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Year ended December 31, 2016 | |||
Increase in activation fee revenues | $ | 1,400 | |
Increase in depreciation and amortization | 21,413 | ||
Increase to loss from operations | 20,013 | ||
Increase to net loss | 19,621 |
Year ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Beginning balance | $ | 3,541 | $ | 3,373 | $ | 1,901 | |||||
Provision for doubtful accounts | 19,624 | 14,924 | 15,656 | ||||||||
Write-offs and adjustments | (19,027 | ) | (14,756 | ) | (14,184 | ) | |||||
Balance at end of period | $ | 4,138 | $ | 3,541 | $ | 3,373 |
|
Year ended December 31, | |||||||
2016 | 2015 | ||||||
Wireless restructuring and asset (recoveries) impairment charges: | |||||||
Asset (recoveries) impairments | $ | (710 | ) | $ | 53,228 | ||
Contract termination (recoveries) costs | (751 | ) | 4,767 | ||||
Employee severance and termination benefits (recoveries) charges | (77 | ) | 1,202 | ||||
Total wireless restructuring and asset (recoveries) impairment charges | (1,538 | ) | 59,197 | ||||
Loss on subscriber contract sales | 2,551 | — | |||||
Total restructuring and asset impairment charges | $ | 1,013 | $ | 59,197 |
Asset impairments | Contract termination costs | Employee severance and termination benefits | Total | ||||||||||||
Accrued restructuring balance as of December 31, 2014 | $ | — | $ | — | $ | — | $ | — | |||||||
Restructuring and impairment charges | 53,228 | 4,767 | 1,202 | 59,197 | |||||||||||
Cash payments | (10 | ) | (623 | ) | (881 | ) | (1,514 | ) | |||||||
Non-cash settlements | (53,218 | ) | (190 | ) | — | (53,408 | ) | ||||||||
Accrued restructuring balance as of December 31, 2015 | — | 3,954 | 321 | 4,275 | |||||||||||
Restructuring and impairment recoveries | (710 | ) | (751 | ) | (77 | ) | (1,538 | ) | |||||||
Cash payments | — | (2,554 | ) | (244 | ) | (2,798 | ) | ||||||||
Non-cash settlements | 710 | — | — | 710 | |||||||||||
Accrued restructuring balance as of December 31, 2016 | $ | — | $ | 649 | $ | — | $ | 649 |
|
Net assets acquired from Space Monkey | $ | 404 | |
Deferred tax liability | (1,106 | ) | |
Intangible assets (See Note 8) | 8,300 | ||
Goodwill | 7,402 | ||
Total estimated fair value of the assets acquired and liabilities assumed | $ | 15,000 |
Net assets acquired from Wildfire | $ | 96 | |
Intangible assets (See Note 8) | 2,900 | ||
Goodwill | 504 | ||
Total cash consideration | $ | 3,500 |
|
Unamortized Deferred Financing Costs | |||||||||||||||||||||||
Balance 12/31/2015 | Additions | Refinances | Early Extinguishment | Amortized | Balance 12/31/2016 | ||||||||||||||||||
Revolving Credit Facility | $ | 6,456 | $ | — | $ | — | $ | — | $ | (2,036 | ) | $ | 4,420 | ||||||||||
2019 Notes | 20,182 | — | (3,423 | ) | (585 | ) | (4,481 | ) | 11,693 | ||||||||||||||
2020 Notes | 18,892 | — | — | — | (3,839 | ) | 15,053 | ||||||||||||||||
2022 Private Placement Notes | 1,170 | — | — | (110 | ) | (157 | ) | 903 | |||||||||||||||
2022 Notes | — | 9,337 | 3,423 | — | (1,046 | ) | 11,714 | ||||||||||||||||
Total Deferred Financing Costs | $ | 46,700 | $ | 9,337 | $ | — | $ | (695 | ) | $ | (11,559 | ) | $ | 43,783 |
Outstanding Principal | Unamortized Premium (Discount) | Unamortized Deferred Financing Costs | Net Carrying Amount | ||||||||||||
6.375% Senior Secured Notes due 2019 | $ | 719,465 | $ | — | $ | (11,693 | ) | $ | 707,772 | ||||||
8.75% Senior Notes due 2020 | 930,000 | 5,848 | (15,053 | ) | 920,795 | ||||||||||
8.875% Senior Secured Notes Due 2022 | 270,000 | (2,960 | ) | (903 | ) | 266,137 | |||||||||
7.875% Senior Secured Notes Due 2022 | 600,000 | 3,710 | (11,714 | ) | 591,996 | ||||||||||
Total Notes payable | $ | 2,519,465 | $ | 6,598 | $ | (39,363 | ) | $ | 2,486,700 |
Outstanding Principal | Unamortized Premium | Unamortized Deferred Financing Costs | Net Carrying Amount | ||||||||||||
Series C Revolving Credit Facility Due 2017 | $ | 1,440 | $ | — | $ | — | $ | 1,440 | |||||||
Series A, B Revolving Credit Facilities Due 2019 | 18,560 | — | — | 18,560 | |||||||||||
6.375% Senior Secured Notes due 2019 | 925,000 | — | (20,182 | ) | 904,818 | ||||||||||
8.75% Senior Notes due 2020 | 930,000 | 7,060 | (18,892 | ) | 918,168 | ||||||||||
8.875% Senior Secured Notes due 2022 | 300,000 | (3,704 | ) | (1,170 | ) | 295,126 | |||||||||
Total Notes payable | $ | 2,175,000 | $ | 3,356 | $ | (40,244 | ) | $ | 2,138,112 |
|
December 31, | |||||||
2016 | 2015 | ||||||
Subscriber acquisition costs | |||||||
Subscriber acquisition costs | $ | 1,373,080 | $ | 958,261 | |||
Accumulated amortization | (320,646 | ) | (167,617 | ) | |||
Subscriber acquisition costs, net | $ | 1,052,434 | $ | 790,644 | |||
Accrued payroll and commissions | |||||||
Accrued payroll | $ | 24,101 | $ | 18,071 | |||
Accrued commissions | 22,187 | 20,176 | |||||
Total accrued payroll and commissions | $ | 46,288 | $ | 38,247 | |||
Accrued expenses and other current liabilities | |||||||
Accrued interest payable | $ | 16,944 | $ | 17,153 | |||
Accrued payroll taxes and withholdings | 4,793 | 3,938 | |||||
Accrued taxes | 3,376 | 2,683 | |||||
Wireless restructuring costs | 91 | 4,275 | |||||
Loss contingencies | 2,571 | 2,504 | |||||
Other | 6,490 | 5,020 | |||||
Total accrued expenses and other current liabilities | $ | 34,265 | $ | 35,573 |
|
December 31, | Estimated Useful Lives | ||||||||
2016 | 2015 | ||||||||
Vehicles | $ | 31,416 | $ | 26,935 | 3-5 years | ||||
Computer equipment and software | 27,006 | 21,702 | 3-5 years | ||||||
Leasehold improvements | 17,717 | 17,434 | 2-15 years | ||||||
Office furniture, fixtures and equipment | 13,508 | 11,776 | 7 years | ||||||
Buildings | 702 | 702 | 39 years | ||||||
Construction in process | 9,908 | 3,837 | |||||||
Build-to-suit lease asset under construction | 5,004 | — | |||||||
105,261 | 82,386 | ||||||||
Accumulated depreciation and amortization | (41,635 | ) | (27,112 | ) | |||||
Property plant and equipment, net | $ | 63,626 | $ | 55,274 |
|
Balance as of January 1, 2015 | $ | 841,522 | |
Goodwill Impaired due to Wireless Restructuring (see Note 3) | (2,270 | ) | |
Effect of Foreign Currency Translation | (4,836 | ) | |
Balance as of December 31, 2015 | 834,416 | ||
Effect of Foreign Currency Translation | 817 | ||
Balance as of December 31, 2016 | $ | 835,233 |
December 31, 2016 | December 31, 2015 | ||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Estimated Useful Lives | |||||||||||||||||||
Definite-lived intangible assets: | |||||||||||||||||||||||||
Customer contracts | $ | 965,179 | $ | (539,910 | ) | $ | 425,269 | $ | 962,842 | $ | (430,803 | ) | $ | 532,039 | 10 years | ||||||||||
2GIG 2.0 technology | 17,000 | (10,479 | ) | 6,521 | 17,000 | (7,064 | ) | 9,936 | 8 years | ||||||||||||||||
Other technology | 7,067 | (4,984 | ) | 2,083 | 7,067 | (3,438 | ) | 3,629 | 5 - 7 years | ||||||||||||||||
Space Monkey technology | 7,100 | (2,268 | ) | 4,832 | 7,100 | (761 | ) | 6,339 | 6 years | ||||||||||||||||
Patents | 8,724 | (3,913 | ) | 4,811 | 7,524 | (2,094 | ) | 5,430 | 5 years | ||||||||||||||||
Non-compete agreements | 1,200 | (1,200 | ) | — | 1,200 | (800 | ) | 400 | 2 - 3 years | ||||||||||||||||
Total definite-lived intangible assets: | 1,006,270 | (562,754 | ) | 443,516 | 1,002,733 | (444,960 | ) | 557,773 | |||||||||||||||||
Indefinite-lived intangible assets: | |||||||||||||||||||||||||
Spectrum licenses | 31,253 | — | 31,253 | — | — | — | |||||||||||||||||||
IP addresses | 564 | — | 564 | 564 | — | 564 | |||||||||||||||||||
Domain names | 59 | — | 59 | 58 | — | 58 | |||||||||||||||||||
Total Indefinite-lived intangible assets | 31,876 | — | 31,876 | 622 | — | 622 | |||||||||||||||||||
Total intangible assets, net | $ | 1,038,146 | $ | (562,754 | ) | $ | 475,392 | $ | 1,003,355 | $ | (444,960 | ) | $ | 558,395 |
2017 | $ | 101,296 | |
2018 | 89,736 | ||
2019 | 78,082 | ||
2020 | 67,288 | ||
2021 | 58,288 | ||
Thereafter | 48,548 | ||
Total estimated amortization expense | $ | 443,238 |
|
Adjusted Cost | Unrealized Gains | Unrealized Losses | Fair Value | Cash and Cash Equivalents | Long-Term Investments and Other Assets, net | ||||||||||||||||||
Cash | $ | 1,191 | $ | — | $ | — | $ | 1,191 | $ | 1,191 | $ | — | |||||||||||
Level 1: | |||||||||||||||||||||||
Money market funds | 42,329 | — | — | 42,329 | 42,329 | — | |||||||||||||||||
Corporate securities | 3,007 | 1,011 | — | 4,018 | — | 4,018 | |||||||||||||||||
Subtotal | 45,336 | 1,011 | — | 46,347 | 42,329 | 4,018 | |||||||||||||||||
Total | $ | 46,527 | $ | 1,011 | $ | — | $ | 47,538 | $ | 43,520 | $ | 4,018 |
Issuance | December 31, 2016 | December 31, 2015 | Stated Interest Rate | ||||||||||||||||
Face Value | Estimated Fair Value | Face Value | Estimated Fair Value | ||||||||||||||||
2019 Notes | $ | 719,465 | $ | 743,783 | $ | 925,000 | $ | 879,906 | 6.375 | % | |||||||||
2020 Notes | 930,000 | 946,275 | 930,000 | 756,788 | 8.75 | % | |||||||||||||
2022 Notes Private Placement Notes | 270,000 | 280,372 | 300,000 | 296,296 | 8.875 | % | |||||||||||||
2022 Notes | 600,000 | 655,140 | — | — | 7.875 | % | |||||||||||||
Total | $ | 2,519,465 | $ | 2,625,570 | $ | 2,155,000 | $ | 1,932,990 |
|
|
Year ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Current income tax: | |||||||||||
Federal | $ | — | $ | — | $ | — | |||||
State | 545 | 392 | 779 | ||||||||
Foreign | 95 | (1 | ) | — | |||||||
Total | 640 | 391 | 779 | ||||||||
Deferred income tax: | |||||||||||
Federal | — | — | (925 | ) | |||||||
State | — | — | (181 | ) | |||||||
Foreign | (573 | ) | (40 | ) | 841 | ||||||
Total | (573 | ) | (40 | ) | (265 | ) | |||||
Provision for income taxes | $ | 67 | $ | 351 | $ | 514 |
Year ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Computed expected tax expense | $ | (93,770 | ) | $ | (94,737 | ) | $ | (81,107 | ) | ||
State income taxes, net of federal tax effect | 360 | 259 | 395 | ||||||||
Foreign income taxes | (949 | ) | 202 | 1,645 | |||||||
Other reconciling items | 666 | — | — | ||||||||
Permanent differences | 1,688 | 1,980 | 2,261 | ||||||||
Change in valuation allowance | 92,072 | 92,647 | 77,320 | ||||||||
Provision for income taxes | $ | 67 | $ | 351 | $ | 514 |
December 31, | |||||||
2016 | 2015 | ||||||
Gross deferred tax assets: | |||||||
Net operating loss carryforwards | $ | 799,302 | $ | 642,391 | |||
Deferred subscriber income | 19,866 | 13,722 | |||||
Accrued expenses and allowances | 15,452 | 15,415 | |||||
Purchased intangibles | 14,776 | 10,576 | |||||
Inventory reserves | 6,999 | 9,333 | |||||
Property and Equipment | 3,482 | 3,257 | |||||
Alternative minimum tax credit and research and development credit | 41 | 41 | |||||
Valuation allowance | (328,991 | ) | (234,771 | ) | |||
530,927 | 459,964 | ||||||
Gross deferred tax liabilities: | |||||||
Deferred subscriber acquisition costs | (537,387 | ) | (466,783 | ) | |||
Property and equipment | — | — | |||||
Prepaid expenses | (744 | ) | (705 | ) | |||
(538,131 | ) | (467,488 | ) | ||||
Net deferred tax liabilities | $ | (7,204 | ) | $ | (7,524 | ) |
December 31, | |||||||
2016 | 2015 | ||||||
Net operating loss carryforwards: | |||||||
United States | $ | 2,084,897 | $ | 1,695,386 | |||
State | 1,553,812 | 1,338,742 | |||||
Canada | 33,526 | 28,629 | |||||
New Zealand | — | 5,518 |
|
Incentive Units | Weighted Average Exercise Price Per Share | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | |||||||||
Outstanding, December 31, 2014 | 74,527,942 | $ | 1.03 | 8.19 | $ | 20,145,882 | ||||||
Granted | 3,850,000 | 2.40 | ||||||||||
Forfeited | (4,415,106 | ) | 1.03 | |||||||||
Exercised | — | — | ||||||||||
Outstanding, December 31, 2015 | 73,962,836 | 1.06 | 7.31 | 104,562,869 | ||||||||
Granted | 12,825,000 | 1.93 | ||||||||||
Forfeited | (905,000 | ) | 1.09 | |||||||||
Exercised | — | — | ||||||||||
Outstanding, December 31, 2016 | 85,882,836 | 1.19 | 6.81 | — | ||||||||
Unvested shares expected to vest after December 31, 2016 | 66,186,360 | 1.23 | 6.99 | — | ||||||||
Exercisable at December 31, 2016 | 19,696,476 | $ | 1.03 | 6.21 | $ | — |
Stock Appreciation Rights | Weighted Average Exercise Price Per Share | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | |||||||||
Outstanding, December 31, 2014 | 6,696,660 | $ | 1.04 | 8.62 | $ | 1,734,748 | ||||||
Converted | 3,259,934 | 0.70 | 8.62 | |||||||||
Granted | 11,186,936 | 1.03 | ||||||||||
Forfeited | (2,307,172 | ) | 0.80 | |||||||||
Exercised | (172,221 | ) | 0.68 | |||||||||
Outstanding, December 31, 2015 | 18,664,137 | 0.87 | 8.66 | 3,628,498 | ||||||||
Granted | 5,649,573 | 1.22 | ||||||||||
Forfeited | (2,320,552 | ) | 0.92 | |||||||||
Exercised | — | — | ||||||||||
Outstanding, December 31, 2016 | 21,993,158 | 0.96 | 8.23 | — | ||||||||
Unvested shares expected to vest after December 31, 2016 | 19,334,407 | 0.98 | 8.37 | — | ||||||||
Exercisable at December 31, 2016 | 2,658,751 | $ | 0.78 | 7.20 | $ | — |
Stock Appreciation Rights | Weighted Average Exercise Price Per Share | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | ||||||||
Outstanding, December 31, 2014 | 70,000 | $ | 5.00 | 8.41 | — | ||||||
Granted | 11,000 | 65.84 | |||||||||
Forfeited | — | — | |||||||||
Exercised | — | — | |||||||||
Outstanding, December 31, 2015 | 81,000 | 13.26 | 7.66 | — | |||||||
Granted | — | — | |||||||||
Forfeited | (63,500 | ) | 15.54 | ||||||||
Exercised | — | — | |||||||||
Outstanding, December 31, 2016 | 17,500 | 5.00 | 6.41 | — | |||||||
Unvested shares expected to vest after December 31, 2016 | 7,000 | 5.00 | 6.41 | — | |||||||
Exercisable, December 31, 2016 | 10,500 | $ | 5.00 | 6.41 | — |
Year ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Operating expenses | $ | 68 | $ | 71 | $ | 63 | |||||
Selling expenses | (127 | ) | 578 | 185 | |||||||
General and administrative expenses | 3,927 | 2,472 | 1,688 | ||||||||
Total stock-based compensation | $ | 3,868 | $ | 3,121 | $ | 1,936 |
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Rent Expense | |||||||||
Years ended December 31, | |||||||||
2016 | 2015 | Lease Term | |||||||
Warehouse, office space and other | $ | 11,222 | $ | 11,632 | 1 - 15 years | ||||
Wireless towers, spectrum and other | 4,732 | 3,509 | 1 - 10 years | ||||||
Total Rent Expense | $ | 15,954 | $ | 15,141 |
Operating | Capital | Total | |||||||||
2017 | $ | 17,452 | $ | 10,513 | $ | 27,965 | |||||
2018 | 15,322 | 6,117 | 21,439 | ||||||||
2019 | 14,998 | 2,049 | 17,047 | ||||||||
2020 | 13,521 | 17 | 13,538 | ||||||||
2021 | 13,086 | — | 13,086 | ||||||||
Thereafter | 47,634 | — | 47,634 | ||||||||
Amounts representing interest | — | (963 | ) | (963 | ) | ||||||
Total lease payments | $ | 122,013 | $ | 17,733 | $ | 139,746 |
|
• | A Master Intercompany Framework Agreement which establishes a framework for the ongoing relationship between the Company and Solar and contains master terms regarding the protection of each other’s confidential information, and master procedural terms, such as notice procedures, restrictions on assignment, interpretive provisions, governing law and dispute resolution; |
• | A Non-Competition Agreement in which the Company and Solar each define their current areas of business and their competitors, and agree not to directly or indirectly engage in the other’s business for three years; |
• | A Transition Services Agreement pursuant to which the Company will provide to Solar various enterprise services, including services relating to information technology and infrastructure, human resources and employee benefits, administration services and facilities-related services; |
• | A Product Development and Supply Agreement pursuant to which one of Solar’s wholly owned subsidiaries will, for an initial term of three years, subject to automatic renewal for successive one-year periods unless either party elects otherwise, collaborate with the Company to develop certain monitoring and communications equipment that will be compatible with other equipment used in Solar’s energy systems and will replace equipment Solar currently procures from third parties; |
• | A Marketing and Customer Relations Agreement which governs various cross-marketing initiatives between the Company and Solar, in particularly the provision of sales leads from each company to the other; and |
• | A Trademark License Agreement pursuant to which the licensor, a special purpose subsidiary majority-owned by the Company and minority-owned by Solar, will grant Solar a royalty-free exclusive license to the trademark “VIVINT SOLAR” in the field of selling renewable energy or energy storage products and services. |
|
United States | Canada | Total | |||||||||
As of and for the | |||||||||||
Year ended December 31, 2016 | |||||||||||
Revenue from external customers | $ | 700,471 | $ | 57,436 | $ | 757,907 | |||||
Property and equipment, net | 62,781 | 845 | 63,626 | ||||||||
Year ended December 31, 2015 | |||||||||||
Revenue from external customers | $ | 602,418 | $ | 51,303 | $ | 653,721 | |||||
Property and equipment, net | 55,103 | 171 | 55,274 | ||||||||
Year ended December 31, 2014 | |||||||||||
Revenue from external customers | $ | 529,521 | $ | 34,156 | $ | 563,677 | |||||
Property and equipment, net | 62,368 | 422 | 62,790 |
|
|
Parent | APX Group, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
Assets | |||||||||||||||||||||||
Current assets | $ | — | $ | 25,136 | $ | 143,954 | $ | 3,730 | $ | (67,799 | ) | $ | 105,021 | ||||||||||
Property and equipment, net | — | — | 62,781 | 845 | — | 63,626 | |||||||||||||||||
Subscriber acquisition costs, net | — | — | 974,975 | 77,459 | — | 1,052,434 | |||||||||||||||||
Deferred financing costs, net | — | 4,420 | — | — | — | 4,420 | |||||||||||||||||
Investment in subsidiaries | — | 2,228,903 | — | — | (2,228,903 | ) | — | ||||||||||||||||
Intercompany receivable | — | — | 9,492 | — | (9,492 | ) | — | ||||||||||||||||
Intangible assets, net | — | — | 443,189 | 32,203 | — | 475,392 | |||||||||||||||||
Goodwill | — | — | 809,678 | 25,555 | — | 835,233 | |||||||||||||||||
Long-term investments and other assets | — | 106 | 11,523 | 13 | (106 | ) | 11,536 | ||||||||||||||||
Total Assets | $ | — | $ | 2,258,565 | $ | 2,455,592 | $ | 139,805 | $ | (2,306,300 | ) | $ | 2,547,662 | ||||||||||
Liabilities and Stockholders’ (Deficit) Equity | |||||||||||||||||||||||
Current liabilities | $ | — | $ | 17,047 | $ | 160,956 | $ | 74,987 | $ | (67,799 | ) | $ | 185,191 | ||||||||||
Intercompany payable | — | — | — | 9,492 | (9,492 | ) | — | ||||||||||||||||
Notes payable and revolving line of credit, net of current portion | — | 2,486,700 | — | — | — | 2,486,700 | |||||||||||||||||
Capital lease obligations, net of current portion | — | — | 7,368 | 567 | — | 7,935 | |||||||||||||||||
Deferred revenue, net of current portion | — | — | 53,991 | 4,743 | — | 58,734 | |||||||||||||||||
Accumulated losses of investee | 245,182 | (245,182 | ) | — | |||||||||||||||||||
Other long-term obligations | — | — | 47,080 | — | — | 47,080 | |||||||||||||||||
Deferred income tax liability | — | — | 106 | 7,204 | (106 | ) | 7,204 | ||||||||||||||||
Total (deficit) equity | (245,182 | ) | (245,182 | ) | 2,186,091 | 42,812 | (1,983,721 | ) | (245,182 | ) | |||||||||||||
Total liabilities and stockholders’ (deficit) equity | $ | — | $ | 2,258,565 | $ | 2,455,592 | $ | 139,805 | $ | (2,306,300 | ) | $ | 2,547,662 |
Parent | APX Group, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
Assets | |||||||||||||||||||||||
Current assets | $ | — | $ | 2,537 | $ | 91,555 | $ | 6,540 | $ | (53,066 | ) | $ | 47,566 | ||||||||||
Property and equipment, net | — | — | 55,012 | 262 | — | 55,274 | |||||||||||||||||
Subscriber acquisition costs, net | — | — | 728,547 | 62,097 | — | 790,644 | |||||||||||||||||
Deferred financing costs, net | — | 6,456 | — | — | — | 6,456 | |||||||||||||||||
Investment in subsidiaries | — | 2,070,404 | — | — | (2,070,404 | ) | — | ||||||||||||||||
Intercompany receivable | — | — | 22,398 | — | (22,398 | ) | — | ||||||||||||||||
Intangible assets, net | — | — | 519,301 | 39,094 | — | 558,395 | |||||||||||||||||
Goodwill | — | — | 809,678 | 24,738 | — | 834,416 | |||||||||||||||||
Long-term investments and other assets | — | 106 | 10,880 | 13 | (106 | ) | 10,893 | ||||||||||||||||
Total Assets | $ | — | $ | 2,079,503 | $ | 2,237,371 | $ | 132,744 | $ | (2,145,974 | ) | $ | 2,303,644 | ||||||||||
Liabilities and Stockholders’ (Deficit) Equity | |||||||||||||||||||||||
Current liabilities | $ | — | $ | 18,384 | $ | 143,896 | $ | 59,304 | $ | (53,066 | ) | $ | 168,518 | ||||||||||
Intercompany payable | — | — | — | 22,398 | (22,398 | ) | — | ||||||||||||||||
Notes payable and revolving line of credit, net of current portion | — | 2,138,112 | — | — | — | 2,138,112 | |||||||||||||||||
Capital lease obligations, net of current portion | — | — | 11,169 | 2 | — | 11,171 | |||||||||||||||||
Deferred revenue, net of current portion | — | — | 40,960 | 3,822 | — | 44,782 | |||||||||||||||||
Accumulated losses of investee | 76,993 | — | — | — | (76,993 | ) | — | ||||||||||||||||
Other long-term obligations | — | — | 10,530 | — | — | 10,530 | |||||||||||||||||
Deferred income tax liability | — | — | 106 | 7,524 | (106 | ) | 7,524 | ||||||||||||||||
Total (deficit) equity | (76,993 | ) | (76,993 | ) | 2,030,710 | 39,694 | (1,993,411 | ) | (76,993 | ) | |||||||||||||
Total liabilities and stockholders’ (deficit) equity | $ | — | $ | 2,079,503 | $ | 2,237,371 | $ | 132,744 | $ | (2,145,974 | ) | $ | 2,303,644 |
Parent | APX Group, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
Revenues | $ | — | $ | — | $ | 715,072 | $ | 45,539 | $ | (2,704 | ) | $ | 757,907 | ||||||||||
Costs and expenses | — | — | 787,138 | 44,575 | (2,704 | ) | 829,009 | ||||||||||||||||
(Loss) income from operations | — | — | (72,066 | ) | 964 | — | (71,102 | ) | |||||||||||||||
Loss from subsidiaries | (275,957 | ) | (69,637 | ) | — | — | 345,594 | — | |||||||||||||||
Other expense (income), net | — | 206,320 | (1,207 | ) | (325 | ) | — | 204,788 | |||||||||||||||
(Loss) income before income tax expenses | (275,957 | ) | (275,957 | ) | (70,859 | ) | 1,289 | 345,594 | (275,890 | ) | |||||||||||||
Income tax expense (benefit) | — | — | 545 | (478 | ) | — | 67 | ||||||||||||||||
Net (loss) income | $ | (275,957 | ) | $ | (275,957 | ) | $ | (71,404 | ) | $ | 1,767 | $ | 345,594 | $ | (275,957 | ) | |||||||
Other comprehensive (loss) income, net of tax effects: | |||||||||||||||||||||||
Foreign currency translation adjustment | — | 2,482 | — | 2,482 | (2,482 | ) | 2,482 | ||||||||||||||||
Unrealized gain on marketable securities | — | 1,011 | 1,011 | — | (1,011 | ) | 1,011 | ||||||||||||||||
Comprehensive (loss) income | $ | (275,957 | ) | $ | (272,464 | ) | $ | (70,393 | ) | $ | 4,249 | $ | 342,101 | $ | (272,464 | ) |
Parent | APX Group, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
Revenues | $ | — | $ | — | $ | 622,507 | $ | 34,022 | $ | (2,808 | ) | $ | 653,721 | ||||||||||
Costs and expenses | — | — | 730,322 | 34,882 | (2,808 | ) | 762,396 | ||||||||||||||||
Loss from operations | — | — | (107,815 | ) | (860 | ) | — | (108,675 | ) | ||||||||||||||
Loss from subsidiaries | (279,107 | ) | (118,885 | ) | — | — | 397,992 | — | |||||||||||||||
Other expense, net | — | 160,222 | 9,763 | 96 | — | 170,081 | |||||||||||||||||
Loss before income tax expenses | (279,107 | ) | (279,107 | ) | (117,578 | ) | (956 | ) | 397,992 | (278,756 | ) | ||||||||||||
Income tax expense (benefit) | — | — | 392 | (41 | ) | — | 351 | ||||||||||||||||
Net loss | $ | (279,107 | ) | $ | (279,107 | ) | $ | (117,970 | ) | $ | (915 | ) | $ | 397,992 | $ | (279,107 | ) | ||||||
Other comprehensive (loss) income, net of tax effects: | |||||||||||||||||||||||
Foreign currency translation adjustment | — | (13,293 | ) | 2 | (13,294 | ) | 13,292 | (13,293 | ) | ||||||||||||||
Comprehensive loss | $ | (279,107 | ) | $ | (292,400 | ) | $ | (117,968 | ) | $ | (14,209 | ) | $ | 411,284 | $ | (292,400 | ) |
Parent | APX Group, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
Revenues | $ | — | $ | — | $ | 530,888 | $ | 35,911 | $ | (3,122 | ) | $ | 563,677 | ||||||||||
Costs and expenses | — | — | 623,124 | 37,544 | (3,122 | ) | 657,546 | ||||||||||||||||
(Loss) income from operations | — | — | (92,236 | ) | (1,633 | ) | — | (93,869 | ) | ||||||||||||||
(Loss) income from subsidiaries | (238,660 | ) | (93,850 | ) | — | — | 332,510 | — | |||||||||||||||
Other expense (income), net | — | 145,917 | (1,676 | ) | 36 | — | 144,277 | ||||||||||||||||
Loss from operations before income tax expense | (238,660 | ) | (239,767 | ) | (90,560 | ) | (1,669 | ) | 332,510 | (238,146 | ) | ||||||||||||
Income tax (benefit) expense | — | (1,107 | ) | 779 | 842 | — | 514 | ||||||||||||||||
Net loss | $ | (238,660 | ) | $ | (238,660 | ) | $ | (91,339 | ) | $ | (2,511 | ) | $ | 332,510 | $ | (238,660 | ) | ||||||
Other comprehensive loss, net of tax effects: | |||||||||||||||||||||||
Foreign currency translation adjustment | — | (11,333 | ) | (6,895 | ) | (4,438 | ) | 11,333 | (11,333 | ) | |||||||||||||
Comprehensive loss | $ | (238,660 | ) | $ | (249,993 | ) | $ | (98,234 | ) | $ | (6,949 | ) | $ | 343,843 | $ | (249,993 | ) |
Parent | APX Group, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | — | $ | — | $ | (380,508 | ) | $ | 14,802 | $ | — | $ | (365,706 | ) | |||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Subscriber acquisition costs – company owned equipment | — | — | (5,243 | ) | — | — | (5,243 | ) | |||||||||||||||
Capital expenditures | — | — | (11,642 | ) | — | — | (11,642 | ) | |||||||||||||||
Proceeds from sale of capital assets | — | — | 3,080 | 43 | — | 3,123 | |||||||||||||||||
Investment in subsidiary | (100,407 | ) | (408,214 | ) | — | — | 508,621 | — | |||||||||||||||
Acquisition of intangible assets | — | — | (1,385 | ) | — | — | (1,385 | ) | |||||||||||||||
Net cash (used in) provided by investing activities | (100,407 | ) | (408,214 | ) | (15,190 | ) | 43 | 508,621 | (15,147 | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Proceeds from notes payable | — | 604,000 | — | — | — | 604,000 | |||||||||||||||||
Repayment on notes payable | — | (235,535 | ) | — | — | — | (235,535 | ) | |||||||||||||||
Borrowings from revolving line of credit | — | 57,000 | — | — | — | 57,000 | |||||||||||||||||
Repayment of revolving line of credit | — | (77,000 | ) | — | — | — | $ | (77,000 | ) | ||||||||||||||
Proceeds from capital contribution | 100,407 | 100,407 | — | — | (100,407 | ) | 100,407 | ||||||||||||||||
Payment of intercompany settlement | — | — | 3,000 | (3,000 | ) | — | — | ||||||||||||||||
Intercompany receivable | — | — | 12,906 | — | (12,906 | ) | — | ||||||||||||||||
Intercompany payable | — | — | 408,214 | (12,906 | ) | (395,308 | ) | — | |||||||||||||||
Repayments of capital lease obligations | — | — | (8,295 | ) | (20 | ) | — | (8,315 | ) | ||||||||||||||
Financing costs | — | (9,036 | ) | — | — | — | (9,036 | ) | |||||||||||||||
Deferred financing costs | — | (9,241 | ) | — | — | — | (9,241 | ) | |||||||||||||||
Net cash provided by (used in) provided by financing activities | 100,407 | 430,595 | 415,825 | (15,926 | ) | (508,621 | ) | 422,280 | |||||||||||||||
Effect of exchange rate changes on cash | — | — | — | (466 | ) | — | (466 | ) | |||||||||||||||
Net increase (decrease) in cash | — | 22,381 | 20,127 | (1,547 | ) | — | 40,961 | ||||||||||||||||
Cash: | |||||||||||||||||||||||
Beginning of period | — | 2,299 | (1,941 | ) | 2,201 | — | 2,559 | ||||||||||||||||
End of period | $ | — | $ | 24,680 | $ | 18,186 | $ | 654 | $ | — | $ | 43,520 |
Parent | APX Group, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | — | $ | (1,052 | ) | $ | (267,327 | ) | $ | 13,072 | $ | — | $ | (255,307 | ) | ||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Subscriber acquisition costs – company owned equipment | — | — | (23,641 | ) | (1,099 | ) | — | (24,740 | ) | ||||||||||||||
Capital expenditures | — | — | (26,941 | ) | (41 | ) | — | (26,982 | ) | ||||||||||||||
Proceeds from sale of capital assets | — | — | 480 | — | — | 480 | |||||||||||||||||
Investment in subsidiary | — | (296,895 | ) | — | — | 296,895 | — | ||||||||||||||||
Acquisition of intangible assets | — | — | (1,363 | ) | — | — | (1,363 | ) | |||||||||||||||
Proceeds from insurance claims | — | — | 2,984 | — | — | 2,984 | |||||||||||||||||
Change in restricted cash | — | — | 14,214 | — | — | 14,214 | |||||||||||||||||
Investment in convertible note | — | — | — | — | — | — | |||||||||||||||||
Other assets | — | — | (208 | ) | — | — | (208 | ) | |||||||||||||||
Net cash used in investing activities | — | (296,895 | ) | (34,475 | ) | (1,140 | ) | 296,895 | (35,615 | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Proceeds from notes payable | — | 296,250 | — | — | — | 296,250 | |||||||||||||||||
Borrowings from revolving line of credit | — | 271,000 | — | — | — | 271,000 | |||||||||||||||||
Repayment of revolving line of credit | — | (271,000 | ) | — | — | — | $ | (271,000 | ) | ||||||||||||||
Intercompany receivable | — | 11,601 | — | (11,601 | ) | — | |||||||||||||||||
Intercompany payable | — | — | 296,895 | (11,601 | ) | (285,294 | ) | — | |||||||||||||||
Repayments of capital lease obligations | — | — | (6,402 | ) | (12 | ) | — | (6,414 | ) | ||||||||||||||
Deferred financing costs | — | (5,436 | ) | — | — | — | (5,436 | ) | |||||||||||||||
Net cash provided by (used in) provided by financing activities | — | 290,814 | 302,094 | (11,613 | ) | (296,895 | ) | 284,400 | |||||||||||||||
Effect of exchange rate changes on cash | — | — | — | (1,726 | ) | — | (1,726 | ) | |||||||||||||||
Net increase (decrease) in cash | — | (7,133 | ) | 292 | (1,407 | ) | — | (8,248 | ) | ||||||||||||||
Cash: | |||||||||||||||||||||||
Beginning of period | — | 9,432 | (2,233 | ) | 3,608 | — | 10,807 | ||||||||||||||||
End of period | $ | — | $ | 2,299 | $ | (1,941 | ) | $ | 2,201 | $ | — | $ | 2,559 |
Parent | APX Group, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 50,000 | $ | (894 | ) | $ | (318,734 | ) | $ | 9,991 | $ | (50,000 | ) | $ | (309,637 | ) | |||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Subscriber acquisition costs – company owned equipment | — | — | (10,580 | ) | — | — | (10,580 | ) | |||||||||||||||
Capital expenditures | — | — | (30,315 | ) | (185 | ) | — | (30,500 | ) | ||||||||||||||
Proceeds from sale of capital assets | — | — | 964 | — | — | 964 | |||||||||||||||||
Investment in subsidiary | (32,300 | ) | (340,024 | ) | — | — | 372,324 | — | |||||||||||||||
Acquisition of intangible assets | — | — | (9,649 | ) | — | — | (9,649 | ) | |||||||||||||||
Net cash used in acquisitions | — | — | (18,500 | ) | — | — | (18,500 | ) | |||||||||||||||
Investment in marketable securities | — | (60,000 | ) | — | — | — | (60,000 | ) | |||||||||||||||
Proceeds from marketable securities | — | 60,069 | — | — | — | 60,069 | |||||||||||||||||
Proceeds from note receivable | — | — | 22,699 | — | — | 22,699 | |||||||||||||||||
Change in restricted cash | — | — | 14,375 | — | — | 14,375 | |||||||||||||||||
Investment in convertible note | — | — | (3,000 | ) | — | — | (3,000 | ) | |||||||||||||||
Other assets | — | — | (2,153 | ) | (9 | ) | — | (2,162 | ) | ||||||||||||||
Net cash used in investing activities | (32,300 | ) | (339,955 | ) | (36,159 | ) | (194 | ) | 372,324 | (36,284 | ) | ||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Proceeds from notes payable | — | 102,000 | — | — | — | 102,000 | |||||||||||||||||
Borrowings from revolving line of credit | — | 20,000 | — | — | — | 20,000 | |||||||||||||||||
Proceeds from capital contribution | 32,300 | 32,300 | — | — | (32,300 | ) | 32,300 | ||||||||||||||||
Intercompany receivable | — | — | 10,658 | — | (10,658 | ) | — | ||||||||||||||||
Intercompany payable | — | — | 340,024 | (10,658 | ) | (329,366 | ) | — | |||||||||||||||
Proceeds from contract sales | — | — | 2,261 | — | — | 2,261 | |||||||||||||||||
Acquisition of contracts | — | — | (2,277 | ) | — | — | (2,277 | ) | |||||||||||||||
Repayments of capital lease obligations | — | — | (6,297 | ) | (3 | ) | — | (6,300 | ) | ||||||||||||||
Deferred financing costs | — | (2,927 | ) | — | — | — | (2,927 | ) | |||||||||||||||
Payment of dividends | (50,000 | ) | (50,000 | ) | — | — | 50,000 | (50,000 | ) | ||||||||||||||
Net cash (used in) provided by financing activities | (17,700 | ) | 101,373 | 344,369 | (10,661 | ) | (322,324 | ) | 95,057 | ||||||||||||||
Effect of exchange rate changes on cash | — | — | — | (234 | ) | — | (234 | ) | |||||||||||||||
Net increase (decrease) in cash | — | (239,476 | ) | (10,524 | ) | (1,098 | ) | — | (251,098 | ) | |||||||||||||
Cash: | |||||||||||||||||||||||
Beginning of period | — | 248,908 | 8,291 | 4,706 | — | 261,905 | |||||||||||||||||
End of period | $ | — | $ | 9,432 | $ | (2,233 | ) | $ | 3,608 | $ | — | $ | 10,807 |
|
|
|
Year ended December 31, 2016 | |||
Increase in activation fee revenues | $ | 1,400 | |
Increase in depreciation and amortization | 21,413 | ||
Increase to loss from operations | 20,013 | ||
Increase to net loss | 19,621 |
Year ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Beginning balance | $ | 3,541 | $ | 3,373 | $ | 1,901 | |||||
Provision for doubtful accounts | 19,624 | 14,924 | 15,656 | ||||||||
Write-offs and adjustments | (19,027 | ) | (14,756 | ) | (14,184 | ) | |||||
Balance at end of period | $ | 4,138 | $ | 3,541 | $ | 3,373 |
|
Year ended December 31, | |||||||
2016 | 2015 | ||||||
Wireless restructuring and asset (recoveries) impairment charges: | |||||||
Asset (recoveries) impairments | $ | (710 | ) | $ | 53,228 | ||
Contract termination (recoveries) costs | (751 | ) | 4,767 | ||||
Employee severance and termination benefits (recoveries) charges | (77 | ) | 1,202 | ||||
Total wireless restructuring and asset (recoveries) impairment charges | (1,538 | ) | 59,197 | ||||
Loss on subscriber contract sales | 2,551 | — | |||||
Total restructuring and asset impairment charges | $ | 1,013 | $ | 59,197 |
Asset impairments | Contract termination costs | Employee severance and termination benefits | Total | ||||||||||||
Accrued restructuring balance as of December 31, 2014 | $ | — | $ | — | $ | — | $ | — | |||||||
Restructuring and impairment charges | 53,228 | 4,767 | 1,202 | 59,197 | |||||||||||
Cash payments | (10 | ) | (623 | ) | (881 | ) | (1,514 | ) | |||||||
Non-cash settlements | (53,218 | ) | (190 | ) | — | (53,408 | ) | ||||||||
Accrued restructuring balance as of December 31, 2015 | — | 3,954 | 321 | 4,275 | |||||||||||
Restructuring and impairment recoveries | (710 | ) | (751 | ) | (77 | ) | (1,538 | ) | |||||||
Cash payments | — | (2,554 | ) | (244 | ) | (2,798 | ) | ||||||||
Non-cash settlements | 710 | — | — | 710 | |||||||||||
Accrued restructuring balance as of December 31, 2016 | $ | — | $ | 649 | $ | — | $ | 649 |
|
Net assets acquired from Space Monkey | $ | 404 | |
Deferred tax liability | (1,106 | ) | |
Intangible assets (See Note 8) | 8,300 | ||
Goodwill | 7,402 | ||
Total estimated fair value of the assets acquired and liabilities assumed | $ | 15,000 |
Net assets acquired from Wildfire | $ | 96 | |
Intangible assets (See Note 8) | 2,900 | ||
Goodwill | 504 | ||
Total cash consideration | $ | 3,500 |
|
Unamortized Deferred Financing Costs | |||||||||||||||||||||||
Balance 12/31/2015 | Additions | Refinances | Early Extinguishment | Amortized | Balance 12/31/2016 | ||||||||||||||||||
Revolving Credit Facility | $ | 6,456 | $ | — | $ | — | $ | — | $ | (2,036 | ) | $ | 4,420 | ||||||||||
2019 Notes | 20,182 | — | (3,423 | ) | (585 | ) | (4,481 | ) | 11,693 | ||||||||||||||
2020 Notes | 18,892 | — | — | — | (3,839 | ) | 15,053 | ||||||||||||||||
2022 Private Placement Notes | 1,170 | — | — | (110 | ) | (157 | ) | 903 | |||||||||||||||
2022 Notes | — | 9,337 | 3,423 | — | (1,046 | ) | 11,714 | ||||||||||||||||
Total Deferred Financing Costs | $ | 46,700 | $ | 9,337 | $ | — | $ | (695 | ) | $ | (11,559 | ) | $ | 43,783 |
Outstanding Principal | Unamortized Premium (Discount) | Unamortized Deferred Financing Costs | Net Carrying Amount | ||||||||||||
6.375% Senior Secured Notes due 2019 | $ | 719,465 | $ | — | $ | (11,693 | ) | $ | 707,772 | ||||||
8.75% Senior Notes due 2020 | 930,000 | 5,848 | (15,053 | ) | 920,795 | ||||||||||
8.875% Senior Secured Notes Due 2022 | 270,000 | (2,960 | ) | (903 | ) | 266,137 | |||||||||
7.875% Senior Secured Notes Due 2022 | 600,000 | 3,710 | (11,714 | ) | 591,996 | ||||||||||
Total Notes payable | $ | 2,519,465 | $ | 6,598 | $ | (39,363 | ) | $ | 2,486,700 |
Outstanding Principal | Unamortized Premium | Unamortized Deferred Financing Costs | Net Carrying Amount | ||||||||||||
Series C Revolving Credit Facility Due 2017 | $ | 1,440 | $ | — | $ | — | $ | 1,440 | |||||||
Series A, B Revolving Credit Facilities Due 2019 | 18,560 | — | — | 18,560 | |||||||||||
6.375% Senior Secured Notes due 2019 | 925,000 | — | (20,182 | ) | 904,818 | ||||||||||
8.75% Senior Notes due 2020 | 930,000 | 7,060 | (18,892 | ) | 918,168 | ||||||||||
8.875% Senior Secured Notes due 2022 | 300,000 | (3,704 | ) | (1,170 | ) | 295,126 | |||||||||
Total Notes payable | $ | 2,175,000 | $ | 3,356 | $ | (40,244 | ) | $ | 2,138,112 |
|
December 31, | |||||||
2016 | 2015 | ||||||
Subscriber acquisition costs | |||||||
Subscriber acquisition costs | $ | 1,373,080 | $ | 958,261 | |||
Accumulated amortization | (320,646 | ) | (167,617 | ) | |||
Subscriber acquisition costs, net | $ | 1,052,434 | $ | 790,644 | |||
Accrued payroll and commissions | |||||||
Accrued payroll | $ | 24,101 | $ | 18,071 | |||
Accrued commissions | 22,187 | 20,176 | |||||
Total accrued payroll and commissions | $ | 46,288 | $ | 38,247 | |||
Accrued expenses and other current liabilities | |||||||
Accrued interest payable | $ | 16,944 | $ | 17,153 | |||
Accrued payroll taxes and withholdings | 4,793 | 3,938 | |||||
Accrued taxes | 3,376 | 2,683 | |||||
Wireless restructuring costs | 91 | 4,275 | |||||
Loss contingencies | 2,571 | 2,504 | |||||
Other | 6,490 | 5,020 | |||||
Total accrued expenses and other current liabilities | $ | 34,265 | $ | 35,573 |
|
December 31, | Estimated Useful Lives | ||||||||
2016 | 2015 | ||||||||
Vehicles | $ | 31,416 | $ | 26,935 | 3-5 years | ||||
Computer equipment and software | 27,006 | 21,702 | 3-5 years | ||||||
Leasehold improvements | 17,717 | 17,434 | 2-15 years | ||||||
Office furniture, fixtures and equipment | 13,508 | 11,776 | 7 years | ||||||
Buildings | 702 | 702 | 39 years | ||||||
Construction in process | 9,908 | 3,837 | |||||||
Build-to-suit lease asset under construction | 5,004 | — | |||||||
105,261 | 82,386 | ||||||||
Accumulated depreciation and amortization | (41,635 | ) | (27,112 | ) | |||||
Property plant and equipment, net | $ | 63,626 | $ | 55,274 |
|
Balance as of January 1, 2015 | $ | 841,522 | |
Goodwill Impaired due to Wireless Restructuring (see Note 3) | (2,270 | ) | |
Effect of Foreign Currency Translation | (4,836 | ) | |
Balance as of December 31, 2015 | 834,416 | ||
Effect of Foreign Currency Translation | 817 | ||
Balance as of December 31, 2016 | $ | 835,233 |
December 31, 2016 | December 31, 2015 | ||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Estimated Useful Lives | |||||||||||||||||||
Definite-lived intangible assets: | |||||||||||||||||||||||||
Customer contracts | $ | 965,179 | $ | (539,910 | ) | $ | 425,269 | $ | 962,842 | $ | (430,803 | ) | $ | 532,039 | 10 years | ||||||||||
2GIG 2.0 technology | 17,000 | (10,479 | ) | 6,521 | 17,000 | (7,064 | ) | 9,936 | 8 years | ||||||||||||||||
Other technology | 7,067 | (4,984 | ) | 2,083 | 7,067 | (3,438 | ) | 3,629 | 5 - 7 years | ||||||||||||||||
Space Monkey technology | 7,100 | (2,268 | ) | 4,832 | 7,100 | (761 | ) | 6,339 | 6 years | ||||||||||||||||
Patents | 8,724 | (3,913 | ) | 4,811 | 7,524 | (2,094 | ) | 5,430 | 5 years | ||||||||||||||||
Non-compete agreements | 1,200 | (1,200 | ) | — | 1,200 | (800 | ) | 400 | 2 - 3 years | ||||||||||||||||
Total definite-lived intangible assets: | 1,006,270 | (562,754 | ) | 443,516 | 1,002,733 | (444,960 | ) | 557,773 | |||||||||||||||||
Indefinite-lived intangible assets: | |||||||||||||||||||||||||
Spectrum licenses | 31,253 | — | 31,253 | — | — | — | |||||||||||||||||||
IP addresses | 564 | — | 564 | 564 | — | 564 | |||||||||||||||||||
Domain names | 59 | — | 59 | 58 | — | 58 | |||||||||||||||||||
Total Indefinite-lived intangible assets | 31,876 | — | 31,876 | 622 | — | 622 | |||||||||||||||||||
Total intangible assets, net | $ | 1,038,146 | $ | (562,754 | ) | $ | 475,392 | $ | 1,003,355 | $ | (444,960 | ) | $ | 558,395 |
2017 | $ | 101,296 | |
2018 | 89,736 | ||
2019 | 78,082 | ||
2020 | 67,288 | ||
2021 | 58,288 | ||
Thereafter | 48,548 | ||
Total estimated amortization expense | $ | 443,238 |
|
Adjusted Cost | Unrealized Gains | Unrealized Losses | Fair Value | Cash and Cash Equivalents | Long-Term Investments and Other Assets, net | ||||||||||||||||||
Cash | $ | 1,191 | $ | — | $ | — | $ | 1,191 | $ | 1,191 | $ | — | |||||||||||
Level 1: | |||||||||||||||||||||||
Money market funds | 42,329 | — | — | 42,329 | 42,329 | — | |||||||||||||||||
Corporate securities | 3,007 | 1,011 | — | 4,018 | — | 4,018 | |||||||||||||||||
Subtotal | 45,336 | 1,011 | — | 46,347 | 42,329 | 4,018 | |||||||||||||||||
Total | $ | 46,527 | $ | 1,011 | $ | — | $ | 47,538 | $ | 43,520 | $ | 4,018 |
Issuance | December 31, 2016 | December 31, 2015 | Stated Interest Rate | ||||||||||||||||
Face Value | Estimated Fair Value | Face Value | Estimated Fair Value | ||||||||||||||||
2019 Notes | $ | 719,465 | $ | 743,783 | $ | 925,000 | $ | 879,906 | 6.375 | % | |||||||||
2020 Notes | 930,000 | 946,275 | 930,000 | 756,788 | 8.75 | % | |||||||||||||
2022 Notes Private Placement Notes | 270,000 | 280,372 | 300,000 | 296,296 | 8.875 | % | |||||||||||||
2022 Notes | 600,000 | 655,140 | — | — | 7.875 | % | |||||||||||||
Total | $ | 2,519,465 | $ | 2,625,570 | $ | 2,155,000 | $ | 1,932,990 |
|
Year ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Current income tax: | |||||||||||
Federal | $ | — | $ | — | $ | — | |||||
State | 545 | 392 | 779 | ||||||||
Foreign | 95 | (1 | ) | — | |||||||
Total | 640 | 391 | 779 | ||||||||
Deferred income tax: | |||||||||||
Federal | — | — | (925 | ) | |||||||
State | — | — | (181 | ) | |||||||
Foreign | (573 | ) | (40 | ) | 841 | ||||||
Total | (573 | ) | (40 | ) | (265 | ) | |||||
Provision for income taxes | $ | 67 | $ | 351 | $ | 514 |
Year ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Computed expected tax expense | $ | (93,770 | ) | $ | (94,737 | ) | $ | (81,107 | ) | ||
State income taxes, net of federal tax effect | 360 | 259 | 395 | ||||||||
Foreign income taxes | (949 | ) | 202 | 1,645 | |||||||
Other reconciling items | 666 | — | — | ||||||||
Permanent differences | 1,688 | 1,980 | 2,261 | ||||||||
Change in valuation allowance | 92,072 | 92,647 | 77,320 | ||||||||
Provision for income taxes | $ | 67 | $ | 351 | $ | 514 |
December 31, | |||||||
2016 | 2015 | ||||||
Gross deferred tax assets: | |||||||
Net operating loss carryforwards | $ | 799,302 | $ | 642,391 | |||
Deferred subscriber income | 19,866 | 13,722 | |||||
Accrued expenses and allowances | 15,452 | 15,415 | |||||
Purchased intangibles | 14,776 | 10,576 | |||||
Inventory reserves | 6,999 | 9,333 | |||||
Property and Equipment | 3,482 | 3,257 | |||||
Alternative minimum tax credit and research and development credit | 41 | 41 | |||||
Valuation allowance | (328,991 | ) | (234,771 | ) | |||
530,927 | 459,964 | ||||||
Gross deferred tax liabilities: | |||||||
Deferred subscriber acquisition costs | (537,387 | ) | (466,783 | ) | |||
Property and equipment | — | — | |||||
Prepaid expenses | (744 | ) | (705 | ) | |||
(538,131 | ) | (467,488 | ) | ||||
Net deferred tax liabilities | $ | (7,204 | ) | $ | (7,524 | ) |
December 31, | |||||||
2016 | 2015 | ||||||
Net operating loss carryforwards: | |||||||
United States | $ | 2,084,897 | $ | 1,695,386 | |||
State | 1,553,812 | 1,338,742 | |||||
Canada | 33,526 | 28,629 | |||||
New Zealand | — | 5,518 |
|
Incentive Units | Weighted Average Exercise Price Per Share | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | |||||||||
Outstanding, December 31, 2014 | 74,527,942 | $ | 1.03 | 8.19 | $ | 20,145,882 | ||||||
Granted | 3,850,000 | 2.40 | ||||||||||
Forfeited | (4,415,106 | ) | 1.03 | |||||||||
Exercised | — | — | ||||||||||
Outstanding, December 31, 2015 | 73,962,836 | 1.06 | 7.31 | 104,562,869 | ||||||||
Granted | 12,825,000 | 1.93 | ||||||||||
Forfeited | (905,000 | ) | 1.09 | |||||||||
Exercised | — | — | ||||||||||
Outstanding, December 31, 2016 | 85,882,836 | 1.19 | 6.81 | — | ||||||||
Unvested shares expected to vest after December 31, 2016 | 66,186,360 | 1.23 | 6.99 | — | ||||||||
Exercisable at December 31, 2016 | 19,696,476 | $ | 1.03 | 6.21 | $ | — |
Year ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Operating expenses | $ | 68 | $ | 71 | $ | 63 | |||||
Selling expenses | (127 | ) | 578 | 185 | |||||||
General and administrative expenses | 3,927 | 2,472 | 1,688 | ||||||||
Total stock-based compensation | $ | 3,868 | $ | 3,121 | $ | 1,936 |
Stock Appreciation Rights | Weighted Average Exercise Price Per Share | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | |||||||||
Outstanding, December 31, 2014 | 6,696,660 | $ | 1.04 | 8.62 | $ | 1,734,748 | ||||||
Converted | 3,259,934 | 0.70 | 8.62 | |||||||||
Granted | 11,186,936 | 1.03 | ||||||||||
Forfeited | (2,307,172 | ) | 0.80 | |||||||||
Exercised | (172,221 | ) | 0.68 | |||||||||
Outstanding, December 31, 2015 | 18,664,137 | 0.87 | 8.66 | 3,628,498 | ||||||||
Granted | 5,649,573 | 1.22 | ||||||||||
Forfeited | (2,320,552 | ) | 0.92 | |||||||||
Exercised | — | — | ||||||||||
Outstanding, December 31, 2016 | 21,993,158 | 0.96 | 8.23 | — | ||||||||
Unvested shares expected to vest after December 31, 2016 | 19,334,407 | 0.98 | 8.37 | — | ||||||||
Exercisable at December 31, 2016 | 2,658,751 | $ | 0.78 | 7.20 | $ | — |
Stock Appreciation Rights | Weighted Average Exercise Price Per Share | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | ||||||||
Outstanding, December 31, 2014 | 70,000 | $ | 5.00 | 8.41 | — | ||||||
Granted | 11,000 | 65.84 | |||||||||
Forfeited | — | — | |||||||||
Exercised | — | — | |||||||||
Outstanding, December 31, 2015 | 81,000 | 13.26 | 7.66 | — | |||||||
Granted | — | — | |||||||||
Forfeited | (63,500 | ) | 15.54 | ||||||||
Exercised | — | — | |||||||||
Outstanding, December 31, 2016 | 17,500 | 5.00 | 6.41 | — | |||||||
Unvested shares expected to vest after December 31, 2016 | 7,000 | 5.00 | 6.41 | — | |||||||
Exercisable, December 31, 2016 | 10,500 | $ | 5.00 | 6.41 | — |
|
Rent Expense | |||||||||
Years ended December 31, | |||||||||
2016 | 2015 | Lease Term | |||||||
Warehouse, office space and other | $ | 11,222 | $ | 11,632 | 1 - 15 years | ||||
Wireless towers, spectrum and other | 4,732 | 3,509 | 1 - 10 years | ||||||
Total Rent Expense | $ | 15,954 | $ | 15,141 |
Operating | Capital | Total | |||||||||
2017 | $ | 17,452 | $ | 10,513 | $ | 27,965 | |||||
2018 | 15,322 | 6,117 | 21,439 | ||||||||
2019 | 14,998 | 2,049 | 17,047 | ||||||||
2020 | 13,521 | 17 | 13,538 | ||||||||
2021 | 13,086 | — | 13,086 | ||||||||
Thereafter | 47,634 | — | 47,634 | ||||||||
Amounts representing interest | — | (963 | ) | (963 | ) | ||||||
Total lease payments | $ | 122,013 | $ | 17,733 | $ | 139,746 |
|
United States | Canada | Total | |||||||||
As of and for the | |||||||||||
Year ended December 31, 2016 | |||||||||||
Revenue from external customers | $ | 700,471 | $ | 57,436 | $ | 757,907 | |||||
Property and equipment, net | 62,781 | 845 | 63,626 | ||||||||
Year ended December 31, 2015 | |||||||||||
Revenue from external customers | $ | 602,418 | $ | 51,303 | $ | 653,721 | |||||
Property and equipment, net | 55,103 | 171 | 55,274 | ||||||||
Year ended December 31, 2014 | |||||||||||
Revenue from external customers | $ | 529,521 | $ | 34,156 | $ | 563,677 | |||||
Property and equipment, net | 62,368 | 422 | 62,790 |
|
Parent | APX Group, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
Assets | |||||||||||||||||||||||
Current assets | $ | — | $ | 25,136 | $ | 143,954 | $ | 3,730 | $ | (67,799 | ) | $ | 105,021 | ||||||||||
Property and equipment, net | — | — | 62,781 | 845 | — | 63,626 | |||||||||||||||||
Subscriber acquisition costs, net | — | — | 974,975 | 77,459 | — | 1,052,434 | |||||||||||||||||
Deferred financing costs, net | — | 4,420 | — | — | — | 4,420 | |||||||||||||||||
Investment in subsidiaries | — | 2,228,903 | — | — | (2,228,903 | ) | — | ||||||||||||||||
Intercompany receivable | — | — | 9,492 | — | (9,492 | ) | — | ||||||||||||||||
Intangible assets, net | — | — | 443,189 | 32,203 | — | 475,392 | |||||||||||||||||
Goodwill | — | — | 809,678 | 25,555 | — | 835,233 | |||||||||||||||||
Long-term investments and other assets | — | 106 | 11,523 | 13 | (106 | ) | 11,536 | ||||||||||||||||
Total Assets | $ | — | $ | 2,258,565 | $ | 2,455,592 | $ | 139,805 | $ | (2,306,300 | ) | $ | 2,547,662 | ||||||||||
Liabilities and Stockholders’ (Deficit) Equity | |||||||||||||||||||||||
Current liabilities | $ | — | $ | 17,047 | $ | 160,956 | $ | 74,987 | $ | (67,799 | ) | $ | 185,191 | ||||||||||
Intercompany payable | — | — | — | 9,492 | (9,492 | ) | — | ||||||||||||||||
Notes payable and revolving line of credit, net of current portion | — | 2,486,700 | — | — | — | 2,486,700 | |||||||||||||||||
Capital lease obligations, net of current portion | — | — | 7,368 | 567 | — | 7,935 | |||||||||||||||||
Deferred revenue, net of current portion | — | — | 53,991 | 4,743 | — | 58,734 | |||||||||||||||||
Accumulated losses of investee | 245,182 | (245,182 | ) | — | |||||||||||||||||||
Other long-term obligations | — | — | 47,080 | — | — | 47,080 | |||||||||||||||||
Deferred income tax liability | — | — | 106 | 7,204 | (106 | ) | 7,204 | ||||||||||||||||
Total (deficit) equity | (245,182 | ) | (245,182 | ) | 2,186,091 | 42,812 | (1,983,721 | ) | (245,182 | ) | |||||||||||||
Total liabilities and stockholders’ (deficit) equity | $ | — | $ | 2,258,565 | $ | 2,455,592 | $ | 139,805 | $ | (2,306,300 | ) | $ | 2,547,662 |
Parent | APX Group, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
Assets | |||||||||||||||||||||||
Current assets | $ | — | $ | 2,537 | $ | 91,555 | $ | 6,540 | $ | (53,066 | ) | $ | 47,566 | ||||||||||
Property and equipment, net | — | — | 55,012 | 262 | — | 55,274 | |||||||||||||||||
Subscriber acquisition costs, net | — | — | 728,547 | 62,097 | — | 790,644 | |||||||||||||||||
Deferred financing costs, net | — | 6,456 | — | — | — | 6,456 | |||||||||||||||||
Investment in subsidiaries | — | 2,070,404 | — | — | (2,070,404 | ) | — | ||||||||||||||||
Intercompany receivable | — | — | 22,398 | — | (22,398 | ) | — | ||||||||||||||||
Intangible assets, net | — | — | 519,301 | 39,094 | — | 558,395 | |||||||||||||||||
Goodwill | — | — | 809,678 | 24,738 | — | 834,416 | |||||||||||||||||
Long-term investments and other assets | — | 106 | 10,880 | 13 | (106 | ) | 10,893 | ||||||||||||||||
Total Assets | $ | — | $ | 2,079,503 | $ | 2,237,371 | $ | 132,744 | $ | (2,145,974 | ) | $ | 2,303,644 | ||||||||||
Liabilities and Stockholders’ (Deficit) Equity | |||||||||||||||||||||||
Current liabilities | $ | — | $ | 18,384 | $ | 143,896 | $ | 59,304 | $ | (53,066 | ) | $ | 168,518 | ||||||||||
Intercompany payable | — | — | — | 22,398 | (22,398 | ) | — | ||||||||||||||||
Notes payable and revolving line of credit, net of current portion | — | 2,138,112 | — | — | — | 2,138,112 | |||||||||||||||||
Capital lease obligations, net of current portion | — | — | 11,169 | 2 | — | 11,171 | |||||||||||||||||
Deferred revenue, net of current portion | — | — | 40,960 | 3,822 | — | 44,782 | |||||||||||||||||
Accumulated losses of investee | 76,993 | — | — | — | (76,993 | ) | — | ||||||||||||||||
Other long-term obligations | — | — | 10,530 | — | — | 10,530 | |||||||||||||||||
Deferred income tax liability | — | — | 106 | 7,524 | (106 | ) | 7,524 | ||||||||||||||||
Total (deficit) equity | (76,993 | ) | (76,993 | ) | 2,030,710 | 39,694 | (1,993,411 | ) | (76,993 | ) | |||||||||||||
Total liabilities and stockholders’ (deficit) equity | $ | — | $ | 2,079,503 | $ | 2,237,371 | $ | 132,744 | $ | (2,145,974 | ) | $ | 2,303,644 |
Parent | APX Group, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
Revenues | $ | — | $ | — | $ | 715,072 | $ | 45,539 | $ | (2,704 | ) | $ | 757,907 | ||||||||||
Costs and expenses | — | — | 787,138 | 44,575 | (2,704 | ) | 829,009 | ||||||||||||||||
(Loss) income from operations | — | — | (72,066 | ) | 964 | — | (71,102 | ) | |||||||||||||||
Loss from subsidiaries | (275,957 | ) | (69,637 | ) | — | — | 345,594 | — | |||||||||||||||
Other expense (income), net | — | 206,320 | (1,207 | ) | (325 | ) | — | 204,788 | |||||||||||||||
(Loss) income before income tax expenses | (275,957 | ) | (275,957 | ) | (70,859 | ) | 1,289 | 345,594 | (275,890 | ) | |||||||||||||
Income tax expense (benefit) | — | — | 545 | (478 | ) | — | 67 | ||||||||||||||||
Net (loss) income | $ | (275,957 | ) | $ | (275,957 | ) | $ | (71,404 | ) | $ | 1,767 | $ | 345,594 | $ | (275,957 | ) | |||||||
Other comprehensive (loss) income, net of tax effects: | |||||||||||||||||||||||
Foreign currency translation adjustment | — | 2,482 | — | 2,482 | (2,482 | ) | 2,482 | ||||||||||||||||
Unrealized gain on marketable securities | — | 1,011 | 1,011 | — | (1,011 | ) | 1,011 | ||||||||||||||||
Comprehensive (loss) income | $ | (275,957 | ) | $ | (272,464 | ) | $ | (70,393 | ) | $ | 4,249 | $ | 342,101 | $ | (272,464 | ) |
Parent | APX Group, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
Revenues | $ | — | $ | — | $ | 622,507 | $ | 34,022 | $ | (2,808 | ) | $ | 653,721 | ||||||||||
Costs and expenses | — | — | 730,322 | 34,882 | (2,808 | ) | 762,396 | ||||||||||||||||
Loss from operations | — | — | (107,815 | ) | (860 | ) | — | (108,675 | ) | ||||||||||||||
Loss from subsidiaries | (279,107 | ) | (118,885 | ) | — | — | 397,992 | — | |||||||||||||||
Other expense, net | — | 160,222 | 9,763 | 96 | — | 170,081 | |||||||||||||||||
Loss before income tax expenses | (279,107 | ) | (279,107 | ) | (117,578 | ) | (956 | ) | 397,992 | (278,756 | ) | ||||||||||||
Income tax expense (benefit) | — | — | 392 | (41 | ) | — | 351 | ||||||||||||||||
Net loss | $ | (279,107 | ) | $ | (279,107 | ) | $ | (117,970 | ) | $ | (915 | ) | $ | 397,992 | $ | (279,107 | ) | ||||||
Other comprehensive (loss) income, net of tax effects: | |||||||||||||||||||||||
Foreign currency translation adjustment | — | (13,293 | ) | 2 | (13,294 | ) | 13,292 | (13,293 | ) | ||||||||||||||
Comprehensive loss | $ | (279,107 | ) | $ | (292,400 | ) | $ | (117,968 | ) | $ | (14,209 | ) | $ | 411,284 | $ | (292,400 | ) |
Parent | APX Group, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
Revenues | $ | — | $ | — | $ | 530,888 | $ | 35,911 | $ | (3,122 | ) | $ | 563,677 | ||||||||||
Costs and expenses | — | — | 623,124 | 37,544 | (3,122 | ) | 657,546 | ||||||||||||||||
(Loss) income from operations | — | — | (92,236 | ) | (1,633 | ) | — | (93,869 | ) | ||||||||||||||
(Loss) income from subsidiaries | (238,660 | ) | (93,850 | ) | — | — | 332,510 | — | |||||||||||||||
Other expense (income), net | — | 145,917 | (1,676 | ) | 36 | — | 144,277 | ||||||||||||||||
Loss from operations before income tax expense | (238,660 | ) | (239,767 | ) | (90,560 | ) | (1,669 | ) | 332,510 | (238,146 | ) | ||||||||||||
Income tax (benefit) expense | — | (1,107 | ) | 779 | 842 | — | 514 | ||||||||||||||||
Net loss | $ | (238,660 | ) | $ | (238,660 | ) | $ | (91,339 | ) | $ | (2,511 | ) | $ | 332,510 | $ | (238,660 | ) | ||||||
Other comprehensive loss, net of tax effects: | |||||||||||||||||||||||
Foreign currency translation adjustment | — | (11,333 | ) | (6,895 | ) | (4,438 | ) | 11,333 | (11,333 | ) | |||||||||||||
Comprehensive loss | $ | (238,660 | ) | $ | (249,993 | ) | $ | (98,234 | ) | $ | (6,949 | ) | $ | 343,843 | $ | (249,993 | ) |
Parent | APX Group, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | — | $ | — | $ | (380,508 | ) | $ | 14,802 | $ | — | $ | (365,706 | ) | |||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Subscriber acquisition costs – company owned equipment | — | — | (5,243 | ) | — | — | (5,243 | ) | |||||||||||||||
Capital expenditures | — | — | (11,642 | ) | — | — | (11,642 | ) | |||||||||||||||
Proceeds from sale of capital assets | — | — | 3,080 | 43 | — | 3,123 | |||||||||||||||||
Investment in subsidiary | (100,407 | ) | (408,214 | ) | — | — | 508,621 | — | |||||||||||||||
Acquisition of intangible assets | — | — | (1,385 | ) | — | — | (1,385 | ) | |||||||||||||||
Net cash (used in) provided by investing activities | (100,407 | ) | (408,214 | ) | (15,190 | ) | 43 | 508,621 | (15,147 | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Proceeds from notes payable | — | 604,000 | — | — | — | 604,000 | |||||||||||||||||
Repayment on notes payable | — | (235,535 | ) | — | — | — | (235,535 | ) | |||||||||||||||
Borrowings from revolving line of credit | — | 57,000 | — | — | — | 57,000 | |||||||||||||||||
Repayment of revolving line of credit | — | (77,000 | ) | — | — | — | $ | (77,000 | ) | ||||||||||||||
Proceeds from capital contribution | 100,407 | 100,407 | — | — | (100,407 | ) | 100,407 | ||||||||||||||||
Payment of intercompany settlement | — | — | 3,000 | (3,000 | ) | — | — | ||||||||||||||||
Intercompany receivable | — | — | 12,906 | — | (12,906 | ) | — | ||||||||||||||||
Intercompany payable | — | — | 408,214 | (12,906 | ) | (395,308 | ) | — | |||||||||||||||
Repayments of capital lease obligations | — | — | (8,295 | ) | (20 | ) | — | (8,315 | ) | ||||||||||||||
Financing costs | — | (9,036 | ) | — | — | — | (9,036 | ) | |||||||||||||||
Deferred financing costs | — | (9,241 | ) | — | — | — | (9,241 | ) | |||||||||||||||
Net cash provided by (used in) provided by financing activities | 100,407 | 430,595 | 415,825 | (15,926 | ) | (508,621 | ) | 422,280 | |||||||||||||||
Effect of exchange rate changes on cash | — | — | — | (466 | ) | — | (466 | ) | |||||||||||||||
Net increase (decrease) in cash | — | 22,381 | 20,127 | (1,547 | ) | — | 40,961 | ||||||||||||||||
Cash: | |||||||||||||||||||||||
Beginning of period | — | 2,299 | (1,941 | ) | 2,201 | — | 2,559 | ||||||||||||||||
End of period | $ | — | $ | 24,680 | $ | 18,186 | $ | 654 | $ | — | $ | 43,520 |
Parent | APX Group, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | — | $ | (1,052 | ) | $ | (267,327 | ) | $ | 13,072 | $ | — | $ | (255,307 | ) | ||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Subscriber acquisition costs – company owned equipment | — | — | (23,641 | ) | (1,099 | ) | — | (24,740 | ) | ||||||||||||||
Capital expenditures | — | — | (26,941 | ) | (41 | ) | — | (26,982 | ) | ||||||||||||||
Proceeds from sale of capital assets | — | — | 480 | — | — | 480 | |||||||||||||||||
Investment in subsidiary | — | (296,895 | ) | — | — | 296,895 | — | ||||||||||||||||
Acquisition of intangible assets | — | — | (1,363 | ) | — | — | (1,363 | ) | |||||||||||||||
Proceeds from insurance claims | — | — | 2,984 | — | — | 2,984 | |||||||||||||||||
Change in restricted cash | — | — | 14,214 | — | — | 14,214 | |||||||||||||||||
Investment in convertible note | — | — | — | — | — | — | |||||||||||||||||
Other assets | — | — | (208 | ) | — | — | (208 | ) | |||||||||||||||
Net cash used in investing activities | — | (296,895 | ) | (34,475 | ) | (1,140 | ) | 296,895 | (35,615 | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Proceeds from notes payable | — | 296,250 | — | — | — | 296,250 | |||||||||||||||||
Borrowings from revolving line of credit | — | 271,000 | — | — | — | 271,000 | |||||||||||||||||
Repayment of revolving line of credit | — | (271,000 | ) | — | — | — | $ | (271,000 | ) | ||||||||||||||
Intercompany receivable | — | 11,601 | — | (11,601 | ) | — | |||||||||||||||||
Intercompany payable | — | — | 296,895 | (11,601 | ) | (285,294 | ) | — | |||||||||||||||
Repayments of capital lease obligations | — | — | (6,402 | ) | (12 | ) | — | (6,414 | ) | ||||||||||||||
Deferred financing costs | — | (5,436 | ) | — | — | — | (5,436 | ) | |||||||||||||||
Net cash provided by (used in) provided by financing activities | — | 290,814 | 302,094 | (11,613 | ) | (296,895 | ) | 284,400 | |||||||||||||||
Effect of exchange rate changes on cash | — | — | — | (1,726 | ) | — | (1,726 | ) | |||||||||||||||
Net increase (decrease) in cash | — | (7,133 | ) | 292 | (1,407 | ) | — | (8,248 | ) | ||||||||||||||
Cash: | |||||||||||||||||||||||
Beginning of period | — | 9,432 | (2,233 | ) | 3,608 | — | 10,807 | ||||||||||||||||
End of period | $ | — | $ | 2,299 | $ | (1,941 | ) | $ | 2,201 | $ | — | $ | 2,559 |
Parent | APX Group, Inc. | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 50,000 | $ | (894 | ) | $ | (318,734 | ) | $ | 9,991 | $ | (50,000 | ) | $ | (309,637 | ) | |||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Subscriber acquisition costs – company owned equipment | — | — | (10,580 | ) | — | — | (10,580 | ) | |||||||||||||||
Capital expenditures | — | — | (30,315 | ) | (185 | ) | — | (30,500 | ) | ||||||||||||||
Proceeds from sale of capital assets | — | — | 964 | — | — | 964 | |||||||||||||||||
Investment in subsidiary | (32,300 | ) | (340,024 | ) | — | — | 372,324 | — | |||||||||||||||
Acquisition of intangible assets | — | — | (9,649 | ) | — | — | (9,649 | ) | |||||||||||||||
Net cash used in acquisitions | — | — | (18,500 | ) | — | — | (18,500 | ) | |||||||||||||||
Investment in marketable securities | — | (60,000 | ) | — | — | — | (60,000 | ) | |||||||||||||||
Proceeds from marketable securities | — | 60,069 | — | — | — | 60,069 | |||||||||||||||||
Proceeds from note receivable | — | — | 22,699 | — | — | 22,699 | |||||||||||||||||
Change in restricted cash | — | — | 14,375 | — | — | 14,375 | |||||||||||||||||
Investment in convertible note | — | — | (3,000 | ) | — | — | (3,000 | ) | |||||||||||||||
Other assets | — | — | (2,153 | ) | (9 | ) | — | (2,162 | ) | ||||||||||||||
Net cash used in investing activities | (32,300 | ) | (339,955 | ) | (36,159 | ) | (194 | ) | 372,324 | (36,284 | ) | ||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Proceeds from notes payable | — | 102,000 | — | — | — | 102,000 | |||||||||||||||||
Borrowings from revolving line of credit | — | 20,000 | — | — | — | 20,000 | |||||||||||||||||
Proceeds from capital contribution | 32,300 | 32,300 | — | — | (32,300 | ) | 32,300 | ||||||||||||||||
Intercompany receivable | — | — | 10,658 | — | (10,658 | ) | — | ||||||||||||||||
Intercompany payable | — | — | 340,024 | (10,658 | ) | (329,366 | ) | — | |||||||||||||||
Proceeds from contract sales | — | — | 2,261 | — | — | 2,261 | |||||||||||||||||
Acquisition of contracts | — | — | (2,277 | ) | — | — | (2,277 | ) | |||||||||||||||
Repayments of capital lease obligations | — | — | (6,297 | ) | (3 | ) | — | (6,300 | ) | ||||||||||||||
Deferred financing costs | — | (2,927 | ) | — | — | — | (2,927 | ) | |||||||||||||||
Payment of dividends | (50,000 | ) | (50,000 | ) | — | — | 50,000 | (50,000 | ) | ||||||||||||||
Net cash (used in) provided by financing activities | (17,700 | ) | 101,373 | 344,369 | (10,661 | ) | (322,324 | ) | 95,057 | ||||||||||||||
Effect of exchange rate changes on cash | — | — | — | (234 | ) | — | (234 | ) | |||||||||||||||
Net increase (decrease) in cash | — | (239,476 | ) | (10,524 | ) | (1,098 | ) | — | (251,098 | ) | |||||||||||||
Cash: | |||||||||||||||||||||||
Beginning of period | — | 248,908 | 8,291 | 4,706 | — | 261,905 | |||||||||||||||||
End of period | $ | — | $ | 9,432 | $ | (2,233 | ) | $ | 3,608 | $ | — | $ | 10,807 |
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