31, 2021, approximately $3.0 billion of revenue is expected to be recognized from remaining performance obligations for subscription contracts. The Company expects to recognize approximately 62% of the revenue related to these remaining performance obligations over the next 24 months, with the remaining balance recognized over an additional 36 months. Timing of Revenue Recognition The Company considers Products, related installation, and its proprietary back-end cloud platform software and services an integrated system that allows the Company’s customers to monitor, control and protect their homes. These Smart Home Services are accounted for as a single performance obligation that is recognized over the customer’s contract term, which is generally three Capitalized Contract Costs |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt The Company’s debt at March 31, 2021 and December 31, 2020 consisted of the following (in thousands): March 31, 2021 Outstanding Unamortized Unamortized Deferred Financing Costs (1) Net Carrying Long-Term Debt: 7.875% Senior Secured Notes Due 2022 $ 677,000 $ 6,905 $ (4,084) $ 679,821 7.625% Senior Notes Due 2023 400,000 — (2,031) 397,969 8.500% Senior Secured Notes Due 2024 225,000 — (3,304) 221,696 6.750% Senior Secured Notes Due 2027 600,000 — (5,537) 594,463 Senior Secured Term Loan - noncurrent 931,000 — (10,375) 920,625 Total Long-Term Debt 2,833,000 6,905 (25,331) 2,814,574 Senior Secured Term Loan - current 9,500 — — 9,500 Total Debt $ 2,842,500 $ 6,905 $ (25,331) $ 2,824,074 December 31, 2020 Outstanding Unamortized Unamortized Deferred Financing Costs (1) Net Carrying Long-Term Debt: 7.875% Senior Secured Notes due 2022 $ 677,000 $ 7,885 $ (4,697) $ 680,188 7.625% Senior Notes Due 2023 400,000 — (2,241) 397,759 8.500% Senior Secured Notes Due 2024 225,000 — (3,530) 221,470 6.750% Senior Secured Notes Due 2027 600,000 — (5,771) 594,229 Senior Secured Term Loan - noncurrent 933,375 — (10,921) 922,454 Total Long-Term Debt 2,835,375 7,885 (27,160) 2,816,100 Current Debt: Senior Secured Term Loan - current 9,500 — — 9,500 Total Debt $ 2,844,875 $ 7,885 $ (27,160) $ 2,825,600 (1) Unamortized deferred financing costs related to the revolving credit facilities included in deferred financing costs, net on the condensed consolidated balance sheets at March 31, 2021 and December 31, 2020 were $1.6 million and $1.7 million, respectively. 2022 Notes As of March 31, 2021, APX Group, Inc., a wholly owned subsidiary of the Company (“APX”) had $677.0 million outstanding aggregate principal amount of 7.875% senior secured notes due 2022 (the “2022 notes”). The 2022 notes will mature on December 1, 2022, or on such earlier date when any outstanding pari passu lien indebtedness matures as a result of the operation of any “Springing Maturity” provision set forth in the agreements governing such pari passu lien indebtedness. The 2022 notes are secured, on a pari passu basis, by the collateral securing obligations under the 2024 notes (as defined below), the revolving credit facilities and the Term Loan, in all cases, subject to certain exceptions and permitted liens. 2023 Notes As of March 31, 2021, APX had $400.0 million outstanding aggregate principal amount of the 7.625% senior notes due 2023 (the “2023 notes”) with a maturity date of September 1, 2023. 2024 Notes As of March 31, 2021, APX had $225.0 million outstanding aggregate principal amount of 8.50% senior secured notes due 2024 (the “2024 notes” and, together with the 2022 notes and the 2027 notes, the “existing senior secured notes”). The 2024 notes will mature on November 1, 2024, unless, under “Springing Maturity” provisions, on June 1, 2023 (the 91st day prior to the maturity of the 2023 notes) more than an aggregate principal amount of $125.0 million of such 2023 notes remain outstanding or have not been refinanced as permitted under the indenture for the 2023 notes, in which case the 2024 Notes will mature on June 1, 2023. The 2024 notes are secured, on a pari passu basis, by the collateral securing obligations under the existing senior secured notes, the revolving credit facilities and the Term Loan, in all each case, subject to certain exceptions and permitted liens. 2027 Notes As of March 31, 2021, APX had $600.0 million outstanding aggregate principal amount of 6.75% senior secured notes due 2027 (the “2027 notes” and, together with the 2022 notes, the 2023 notes and the 2024 notes the “Notes”). The 2027 notes will mature on February 15, 2027, unless, under “Springing Maturity” provisions on June 1, 2023 (the 91st day prior to the maturity of the 2023 notes) more than an aggregate principal amount of $125.0 million of such 2023 notes remain outstanding or have not been refinanced as permitted under the indenture governing the 2023 notes, in which case the 2027 Notes will mature on June 1, 2023. The 2027 notes are secured, on a pari passu basis, by the collateral securing obligations under the existing senior secured notes, the revolving credit facility and the Term Loan, in each case, subject to certain exceptions and permitted liens. Interest accrues at the rate of 7.875% per annum for the 2022 notes, 7.625% per annum for the 2023 notes, 8.50% per annum for the 2024 notes and 6.75% per annum for the 2027 notes. Interest on the 2022 notes is payable semiannually in arrears on June 1 and December 1 of each year. Interest on the 2023 notes is payable semiannually in arrears on March 1 and September 1 of each year. Interest on the 2024 notes is payable semiannually in arrears on May 1 and November 1 each year. Interest on the 2027 notes is payable semiannually in arrears on February 15 and August 15 each year. APX may redeem the Notes at the prices and on the terms specified in the applicable indenture. Term Loan As of March 31, 2021, APX had outstanding term loans in an aggregate principal amount of $940.5 million (the “Term Loan”) under its amended and restated credit agreement. APX is required to make quarterly amortization payments under the Term Loan in an amount equal to 0.25% of the aggregate principal amount of the Term Loan outstanding on the closing date thereof. The remaining outstanding principal amount of the Term Loan will be due and payable in full on December 31, 2025, unless, pursuant to a “Springing Maturity” provision on June 1, 2023 (the 91st day prior to the maturity of the 2023 notes) more than an aggregate principal amount of $125.0 million of such 2023 notes remain outstanding or have not been repaid or redeemed, in which case the Term Loan will mature on June 1, 2023. The Term Loan bears interest at a rate per annum equal to an applicable margin plus, at APX's option, either (1) the base rate determined by reference to the highest of (a) the federal funds rate plus 0.50%, (b) the prime rate of Bank of America, N.A. and (c) the LIBOR rate determined by reference to the costs of funds for U.S. dollar deposits for an interest period of one month, plus 1.00% or (2) the LIBOR rate determined by reference to the London interbank offered rate for dollars for the interest period relevant to such borrowing. The applicable margin for base rate-based borrowings is 4.0% per annum and the applicable margin for LIBOR rate-based borrowings is 5.0% per annum. APX may prepay the Term Loan on the terms specified in the credit agreement covering the Term Loan. Revolving Credit Facility In February 2020, APX amended and restated the credit agreement governing its existing senior secured revolving credit facility to provide for, among other things, (1) an increase in the aggregate commitments previously available to it to $350.0 million and (2) the extension of the maturity date with respect to certain of the previously available commitments. Borrowings under the amended and restated revolving credit facility bear interest at a rate per annum equal to an applicable margin plus, at APX’s option, either (1) the base rate determined by reference to the highest of (a) the Federal Funds rate plus 0.50%, (b) the prime rate of Bank of America, N.A. and (c) the LIBOR rate determined by reference to the costs of funds for U.S. dollar deposits for an interest period of one month, plus 1.00% or (2) the LIBOR rate determined by reference to the London interbank offered rate for dollars for the interest period relevant to such borrowing. The applicable margin for base rate-based borrowings under the Series C Revolving Commitments of approximately $330.8 million is 2.0% per annum. The applicable margin for LIBOR rate-based borrowings under the Series C Revolving Commitments is currently 3.0% per annum. The applicable margin for borrowings under the revolving credit facility is subject to one step-down of 25 basis points based on APX meeting a consolidated first lien net leverage ratio test at the end of each fiscal quarter. In addition to paying interest on outstanding principal under the revolving credit facility, APX is required to pay a quarterly commitment fee (which will be subject to one interest rate step-down of 12.5 basis points, based on APX meeting a consolidated first lien net leverage ratio test) to the lenders under the revolving credit facility in respect of the unutilized commitments thereunder. APX also pays customary letter of credit and agency fees. APX is not required to make any scheduled amortization payments under the revolving credit facility. The commitments under the revolving credit facility expired on March 31, 2021 with respect to the commitments under the Series A Revolving Credit Facility and Series B Revolving Credit Facility. The principal amount outstanding under the Series C Revolving Credit Commitments will be due and payable in full on February 14, 2025, unless “Springing Maturity” provisions apply. Under the “Springing Maturity” provisions, principal amounts outstanding will be due: • the 91st day prior to the maturity of the 2022 notes, if, on that date, more than an aggregate principal amount of $350.0 million of such 2022 notes remain outstanding or have not been repaid or redeemed with certain qualifying proceeds specified in the revolving credit facility, • the 91st day prior to the maturity of the 2023 notes, if, on that date, more than an aggregate principal amount of $125.0 million of such 2023 notes remain outstanding or have not been repaid or redeemed with certain qualifying proceeds specified in the revolving credit facility, • the 91st day prior to the maturity of the 2024 notes, if, on that date, more than an aggregate principal amount of $125.0 million of such 2024 notes remain outstanding or have not been repaid or redeemed with certain qualifying proceeds specified in the revolving credit facility. There were no outstanding borrowings under the revolving credit facility as of March 31, 2021 and December 31, 2020. As of March 31, 2021 the Company had $315.5 million of availability under the revolving credit facility (after giving effect to $15.3 million of letters of credit outstanding and no borrowings). Debt Modifications and Extinguishments The Company performs analyses on a creditor-by-creditor basis for debt modifications and extinguishments to determine if repurchased debt was substantially different than debt issued to determine the appropriate accounting treatment of associated issuance costs. As a result of these analyses, the following amounts of other expense and loss on extinguishment and deferred financing costs were recorded (in thousands): Original premium extinguished Previously deferred financing costs extinguished New financing costs Total other expense and loss on extinguishment Previously deferred financing costs rolled over New deferred financing costs Total deferred financing costs remaining after issuance Three months ended March 31, 2020 2027 Notes issuance - February 2020 $ (2,749) $ 4,033 $ 6,146 $ 7,430 $ 205 $ 6,346 $ 6,551 Term Loan issuance - February 2020 — 235 5,045 5,280 6,973 5,461 12,434 Total $ (2,749) $ 4,268 $ 11,191 $ 12,710 $ 7,178 $ 11,807 $ 18,985 Deferred financing costs are amortized to interest expense over the life of the issued debt. The Company had no debt issuances or related modification or extinguishment costs during the three months ended March 31, 2021. The following table presents deferred financing activity for the three months ended March 31, 2021 and 2020 (in thousands): Unamortized Deferred Financing Costs Balance December 31, 2020 Additions Early Extinguishment Amortized Balance March 31, 2021 Revolving Credit Facility $ 1,667 $ — $ — $ (100) $ 1,567 2020 Notes — — — — — 2022 Private Placement Notes — — — — — 2022 Notes 4,697 — — (613) 4,084 2023 Notes 2,241 — — (210) 2,031 2024 Notes 3,530 — — (226) 3,304 2027 Notes 5,771 — — (234) 5,537 Term Loan 10,921 — — (546) 10,375 Total Deferred Financing Costs $ 28,827 $ — $ — $ (1,929) $ 26,898 Unamortized Deferred Financing Costs Balance December 31, 2019 Additions Early Extinguishment Amortized Balance March 31, 2020 Revolving Credit Facility $ 1,123 $ 1,027 $ — $ (183) $ 1,967 2020 Notes 1,721 — (1,565) (156) — 2022 Private Placement Notes 451 (205) (221) (25) — 2022 Notes 9,532 — (2,247) (749) 6,536 2023 Notes 3,081 — — (210) 2,871 2024 Notes 4,431 — — (226) 4,205 2027 Notes — 6,551 — (78) 6,473 Term Loan 7,822 5,461 (235) (428) 12,620 Total Deferred Financing Costs $ 28,161 $ 12,834 $ (4,268) $ (2,055) $ 34,672 Guarantees All of the obligations under the credit agreement governing the revolving credit facility, the credit agreement governing the Term Loan and the debt agreements governing the Notes are guaranteed by Vivint Smart Home, Inc., APX Group Holdings, Inc., APX Group and each of APX Group's existing and future material wholly-owned U.S. restricted subsidiaries (subject to customary exclusions and qualifications). However, such subsidiaries shall only be required to guarantee the obligations under the debt agreements governing the Notes for so long as such entities guarantee the obligations under the revolving credit facility, the credit agreement governing the Term Loan or the Company's other indebtedness. |
Retail Installment Contract Rec
Retail Installment Contract Receivables | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Retail Installment Contract Receivables | Retail Installment Contract Receivables Certain subscribers have the option to purchase Products under a RIC, payable over either 42 or 60 months. Short-term RIC receivables are recorded in accounts and notes receivable, net and long-term RIC receivables are recorded in long-term notes receivables and other assets, net in the unaudited condensed consolidated unaudited balance sheets. The following table summarizes the RIC receivables (in thousands): March 31, 2021 December 31, 2020 RIC receivables, gross $ 130,762 $ 145,000 RIC allowance (28,322) (28,848) Imputed interest (10,333) (13,275) RIC receivables, net $ 92,107 $ 102,877 Classified on the unaudited condensed consolidated unaudited balance sheets as: Accounts and notes receivable, net $ 44,918 $ 44,931 Long-term notes receivables and other assets, net 47,189 57,946 RIC receivables, net $ 92,107 $ 102,877 The changes in the Company’s RIC allowance were as follows (in thousands): Three months ended March 31, 2021 Three months ended March 31, 2020 RIC allowance, beginning of period $ 28,848 $ 39,218 Write-offs (3,877) (7,222) Recoveries 1,134 1,705 Additions from RICs originated during the period 1,148 3,189 Change in expected credit losses — 1,515 Other adjustments (1) 1,069 (951) RIC allowance, end of period $ 28,322 $ 37,454 (1) Other adjustments primarily reflect changes in foreign currency exchange rates related to Canadian RICs. The amount of RIC imputed interest income recognized in recurring and other revenue was $2.2 million and $2.9 million during the three months ended March 31, 2021 and 2020, respectively. |
Business Combination
Business Combination | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Business Combination | Business Combination On January 17, 2020, the Company consummated the previously announced merger pursuant to that certain Agreement and Plan of Merger, dated September 15, 2019, by and among the Company, Merger Sub, and Legacy Vivint Smart Home, as amended by the Merger Agreement, dated as of December 18, 2019, by and among the Company, Maiden Sub and Legacy Vivint Smart Home. Pursuant to the terms of the Merger Agreement, a business combination between the Company and Legacy Vivint Smart Home was effected through the merger of Merger Sub with and into Legacy Vivint Smart Home, with Legacy Vivint Smart Home as the surviving company. At the effective time of the Business Combination (the “Effective Time”), each stockholder of Legacy Vivint Smart Home received 84.5320916792 shares of the Company’s Class A common stock, par value $0.0001 per share (the “Common Stock”), for each share of Legacy Vivint Smart Home common stock, par value $0.01 per share, that such stockholder owned. Pursuant in each case to a Subscription Agreement entered into in connection with the Merger Agreement, certain investment funds managed by affiliates of Fortress Investment Group LLC (“Fortress”) and certain investment funds affiliated with The Blackstone Group Inc. (“Blackstone”) purchased, respectively, 12,500,000 and 10,000,000 newly-issued shares of Common Stock (such purchases, the “Fortress PIPE” and the “Blackstone PIPE,” respectively, and together, the “PIPE”) concurrently with the completion of the Business Combination (the “Closing”) on the Closing Date for an aggregate purchase price of $125.0 million and $100.0 million, respectively. In connection with the Merger, each of the issued and outstanding Founder Shares was converted into approximately 1.20 shares of Common Stock of the Company. The private placement warrants will expire five years after the Closing or earlier upon redemption or liquidation. In connection with the execution of the Amendment, the Company entered into a Subscription and Backstop Agreement (the “Fortress Subscription and Backstop Agreement”) . On the Closing Date, pursuant to the Fortress Subscription and Backstop Agreement, Fortress purchased 2,698,753 shares of Common Stock for an aggregate of $27.8 million. In addition, the Company entered into an additional subscription agreement (the “Additional Forward Purchaser Subscription Agreement”) with one of the forward purchasers (the “Forward Purchaser”). Pursuant to the Additional Forward Purchaser Subscription Agreement, immediately prior to the Effective Time, the Forward Purchaser purchased from us 5,000,000 shares of Common Stock at a purchase price of $10.00 per share. As consideration for the additional investment, concurrently with the Closing, 25% of Mosaic Sponsor LLC’s founder shares (“Forward Shares”) and private placement warrants were forfeited to the Company and the Company issued to the Forward Purchaser a number of shares of Common Stock equal to approximately 1.20 times the number of Founder Shares forfeited and a number of warrants equal to the number of private placement warrants forfeited. At the Closing, certain investors (including an affiliate of Fortress) received an aggregate of 15,789,474 shares of Common Stock at a purchase price of $9.50 per share (the “IPO Forward Purchaser Investment”) pursuant to the terms of the forward purchase agreements the Company entered into in connection with the Company’s initial public offering. In connection with the Closing, 31,074,592 shares of Common Stock were redeemed at a price per share of approximately $10.29. In addition, in connection with the Closing, each Founder Share issued and outstanding immediately prior to the Closing (other than the Founder Shares forfeited in connection with the Additional Forward Purchaser Subscription Agreement) converted into approximately 1.20 shares of Common Stock of the Company. Immediately prior to the Effective Time, each issued and outstanding share of Legacy Vivint Smart Home preferred stock (other than shares owned by Legacy Vivint Smart Home as treasury stock) converted into approximately 1.43 shares of Legacy Vivint Smart Home common stock in accordance with the certificate of designations of the Legacy Vivint Smart Home preferred stock. The following table reconciles the elements of the Business Combination to the consolidated statement of cash flows and the consolidated statement of changes in equity for the three months ended March 31, 2020: Recapitalization (in thousands) Cash - Mosaic (net of redemptions) $ 35,344 Cash - Subscribers and Forward Purchasers 453,221 Less fees to underwriters and other transaction costs (23,478) Net cash received from recapitalization 465,087 Less: Warrant derivative liabilities assumed (40,094) Less: non-cash net liabilities assumed from Mosaic (5) Less: deferred and accrued transaction costs (2,740) Net contributions from recapitalization $ 422,248 The number of shares of Common Stock of Vivint Smart Home Inc. issued immediately following the consummation of the Business Combination is summarized as follows: Number of Shares Common Stock outstanding prior to Business Combination 34,500,000 Less redemption of Mosaic Shares (31,074,592) Common Stock of Mosaic 3,425,408 Shares issued from Fortress PIPE 12,500,000 Shares from Blackstone PIPE 10,000,000 Shares from Additional Forward Purchaser Subscription Agreement 5,000,000 Shares from IPO Forward Purchaser Investment 15,789,474 Shares from Fortress Subscription and Backstop Agreement 2,698,753 Shares from Mosaic Founder Shares 10,379,386 Recapitalization shares 59,793,021 Legacy Vivint Smart Home equity holders 94,937,597 Total shares 154,730,618 Earnout consideration Following the closing of the Merger, holders of Vivint common stock and holders of rollover restricted stock units (“Rollover RSUs”), the rollover stock appreciation rights (“Rollover SARs”), the shares of rollover restricted stock (“Rollover Restricted Stock”) and any awards granted under the Company rollover long-term incentive program (“Rollover LTIP Plans”) (together, “Rollover Equity Awards”) had the contingent right to receive, in the aggregate, up to 37,500,000 shares of Common Stock if, from the closing of the Merger until the fifth anniversary thereof, the dollar volume-weighted average price of Common Stock exceeded certain thresholds. The first issuance of 12,500,000 earnout shares occurred when the volume-weighted average price of Common Stock exceeded $12.50 for any 20-trading days within any 30-trading day period (the “First Earnout”). The second issuance of 12,500,000 earnout shares occurred when the volume weighted average price of Common Stock exceeded $15.00 for any 20-trading days within any 30-trading day period (the “Second Earnout”). The third issuance of 12,500,000 earnout shares occurred when the volume weighted average price of Common Stock exceeded $17.50 for any 20-trading days within any 30-trading day period (the “Third Earnout”) (as further described in the Merger Agreement). Subsequent to the closing of the Merger, the cumulative issuance of 37,321,352 shares of Common Stock occurred after attainment of the First Earnout, Second Earnout and Third Earnout in February, March and September 2020, respectively. The difference in the shares issued in the earnouts and the aggregate amounts defined in the Merger Agreement above are primarily attributable to unissued shares reserved for future issuance to holders of Rollover Equity Awards, which are subject to the same vesting terms and conditions as the underlying Rollover Equity Awards. Additionally, shares were withheld from employees to satisfy the mandatory tax withholding requirements. The Company has determined that the earnout shares issued to non-employee shareholders and to holders of Vivint common stock and vested Rollover Equity Awards qualify for the scope exception in ASC 815-10-15-74(a) and meet the criteria for equity classification under ASC 815-40. These earnout shares were initially measured at fair value at Closing. Upon the attainment of the share price targets, the earnout shares delivered to the equity holders are recorded in equity as shares issued, with the appropriate allocation to common stock at par and additional paid-in capital. Since all earnout shares have determined to be equity-classified, there is no remeasurement unless |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Components | Balance Sheet Components The following table presents material balance sheet component balances (in thousands): March 31, 2021 December 31, 2020 Prepaid expenses and other current assets Prepaid expenses $ 22,480 $ 11,286 Deposits 1,561 1,308 Other 2,134 1,744 Total prepaid expenses and other current assets $ 26,175 $ 14,338 Capitalized contract costs Capitalized contract costs $ 3,592,821 $ 3,491,629 Accumulated amortization (2,302,645) (2,173,131) Capitalized contract costs, net $ 1,290,176 $ 1,318,498 Long-term notes receivables and other assets RIC receivables, gross $ 85,844 $ 100,069 RIC allowance (28,322) (28,848) RIC imputed interest (10,333) (13,275) Security deposits 1,055 835 Other 9,290 3,729 Total long-term notes receivables and other assets, net $ 57,534 $ 62,510 Accrued payroll and commissions Accrued commissions $ 21,677 $ 46,353 Accrued payroll 25,386 41,590 Total accrued payroll and commissions $ 47,063 $ 87,943 Accrued expenses and other current liabilities Accrued interest payable $ 33,479 $ 33,340 Current portion of derivative liability 129,959 142,755 Service warranty accrual 5,575 5,711 Current portion of Term Loan — 8,063 Accrued taxes 13,909 8,700 Accrued payroll taxes and withholdings 12,434 14,391 Loss contingencies 28,600 26,200 Other 9,064 8,164 Total accrued expenses and other current liabilities $ 233,020 $ 247,324 |
Property Plant and Equipment
Property Plant and Equipment | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property Plant and Equipment | Property Plant and Equipment Property, plant and equipment consisted of the following (in thousands): March 31, 2021 December 31, 2020 Estimated Useful Vehicles $ 39,583 $ 39,735 3 - 5 years Computer equipment and software 74,905 72,616 3 - 5 years Leasehold improvements 30,327 29,126 2 - 15 years Office furniture, fixtures and equipment 21,767 21,394 2 - 7 years Construction in process 5,762 6,180 Property, plant and equipment, gross 172,344 169,051 Accumulated depreciation and amortization (120,700) (116,672) Property, plant and equipment, net $ 51,644 $ 52,379 Property, plant and equipment, net includes approximately $16.9 million and $17.6 million of assets under finance lease obligations at March 31, 2021 and December 31, 2020, respectively, net of accumulated amortization of $23.5 million and $23.0 million, respectively. Depreciation and amortization expense on all property, plant and equipment was $4.1 million and $5.7 million during the three months ended March 31, 2021 and 2020, respectively. Amortization expense related to assets under finance leases is included in depreciation and amortization expense. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill As of March 31, 2021 and December 31, 2020, the Company had a goodwill balance of $837.4 million and $837.1 million, respectively. The change in the carrying amount of goodwill during the three months ended March 31, 2021 was the result of foreign currency translation adjustments. Intangible assets, net The following table presents intangible asset balances (in thousands): March 31, 2021 December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Estimated Definite-lived intangible assets: Customer contracts $ 970,044 $ (877,668) $ 92,376 $ 969,158 $ (862,352) $ 106,806 10 years Other technology 2,917 (2,604) 313 4,725 (4,309) 416 2 - 7 years Patents 10,907 (6,995) 3,912 10,843 (6,656) 4,187 5 years Total definite-lived intangible assets: $ 983,868 $ (887,267) $ 96,601 $ 1,008,826 $ (897,417) $ 111,409 Indefinite-lived intangible assets: Domain names 65 — 65 65 — 65 Total intangible assets, net $ 983,933 $ (887,267) $ 96,666 $ 1,008,891 $ (897,417) $ 111,474 Amortization expense related to intangible assets was approximately $15.0 million and $17.4 million for the three months ended March 31, 2021 and 2020, respectively. As of March 31, 2021, the remaining weighted-average amortization period for definite-lived intangible assets was 1.7 years. Estimated future amortization expense of intangible assets, excluding approximately $0.1 million in patents currently in process, is as follows as of March 31, 2021 (in thousands): 2021 - Remaining Period $ 44,905 2022 49,826 2023 720 2024 566 2025 502 Thereafter — Total estimated amortization expense $ 96,519 |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments Cash and Cash Equivalents Cash equivalents are classified as level 1 assets, as they have readily available market prices in an active market. The following tables set forth the Company’s cash and cash equivalents' adjusted cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category recorded as cash and cash equivalents or long-term notes receivables and other assets, net as of March 31, 2021 and December 31, 2020 (in thousands): March 31, 2021 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash $ 244,280 $ — $ — $ 244,280 Money market funds 30,064 — — 30,064 Total cash and cash equivalents $ 274,344 $ — $ — $ 274,344 December 31, 2020 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash $ 283,750 $ — $ — $ 283,750 Money market funds 30,049 — — 30,049 Total cash and cash equivalents $ 313,799 $ — $ — $ 313,799 The carrying amounts of the Company’s accounts and notes receivable, accounts payable and accrued and other liabilities approximate their fair values. Debt Components of the Company's debt including the associated interest rates and related fair values are as follows (in thousands, except interest rates): March 31, 2021 December 31, 2020 Stated Interest Rate Issuance Face Value Estimated Fair Value Face Value Estimated Fair Value 2022 Notes 677,000 682,822 677,000 677,203 7.875 % 2023 Notes 400,000 414,080 400,000 415,200 7.625 % 2024 Notes 225,000 234,113 225,000 238,545 8.500 % 2027 Notes 600,000 644,700 600,000 645,300 6.750 % Term Loan 940,500 940,500 942,875 942,875 N/A Total $ 2,842,500 $ 2,916,215 $ 2,844,875 $ 2,919,123 The Notes are fixed-rate debt considered Level 2 fair value measurements as the values were determined using observable market inputs, such as current interest rates, prices observable from less active markets, as well as prices observable from comparable securities. The Term Loan is floating-rate debt and approximates the carrying value as interest accrues at floating rates based on market rates. Derivative Financial Instruments Consumer Financing Program Under the Consumer Financing Program, the Company pays a monthly fee to Financing Providers based on either the average daily outstanding balance of the Loans or the number of outstanding Loans. For certain Loans, the Company incurs fees at the time of the loan origination and receives proceeds that are net of these fees. The Company also shares the liability for credit losses, depending on the credit quality of the customer. Because of the nature of certain provisions under the Consumer Financing Program, the Company records a derivative liability that is not designated as a hedging instrument and is adjusted to fair value, measured using the present value of the estimated future payments. Changes to the fair value are recorded through other income, net in the Consolidated Statement of Operations. The following represent the contractual future payment obligations with the Financing Providers under the Consumer Financing Program that are components of the derivative: • The Company pays either a monthly fee based on the average daily outstanding balance of the Loans, or the number of outstanding Loans, depending on the Financing Provider • The Company shares the liability for credit losses depending on the credit quality of the customer • The Company pays transactional fees associated with customer payment processing The derivative is classified as a Level 3 instrument. The derivative positions are valued using a discounted cash flow model, with inputs consisting of available market data, such as market yield discount rates, as well as unobservable internally derived assumptions, such as collateral prepayment rates, collateral default rates and loss severity rates. These derivatives are priced quarterly using a credit valuation adjustment methodology. In summary, the fair value represents an estimate of the present value of the cash flows the Company will be obligated to pay to the Financing Provider for each component of the derivative. The following table summarizes the fair value and the notional amount of the Company’s outstanding consumer financing program derivative instrument as of March 31, 2021 and December 31, 2020 (in thousands): March 31, 2021 December 31, 2020 Consumer Financing Program Contractual Obligations: Fair value $ 217,096 $ 227,896 Notional amount 927,860 912,626 Classified on the condensed consolidated unaudited balance sheets as: Accrued expenses and other current liabilities 129,959 142,755 Other long-term obligations 87,137 85,141 Total Consumer Financing Program Contractual Obligation $ 217,096 $ 227,896 Changes in Level 3 Fair Value Measurements The following table summarizes the change in the fair value of the Level 3 outstanding derivative instrument for the three months ended March 31, 2021 and 2020 (in thousands): Three months ended March 31, 2021 Three months ended March 31, 2020 Balance, beginning of period $ 227,896 $ 136,863 Additions 26,713 18,717 Settlements (23,685) (16,362) Net (gains) losses included in earnings (13,828) 2,221 Balance, end of period $ 217,096 $ 141,439 Warrant Liabilities As a result of the Business Combination, the Company assumed a derivative warrant liability related to previously issued private placement warrants and public warrants in connection with Mosaic’s initial public offering. The fair value of the Company’s public warrants were measured based on the market price of such warrants and were considered a Level 1 fair value measurement. As of January 7, 2021, all public warrants were exercised or redeemed and none were outstanding as of March 31, 2021. The Company utilizes a Black-Scholes option pricing model to estimate the fair value of the private placement warrants and are considered a Level 3 fair value measurement. The warrants are measured at each reporting period, with changes in fair value recognized in the statement of operations. The change in the fair value of the derivative warrant liabilities for the three months ended March 31, 2021 and 2020 is summarized as follows (in thousands): Three months ended March 31, 2021 Public Warrants Private Placement Warrants Total Derivative Warrant liability Balance, beginning of period $ 8,063 $ 75,531 $ 83,594 Change in fair value of warrant liability 1,350 (29,963) (28,613) Write-off fair value of unexercised expired warrants (490) — (490) Reclassification of derivative liabilities for exercised warrants (8,923) — (8,923) Balance, end of period $ — $ 45,568 $ 45,568 Three months ended March 31, 2020 Public Warrants Private Placement Warrants Total Derivative Warrant liability Warrant liability assumed from the Business Combination $ 9,775 $ 30,319 $ 40,094 Change in fair value of warrant liability 6,274 10,443 16,717 Balance, end of period $ 16,049 $ 40,762 $ 56,811 The estimated fair value of the private placement warrant derivative liabilities is determined using Level 3 inputs. Inherent in a Black-Scholes valuation model are assumptions related to expected stock-price volatility, expiration, risk-free interest rate and dividend yield. The Company estimates the volatility of its common stock based on historical volatility of select peer companies that matches the expected remaining life of the warrants. The risk-free interest rate is based on the U.S. Treasury zero-coupon yield curve on the grant date for a maturity similar to the expiration of the warrants. The dividend yield is based on the historical rate, which the Company anticipates remaining at zero. The following table provides quantitative information regarding Level 3 fair value measurements inputs as their measurement dates: As of March 31, 2021 As of March 31, 2020 Number of private placement warrants 5,933,334 5,933,334 Exercise price $ 11.5 $ 11.5 Stock price $ 14.32 $ 12.54 Expiration term (in years) 3.80 4.80 Volatility 65 % 65 % Risk-free Rate 0.58 % 0.36 % Dividend yield — % — % |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes In order to determine the quarterly provision for income taxes, the Company uses an estimated annual effective tax rate, which is based on expected annual income and statutory tax rates in the various jurisdictions in which the Company operates. Certain significant or unusual items are separately recognized in the quarter during which they occur and can be a source of variability in the effective tax rates from quarter to quarter. The Company’s effective income tax rate for the three months ended March 31, 2021 and 2020 was approximately a negative 0.28% and 0.54%, respectively. The effective tax rates for the three months ended March 31, 2021 and 2020 differ from the statutory rate primarily due to not benefiting from expected US losses, US state minimum taxes and Canadian tax expense (benefits). |
Stock-Based Compensation and Eq
Stock-Based Compensation and Equity | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation and Equity | Stock-Based Compensation and Equity The Company grants stock-based incentive awards to attract, motivate and retain qualified employees and non-employee directors, and to align their financial interests with those of company stockholders. In addition to the rollover awards converted as part of the Business Combination, the Company utilizes a combination of time-based and performance-based restricted stock units. Rollover Restricted Stock Compensation expense associated with unvested Rollover Restricted Stock is recognized on a straight-line basis over the remaining vesting period. At March 31, 2021, there was no unrecognized compensation expense related to Rollover Restricted Stock. Tracking Units Compensation expense associated with unvested Company tracking units (“Tracking Units”) is recognized on a ratable straight-line basis over the remaining vesting period. At March 31, 2021, 1,682,522 Tracking Units were unvested, and there was $1.4 million unrecognized compensation expense related to Tracking Units. Rollover SARs Compensation expense associated with unvested Rollover SARs is recognized on a straight-line basis over the remaining vesting period. At March 31, 2021, there was no unrecognized compensation expense related to Rollover SARs. Rollover LTIPs Long-term incentive awards were set aside for funding incentive compensation pools pursuant to long-term sales and installation employee incentive plans established by the Company Rollover LTIPs. In January 2021, the Company made a distribution of Rollover LTIPs to plan participants resulting in the grant of awards and the issuance of 1,609,627 shares of common stock and 847,141 shares of earnouts associated with the LTIPs. At March 31, 2021, there were no remaining long-term incentive awards outstanding and no unrecognized compensation expense related to Rollover LTIPs. Rollover Restricted Stock Units Compensation expense associated with unvested Rollover RSUs is recognized on a straight-line basis over the remaining vesting period. At March 31, 2021, there was no unrecognized compensation expense related to Rollover RSUs. Restricted Stock Units During the three months ended March 31, 2021, the Company approved grants under the Vivint Smart Home, Inc. 2020 Omnibus Incentive Plan (the “Plan”) of time-vesting restricted stock unit (the “RSUs”) awards (each representing the right to receive one share of Class A common stock of the Company upon the settlement of each restricted stock unit) to various levels of key employees. The RSUs are subject to a four year vesting schedule, and 25% of the units will vest on each of the first four anniversaries of the grant date. All vesting shall be subject to the recipient’s continued employment with Vivint Smart Home, Inc. or its subsidiaries through the applicable vesting dates, and certain other vesting criteria as applicable. During the three months ended March 31, 2021, the Company granted 2,682,916 RSUs. As of March 31, 2021, 8,965,010 RSUs were outstanding and $160.0 million unrecognized compensation expense related to RSUs. Performance Stock Units During the three months ended March 31, 2021, the Company approved grants under the Plan of performance-vesting restricted stock units (the “PSUs”) (each representing the right to receive one share of Class A common stock of the Company upon the settlement of each restricted stock unit). The PSUs predominantly vest based upon the achievement of specified performance goals and the passage of time (1-4 years), in each case, subject to continued employment on the applicable vesting date. Compensation expense is not recognized until achievement of the performance goals is deemed probable. During the three months ended March 31, 2021, the Company granted 2,550,916 PSUs. As of March 31, 2021, 4,949,956 PSUs were outstanding and $73.7 million unrecognized compensation expense related to PSUs Stock-based compensation expense in connection with all stock-based awards is presented as follows (in thousands): Three Months Ended March 31, 2021 2020 Operating expenses $ 9,633 $ 1,320 Selling expenses 62,796 3,987 General and administrative expenses 14,608 5,484 Total stock-based compensation $ 87,037 $ 10,791 Equity Class A Common Stock —The Company is authorized to issue 3,000,000,000 shares of Class A common stock with a par value of $0.0001 per share. Holders of the Company’s Class A common stock are entitled to one vote for each share on each matter on which they are entitled to vote. At March 31, 2021, there were 208,670,866 shares of Class A common stock issued and outstanding. Preferred stock —The Company is authorized to issue 300,000,000 shares of preferred stock with a par value of $0.0001 per share. At March 31, 2021, there are no preferred stock issued or outstanding. Warrants —As of March 31, 2021, no public warrants were outstanding. Each whole warrant entitled the holder to purchase one Class A common stock at an exercise price of $11.50 per share, subject to adjustment. Warrants could only be exercised for a whole number of shares. No fractional warrants were issued upon separation of the units and only whole warrants were traded. The warrants became exercisable 30 days after the completion of the Business Combination. As of March 31, 2021, 5,933,334 private placement warrants were outstanding. The private placement warrants are identical to the public warrants, except that the private placement warrants and the Class A common stock issuable upon exercise of the private placement warrants were not transferable, assignable or salable until 30 days after the completion of the Business Combination, subject to certain limited exceptions. Additionally, the private placement warrants will be non-redeemable so long as they are held by the initial purchasers or such purchasers’ permitted transferees. If the private placement warrants are held by someone other than the initial stockholders or their permitted transferees, the private placement warrants will be redeemable by the Company and exercisable by such holders on the same basis as the public warrants. The private placement warrants will expire five years after the completion of the Business Combination or earlier upon redemption or liquidation. The Company may call the warrants for redemption: 1. For cash: • in whole and not in part; • at a price of $0.01 per warrant; • upon a minimum of 30 days’ prior written notice of redemption; and • if, and only if, the last reported closing price of the common stock equals or exceeds $18.00 per share (as adjusted for share splits, share dividends, reorganizations, reclassifications, recapitalizations and the like) for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders. 2. For Class A common stock: • in whole and not in part; • at a price equal to a number of Class A common stock to be determined by reference to a table included in the warrant agreement, based on the redemption date and the fair market value of the Class A common stock; • upon a minimum of 30 days’ prior written notice of redemption; and • if, and only if, the last reported closing price of the common stock equals or exceeds $10.00 per share (as adjusted for share splits, share dividends, reorganizations, reclassifications, recapitalizations and the like) on the trading day prior to the date on which the Company sends notice of redemption to the warrant holders. In December 2020, after meeting the above requirements for redemption, the Company delivered a notice of redemption to redeem all of its outstanding public warrants (“Public Warrants”) for cash, with a redemption date of January 7, 2021 (the “Redemption Date”) for a redemption price of $0.01 per Public Warrant (the “Redemption Price”). Warrants to purchase Common Stock that were issued under the Warrant Agreement in a private placement and still held by the initial holders thereof or their permitted transferees are not subject to this redemption. The Public Warrants could have been exercised by the holders thereof prior to or on the Redemption Date to purchase fully paid and non-assessable shares of Common Stock underlying such warrants, at the exercise price of $11.50 per share. All Public Warrants that remained unexercised at 5:00 p.m., New York City time, on the Redemption Date were void and were no longer exercisable, and the holders of those Public Warrants were entitled to receive only the redemption price of $0.01 per warrant. The exercise price and number of shares of Class A common stock issuable upon exercise of the warrants may be adjusted in certain circumstances including in the event of a share dividend, or recapitalization, reorganization, merger or consolidation. However, the warrants will not be adjusted for issuance of Class A common stock at a price below its exercise price. During the three months ended March 31, 2021, 825,016 warrants were exercised for shares of Class A common stock, for which the Company received $10.8 million of cash. During the three months ended March 31, 2020 no warrants were exercised. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Indemnification Subject to certain limitations, the Company is obligated to indemnify its current and former directors, officers and employees with respect to certain litigation matters and investigations that arise in connection with their service to the Company. These obligations arise under the terms of its certificate of incorporation, its bylaws, applicable contracts, and Delaware and California law. The obligation to indemnify generally means that the Company is required to pay or reimburse these individuals’ reasonable legal expenses and possibly damages and other liabilities incurred in connection with these matters. Legal The Company is named from time to time as a party to lawsuits arising in the ordinary course of business related to its sales, marketing, and the provision of its services and equipment claims. Actions filed against the Company include commercial, intellectual property, customer, and labor and employment related claims, including complaints of alleged wrongful termination and potential class action lawsuits regarding alleged violations of federal and state wage and hour and other laws. In addition, from time to time the Company is subject to examinations, investigations and/or enforcement actions by federal and state licensing and regulatory agencies and may face the risk of penalties for violation of financial services, consumer protections and other applicable laws and regulations. For example, in 2019, the Company received a subpoena in connection with an investigation by the U.S. Department of Justice (“DOJ”) concerning potential violations of the Financial Institutions Reform, Recovery and Enforcement Act (“FIRREA”). In January 2021, the Company entered into a settlement agreement with the DOJ that resolved this investigation. As part of this settlement, the Company paid $3.2 million to the United States. The Company also received a civil investigative demand from the staff of the Federal Trade Commission (“FTC”) concerning potential violations of the Fair Credit Reporting Act (“FCRA”) and the “Red Flags Rule” thereunder, and the Federal Trade Commission Act (“FTC Act”). In April 2021, the Company entered into a settlement with the FTC that resolved this investigation. As part of this settlement, which was approved by a federal court on May 3, 2021, the Company paid a total of $20 million to the United States and agreed to implement various additional compliance-related measures. U.S. Customs and Border Protection is investigating the Company’s historical compliance with regulations relating to duties and tariffs in connection with its import of certain products from outside the United States. The Department of Justice is also investigating potential violations of the False Claims Act relating to similar issues. The Company is cooperating with these investigations. The company also receives inquiries, including civil investigative demands (“CIDs”), from various State Attorneys General, typically from their respective consumer protection or consumer affairs divisions. In general, litigation and enforcements by regulatory agencies can be expensive and disruptive to normal business operations. Moreover, the results of legal proceedings and enforcement actions are difficult to predict and the costs incurred can be substantial. The Company believes the amounts accrued in its financial statements to cover these matters, as disclosed in the following paragraph, are adequate in light of the probable and estimated liabilities. Factors that the Company considers in the determination of the likelihood of a loss and the estimate of the range of that loss in respect of legal and enforcement matters include the merits of a particular matter, the nature of the matter, the length of time the matter has been pending, the procedural posture of the matter, how the Company intends to defend the matter, the likelihood of settling the matter and the anticipated range of a possible settlement. Because such matters are subject to many uncertainties, the ultimate outcomes are not predictable and there can be no assurances that the actual amounts required to satisfy alleged liabilities from the matters described above will not exceed the amounts reflected in the Company’s financial statements or that the matters will not have a material adverse effect on the Company’s results of operations, financial condition or cash flows. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases for corporate offices, warehouse facilities, research and development and other operating facilities, and other operating assets. Prior to its disposal in December 2020, the Company's operating leases also included a corporate aircraft. The Company has finance leases for vehicles, office equipment and other warehouse equipment. The leases have remaining terms of 1 year to 7 years, some of which include options to extend the leases for up to 10 years, and some of which include options to terminate the leases within 1 year. The components of lease expense were as follows (in thousands): Three Months Ended March 31, 2021 2020 Operating lease cost $ 3,940 $ 4,174 Finance lease cost: Amortization of right-of-use assets $ 661 $ 1,407 Interest on lease liabilities 39 158 Total finance lease cost $ 700 $ 1,565 Supplemental cash flow information related to leases was as follows (in thousands): Three Months Ended March 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (4,230) $ (4,373) Operating cash flows from finance leases (39) (158) Financing cash flows from finance leases (500) (2,243) Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 405 $ 1,255 Finance leases 413 592 Supplemental balance sheet information related to leases was as follows (in thousands, except lease term and discount rate): March 31, 2021 December 31, 2020 Operating Leases Operating lease right-of-use assets $ 50,486 $ 52,880 Current operating lease liabilities 12,062 12,135 Operating lease liabilities 47,081 49,692 Total operating lease liabilities $ 59,143 $ 61,827 Finance Leases Property, plant and equipment, gross $ 40,419 $ 40,571 Accumulated depreciation (23,499) (22,976) Property, plant and equipment, net $ 16,920 $ 17,595 Current finance lease liabilities $ 3,208 $ 3,356 Finance lease liabilities 1,701 2,460 Total finance lease liabilities $ 4,909 $ 5,816 Weighted Average Remaining Lease Term Operating leases 5 years 5 years Finance leases 1.4 years 1.6 years Weighted Average Discount Rate Operating leases 7 % 7 % Finance leases 4 % 4 % Maturities of lease liabilities were as follows (in thousands): Operating Leases Finance Leases Year Ending December 31, 2021 (excluding the three months ended March 31, 2021) $ 12,325 $ 2,503 2022 14,471 2,404 2023 13,943 152 2024 13,492 20 2025 8,079 — Thereafter 8,747 — Total lease payments 71,057 5,079 Less imputed interest (11,914) (170) Total $ 59,143 $ 4,909 |
Leases | Leases The Company has operating leases for corporate offices, warehouse facilities, research and development and other operating facilities, and other operating assets. Prior to its disposal in December 2020, the Company's operating leases also included a corporate aircraft. The Company has finance leases for vehicles, office equipment and other warehouse equipment. The leases have remaining terms of 1 year to 7 years, some of which include options to extend the leases for up to 10 years, and some of which include options to terminate the leases within 1 year. The components of lease expense were as follows (in thousands): Three Months Ended March 31, 2021 2020 Operating lease cost $ 3,940 $ 4,174 Finance lease cost: Amortization of right-of-use assets $ 661 $ 1,407 Interest on lease liabilities 39 158 Total finance lease cost $ 700 $ 1,565 Supplemental cash flow information related to leases was as follows (in thousands): Three Months Ended March 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (4,230) $ (4,373) Operating cash flows from finance leases (39) (158) Financing cash flows from finance leases (500) (2,243) Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 405 $ 1,255 Finance leases 413 592 Supplemental balance sheet information related to leases was as follows (in thousands, except lease term and discount rate): March 31, 2021 December 31, 2020 Operating Leases Operating lease right-of-use assets $ 50,486 $ 52,880 Current operating lease liabilities 12,062 12,135 Operating lease liabilities 47,081 49,692 Total operating lease liabilities $ 59,143 $ 61,827 Finance Leases Property, plant and equipment, gross $ 40,419 $ 40,571 Accumulated depreciation (23,499) (22,976) Property, plant and equipment, net $ 16,920 $ 17,595 Current finance lease liabilities $ 3,208 $ 3,356 Finance lease liabilities 1,701 2,460 Total finance lease liabilities $ 4,909 $ 5,816 Weighted Average Remaining Lease Term Operating leases 5 years 5 years Finance leases 1.4 years 1.6 years Weighted Average Discount Rate Operating leases 7 % 7 % Finance leases 4 % 4 % Maturities of lease liabilities were as follows (in thousands): Operating Leases Finance Leases Year Ending December 31, 2021 (excluding the three months ended March 31, 2021) $ 12,325 $ 2,503 2022 14,471 2,404 2023 13,943 152 2024 13,492 20 2025 8,079 — Thereafter 8,747 — Total lease payments 71,057 5,079 Less imputed interest (11,914) (170) Total $ 59,143 $ 4,909 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Transactions with Vivint Solar Vivint Solar, Inc. (“Solar”) has historically been considered a related party of the Company due to the Company and Solar being under the common control of of our former parent 313 Acquisition LLC. In October 2020 Solar was acquired by SunRun, Inc. in an all-stock transaction (“SunRun Acquisition”). Upon completion of the SunRun Acquisition, the Company and Solar were no longer under the common control of 313 and therefore the Company and Solar are no longer related parties. The Company was a party to a number of agreements with Solar. In August 2017, the Company entered into a sales dealer agreement with Solar, pursuant to which each company agreed to act as a non-exclusive dealer for the other party to market, promote and sell each other’s products. Prior to the SunRun Acquisition, net expenses charged to Solar in connection with these agreements was $1.0 million during the three months ended March 31, 2020. The balance due from Solar in connection with these agreements and other expenses paid on Solar’s behalf was immaterial at March 31, 2021 and December 31, 2020. On March 3, 2020, the Company and Solar amended and restated the sales dealer agreement to, among other things, add exclusivity obligations for both companies in certain territories and jurisdictions, expand the types of services each company is permitted to render thereunder, and to permit use of the services offered by Amigo, a wholly-owned subsidiary of the Company, in connection with the submission and processing of leads generated pursuant to the agreement. The amended and restated agreement has a one-year term, which automatically renews for successive one-year terms unless terminated earlier by either party upon 90 days’ prior written notice. On March 3, 2020, the Company and Solar entered into a recruiting services agreement pursuant to which each company has agreed to assist the other in recruiting sales representatives to its direct-to-home sales force. The parties will pay each other certain fees for these services which will be calculated in accordance with the terms of the agreement. The Company and Vivint Solar have also agreed under the terms of the agreement not to solicit for employment any member of the other’s executive or senior management team, any dealer, or any of the other’s employees who primarily manage sales, installation or services of the other’s products and services. Such obligations will continue throughout the term of the agreement. On March 3, 2020, Amigo entered into a Subscriber Generation Agreements with Solar and the Company to facilitate the use of the Amigo application for the submission and processing of leads generated pursuant to the amended and restated sales dealer agreement. In connection with the amendment and restatement of the sales dealer agreement and the execution of the recruiting services agreement, the Company and Solar terminated the Marketing and Customer Relations Agreement, dated September 30, 2014 (as amended from time to time) and the Non-Competition Agreement, dated September 30, 2014 (as amended from time to time), in each case effective as of March 3, 2020. Other Related-party Transactions The Company incurred $0.1 million expenses during each of the three months ended March 31, 2021 and 2020, for other related-party transactions including contributions to the charitable organization Vivint Gives Back and other services. Accrued expenses and other current liabilities included on the Company's balance sheets associated with these related-party transactions was immaterial at March 31, 2021 and $0.1 million at December 31, 2020. Transactions with Blackstone On November 16, 2012, the Company was acquired by an investor group comprised of certain investment funds affiliated with Blackstone Capital Partners VI L.P., and certain co-investors and management investors through certain mergers and related reorganization transactions (collectively, the “Reorganization”). In connection with the Reorganization, the Company engaged Blackstone Management Partners L.L.C. (“BMP”) to provide monitoring, advisory and consulting services on an ongoing basis. In consideration for these services, the Company agreed to pay an annual monitoring fee equal to the greater of (i) a minimum base fee of $2.7 million, subject to adjustments if the Company engages in a business combination or disposition that is deemed significant and (ii) the amount of the monitoring fee paid in respect of the immediately preceding fiscal year, without regard to any post-fiscal year “true-up” adjustments as determined by the agreement. The Company incurred expenses for such services of approximately $1.4 million and $1.7 million during the three months ended March 31, 2021 and 2020, respectively. Accrued expenses and other current liabilities and accounts payable at March 31, 2021, included liabilities to BMP in regards to the monitoring fee for $9.5 million. Under the support and services agreement, the Company also engaged BMP to arrange for Blackstone’s portfolio operations group to provide support services customarily provided by Blackstone’s portfolio operations group to Blackstone’s private equity portfolio companies of a type and amount determined by such portfolio services group to be warranted and appropriate. BMP will invoice the Company for such services based on the time spent by the relevant personnel providing such services during the applicable period but in no event shall the Company be obligated to pay more than $1.5 million during any calendar year. During the three months ended March 31, 2021 and 2020 the Company incurred no costs associated with such services. In connection with the execution of the Merger Agreement, the Company and the parties to the support and services agreement entered into an amended and restated support and services agreement with BMP. The amended and restated support and services agreement became effective upon the consummation of the Merger and amended and restated the existing support and services agreement to, upon the consummation of the merger, (a) eliminate the requirement to pay a milestone payment to BMP upon the occurrence of an IPO, (b) for any fiscal year beginning after the consummation of the merger, (i) eliminate the Minimum Annual Fee and (ii) decrease the “true-up” of the annual Monitoring Fee payment to BMP to 1% of consolidated EBITDA and (c) upon the earlier of (1) the completion of Legacy Vivint Smart Home’s fiscal year ending December 31, 2021 or (2) the date upon which Blackstone owns less than 5% of the voting power of all of the shares of capital stock entitled to vote generally in the election of directors of Vivint Smart Home’s or its direct or indirect controlling parent, and such stake has a fair market value (as determined by Blackstone) of less than $25 million (the “Exit Date”), the annual Monitoring Fee payment to BMP otherwise payable in connection with the agreement will cease and no other milestone payment or other similar payment will be owed by the Company to BMP. Under the amended and restated support and services agreement, the Company and Legacy Vivint Smart Home have, through the Exit Date (or an earlier date determined by BMP), engaged BMP to arrange for Blackstone’s portfolio operations group to provide support services customarily provided by Blackstone’s portfolio operations group to Blackstone’s private equity portfolio companies of a type and amount determined by such portfolio services group to be warranted and appropriate. BMP may, at any time, choose not to provide any such services. Such services are provided without charge, other than for the reimbursement of out-of-pocket expenses as set forth in the amended and restated support and services agreement. From time to time, the Company does business with a number of other companies affiliated with Blackstone. Related Party Debt An affiliate of Blackstone participated as one of the initial purchasers of the 2024 notes and the 2027 notes and received an aggregate of $1.0 million of fees in connection with these transactions. An affiliate of Blackstone participated as one of the arrangers in the original Term Loan in September 2018 and again in the Term Loan amendment and restatement in February 2020 and received approximately $1.5 million of total fees associated with these transactions. As of March 31, 2021 and December 31, 2020, affiliates of Blackstone held $187.0 million and $166.1 million, respectively, of outstanding aggregate principal of the Term Loan. In February 2020, an affiliate of Fortress participated as a lender in the amended and restated Term Loan and received $0.9 million in lender fees. As of March 31, 2021, Fortress held $72.5 million, $19.8 million, $11.7 million and $173.3 million in the 2023 Notes, 2024 Notes, 2027 Notes and Term Loan, respectively. As of December 31, 2020, Fortress held $72.5 million, $19.9 million, $11.7 million and $173.7 million in the 2023 Notes, 2024 Notes, 2027 Notes and Term Loan, respectively Transactions involving related parties cannot be presumed to be carried out at an arm’s-length basis. |
Employee Benefit Plan
Employee Benefit Plan | 3 Months Ended |
Mar. 31, 2021 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plan | Employee Benefit Plan The Company offers eligible employees the opportunity to contribute a percentage of their earned income into company-sponsored 401(k) plans. From January 1, 2018 through May 2, 2020, participants in the 401(k) plans were eligible for the Company’s matching program. This matching program was suspended, effective May 2, 2020 and reinstated, effective January 1, 2021. Additionally, at the end of 2020, the Company made a one-time contribution to the matching program. Under this reinstated program, the Company matches an employee’s contributions to the 401(k) savings plan dollar-for-dollar up to 3% of such employee’s eligible earnings and $0.50 for every $1.00 for the next 2% of such employee’s eligible earnings. The maximum match available under the 401(k) plan is 4% of the employee’s eligible earnings. All contributions under the reinstated program vest immediately. |
Restructuring and Asset Impairm
Restructuring and Asset Impairment Charges | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Asset Impairment Charges | Restructuring and Asset Impairment ChargesIn March 2020, the Company announced a number of cost reduction initiatives that are expected to reduce certain of the Company’s General and Administrative, Customer Service, and Sales Support fixed costs. The Company completed the majority of these cost reduction initiatives in the first quarter of 2020. In addition to resulting in meaningful cost reductions, the Company’s initiatives are expected to streamline operations, focus engineering and innovation and provide a better focus on driving customer satisfaction. These actions resulted in one-time cash employee severance and termination benefits expenses of $20.9 million during three months ended March 31, 2020. These costs included $11.1 million in stock-based compensation expense associated with the accelerated vesting of stock-based awards to certain executives related to separation agreements. |
Segment Reporting and Business
Segment Reporting and Business Concentrations | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting and Business Concentrations | Segment Reporting and Business Concentrations For the three months ended March 31, 2021 and 2020, the Company conducted business through one operating segment, Vivint. The Company primarily operated in two geographic regions: United States and Canada. Revenues by geographic region were as follows (in thousands): United States Canada Total Revenue from external customers Three months ended March 31, 2021 $ 327,345 $ 15,948 $ 343,293 Three months ended March 31, 2020 285,422 17,810 303,232 |
Basic and Diluted Net Loss Per
Basic and Diluted Net Loss Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Loss Per Share | Basic and Diluted Net Loss Per Share The Company computes basic loss per share by dividing loss attributable to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution of securities that could be exercised or converted into common shares, and is computed by dividing net earnings available to common stockholders by the weighted-average number of common shares outstanding plus the effect of potentially dilutive shares to purchase common stock. The calculation of diluted loss per share requires that, to the extent the average market price of the underlying shares for the reporting period exceeds the exercise price of the warrants, and the presumed exercise of such securities are dilutive to net loss per share for the period, an adjustment to net loss available to common stockholders used in the calculation is required to remove the change in fair value of the warrants from the numerator for the period. Likewise, an adjustment to the denominator is required to reflect the related dilutive shares, if any, under the treasury stock method. As a result of the Business Combination, the Company has retrospectively adjusted the weighted average number of common shares outstanding prior to January 17, 2020 by multiplying them by the exchange ratio used to determine the number of common shares into which they converted. The following table sets forth the computation of the Company’s basic and diluted net loss attributable per share to common stockholders for the three and three months ended March 31, 2021 and 2020 (in thousands, except share and per-share amounts): Three Months Ended March 31, 2021 2020 Numerator: Net loss attributable to common stockholders $ (87,380) $ (145,096) Gain on change in fair value of warrants, diluted (29,963) — Net loss attributable to common stockholders, diluted $ (117,343) $ (145,096) Denominator: Shares used in computing net loss attributable per share to common stockholders, basic and diluted 206,791,625 151,010,847 Weighted-average effect of potentially dilutive shares to purchase common stock 2,197,455 — Shares used in computing net loss attributable per share to common stockholders, diluted 208,989,080 151,010,847 Net loss attributable per share to common stockholders: Basic $ (0.42) $ (0.96) Diluted $ (0.56) $ (0.96) The following table discloses securities that could potentially dilute basic net loss per share in the future that were not included in the computation of diluted net loss per share because to do so would have been antidilutive for all periods presented: As of March 31, 2021 2020 Rollover SARs 2,452,311 3,402,188 Rollover LTIPs — 4,633,738 Rollover RSUs 51,929 51,929 RSUs 9,272,573 9,369,305 PSUs 4,692,084 5,193,238 Public warrants — 11,500,000 Private placement warrants — 5,933,334 Earnout shares reserved for future issuance 26,613 14,303,786 See Note 11 for additional information regarding the terms of the Rollover SARs, Rollover LTIPs, Rollover RSUs, RSUs, PSUs, and public and private placement warrants, and see Note 5 for additional information regarding the earnout shares. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation On January 17, 2020 (the “Closing Date”), the Company consummated the previously announced merger pursuant to that certain Agreement and Plan of Merger, dated September 15, 2019, by and among the Company, Merger Sub, and Legacy Vivint Smart Home, as amended by Amendment No. 1 to the Agreement and Plan of Merger, dated as of December 18, 2019, by and among the Company, Merger Sub and Legacy Vivint Smart Home. (See Note 5 “Business Combination” for further discussion). Pursuant to the terms of the Merger Agreement, a business combination between the Company and Legacy Vivint Smart Home was effected through the merger of Merger Sub with and into Legacy Vivint Smart Home, with Legacy Vivint Smart Home surviving as the surviving company (the “Business Combination”). Notwithstanding the legal form of the Business Combination pursuant to the Merger Agreement, the Business Combination is accounted for as a reverse recapitalization in accordance with GAAP. Under this method of accounting, Vivint Smart Home, Inc. is treated as the acquired company and Legacy Vivint Smart Home is treated as the acquirer for financial statement reporting and accounting purposes. Legacy Vivint Smart Home has been determined to be the accounting acquirer based on evaluation of the following facts and circumstances: • Legacy Vivint Smart Home’s shareholders prior to the Business Combination have the greatest voting interest in the combined entity; • the largest individual shareholder of the combined entity was an existing shareholder of Legacy Vivint Smart Home; • Legacy Vivint Smart Home’s directors represent the majority of the Vivint Smart Home board of directors; • Legacy Vivint Smart Home’s senior management is the senior management of Vivint Smart Home; and • Legacy Vivint Smart Home is the larger entity based on historical total assets and revenues. As a result of Legacy Vivint Smart Home being the accounting acquirer, the financial reports filed with the SEC by the Company subsequent to the Business Combination are prepared “as if” Legacy Vivint Smart Home is the predecessor and legal successor to the Company. The historical operations of Legacy Vivint Smart Home are deemed to be those of the Company. Thus, the financial statements included in this report reflect (i) the historical operating results of Legacy Vivint Smart Home prior to the Business Combination; (ii) the combined results of the Company and Legacy Vivint Smart Home following the Business Combination on January 17, 2020; (iii) the assets and liabilities of Legacy Vivint Smart Home at their historical cost; and (iv) the Company’s equity structure for all periods presented. The recapitalization of the number of shares of common stock attributable to the purchase of Legacy Vivint Smart Home in connection with the Business Combination is reflected retroactively to the earliest period presented and will be utilized for calculating earnings per share in all prior periods presented. No step-up basis of intangible assets or goodwill was recorded in the Business Combination transaction consistent with the treatment of the transaction as a reverse recapitalization of Legacy Vivint Smart Home. In connection with the Business Combination, Mosaic Acquisition Corp. changed its name to Vivint Smart Home, Inc. The Company’s Common Stock is now listed on the NYSE under the symbol “VVNT” and warrants to purchase the Common Stock at an exercise price of $11.50 per share are listed on the NYSE under the symbol “VVNT WS”. Prior to the Business Combination, the Company neither engaged in any operations nor generated any revenue. Until the Business Combination, based on the Company’s business activities, it was a “shell company” as defined under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). |
Vivint Flex Pay | Vivint Flex Pay The Vivint Flex Pay plan (“Vivint Flex Pay”) became the Company’s primary equipment financing model beginning in March 2017. Under Vivint Flex Pay, customers pay separately for the products (including control panel, security peripheral equipment, smart home equipment, and related installation) (“Products”) and Vivint’s smart home and security services (“Services”). The customer has the following three ways to pay for the Products: (1) qualified customers in the United States may finance the purchase of Products through third-party financing providers (“Consumer Financing Program” or “CFP”), (2) the Company offers to a limited number of customers not eligible for the CFP, but who qualify under the Company's underwriting criteria, the option to enter into a retail installment contract (“RIC”) directly with Vivint, or (3) customers may purchase the Products at the outset of the service contract by check, automatic clearing house payments (“ACH”), credit or debit card. Although customers pay separately for Products and Services under the Vivint Flex Pay plan, the Company has determined that the sale of Products and Services are one single performance obligation. As a result, all forms of transactions under Vivint Flex Pay create deferred revenue for the gross amount of Products sold. For RICs, gross deferred revenues are reduced by imputed interest and estimated write-offs. For Products financed through the CFP, gross deferred revenues are reduced by (i) any fees the third-party financing provider (“Financing Provider”) is contractually entitled to receive at the time of loan origination, and (ii) the present value of expected future payments due to Financing Providers. Under the CFP, qualified customers are eligible for financing offerings (“Loans”) originated by Financing Providers of between $150 and $6,000. The terms of most Loans are determined based on the customer's credit quality. The annual percentage rates on these Loans is either 0% or 9.99%, depending on the customer's credit quality, and are either installment or revolving loans with repayment terms ranging from 6- to 60-months. For certain Financing Provider Loans, the Company pays a monthly fee based on either the average daily outstanding balance of the installment loans, or the number of outstanding Loans. For certain Loans, the Company incurs fees at the time of the loan origination and receives proceeds that are net of these fees. For certain Loans, the Company also shares liability for credit losses, with the Company being responsible for between 2.6% and 100% of lost principal balances. Additionally, the Company is responsible for reimbursing certain Financing Providers for merchant transaction fees and other fees associated with the Loans. Because of the nature of these provisions, the Company records a derivative liability at its fair value when the Financing Provider originates loans to customers, which reduces the amount of estimated revenue recognized on the provision of the services. The derivative liability is reduced as payments are made by the Company to the Financing Provider. Subsequent changes to the fair value of the derivative liability are realized through other expenses (income), net in the unaudited condensed consolidated statement of operations. (see Note 9 “Financial Instruments” for additional information). For certain other Loans, the Company receives net proceeds (net of fees and expected losses) for which the Company has no further obligation to the Financing Provider. The Company records these net proceeds to deferred revenue. |
Retail Installment Contract Receivables | Retail Installment Contract Receivables For subscribers that enter into a RIC to finance the purchase of Products and related installation, the Company records a receivable for the amount financed. Gross RIC receivables are reduced for (i) expected write-offs of uncollectible balances over the term of the RIC and (ii) a present value discount of the expected cash flows using a risk adjusted market interest rate. Therefore, the RIC receivables equal the present value of the expected cash flows to be received by the Company over the term of the RIC, evaluated on a pool basis. RICs are pooled based on customer credit quality, contract length and geography. At the time of installation, the Company records a long-term note receivable within long-term notes receivables and other assets, net on the unaudited condensed consolidated balance sheets for the present value of the receivables that are expected to be collected beyond 12 months of the reporting date. The unbilled receivable amounts that are expected to be collected within 12 months of the reporting date are included as a short-term notes receivable within accounts and notes receivable, net on the unaudited condensed consolidated balance sheets. The billed amounts of notes receivables are included in accounts receivable within accounts and notes receivable, net on the unaudited condensed consolidated balance sheets. The Company imputes the interest on the RIC receivable using a risk adjusted market interest rate and records it as a reduction to deferred revenue and as an adjustment to the face amount of the related receivable. The risk adjusted interest rate considers a number of factors, including credit quality of the subscriber base and other qualitative considerations such as macro-economic factors. The imputed interest income is recognized over the term of the RIC contract as recurring and other revenue on the unaudited condensed consolidated statements of operations. |
Accounts Receivable | Accounts Receivable Accounts receivable consists primarily of amounts due from subscribers for recurring monthly monitoring Services, amounts due from third-party financing providers and the billed portion of RIC receivables. The accounts receivable are recorded at invoiced amounts and are non-interest bearing and are included within accounts and notes receivable, net on the unaudited condensed consolidated balance sheets. Accounts receivable totaled $22.1 million and $19.8 million at March 31, 2021 and December 31, 2020, respectively, net of the allowance for doubtful accounts of $8.1 million and $9.9 million at March 31, 2021 and December 31, 2020, respectively. The Company estimates this allowance based on historical collection experience, subscriber attrition rates, current market conditions and both Company and third-party forecast data. When the Company determines that there are accounts receivable that are uncollectible, they are charged off against the allowance for doubtful accounts. The provision for doubtful accounts is included in general and administrative expenses in the accompanying unaudited condensed consolidated statements of operations and totaled $4.7 million and $8.1 million for the three months ended March 31, 2021 and 2020, respectively. |
Revenue Recognition | Revenue Recognition The Company offers its customers smart home services combining Products, including a proprietary control panel, door and window sensors, door locks, cameras and smoke alarms; installation; and a proprietary back-end cloud platform software and Services. These together create an integrated system that allows the Company’s customers to monitor, control and protect their home (“Smart Home Services”). The Company’s customers are buying this integrated system that provides them with these Smart Home Services. The number and type of Products purchased by a customer depends on their desired functionality. Because the Products and Services included in the customer’s contract are integrated and highly interdependent, and because they must work together to deliver the Smart Home Services, the Company has concluded that installed Products, related installation and Services contracted for by the customer are generally not distinct within the context of the contract and, therefore, constitute a single, combined performance obligation. Revenues for this single, combined performance obligation are recognized on a straight-line basis over the customer’s contract term, which is the period in which the parties to the contract have enforceable rights and obligations. The Company has determined that certain contracts that do not require a long-term commitment for monitoring services by the customer contain a material right to renew the contract, because the customer does not have to purchase Products upon renewal. Proceeds allocated to the material right are recognized over the period of benefit, which is generally three years. The majority of the Company’s subscription contracts are between three Sales of Products and other one-time fees such as service or installation fees are invoiced to the customer at the time of sale. Revenues for the wireless internet service that were provided by the Company's former wireless internet business (“Wireless”) and any Products or Services that are considered separate performance obligations are recognized when those Products or Services are delivered. Taxes collected from customers and remitted to governmental authorities are not included in revenue. Payments received or amounts billed in advance of revenue recognition are reported as deferred revenue. Deferred Revenue The Company's deferred revenues primarily consist of amounts for sales (including upfront proceeds) of Smart Home Services. Deferred revenues are recognized over the term of the related performance obligation, which is generally three Capitalized Contract Costs Capitalized contract costs represent the costs directly related and incremental to the origination of new contracts, modification of existing contracts or to the fulfillment of the related subscriber contracts. These include commissions, other compensation and related costs incurred directly for the origination and installation of new or upgraded customer contracts, as well as the cost of Products installed in the customer home at the commencement or modification of the contract. The Company calculates amortization by accumulating all deferred contract costs into separate portfolios based on the initial month of service and amortizes those deferred contract costs on a straight-line basis over the expected period of benefit that the Company has determined to be five years, consistent with the pattern in which the Company provides services to its customers. The Company believes this pattern of amortization appropriately reduces the carrying value of the capitalized contract costs over time to reflect the decline in the value of the assets as the remaining period of benefit for each monthly portfolio of contracts decreases. The period of benefit of five years is longer than a typical contract term because of anticipated contract renewals. The Company applies this period of benefit to its entire portfolio of contracts. The Company updates its estimate of the period of benefit periodically and whenever events or circumstances indicate that the period of benefit could change significantly. Such changes, if any, are accounted for prospectively as a change in estimate. Amortization of capitalized contract costs is included in “Depreciation and Amortization” on the consolidated statements of operations. The carrying amount of the capitalized contract costs is periodically reviewed for impairment. In performing this review, the Company considers whether the carrying amount of the capitalized contract costs will be recovered. In estimating the amount of consideration the Company expects to receive in the future related to capitalized contract costs, the Company considers factors such as attrition rates, economic factors, and industry developments, among other factors. If it is determined that capitalized contract costs are impaired, an impairment loss is recognized for the amount by which the carrying amount of the capitalized contract costs and the anticipated costs that relate directly to providing the future services exceed the consideration that has been received and that is expected to be received in the future. Contract costs not directly related and incremental to the origination of new contracts, modification of existing contracts or to the fulfillment of the related subscriber contracts are expensed as incurred. These costs include those associated |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consists of highly liquid investments with remaining maturities when purchased of three months or less. |
Inventories | InventoriesInventories, which are comprised of smart home and security system equipment and parts are stated at the lower of cost or net realizable value with cost determined under the first-in, first-out (“FIFO”) method. Inventories sold to customers as part of a smart home and security system are generally capitalized as contract costs. The Company adjusts the inventory balance based on anticipated obsolescence, usage and historical write-offs. |
Property, Plant and Equipment and Long-lived Assets | Property, Plant and Equipment and Long-lived Assets Property, plant and equipment are stated at cost and depreciated on the straight-line method over the estimated useful lives of the assets or the lease term for assets under finance leases, whichever is shorter. Intangible assets with definite lives are amortized over the remaining estimated economic life of the underlying technology or relationships, which ranges from 2 to 10 years. Definite-lived intangible assets are amortized on the straight-line method over the estimated useful life of the asset or in a pattern in which the economic benefits of the intangible asset are consumed. Amortization expense associated with leased assets is included in depreciation expense. Routine repairs and maintenance are charged to expense as incurred. The Company reviews long-lived assets, including property, plant and equipment, capitalized contract costs, and definite-lived intangibles for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company considers whether or not indicators of impairment exist on a regular basis and as part of each quarterly and annual financial statement close process. Factors the Company considers in determining whether or not indicators of impairment exist include market factors and patterns of customer attrition. If indicators of impairment are identified, the Company estimates the fair value of the assets. An impairment loss is recognized if the carrying amount of a long-lived asset is not recoverable and exceeds its fair value. |
Leases | Leases The Company determines if an arrangement is a lease at inception. Lease right-of-use (“ROU”) assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. In determining the present value of lease payments, the Company uses the implicit rate when available. When implicit rates are not available, the Company uses an incremental borrowing rate based on the information available at commencement date. The lease ROU asset also includes any lease payments made and is reduced by lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company does not record lease ROU assets and liabilities for leases with terms of 12 months or less. Leases are classified as either operating or finance at lease inception. Operating lease assets and liabilities and finance lease liabilities are stated separately on the unaudited condensed consolidated balance sheets. Finance lease assets are included in property, plant and equipment, net on the unaudited condensed consolidated balance sheets. |
Deferred Financing Costs | Deferred Financing CostsCertain costs incurred in connection with obtaining debt financing are deferred and amortized utilizing the straight-line method, which approximates the effective-interest method, over the life of the related financing. Deferred financing costs associated with obtaining APX Group, Inc.’s (“APX”) revolving credit facility are amortized over the amended maturity dates discussed in Note 3 “Long-Term Debt.” |
Residual Income Plans | Residual Income Plans The Company has a program that allows certain third-party sales channel partners to receive additional compensation based on the performance of the underlying contracts they create (the “Channel Partner Plan”). The Company also has a residual sales compensation plan (the “Residual Plan”) under which the Company's sales personnel (each, a “Plan Participant”) receive compensation based on the performance of certain underlying contracts they created in prior years. |
Stock-Based Compensation | Stock-Based Compensation The Company measures compensation cost based on the grant-date fair value of the award and recognizes that cost over the requisite service period of the awards (See Note 11 “Stock-Based Compensation and Equity” for additional details). |
Advertising Expense | Advertising ExpenseAdvertising costs are expensed as incurred. |
Income Taxes | Income Taxes The Company accounts for income taxes based on the asset and liability method. Under the asset and liability method, deferred tax assets and deferred tax liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Valuation allowances are established when necessary to reduce deferred tax assets when it is determined that it is more likely than not that some portion, or all, of the deferred tax asset will not be realized. The Company recognizes the effect of an uncertain income tax position on the income tax return at the largest amount that is more likely than not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. The Company’s policy for recording interest and penalties is to record such items as a component of the provision for income taxes. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist principally of receivables and cash. At times during the year, the Company maintains cash balances in excess of insured limits. The Company is not dependent on any single customer or geographic location. The loss of a customer would not adversely impact the Company’s operating results or financial position. |
Concentrations of Supply Risk | Concentrations of Supply Risk As of March 31, 2021, approximately 93% of the Company’s installed panels were the Company's proprietary SkyControl or Smart Hub panels and 7% were 2GIG Go!Control panels. The loss of the Company's SkyControl or Smart Hub panel suppliers could potentially impact its operating results or financial position. |
Fair Value Measurement | Fair Value Measurement Fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities subject to on-going fair value measurement are categorized and disclosed into one of three categories depending on observable or unobservable inputs employed in the measurement. These two types of inputs have created the following fair value hierarchy: Level 1: Quoted prices in active markets that are accessible at the measurement date for assets and liabilities. Level 2: Observable prices that are based on inputs not quoted in active markets, but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. This hierarchy requires the Company to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value. The Company recognizes transfers between levels of the hierarchy based on the fair values of the respective financial measurements at the end of the reporting period in which the transfer occurred. There were no transfers between levels of the fair value hierarchy during the three months ended March 31, 2021 and 2020. The carrying amounts of the Company’s accounts receivable, accounts payable and accrued and other liabilities approximate their fair values due to their short maturities. |
Goodwill | Goodwill The Company conducts a goodwill impairment analysis annually in the fourth fiscal quarter, as of October 1, and as necessary if changes in facts and circumstances indicate that the fair value of the Company’s reporting units may be less than their carrying amounts. When indicators of impairment do not exist and certain accounting criteria are met, the Company is able to evaluate goodwill impairment using a qualitative approach. When necessary, the Company’s quantitative goodwill impairment test consists of two steps. The first step requires that the Company compare the estimated fair value of its reporting units to the carrying value of the reporting unit’s net assets, including goodwill. If the fair value of the reporting unit is greater |
Foreign Currency Translation and Other Comprehensive Income | Foreign Currency Translation and Other Comprehensive Income The functional currency of Vivint Canada, Inc. is the Canadian dollar. Accordingly, Vivint Canada, Inc. assets and liabilities are translated from their respective functional currencies into U.S. dollars at period-end rates and Vivint Canada, Inc. revenue and expenses are translated at the weighted-average exchange rates for the period. Adjustments resulting from this translation process are classified as other comprehensive income (loss) and shown as a separate component of equity. |
Letters of Credit | Letters of Credit As of both March 31, 2021 and December 31, 2020, the Company had $15.3 million of letters of credit issued in the ordinary course of business, all of which are undrawn. |
Derivative warrant liabilities | Derivative warrant liabilities The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. The Company evaluates all of its financial instruments, including issued stock purchase warrants, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives, pursuant to ASC 480 and ASC 815-15. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is assessed as part of this evaluation. |
Restructuring and Asset Impairment Charges | Restructuring and Asset Impairment ChargesRestructuring and asset impairment charges represent expenses incurred in relation to activities to exit or dispose of portions of the Company's business that do not qualify as discontinued operations. Liabilities associated with restructuring are measured at their fair value when the liability is incurred. Expenses for related termination benefits are recognized at the date the Company notifies the employee, unless the employee must provide future service, in which case the benefits are expensed ratably over the future service period. Liabilities related to termination of a contract are measured and recognized at fair value when the contract does not have any future economic benefit to the entity and the fair value of the liability is determined based on the present value of the remaining obligation. The Company expenses all other costs related to an exit or disposal activity as incurred (See Note 16). |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Changes in Company's Allowance for Accounts Receivable | The changes in the Company’s allowance for accounts receivable were as follows for the periods ended (in thousands): Three Months Ended March 31, 2021 2020 Beginning balance $ 9,911 $ 8,118 Provision for doubtful accounts 4,712 8,083 Write-offs and adjustments (6,498) (7,730) Balance at end of period $ 8,125 $ 8,471 |
Schedule Of Depreciation And Amortization Expense | The Company’s depreciation and amortization included in the consolidated statements of operations consisted of the following (in thousands): Three Months Ended March 31, 2021 2020 Amortization of capitalized contract costs $ 127,769 $ 116,141 Amortization of definite-lived intangibles 15,018 17,441 Depreciation of property, plant and equipment 4,125 5,667 Total depreciation and amortization $ 146,912 $ 139,249 |
Schedule Of Foreign Translation Activity | Translation activity included in the statement of operations in other (income) expenses, net related to intercompany balances was as follows: (in thousands) Three Months Ended March 31, 2021 2020 Translation (gain) loss $ (572) $ 6,283 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Debt | The Company’s debt at March 31, 2021 and December 31, 2020 consisted of the following (in thousands): March 31, 2021 Outstanding Unamortized Unamortized Deferred Financing Costs (1) Net Carrying Long-Term Debt: 7.875% Senior Secured Notes Due 2022 $ 677,000 $ 6,905 $ (4,084) $ 679,821 7.625% Senior Notes Due 2023 400,000 — (2,031) 397,969 8.500% Senior Secured Notes Due 2024 225,000 — (3,304) 221,696 6.750% Senior Secured Notes Due 2027 600,000 — (5,537) 594,463 Senior Secured Term Loan - noncurrent 931,000 — (10,375) 920,625 Total Long-Term Debt 2,833,000 6,905 (25,331) 2,814,574 Senior Secured Term Loan - current 9,500 — — 9,500 Total Debt $ 2,842,500 $ 6,905 $ (25,331) $ 2,824,074 December 31, 2020 Outstanding Unamortized Unamortized Deferred Financing Costs (1) Net Carrying Long-Term Debt: 7.875% Senior Secured Notes due 2022 $ 677,000 $ 7,885 $ (4,697) $ 680,188 7.625% Senior Notes Due 2023 400,000 — (2,241) 397,759 8.500% Senior Secured Notes Due 2024 225,000 — (3,530) 221,470 6.750% Senior Secured Notes Due 2027 600,000 — (5,771) 594,229 Senior Secured Term Loan - noncurrent 933,375 — (10,921) 922,454 Total Long-Term Debt 2,835,375 7,885 (27,160) 2,816,100 Current Debt: Senior Secured Term Loan - current 9,500 — — 9,500 Total Debt $ 2,844,875 $ 7,885 $ (27,160) $ 2,825,600 |
Schedule of Deferred Financing Activity | As a result of these analyses, the following amounts of other expense and loss on extinguishment and deferred financing costs were recorded (in thousands): Original premium extinguished Previously deferred financing costs extinguished New financing costs Total other expense and loss on extinguishment Previously deferred financing costs rolled over New deferred financing costs Total deferred financing costs remaining after issuance Three months ended March 31, 2020 2027 Notes issuance - February 2020 $ (2,749) $ 4,033 $ 6,146 $ 7,430 $ 205 $ 6,346 $ 6,551 Term Loan issuance - February 2020 — 235 5,045 5,280 6,973 5,461 12,434 Total $ (2,749) $ 4,268 $ 11,191 $ 12,710 $ 7,178 $ 11,807 $ 18,985 Deferred financing costs are amortized to interest expense over the life of the issued debt. The Company had no debt issuances or related modification or extinguishment costs during the three months ended March 31, 2021. The following table presents deferred financing activity for the three months ended March 31, 2021 and 2020 (in thousands): Unamortized Deferred Financing Costs Balance December 31, 2020 Additions Early Extinguishment Amortized Balance March 31, 2021 Revolving Credit Facility $ 1,667 $ — $ — $ (100) $ 1,567 2020 Notes — — — — — 2022 Private Placement Notes — — — — — 2022 Notes 4,697 — — (613) 4,084 2023 Notes 2,241 — — (210) 2,031 2024 Notes 3,530 — — (226) 3,304 2027 Notes 5,771 — — (234) 5,537 Term Loan 10,921 — — (546) 10,375 Total Deferred Financing Costs $ 28,827 $ — $ — $ (1,929) $ 26,898 Unamortized Deferred Financing Costs Balance December 31, 2019 Additions Early Extinguishment Amortized Balance March 31, 2020 Revolving Credit Facility $ 1,123 $ 1,027 $ — $ (183) $ 1,967 2020 Notes 1,721 — (1,565) (156) — 2022 Private Placement Notes 451 (205) (221) (25) — 2022 Notes 9,532 — (2,247) (749) 6,536 2023 Notes 3,081 — — (210) 2,871 2024 Notes 4,431 — — (226) 4,205 2027 Notes — 6,551 — (78) 6,473 Term Loan 7,822 5,461 (235) (428) 12,620 Total Deferred Financing Costs $ 28,161 $ 12,834 $ (4,268) $ (2,055) $ 34,672 |
Retail Installment Contract R_2
Retail Installment Contract Receivables (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of Installment Receivables | The changes in the Company’s allowance for accounts receivable were as follows for the periods ended (in thousands): Three Months Ended March 31, 2021 2020 Beginning balance $ 9,911 $ 8,118 Provision for doubtful accounts 4,712 8,083 Write-offs and adjustments (6,498) (7,730) Balance at end of period $ 8,125 $ 8,471 |
Retail Installment Contracts | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of Installment Receivables | The following table summarizes the RIC receivables (in thousands): March 31, 2021 December 31, 2020 RIC receivables, gross $ 130,762 $ 145,000 RIC allowance (28,322) (28,848) Imputed interest (10,333) (13,275) RIC receivables, net $ 92,107 $ 102,877 Classified on the unaudited condensed consolidated unaudited balance sheets as: Accounts and notes receivable, net $ 44,918 $ 44,931 Long-term notes receivables and other assets, net 47,189 57,946 RIC receivables, net $ 92,107 $ 102,877 |
Schedule of Variable Consideration Allowance | The changes in the Company’s RIC allowance were as follows (in thousands): Three months ended March 31, 2021 Three months ended March 31, 2020 RIC allowance, beginning of period $ 28,848 $ 39,218 Write-offs (3,877) (7,222) Recoveries 1,134 1,705 Additions from RICs originated during the period 1,148 3,189 Change in expected credit losses — 1,515 Other adjustments (1) 1,069 (951) RIC allowance, end of period $ 28,322 $ 37,454 (1) Other adjustments primarily reflect changes in foreign currency exchange rates related to Canadian RICs. |
Business Combination (Tables)
Business Combination (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of Information Related to Business Combination | The following table reconciles the elements of the Business Combination to the consolidated statement of cash flows and the consolidated statement of changes in equity for the three months ended March 31, 2020: Recapitalization (in thousands) Cash - Mosaic (net of redemptions) $ 35,344 Cash - Subscribers and Forward Purchasers 453,221 Less fees to underwriters and other transaction costs (23,478) Net cash received from recapitalization 465,087 Less: Warrant derivative liabilities assumed (40,094) Less: non-cash net liabilities assumed from Mosaic (5) Less: deferred and accrued transaction costs (2,740) Net contributions from recapitalization $ 422,248 The number of shares of Common Stock of Vivint Smart Home Inc. issued immediately following the consummation of the Business Combination is summarized as follows: Number of Shares Common Stock outstanding prior to Business Combination 34,500,000 Less redemption of Mosaic Shares (31,074,592) Common Stock of Mosaic 3,425,408 Shares issued from Fortress PIPE 12,500,000 Shares from Blackstone PIPE 10,000,000 Shares from Additional Forward Purchaser Subscription Agreement 5,000,000 Shares from IPO Forward Purchaser Investment 15,789,474 Shares from Fortress Subscription and Backstop Agreement 2,698,753 Shares from Mosaic Founder Shares 10,379,386 Recapitalization shares 59,793,021 Legacy Vivint Smart Home equity holders 94,937,597 Total shares 154,730,618 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Company's Balance Sheet Components | The following table presents material balance sheet component balances (in thousands): March 31, 2021 December 31, 2020 Prepaid expenses and other current assets Prepaid expenses $ 22,480 $ 11,286 Deposits 1,561 1,308 Other 2,134 1,744 Total prepaid expenses and other current assets $ 26,175 $ 14,338 Capitalized contract costs Capitalized contract costs $ 3,592,821 $ 3,491,629 Accumulated amortization (2,302,645) (2,173,131) Capitalized contract costs, net $ 1,290,176 $ 1,318,498 Long-term notes receivables and other assets RIC receivables, gross $ 85,844 $ 100,069 RIC allowance (28,322) (28,848) RIC imputed interest (10,333) (13,275) Security deposits 1,055 835 Other 9,290 3,729 Total long-term notes receivables and other assets, net $ 57,534 $ 62,510 Accrued payroll and commissions Accrued commissions $ 21,677 $ 46,353 Accrued payroll 25,386 41,590 Total accrued payroll and commissions $ 47,063 $ 87,943 Accrued expenses and other current liabilities Accrued interest payable $ 33,479 $ 33,340 Current portion of derivative liability 129,959 142,755 Service warranty accrual 5,575 5,711 Current portion of Term Loan — 8,063 Accrued taxes 13,909 8,700 Accrued payroll taxes and withholdings 12,434 14,391 Loss contingencies 28,600 26,200 Other 9,064 8,164 Total accrued expenses and other current liabilities $ 233,020 $ 247,324 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Components of Property Plant and Equipment | Property, plant and equipment consisted of the following (in thousands): March 31, 2021 December 31, 2020 Estimated Useful Vehicles $ 39,583 $ 39,735 3 - 5 years Computer equipment and software 74,905 72,616 3 - 5 years Leasehold improvements 30,327 29,126 2 - 15 years Office furniture, fixtures and equipment 21,767 21,394 2 - 7 years Construction in process 5,762 6,180 Property, plant and equipment, gross 172,344 169,051 Accumulated depreciation and amortization (120,700) (116,672) Property, plant and equipment, net $ 51,644 $ 52,379 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Indefinite-Lived Intangible Assets | The following table presents intangible asset balances (in thousands): March 31, 2021 December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Estimated Definite-lived intangible assets: Customer contracts $ 970,044 $ (877,668) $ 92,376 $ 969,158 $ (862,352) $ 106,806 10 years Other technology 2,917 (2,604) 313 4,725 (4,309) 416 2 - 7 years Patents 10,907 (6,995) 3,912 10,843 (6,656) 4,187 5 years Total definite-lived intangible assets: $ 983,868 $ (887,267) $ 96,601 $ 1,008,826 $ (897,417) $ 111,409 Indefinite-lived intangible assets: Domain names 65 — 65 65 — 65 Total intangible assets, net $ 983,933 $ (887,267) $ 96,666 $ 1,008,891 $ (897,417) $ 111,474 |
Schedule of Definite-Lived Intangible Assets | The following table presents intangible asset balances (in thousands): March 31, 2021 December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Estimated Definite-lived intangible assets: Customer contracts $ 970,044 $ (877,668) $ 92,376 $ 969,158 $ (862,352) $ 106,806 10 years Other technology 2,917 (2,604) 313 4,725 (4,309) 416 2 - 7 years Patents 10,907 (6,995) 3,912 10,843 (6,656) 4,187 5 years Total definite-lived intangible assets: $ 983,868 $ (887,267) $ 96,601 $ 1,008,826 $ (897,417) $ 111,409 Indefinite-lived intangible assets: Domain names 65 — 65 65 — 65 Total intangible assets, net $ 983,933 $ (887,267) $ 96,666 $ 1,008,891 $ (897,417) $ 111,474 |
Schedule of Estimated Future Amortization Expense of Intangible Assets Excluding Patents Currently in Process | Estimated future amortization expense of intangible assets, excluding approximately $0.1 million in patents currently in process, is as follows as of March 31, 2021 (in thousands): 2021 - Remaining Period $ 44,905 2022 49,826 2023 720 2024 566 2025 502 Thereafter — Total estimated amortization expense $ 96,519 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | The following tables set forth the Company’s cash and cash equivalents' adjusted cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category recorded as cash and cash equivalents or long-term notes receivables and other assets, net as of March 31, 2021 and December 31, 2020 (in thousands): March 31, 2021 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash $ 244,280 $ — $ — $ 244,280 Money market funds 30,064 — — 30,064 Total cash and cash equivalents $ 274,344 $ — $ — $ 274,344 December 31, 2020 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Cash $ 283,750 $ — $ — $ 283,750 Money market funds 30,049 — — 30,049 Total cash and cash equivalents $ 313,799 $ — $ — $ 313,799 |
Schedule of Long-term Debt Instruments | Components of the Company's debt including the associated interest rates and related fair values are as follows (in thousands, except interest rates): March 31, 2021 December 31, 2020 Stated Interest Rate Issuance Face Value Estimated Fair Value Face Value Estimated Fair Value 2022 Notes 677,000 682,822 677,000 677,203 7.875 % 2023 Notes 400,000 414,080 400,000 415,200 7.625 % 2024 Notes 225,000 234,113 225,000 238,545 8.500 % 2027 Notes 600,000 644,700 600,000 645,300 6.750 % Term Loan 940,500 940,500 942,875 942,875 N/A Total $ 2,842,500 $ 2,916,215 $ 2,844,875 $ 2,919,123 |
Schedule of Derivative Liabilities at Fair Value | The following table summarizes the fair value and the notional amount of the Company’s outstanding consumer financing program derivative instrument as of March 31, 2021 and December 31, 2020 (in thousands): March 31, 2021 December 31, 2020 Consumer Financing Program Contractual Obligations: Fair value $ 217,096 $ 227,896 Notional amount 927,860 912,626 Classified on the condensed consolidated unaudited balance sheets as: Accrued expenses and other current liabilities 129,959 142,755 Other long-term obligations 87,137 85,141 Total Consumer Financing Program Contractual Obligation $ 217,096 $ 227,896 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation | The following table summarizes the change in the fair value of the Level 3 outstanding derivative instrument for the three months ended March 31, 2021 and 2020 (in thousands): Three months ended March 31, 2021 Three months ended March 31, 2020 Balance, beginning of period $ 227,896 $ 136,863 Additions 26,713 18,717 Settlements (23,685) (16,362) Net (gains) losses included in earnings (13,828) 2,221 Balance, end of period $ 217,096 $ 141,439 |
Schedule of Fair Value of Derivative Warranty Liabilities | The change in the fair value of the derivative warrant liabilities for the three months ended March 31, 2021 and 2020 is summarized as follows (in thousands): Three months ended March 31, 2021 Public Warrants Private Placement Warrants Total Derivative Warrant liability Balance, beginning of period $ 8,063 $ 75,531 $ 83,594 Change in fair value of warrant liability 1,350 (29,963) (28,613) Write-off fair value of unexercised expired warrants (490) — (490) Reclassification of derivative liabilities for exercised warrants (8,923) — (8,923) Balance, end of period $ — $ 45,568 $ 45,568 Three months ended March 31, 2020 Public Warrants Private Placement Warrants Total Derivative Warrant liability Warrant liability assumed from the Business Combination $ 9,775 $ 30,319 $ 40,094 Change in fair value of warrant liability 6,274 10,443 16,717 Balance, end of period $ 16,049 $ 40,762 $ 56,811 |
Fair Value Measurement Inputs and Valuation Techniques | The following table provides quantitative information regarding Level 3 fair value measurements inputs as their measurement dates: As of March 31, 2021 As of March 31, 2020 Number of private placement warrants 5,933,334 5,933,334 Exercise price $ 11.5 $ 11.5 Stock price $ 14.32 $ 12.54 Expiration term (in years) 3.80 4.80 Volatility 65 % 65 % Risk-free Rate 0.58 % 0.36 % Dividend yield — % — % |
Stock-Based Compensation and _2
Stock-Based Compensation and Equity (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation Expense | Stock-based compensation expense in connection with all stock-based awards is presented as follows (in thousands): Three Months Ended March 31, 2021 2020 Operating expenses $ 9,633 $ 1,320 Selling expenses 62,796 3,987 General and administrative expenses 14,608 5,484 Total stock-based compensation $ 87,037 $ 10,791 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Schedule of Lease Expense | The components of lease expense were as follows (in thousands): Three Months Ended March 31, 2021 2020 Operating lease cost $ 3,940 $ 4,174 Finance lease cost: Amortization of right-of-use assets $ 661 $ 1,407 Interest on lease liabilities 39 158 Total finance lease cost $ 700 $ 1,565 Supplemental cash flow information related to leases was as follows (in thousands): Three Months Ended March 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (4,230) $ (4,373) Operating cash flows from finance leases (39) (158) Financing cash flows from finance leases (500) (2,243) Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 405 $ 1,255 Finance leases 413 592 |
Schedule Of Supplemental Balance Sheet Information Related To Leases | Supplemental balance sheet information related to leases was as follows (in thousands, except lease term and discount rate): March 31, 2021 December 31, 2020 Operating Leases Operating lease right-of-use assets $ 50,486 $ 52,880 Current operating lease liabilities 12,062 12,135 Operating lease liabilities 47,081 49,692 Total operating lease liabilities $ 59,143 $ 61,827 Finance Leases Property, plant and equipment, gross $ 40,419 $ 40,571 Accumulated depreciation (23,499) (22,976) Property, plant and equipment, net $ 16,920 $ 17,595 Current finance lease liabilities $ 3,208 $ 3,356 Finance lease liabilities 1,701 2,460 Total finance lease liabilities $ 4,909 $ 5,816 Weighted Average Remaining Lease Term Operating leases 5 years 5 years Finance leases 1.4 years 1.6 years Weighted Average Discount Rate Operating leases 7 % 7 % Finance leases 4 % 4 % |
Schedule Of Maturities Of Financing Leases Liabilities | Maturities of lease liabilities were as follows (in thousands): Operating Leases Finance Leases Year Ending December 31, 2021 (excluding the three months ended March 31, 2021) $ 12,325 $ 2,503 2022 14,471 2,404 2023 13,943 152 2024 13,492 20 2025 8,079 — Thereafter 8,747 — Total lease payments 71,057 5,079 Less imputed interest (11,914) (170) Total $ 59,143 $ 4,909 |
Schedule Of Maturities Of Operating Leases Liabilities | Maturities of lease liabilities were as follows (in thousands): Operating Leases Finance Leases Year Ending December 31, 2021 (excluding the three months ended March 31, 2021) $ 12,325 $ 2,503 2022 14,471 2,404 2023 13,943 152 2024 13,492 20 2025 8,079 — Thereafter 8,747 — Total lease payments 71,057 5,079 Less imputed interest (11,914) (170) Total $ 59,143 $ 4,909 |
Segment Reporting and Busines_2
Segment Reporting and Business Concentrations (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | Revenues by geographic region were as follows (in thousands): United States Canada Total Revenue from external customers Three months ended March 31, 2021 $ 327,345 $ 15,948 $ 343,293 Three months ended March 31, 2020 285,422 17,810 303,232 |
Basic and Diluted Net Loss Pe_2
Basic and Diluted Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of the Company’s basic and diluted net loss attributable per share to common stockholders for the three and three months ended March 31, 2021 and 2020 (in thousands, except share and per-share amounts): Three Months Ended March 31, 2021 2020 Numerator: Net loss attributable to common stockholders $ (87,380) $ (145,096) Gain on change in fair value of warrants, diluted (29,963) — Net loss attributable to common stockholders, diluted $ (117,343) $ (145,096) Denominator: Shares used in computing net loss attributable per share to common stockholders, basic and diluted 206,791,625 151,010,847 Weighted-average effect of potentially dilutive shares to purchase common stock 2,197,455 — Shares used in computing net loss attributable per share to common stockholders, diluted 208,989,080 151,010,847 Net loss attributable per share to common stockholders: Basic $ (0.42) $ (0.96) Diluted $ (0.56) $ (0.96) |
Schedule of Potentially Dilutive Securities Excluded from Computation of Earnings Per Share | The following table discloses securities that could potentially dilute basic net loss per share in the future that were not included in the computation of diluted net loss per share because to do so would have been antidilutive for all periods presented: As of March 31, 2021 2020 Rollover SARs 2,452,311 3,402,188 Rollover LTIPs — 4,633,738 Rollover RSUs 51,929 51,929 RSUs 9,272,573 9,369,305 PSUs 4,692,084 5,193,238 Public warrants — 11,500,000 Private placement warrants — 5,933,334 Earnout shares reserved for future issuance 26,613 14,303,786 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies - Additional Information (Details) | 3 Months Ended | ||||
Mar. 31, 2021USD ($)paymentunit | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Jan. 17, 2020$ / shares | Dec. 31, 2019USD ($) | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Warrants, exercise price (dollars per share) | $ / shares | $ 11.50 | ||||
Accounts receivable, net | $ 22,100,000 | $ 19,800,000 | |||
Allowance for doubtful accounts | 8,125,000 | $ 8,471,000 | 9,911,000 | $ 8,118,000 | |
Provision for doubtful accounts | $ 4,712,000 | 8,083,000 | |||
Material right to renew contract, term | 3 years | ||||
Capitalized contract costs, expected period of benefit | 5 years | ||||
Impairments to long-lived assets | $ 0 | 0 | |||
Impairment to intangibles | 0 | 0 | |||
Amortization expenses included in interest expense | 949,000 | 951,000 | |||
Sales commission included in accrued expenses and other liabilities | 4,200,000 | 4,100,000 | |||
Other long-term obligations | 23,800,000 | 23,800,000 | |||
Advertising expenses incurred | $ 16,800,000 | 12,800,000 | |||
Uncertain income tax position, percentage | 50.00% | ||||
Number of reporting units | unit | 1 | ||||
Translation (gain) loss | $ (572,000) | 6,283,000 | |||
Vivint Sky Control Panels | |||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Percentage of installed panels | 93.00% | ||||
2GIG Sale | |||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Percentage of installed panels | 7.00% | ||||
Interest Expense | |||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Amortization expenses included in interest expense | $ 1,900,000 | $ 2,100,000 | |||
Minimum | |||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Liability percentage | 2.60% | ||||
Estimated useful life of intangible assets | 2 years | ||||
Maximum | |||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Liability percentage | 100.00% | ||||
Estimated useful life of intangible assets | 10 years | ||||
Notes Payable | |||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Deferred financing costs | $ 25,300,000 | 27,200,000 | |||
Deferred financing cost, accumulated amortization | $ 72,700,000 | 70,900,000 | |||
Vivint Flex Pay | |||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Number of payment options | payment | 3 | ||||
Vivint Flex Pay | Minimum | |||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Installment loans available to qualified customers, amount provided by third party | $ 150 | ||||
Installment loans available to qualified customers, annual percentage rate | 0.00% | ||||
Loans available to qualified customers, term of loan | 6 months | ||||
Vivint Flex Pay | Maximum | |||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Installment loans available to qualified customers, amount provided by third party | $ 6,000 | ||||
Installment loans available to qualified customers, annual percentage rate | 9.99% | ||||
Loans available to qualified customers, term of loan | 60 months | ||||
Subscriber Contracts | Minimum | |||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Contract with customer, term | 3 years | ||||
Subscriber Contracts | Maximum | |||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Contract with customer, term | 5 years | ||||
Revolving Credit Facility | |||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Issued and unused letters of credit | $ 315,500,000 | ||||
Line of Credit | Revolving Credit Facility | |||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Deferred financing costs | 1,600,000 | 1,700,000 | |||
Deferred financing cost, accumulated amortization | 11,100,000 | 11,000,000 | |||
Line of Credit | Letter of Credit | |||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Issued and unused letters of credit | $ 15,300,000 | $ 15,300,000 |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies - Accounts Receivable (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 9,911 | $ 8,118 |
Provision for doubtful accounts | 4,712 | 8,083 |
Write-offs and adjustments | (6,498) | (7,730) |
Balance at end of period | $ 8,125 | $ 8,471 |
Basis of Presentation and Sig_6
Basis of Presentation and Significant Accounting Policies - Depreciation and Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Total depreciation and amortization | $ 146,912 | $ 139,249 |
Depreciation of property, plant and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total depreciation and amortization | 4,125 | 5,667 |
Amortization of capitalized contract costs | ||
Property, Plant and Equipment [Line Items] | ||
Total depreciation and amortization | 127,769 | 116,141 |
Amortization of definite-lived intangibles | ||
Property, Plant and Equipment [Line Items] | ||
Total depreciation and amortization | $ 15,018 | $ 17,441 |
Revenue and Capitalized Contr_2
Revenue and Capitalized Contract Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Capitalized Contract Cost [Line Items] | |||
Service warranty accrual | $ 5,575 | $ 5,711 | |
Revenue recognized | 116,200 | $ 133,500 | |
Revenue expected to be recognized from remaining performance obligations for subscription contracts | $ 3,000,000 | ||
Capitalized contract cost, amortization period | 5 years | ||
Subscriber Contracts | Minimum | |||
Capitalized Contract Cost [Line Items] | |||
Contract with customer, term | 3 years | ||
Subscriber Contracts | Maximum | |||
Capitalized Contract Cost [Line Items] | |||
Contract with customer, term | 5 years |
Revenue and Capitalized Contr_3
Revenue and Capitalized Contract Costs - Remaining Performance Obligations (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | Mar. 31, 2021 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, expected period of satisfaction | 36 months |
Performance obligations expected to be satisfied, percentage | 62.00% |
Long-Term Debt - Summary of Deb
Long-Term Debt - Summary of Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Outstanding Principal, noncurrent debt | $ 2,833,000 | |
Outstanding Principal, total debt | 2,842,500 | $ 2,844,875 |
Unamortized Premium (Discount) | 6,905 | 7,885 |
Unamortized Deferred Financing Costs | (25,331) | (27,160) |
Net Carrying Amount, noncurrent | 2,814,574 | |
Net carrying amount, current | 0 | 8,063 |
Net Carrying Amount | $ 2,824,074 | 2,825,600 |
Long-term Debt | ||
Debt Instrument [Line Items] | ||
Outstanding Principal, noncurrent debt | 2,835,375 | |
Unamortized Premium (Discount) | 7,885 | |
Unamortized Deferred Financing Costs | (27,160) | |
Net Carrying Amount, noncurrent | $ 2,816,100 | |
Senior Notes | 7.875% Senior Secured Notes Due 2022 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate, percentage | 7.875% | 7.875% |
Outstanding Principal, noncurrent debt | $ 677,000 | $ 677,000 |
Unamortized Premium (Discount) | 6,905 | 7,885 |
Unamortized Deferred Financing Costs | (4,084) | (4,697) |
Net Carrying Amount, noncurrent | $ 679,821 | $ 680,188 |
Senior Notes | 7.625% Senior Notes Due 2023 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate, percentage | 7.625% | 7.625% |
Outstanding Principal, noncurrent debt | $ 400,000 | $ 400,000 |
Unamortized Premium (Discount) | 0 | 0 |
Unamortized Deferred Financing Costs | (2,031) | (2,241) |
Net Carrying Amount, noncurrent | $ 397,969 | $ 397,759 |
Senior Notes | 8.500% Senior Secured Notes Due 2024 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate, percentage | 8.50% | 8.50% |
Outstanding Principal, noncurrent debt | $ 225,000 | $ 225,000 |
Unamortized Premium (Discount) | 0 | 0 |
Unamortized Deferred Financing Costs | (3,304) | (3,530) |
Net Carrying Amount, noncurrent | $ 221,696 | $ 221,470 |
Senior Notes | 6.750% Senior Secured Notes Due 2027 | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate, percentage | 6.75% | 6.75% |
Outstanding Principal, noncurrent debt | $ 600,000 | $ 600,000 |
Unamortized Premium (Discount) | 0 | 0 |
Unamortized Deferred Financing Costs | (5,537) | (5,771) |
Net Carrying Amount, noncurrent | 594,463 | 594,229 |
Term Loan | Term Loan | ||
Debt Instrument [Line Items] | ||
Outstanding Principal, noncurrent debt | 931,000 | 933,375 |
Outstanding principal, current debt | 9,500 | 9,500 |
Unamortized Premium (Discount) | 0 | 0 |
Unamortized Deferred Financing Costs | (10,375) | (10,921) |
Net Carrying Amount, noncurrent | 920,625 | 922,454 |
Net carrying amount, current | 9,500 | 9,500 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Net Carrying Amount | 0 | 0 |
Deferred financing costs, net | $ 1,600 | $ 1,700 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | Aug. 01, 2024 | Jun. 01, 2023 | Sep. 21, 2022 | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||||
Outstanding borrowings | $ 2,824,074,000 | $ 2,825,600,000 | |||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Credit facility, aggregate principal amount | $ 350,000,000 | ||||
Step down, percentage | 0.25% | ||||
Commitment fee, step down (percentage) | 0.125% | ||||
Outstanding borrowings | $ 0 | $ 0 | |||
Issued and unused letters of credit | $ 315,500,000 | ||||
Revolving Credit Facility | Federal Funds Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable interest rate percentage | 0.50% | ||||
Revolving Credit Facility | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable interest rate percentage | 1.00% | ||||
Series A Revolving Commitments | Revolving Credit Facility | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable interest rate percentage | 3.00% | ||||
Series A Revolving Commitments | Revolving Credit Facility | Base Rate-based Borrowings | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable interest rate percentage | 2.00% | ||||
Series C- Revolving Commitments | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Credit facility, aggregate principal amount | $ 330,800,000 | ||||
Series C- Revolving Commitments | Revolving Credit Facility | Base Rate-based Borrowings | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable interest rate percentage | 2.00% | ||||
Senior Notes | 7.875% Senior Secured Notes Due 2022 | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 677,000,000 | ||||
Debt instrument interest rate, percentage | 7.875% | 7.875% | |||
Senior Notes | 7.625% Senior Notes Due 2023 | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 400,000,000 | ||||
Debt instrument interest rate, percentage | 7.625% | 7.625% | |||
Senior Notes | 8.500% Senior Secured Notes Due 2024 | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 225,000,000 | ||||
Debt instrument interest rate, percentage | 8.50% | 8.50% | |||
Senior Notes | 6.750% Senior Secured Notes Due 2027 | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 600,000,000 | ||||
Debt instrument interest rate, percentage | 6.75% | 6.75% | |||
Term Loan | Federal Funds Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable interest rate percentage | 0.50% | ||||
Term Loan | LIBOR | LIBOR Referenced To US Dollar Deposits | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable interest rate percentage | 1.00% | ||||
Term Loan | LIBOR | LIBOR Referenced To LIBOR For Dollars In Period Of Borrowing | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable interest rate percentage | 5.00% | ||||
Term Loan | Base Rate-based Borrowings | LIBOR Referenced To LIBOR For Dollars In Period Of Borrowing | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable interest rate percentage | 4.00% | ||||
Term Loan | February 2020 Issuance | |||||
Debt Instrument [Line Items] | |||||
Outstanding term loans, aggregate principal amount | $ 940,500,000 | ||||
Quarterly amortization payments, percent of principal amount outstanding | 0.25% | ||||
Letter of Credit | |||||
Debt Instrument [Line Items] | |||||
Outstanding borrowings | $ 15,300,000 | ||||
$125.0 Million 2023 Notes Remain Outstanding Or Has Not Been Refinanced | Forecast | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Days prior to maturity | 91 days | ||||
Debt instrument, principal amount outstanding threshold for accelerated maturity | $ 125,000,000 | ||||
$125.0 Million 2023 Notes Remain Outstanding Or Has Not Been Refinanced | Forecast | Senior Notes | 8.500% Senior Secured Notes Due 2024 | |||||
Debt Instrument [Line Items] | |||||
Days prior to maturity | 91 days | ||||
Debt instrument, principal amount outstanding threshold for accelerated maturity | $ 125,000,000 | ||||
$125.0 Million 2023 Notes Remain Outstanding Or Has Not Been Refinanced | Forecast | Senior Notes | 6.750% Senior Secured Notes Due 2027 | |||||
Debt Instrument [Line Items] | |||||
Days prior to maturity | 91 days | ||||
Debt instrument, principal amount outstanding threshold for accelerated maturity | $ 125,000,000 | ||||
$125.0 Million 2023 Notes Remain Outstanding Or Has Not Been Refinanced | Forecast | Term Loan | February 2020 Issuance | |||||
Debt Instrument [Line Items] | |||||
Days prior to maturity | 91 days | ||||
Debt instrument, principal amount outstanding threshold for accelerated maturity | $ 125,000,000 | ||||
$325.0 Million 2022 Notes Remain Outstanding Or Has Not Been Refinanced | Forecast | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Days prior to maturity | 91 days | ||||
Debt instrument, principal amount outstanding threshold for accelerated maturity | $ 350,000,000 | ||||
$125.0 Million 2024 Notes Remain Outstanding Or Has Not Been Refinanced | Forecast | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Days prior to maturity | 91 days | ||||
Debt instrument, principal amount outstanding threshold for accelerated maturity | $ 125,000,000 |
Long-Term Debt - Debt Modificat
Long-Term Debt - Debt Modification and Extinguishments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Debt Instrument [Line Items] | ||
Original premium extinguished | $ (2,749) | |
Previously deferred financing costs extinguished | $ 0 | 4,268 |
New financing costs | 11,191 | |
Total other expense and loss on extinguishment | 12,710 | |
Previously deferred financing costs rolled over | 7,178 | |
New deferred financing costs | 11,807 | |
Total deferred financing costs remaining after issuance | 18,985 | |
Senior Notes | 6.750% Senior Secured Notes Due 2027 | ||
Debt Instrument [Line Items] | ||
Previously deferred financing costs extinguished | 0 | 0 |
Senior Notes | 6.750% Senior Secured Notes Due 2027 | 2027 Notes issuance - February 2020 | ||
Debt Instrument [Line Items] | ||
Original premium extinguished | (2,749) | |
Previously deferred financing costs extinguished | 4,033 | |
New financing costs | 6,146 | |
Total other expense and loss on extinguishment | 7,430 | |
Previously deferred financing costs rolled over | 205 | |
New deferred financing costs | 6,346 | |
Total deferred financing costs remaining after issuance | 6,551 | |
Term Loan | Term Loan | ||
Debt Instrument [Line Items] | ||
Previously deferred financing costs extinguished | $ 0 | 235 |
Term Loan | Term Loan | Term Loan issuance - February 2020 | ||
Debt Instrument [Line Items] | ||
Original premium extinguished | 0 | |
Previously deferred financing costs extinguished | 235 | |
New financing costs | 5,045 | |
Total other expense and loss on extinguishment | 5,280 | |
Previously deferred financing costs rolled over | 6,973 | |
New deferred financing costs | 5,461 | |
Total deferred financing costs remaining after issuance | $ 12,434 |
Long-Term Debt - Deferred Finan
Long-Term Debt - Deferred Financing Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Deferred Financing Activity [Roll Forward] | ||
Beginning balance | $ 28,827 | $ 28,161 |
Additions | 0 | 12,834 |
Early Extinguishment | 0 | (4,268) |
Amortized | (1,929) | (2,055) |
Ending balance | 26,898 | 34,672 |
Senior Notes | 2020 Notes | ||
Deferred Financing Activity [Roll Forward] | ||
Beginning balance | 0 | 1,721 |
Additions | 0 | 0 |
Early Extinguishment | 0 | (1,565) |
Amortized | 0 | (156) |
Ending balance | 0 | 0 |
Senior Notes | 2022 Private Placement Notes | ||
Deferred Financing Activity [Roll Forward] | ||
Beginning balance | 0 | 451 |
Additions | 0 | (205) |
Early Extinguishment | 0 | (221) |
Amortized | 0 | (25) |
Ending balance | 0 | 0 |
Senior Notes | 2022 Notes | ||
Deferred Financing Activity [Roll Forward] | ||
Beginning balance | 4,697 | 9,532 |
Additions | 0 | 0 |
Early Extinguishment | 0 | (2,247) |
Amortized | (613) | (749) |
Ending balance | 4,084 | 6,536 |
Senior Notes | 2023 Notes | ||
Deferred Financing Activity [Roll Forward] | ||
Beginning balance | 2,241 | 3,081 |
Additions | 0 | 0 |
Early Extinguishment | 0 | 0 |
Amortized | (210) | (210) |
Ending balance | 2,031 | 2,871 |
Senior Notes | 2024 Notes | ||
Deferred Financing Activity [Roll Forward] | ||
Beginning balance | 3,530 | 4,431 |
Additions | 0 | 0 |
Early Extinguishment | 0 | 0 |
Amortized | (226) | (226) |
Ending balance | 3,304 | 4,205 |
Senior Notes | 2027 Notes | ||
Deferred Financing Activity [Roll Forward] | ||
Beginning balance | 5,771 | 0 |
Additions | 0 | 6,551 |
Early Extinguishment | 0 | 0 |
Amortized | (234) | (78) |
Ending balance | 5,537 | 6,473 |
Term Loan | Term Loan | ||
Deferred Financing Activity [Roll Forward] | ||
Beginning balance | 10,921 | 7,822 |
Additions | 0 | 5,461 |
Early Extinguishment | 0 | (235) |
Amortized | (546) | (428) |
Ending balance | 10,375 | 12,620 |
Revolving Credit Facility | Line of Credit | ||
Deferred Financing Activity [Roll Forward] | ||
Beginning balance | 1,667 | 1,123 |
Additions | 0 | 1,027 |
Early Extinguishment | 0 | 0 |
Amortized | (100) | (183) |
Ending balance | $ 1,567 | $ 1,967 |
Retail Installment Contract R_3
Retail Installment Contract Receivables - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Retail Installment Contracts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Interest income | $ (2.2) | $ (2.9) |
Vivint Flex Pay | Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Installment loans available to qualified customers, term | 42 months | |
Vivint Flex Pay | Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Installment loans available to qualified customers, term | 60 months |
Retail Installment Contract R_4
Retail Installment Contract Receivables - Installment Receivables (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
RIC allowance | $ (28,322) | $ (28,848) | ||
Imputed interest | (10,333) | (13,275) | ||
Classified on the unaudited condensed consolidated unaudited balance sheets as: | ||||
Accounts and notes receivable, net | 66,985 | 64,697 | ||
Long-term notes receivables and other assets, net | 57,534 | 62,510 | ||
Retail Installment Contracts | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
RIC receivables, gross | 130,762 | 145,000 | ||
RIC allowance | (28,322) | (28,848) | $ (37,454) | $ (39,218) |
RIC receivables, net | 92,107 | 102,877 | ||
Classified on the unaudited condensed consolidated unaudited balance sheets as: | ||||
Accounts and notes receivable, net | 44,918 | 44,931 | ||
Long-term notes receivables and other assets, net | $ 47,189 | $ 57,946 |
Retail Installment Contract R_5
Retail Installment Contract Receivables - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
RIC allowance, beginning of period | $ 28,848 | |
Recoveries | 1,134 | $ 1,705 |
RIC allowance, end of period | 28,322 | |
Retail Installment Contracts | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
RIC allowance, beginning of period | 28,848 | 39,218 |
Write-offs | (3,877) | (7,222) |
Additions from RICs originated during the period | 1,148 | 3,189 |
Change in expected credit losses | 0 | 1,515 |
Other Adjustments | 1,069 | (951) |
RIC allowance, end of period | $ 28,322 | $ 37,454 |
Business Combination (Details)
Business Combination (Details) $ / shares in Units, $ in Millions | Jan. 17, 2020USD ($)$ / sharesshares | Jan. 16, 2020$ / shares | Mar. 31, 2021$ / shares | Dec. 31, 2020$ / shares |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||
Warrants, expiration period | 5 years | |||
Merger | ||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | |||
Warrants, expiration period | 5 years | |||
Shares from Fortress Subscription and Backstop Agreement (in shares) | 2,698,753 | |||
Shares from Additional Forward Purchaser Subscription Agreement (in shares) | 5,000,000 | |||
Forward Purchase Agreement, share purchase price (in dollars per share) | $ / shares | $ 10 | |||
Percentage of Mosaic Sponsor LLC's founder shares and private placement warrants forfeited (percent) | 25.00% | |||
Common stock issued per share of founder share forfeited | 1.20 | |||
Shares from IPO Forward Purchaser Investment (in shares) | 15,789,474 | |||
Conversion ratio of founder shares | 1.20 | |||
Conversion ratio of preferred stock to common stock | 1.43 | |||
Merger | Fortress Investment Group | ||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||
Shares from Fortress Subscription and Backstop Agreement (in shares) | 2,698,753 | |||
Purchase price of shares | $ | $ 27.8 | |||
Shares redeemed (in shares) | 31,074,592 | |||
Price of shares redeemed (in dollars per share) | $ / shares | $ 10.29 | |||
Merger | Legacy Vivint Smart Home | ||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||
Merger | Fortress Investment Group | ||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||
Shares issued from PIPE (in shares) | 12,500,000 | |||
Purchase price of shares | $ | $ 125 | |||
Merger | Blackstone Management Partners L.L.C. | ||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||
Shares issued from PIPE (in shares) | 10,000,000 | |||
Purchase price of shares | $ | $ 100 | |||
Merger | Certain Investors | ||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||
Shares from IPO Forward Purchaser Investment (in shares) | 15,789,474 | |||
IPO Forward Purchase Investment, share purchase price (in dollars per share) | $ / shares | $ 9.50 | |||
Common Class A | ||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | |||
Common Class A | Merger | ||||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||||
Conversion ratio for legacy shares | 84.5320916792 | |||
Conversion ratio for founder shares | 1.20 |
Business Combination - Schedule
Business Combination - Schedule Of Net Impact (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Jan. 17, 2020 | |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||
Net cash received from recapitalization | $ 0 | $ 465,087 | |
Less: Warrant derivative liabilities assumed | $ (40,094) | ||
Merger | |||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||
Cash - Mosaic (net of redemptions) | 35,344 | ||
Cash - Subscribers and Forward Purchasers | 453,221 | ||
Less fees to underwriters and other transaction costs | (23,478) | ||
Net cash received from recapitalization | 465,087 | ||
Less: non-cash net liabilities assumed from Mosaic | (5) | ||
Less: deferred and accrued transaction costs | (2,740) | ||
Net contributions from recapitalization | $ 422,248 |
Business Combination - Schedu_2
Business Combination - Schedule of Shares Issued (Details) - shares | Jan. 17, 2020 | Mar. 31, 2021 | Dec. 31, 2020 |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||
Common stock, outstanding (in shares) | 154,730,618 | 208,670,866 | 202,216,341 |
Merger | |||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||
Shares from Additional Forward Purchaser Subscription Agreement (in shares) | 5,000,000 | ||
Shares from IPO Forward Purchaser Investment (in shares) | 15,789,474 | ||
Shares from Fortress Subscription and Backstop Agreement (in shares) | 2,698,753 | ||
Shares from Mosaic Founder Shares (in shares) | 10,379,386 | ||
Recapitalization shares (in shares) | 59,793,021 | ||
Mosaic | Merger | |||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||
Common Stock outstanding prior to Business Combination (in shares) | 34,500,000 | ||
Less redemption of Mosaic Shares (in shares) | (31,074,592) | ||
Common Stock of Mosaic Shares (in shares) | 3,425,408 | ||
Fortress Investment Group | Merger | |||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||
Shares issued from PIPE (in shares) | 12,500,000 | ||
Blackstone Management Partners L.L.C. | Merger | |||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||
Shares issued from PIPE (in shares) | 10,000,000 | ||
Legacy Vivint Smart Home | Merger | |||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |||
Common stock, outstanding (in shares) | 94,937,597 |
Business Combination - Earnout
Business Combination - Earnout Consideration (Details) - Merger - $ / shares | Jan. 17, 2020 | Feb. 29, 2020 |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||
Earnout consideration, contingent shares (in shares) | 37,500,000 | |
First Share Issuance | ||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||
Earnout consideration, contingent stock, first issuance (in shares) | 12,500,000 | |
Earnout consideration, threshold share price (in dollars per share) | $ 12.50 | |
Earnout consideration, threshold trading days | 20 days | |
Earnout consideration, threshold trading day period | 30 days | |
Earnout consideration, shares issued (in shares) | 37,321,352 | |
Second Share Issuance | ||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||
Earnout consideration, contingent stock, first issuance (in shares) | 12,500,000 | |
Earnout consideration, threshold share price (in dollars per share) | $ 15 | |
Earnout consideration, threshold trading days | 20 days | |
Earnout consideration, threshold trading day period | 30 days | |
Third Share Issuance | ||
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | ||
Earnout consideration, contingent stock, first issuance (in shares) | 12,500,000 | |
Earnout consideration, threshold share price (in dollars per share) | $ 17.50 | |
Earnout consideration, threshold trading days | 20 days | |
Earnout consideration, threshold trading day period | 30 days |
Balance Sheet Components (Detai
Balance Sheet Components (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Prepaid expenses and other current assets | ||
Prepaid expenses | $ 22,480 | $ 11,286 |
Deposits | 1,561 | 1,308 |
Other | 2,134 | 1,744 |
Total prepaid expenses and other current assets | 26,175 | 14,338 |
Capitalized contract costs | ||
Capitalized contract costs | 3,592,821 | 3,491,629 |
Accumulated amortization | (2,302,645) | (2,173,131) |
Capitalized contract costs, net | 1,290,176 | 1,318,498 |
Long-term notes receivables and other assets | ||
RIC receivables, gross | 85,844 | 100,069 |
RIC allowance | (28,322) | (28,848) |
RIC imputed interest | (10,333) | (13,275) |
Security deposits | 1,055 | 835 |
Other | 9,290 | 3,729 |
Total long-term notes receivables and other assets, net | 57,534 | 62,510 |
Accrued payroll and commissions | ||
Accrued commissions | 21,677 | 46,353 |
Accrued payroll | 25,386 | 41,590 |
Total accrued payroll and commissions | 47,063 | 87,943 |
Accrued expenses and other current liabilities | ||
Accrued interest payable | 33,479 | 33,340 |
Current portion of derivative liability | 129,959 | 142,755 |
Service warranty accrual | 5,575 | 5,711 |
Current portion of Term Loan | 0 | 8,063 |
Accrued taxes | 13,909 | 8,700 |
Accrued payroll taxes and withholdings | 12,434 | 14,391 |
Loss contingencies | 28,600 | 26,200 |
Other | 9,064 | 8,164 |
Total accrued expenses and other current liabilities | $ 233,020 | $ 247,324 |
Property Plant and Equipment -
Property Plant and Equipment - Components of Property Plant and Equipment (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 172,344 | $ 169,051 |
Accumulated depreciation and amortization | (120,700) | (116,672) |
Property, plant and equipment, net | 51,644 | 52,379 |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 39,583 | 39,735 |
Vehicles | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 3 years | |
Vehicles | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 5 years | |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 74,905 | 72,616 |
Computer equipment and software | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 3 years | |
Computer equipment and software | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 5 years | |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 30,327 | 29,126 |
Leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 2 years | |
Leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 15 years | |
Office furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 21,767 | 21,394 |
Office furniture, fixtures and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 2 years | |
Office furniture, fixtures and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 7 years | |
Construction in process | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 5,762 | $ 6,180 |
Property Plant and Equipment _2
Property Plant and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Property plant and equipment subject to finance lease | $ 16,920 | $ 17,595 | |
Property plant and equipment subject to finance lease, accumulated amortization | 23,500 | $ 23,000 | |
Depreciation and amortization expense | $ 4,100 | $ 5,700 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 837,386 | $ 837,077 | |
Amortization expense related to intangible assets | $ 15,000 | $ 17,400 | |
Definite-lived intangible assets, remaining amortization period | 1 year 8 months 12 days | ||
Patents currently in process | $ 100 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Definite-lived intangible assets, gross carrying amount | $ 983,868 | $ 1,008,826 |
Accumulated Amortization | (887,267) | (897,417) |
Definite-lived intangible assets, net carrying amount | 96,601 | 111,409 |
Total intangible assets, gross carrying amount | 983,933 | 1,008,891 |
Total intangible assets, net carrying amount | 96,666 | 111,474 |
Customer contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Definite-lived intangible assets, gross carrying amount | 970,044 | 969,158 |
Accumulated Amortization | (877,668) | (862,352) |
Definite-lived intangible assets, net carrying amount | $ 92,376 | 106,806 |
Estimated Useful Lives | 10 years | |
Other technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Definite-lived intangible assets, gross carrying amount | $ 2,917 | 4,725 |
Accumulated Amortization | (2,604) | (4,309) |
Definite-lived intangible assets, net carrying amount | 313 | 416 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Definite-lived intangible assets, gross carrying amount | 10,907 | 10,843 |
Accumulated Amortization | (6,995) | (6,656) |
Definite-lived intangible assets, net carrying amount | $ 3,912 | 4,187 |
Estimated Useful Lives | 5 years | |
Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 2 years | |
Minimum | Other technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 2 years | |
Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 10 years | |
Maximum | Other technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 7 years | |
Domain names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets: | $ 65 | $ 65 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Future Amortization Expense (Detail) $ in Thousands | Mar. 31, 2021USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2021 - Remaining Period | $ 44,905 |
2022 | 49,826 |
2023 | 720 |
2024 | 566 |
2025 | 502 |
Thereafter | 0 |
Total estimated amortization expense | $ 96,519 |
Financial Instruments - Valuati
Financial Instruments - Valuation Approach Applied to Each Class of Security (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | $ 244,280 | $ 283,750 |
Adjusted Cost | 274,344 | 313,799 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 274,344 | 313,799 |
Money market funds | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Adjusted Cost | 30,064 | 30,049 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | $ 30,064 | $ 30,049 |
Financial Instruments - Debt Fa
Financial Instruments - Debt Fair Value and Carrying Value (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Face Value | $ 2,824,074 | $ 2,825,600 |
Level 2 | ||
Debt Instrument [Line Items] | ||
Face Value | 2,842,500 | 2,844,875 |
Estimated Fair Value | $ 2,916,215 | $ 2,919,123 |
Senior Notes | 2022 Notes | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate (percent) | 7.875% | 7.875% |
Senior Notes | 2022 Notes | Level 2 | ||
Debt Instrument [Line Items] | ||
Face Value | $ 677,000 | $ 677,000 |
Estimated Fair Value | $ 682,822 | $ 677,203 |
Senior Notes | 2023 Notes | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate (percent) | 7.625% | 7.625% |
Senior Notes | 2023 Notes | Level 2 | ||
Debt Instrument [Line Items] | ||
Face Value | $ 400,000 | $ 400,000 |
Estimated Fair Value | $ 414,080 | $ 415,200 |
Senior Notes | 2024 Notes | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate (percent) | 8.50% | 8.50% |
Senior Notes | 2024 Notes | Level 2 | ||
Debt Instrument [Line Items] | ||
Face Value | $ 225,000 | $ 225,000 |
Estimated Fair Value | $ 234,113 | $ 238,545 |
Senior Notes | 2027 Notes | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate (percent) | 6.75% | 6.75% |
Senior Notes | 2027 Notes | Level 2 | ||
Debt Instrument [Line Items] | ||
Face Value | $ 600,000 | $ 600,000 |
Estimated Fair Value | 644,700 | 645,300 |
Term Loan | Level 2 | ||
Debt Instrument [Line Items] | ||
Face Value | 940,500 | 942,875 |
Estimated Fair Value | $ 940,500 | $ 942,875 |
Financial Instruments - Derivat
Financial Instruments - Derivative Fair Value (Details) - Level 2 - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Fair value | $ 217,096 | $ 227,896 |
Notional amount | 927,860 | 912,626 |
Accrued expenses and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value | 129,959 | 142,755 |
Other long-term obligations | ||
Derivatives, Fair Value [Line Items] | ||
Fair value | $ 87,137 | $ 85,141 |
Financial Instruments - Level 3
Financial Instruments - Level 3 (Details) - Fair Value, Inputs, Level 3 - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Balance, beginning of period | $ 227,896 | $ 136,863 |
Additions | 26,713 | 18,717 |
Settlements | (23,685) | (16,362) |
Net (gains) losses included in earnings | (13,828) | 2,221 |
Balance, end of period | $ 217,096 | $ 141,439 |
Financial Instruments - Change
Financial Instruments - Change in Fair Value of Derivative Warrant Liabilities (Details) - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended |
Mar. 31, 2020 | Mar. 31, 2021 | |
Warrant Derivative Liabilities [Roll Forward] | ||
Balance, beginning of period, non-current | $ 75,531 | |
Balance, end of period, non-current | 45,568 | |
Balance, beginning of period | $ 40,094 | 83,594 |
Change in fair value of warrant liability | 16,717 | (28,613) |
Write-off fair value of unexercised expired warrants | (490) | |
Reclassification of derivative liabilities for exercised warrants | (8,923) | |
Balance, end of period | 56,811 | 45,568 |
Public warrants | ||
Warrant Derivative Liabilities [Roll Forward] | ||
Balance, beginning of period, current | 9,775 | 8,063 |
Change in fair value of warrant liability | 6,274 | 1,350 |
Write-off fair value of unexercised expired warrants | (490) | |
Reclassification of derivative liabilities for exercised warrants | (8,923) | |
Balance, end of period, current | 16,049 | 0 |
Private placement warrants | ||
Warrant Derivative Liabilities [Roll Forward] | ||
Balance, beginning of period, non-current | 30,319 | 75,531 |
Change in fair value of warrant liability | 10,443 | (29,963) |
Write-off fair value of unexercised expired warrants | 0 | |
Reclassification of derivative liabilities for exercised warrants | 0 | |
Balance, end of period, non-current | $ 40,762 | $ 45,568 |
Financial Instruments - Quantit
Financial Instruments - Quantitative Information Regarding Level 3 Measurement Inputs (Details) | Mar. 31, 2021$ / sharesshares | Mar. 31, 2020$ / sharesshares |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants outstanding (in shares) | 0 | |
Private placement warrants | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants outstanding (in shares) | 5,933,334 | |
Warrant | Private placement warrants | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants outstanding (in shares) | 5,933,334 | 5,933,334 |
Warrant | Private placement warrants | Measurement Input, Exercise Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants outstanding, measurement input | $ / shares | 11.5 | 11.5 |
Warrant | Private placement warrants | Measurement Input, Stock Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants outstanding, measurement input | $ / shares | 14.32 | 12.54 |
Warrant | Private placement warrants | Measurement Input, Expected Term | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Expiration term (in years) | 3 years 9 months 18 days | 4 years 9 months 18 days |
Warrant | Private placement warrants | Measurement Input, Volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants outstanding, measurement input | 0.65 | 0.65 |
Warrant | Private placement warrants | Measurement Input, Risk Free Interest Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants outstanding, measurement input | 0.0058 | 0.0036 |
Warrant | Private placement warrants | Measurement Input, Expected Dividend Yield | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants outstanding, measurement input | 0 | 0 |
Income Taxes (Detail)
Income Taxes (Detail) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax benefit rate, percentage | (0.28%) | (0.54%) |
Stock-Based Compensation and _3
Stock-Based Compensation and Equity - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | ||||
Jan. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Jan. 07, 2021 | Dec. 31, 2020 | Jan. 17, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock, authorized (in shares) | 3,000,000,000 | 3,000,000,000 | ||||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | ||||
Common stock, issued (in shares) | 208,670,866 | 202,216,341 | ||||
Common stock, outstanding (in shares) | 208,670,866 | 202,216,341 | 154,730,618 | |||
Preferred stock, shares authorized (in shares) | 300,000,000 | 300,000,000 | ||||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | ||||
Preferred stock, shares issued (in shares) | 0 | 0 | ||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | ||||
Warrants outstanding (in shares) | 0 | |||||
Number of shares of common stock called by each warrant (in shares) | 1 | |||||
Warrants, exercise price (dollars per share) | $ 11.50 | |||||
Warrants, period before warrants become exercisable | 30 days | |||||
Warrants, expiration period | 5 years | |||||
Call price, cash (in dollars per share) | $ 0.01 | |||||
Warrants, call feature notice period | 30 days | |||||
Warrant, threshold closing share price for share redemption (in dollars per share) | $ 18 | |||||
Warrants, threshold trading days | 20 days | |||||
Warrants, threshold trading day period | 30 days | |||||
Warrants, threshold closing share price for share redemption (in dollars per share) | $ 10 | |||||
Warrants, redemption price per warrant (in dollars per share) | $ 0.01 | |||||
Warrant redemption, exercise price (in dollars per share) | 11.50 | |||||
Warrants, unexercised, redemption price (in dollars per share) | $ 0.01 | |||||
Proceeds from warrant exercises | $ 10,819,000 | $ 0 | ||||
Private placement warrants | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Warrants outstanding (in shares) | 5,933,334 | |||||
Private placement warrants, period before warrants become transferable, assignable or salable | 30 days | |||||
Rollover LTIPs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Amount not yet recognized related to nonvested awards | $ 0 | |||||
Shares issued (in shares) | 1,609,627 | |||||
Incentive units issued as share-based compensation awards, outstanding (in shares) | 0 | |||||
Common Class A | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock, authorized (in shares) | 3,000,000,000 | |||||
Common stock, par value (in dollars per share) | $ 0.0001 | |||||
Common stock, outstanding (in shares) | 208,670,866 | |||||
Warrants, exercise price (dollars per share) | $ 11.50 | |||||
Warrants exercised (in shares) | 825,016 | 0 | ||||
Restricted Stock | Rollover Awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Amount not yet recognized related to nonvested awards | $ 0 | |||||
Tracking Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Amount not yet recognized related to nonvested awards | $ 1,400,000 | |||||
Shares outstanding (in shares) | 1,682,522 | |||||
Rollover SARs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Amount not yet recognized related to nonvested awards | $ 0 | |||||
Earnout Shares | Rollover LTIPs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares issued (in shares) | 847,141 | |||||
RSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Amount not yet recognized related to nonvested awards | $ 160,000,000 | |||||
Incentive units issued as share-based compensation awards, outstanding (in shares) | 8,965,010 | |||||
Number of shares of common stock each equity instrument has a right to receive (in shares) | 1 | |||||
Vesting period | 4 years | |||||
Award vesting rights, percentage | 25.00% | |||||
Share grant (in shares) | 2,682,916 | |||||
RSUs | Rollover Awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Amount not yet recognized related to nonvested awards | $ 0 | |||||
PSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Amount not yet recognized related to nonvested awards | $ 73,700,000 | |||||
Shares outstanding (in shares) | 4,949,956 | |||||
Number of shares of common stock each equity instrument has a right to receive (in shares) | 1 | |||||
Share grant (in shares) | 2,550,916 | |||||
PSUs | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 1 year | |||||
PSUs | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years |
Stock-Based Compensation and _4
Stock-Based Compensation and Equity - Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation | $ 87,037 | $ 10,791 |
Operating expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation | 9,633 | 1,320 |
Selling expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation | 62,796 | 3,987 |
General and administrative expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation | $ 14,608 | $ 5,484 |
Commitments and Contingencies (
Commitments and Contingencies (Detail) - USD ($) $ in Millions | May 03, 2021 | Jan. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Loss Contingencies [Line Items] | ||||
Loss contingency accrual | $ 28.6 | $ 26.2 | ||
DOJ FIRREA Investigation | ||||
Loss Contingencies [Line Items] | ||||
Payments for legal settlements | $ 3.2 | |||
FTC Investigation | Subsequent Event | ||||
Loss Contingencies [Line Items] | ||||
Payments for legal settlements | $ 20 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Lessee, Lease, Description [Line Items] | ||
Operating and finance leases, renewal term | 10 years | |
Operating and finance leases, options to terminate lease, term | 1 year | |
Operating lease cost | $ 3,940 | $ 4,174 |
Finance lease cost: | ||
Amortization of right-of-use assets | 661 | 1,407 |
Interest on lease liabilities | 39 | 158 |
Total finance lease cost | $ 700 | $ 1,565 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Operating and finance leases, remaining lease term | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Operating and finance leases, remaining lease term | 7 years |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ (4,230) | $ (4,373) |
Operating cash flows from finance leases | (39) | (158) |
Financing cash flows from finance leases | (500) | (2,243) |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | 405 | 1,255 |
Finance leases | $ 413 | $ 592 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Operating Leases | ||
Operating lease right-of-use assets | $ 50,486 | $ 52,880 |
Current operating lease liabilities | 12,062 | 12,135 |
Operating lease liabilities | 47,081 | 49,692 |
Total operating lease liabilities | 59,143 | 61,827 |
Finance Leases | ||
Property, plant and equipment, gross | 40,419 | 40,571 |
Accumulated depreciation | (23,499) | (22,976) |
Property, plant and equipment, net | 16,920 | 17,595 |
Current finance lease liabilities | 3,208 | 3,356 |
Finance lease liabilities | 1,701 | 2,460 |
Total finance lease liabilities | $ 4,909 | $ 5,816 |
Weighted Average Remaining Lease Term | ||
Operating leases, weighted average remaining lease term | 5 years | 5 years |
Finance leases, weighted average remaining lease term | 1 year 4 months 24 days | 1 year 7 months 6 days |
Weighted Average Discount Rate | ||
Operating leases, weighted average discount rate, percentage | 7.00% | 7.00% |
Finance leases, weighted average discount rate, percentage | 4.00% | 4.00% |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | ASSETS | ASSETS |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Operating Leases | ||
2021 (excluding the three months ended March 31, 2021) | $ 12,325 | |
2022 | 14,471 | |
2023 | 13,943 | |
2024 | 13,492 | |
2025 | 8,079 | |
Thereafter | 8,747 | |
Total lease payments | 71,057 | |
Less imputed interest | (11,914) | |
Total | 59,143 | $ 61,827 |
Finance Leases | ||
2021 (excluding the three months ended March 31, 2021) | 2,503 | |
2022 | 2,404 | |
2023 | 152 | |
2024 | 20 | |
2025 | 0 | |
Thereafter | 0 | |
Total lease payments | 5,079 | |
Less imputed interest | (170) | |
Total | $ 4,909 | $ 5,816 |
Related Party Transactions (Det
Related Party Transactions (Detail) - USD ($) | Mar. 03, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Feb. 29, 2020 | Jan. 17, 2020 |
Related Party Transaction [Line Items] | ||||||
Additional expenses incurred for other related-party transactions | $ 100,000 | $ 100,000 | ||||
Accrued expenses and other current liabilities | 233,020,000 | $ 247,324,000 | ||||
Blackstone monitoring fee, a related party | 9,500,000 | |||||
Outstanding borrowings | 2,824,074,000 | 2,825,600,000 | ||||
Blackstone Management Partners L.L.C. | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage of voting shares held, threshold (percent) | 5.00% | |||||
Fair market value of voting shares held, threshold | $ 25,000,000 | |||||
Affiliated Entity | Minimum | ||||||
Related Party Transaction [Line Items] | ||||||
Annual monitoring base fee, minimum | 2,700,000 | |||||
Blackstone Management Partners L.L.C. | ||||||
Related Party Transaction [Line Items] | ||||||
Monitoring fee (percent) | 1.00% | |||||
Solar | ||||||
Related Party Transaction [Line Items] | ||||||
Related party agreement, term | 1 year | |||||
Related party agreement, renewal term | 1 year | |||||
Related party agreement, renewal term notice period | 90 days | |||||
Solar | Affiliated Entity | ||||||
Related Party Transaction [Line Items] | ||||||
Sublease and other administrative expenses | 1,000,000 | |||||
Blackstone Management Partners L.L.C. | Affiliated Entity | ||||||
Related Party Transaction [Line Items] | ||||||
Expenses incurred for services | 1,400,000 | 1,700,000 | ||||
Blackstone Management Partners L.L.C. | Blackstone Management Partners LLC Support and Services Agreement | Affiliated Entity | ||||||
Related Party Transaction [Line Items] | ||||||
Maximum advisory fee obligation | 1,500,000 | |||||
Expenses related to support and services agreement | 0 | $ 0 | ||||
Blackstone Advisory Partners L.P. | Affiliated Entity | ||||||
Related Party Transaction [Line Items] | ||||||
Deferred financing costs | 1,000,000 | $ 1,500,000 | ||||
Blackstone Advisory Partners L.P. | Term Loan | Affiliated Entity | ||||||
Related Party Transaction [Line Items] | ||||||
Outstanding borrowings | 187,000,000 | 166,100,000 | ||||
Fortress Investment Group | Affiliated Entity | ||||||
Related Party Transaction [Line Items] | ||||||
Deferred financing costs | $ 900,000 | |||||
Fortress Investment Group | Term Loan | Affiliated Entity | ||||||
Related Party Transaction [Line Items] | ||||||
Outstanding borrowings | 173,300,000 | 173,700,000 | ||||
Fortress Investment Group | Senior Notes | Affiliated Entity | 2023 Notes | ||||||
Related Party Transaction [Line Items] | ||||||
Outstanding borrowings | 72,500,000 | 72,500,000 | ||||
Fortress Investment Group | Senior Notes | Affiliated Entity | Senior Notes Due 2024 | ||||||
Related Party Transaction [Line Items] | ||||||
Outstanding borrowings | 19,800,000 | 19,900,000 | ||||
Fortress Investment Group | Senior Notes | Affiliated Entity | 6.750% Senior Secured Notes Due 2027 | ||||||
Related Party Transaction [Line Items] | ||||||
Outstanding borrowings | $ 11,700,000 | 11,700,000 | ||||
Vivint Gives Back | ||||||
Related Party Transaction [Line Items] | ||||||
Accrued expenses and other current liabilities | $ 100,000 |
Employee Benefit Plan (Detail)
Employee Benefit Plan (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Postemployment Benefits [Abstract] | ||
Employer matching contribution, percent of employees' gross pay | 3.00% | |
Employer matching contribution, amount for every employees' dollar contributed | $ 0.50 | |
Employer matching contribution, percent of employees' gross pay for 50% matching for every dollar contributed | 2.00% | |
Maximum annual contributions per employee, percent | 4.00% | |
Matching contributions to the plan | $ 2,700,000 | $ 2,000,000 |
Restructuring and Asset Impai_2
Restructuring and Asset Impairment Charges - Additional Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring costs | $ 20.9 |
Employee Severance | |
Restructuring Cost and Reserve [Line Items] | |
Share-based compensation expense | $ 11.1 |
Segment Reporting and Busines_3
Segment Reporting and Business Concentrations (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021USD ($)regionsegment | Mar. 31, 2020USD ($)regionsegment | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Number of operating segments | segment | 1 | 1 |
Number of geographic regions | region | 2 | 2 |
Revenue from external customers | $ 343,293 | $ 303,232 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue from external customers | 327,345 | 285,422 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue from external customers | $ 15,948 | $ 17,810 |
Basic and Diluted Net Loss Pe_3
Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Net loss attributable to common stockholders | $ (87,380) | $ (145,096) |
Gain on change in fair value of warrants, diluted | (29,963) | 0 |
Net loss attributable to common stockholders, diluted | $ (117,343) | $ (145,096) |
Shares used in computing net loss attributable per share to common stockholders, basic and diluted (in shares) | 206,791,625 | 151,010,847 |
Weighted-average effect of potentially dilutive shares to purchase common stock (in shares) | 2,197,455 | 0 |
Shares used in computing net loss attributable per share to common stockholders, diluted (in shares) | 208,989,080 | 151,010,847 |
Net loss attributable per share to common stockholders: | ||
Basic (in dollars per share) | $ (0.42) | $ (0.96) |
Diluted (in dollars per share) | $ (0.56) | $ (0.96) |
Basic and Diluted Net Loss Pe_4
Basic and Diluted Net Loss Per Share - Schedule of Potentially Antidilutive Securities (Details) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Rollover SARs | Rollover Awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive shares excluded from computation of basic and diluted earnings per share (in shares) | 2,452,311 | 3,402,188 |
Rollover LTIPs | Rollover Awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive shares excluded from computation of basic and diluted earnings per share (in shares) | 0 | 4,633,738 |
RSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive shares excluded from computation of basic and diluted earnings per share (in shares) | 9,272,573 | 9,369,305 |
RSUs | Rollover Awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive shares excluded from computation of basic and diluted earnings per share (in shares) | 51,929 | 51,929 |
PSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive shares excluded from computation of basic and diluted earnings per share (in shares) | 4,692,084 | 5,193,238 |
Public warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive shares excluded from computation of basic and diluted earnings per share (in shares) | 0 | 11,500,000 |
Private placement warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive shares excluded from computation of basic and diluted earnings per share (in shares) | 0 | 5,933,334 |
Earnout shares reserved for future issuance | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive shares excluded from computation of basic and diluted earnings per share (in shares) | 26,613 | 14,303,786 |