APX GROUP HOLDINGS, INC., S-4 filed on 6/13/2019
Securities Registration: Business Combination
v3.19.2
Document and Entity Information
3 Months Ended
Mar. 31, 2019
Document And Entity Information [Abstract]  
Document Type S-4
Amendment Flag false
Document Period End Date Mar. 31, 2019
Entity Registrant Name APX Group Holdings, Inc.
Entity Central Index Key 0001584423
Entity Filer Category Non-accelerated Filer
Entity Small Business false
Entity Emerging Growth Company false
v3.19.2
Consolidated Balance Sheets - USD ($)
$ in Thousands
Mar. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Current Assets:      
Cash and cash equivalents $ 3,691 $ 12,773 $ 3,872
Accounts and notes receivable, net 55,348 48,724 40,721
Inventories 94,275 50,552 115,222
Prepaid expenses and other current assets 15,128 11,449 16,150
Total current assets 168,442 123,498 175,965
Property, plant and equipment, net 64,614 73,401 78,081
Capitalized contract costs, net 1,092,865 1,115,775 0
Subscriber acquisition costs, net   0 1,308,558
Deferred financing costs, net 1,797 2,058 3,099
Intangible assets, net 235,583 255,085 377,451
Goodwill 835,404 834,855 836,970
Operating lease right-of-use assets 72,891 0  
Long-term notes receivables and other assets, net 121,796 119,819 88,723
Total assets 2,593,392 2,524,491 2,868,847
Current Liabilities:      
Accounts payable 115,242 66,646 107,347
Accrued payroll and commissions 37,281 65,479 57,752
Accrued expenses and other current liabilities 158,997 136,715 74,321
Deferred revenue 194,326 186,953 88,337
Current portion of operating lease liabilities 11,749 0  
Current portion of finance lease liabilities 7,114 7,743  
Current portion of capital lease obligations   7,743 10,614
Total current liabilities 524,709 463,536 338,371
Notes payable, net 2,956,702 2,961,947 2,760,297
Notes payable, net - related party 79,288 75,148 0
Revolving credit facility 40,000 0 60,000
Finance lease liabilities, net of current portion 3,952 5,571  
Capital lease obligations, net of current portion   5,571 11,089
Deferred revenue, net of current portion 326,631 323,585 264,555
Operating lease liabilities 71,964 0  
Other long-term obligations 73,390 90,209 79,020
Deferred income tax liabilities 1,120 1,096 9,041
Total liabilities 4,077,756 3,921,092 3,522,373
Commitments and contingencies  
Stockholders’ deficit:      
Common stock, $0.01 par value, 100 shares authorized; 100 shares issued and outstanding 0 0  
Additional paid-in capital 737,072 736,333 732,346
Accumulated deficit (2,193,169) (2,104,097) (1,358,571)
Accumulated other comprehensive loss (28,267) (28,837) (27,301)
Total stockholders’ deficit (1,484,364) (1,396,601) (653,526)
Total liabilities and stockholders’ deficit $ 2,593,392 $ 2,524,491 $ 2,868,847
v3.19.2
Consolidated Balance Sheets (Parenthetical) - $ / shares
Mar. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Statement of Financial Position [Abstract]      
Common stock, par value (in dollars per share) $ 0.01 $ 0.01 $ 0.01
Common stock, authorized (in shares) 100 100 100
Common stock, issued (in shares) 100 100 100
Common stock, outstanding (in shares) 100 100 100
v3.19.2
Consolidated Statements of Operations - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Revenues:          
Revenues: $ 276,249 $ 246,597 $ 1,050,441 $ 881,983 $ 757,907
Costs and expenses:          
Operating expenses (exclusive of depreciation and amortization shown separately below) 83,076 83,760 355,813 321,476 264,865
Selling expenses (exclusive of amortization of deferred commissions, respectively, which are included in depreciation and amortization shown separately below) 43,591 59,243 213,386 198,348 131,421
General and administrative expenses 46,339 50,967 204,536 188,397 143,168
Depreciation and amortization 131,221 124,258 514,082 329,255 288,542
Restructuring and asset impairment charges     4,683 0 1,013
Total costs and expenses 304,227 318,228 1,292,500 1,037,476 829,009
Loss from operations (27,978) (71,631) (242,059) (155,493) (71,102)
Other expenses (income):          
Interest expense 63,748 58,790 245,214 225,772 197,965
Interest income (23) (31) (425) (130) (432)
Other (income) loss, net (2,246) (45,240) (17,323) 27,986 7,255
Loss before income taxes (89,457) (85,150) (469,525) (409,121) (275,890)
Income tax (benefit) expense (301) (433) (1,611) 1,078 67
Net loss (89,156) (84,717) (467,914) (410,199) (275,957)
Recurring and other revenue          
Revenues:          
Revenues: $ 276,249 $ 246,597 1,050,441 843,420 724,478
Service and other sales revenue          
Revenues:          
Revenues:     0 26,988 22,855
Activation fees          
Revenues:          
Revenues:     $ 0 $ 11,575 $ 10,574
v3.19.2
Consolidated Statements of Operations (Parenthetical) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Income Statement [Abstract]          
Amortization of deferred commissions $ 44,012 $ 38,303 $ 165,797 $ 84,152 $ 64,007
v3.19.2
Consolidated Statements of Comprehensive Loss - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Statement of Comprehensive Income [Abstract]          
Net loss $ (89,156) $ (84,717) $ (467,914) $ (410,199) $ (275,957)
Other comprehensive income (loss), net of tax effects:          
Foreign currency translation adjustment 570 (659) (2,218) 3,155 2,482
Unrealized (loss) gain on marketable securities     0 (1,693) 1,011
Total other comprehensive income (loss) 570 (659) (2,218) 1,462 3,493
Comprehensive loss $ (88,586) $ (85,376) $ (470,132) $ (408,737) $ (272,464)
v3.19.2
Consolidated Statements of Changes in Equity (Deficit) - USD ($)
$ in Thousands
Total
Common Stock
Additional paid-in capital
Accumulated deficit
Accumulated deficit
Previously Reported [Member]
Accumulated other comprehensive loss
Accumulated other comprehensive loss
Previously Reported [Member]
Stockholders' equity, beginning balance at Dec. 31, 2015 $ (76,993) $ 0 $ 627,645 $ (672,382)   $ (32,256)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net Loss (275,957)     (275,957)      
Foreign currency translation adjustment 2,482         2,482  
Unrealized (loss) gain on marketable securities 1,011         1,011  
Stock-based compensation 3,868   3,868        
Capital contribution 100,407   100,407        
Stockholders' equity, ending balance at Dec. 31, 2016 (245,182) 0 731,920 (948,339)   (28,763)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net Loss (410,199)     (410,199)      
Foreign currency translation adjustment 3,155         3,155  
Unrealized (loss) gain on marketable securities (1,693)         (1,693)  
Stock-based compensation 1,544   1,577 (33)      
Return of capital to Vivint Smart Home, Inc. (1,151)   (1,151)        
Stockholders' equity, ending balance at Dec. 31, 2017 (653,526) 0 732,346 (1,358,571)   (27,301)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net Loss (84,717)            
Foreign currency translation adjustment (659)            
Stock-based compensation 205   205        
Return of capital to Vivint Smart Home, Inc. (966)   (966)        
Stockholders' equity, ending balance at Mar. 31, 2018 (1,022,235) 0 731,585 (1,726,540)   (27,280)  
Stockholders' equity, beginning balance at Dec. 31, 2017 (653,526) 0 732,346 (1,358,571)   (27,301)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net Loss (467,914)     (467,914)      
Foreign currency translation adjustment (2,218)         (2,218)  
Unrealized (loss) gain on marketable securities 0            
Stock-based compensation 2,416   2,416        
Capital contribution 4,700   4,700        
Return of capital to Vivint Smart Home, Inc. (3,129)   (3,129)        
Stockholders' equity, ending balance at Dec. 31, 2018 (1,396,601) 0 736,333 (2,104,097) $ (2,104,095) (28,837) $ (28,839)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Net Loss (89,156)            
Foreign currency translation adjustment 570            
Stock-based compensation 857   857        
Return of capital to Vivint Smart Home, Inc. (118)   (118)        
Stockholders' equity, ending balance at Mar. 31, 2019 $ (1,484,364) $ 0 $ 737,072 $ (2,193,169)   $ (28,267)  
v3.19.2
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Cash flows from operating activities:          
Net loss from operations $ (89,156) $ (84,717) $ (467,914) $ (410,199) $ (275,957)
Adjustments to reconcile net loss to net cash used in operating activities of operations:          
Amortization of capitalized contract costs 105,031 95,363 398,174 0 0
Amortization of subscriber acquisition costs     0 206,153 154,877
Amortization of customer relationships 18,632 21,084 84,174 94,863 108,178
Gain on fair value changes of equity securities (2,212) (332) (477) 0 0
Depreciation and amortization of property, plant and equipment and other intangible assets 7,558 7,811 31,734 28,239 25,488
Amortization of deferred financing costs and bond premiums and discounts 1,180 1,343 5,152 6,586 10,447
Loss (gain) on sale or disposal of assets 232 (50,459) (49,762) 458 (33)
Loss on early extinguishment of debt     14,571 23,062 10,085
Stock-based compensation 857 204 2,505 1,595 3,868
Provision for doubtful accounts 5,918 3,968 19,405 22,465 19,624
Deferred income taxes     (2,149) 929 (478)
Restructuring and asset impairment charges     0 0 7,126
Changes in operating assets and liabilities, net of acquisitions:          
Accounts and notes receivable, net (10,424) (6,124) (34,008) (49,590) (24,338)
Inventories (43,668) 5,914 64,442 (75,580) (11,827)
Prepaid expenses and other current assets (3,678) (1,010) 4,695 (5,975) (5,165)
Capitalized contract costs, net 80,614 84,986 499,252 0 0
Subscriber acquisition costs, net     0 (457,679) (419,509)
Long-term notes receivables, other assets, net and right-of-use assets 2,756 (6,135) (29,118) (74,801) 368
Accounts payable 42,864 (25,551) (27,045) 70,525 (2,978)
Accrued payroll and commissions, accrued expenses, other current and long-term liabilities, and current and long-term operating lease liabilities (8,113) 30,252 91,469 62,208 12,702
Restructuring liability     0 (91) (2,797)
Deferred revenue 9,820 33,793 172,905 247,500 24,613
Net cash used in operating activities (43,017) (59,582) (220,499) (309,332) (365,706)
Cash flows from investing activities:          
Subscriber acquisition costs – company owned equipment     0 0 (5,243)
Capital expenditures (1,391) (6,407) (19,412) (20,391) (11,642)
Proceeds from the sale of intangible assets 0 53,693 53,693 0 0
Proceeds from the sale of capital assets     127 776 3,123
(Payments) proceeds from the sale of capital assets (51) 149      
Acquisition of intangible assets (369) (849) (1,486) (1,745) (1,385)
Acquisition of other assets     0 (301) 0
Net cash (used in) provided by investing activities (1,811) 46,586 32,922 (21,661) (15,147)
Cash flows from financing activities:          
Proceeds from notes payable     759,000 724,750 604,000
Proceeds from notes payable - related party     51,000 0 0
Repayments of notes payable (2,025) 0 (522,191) (450,000) (235,535)
Borrowings from revolving credit facility 40,000 57,000 201,000 196,895 57,000
Repayments on revolving line of credit 0 (40,000) (261,000) (136,895) (77,000)
Repayments of capital lease obligations   (3,418) (12,354) (10,007) (8,315)
Repayments of finance lease obligations (2,136)        
Payments of other long-term obligations     0 (2,983) 0
Financing costs     (11,317) (18,277) (9,036)
Deferred financing costs     (9,302) (11,119) (9,241)
Return of capital (118) (966) (3,129) (1,151) 0
Proceeds from capital contributions     4,700 0 100,407
Net cash provided by financing activities 35,721 12,616 196,407 291,213 422,280
Cash and cash equivalents:          
Beginning of period 12,773 3,872 3,872 43,520 2,559
End of period 3,691 3,473 12,773 3,872 43,520
Supplemental cash flow disclosures:          
Income tax paid     330 219 435
Interest paid     239,441 207,433 189,170
Supplemental non-cash investing and financing activities:          
Capital lease additions     4,569 14,633 8,411
Intangible asset acquisitions included within accounts payable, accrued expenses and other current liabilities and other long-term obligations     974 557 31,283
Capital expenditures included within accounts payable and accrued expenses and other current liabilities 2,213 572 128 2,531 2,345
Change in fair value of equity securities     0 1,314 1,011
Property acquired under build-to-suit agreements included within other long-term obligations     0 2,300 4,619
Finance lease additions 93 3,524      
Intangible assets acquisitions included within accounts payable 374 403      
Effect of exchange rate changes on cash 25 (19) 71 132 (466)
Net decrease in cash and cash equivalents (9,082) (399) 8,901 (39,648) 40,961
Proceeds from capital contribution $ 0 $ 0 $ 4,700 $ 0 $ 100,407
v3.19.2
Basis of Presentation and Significant Accounting Policies
3 Months Ended
Mar. 31, 2019
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 APX Group Holdings, Inc. and subsidiaries (the “Company”) without audit. The accompanying consolidated financial statements include the accounts of APX Group Holdings, 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, 2018 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, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019.
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, 2018, as filed with the Securities and Exchange Commission (“SEC”) on March 8, 2019, which is available on the SEC’s website at www.sec.gov.
Basis of Presentation
The unaudited condensed consolidated financial statements of the Company are presented for APX Group Holdings, Inc. (“Holdings") and its wholly-owned subsidiaries. The Company has prepared the accompanying unaudited condensed consolidated financial statements pursuant to GAAP. Preparing financial statements requires the Company to make estimates and assumptions that affect the amounts that are reported in the 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.
Vivint Flex Pay
The Vivint Flex Pay plan (“Vivint Flex Pay”) became the Company's primary sales 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 options to pay for the Products: (1) qualified customers in the United States may finance the purchase of Products through a third-party financing provider (“Consumer Financing Program”), (2) customers not eligible for the Consumer Financing Program, but who qualify under the Company's underwriting criteria, may 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. Gross deferred revenues are reduced by imputed interest on the RICs and the present value of expected payments due to the third-party financing provider under the Consumer Financing Program.
Under the Consumer Financing Program, qualified customers are eligible for installment loans provided by a third-party financing provider of up to $4,000 for either 42 or 60 months.
For a certain third-party provider, the Company pays a monthly fee based on the average daily outstanding balance of the installment loans. Additionally, the Company shares liability for credit losses depending on the credit quality of the customer. Because of the nature of these provisions with this third-party provider, the Company records a derivative liability at its fair value when the third-party financing provider originates installment 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 third-party financing provider. Subsequent changes to the fair value of the derivative liability are realized through other income, net in the Condensed Consolidated Statement of Operations. (See Note 8).
For a separate third-party financing provider, the Company receives net proceeds from installment loans (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. The RIC receivables are recorded at their present value, net of the imputed interest discount. At the time of installation, the Company records a long-term note receivable within long-term notes receivables and other assets, net on the 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 condensed consolidated balance sheets. The billed amounts of notes receivables are included in accounts receivable within accounts and notes receivable, net on the condensed consolidated balance sheets.
The Company imputes the interest on the RIC receivable using a risk adjusted market interest rate and records it as an adjustment to deferred revenue and as an adjustment to the face amount of the related receivable. The imputed interest discount considers a number of factors, including collection experience, aging of the remaining RIC receivable portfolios, credit quality of the subscriber base and other qualitative considerations, including macro-economic factors. The imputed interest income is recognized over the term of the RIC contract as recurring and other revenue on the condensed consolidated statement of operations.
When the Company determines that there are RIC receivables that have become uncollectible, it records an adjustment to the imputed interest discount and reduces the related note receivable balance. 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 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 condensed consolidated balance sheets. Accounts receivable totaled $20.0 million and $16.5 million at March 31, 2019 and December 31, 2018, respectively net of the allowance for doubtful accounts of $5.8 million and $5.6 million at March 31, 2019 and December 31, 2018, respectively. The Company estimates this allowance based on historical collection experience and subscriber attrition rates. 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 $5.9 million and $4.0 million for the three months ended March 31, 2019 and 2018, 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, 2019
 
Twelve Months Ended December 31, 2018
Beginning balance
$
5,594

 
$
5,356

Provision for doubtful accounts
5,918

 
19,405

Write-offs and adjustments
(5,704
)
 
(19,167
)
Balance at end of period
$
5,808

 
$
5,594


Revenue Recognition
The Company offers its customers smart home services combining Products, including a proprietary control panel, door and window sensors, door locks, security 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. 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 and five years in length and are non-cancelable. These contracts with customers generally convert into month-to-month agreements at the end of the initial term, and some customer contracts are month-to-month from inception. Payment for recurring monitoring and other Smart Home Services is generally due in advance on a monthly basis.
Sales of Products and other one-time fees such as service fees or installation fees are invoiced to the customer at the time of sale. Revenues for wireless internet service provided by Vivint Wireless Inc. (“Wireless Internet” or “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 to five years.
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. These costs are deferred and amortized on a straight-line basis over the expected period of benefit that the Company has determined to be five years. Amortization of capitalized contract costs is included in “Depreciation and Amortization” on the consolidated statements of operations. These deferred costs are periodically reviewed for impairment. 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 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 Products and parts, are stated at the lower of cost or net realizable value with cost determined under the first-in, first-out (“FIFO”) method. 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 five to ten 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 with 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, 2019 and 2018, 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,
 
2019
 
2018
Amortization of capitalized contract costs
$
105,028

 
$
95,363

Amortization of definite-lived intangibles
20,272

 
22,720

Depreciation of property, plant and equipment
5,921

 
6,175

Total depreciation and amortization
$
131,221

 
$
124,258


Leases
Effective January 1, 2019 the Company accounts for leases under Topic 842 (see Recently Adopted Accounting Standards below). Under Topic 842, 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 condensed consolidated balance sheets. Finance lease assets are included in property, plant and equipment, net on the 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.
Prior to the adoption of Topic 842, the Company's leases were classified as either operating or capital leases. Capital lease liabilities were stated separately on the condensed consolidated balance sheets and capital lease assets were included in property, plant and equipment, net on the condensed consolidated balance sheets. Operating leases were not recognized in the balance sheet. Capital lease balances are presented on the same lines as finance lease balances for comparative prior periods in the unaudited condensed consolidated financial statements. See Recently Adopted Accounting Standards below and note 12 "Leases" for additional information related to the impact of adopting Topic 842.
Long-term Investments
The Company’s long-term investments are composed of equity securities in both privately held and public companies. As of March 31, 2019 and December 31, 2018, the Company's equity investments totaled $6.1 million and $3.9 million, respectively.
Management determines the appropriate fair value measurement of its investments at the time of purchase and reevaluates the fair value measurement at each balance sheet date. Equity securities are classified as either short-term or long-term, based on the nature of each security and its availability for use in current operations. The Company’s equity securities are carried at fair value, with gains and losses reported in other income or loss within the statement of operations.
The Company's equity investments without readily determinable fair values totaled $0.7 million as of March 31, 2019 and December 31, 2018, respectively. The Company performs impairment analyses of its investments without readily determinable fair values when events occur or circumstances change that would, more likely than not, reduce the fair value of the investment below its carrying value. When indicators of impairment do not exist, the Company evaluates impairment using a qualitative approach. Additionally, increases or decreases in the carrying amount resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer are adjusted through the statement of operations as needed. As of March 31, 2019 and December 31, 2018, no indicators of impairment or changes in observable prices existed associated with investments without readily determinable fair values.
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. Deferred financing costs included in the accompanying unaudited condensed consolidated balance sheets within deferred financing costs, net at March 31, 2019 and December 31, 2018 were $1.8 million and $2.1 million, net of accumulated amortization of $9.9 million and $9.6 million, respectively. Deferred financing costs included in the accompanying unaudited condensed consolidated balance sheets within notes payable, net at March 31, 2019 and December 31, 2018 were $30.1 million and $32.4 million, net of accumulated amortization of $56.8 million and $54.6 million, respectively. Amortization expense on deferred financing costs recognized and included in interest expense in the accompanying unaudited condensed consolidated statements of operations, totaled $2.5 million and $2.7 million for the three months ended March 31, 2019 and 2018, respectively (See Note 3).
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 the underlying contracts they create.
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 amount included in accrued payroll and commissions $3.1 million and $4.9 million at March 31, 2019 and December 31, 2018, respectively, and the amount included in other long-term obligations was $16.8 million and $17.6 million at March 31, 2019 and December 31, 2018, 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 10).
Advertising Expense
Advertising costs are expensed as incurred. Advertising costs were $12.7 million and $13.7 million for the three months ended March 31, 2019 and 2018, 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, 2019, approximately 82% of the Company’s installed panels were SkyControl panels and 17% were 2GIG Go!Control panels and 1% were other panels. During the three months ended March 31, 2018 the Company transitioned to a new panel supplier. The loss of the Company's panel supplier 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, 2019 and 2018.
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 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 than the carrying value of its net assets, goodwill is not considered to be impaired and no further testing is required. If the fair value of the reporting unit is less than the carrying value of its net assets, the Company would be required to complete the second step of the test by analyzing the fair value of its goodwill. If the carrying value of the goodwill exceeds its fair value, an impairment charge is recorded. The Company’s reporting units are determined based on its current reporting structure, which as of December 31, 2018 and March 31, 2019 consisted of two reporting units. As of March 31, 2019, there were no changes in facts and circumstances since the most recent annual impairment analysis to indicate impairment existed.
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.
When intercompany foreign currency transactions between entities included in the consolidated financial statements are of a long term investment nature (i.e., those for which settlement is not planned or anticipated in the foreseeable future) foreign currency translation adjustments resulting from those transactions are included in stockholders’ deficit as accumulated other comprehensive loss or income. When intercompany transactions are deemed to be of a short term nature, translation adjustments are required to be included in the condensed consolidated statement of operations. The Company has determined that settlement of Vivint Canada, Inc. intercompany balances is anticipated and therefore such balances are deemed to be of a short term nature. Translation activity included in the statement of operations in other loss, net related to intercompany balances was as follows: (in thousands)
 
Three Months Ended March 31,
 
2019
 
2018
Translation (gain) loss
$
(1,701
)
 
$
2,075


Letters of Credit
As of March 31, 2019 and December 31, 2018, the Company had $13.9 million and $13.8 million, respectively, of letters of credit issued in the ordinary course of business, all of which are undrawn.
Restructuring and Asset Impairment Charges
Restructuring and asset impairment charges represent expenses incurred in relation to activities to exit or disposal 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 15).
Recent Accounting Pronouncements
In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-13, “Financial Instruments—Credit Losses (Topic 326)” which modifies the measurement of expected credit losses of certain financial instruments. This update is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019 and must be applied using a modified-retrospective approach, with early adoption permitted. The Company is evaluating the adoption of ASU 2016-13 and plans to provide additional information about its expected impact at a future date.
Recently Adopted Accounting Standards
In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” to increase transparency and comparability among organizations as it relates to lease assets and lease liabilities. The update requires that lease assets and lease liabilities be recognized on the balance sheet, and that key information about leasing arrangements be disclosed. Prior to this update, GAAP did not require operating leases to be recognized as lease assets and lease liabilities on the balance sheet.
The Company adopted ASU 2016-02 as of January 1, 2019, utilizing the modified retrospective approach and using certain practical expedients. The adoption of the standard resulted in recording ROU assets of $75.5 million and lease liabilities of $85.9 million as of January 1, 2019. The ROU assets are lower than the lease liabilities as existing deferred rent and lease incentive liabilities were recorded against the ROU assets at adoption in accordance with the standard. The standard did not materially affect the Company's condensed consolidated statements of operations or its condensed consolidated statements of cash flows. The standard also resulted in a reassessment that a sale would have occurred at January 1, 2019 for the Company's build-to-suit building. As a result, the Company classifies the leasing arrangement as an operating lease. The recognition of the sale-leaseback transaction resulted in an immaterial amount recorded to opening equity. See Note 6 for additional information on the sale-leaseback transaction. See Note 12 "Leases" for additional information related to the impact of adopting this standard.
v3.19.2
Description of Business
12 Months Ended
Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of Business
Description of Business
APX Group Holdings, Inc. (“Holdings” or “Parent”), and its wholly-owned subsidiaries, (collectively the “Company”), is one of the largest smart home companies in North America. The Company is engaged in the sale, installation, servicing and monitoring of smart home and security systems, primarily in the United States and Canada. Holdings is wholly-owned by Vivint Smart Home, Inc., which is majority owned by 313 Acquisition, LLC. Vivint Smart Home, Inc. and APX Group Holdings, Inc. have no operations.
v3.19.2
Significant Accounting Policies
12 Months Ended
Dec. 31, 2018
Accounting Policies [Abstract]  
Significant Accounting Policies
Significant Accounting Policies
Basis of Presentation
The Company has prepared the accompanying consolidated financial statements pursuant to generally accepted accounting principles in the United States (“GAAP”). Preparing financial statements requires the Company to make estimates and assumptions that affect the amounts that are reported in the 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.
Vivint Flex Pay
In January 2017, the Company announced the introduction of the Vivint Flex Pay plan (“Vivint Flex Pay”), which became the Company’s primary sales 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 options to pay for the Products: (1) qualified customers in the United States may finance the purchase of Products through a third-party financing provider (“Consumer Financing Program”) (2) customers not eligible for the Consumer Financing Program, but who qualify under the Company’s underwriting criteria, may 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 the Products and Services under the Vivint Flex Pay plan, the Company has determined that the shift in its sales model does not change the Company’s conclusion 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. Gross deferred revenues are reduced by imputed interest on the RICs and the present value of expected payments due to the third-party financing provider under the Consumer Financing Program.
Under the Consumer Financing Program, qualified customers are eligible for installment loans provided by a third-party financing provider of up to $4,000 for either 42 or 60 months. The Company pays a monthly fee to the third-party financing provider based on the average daily outstanding balance of the installment loans. Additionally, the Company shares liability for credit losses depending on the credit quality of the customer. Because of the nature of these provisions under the Consumer Financing Program, the Company records a derivative liability at its fair value when the third-party financing provider originates installment 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 from the Company to the third-party financing provider. Subsequent changes to the fair value of the derivative liability are realized through other loss/(income), net in the Consolidated Statement of Operations. (See Note 9).

Retail Installment Contract Receivables
For customers that enter into a RIC under the Vivint Flex Pay plan, the Company records a receivable for the amount financed. The RIC receivables are recorded at their present value, net of the imputed interest discount. At the time of installation, the Company records a long-term note receivable within long-term notes receivables and other assets, net on the 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 consolidated balance sheets. The billed amounts of notes receivables are included in accounts receivable within accounts and notes receivable, net on the consolidated balance sheets.
The Company imputes the interest on the RIC receivable using a risk adjusted market interest rate and records it as an adjustment to deferred revenue and as an adjustment to the face amount of the related receivable. The imputed interest discount considers a number of factors, including collection experience, aging of the remaining RIC receivable portfolios, credit quality of the subscriber base and other qualitative considerations, including macro-economic factors. The imputed interest income is recognized over the term of the RIC contract as recurring and other revenue on the consolidated statement of operations.
When the Company determines that there are RIC receivables that have become uncollectible, it records an adjustment to the imputed interest discount and reduces the related note receivable balance. 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. (See Note 4).
Revenue Recognition
The Company offers its customers smart home services combining Products, including a proprietary control panel, door and window sensors, door locks, security 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. 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 benefit, which is generally three years.
The majority of the Company’s subscription contracts are between three and five years in length and are non-cancelable. These contracts with customers generally convert into month-to-month agreements at the end of the initial term, and some customer contracts are month-to-month from inception. Payment for recurring monitoring and other Smart Home Services is generally due in advance on a monthly basis.
Sales of Products and other one-time fees such as service fees or installation fees are invoiced to the customer at the time of sale. Revenues for wireless internet service provided by Vivint Wireless Inc. (“Wireless Internet” or “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.
Accounts Receivable
Accounts receivable consists primarily of amounts due from customers for recurring monthly monitoring Services 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 consolidated balance sheets. Accounts receivable totaled $16.5 million and $24.3 million and December 31, 2018 and 2017, respectively net of the allowance for doubtful accounts of $5.6 million and $5.4 million at December 31, 2018 and 2017, respectively. The Company estimates this allowance based on historical collection experience and subscriber attrition rates. 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 consolidated statements of operations and totaled $19.4 million and $22.5 million for the years ended December 31, 2018 and 2017, respectively.
The changes in the Company’s allowance for accounts receivable were as follows for the periods ended (in thousands):
 
 
Year ended December 31,
 
2018
 
2017
 
2016
Beginning balance
$
5,356

 
$
4,138

 
$
3,541

Provision for doubtful accounts
19,405

 
22,465

 
19,624

Write-offs and adjustments
(19,167
)
 
(21,247
)
 
(19,027
)
Balance at end of period
$
5,594

 
$
5,356

 
$
4,138


Restructuring and Asset Impairment Charges
Restructuring 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 10).
Principles of Consolidation
The accompanying consolidated financial statements include the accounts of APX Group Holdings, Inc. and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.
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 customer 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. These costs are deferred and amortized on a straight-line basis over the expected period of benefit that the Company has determined to be five years. Amortization of capitalized contract costs is included in “Depreciation and Amortization” on the consolidated statements of operations. These deferred costs are periodically reviewed for impairment. Contract costs not directly related and incremental to the origination of new contracts, modification of existing contracts or to the fulfillment of the related customer 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 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 customer 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 market with cost determined under the first-in, first-out (FIFO) method. 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 capital 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 5 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 with 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 years ended December 31, 2018, 2017 and 2016, 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):
 
Year ended December 31,
 
2018
 
2017
 
2016
Amortization of capitalized contract costs
$
398,174

 
$

 
$

Amortization of subscriber acquisition costs

 
206,153

 
154,877

Amortization of definite-lived intangibles
90,945

 
101,827

 
116,865

Depreciation of property, plant and equipment
24,963

 
21,275

 
16,800

Total depreciation and amortization
$
514,082

 
$
329,255

 
$
288,542



Wireless Spectrum Licenses
The Company had capitalized as an intangible asset wireless spectrum licenses that were acquired from third parties. The cost basis of the wireless spectrum asset includes the purchase price paid for the licenses at the time of acquisition, plus costs incurred to acquire the licenses. The asset and related liability were recorded at the net present value of future cash outflows using the Company's incremental borrowing rate at the time of acquisition.
 The Company determined that the wireless spectrum licenses met the definition of indefinite-lived intangible assets because the licenses were able to be renewed periodically for a nominal fee, provided that the Company continued to meet the service and geographic coverage provisions. In January 2018, the Company terminated the wireless spectrum licenses for cash consideration. See Note 8 for further discussion.
 Long-term Investments
The Company’s long-term investments are composed of equity securities in both privately held and public companies. As of December 31, 2018 and 2017, the Company's equity investments totaled $3.9 million and $3.4 million, respectively.
Management determines the appropriate fair value measurement of its investments at the time of purchase and reevaluates the fair value measurement at each balance sheet date. Equity securities, are classified as either short-term or long-term, based on the nature of each security and its availability for use in current operations. The Company’s equity securities are carried at fair value, with gains and losses, reported in other income or loss within the statement of operations
The Company's equity investments without readily determinable fair values as of both December 31, 2018 and 2017 totaled $0.7 million. The Company performs impairment analyzes of its cost based investments when events occur or circumstances change that would, more likely than not, reduce the fair value of the investment below its carrying value. When indicators of impairment do not exist, the Company evaluates impairment using a qualitative approach. Additionally, increases or decreases in the carrying amount resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer are adjusted through the statement of operations as needed. As of December 31, 2018, no indicators of impairment or changes in observable prices existed associated with investments without readily determinable fair values.
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's revolving credit facility are amortized over the amended maturity dates discussed in Note 5. If such financing is paid off or replaced prior to maturity with debt instruments that have substantially different terms, the unamortized costs are charged to expense. Deferred financing costs included in the accompanying consolidated balance sheets within deferred financing costs, net at December 31, 2018 and 2017 were $2.1 million and $3.1 million, net of accumulated amortization of $9.6 million and $8.6 million, respectively. Deferred financing costs included in the accompanying consolidated balance sheets within notes payable, net at December 31, 2018 and 2017 were $32.4 million and $35.7 million, net of accumulated amortization of $54.6 million and $45.2 million, respectively. Amortization expense on deferred financing costs recognized and included in interest expense in the accompanying consolidated statements of operations totaled $10.4 million, $11.4 million and $11.6 million for the years ended December 31, 2018, 2017 and 2016, respectively.
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”). In addition, in 2018, the Company introduced a new residual sales compensation plan (the “Residual Plan”). Under the Residual Plan, the Company's sales personnel (each, a “Plan Participant”) have the option to convert up to a specified portion of their earnings (as defined in the Residual Plan) into the right to receive monthly residual compensation payable over the life of the subscriber accounts sold by such Plan Participant.
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 amount included in accrued payroll and commissions was $4.5 million and $3.3 million as of December 31, 2018 and 2017, respectively, and the amount included in other long-term obligations was $13.0 million and $18.5 million at December 31, 2018 and 2017, respectively, representing the present value of the estimated amounts owed to third-party sales channel partners.
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 12).
Advertising Expense
Advertising costs are expensed as incurred. Advertising costs were approximately $47.2 million, $42.5 million and $33.0 million for the years ended December 31, 2018, 2017 and 2016, 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 (See Note 11).
Contracts Sold
During the year ended December 31, 2016, the Company sold all of its New Zealand and Puerto Rico subscriber contracts and ceased operations in these geographical regions ("2016 Contract Sales"). As a result, during the year ended December 31, 2016 the Company recorded the impact of these transactions in restructuring and asset impairment (See Note 10).
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 December 31, 2018, approximately 80% of the Company’s installed panels were SkyControl panels and 19% were 2GIG Go!Control panels. During the three months ended March 31, 2018 the Company transitioned to a new panel supplier. The loss of the Company's panel supplier 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 years ended December 31, 2018 and 2017.
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 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 than the carrying value of its net assets, goodwill is not considered to be impaired and no further testing is required. If the fair value of the reporting unit is less than the carrying value of its net assets, the Company would be required to complete the second step of the test by analyzing the fair value of its goodwill. If the carrying value of the goodwill exceeds its fair value, an impairment charge is recorded. The Company’s reporting units are determined based on its current reporting structure, which as of December 31, 2018 consisted of two reporting units. The Company found that no indicators of goodwill impairment existed during the year ended December 31, 2018, thus a qualitative approach was used and it was determined that no impairment existed for goodwill.
During the years ended December 31, 2018, 2017 and 2016, no impairments to goodwill were recorded.
Foreign Currency Translation and Other Comprehensive Income
The functional currencies of Vivint Canada, Inc. and Vivint New Zealand, Ltd. are the Canadian and New Zealand dollars, respectively. Accordingly, assets and liabilities are translated from their respective functional currencies into U.S. dollars at period-end rates and 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 (loss) income and shown as a separate component of equity. During the year ended December 31, 2016, the Company completed the 2016 Contract Sales which included all contracts in the New Zealand, Ltd. entity. (See Note 10)
When intercompany foreign currency transactions between entities included in the consolidated financial statements are of a long term investment nature (i.e., those for which settlement is not planned or anticipated in the foreseeable future) foreign currency translation adjustments resulting from those transactions are included in stockholders’ (deficit) equity as accumulated other comprehensive loss or income. When intercompany transactions are deemed to be of a short term nature, translation adjustments are required to be included in the consolidated statement of operations. The Company has determined that settlement of Vivint Canada, Inc. and Vivint New Zealand, Ltd. intercompany balances are anticipated and therefore such balances are deemed to be of a short-term nature. Translation activity included in the statements of operations in other loss, net related to intercompany balances was a loss of $7.1 million for the year ended December 31, 2018, a gain of $4.9 million for the year ended December 31, 2017, and a gain of $2.1 million for the year ended December 31, 2016.
Letters of Credit
As of December 31, 2018 and 2017, the Company had $13.8 million and $9.5 million, respectively, of letters of credit issued in the ordinary course of business, all of which are undrawn.
Recent Accounting Pronouncements
In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-13, “Financial Instruments—Credit Losses (Topic 326),” which modifies the measurement of expected credit losses of certain financial instruments. This update is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019 and must be applied using a modified-retrospective approach, with early adoption permitted. The Company is evaluating the adoption of ASU 2016-13 and plans to provide additional information about its expected impact at a future date.
In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” to increase transparency and comparability among organizations as it relates to lease assets and lease liabilities. The update requires that lease assets and lease liabilities be recognized on the balance sheet, and that key information about leasing arrangements be disclosed. Prior to this update, GAAP did not require operating leases to be recognized as lease assets and lease liabilities on the balance sheet. This update is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, with early adoption permitted. In July 2018, the FASB issued ASU 2018-11 which provides companies the option to adopt using a modified retrospective approach or a prospective adoption approach.
The Company is continuing its evaluation of the impact of ASU 2016-02 on its accounting policies. The Company’s current operating lease portfolio is primarily comprised of network, real estate, and equipment leases. Upon adoption of this standard, the Company expects to record a right of use asset and liability related to all operating lease arrangements. The Company has assigned internal resources to perform the evaluation. Furthermore, the Company has made and will continue to make investments in systems to enable timely and accurate reporting under the new standard.
The Company expects the standard will have a material impact on the Company’s consolidated balance sheets but will not have a material impact on the consolidated statements of operations. The most significant impact will be the recognition of right of use assets and lease liabilities for operating leases. In connection with the adoption of the new lease accounting standard, the Company has completed scoping reviews and continues to make progress implementing new processes, systems, accounting policies and internal controls relevant to the standard. The Company will adopt this standard on January 1, 2019 using the prospective adoption approach and has elected to use the practical expedients allowed under the standard.
Recently Adopted Accounting Standards
ASU 2016-01
In January 2016, the FASB issued ASU 2016-01, "Financial Instruments-Overall (Subtopic 825-10)," which enhances the reporting model for financial instruments by addressing certain aspects of the recognition, measurement, presentation and disclosure of financial instruments. Key provisions require equity investments (except those accounted for under the equity method of accounting) to be measured at fair value with changes in fair value recognized in net income (loss). In addition, the exit price notion must be used when measuring the fair value of financial instruments for disclosure purposes. The Company adopted ASU 2016-01 on January 1, 2018, with a cumulative-effect adjustment to increase accumulated deficit by $0.7 million for the net unrealized losses within accumulated other comprehensive income related to equity investments. During the year ended December 31, 2018, the Company recorded a net loss of $0.3 million, respectively, to other income associated with the change in fair value of equity investments.
ASU 2014-09
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” which supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605).” Under Topic 606, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. In addition, Topic 606 requires enhanced disclosures, including disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Topic 606 also includes Subtopic 340-40, Other Assets and Deferred Costs - Contracts with Customers, which requires the deferral of incremental costs of obtaining a contract with a customer. Collectively, the Company refers to Topic 606 and Subtopic 340-40 as the “new standard”.
The Company adopted the new standard as of January 1, 2018, utilizing the modified retrospective method of transition (the cumulative catch-up transition method). Adoption of the new standard resulted in changes to the accounting policies for revenue recognition, deferred revenue, and capitalized contract costs (formerly subscriber acquisition costs). The cumulative effect of applying the new standard to all contracts with customers that were not completed as of January 1, 2018 was recorded as an adjustment to accumulated deficit as of the adoption date. The comparative information has not been adjusted and continues to be reported under Topic 605. See Note 3 "Revenue and Capitalized Contract Costs" for additional information related to the impact of adopting this standard and a discussion of the Company's updated policies related to revenue recognition and accounting for costs to obtain and fulfill a customer contract.
v3.19.2
Revenue and Capitalized Contract Costs
3 Months Ended 12 Months Ended
Mar. 31, 2019
Dec. 31, 2018
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.     
During the three months ended March 31, 2019 and 2018, the Company recognized revenues of $86.4 million and $59.8 million, respectively, that were included in the deferred revenue balance as of December 31, 2018 and 2017, respectively.
Transaction Price Allocated to the Remaining Performance Obligations
As of March 31, 2019, approximately $2.2 billion of revenue is expected to be recognized from remaining performance obligations for subscription contracts. The Company expects to recognize approximately 63% 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 to five years.
Capitalized Contract Costs
Capitalized contract costs generally include commissions, other compensation and related costs paid directly for the generation and installation of new or modified customer contracts, as well as the cost of Products installed in the customer home at the commencement or modification of the contract. The Company defers and amortizes these costs for new or modified subscriber contracts on a straight-line basis over the expected period of benefit of five years.
Revenue and Capitalized Contract Costs
Subscribers are typically invoiced for Smart Home Services monthly in advance or at the time the Company delivers the related Smart Home Services. The majority of subscribers pay at the time of invoice via credit card, debit card or ACH. The Company does not generally record any contract assets. The Company records deferred revenues when cash payments (or other consideration) are received or due in advance of performance of the Company's obligations, including amounts which are refundable.
The increase in the deferred revenue balance during the year ended December 31, 2018 was primarily driven by cash payments received or due in advance of satisfying the Company's performance obligations, offset by $144.1 million of revenues recognized that were included in the deferred revenue balance as of December 31, 2017.
Transaction Price Allocated to the Remaining Performance Obligations
As of December 31, 2018, approximately $2.2 billion of revenue is expected to be recognized from remaining performance obligations for existing subscription contracts over the remaining contract term and excludes the effect of any cancellations. The Company expects to recognize approximately 62.5% of the revenue related to these remaining performance obligations over the next 24 months, with the remaining balance recognized over an additional 36 months.
Financial Statement Impact of Adopting Topic 606
The Company adopted Topic 606 using the modified retrospective method. The cumulative effect of applying the new standard to all contracts with subscribers that were not completed as of January 1, 2018 was recorded as an adjustment to accumulated deficit as of the adoption date. As a result of applying the modified retrospective method to adopt the new revenue guidance, the following cumulative catch-up adjustments were made to select consolidated balance sheet line items as of January 1, 2018 (in thousands):
Consolidated Balance Sheets
 
 
 
 
 
 
 
As Reported
 
Adjustments
 
Adjusted
 
December 31, 2017
 
 
January 1, 2018
Assets
 
 
 
 
 
Capitalized contract costs, net
$

 
$
1,020,408

 
$
1,020,408

Subscriber acquisition costs, net
1,308,558

 
(1,308,558
)
 

Long-term notes receivables and other assets, net
88,723

 
2,713

 
91,436

 
 
 
 
 

Liabilities and Stockholders' Deficit
 
 
 
 

Accrued expenses and other current liabilities
74,321

 
10,329

 
84,650

Deferred revenue
88,337

 
39,868

 
128,205

Deferred revenue, net of current portion
264,555

 
(53,062
)
 
211,493

Deferred income tax liabilities
9,041

 
(5,641
)
 
3,400

Accumulated deficit
(1,358,571
)
 
(276,931
)
 
(1,635,502
)
The following tables compare the select reported consolidated balance sheets, statements of operations and cash flows line items to the amounts had the previous guidance been in effect (in thousands):
Consolidated Balance Sheets

 
 
 
December 31, 2018
 
As Reported
 
Balances Without Adoption of Topic 606
 
Effect of Change
Higher/(Lower)
Assets
 
 
 
 
 
Capitalized contract costs, net
$
1,115,775

 
$

 
$
1,115,775

Subscriber acquisition costs, net

 
1,518,188

 
(1,518,188
)
Liabilities and Stockholders' Deficit
 
 

 
 
Accrued expenses and other current liabilities
136,715

 
126,900

 
9,815

Deferred revenue
186,953

 
126,582

 
60,371

Deferred revenue, net of current portion
323,585

 
440,474

 
(116,889
)
Deferred income tax liabilities
1,096

 
8,682

 
(7,586
)
Accumulated deficit
(2,104,097
)
 
(1,754,426
)
 
(349,671
)
Accumulated other comprehensive loss
(28,837
)
 
(30,384
)
 
1,547

Consolidated Statements of Operations and Comprehensive Loss
 
 
 
Year ended December 31, 2018
 
As Reported
 
Balances Without Adoption of Topic 606
 
Effect of Change
Higher/(Lower)
Revenues:
 
 
 
 
 
Recurring and other revenue
$
1,050,441

 
$
950,661

 
$
99,780

Service and other sales revenue

 
46,177

 
(46,177
)
Activation fees

 
9,705

 
(9,705
)
Total revenues
1,050,441

 
1,006,543

 
43,898

Costs and expenses:
 
 

 
 
Operating expenses
355,813

 
385,672

 
(29,859
)
Depreciation and amortization
514,082

 
367,879

 
146,203

Loss from operations
(242,059
)
 
(169,613
)
 
(72,446
)
Income tax (benefit) expense
(1,611
)
 
806

 
(2,417
)
Net loss
(467,914
)
 
(397,885
)
 
(70,029
)
Other comprehensive loss, net of tax effects:
 
 

 
 
Foreign currency translation adjustment
(2,218
)
 
(3,765
)
 
1,547

Total other comprehensive (loss) income
(2,218
)
 
(3,765
)
 
1,547

Comprehensive loss
(470,132
)
 
(401,650
)
 
(68,482
)
Consolidated Statements of Cashflows

 
 
 
Year ended December 31, 2018
 
As Reported
 
Balances Without Adoption of Topic 606
 
Effect of Change
Higher/(Lower)
 
 
 
 
 
 
Cash flows from operating activities:
 
 
 
 
 
Net loss
$
(467,914
)
 
$
(397,885
)
 
$
(70,029
)
Adjustments to reconcile net loss to net cash used in operating activities:
 
 
 
 
 
Amortization of capitalized contract costs
398,174

 

 
398,174

Amortization of subscriber acquisition costs

 
251,971

 
(251,971
)
Changes in operating assets and liabilities:
 
 
 
 
 
Capitalized contract costs – deferred contract costs
(499,252
)
 

 
(499,252
)
Subscriber acquisition costs – deferred contract costs

 
(469,393
)
 
469,393

Accrued expenses and other current liabilities
91,469

 
93,886

 
(2,417
)
Deferred revenue
172,905

 
216,803

 
(43,898
)
Net cash used in operating activities
(220,499
)
 
(220,499
)
 


Timing of Revenue Recognition
The Company previously recognized certain service and other sales revenue when the Services were provided or when title to Products sold transferred to the subscriber. Revenue from the sale of Products that were not part of the service offering (i.e., those Products sold subsequent to the date of the initial installation) were also generally recognized upon delivery of Products. Under the new standard, the Company considers Products, related installation, and its proprietary back-end cloud platform software and services an integrated system that allows the Company’s subscribers to monitor, control and protect their homes. These Smart Home Services are accounted for as a single performance obligation that is recognized over the subscriber’s contract term. Accordingly, the Company now defers a larger portion of certain Smart Home Services revenue, as prior to the adoption of Topic 606 certain of this revenue was recognized at the time services were provided or upon delivery.
The Company previously amortized deferred revenues related to sales of Products and activation fees on subscriber contracts over the expected life of the customer, which was 15 years using a 240% declining balance method. Under the new standard, revenues related to sales of Products and activation fees are included in the transaction price allocated to the single Smart Home Service performance obligation and recognized straight-line over the subscriber’s contract term, which is generally three to five years.
Capitalized Contract Costs
Capitalized contract costs generally include commissions, other compensation and related costs incurred directly for the generation and installation of new or modified subscriber contracts, as well as the cost of Products installed in the subscriber's home at the commencement or modification of the contract. The Company previously deferred and amortized these costs for new subscriber contracts in the same manner as deferred revenue and generally expensed all costs associated with modified subscriber contracts. Under the new standard, the Company defers and amortizes these costs for new or modified subscriber contracts on a straight-line basis over the expected period of benefit of five years.
v3.19.2
Long-Term Debt
3 Months Ended 12 Months Ended
Mar. 31, 2019
Dec. 31, 2018
Debt Disclosure [Abstract]    
Long-Term Debt
Long-Term Debt
The Company’s debt at March 31, 2019 and December 31, 2018 consisted of the following (in thousands): 
 
March 31, 2019
 
Outstanding
Principal
 
Unamortized
Premium (Discount)
 
Unamortized Deferred Financing Costs (1)
 
Net Carrying
Amount
Senior Secured Revolving Credit Facilities
$
40,000

 
$

 
$

 
$
40,000

8.75% Senior Notes due 2020
679,299

 
1,958

 
(4,678
)
 
676,579

8.875% Senior Secured Notes Due 2022
270,000

 
(2,006
)
 
(564
)
 
267,430

7.875% Senior Secured Notes Due 2022
900,000

 
19,028

 
(11,983
)
 
907,045

7.625% Senior Notes Due 2023
400,000

 

 
(3,712
)
 
396,288

Senior Secured Term Loan - noncurrent
797,850

 

 
(9,202
)
 
788,648

Total Long-Term Debt
3,087,149

 
18,980

 
(30,139
)
 
3,075,990

Senior Secured Term Loan - current
8,100

 

 

 
8,100

Total Debt
$
3,095,249

 
$
18,980

 
$
(30,139
)
 
$
3,084,090

 
December 31, 2018
 
Outstanding
Principal
 
Unamortized
Premium (Discount)
 
Unamortized Deferred Financing Costs (1)
 
Net Carrying
Amount
8.75% Senior Notes due 2020
$
679,299

 
$
2,230

 
$
(5,380
)
 
$
676,149

8.875% Senior Secured Notes due 2022
270,000

 
(2,122
)
 
(602
)
 
267,276

7.875% Senior Secured Notes due 2022
900,000

 
20,178

 
(12,799
)
 
907,379

7.625% Senior Notes Due 2023
400,000

 

 
(3,922
)
 
396,078

Senior Secured Term Loan - noncurrent
799,875

 

 
(9,662
)
 
790,213

Total Long-Term Debt
3,049,174

 
20,286

 
(32,365
)
 
3,037,095

Senior Secured Term Loan - current
8,100

 

 

 
8,100

Total Debt
$
3,057,274

 
$
20,286

 
$
(32,365
)
 
$
3,045,195

 
 
(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, 2019 and December 31, 2018 were $1.8 million and $2.1 million, respectively.

Notes Payable
2020 Notes
As of March 31, 2019, APX had $679.3 million outstanding aggregate principal amount of 8.75% senior notes due 2020 (the “2020 notes”) with a maturity date of December 1, 2020.
2022 Private Placement Notes
As of March 31, 2019, APX had $270.0 million outstanding aggregate principal amount of 8.875% senior secured notes due 2022 (the “2022 private placement notes”). The 2022 private placement notes will mature on December 1, 2022, unless on September 1, 2020 (the 91st day prior to the maturity of the 2020 notes) more than an aggregate principal amount of $190.0 million of such 2020 notes remain outstanding or have not been refinanced as permitted under the note purchase agreement for the 2022 private placement notes, in which case the 2022 private placement notes will mature on September 1, 2020. The 2022 private placement notes are secured, on a pari passu basis, by the collateral securing obligations under the 2022 private placement notes, the 2022 notes (as defined below), and the 2023 notes (as defined below), and the revolving credit facilities and the Term Loan (as defined below), in each case, subject to certain exceptions and permitted liens.
2022 Notes    
As of March 31, 2019, APX had $900.0 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 2022 private placement notes, the revolving credit facilities and the Term Loan, in all cases, subject to certain exceptions and permitted liens.
2023 Notes
As of March 31, 2019, APX had $400.0 million outstanding aggregate principal amount of the 7.625% senior notes due 2023 (the “2023 notes” and, together with the 2020 notes, the 2022 notes and the 2022 private placement notes, the “Notes”) with a maturity date of September 1, 2023.
Interest accrues at the rate of 8.75% per annum for the 2020 notes, 8.875% per annum for the 2022 private placement notes, 7.875% per annum for the 2022 notes and 7.625% per annum for the 2023 notes. Interest on the 2020 notes, 2022 private placement notes and 2022 notes is payable semiannually in arrears on each June 1 and December 1. Interest on the 2023 notes is payable semiannually in arrears on each March 1 and September 1. APX may redeem the Notes at the prices and on the terms specified in the applicable indenture, or the note purchase agreement.
Term Loan
In September 2018, APX entered into a credit agreement (the “September 2018 issuance”) for total term loans of $810.0 million (the “Term Loan”). The Company is required to make quarterly amortization payments under the Term Loan in an amount equal to 0.25% of the aggregate principal amount of Term Loan outstanding on the closing date thereof. The remaining principal amount outstanding under the Term Loan will be due and payable in full on March 31, 2024, or earlier if certain springing maturity conditions apply. The net proceeds from the Term Loan were used in-part to redeem in full the entire $269.5 million outstanding aggregate principal amount of the 2019 notes and pay the related accrued interest and redemption premium, to repurchase approximately $250.7 million aggregate principal amount of the outstanding 2020 notes, to repay the outstanding borrowings under the revolving credit facility and to pay fees and expenses related to the Term Loan and the transactions described above.

Borrowings under the Term Loan bear interest at a rate per annum equal to an applicable margin plus, at the Company'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 at the prices and on the terms specified in the credit agreement covering the Term Loan.
 
Other expense and loss on extinguishment
 
Deferred financing costs

Deferred financing costs are amortized to interest expense over the life of the issued debt.    The following table presents deferred financing activity for the three months ended March 31, 2019 and year ended December 31, 2018 (in thousands):
 
Unamortized Deferred Financing Costs
 
Balance December 31, 2018
 
Additions
 
Early Extinguishment
 
Amortized
 
Balance March 31, 2019
Revolving Credit Facility
$
2,058

 
$

 
$

 
$
(261
)
 
$
1,797

2020 Notes
5,380

 

 

 
(702
)
 
4,678

2022 Private Placement Notes
602

 

 

 
(38
)
 
564

2022 Notes
12,799

 

 

 
(816
)
 
11,983

2023 Notes
3,922

 

 

 
(210
)
 
3,712

Term Loan
9,662

 


 

 
(460
)
 
9,202

Total Deferred Financing Costs
$
34,423

 
$

 
$

 
$
(2,487
)
 
$
31,936


 
Unamortized Deferred Financing Costs
 
Balance December 31, 2017
 
Additions
 
Early Extinguishment
 
Amortized
 
Balance December 31, 2018
Revolving Credit Facility
$
3,099

 
$

 
$

 
$
(1,041
)
 
$
2,058

2019 Notes
2,877

 

 
(1,877
)
 
(1,000
)
 

2020 Notes
11,209

 

 
(2,330
)
 
(3,499
)
 
5,380

2022 Private Placement Notes
752

 

 

 
(150
)
 
602

2022 Notes
16,067

 

 

 
(3,268
)
 
12,799

2023 Notes
4,762

 

 

 
(840
)
 
3,922

Term Loan

 
10,275

 

 
(613
)
 
9,662

Total Deferred Financing Costs
$
38,766

 
$
10,275

 
$
(4,207
)
 
$
(10,411
)
 
$
34,423



Revolving Credit Facility
On November 16, 2012, APX entered into a $200.0 million senior secured revolving credit facility, with a five year maturity. On March 6, 2015, APX amended and restated the credit agreement governing the revolving credit facility to provide for, among other things, (1) an increase in the aggregate commitments previously available to APX thereunder from $200.0 million to $289.4 million (“Revolving Commitments”) and (2) the extension of the maturity date with respect to certain of the previously available commitments. On August 10, 2017, APX further amended and restated the credit agreement governing the revolving credit facility to provide for, among other things, (1) an increase in the aggregate commitments previously available to the Company from $289.4 million to $324.3 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 (1)(a) under the Series A Revolving Commitments of approximately $267.0 million is and, when in effect, the Series D Revolving Commitments of approximately $15.4 million was 2.0% per annum and (b) under the Series B Revolving Commitments of approximately $21.2 million was 3.0% and (2)(a) the applicable margin for LIBOR rate-based borrowings (a) under the Series A Revolving Commitments is, and, when in effect, the Series D Revolving Commitments is currently 3.0% per annum and (b) under the Series B Revolving Commitments is currently 4.0%. 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. Outstanding borrowings under the amended and restated revolving credit facility are allocated on a pro-rata basis between each Series based on the total Revolving Commitments.
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 Series D Revolving Commitments of $15.4 million expired effective April 1, 2019 and the principal amount outstanding under the revolving credit facility will be due and payable in full with respect to the extended commitments under the Series A Revolving Credit Facility and Series B Revolving Credit Facility on March 31, 2021.
As of March 31, 2019 there was $40.0 million outstanding borrowings under the revolving credit facility. As of December 31, 2018, there were no outstanding borrowings under the revolving credit facility. As of March 31, 2019 the Company had $249.7 million of availability under the revolving credit facility (including the Series D Revolving Commitments scheduled to terminate effective April 1, 2019 and after giving effect to $13.9 million of letters of credit outstanding and $40.0 million of borrowings).

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 APX Group Holdings, Inc. and each of APX Group, Inc.'s existing and future material wholly-owned U.S. restricted subsidiaries. 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.
Long-Term Debt
Notes Payable
2019 Notes
On November 16, 2012, APX issued $925.0 million aggregate principal amount of 6.375% senior secured notes due 2019 (the “2019 notes”) with a maturity date of December 1, 2019 which were secured on a first-priority lien basis by substantially all of the tangible and intangible assets whether now owned or hereafter acquired by the Company, subject to permitted liens and exceptions.
The Company repurchased $205.5 million, $300.0 million and $150.0 million aggregate principal amount of the outstanding 2019 notes in May 2016, February 2017, and August 2017, respectively. In September 2018, the Company redeemed in full the entire remaining $269.5 million outstanding aggregate principal amount of the 2019 notes.
2020 Notes
On November 16, 2012, APX issued $380.0 million aggregate principal amount of 8.75% senior notes due 2020 (the “2020 notes”) with a maturity date of December 1, 2020.
During 2013, APX completed two offerings of additional 2020 notes under the indenture dated November 16, 2012. On May 31, 2013, APX issued $200.0 million of 2020 notes at a price of 101.75% and on December 13, 2013, APX issued an additional $250.0 million of 2020 notes at a price of 101.50%.
During 2014, APX issued an additional $100.0 million of 2020 notes at a price of 102.00% .
In September 2018, the Company repurchased $250.7 million outstanding aggregate principal amount of the 2020 notes.
2022 Private Placement Notes
In October 2015, APX issued $300.0 million aggregate principal amount of 8.875% senior secured notes due 2022 (the “2022 private placement notes”), pursuant to a note purchase agreement dated as of October 19, 2015 in a private placement exempt from registration under the Securities Act. The 2022 private placement notes will mature on December 1, 2022, unless on September 1, 2020 (the 91st day prior to the maturity of the 2020 notes) more than an aggregate principal amount of $190.0 million of such 2020 notes remain outstanding or have not been refinanced as permitted under the note purchase agreement for the 2022 private placement notes, in which case the 2022 private placement notes will mature on September 1, 2020. The 2022 private placement notes are secured, on a pari passu basis, by the collateral securing obligations under the 2019 notes, the 2022 private placement notes, the 2022 notes (as defined below), and the 2023 notes (as defined below), and the revolving credit facilities and the Term Loan (as defined below), in each case, subject to certain exceptions and permitted liens.
In May 2016, the Company repurchased $29.5 million outstanding aggregate principal amount of the 2022 private placement notes.
2022 Notes
In May 2016, APX issued $500.0 million aggregate principal amount of 7.875% senior secured notes due 2022 (the “2022 notes”), pursuant to an indenture dated as of May 26, 2016 among APX, the guarantors party thereto and Wilmington Trust, National Association, as trustee and collateral agent. 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 2019 notes and 2022 private placement notes, the revolving credit facilities and the Term Loan, in all cases, subject to certain exceptions and permitted liens. APX used a portion of the net proceeds from the issuance of the 2022 notes to repurchase approximately $235 million aggregate principal amount of the outstanding 2019 notes and 2022 private placement notes in privately negotiated transactions and repaid borrowings under the existing revolving credit facility.
In August 2016, APX issued an additional $100.0 million aggregate principal amount of the 2022 notes at a price of 104.00%.
In February 2017, APX issued an additional $300.0 million aggregate principal amount of the 2022 notes at a price of 108.25% (“February 2017 issuance”). A portion of the net proceeds from the offering of these 2022 notes were used to redeem $300.0 million aggregate principal amount of the existing 2019 notes and pay the related accrued interest and redemption premium, and to pay all fees and expenses related thereto and any remaining proceeds will be used for general corporate purposes.
2023 Notes
In August 2017, APX issued $400.0 million aggregate principal amount of the 7.625% senior notes due 2023 (the “2023 notes” and, together with the 2019 notes, the 2020 notes and the 2022 private placement notes, the “Notes”) (“August 2017 issuance”). The proceeds from the outstanding 2023 notes offering were used to redeem $150.0 million aggregate principal amount of the outstanding 2019 notes and pay the related accrued interest and redemption premium, and to pay all fees and expenses related thereto. Any remaining net proceeds have been or will be used for general corporate purposes, which may include the repayment of outstanding borrowings under the revolving credit facility.
All of the obligations under the credit agreement governing the revolving credit facility, the credit agreement governing the Term Loan (defined below) and the debt agreements governing the Existing Notes are guaranteed by APX Group Holdings, Inc. and each of APX Group, Inc.'s existing and future material wholly-owned U.S. restricted subsidiaries. However, such subsidiaries shall only be required to guarantee the obligations under the debt agreements governing the Existing 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. Interest accrues at the rate of 8.75% per annum for the 2020 notes, 8.875% per annum for the 2022 private placement notes, 7.875% per annum for the 2022 notes and 7.625% per annum for the 2023 notes. Interest on the 2020 notes, 2022 private placement notes and 2022 notes is payable semiannually in arrears on each June 1 and December 1. Interest on the 2023 notes is payable semiannually in arrears on each March 1 and September 1. APX may redeem the Existing Notes at the prices and on the terms specified in the applicable indenture, note purchase agreement or credit agreement.
Term Loan
In September 2018, APX entered into a credit agreement (the “September 2018 issuance”) for total term loans of $810.0 million (the “Term Loan”). The Company is required to make quarterly amortization payments under the Term Loan in an amount equal to 0.25% of the aggregate principal amount of Term Loan outstanding on the closing date thereof. The remaining principal amount outstanding under the Term Loan will be due and payable in full on March 31, 2024, or earlier if certain springing maturity conditions apply. The net proceeds from the Term Loan were used in-part to redeem in full the entire $269.5 million outstanding aggregate principal amount of the 2019 Notes and pay the related accrued interest and redemption premium, to repurchase approximately $250.7 million aggregate principal amount of the outstanding 2020 Notes, to repay the outstanding borrowings under the revolving credit facility and to pay fees and expenses related to the Term Loan and the transactions described above.
Borrowings under the Term Loan bear interest at a rate per annum equal to an applicable margin plus, at the Company'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 at the prices and on the terms specified in the credit agreement covering the Term Loan.
Debt Modifications and Extinguishments
In accordance with ASC 470-50 Debt – Modifications and Extinguishments, the Company performed analyses for the September 2018, August 2017 and February 2017 issuances to determine if the notes repurchased with the proceeds from those issuances were substantially different than the notes issued to determine the appropriate accounting treatment of associated issuance fees. As a result of these analyses, the Company recorded the following amounts of other expense and loss on extinguishment and deferred financing costs during the years ended December 31, 2018, 2017 and 2016 (in thousands):

 
Other expense and loss on extinguishment
 
Deferred financing costs
Issuance
Original premium extinguished
 
Previously deferred financing costs extinguished
 
New financing costs
 
Total other expense and loss on extinguishment
 
Previously deferred financing rolled over
 
New deferred financing costs
 
Total deferred financing costs
For the year ended December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
September 2018 issuance
$
(953
)
 
$
4,207

 
$
11,317

 
$
14,571

 
$

 
$
10,275

 
$
10,275

 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the year ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
August 2017 issuance
$

 
$
1,408

 
$
8,881

 
$
10,289

 
$
473

 
$
4,569

 
$
5,042

February 2017 issuance

 
3,259

 
9,491

 
12,750

 
1,476

 
6,076

 
7,552

Total
$

 
$
4,667

 
$
18,372

 
$
23,039

 
$
1,949

 
$
10,645

 
$
12,594

 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the year ended December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
May 2016 issuance
$
355

 
$
695

 
$
9,036

 
$
10,086

 
$
3,423

 
$
6,628

 
$
10,051



Deferred financing costs are amortized to interest expense over the life of the issued debt.    The following table presents deferred financing activity for the year ended December 31, 2018 and 2017 (in thousands):

 
Unamortized Deferred Financing Costs
 
Balance 12/31/2017
 
Additions
 
Refinances
 
Early Extinguishment
 
Amortized
 
Balance 12/31/2018
Revolving Credit Facility
$
3,099

 
$

 
$

 
$

 
$
(1,041
)
 
$
2,058

2019 Notes
2,877

 

 

 
(1,877
)
 
(1,000
)
 

2020 Notes
11,209

 

 

 
(2,330
)
 
(3,499
)
 
5,380

2022 Private Placement Notes
752

 

 

 

 
(150
)
 
602

2022 Notes
16,067

 

 

 

 
(3,268
)
 
12,799

2023 Notes
4,762

 

 

 

 
(840
)
 
3,922

Term Loan

 
10,275

 

 

 
(613
)
 
9,662

Total Deferred Financing Costs
$
38,766

 
$
10,275

 
$

 
$
(4,207
)
 
$
(10,411
)
 
$
34,423



 
Unamortized Deferred Financing Costs
 
Balance 12/31/2016
 
Additions
 
Refinances
 
Early Extinguishment
 
Amortized
 
Balance 12/31/2017
Revolving Credit Facility
$
4,420

 
$
399

 
$

 
$

 
$
(1,720
)
 
$
3,099

2019 Notes
11,693

 

 
(1,949
)
 
(4,667
)
 
(2,200
)
 
2,877

2020 Notes
15,053

 

 

 

 
(3,844
)
 
11,209

2022 Private Placement Notes
903

 

 

 

 
(151
)
 
752

2022 Notes
11,714

 
6,076

 
1,476

 

 
(3,199
)
 
16,067

2023 Notes

 
4,569

 
473

 

 
(280
)
 
4,762

Total Deferred Financing Costs
$
43,783

 
$
11,044

 
$

 
$
(4,667
)
 
$
(11,394
)
 
$
38,766



Revolving Credit Facility
On November 16, 2012, APX entered into a $200.0 million senior secured revolving credit facility, with a five year maturity. On March 6, 2015, APX amended and restated the credit agreement governing the revolving credit facility to provide for, among other things, (1) an increase in the aggregate commitments previously available to APX thereunder from $200.0 million to $289.4 million (“Revolving Commitments”) and (2) the extension of the maturity date with respect to certain of the previously available commitments. On August 10, 2017, APX further amended and restated the credit agreement governing the revolving credit facility to provide for, among other things, (1) an increase in the aggregate commitments previously available to the Company from $289.4 million to $324.3 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 (1)(a) under the Series A Revolving Commitments of approximately $267.0 million and Series D Revolving Commitments of approximately $15.4 million is currently 2.0% per annum and (b) under the Series B Revolving Commitments of approximately $21.2 million is currently 3.0% and (2)(a) the applicable margin for LIBOR rate-based borrowings (a) under the Series A Revolving Commitments, Series C Revolving Commitments, and Series D Revolving Commitments is currently 3.0% per annum and (b) under the Series B Revolving Commitments is currently 4.0%. 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 November 2017, previous commitments of $20.8 million under the Series C Revolving Commitments had expired. Outstanding borrowings under the amended and restated revolving credit facility are allocated on a pro-rata basis between each Series based on the total Revolving Commitments.
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 principal amount outstanding under the revolving credit facility will be due and payable in full on March 31, 2021.
As of December 31, 2018 there was no outstanding borrowings under the revolving credit facility. As of December 31, 2017, there was $3.0 million outstanding borrowings under the revolving credit facility. As of December 31, 2018, the Company had $289.8 million of availability under the revolving credit facility (after giving effect to $13.8 million of outstanding letters of credit and no borrowings).
The Company’s debt at December 31, 2018 and 2017 consisted of the following (in thousands):
 
 
December 31, 2018
 
Outstanding
Principal
 
Unamortized
Premium
(Discount)
 
Unamortized Deferred Financing Costs (1)
 
Net Carrying
Amount
8.75% Senior Notes due 2020
$
679,299

 
$
2,230

 
$
(5,380
)
 
$
676,149

8.875% Senior Secured Notes Due 2022
270,000

 
(2,122
)
 
(602
)
 
267,276

7.875% Senior Secured Notes Due 2022
900,000

 
20,178

 
(12,799
)
 
907,379

7.625% Senior Notes Due 2023
400,000

 

 
(3,922
)
 
396,078

Term Loan - noncurrent
799,875

 

 
(9,662
)
 
790,213

Total Long-Term Debt
3,049,174

 
20,286

 
(32,365
)
 
3,037,095

Term Loan - current
8,100

 

 

 
8,100

Total Debt
$
3,057,274

 
$
20,286

 
$
(32,365
)
 
$
3,045,195

 
 
December 31, 2017
 
Outstanding
Principal
 
Unamortized
Premium
(Discount)
 
Unamortized Deferred Financing Costs (1)
 
Net Carrying
Amount
Series D Revolving Credit Facility due 2019
$
3,000

 
$

 
$

 
$
3,000

Series A, B Revolving Credit Facilities due 2021
57,000

 

 

 
57,000

6.375% Senior Secured Notes due 2019
269,465

 

 
(2,877
)
 
266,588

8.75% Senior Notes due 2020
930,000

 
4,465

 
(11,209
)
 
923,256

8.875% Senior Secured Notes Due 2022
270,000

 
(2,559
)
 
(752
)
 
266,689

7.875% Senior Secured Notes Due 2022
900,000

 
24,593

 
(16,067
)
 
908,526

7.625% Senior Notes Due 2023
400,000

 

 
(4,762
)
 
395,238

Total Debt
$
2,829,465

 
$
26,499

 
$
(35,667
)
 
$
2,820,297



 
 
(1) Unamortized deferred financing costs related to the revolving credit facilities included in deferred financing costs, net on the consolidated balance sheets at December 31, 2018 and 2017 was $2.1 million and $3.1 million, respectively.
v3.19.2
Retail Installment Contract Receivables
3 Months Ended 12 Months Ended
Mar. 31, 2019
Dec. 31, 2018
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 condensed consolidated unaudited balance sheets.
The following table summarizes the RIC receivables (in thousands):
 
March 31, 2019
 
December 31, 2018
RIC receivables, gross
$
173,254

 
$
175,250

Deferred interest
(29,612
)
 
(34,163
)
RIC receivables, net of deferred interest
$
143,642

 
$
141,087

 
 
 
 
Classified on the condensed consolidated unaudited balance sheets as:
 
 
 
Accounts and notes receivable, net
$
35,370

 
$
32,185

Long-term notes receivables and other assets, net
108,272

 
108,902

RIC receivables, net
$
143,642

 
$
141,087


Activity in the deferred interest for the RIC receivables was as follows (in thousands):
 
Three months ended March 31, 2019
 
Twelve months ended December 31, 2018
Deferred interest, beginning of period
$
34,163

 
$
36,048

Write-offs, net of recoveries
(6,923
)
 
(26,360
)
Change in deferred interest on short-term and long-term RIC receivables
2,372

 
24,475

Deferred interest, end of period
$
29,612

 
$
34,163


The amount of RIC imputed interest income recognized in recurring and other revenue was $3.5 million and $3.3 million during the three months ended March 31, 2019 and 2018, respectively.
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 consolidated balance sheets.
The following table summarizes the installment receivables (in thousands):
 
December 31, 2018
 
December 31, 2017
RIC receivables, gross
$
175,250

 
$
131,024

Deferred interest
(34,163
)
 
(36,048
)
RIC receivables, net of deferred interest
$
141,087

 
$
94,976

 
 
 
 
Classified on the consolidated balance sheets as:
 
 
 
Accounts and notes receivable, net
$
32,185

 
$
16,469

Long-term notes receivables and other assets, net
108,902

 
78,507

RIC receivables, net
$
141,087

 
$
94,976


Activity in the deferred interest for the RIC receivables was as follows (in thousands):
 
For the Years Ended
 
December 31, 2018
 
December 31, 2017
Deferred interest, beginning of period
$
36,048

 
$

Write-offs, net of recoveries
(26,360
)
 
(6,055
)
Change in deferred interest on short-term and long-term RIC receivables
24,475

 
42,103

Deferred interest, end of period
$
34,163

 
$
36,048


During year ended December 31, 2018 and 2017, the amount of RIC imputed interest income recognized in recurring and other revenue was $14.9 million and $7.3 million, respectively.
v3.19.2
Balance Sheet Components
3 Months Ended 12 Months Ended
Mar. 31, 2019
Dec. 31, 2018
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, 2019
 
December 31, 2018
Prepaid expenses and other current assets
 
 
 
Prepaid expenses
$
12,984

 
$
7,183

Deposits
1,353

 
904

Other
791

 
3,362

Total prepaid expenses and other current assets
$
15,128

 
$
11,449

Capitalized contract costs
 
 
 
Capitalized contract costs
$
2,445,784

 
$
2,361,795

Accumulated amortization
(1,352,919
)
 
(1,246,020
)
Capitalized contract costs, net
$
1,092,865

 
$
1,115,775

Long-term notes receivables and other assets
 
 
 
RIC receivables, gross
$
137,884

 
$
143,065

RIC deferred interest
(29,612
)
 
(34,164
)
Security deposits
7,126

 
6,586

Investments
6,099

 
3,865

Other
299

 
467

Total long-term notes receivables and other assets, net
$
121,796

 
$
119,819

Accrued payroll and commissions
 
 
 
Accrued commissions
$
11,432

 
$
28,726

Accrued payroll
25,849

 
36,753

Total accrued payroll and commissions
$
37,281

 
$
65,479

Accrued expenses and other current liabilities
 
 
 
Accrued interest payable
$
55,157

 
$
28,885

Current portion of derivative liability
70,137

 
67,710

Service warranty accrual
8,825

 
8,813

Current portion of notes payable
8,100

 
8,100

Loss contingencies
2,131

 
3,131

Other
14,647

 
20,076

Total accrued expenses and other current liabilities
$
158,997

 
$
136,715

Balance Sheet Components
The following table presents material balance sheet component balances as of December 31, 2018 and December 31, 2017 (in thousands):
 
 
December 31,
 
2018
 
2017
Prepaid expenses and other current assets
 
 
 
Prepaid expenses
$
7,183

 
$
8,000

Deposits
904

 
1,596

Other
3,362

 
6,554

Total prepaid expenses and other current assets
$
11,449

 
$
16,150

Capitalized contract costs
 
Capitalized contract costs
$
2,361,795

 
$

Accumulated amortization
(1,246,020
)
 

Capitalized contract costs, net
$
1,115,775

 
$

Subscriber acquisition costs
 
Subscriber acquisition costs
$

 
$
1,837,388

Accumulated amortization

 
(528,830
)
Subscriber acquisition costs, net
$

 
$
1,308,558

Long-term notes receivables and other assets
 
RIC receivables, gross
$
143,065

 
$
114,556

RIC deferred interest
(34,164
)
 
(36,049
)
Security deposits
6,586

 
6,427

Investments
3,865

 
3,429

Other
467

 
360

Total long-term notes receivables and other assets, net
$
119,819

 
$
88,723

Accrued payroll and commissions
 
Accrued payroll
$
36,753

 
$
30,267

Accrued commissions
28,726

 
27,485

Total accrued payroll and commissions
$
65,479

 
$
57,752

Accrued expenses and other current liabilities
 
Accrued interest payable
$
28,885

 
$
28,737

Current portion of derivative liability
67,710

 
25,473

Service warranty accrual
8,813

 

Current portion of notes payable
8,100

 

Blackstone monitoring fee, a related party
4,793

 
933

Accrued taxes
5,351

 
4,585

Spectrum license obligation

 
3,861

Accrued payroll taxes and withholdings
5,097

 
3,185

Loss contingencies
3,131

 
2,156

Other
4,835

 
5,391

Total accrued expenses and other current liabilities
$
136,715

 
$
74,321

v3.19.2
Property Plant and Equipment
3 Months Ended 12 Months Ended
Mar. 31, 2019
Dec. 31, 2018
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, 2019
 
December 31, 2018
 
Estimated Useful
Lives
Vehicles
$
44,594

 
$
45,050

 
3 - 5 years
Computer equipment and software
55,459

 
53,891

 
3 - 5 years
Leasehold improvements
27,609

 
26,401

 
2 - 15 years
Office furniture, fixtures and equipment
19,918

 
19,532

 
7 years
Build-to-suit lease building

 
8,247

 
10.5 years
Construction in process
4,205

 
2,975

 
 
Property, plant and equipment, gross
151,785

 
156,096

 
 
Accumulated depreciation and amortization
(87,171
)
 
(82,695
)
 
 
Property, plant and equipment, net
$
64,614

 
$
73,401

 
 


Property, plant and equipment, net includes approximately $22.2 million and $26.2 million of assets under finance or capital lease obligations at March 31, 2019 and December 31, 2018, respectively, net of accumulated amortization of $23.2 million and $22.2 million, respectively. Depreciation and amortization expense on all property, plant and equipment was $5.9 million and $6.2 million for the three months ended March 31, 2019 and 2018, respectively. Amortization expense relates to assets under finance or capital leases and is included in depreciation and amortization expense.

As a result of implementing ASU 2016-02, effective January 1, 2019 the Company's build-to-suit leasing arrangement was considered a sale-leaseback and is classified as an operating lease. This resulted in a reduction to property, plant and equipment, net of $6.1 million and a reduction of $6.6 million related the financing lease obligation within accrued expenses and other current liabilities and other long-term obligations. See Note 12 "Leases" for additional information related to the impact of adopting ASU 2016-02.
Property Plant and Equipment
Property, plant and equipment consisted of the following (in thousands):
 
December 31,
 
Estimated
Useful Lives
 
2018
 
2017
 
Vehicles
$
45,050

 
$
42,008

 
3-5 years
Computer equipment and software
53,891

 
46,651

 
3-5 years
Leasehold improvements
26,401

 
20,783

 
2-15 years
Office furniture, fixtures and equipment
19,532

 
17,202

 
7 years
Build-to-suit lease building
8,247

 
8,268

 
10.5 years
Construction in process
2,975

 
4,299

 
 
Property, plant and equipment, gross
156,096

 
139,211

 
 
Accumulated depreciation and amortization
(82,695
)
 
(61,130
)
 
 
Property, plant and equipment, net
$
73,401

 
$
78,081

 
 

Property plant and equipment includes approximately $23.7 million and $26.2 million of assets under capital lease obligations, net of accumulated amortization of $22.2 million and $16.6 million at December 31, 2018 and 2017, respectively. Depreciation and amortization expense on all property plant and equipment was $25.0 million, $21.275 million and $16.8 million for the years ended December 31, 2018, 2017 and 2016, respectively. Amortization expense relates to assets under capital leases as included in depreciation and amortization expense.
In June 2016, the Company entered into a non-cancellable lease to occupy a new building constructed in Logan, UT as a location to further sales recruitment and training, as well as conduct research and development (the "Logan Facility"). Because of its involvement in certain aspects of the construction of the Logan Facility, per the terms of the lease, the Company was deemed the owner of the building for accounting purposes during the construction period. Accordingly, the Company recorded a build-to-suit lease asset and a corresponding build-to-suit lease liability during the construction period.
In April 2017, construction on the Logan Facility was completed and the Company commenced occupancy. In accordance with ASC 840-40 Sale-Leaseback Transactions, the building did not qualify for sale-leaseback treatment. As such, the Company retains the building asset and corresponding lease obligation on the balance sheet.
v3.19.2
Goodwill and Intangible Assets
3 Months Ended 12 Months Ended
Mar. 31, 2019
Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]    
Goodwill and Intangible Assets
Goodwill and Intangible Assets
Goodwill
As of March 31, 2019 and December 31, 2018, the Company had a goodwill balance of $835.4 million and $834.9 million, respectively. The change in the carrying amount of goodwill during the three months ended March 31, 2019 was the result of foreign currency translation adjustments.
Intangible assets, net
The following table presents intangible asset balances (in thousands):
 
 
March 31, 2019
 
December 31, 2018
 
 
 
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
$
965,670

 
$
(737,443
)
 
$
228,227

 
$
964,100

 
$
(717,648
)
 
$
246,452

 
10 years
2GIG 2.0 technology
17,000

 
(15,603
)
 
1,397

 
17,000

 
(15,292
)
 
1,708

 
8 years
Other technology
2,917

 
(1,771
)
 
1,146

 
2,917

 
(1,667
)
 
1,250

 
5 - 7 years
Space Monkey technology
7,100

 
(6,019
)
 
1,081

 
7,100

 
(5,756
)
 
1,344

 
6 years
Patents
12,245

 
(9,136
)
 
3,109

 
12,123

 
(8,415
)
 
3,708

 
5 years
Total definite-lived intangible assets:
$
1,004,932

 
$
(769,972
)
 
$
234,960

 
$
1,003,240

 
$
(748,778
)
 
$
254,462

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Indefinite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
IP addresses
564

 

 
564

 
564

 

 
564

 
 
Domain names
59

 

 
59

 
59

 

 
59

 
 
Total Indefinite-lived intangible assets
623

 

 
623

 
623

 

 
623

 
 
Total intangible assets, net
$
1,005,555

 
$
(769,972
)
 
$
235,583

 
$
1,003,863

 
$
(748,778
)
 
$
255,085

 
 

During the year ended December 31, 2016, Vivint Wireless entered into leasing agreements with Nextlink Wireless, LLC (“Nextlink”) for designated radio frequency spectrum in 40 mid-sized metropolitan markets. The lease term was for seven years, with an option to become the licensor of record with the Federal Communications Commission (“FCC”) with respect to the applicable spectrum licenses at the end of this term for a nominal fee. The Company acquired $31.3 million of spectrum licenses, measured using the present value of the lease payments, and recorded an intangible asset and a corresponding liability within other long-term obligations. While licenses are issued for only a fixed time, such licenses are subject to renewal by the FCC.
On January 10, 2018, Vivint Wireless and Verizon consummated the transactions contemplated by a termination agreement to which the parties agreed, among other things, to terminate the spectrum leases between Vivint Wireless and Nextlink, a subsidiary of Verizon, in exchange for a cash payment by Verizon to Vivint Wireless. The calculation of the gain recorded for the three months ended March 31, 2018 included cash proceeds of $55.0 million, extinguishment of the spectrum license liability of $27.9 million, offset by the write-off of the spectrum license asset in the amount of $31.3 million and regulatory costs associated with the sale of $1.2 million for a total net gain on sale of $50.4 million which is included in other income, net in the condensed consolidated statement of operations.
Amortization expense related to intangible assets was approximately $20.3 million and $22.7 million for the three months ended March 31, 2019 and 2018, respectively.
As of March 31, 2019, the remaining weighted-average amortization period for definite-lived intangible assets was 4.0 years. Estimated future amortization expense of intangible assets, excluding approximately $0.3 million in patents currently in process, is as follows as of March 31, 2019 (in thousands):
 
 
 
2019 - Remaining Period
$
59,216

2020
67,990

2021
58,709

2022
48,759

2023
28

Thereafter

Total estimated amortization expense
$
234,702

Goodwill and Intangible Assets
Goodwill
The changes in the carrying amount of goodwill for the years ended December 31, 2018 and 2017, were as follows (in thousands):
 
 
 
Balance as of January 1, 2017
$
835,233

Effect of Foreign Currency Translation
1,737

Balance as of December 31, 2017
836,970

Effect of Foreign Currency Translation
(2,115
)
Balance as of December 31, 2018
$
834,855


Intangible assets, net
The following table presents intangible asset balances as of December 31, 2018 and 2017 (in thousands):

 
December 31, 2018
 
December 31, 2017
 
 
 
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
$
964,100

 
$
(717,648
)
 
$
246,452

 
$
970,147

 
$
(637,780
)
 
$
332,367

 
10 years
2GIG 2.0 technology
17,000

 
(15,292
)
 
1,708

 
17,000

 
(13,274
)
 
3,726

 
8 years
Other technology
2,917

 
(1,667
)
 
1,250

 
2,917

 
(1,250
)
 
1,667

 
5 - 7 years
Space Monkey technology
7,100

 
(5,756
)
 
1,344

 
7,100

 
(4,066
)
 
3,034

 
6 years
Patents
12,123

 
(8,415
)
 
3,708

 
10,616

 
(5,835
)
 
4,781

 
5 years
Total definite-lived intangible assets:
1,003,240

 
(748,778
)
 
254,462

 
1,007,780

 
(662,205
)
 
345,575

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Indefinite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Spectrum licenses

 

 

 
31,253

 

 
31,253

 
 
IP addresses
564

 

 
564

 
564

 

 
564

 
 
Domain names
59

 

 
59

 
59

 

 
59

 
 
Total Indefinite-lived intangible assets
623

 

 
623

 
31,876

 

 
31,876

 
 
Total intangible assets, net
$
1,003,863

 
$
(748,778
)
 
$
255,085

 
$
1,039,656


$
(662,205
)
 
$
377,451

 
 


During the year ended December 31, 2016, Vivint Wireless entered into leasing agreements with Nextlink Wireless, LLC (“Nextlink”) for designated radio frequency spectrum in 40 mid-sized metropolitan markets. The lease term was for seven years, with an option to become the licensor of record with the Federal Communications Commission ("FCC") with respect to the applicable spectrum licenses at the end of this initial term for a nominal fee. The Company acquired $31.3 million of spectrum licenses, measured using the present value of the lease payments, and recorded an intangible asset and a corresponding liability within other long-term obligations. While licenses are issued for only a fixed time, such licenses are subject to renewal by the FCC.
On January 10, 2018, Vivint Wireless and Verizon consummated the transactions contemplated by a termination agreement to which the parties agreed, among other things, to terminate the spectrum leases between Vivint Wireless and Nextlink, a subsidiary of Verizon, in exchange for a cash payment by Verizon to Vivint Wireless. The calculation of the gain recorded included cash proceeds of $55.0 million, extinguishment of the spectrum license liability of $27.9 million, offset by the write-off of the spectrum license asset in the amount of $31.3 million and regulatory costs associated with the sale of $1.3 million for a total net gain on sale of $50.4 million which is included in other income, net in the consolidated statement of operations.
During the year ended December 31, 2018 and 2017, the Company added $1.7 million and $2.0 million of intangibles related to patents, respectively. Amortization expense related to intangible assets was approximately $90.9 million, $101.8 million and $116.9 million for the years ended December 31, 2018, 2017, and 2016, respectively.
As of December 31, 2018, the remaining weighted-average amortization period for definite-lived intangible assets was 3.9 years. Estimated future amortization expense of intangible assets, excluding approximately $0.3 million in patents currently in process, is as follows as of December 31, 2018 (in thousands):
 
 
 
2019
$
79,062

2020
67,807

2021
58,578

2022
48,674

2023
47

Thereafter
11

Total estimated amortization expense
$
254,179

v3.19.2
Financial Instruments
3 Months Ended 12 Months Ended
Mar. 31, 2019
Dec. 31, 2018
Fair Value Disclosures [Abstract]    
Financial Instruments
Financial Instruments
Cash, Cash Equivalents and Equity Securities
Cash equivalents and equity securities with readily available determinable fair values (“Corporate Securities”) are classified as level 1 assets, as they have readily available market prices in an active market. As of March 31, 2019 and December 31, 2018, the Company held an immaterial amount of money market funds. As of March 31, 2019 and December 31, 2018, the company held $5.4 million and $3.2 million, respectively, of Corporate Securities classified as level 1 investments.
The following tables set forth the Company’s cash and cash equivalents and Corporate Securities’ adjusted cost, gross unrealized gains, gross unrealized losses, gross realized gains, gross realized 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, 2019 and December 31, 2018 (in thousands):
 
March 31, 2019
 
Adjusted Cost
 
Unrealized Gains
 
Unrealized Losses
 
Fair Value
 
Cash and Cash Equivalents
 
Long-Term Notes Receivables and Other Assets, net
Cash
$
3,599

 
$

 
$

 
$
3,599

 
$
3,599

 
$

 
 
 
 
 
 
 
 
 
 
 
 
Level 1:
 
 
 
 
 
 
 
 
 
 
 
Money market funds
92

 

 

 
92

 
92

 

Corporate securities
3,181

 
2,212

 

 
5,393

 

 
5,393

Subtotal
3,273

 
2,212

 

 
5,485

 
92

 
5,393

 
 
 
 
 
 
 
 
 
 
 
 
Total
$
6,872

 
$
2,212

 
$

 
$
9,084

 
$
3,691

 
$
5,393

 
December 31, 2018
 
Adjusted Cost
 
Unrealized Gains
 
Unrealized Losses
 
Fair Value
 
Cash and Cash Equivalents
 
Long-Term Notes Receivables and Other Assets, net
Cash
$
6,681

 
$

 
$

 
$
6,681

 
$
6,681

 
$

 
 
 
 
 
 
 
 
 
 
 
 
Level 1:
 
 
 
 
 
 
 
 
 
 
 
Money market funds
6,092

 

 

 
6,092

 
6,092

 

Corporate securities
3,485

 

 
(304
)
 
3,181

 

 
3,181

Subtotal
9,577

 

 
(304
)
 
9,273

 
6,092

 
3,181

 
 
 
 
 
 
 
 
 
 
 
 
Total
$
16,258

 
$

 
$
(304
)
 
$
15,954

 
$
12,773

 
$
3,181



The Corporate Securities represents the Company's investment of $3.0 million in publicly traded common stock of a non-affiliated company (“investee”). During the three months ended March 31, 2019 and 2018, the Company recorded an unrealized gains of $2.2 million and $0.3 million, respectively, associated with the change in fair value of the investee's stock.

The carrying amounts of the Company’s accounts and notes receivable, accounts payable and accrued and other liabilities approximate their fair values.
Long-Term Debt
Components of long-term debt including the associated interest rates and related fair values are as follows (in thousands, except interest rates):
 
 
March 31, 2019
 
December 31, 2018
 
Stated Interest Rate
Issuance
 
Face Value
 
Estimated Fair Value
 
Face Value
 
Estimated Fair Value
 
2020 Notes
 
679,299

 
669,110

 
679,299

 
643,568

 
8.75
%
2022 Private Placement Notes
 
270,000

 
271,323

 
270,000

 
257,073

 
8.875
%
2022 Notes
 
900,000

 
904,410

 
900,000

 
855,000

 
7.875
%
2023 Notes
 
400,000

 
342,120

 
400,000

 
326,000

 
7.625
%
Term Loan
 
805,950

 
805,950

 
807,975

 
807,975

 
N/A
Total
 
$
3,055,249

 
$
2,992,913

 
$
3,057,274

 
$
2,889,616

 
 

The fair values of the 2020 notes, the 2022 private placement notes, the 2022 notes, the 2023 notes, all of which are fixed-rate debt considered Level 2 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
Under the Consumer Financing Program, the Company pays a monthly fee to a third-party financing provider based on the average daily outstanding balance of the installment loans and 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 obligations with the third-party financing provider under the Consumer Financing Program that are components of the derivative:
The Company pays a monthly fee based on the average daily outstanding balance of the installment loans
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 third-party financing provider for each component of the derivative.
The following table summarizes the fair value and the notional amount of the Company’s outstanding derivative instrument as of March 31, 2019 and December 31, 2018 (in thousands):
 
March 31, 2019
 
December 31, 2018
Consumer Financing Program Contractual Obligations:
 
 
 
Fair value
$
120,671

 
$
117,620

Notional amount
385,955

 
368,708

 
 
 
 
Classified on the condensed consolidated unaudited balance sheets as:
 
 
 
Accrued expenses and other current liabilities
70,137

 
67,710

Other long-term obligations
50,534

 
49,910

Total Consumer Financing Program Contractual Obligation
$
120,671

 
$
117,620

Changes in Level 3 Fair Value Measurements
The following table summarizes the change in the fair value of the Level 3 outstanding derivative liability instrument for the three months ended March 31, 2019 and the twelve months ended December 31, 2018 (in thousands):
 
Three months ended March 31, 2019
 
Twelve months ended December 31, 2018
Balance, beginning of period
$
117,620

 
$
46,496

Additions
16,480

 
93,095

Settlements
(14,856
)
 
(34,587
)
Losses included in earnings
1,427

 
12,616

Balance, end of period
$
120,671

 
$
117,620

Financial Instruments
Cash, Cash Equivalents and Equity Securities
Cash equivalents and equity securities with readily available determinable fair values (“Corporate Securities”) 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 and Corporate Securities’ adjusted cost, gross unrealized gains, gross unrealized losses, gross realized gains, gross realized 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 December 31, 2018 and 2017 (in thousands):
 
December 31, 2018
 
Adjusted Cost
 
Unrealized Gains
 
Unrealized Losses
 
Fair Value
 
Cash and Cash Equivalents
 
Long-Term Notes Receivables and Other Assets, net
Cash
$
6,681

 
$

 
$

 
$
6,681

 
$
6,681

 
$

 
 
 
 
 
 
 
 
 
 
 
 
Level 1:
 
 
 
 
 
 
 
 
 
 
 
Money market funds
6,092

 

 

 
6,092

 
6,092

 

Corporate securities
3,485

 

 
(304
)
 
3,181

 

 
3,181

Subtotal
9,577

 

 
(304
)
 
9,273

 
6,092

 
3,181

 
 
 
 
 
 
 
 
 
 
 
 
Total
$
16,258

 
$

 
$
(304
)
 
$
15,954

 
$
12,773

 
$
3,181


 
December 31, 2017
 
Adjusted Cost
 
Unrealized Gains
 
Unrealized Losses
 
Fair Value
 
Cash and Cash Equivalents
 
Long-Term Notes Receivables and Other Assets, net
Cash
$
3,866

 
$

 
$

 
$
3,866

 
$
3,866

 

 
 
 
 
 
 
 
 
 
 
 
 
Level 1:
 
 
 
 
 
 
 
 
 
 
 
Money market funds
6

 

 

 
6

 
6

 

Corporate securities
4,018

 

 
(1,315
)
 
2,703

 

 
2,703

Subtotal
4,024

 

 
(1,315
)
 
2,709

 
6

 
2,703

 
 
 
 
 
 
 
 
 
 
 
 
Total
$
7,890

 
$

 
$
(1,315
)
 
$
6,575

 
$
3,872

 
$
2,703



The Corporate Securities represents the Company's investment of $3.0 million in publicly traded common stock of a nonaffiliated company (“investee”). During the years ended December 31, 2018, 2017 and 2016 the Company recorded an unrealized loss of $0.3 million, an unrealized loss of $1.3 million and an unrealized gain of $1.0 million, respectively associated with the change in fair value of the investee's stock. As of December 31, 2018 the Company had no accumulated other comprehensive income associated with unrealized gains and losses for the change in fair value of the investment as a result of the adoption of ASU 2016-01. The balance of accumulated other comprehensive income associated with unrealized gains and losses for the change in fair value totaled net losses of $0.3 million at December 31, 2017.
The carrying amounts of the Company’s accounts and notes receivable, accounts payable and accrued and other liabilities approximate their fair values.
Components of the Company's debt including the associated interest rates and related fair values (in thousands, except interest rates) are as follows:
 
Issuance
 
December 31, 2018
 
December 31, 2017
 
Stated Interest
Rate
 
Face Value
 
Estimated Fair Value
 
Face Value
 
Estimated Fair Value
 
2019 Notes
 
$

 
$

 
$
269,465

 
$
273,507

 
6.375
%
2020 Notes
 
679,299

 
643,568

 
930,000

 
952,134

 
8.75
%
2022 Notes Private Placement Notes
 
270,000

 
257,073

 
270,000

 
276,486

 
8.875
%
2022 Notes
 
900,000

 
855,000

 
900,000

 
966,420

 
7.875
%
2023 Notes
 
400,000

 
326,000

 
400,000

 
425,000

 
7.625
%
Term Loan
 
807,975

 
807,975

 

 

 
N/A

Total
 
$
3,057,274

 
$
2,889,616

 
$
2,769,465

 
$
2,893,547

 



The fair value of the 2019 notes, 2020 notes, 2022 private placement notes, 2022 notes and the 2023 notes are fixed-rate debt and are considered Level 2 measurements as the value was determined using observable market inputs, such as current interest rates as well as prices observable from less active markets. 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
Under the Consumer Financing Program, the Company pays a monthly fee to a third-party financing provider based on the average daily outstanding balance of the installment loans and 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) loss, net in the Consolidated Statement of Operations. The following represent the contractual obligations with the third-party financing provider under the Consumer Financing Program that are components of the derivative:
The Company pays a monthly fee based on the average daily outstanding balance of the installment loans
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 third-party financing provider for each component of the derivative.
The following table summarizes the fair value and the notional amount of the Company’s outstanding derivative instrument as of December 31, 2018 and 2017 (in thousands):
 
December 31,
 
2018
 
2017
Consumer Financing Program Contractual Obligations:
 
 
 
Fair value
$
117,620

 
$
46,496

Notional amount
368,708

 
163,032

Classified on the consolidated balance sheets as:
 
 
 
Accrued expenses and other current liabilities
67,710

 
25,473

Other long-term obligations
49,910

 
21,023

Total Consumer Financing Program Contractual Obligation
$
117,620

 
$
46,496


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 years ended December 31, 2018 and 2017 (in thousands):
 
December 31,
 
2018
 
2017
Balance, beginning of period
$
46,496

 
$

Additions
93,095

 
44,913

Settlements
(34,587
)
 
(7,972
)
Losses included in earnings
12,616

 
9,555

Balance, end of period
$
117,620

 
$
46,496

v3.19.2
Income Taxes
3 Months Ended 12 Months Ended
Mar. 31, 2019
Dec. 31, 2018
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 benefit rate for the three months ended March 31, 2019 and 2018 was approximately 0.34% and 0.51%, respectively. Income tax expense for the three months ended March 31, 2019 was affected by year to date projected loss in Canada and estimated minimum state taxes in the US. Both the 2019 and 2018 effective tax rates differ from the statutory rate primarily due to the combination of not benefiting from expected pre-tax US losses, a result of changes to the valuation allowance, and recognizing current state income tax expense for minimum state taxes.
Significant judgment is required in determining the Company’s provision for income taxes, recording valuation allowances against deferred tax assets, and evaluating the Company’s uncertain tax positions. In evaluating the ability to realize its deferred tax assets, in full or in part, the Company considers all available positive and negative evidence, including past operating results, forecasted future earnings, and prudent and feasible tax planning strategies. Due to historical net losses incurred and the uncertainty of realizing the deferred tax assets, for all the periods presented, the Company has maintained a domestic valuation allowance against the deferred tax assets that remain after offset by domestic deferred tax liabilities, and the company currently anticipates recording a valuation allowance against net foreign deferred tax assets by the end of the current year.
Income Taxes
The Company files a consolidated federal income tax return with its wholly-owned subsidiaries.
The income tax (benefit) expense consisted of the following (in thousands):
 
 
Year ended December 31,
 
2018
 
2017
 
2016
Current income tax:
 
 
 
Federal
$

 
$

 
$

State
512

 
151

 
545

Foreign
(52
)
 
(24
)
 
95

Total
460

 
127

 
640

Deferred income tax:
 
 
 
Federal

 
(326
)
 

State

 
(53
)
 

Foreign
(2,071
)
 
1,330

 
(573
)
Total
(2,071
)
 
951

 
(573
)
Income tax (benefit) expense
$
(1,611
)
 
$
1,078

 
$
67


The following reconciles the tax expense computed at the statutory federal rate and the Company’s tax expense (in thousands):
 
 
Year ended December 31,
 
2018
 
2017
 
2016
Computed expected tax expense
$
(98,598
)
 
$
(139,100
)
 
$
(93,770
)
State income taxes, net of federal tax effect
404

 
65

 
360

Foreign income taxes
(690
)
 
(299
)
 
(949
)
Other reconciling items

 
(344
)
 
666

Permanent differences
4,406

 
2,008

 
1,688

Effect of Federal law change

 
166,876

 

Change in valuation allowance
92,867

 
(28,128
)
 
92,072

Income tax (benefit) expense
$
(1,611
)
 
$
1,078

 
$
67



The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities were as follows (in thousands) 
 
December 31,
 
2018
 
2017
Gross deferred tax assets:
 
Net operating loss carryforwards
$
591,244

 
$
591,619

Deferred subscriber income
113,103

 
72,389

Interest expense limitation
56,381

 

Accrued expenses and allowances
18,766

 
17,633

Purchased intangibles and deferred financing costs
17,788

 
15,191

Inventory reserves
4,688

 
6,662

Property and equipment

 
1,176

Research and development credits
41

 
41

Valuation allowance
(467,705
)
 
(304,509
)
Total
334,306

 
400,202

Gross deferred tax liabilities:
 
Deferred capitalized contract costs
(332,547
)
 
(408,610
)
Property and equipment
(2,242
)
 

Prepaid expenses
(613
)
 
(633
)
Total
(335,402
)
 
(409,243
)
Net deferred tax liabilities
$
(1,096
)
 
$
(9,041
)

The Company had net operating loss carryforwards as follows (in thousands):
 
 
December 31,
 
2018
 
2017
Net operating loss carryforwards:
 
 
 
Federal
$
2,405,380

 
$
2,355,153

States
1,656,333

 
1,715,004

Canada
19,753

 
27,326

Total
$
4,081,466

 
$
4,097,483


U.S. federal net operating loss carryforwards will begin to expire in 2026, if not used. State net operating loss carryforwards expire over different periods and some have already begun to expire. The Company had United States research and development credits of approximately $41,000 at December 31, 2018, and December 31, 2017, which begin to expire in 2030.
Canadian net operating loss carryforwards will begin to expire in 2029.
Realization of the Company’s federal and state net operating loss carryforwards and tax credits is dependent on generating sufficient taxable income prior to their expiration. Although a portion of these net operating loss carryforwards are subject to the provisions of Internal Revenue Code Section 382, the Company has not performed a formal study to determine the amount of any limitation. The use of the net operating loss carryforwards may have additional limitations resulting from future ownership changes or other factors under Section 382 of the Internal Revenue Code.
In December 2017, the SEC issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”), which provides guidance on accounting for the tax effects of Tax Reform. SAB 118 provides a measurement period that should not extend beyond one year from the enactment date for companies to complete the accounting relating to Tax Reform under ASC Topic 740. In accordance with SAB 118, to the extent that a company’s accounting for certain income tax effects of Tax Reform is incomplete, but it is able to determine a reasonable estimate, the company should report a provisional estimate in its financial statements. Where a reasonable estimate cannot be determined, a company should continue to apply ASC Topic 740 based on the provisions of the tax laws that were in effect immediately before the enactment of Tax Reform.
The SAB 118 period has closed and, based on its analysis of Tax Reform, the Company did not change its recorded provisional tax expense of $166.9 million for the year ended December 31, 2017, resulting from the remeasurement of its deferred tax balances due to the reduction in the U.S. corporate income tax rate from 35% to 21%. This expense was offset by a corresponding change in the valuation allowance, resulting in no change in net tax expense or benefit.
Additionally, the Company's analysis of the new requirement that certain income (i.e., GILTI) earned by foreign subsidiaries must be included currently in the gross income of the U.S. resulted in an inclusion amount of approximately $7.7 million in 2018. The Company has elected to treat taxes due on future inclusions in U.S. taxable income related to GILTI as a current-period expense when incurred.
At December 31, 2018 and 2017, the Company recorded a valuation allowance against its U.S. federal and state net deferred tax assets as it believes it is more likely than not that these benefits will not be realized. Significant judgment is required in determining the Company’s provision for income taxes, recording valuation allowances against net deferred tax assets and evaluating the Company’s uncertain tax positions. The Company has considered and weighed the available evidence, both positive and negative, to determine whether it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. Based on available information, management does not believe it is more likely than not that all of its deferred tax assets will be utilized. The Company recorded a valuation allowance for U.S. net deferred tax assets of approximately $467.7 million and $304.5 million at December 31, 2018 and 2017, respectively.

As of December 31, 2018, the Company's income tax returns for the tax years 2014 and later, remain subject to examination by the Internal Revenue Service and various state taxing authorities.
v3.19.2
Stock-Based Compensation and Equity
3 Months Ended 12 Months Ended
Mar. 31, 2019
Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]    
Stock-Based Compensation and Equity
Stock-Based Compensation and Equity
313 Incentive Units
The Company’s indirect parent, 313 Acquisition LLC (“313”), which is majority owned by Blackstone, has authorized the award of profits interests, representing the right to share a portion of the value appreciation on the initial capital contributions to 313 (“Incentive Units”). As of March 31, 2019, 84,132,816 Incentive Units had been awarded, and were outstanding, to current and former members of senior management and a board member, of which 42,169,456 were outstanding to the Company’s Chief Executive Officer and President. In June 2018, the Incentive Units and SARs (defined below) vesting terms were modified (“Modification”). Prior to the Modification, the Incentive Units were subject to time-based and performance-based vesting conditions, with (1) one-third subject to ratable time-based vesting over a five year period from the applicable vesting reference date and (2) two-thirds subject to the achievement of certain investment return thresholds by The Blackstone Group, L.P. and its affiliates (“Blackstone”). Pursuant to the Modification the Incentive Units are subject to time-based and performance-based vesting conditions, with (1) one-third subject to ratable time-based vesting over a five year period from the applicable vesting reference date, (2) one-third subject to the achievement of certain investment return thresholds by Blackstone and (3) one-third subject to ratable time-based vesting over a five year period from the applicable vesting reference date or June 2018 for those granted prior to the modification. The Company has not recorded any expense related to the performance-based portion of the awards, as the achievement of the vesting condition is not yet deemed probable. The fair value of stock-based awards is measured at the grant date, or the Modification date, and is recognized as expense over the employee’s requisite service period. The grant date fair value was primarily determined using a Monte Carlo simulation valuation approach with the following assumptions: expected volatility varies from 55% to 125%; expected exercise term between 3.96 and 6.00 years; and risk-free rates between 0.62% and 2.61%.

Vivint Stock Appreciation Rights
The Company’s subsidiary, Vivint Group, Inc. (“Vivint Group”), has awarded Stock Appreciation Rights (“SARs”) to various levels of key employees and board members, pursuant to an omnibus incentive plan. The purpose of the SARs is to attract and retain personnel and provide an opportunity to acquire an equity interest of Vivint Group. Prior to the Modification in June 2018, the SARs were subject to time-based and performance-based vesting conditions, with (1) one-third subject to ratable time-based vesting over a five year period from the applicable vesting reference date and (2) two-thirds subject to the achievement of certain investment return thresholds by Blackstone. Pursuant to the Modification the Incentive Units are subject to time-based and performance-based vesting conditions, with (1) one-third subject to ratable time-based vesting over a five year period from the applicable vesting reference date, (2) one-third subject to the achievement of certain investment return thresholds by Blackstone and (3) one-third subject to ratable time-based vesting over a five year period from the applicable vesting reference date or June 2018 for those granted prior to the modification. The Company has not recorded any expense related to the performance-based portion of the awards, as the achievement of the vesting condition is not yet deemed probable. In connection with this plan, 36,576,342 SARs were outstanding as of March 31, 2019. In addition, 53,621,891 SARs have been set aside for funding incentive compensation pools pursuant to long-term sales and installation employee incentive plans established by the Company.
The fair value of the Vivint Group awards is measured at the grant date, or the Modification date, and is recognized as expense over the employee’s requisite service period. The fair value is determined using a Black-Scholes option valuation model with the following assumptions: expected volatility varies from 55% to 125%, expected dividends of 0%; expected exercise term between 6.00 and 6.47 years; and risk-free rates between 0.61% and 2.61%. Due to the lack of historical exercise data, the Company used the simplified method in determining the estimated exercise term, for all Vivint Group awards.
Restricted Stock Units
In March 2019 and June 2018, the Company’s subsidiary, Vivint Group, awarded 236,111 and 360,000 Restricted Stock Units (“RSUs”), respectively, to certain board members, pursuant to an omnibus incentive plan. The purpose of the RSUs is to compensate board members for their board service and align their interests of those of the Company's shareholders. The RSUs are subject to a three year time-based ratable vesting period.
Stock-based compensation expense in connection with all stock-based awards is presented as follows (in thousands):
 
 
Three Months Ended March 31,
 
2019
 
2018
Operating expenses
$
43

 
$
18

Selling expenses
87

 
45

General and administrative expenses
727

 
141

Total stock-based compensation
$
857

 
$
204


The increase in total stock-based compensation for the three months ended March 31, 2019 was primarily due to the Modification in June 2018.
Stock-Based Compensation and Equity
313 Incentive Units
The Company’s indirect parent, 313 Acquisition LLC (“313”), which is wholly owned by the Investors, has authorized the award of profits interests, representing the right to share a portion of the value appreciation on the initial capital contributions to 313 (“Incentive Units”). As of December 31, 2018, a total of 85,362,836 Incentive Units had been awarded, and were outstanding, to current and former members of senior management and a board member, of which 42,169,456 were issued to the Company’s Chief Executive Officer and President. In June 2018, the Incentive Units and SARs (defined below) vesting terms were modified ("Modification"). Prior to the Modification, the Incentive Units were subject to time-based and performance-based vesting conditions, with (1) one-third subject to ratable time-based vesting over a five year period from the applicable vesting reference date and (2) two-thirds subject to the achievement of certain investment return thresholds by The Blackstone Group, L.P. and its affiliates (“Blackstone”). Pursuant to the Modification the Incentive Units are subject to time-based and performance-based vesting conditions, with (1) one-third subject to ratable time-based vesting over a five year period from the applicable vesting reference date, (2) one-third subject to the achievement of certain investment return thresholds by Blackstone and (3) one-third subject to ratable time-based vesting over a five year period from the applicable vesting reference date or June 2018 for those granted prior to the modification. The Company has not recorded any expense related to the performance-based portion of the awards, as the achievement of the vesting condition is not yet deemed probable. The fair value of stock-based awards is measured at the grant date, or the Modification date, and is recognized as expense over the employee’s requisite service period. The grant date fair value was determined using a Monte Carlo simulation valuation approach with the following assumptions: expected volatility varies from 55% to 125%; expected exercise term between 3.96 and 6.00 years; and risk-free rate between 0.61% and 2.61%.
A summary of the Incentive Unit activity for the years ended December 31, 2018 and 2017 is presented below:
 
 
Incentive Units
 
Weighted Average
Exercise Price
Per Share
 
Weighted Average
Remaining
Contractual
Life (Years)
 
Aggregate
Intrinsic Value
Outstanding, December 31, 2016
85,882,836

 
$
1.19

 
6.81
 
$

Forfeited
(70,000
)
 
1.30

 
 
 
 
Outstanding, December 31, 2017
85,812,836

 
1.19

 
5.81
 

Forfeited
(450,000
)
 
1.93

 
 
 
 
Outstanding, December 31, 2018
85,362,836

 
1.18

 
4.81
 

Unvested shares expected to vest after December 31, 2018
59,663,659

 
1.22

 
4.93
 

Exercisable at December 31, 2018
25,699,177

 
$
1.11

 
4.50
 
$


As of December 31, 2018, there was $10.7 million of unrecognized compensation expense related to outstanding Incentive Units, which will be recognized over a weighted-average period of 4.29 years. As of December 31, 2018 and 2017, the weighted average grant date fair value per share of the outstanding incentive units was $0.36 and $0.30, respectively.
Stock Appreciation Rights
The Company’s subsidiary, Vivint Group, Inc. (“Vivint Group”), has awarded Stock Appreciation Rights (“SARs”) to various levels of key employees and board members, pursuant to an omnibus incentive plan. The purpose of the SARs is to attract and retain personnel and provide an opportunity to acquire an equity interest of Vivint Group. Prior to the Modification in June 2018, the SARs were subject to time-based and performance-based vesting conditions, with (1) one-third subject to ratable time-based vesting over a five year period from the applicable vesting reference date and (2) two-thirds subject to the achievement of certain investment return thresholds by Blackstone. Pursuant to the Modification the Incentive Units are subject to time-based and performance-based vesting conditions, with (1) one-third subject to ratable time-based vesting over a five year period from the applicable vesting reference date, (2) one-third subject to the achievement of certain investment return thresholds by Blackstone and (3) one-third subject to ratable time-based vesting over a five year period from the applicable vesting reference date or June 2018 for those granted prior to the modification. The Company has not recorded any expense related to the performance-based portion of the awards, as the achievement of the vesting condition is not yet deemed probable. In connection with this plan, 38,011,879 SARs were outstanding as of December 31, 2018. In addition, 53,621,891 SARs have been set aside for funding incentive compensation pools pursuant to long-term sales and installation employee incentive plans established by the Company.
The fair value of the Vivint Group awards is measured at the grant date, or the Modification date, and is recognized as expense over the employee’s requisite service period. The fair value is determined using a Black-Scholes option valuation model with the following assumptions: expected volatility varies from 55% to 125%, expected dividends of 0%; expected exercise term between 6.00 and 6.50 years; and risk-free rates between 0.61% and 2.61%. Due to the lack of historical exercise data, the Company used the simplified method in determining the estimated exercise term, for all Vivint Group awards.

A summary of the Vivint Group SAR activity for the years ended December 31, 2018 and 2017 is presented below:
 
 
Stock Appreciation
Rights
 
Weighted Average
Exercise Price
Per Share
 
Weighted Average
Remaining
Contractual
Life (Years)
 
Aggregate
Intrinsic Value
Outstanding, December 31, 2016
21,993,158

 
$
0.96

 
8.23
 
$

Granted
13,250,640

 
1.74

 
 
 
 
Forfeited
(2,374,864
)
 
1.12

 
 
 
 
Exercised
(114,644
)
 
0.72

 
 
 
 
Outstanding, December 31, 2017
32,754,290

 
1.26

 
9.21
 

Granted
14,630,000

 
1.79

 
 
 
 
Forfeited
(9,255,137
)
 
1.31

 
 
 
 
Exercised
(117,274
)
 
0.89

 
 
 
 
Outstanding, December 31, 2018
38,011,879

 
1.46

 
8.07
 

Unvested shares expected to vest after December 31, 2018
33,813,668

 
1.51

 
8.28
 

Exercisable at December 31, 2018
4,198,211

 
$
1.02

 
6.30
 
$


As of December 31, 2018, there was $4.6 million of unrecognized compensation expense related to outstanding Vivint awards, which will be recognized over a weighted-average period of 4.40 years. As of December 31, 2018 and 2017, the weighted average grant date fair value per share of the outstanding SARs was $0.23 and $0.19, respectively.
The Company’s subsidiary, Vivint Wireless, has also awarded an immaterial amount of Wireless SARs to various employees. There were no Wireless SARs outstanding as of December 31, 2018 and the Company does not intend to issue any additional Wireless SARs.
Restricted Stock Units
In June 2018, the Company’s subsidiary, Vivint Group, awarded 360,000 Restricted Stock Units (“RSUs”) to certain board members, pursuant to an omnibus incentive plan. The purpose of the RSUs is to compensate board members for their board service and align their interests of those of the Company's shareholders. The RSUs are subject to a three year time-based ratable vesting period. All RSUs are expected to vest after December 31, 2018 and none are exercisable at December 31, 2018.
The fair value of the RSU awards is measured at the grant date, and is recognized as expense over the requisite service period. The fair value was determined using a Black-Scholes valuation model with the following assumptions: expected volatility of 95%, expected dividends of 0%; expected exercise term of 3 years; and a risk-free rate of 2.61%. As of December 31, 2018, there was $0.1 million of unrecognized compensation expense related to outstanding RSUs, which will be recognized over a period of 2.44 years. The grant date fair value per share of the outstanding SARs was $0.48.

Stock-based compensation expense in connection with all stock-based awards for the years ended December 31, 2018, 2017 and 2016 is allocated as follows (in thousands):
 
Year ended December 31,
 
2018
 
2017
 
2016
Operating expenses
$
129

 
$
65

 
$
68

Selling expenses
285

 
217

 
(127
)
General and administrative expenses
2,091

 
1,313

 
3,927

Total stock-based compensation
$
2,505

 
$
1,595

 
$
3,868



Total stock-based compensation increased in 2018, partially as a result of the Modification. Stock-based compensation expense presented in selling expenses was negative for the year ended December 31, 2016 due to a retrospective adjustment in the grant-date fair value of a series of stock-based awards. Stock-based compensation expense included in general and administrative expenses for the year ended December 31, 2016 included $2.2 million of compensation related to an equity repurchase by 313 from one of the Company's executives.

Capital Contribution

In April 2016, Parent completed the first installment of an issuance and sale to certain investors of a series of preferred stock and contributed the net proceeds from such issuance of $69.8 million to the Company as an equity contribution. In July 2016, Parent completed the final installment of the issuance and sale to certain investors of such series of preferred stock and, in August 2016, contributed the net proceeds from such issuance of $30.6 million to the Company as an equity contribution. Both issuances were private placements exempt from registration under the Securities Act.
During the year ended December 31, 2018, Parent contributed $4.7 million to the Company as a capital contribution. During the years ended December 31, 2018 and 2017, the Company returned capital to Parent of $3.1 million and $1.2 million, respectively.
v3.19.2
Commitments and Contingencies
3 Months Ended 12 Months Ended
Mar. 31, 2019
Dec. 31, 2018
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 general, litigation can be expensive and disruptive to normal business operations. Moreover, the results of legal proceedings are difficult to predict and the costs incurred in litigation can be substantial. The Company believes the amounts provided in its financial statements 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 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.
The Company regularly reviews outstanding legal claims and actions to determine if reserves for expected negative outcomes of such claims and actions are necessary. The Company had reserves for all such matters of approximately $2.1 million and $3.1 million as of March 31, 2019 and December 31, 2018, respectively. In conjunction with one of the settlements, the Company is obligated to pay certain future royalties, based on sales of future Products.
Operating Leases
The Company leases office and warehouse space and an aircraft under operating leases with related and unrelated parties expiring in various years through 2028. The leases require the Company to pay additional rent for increases in operating expenses and real estate taxes and contain renewal options. Total rent expense for all operating leases for the three months ended March 31, 2018 was $4.3 million.
Capital Leases
The Company also enters into certain capital leases with expiration dates through July 2022. On an ongoing basis, the Company enters into vehicle lease agreements under a Fleet Lease Agreement. The lease agreements are typically 36 month leases for each vehicle and the average remaining life for the fleet is 10 months, as of March 31, 2019. As of December 31, 2018, the capital lease obligation balance was $13.3 million.
See Note 12 "Leases" for additional information related to the impact of adopting Topic 842.
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 general, litigation can be expensive and disruptive to normal business operations. Moreover, the results of legal proceedings are difficult to predict and the costs incurred in litigation can be substantial. The Company believes the amounts provided in its financial statements 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 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.
The Company regularly reviews outstanding legal claims and actions to determine if reserves for expected negative outcomes of such claims and actions are necessary. The Company had reserves for all such matters of approximately $2.5 million and $2.2 million as of December 31, 2018 and 2017, respectively.
During the year ended December 31, 2017 the Company accrued $10.0 million related to the settlement of litigation with ADT Inc. included in accounts payable on the consolidated balance sheets. The Company paid the full amount in early 2018.
Operating Leases
The Company leases office and warehouse space, certain equipment, towers, wireless spectrum, software and an aircraft under operating leases with related and unrelated parties expiring in various years through 2028. The leases require the Company to pay additional rent for increases in operating expenses and real estate taxes and contain renewal options. Total rent expense for all operating leases for the years ended December 31, 2018, 2017 and 2016 was $16.5 million, $17.0 million and $16.0 million, respectively.
Capital Leases
The Company also enters into certain capital leases with expiration dates through May 2022. On an ongoing basis, the Company enters into vehicle lease agreements under a Fleet Lease Agreement. The lease agreements are typically 36 months leases for each vehicle and the average remaining life for the fleet is 19 months as of December 31, 2018. As of December 31, 2018 and 2017, the capital lease obligation balance was $13.3 million and $21.7 million, respectively.
Spectrum Licenses
During the year ended December 31, 2016, Vivint Wireless, Inc. (“Vivint Wireless”), an indirect wholly owned subsidiary of the Company, entered into leasing agreements with Nextlink Wireless, LLC (“Nextlink”) for designated radio frequency spectrum in 40 mid-sized metropolitan markets. In December 2017, Vivint Wireless entered into a Termination Agreement with Verizon Communications Inc. (“Verizon”) pursuant to which the parties agreed, among other things, to terminate certain spectrum leases, including the 40 aforementioned leasing agreements, between Vivint Wireless and Nextlink, a subsidiary of Verizon, in exchange for cash consideration. Subsequent to the year ended December 31, 2018, the Company consummated the transactions contemplated by the Termination Agreement with Verizon. See Note 18 for further discussion.

As of December 31, 2018, future minimum lease payments were as follows (in thousands):
 
 
Operating
 
Capital
 
Total
2019
$
16,709

 
$
8,193

 
$
24,902

2020
15,478

 
5,209

 
20,687

2021
14,926

 
363

 
15,289

2022
13,655

 
7

 
13,662

2023
13,701

 

 
13,701

Thereafter
28,824

 

 
28,824

Amounts representing interest

 
(459
)
 
(459
)
Total lease payments
$
103,293

 
$
13,313

 
$
116,606


In addition to the commitments mentioned above, the Company had other purchase obligations of $59.5 million as of December 31, 2018 that consisted of commitments related to software licenses, marketing activities, and other goods and services.
v3.19.2
Leases (Notes)
3 Months Ended
Mar. 31, 2019
Leases [Abstract]  
Leases
Leases
The Company has operating leases for corporate offices, warehouse facilities, research and development and other operating facilities, an aircraft, and other operating assets. The Company has finance leases for vehicles, office equipment and other warehouse equipment. The leases have remaining terms of 1 year to 9 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,
 
2019
Operating lease cost
$
4,298

 
 
Finance lease cost:
 
Amortization of right-of-use assets
$
1,376

Interest on lease liabilities
154

Total finance lease cost
$
1,530

Supplemental cash flow information related to leases was as follows (in thousands):
 
Three Months Ended March 31,
 
2019
Cash paid for amounts included in the measurement of lease liabilities:
 
Operating cash flows from operating leases
$
(4,375
)
Operating cash flows from finance leases
(154
)
Financing cash flows from finance leases
(2,136
)
 
 
Right-of-use assets obtained in exchange for lease obligations:
 
Operating leases
$
584

Finance leases
230


Supplemental balance sheet information related to leases was as follows (in thousands, except lease term and discount rate):
 
March 31, 2019
Operating Leases
 
Operating lease right-of-use assets
$
72,891

 
 
Current operating lease liabilities
$
11,749

Operating lease liabilities
71,964

Total operating lease liabilities
$
83,713

 
 
Finance Leases
 
Property, plant and equipment, gross
$
45,440

Accumulated depreciation
(23,205
)
Property, plant and equipment, net
$
22,235

 
 
Current finance lease liabilities
$
7,114

Finance lease liabilities
3,952

Total finance lease liabilities
$
11,066

 
 
Weighted Average Remaining Lease Term
 
Operating leases
7 years

Finance leases
1.5 years

Weighted Average Discount Rate
 
Operating leases
7
%
Finance leases
4
%

Maturities of lease liabilities were as follows (in thousands):
 
Operating Leases
 
Finance Leases
Year Ending December 31,
 
 
 
2019 (excluding the three months ended March 31, 2019)
$
13,163

 
$
5,827

2020
16,345

 
5,167

2021
15,649

 
384

2022
14,514

 
38

2023
14,553

 

Thereafter
32,404

 

Total lease payments
106,628

 
11,416

Less imputed interest
(22,915
)
 
(350
)
Total
$
83,713

 
$
11,066


As of March 31, 2019, the Company has an additional facility operating lease that has not yet commenced of $0.6 million. The operating lease will commence in fiscal year 2019 with a lease term of 5 years.
Leases
Leases
The Company has operating leases for corporate offices, warehouse facilities, research and development and other operating facilities, an aircraft, and other operating assets. The Company has finance leases for vehicles, office equipment and other warehouse equipment. The leases have remaining terms of 1 year to 9 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,
 
2019
Operating lease cost
$
4,298

 
 
Finance lease cost:
 
Amortization of right-of-use assets
$
1,376

Interest on lease liabilities
154

Total finance lease cost
$
1,530

Supplemental cash flow information related to leases was as follows (in thousands):
 
Three Months Ended March 31,
 
2019
Cash paid for amounts included in the measurement of lease liabilities:
 
Operating cash flows from operating leases
$
(4,375
)
Operating cash flows from finance leases
(154
)
Financing cash flows from finance leases
(2,136
)
 
 
Right-of-use assets obtained in exchange for lease obligations:
 
Operating leases
$
584

Finance leases
230


Supplemental balance sheet information related to leases was as follows (in thousands, except lease term and discount rate):
 
March 31, 2019
Operating Leases
 
Operating lease right-of-use assets
$
72,891

 
 
Current operating lease liabilities
$
11,749

Operating lease liabilities
71,964

Total operating lease liabilities
$
83,713

 
 
Finance Leases
 
Property, plant and equipment, gross
$
45,440

Accumulated depreciation
(23,205
)
Property, plant and equipment, net
$
22,235

 
 
Current finance lease liabilities
$
7,114

Finance lease liabilities
3,952

Total finance lease liabilities
$
11,066

 
 
Weighted Average Remaining Lease Term
 
Operating leases
7 years

Finance leases
1.5 years

Weighted Average Discount Rate
 
Operating leases
7
%
Finance leases
4
%

Maturities of lease liabilities were as follows (in thousands):
 
Operating Leases
 
Finance Leases
Year Ending December 31,
 
 
 
2019 (excluding the three months ended March 31, 2019)
$
13,163

 
$
5,827

2020
16,345

 
5,167

2021
15,649

 
384

2022
14,514

 
38

2023
14,553

 

Thereafter
32,404

 

Total lease payments
106,628

 
11,416

Less imputed interest
(22,915
)
 
(350
)
Total
$
83,713

 
$
11,066


As of March 31, 2019, the Company has an additional facility operating lease that has not yet commenced of $0.6 million. The operating lease will commence in fiscal year 2019 with a lease term of 5 years.
v3.19.2
Related Party Transactions
3 Months Ended 12 Months Ended
Mar. 31, 2019
Dec. 31, 2018
Related Party Transactions [Abstract]    
Related Party Transactions
Related Party Transactions
Transactions with Vivint Solar
The Company has negotiated and entered into a number of agreements with its sister company, Vivint Solar, Inc. (“Solar”). Some of those agreements related to Solar’s use of certain of the Company’s information technology and infrastructure services; however, Solar stopped using such services in July 2017. In August 2017, the Company entered into a sales dealer agreement with Solar, pursuant to which each company will act as a non-exclusive dealer for the other party to market, promote and sell each other’s products. The agreement has an initial term of two years and replaces substantially all of the activities being undertaken under the parties’ former marketing and customer relations agreement. The Company and Solar also agreed to extend the term of the non-solicitation provisions under an existing non-competition agreement to match the term of the sales dealer agreement. During the three months ended March 31, 2019 and 2018, the Company charged $2.4 million and $1.0 million, respectively, of net expenses to Solar in connection with these agreements. The balance due from Solar in connection with these agreements and other expenses paid on Solar’s behalf was immaterial at March 31, 2019 and December 31, 2018, respectively, and is included in prepaid expenses and other current assets in the accompanying condensed consolidated balance sheets.
Other Related-party Transactions
Prepaid expenses and other current assets at March 31, 2019 and December 31, 2018 included a receivable for $0.2 million and $1.8 million, respectively, from certain members of management in regards to their personal use of the corporate jet.
The Company incurred additional expenses of $0.4 million and $0.6 million during the three months ended March 31, 2019 and 2018, respectively, for other related-party transactions including contributions to the charitable organization Vivint Gives Back, legal fees, and other services. Accrued expenses and other current liabilities at March 31, 2019 and December 31, 2018, included a net payable associated with these related-party transactions of $0.1 million and $0.2 million, respectively.
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 “Merger”). In connection with the Merger, 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 $1.0 million and $1.2 million during the three months ended March 31, 2019 and 2018, respectively. Accrued expenses and other current liabilities at March 31, 2019 and December 31, 2018, included a liability to BMP in regards to the monitoring fee for $1.0 million and $4.8 million, respectively.
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, 2019 and 2018 the Company incurred no costs associated with such services.

An affiliate of Blackstone participated as one of the arrangers in the Term Loan in September 2018 and received approximately $0.9 million of total fees associated with this issuance.
    
In September 2018, GSO Capital Partners, an affiliate of Blackstone, participated as a lender in the Term Loan. As of March 31, 2019 and December 31, 2018, GSO Capital Partners held $79.3 million and $75.1 million, respectively, of outstanding aggregate principal of the Term Loan.

In September 2018, Vivint Smart Home, Inc. contributed $4.7 million to the Company as a capital contribution.     

From time to time, the Company does business with a number of other companies affiliated with Blackstone.

Transactions involving related parties cannot be presumed to be carried out at an arm’s-length basis.
Related Party Transactions
Transactions with Vivint Solar
The Company and Vivint Solar, Inc. (“Solar”) have entered into agreements under which the Company provided certain ongoing administrative services to Solar through September 2017 and the Sales Dealer Agreement (as defined below). During the year ended December 31, 2018, 2017 and 2016 the Company charged $17.3 million, $2.8 million and $4.6 million, respectively of net expenses to Solar in connection with these agreements. The balance due from Solar in connection with these agreements and other expenses paid on Solar’s behalf was immaterial at both December 31, 2018 and 2017.
Also in connection with Solar’s initial public offering in 2014, the Company entered into a number of agreements with Solar related to services and other support that it has provided and will provide to Solar including:
 
A Master Intercompany Framework Agreement which established 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 defined their current areas of business and their competitors, and agreed not to directly or indirectly engage in the other’s business for three years;
A Transition Services Agreement pursuant to which the Company agreed to 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 would, 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.
In 2016, the Company and Solar amended the Marketing and Customer Relations Agreement to update certain terms and conditions governing existing cross-marketing initiatives and to implement new cross-marketing initiatives including a pilot program with the purpose of exploring potential opportunities for each company to offer, sell and integrate the other company’s respective products and services with its standard product offering.
In 2017, the Company and Solar entered into a Sales Dealer Agreement (the “Sales Dealer Agreement”), pursuant to which each party will act as a non-exclusive dealer for the other party to market, promote and sell each other’s products. The agreement has an initial two-year term, which will be automatically renewed for successive one-year terms unless written notice of termination is provided by one of the parties to the other no less than 90 days prior to the end of the then current term. The products, territories and consideration that is payable by each party to the other will be determined in accordance with the agreement. The Sales Dealer Agreement governs and replaces substantially all of the activities that were previously undertaken under the Marketing and Customer Relations Agreement described above, including the pilot program. The Company and Solar also agreed to extend the term of the non-solicitation provisions under the existing Non-Competition Agreement to match the term of the Sales Dealer Agreement.
Other Related-party Transactions
The Company incurred additional expenses during the years ended December 31, 2018, 2017 and 2016 of approximately $2.7 million, $3.5 million, $4.2 million, respectively, for other related-party transactions including contributions to the charitable organization Vivint Gives Back, legal fees, and other services. Accrued expenses and other current liabilities at December 31, 2018 and 2017 included net payables associated with these related-party transactions of $0.2 million and $1.4 million, respectively.
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 “Merger”).
In connection with the Merger, 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 $4.1 million, $3.5 million and $3.7 million during the years ended December 31, 2018, 2017 and 2016, respectively. Accrued expenses and other current liabilities at December 31, 2018 and 2017 included a liability of $4.8 million and $0.9 million, respectively, to BMP in regards to the monitoring fee.
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 years ended December 31, 2018, 2017 and 2016 the Company incurred no costs associated with such services.
During the year ended December 31, 2018, Blackstone Advisory Partners L.P. (“BAP”), an affiliate of Blackstone, participated as one of the initial purchasers of the Term Loan in September 2018 and received fees at the time of closing of such issuances aggregating approximately $0.9 million.
During the year ended December 31, 2017, BAP participated as one of the initial purchasers of the 2022 notes in the February 2017 issuance and the 2023 notes in the August 2017 issuance and received fees at the time of closing of such issuances aggregating approximately $0.6 million.
During the year ended December 31, 2016, BAP participated as one of the initial purchasers of the 2022 notes in each of the May 2016 and August 2016 offerings and received fees at the time of closing of such issuances aggregating approximately $0.5 million.
In addition, GSO Capital Partners, an affiliate of Blackstone, is a participating lender in the Term Loan and as of December 31, 2018 had received in aggregate interest payments of approximately $0.9 million. As of December 31, 2018, GSO Capital Partners holds $75.1 million of outstanding aggregate principal of the Term Loan.
In September 2018, Vivint Smart Home, Inc. contributed $4.7 million to the Company as a capital contribution.

In April 2016, Parent completed the first installment of an issuance and sale to certain investors of a series of preferred stock and contributed the net proceeds from such issuance of $69.8 million to the Company as an equity contribution. In July 2016, Parent completed the final installment of the issuance and sale to certain investors of such series of preferred stock and, in August 2016, contributed the net proceeds from such issuance of $30.6 million to the Company as an equity contribution. Both issuances were private placements exempt from registration under the Securities Act.
The company incurred stock-based compensation expense of $2.2 million included in general and administrative expenses for the year ended December 31, 2016 related to an equity repurchase by 313 from one of the Company's executives.
Long-term notes receivables and other assets, includes amounts due for non-interest bearing advances made to employees that are expected to be repaid in excess of one year. Amounts due from employees as of both December 31, 2018 and 2017, amounted to approximately $0.3 million. As of December 31, 2018 and 2017, this amount was fully reserved.
Prepaid expenses and other current assets at December 31, 2018 and 2017 included a receivable for $1.8 million and $0.5 million, respectively, from certain members of management in regards to their personal use of the corporate jet.
From time to time, the Company does business with a number of other companies affiliated with Blackstone.
Transactions involving related parties cannot be presumed to be carried out at an arm’s-length basis.
v3.19.2
Employee Benefit Plan
3 Months Ended 12 Months Ended
Mar. 31, 2019
Dec. 31, 2018
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.
Since January 2018, participants in the 401(k) plans have been eligible for the Company's matching program. Under this matching program, the Company matches an employee’s contributions to the 401(k) savings plan dollar-for-dollar up to 1% of such employee’s eligible earnings and $0.50 for every $1.00 for the next 5% of such employee’s eligible earnings. The maximum match available under the 401(k) plan is 3.5% of the employee’s eligible earnings. For employees who have been employed by the Company for less than two years, matching contributions vest on the second anniversary of their date of hire. The Company's matching contributions to employees who have been employed by the Company for two years or more are fully vested.
Matching contributions that were made to the plans during the three months ended March 31, 2019 and 2018 totaled $1.9 million and $1.6 million, respectively.
Employee Benefit Plan
The Company offers eligible employees the opportunity to defer a percentage of their earned income into company-sponsored 401(k) plans.
The Company offers eligible employees the opportunity to contribute a percentage of their earned income into company-sponsored 401(k) plans.
Beginning in January 2018, participants in the 401(k) plans are eligible for the Company's matching program. Under this new matching program, the Company matches an employee’s contributions to the 401(k) savings plan dollar-for-dollar up to 1% of such employee’s eligible earnings and $0.50 for every $1.00 for the next 5% of such employee’s eligible earnings. The maximum match available under the 401(k) plan is 3.5% of the employee’s eligible earnings. For employees who have been employed by the Company for less than two years, matching contributions vest on the second anniversary of their date of hire. The Company's matching contributions to employees who have been employed by the Company for two years or more are fully vested.
Matching contributions that were made to the plans during the year ended December 31, 2018 totaled $6.0 million. No matching contributions were made to the plans for the years ended December 31, 2017 and 2016.
v3.19.2
Restructuring and Asset Impairment Charges
3 Months Ended 12 Months Ended
Mar. 31, 2019
Dec. 31, 2018
Restructuring and Related Activities [Abstract]    
Restructuring and Asset Impairment Charges
Restructuring and Asset Impairment Charges
In July 2018, 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 second and third quarters of 2018, with the remainder by the end of 2018. 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.
As part of these initiatives, the Company and Best Buy agreed in principle to end the co-branded Best Buy Smart Home by Vivint arrangement, which resulted in the elimination of in-store sales positions. In addition, the Company eliminated other general and administrative positions.
The following table presents accrued restructuring activity for the three months ended March 31, 2019 and the twelve months ended December 31, 2018 (in thousands):

 
Contract
termination
costs
 
Employee severance
and termination
benefits
 
Total
Accrued restructuring balance as of December 31, 2017
$
558

 
$

 
$
558

Restructuring expenses

 
4,683

 
4,683

Cash payments
(91
)
 
(4,341
)
 
(4,432
)
Accrued restructuring balance as of December 31, 2018
467

 
342

 
809

Cash payments
(23
)
 
(257
)
 
(280
)
Accrued restructuring balance as of March 31, 2019
$
444

 
$
85

 
$
529


Contract termination costs represent ongoing contractual commitments related to the 2015 restructuring of the Company's Wireless Internet Business. Additional charges may be incurred in the future for facility-related or other restructuring activities as the Company continues to align resources to meet the needs of the business.
Restructuring and Asset Impairment Charges

Restructuring
During the year ended December 31, 2018, 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 second and third quarters of 2018, with the remainder by the end of 2018. 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.
As part of these initiatives, the Company and Best Buy agreed in principle to end the co-branded Best Buy Smart Home by Vivint arrangement ("Best Buy Agreement"), which resulted in the elimination of in-store sales positions. In addition, the Company eliminated other general and administrative positions. These actions resulted in one-time cash employee severance and termination benefits expenses of $4.7 million during the year ended December 31, 2018. The Company formally terminated its relationship with Best Buy in December 2018 and agreed to pay a termination fee of $5.5 million. The difference between the termination fee and all previously recorded liabilities relating to the Company's Best Buy Agreement was recorded as a reduction to capitalized contract costs.
During the year ended December 31, 2016, the Company sold all of its New Zealand and Puerto Rico contracts and recorded the impact of these transactions in restructuring and asset impairment. The calculation of the net loss recorded related to the 2016 Contract Sales included the expensing of all unamortized deferred subscriber acquisition costs associated with these subscriber accounts in the amount of $7.6 million, the realization of outstanding amounts of accumulated other comprehensive loss associated with the New Zealand foreign currency translation process of $1.1 million upon the substantial sale of the subsidiary, offset by cash proceeds of $6.2 million for a total net loss on the 2016 Contract Sales of $2.6 million.
Restructuring and asset impairment charges were as follows (in thousands):
 
 
Year ended December 31,
 
2018
 
2017
 
2016
Wireless restructuring recoveries:
 
 
 
 
 
Asset recoveries
$

 
$

 
$
(710
)
Contract termination recoveries

 

 
(751
)
Employee severance and termination benefits recoveries

 

 
(77
)
Total wireless restructuring recoveries

 

 
(1,538
)
Loss on subscriber contract sales

 

 
2,551

Employee severance and termination benefits charges
4,683

 

 

Total restructuring and asset impairment charges
$
4,683

 
$

 
$
1,013


The following table presents accrued restructuring activity for the years ended December 31, 2018 and 2017.
 
Asset impairments
 
Contract
termination costs
 
Employee severance and
termination benefits
 
Total
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

Cash payments

 
(91
)
 

 
(91
)
Accrued restructuring balance as of December 31, 2017

 
558

 

 
558

Restructuring expenses

 

 
4,683

 
4,683

Cash payments

 
(91
)
 
(4,341
)
 
(4,432
)
Accrued restructuring balance as of December 31, 2018
$

 
$
467

 
$
342

 
$
809


Accrued restructuring at December 31, 2018 is included in current liabilities within accrued expenses and other current liabilities of $0.4 million and in long-term liabilities within other long-term obligations of $0.4 million.
Contract termination costs represent ongoing contractual commitments related to the 2015 restructuring of the Company's Wireless Internet Business. Additional charges may be incurred in the future for facility-related or other restructuring activities as the Company continues to align resources to meet the needs of the business.
v3.19.2
Segment Reporting and Business Concentrations
3 Months Ended 12 Months Ended
Mar. 31, 2019
Dec. 31, 2018
Segment Reporting [Abstract]    
Segment Reporting and Business Concentrations
Segment Reporting and Business Concentrations
For the three months ended March 31, 2019 and 2018, the Company conducted business through one operating segment, Vivint. The Company primarily operated in two geographic regions: United States and Canada. Revenues disaggregated by geographic region were as follows (in thousands):

 
  
United States
 
Canada
 
Total
Revenue from external customers
  
 
 
 
 
 
Three months ended March 31, 2019
  
$
258,436

 
$
17,813

 
$
276,249

Three months ended March 31, 2018
  
228,542

 
18,055

 
246,597

Segment Reporting and Business Concentrations

For the years ended December 31, 2018, 2017 and 2016, the Company conducted business through one operating segment, Vivint. Historically, the Company primarily operated in three geographic regions: United States, Canada and New Zealand. During the year ended December 31, 2016, the Company completed the 2016 Contract Sales and ceased operations in New Zealand. Historically, the Company's operations in New Zealand were considered immaterial and reported in conjunction with the United States. Revenues by geographic region were as follows (in thousands):

 
United States
 
Canada
 
Total
Revenue from external customers
 
 
 
 
 
Year ended December 31, 2018
$
977,877

 
$
72,564

 
$
1,050,441

Year ended December 31, 2017
$
816,026

 
$
65,957

 
$
881,983

Year ended December 31, 2016
$
700,471

 
$
57,436

 
$
757,907

v3.19.2
Guarantor and Non-Guarantor Supplemental Financial Information
3 Months Ended 12 Months Ended
Mar. 31, 2019
Dec. 31, 2018
Guarantor And Non Guarantor Supplemental Financial Information [Abstract]    
Guarantor and Non-Guarantor Supplemental Financial Information
Guarantor and Non-Guarantor Supplemental Financial Information
The Notes were issued by APX and are fully and unconditionally guaranteed, jointly and severally by Holdings and each of APX’s existing and future material wholly-owned U.S. restricted subsidiaries. APX’s existing and future foreign subsidiaries are not expected to guarantee the Notes.
Presented below is the condensed consolidating financial information of APX, subsidiaries of APX that are guarantors (the “Guarantor Subsidiaries”), and APX’s subsidiaries that are not guarantors (the “Non-Guarantor Subsidiaries”) as of March 31, 2019 and December 31, 2018 and for the three months ended March 31, 2019 and 2018. The unaudited condensed consolidating financial information reflects the investments of APX in the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries using the equity method of accounting.





Supplemental Condensed Consolidating Balance Sheet
March 31, 2019
(in thousands)
(unaudited)

 
Parent
 
APX
Group, Inc.
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
 
Current assets
$

 
$
2,919

 
$
335,398

 
$
119,909

 
$
(289,784
)
 
$
168,442

Property, plant and equipment, net

 

 
64,188

 
426

 

 
64,614

Capitalized contract costs, net

 

 
1,027,364

 
65,501

 

 
1,092,865

Deferred financing costs, net

 
1,797

 

 

 

 
1,797

Investment in subsidiaries

 
1,650,064

 

 

 
(1,650,064
)
 

Intercompany receivable

 

 
6,303

 

 
(6,303
)
 

Intangible assets, net

 

 
218,194

 
17,389

 

 
235,583

Goodwill

 

 
809,678

 
25,726

 

 
835,404

Operating lease right-of-use assets

 

 
72,661

 
230

 

 
72,891

Long-term notes receivables and other assets

 
106

 
104,486

 
17,310

 
(106
)
 
121,796

Total Assets
$

 
$
1,654,886

 
$
2,638,272

 
$
246,491

 
$
(1,946,257
)
 
$
2,593,392

Liabilities and Stockholders’ (Deficit) Equity
 
 
 
 
 
 
 
 
 
 
 
Current liabilities
$

 
$
63,260

 
$
558,398

 
$
192,835

 
$
(289,784
)
 
$
524,709

Intercompany payable

 

 

 
6,303

 
(6,303
)
 

Notes payable and revolving credit facility, net of current portion

 
3,075,990

 

 

 

 
3,075,990

Finance lease obligations, net of current portion

 

 
3,952

 

 

 
3,952

Deferred revenue, net of current portion

 

 
309,896

 
16,735

 

 
326,631

Operating lease liabilities

 

 
71,878

 
86

 

 
71,964

Other long-term obligations

 

 
73,043

 
347

 

 
73,390

Accumulated losses of investee, net
1,484,364

 
 
 
 
 
 
 
(1,484,364
)
 

Deferred income tax liability

 

 
106

 
1,120

 
(106
)
 
1,120

Total (deficit) equity
(1,484,364
)
 
(1,484,364
)
 
1,620,999

 
29,065

 
(165,700
)
 
(1,484,364
)
Total liabilities and stockholders’ (deficit) equity
$

 
$
1,654,886

 
$
2,638,272

 
$
246,491

 
$
(1,946,257
)
 
$
2,593,392









Supplemental Condensed Consolidating Balance Sheet
December 31, 2018
(in thousands)
 
 
Parent
 
APX
Group, Inc.
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
 
Current assets
$

 
$
12,951

 
$
269,770

 
$
103,451

 
$
(262,674
)
 
$
123,498

Property, plant and equipment, net

 

 
72,937

 
464

 

 
73,401

Capitalized contract costs, net

 

 
1,047,532

 
68,243

 

 
1,115,775

Deferred financing costs, net

 
2,058

 

 

 

 
2,058

Investment in subsidiaries

 
1,662,367

 

 

 
(1,662,367
)
 

Intercompany receivable

 

 
6,303

 

 
(6,303
)
 

Intangible assets, net

 

 
236,677

 
18,408

 

 
255,085

Goodwill

 

 
809,678

 
25,177

 

 
834,855

Long-term notes receivables and other assets

 
106

 
102,695

 
17,124

 
(106
)
 
119,819

Total Assets
$

 
$
1,677,482

 
$
2,545,592

 
$
232,867

 
$
(1,931,450
)
 
$
2,524,491

Liabilities and Stockholders’ (Deficit) Equity
 
 
 
 
 
 
 
 
 
 
 
       Current liabilities
$

 
$
36,988

 
$
507,063

 
$
182,159

 
$
(262,674
)
 
$
463,536

Intercompany payable

 

 

 
6,303

 
(6,303
)
 

Notes payable and revolving credit facility, net of current portion

 
3,037,095

 

 

 

 
3,037,095

Capital lease obligations, net of current portion

 

 
5,570

 
1

 

 
5,571

Deferred revenue, net of current portion

 

 
306,653

 
16,932

 

 
323,585

Accumulated Losses of Investee, net
1,396,601

 


 


 


 
(1,396,601
)
 

Other long-term obligations

 

 
90,209

 

 

 
90,209

Deferred income tax liability

 

 
106

 
1,096

 
(106
)
 
1,096

Total (deficit) equity
(1,396,601
)
 
(1,396,601
)
 
1,635,991

 
26,376

 
(265,766
)
 
(1,396,601
)
Total liabilities and stockholders’ (deficit) equity
$

 
$
1,677,482

 
$
2,545,592

 
$
232,867

 
$
(1,931,450
)
 
$
2,524,491






Supplemental Condensed Consolidating Statements of Operations and Comprehensive Loss
For the Three Months Ended March 31, 2019
(in thousands)
(unaudited)
 
 
Parent
 
APX
Group, Inc.
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Revenues
$

 
$

 
$
263,539

 
$
12,912

 
$
(202
)
 
$
276,249

Costs and expenses

 

 
291,509

 
12,920

 
(202
)
 
304,227

Loss from operations

 

 
(27,970
)
 
(8
)
 

 
(27,978
)
Loss from subsidiaries
(89,156
)
 
(25,981
)
 

 

 
115,137

 

Other expense (income), net

 
63,175

 
(52
)
 
(1,644
)
 

 
61,479

(Loss) income before income tax expenses
(89,156
)
 
(89,156
)
 
(27,918
)
 
1,636

 
115,137

 
(89,457
)
Income tax expense (benefit)

 

 
182

 
(483
)
 

 
(301
)
Net (loss) income
(89,156
)
 
(89,156
)
 
(28,100
)
 
2,119

 
115,137

 
(89,156
)
Other comprehensive loss, net of tax effects:
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income
(89,156
)
 
(89,156
)
 
(28,100
)
 
2,119

 
115,137

 
(89,156
)
Foreign currency translation adjustment
570

 
570

 

 
570

 
(1,140
)
 
570

Total other comprehensive income
570


570

 

 
570

 
(1,140
)
 
570

Comprehensive (loss) income
$
(88,586
)
 
$
(88,586
)
 
$
(28,100
)
 
$
2,689

 
$
113,997

 
$
(88,586
)



Supplemental Condensed Consolidating Statements of Operations and Comprehensive Loss
For the Three Months Ended March 31, 2018
(in thousands)
(unaudited)
 
 
Parent
 
APX
Group, Inc.
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Revenues
$

 
$

 
$
233,788

 
$
13,465

 
$
(656
)
 
$
246,597

Costs and expenses

 

 
305,221

 
13,663

 
(656
)
 
318,228

(Loss) income from operations

 

 
(71,433
)
 
(198
)
 

 
(71,631
)
Loss from subsidiaries
(84,717
)
 
(26,320
)
 

 

 
111,037

 

Other expense (income), net

 
58,397

 
(46,970
)
 
2,092

 

 
13,519

Loss before income tax expenses
(84,717
)
 
(84,717
)
 
(24,463
)
 
(2,290
)
 
111,037

 
(85,150
)
Income tax expense (benefit)

 

 
172

 
(605
)
 

 
(433
)
Net loss
(84,717
)
 
(84,717
)
 
(24,635
)
 
(1,685
)
 
111,037

 
(84,717
)
Other comprehensive loss, net of tax effects:

 

 

 

 

 

Net loss
(84,717
)
 
(84,717
)
 
(24,635
)
 
(1,685
)
 
111,037

 
(84,717
)
Foreign currency translation adjustment
(659
)
 
(659
)
 

 
(659
)
 
1,318

 
(659
)
Total other comprehensive loss
(659
)
 
(659
)
 

 
(659
)
 
1,318

 
(659
)
Comprehensive loss
$
(85,376
)
 
$
(85,376
)
 
$
(24,635
)
 
$
(2,344
)
 
$
112,355

 
$
(85,376
)



























Supplemental Condensed Consolidating Statements of Cash Flows
For the Three Months Ended March 31, 2019
(in thousands)
(unaudited)

 
Parent
 
APX
Group, Inc.
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
 
 
Net cash (used in) provided by operating activities
$

 
$

 
$
(43,058
)
 
$
41

 
$

 
$
(43,017
)
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures

 

 
(1,391
)
 

 

 
(1,391
)
Proceeds from sale of capital assets

 

 
(51
)
 

 

 
(51
)
Investment in subsidiary
(118
)
 
(46,487
)
 

 

 
46,605

 

Acquisition of intangible assets

 

 
(369
)
 

 

 
(369
)
Net cash used in investing activities
(118
)
 
(46,487
)
 
(1,811
)
 

 
46,605

 
(1,811
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 
Repayment on notes payable

 
(2,025
)
 

 

 

 
(2,025
)
Borrowings from revolving credit facility

 
40,000

 

 

 

 
40,000

Proceeds from capital contribution

 

 
46,369

 

 
(46,369
)
 

Repayments of finance lease obligations

 

 
(2,064
)
 
(72
)
 

 
(2,136
)
Return of capital
118

 
118

 
(118
)
 

 
(236
)
 
(118
)
Net cash provided by (used in) financing activities
118

 
38,093

 
44,187

 
(72
)
 
(46,605
)
 
35,721

Effect of exchange rate changes on cash

 

 

 
25

 

 
25

Net decrease in cash and cash equivalents

 
(8,394
)
 
(682
)
 
(6
)
 

 
(9,082
)
Cash and cash equivalents:
 
 
 
 
 
 
 
 
 
 
 
Beginning of period

 
11,130

 
682

 
961

 

 
12,773

End of period
$

 
$
2,736

 
$

 
$
955

 
$

 
$
3,691


Supplemental Condensed Consolidating Statements of Cash Flows
For the Three Months Ended March 31, 2018
(in thousands)
(unaudited)
 
 
Parent
 
APX
Group, Inc.
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
 
 
Net cash (used in) provided by operating activities
$

 
$

 
$
(59,159
)
 
$
(423
)
 
$

 
$
(59,582
)
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures

 

 
(6,407
)
 

 

 
(6,407
)
Investment in subsidiary
966

 
(16,450
)
 

 

 
15,484

 

Acquisition of intangible assets

 

 
(849
)
 

 

 
(849
)
Proceeds from sale of intangibles

 

 
53,693

 

 

 
53,693

Proceeds from sale of capital assets

 

 
149

 

 

 
149

Net cash provided by (used in) investing activities
966

 
(16,450
)
 
46,586

 

 
15,484

 
46,586

Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 
Borrowings from revolving credit facility

 
57,000

 

 

 

 
57,000

Repayments on revolving credit facility

 
(40,000
)
 

 

 

 
(40,000
)
Proceeds from capital contributions

 

 
17,416

 

 
(17,416
)
 

Repayments of capital lease obligations

 

 
(3,305
)
 
(113
)
 

 
(3,418
)
Return of capital
(966
)
 
(966
)
 
(966
)
 

 
1,932

 
(966
)
Net cash (used in) provided by financing activities
(966
)
 
16,034

 
13,145

 
(113
)
 
(15,484
)
 
12,616

Effect of exchange rate changes on cash

 

 

 
(19
)
 

 
(19
)
Net (decrease) increase in cash and cash equivalents

 
(416
)
 
572

 
(555
)
 

 
(399
)
Cash and cash equivalents:
 
 
 
 
 
 
 
 
 
 
 
Beginning of period

 
3,661

 
(572
)
 
783

 

 
3,872

End of period
$

 
$
3,245

 
$

 
$
228

 
$

 
$
3,473

Guarantor and Non-Guarantor Supplemental Financial Information
The Notes were issued by APX and are fully and unconditionally guaranteed, jointly and severally by Holdings and each of APX’s existing and future material wholly-owned U.S. restricted subsidiaries. APX’s existing and future foreign subsidiaries are not expected to guarantee the Notes.
Presented below is the consolidating financial information of APX, subsidiaries of APX that are guarantors (the “Guarantor Subsidiaries”), and APX’s subsidiaries that are not guarantors (the “Non-Guarantor Subsidiaries”) as of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016. The audited consolidating financial information reflects the investments of APX in the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries using the equity method of accounting.


Condensed Consolidating Balance Sheet
December 31, 2018
(In thousands)
 
 
Parent
 
APX
Group, Inc.
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
 
Current assets
$

 
$
12,951

 
$
269,770

 
$
103,451

 
$
(262,674
)
 
$
123,498

Property and equipment, net

 

 
72,937

 
464

 

 
73,401

Capitalized contract costs, net

 

 
1,047,532

 
68,243

 

 
1,115,775

Deferred financing costs, net

 
2,058

 

 

 

 
2,058

Investment in subsidiaries

 
1,662,367

 

 

 
(1,662,367
)
 

Intercompany receivable

 

 
6,303

 

 
(6,303
)
 

Intangible assets, net

 

 
236,677

 
18,408

 

 
255,085

Goodwill

 

 
809,678

 
25,177

 

 
834,855

Long-term notes receivables and other assets, net

 
106

 
102,695

 
17,124

 
(106
)
 
119,819

Total Assets
$

 
$
1,677,482

 
$
2,545,592

 
$
232,867

 
$
(1,931,450
)
 
$
2,524,491

Liabilities and Stockholders’ (Deficit) Equity
 
 
 
 
 
 
 
 
 
 
 
Current liabilities
$

 
$
36,988

 
$
507,063

 
$
182,159

 
$
(262,674
)
 
$
463,536

Intercompany payable

 

 

 
6,303

 
(6,303
)
 

Notes payable and revolving line of credit, net of current portion

 
3,037,095

 

 

 

 
3,037,095

Capital lease obligations, net of current portion

 

 
5,570

 
1

 

 
5,571

Deferred revenue, net of current portion

 

 
306,653

 
16,932

 

 
323,585

Accumulated losses of investee
1,396,601

 


 


 


 
(1,396,601
)
 

Other long-term obligations

 

 
90,209

 

 

 
90,209

Deferred income tax liability

 

 
106

 
1,096

 
(106
)
 
1,096

Total (deficit) equity
(1,396,601
)
 
(1,396,601
)
 
1,635,991

 
26,376

 
(265,766
)
 
(1,396,601
)
Total liabilities and stockholders’ (deficit) equity
$

 
$
1,677,482

 
$
2,545,592

 
$
232,867

 
$
(1,931,450
)
 
$
2,524,491

















Condensed Consolidating Balance Sheet
December 31, 2017
(In thousands)
 
 
Parent
 
APX
Group, Inc.
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
 
Current assets
$

 
$
4,150

 
$
284,293

 
$
49,935

 
$
(162,413
)
 
$
175,965

Property and equipment, net

 

 
77,345

 
736

 

 
78,081

Subscriber acquisition costs, net

 

 
1,214,678

 
93,880

 

 
1,308,558

Deferred financing costs, net

 
3,099

 

 

 

 
3,099

Investment in subsidiaries

 
2,188,221

 

 

 
(2,188,221
)
 

Intercompany receivable

 

 
6,303

 

 
(6,303
)
 

Intangible assets, net

 

 
350,710

 
26,741

 

 
377,451

Goodwill

 

 
809,678

 
27,292

 

 
836,970

Long-term notes receivables and other assets, net

 
106

 
78,173

 
10,550

 
(106
)
 
88,723

Total Assets
$

 
$
2,195,576

 
$
2,821,180

 
$
209,134

 
$
(2,357,043
)
 
$
2,868,847

Liabilities and Stockholders’ (Deficit) Equity
 
 
 
 
 
 
 
 
 
 
 
Current liabilities
$

 
$
28,805

 
$
343,398

 
$
128,581

 
$
(162,413
)
 
$
338,371

Intercompany payable

 

 

 
6,303

 
(6,303
)
 

Notes payable and revolving line of credit, net of current portion

 
2,820,297

 

 

 

 
2,820,297

Capital lease obligations, net of current portion

 

 
10,791

 
298

 

 
11,089

Deferred revenue, net of current portion

 

 
248,643

 
15,912

 

 
264,555

Accumulated losses of investee
653,526

 


 


 


 
(653,526
)
 

Other long-term obligations

 

 
79,020

 

 

 
79,020

Deferred income tax liability

 

 
106

 
9,041

 
(106
)
 
9,041

Total (deficit) equity
(653,526
)
 
(653,526
)
 
2,139,222

 
48,999

 
(1,534,695
)
 
(653,526
)
Total liabilities and stockholders’ (deficit) equity
$

 
$
2,195,576

 
$
2,821,180

 
$
209,134

 
$
(2,357,043
)
 
$
2,868,847



Condensed Consolidating Statements of Operations and Comprehensive Loss
For the Year ended December 31, 2018
(In thousands)
 
 
Parent
 
APX
Group, Inc.
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Revenues
$

 
$

 
$
998,190

 
$
54,818

 
$
(2,567
)
 
$
1,050,441

Costs and expenses

 

 
1,240,570

 
54,497

 
(2,567
)
 
1,292,500

(Loss) income from operations

 

 
(242,380
)
 
321

 

 
(242,059
)
Loss from subsidiaries
(467,914
)
 
(211,665
)
 

 

 
679,579

 

Other expense (income), net

 
256,249

 
(35,936
)
 
7,153

 

 
227,466

Loss before income taxes
(467,914
)
 
(467,914
)
 
(206,444
)
 
(6,832
)
 
679,579

 
(469,525
)
Income tax expense (benefit)

 

 
512

 
(2,123
)
 

 
(1,611
)
Net loss
$
(467,914
)
 
$
(467,914
)
 
$
(206,956
)
 
$
(4,709
)
 
$
679,579

 
$
(467,914
)
Other comprehensive loss, net of tax effects:
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustment
(2,218
)
 
(2,218
)
 

 
(2,218
)
 
4,436

 
(2,218
)
Total other comprehensive loss, net of tax effects
(2,218
)
 
(2,218
)
 

 
(2,218
)
 
4,436

 
(2,218
)
Comprehensive loss
$
(470,132
)
 
$
(470,132
)

$
(206,956
)
 
$
(6,927
)
 
$
684,015

 
$
(470,132
)


Condensed Consolidating Statements of Operations and Comprehensive Loss
For the Year ended December 31, 2017
(In thousands)
 
 
Parent
 
APX
Group, Inc.
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Revenues
$

 
$

 
$
841,658

 
$
43,015

 
$
(2,690
)
 
$
881,983

Costs and expenses

 

 
997,247

 
42,919

 
(2,690
)
 
1,037,476

(Loss) income from operations

 

 
(155,589
)
 
96

 

 
(155,493
)
Loss from subsidiaries
(410,199
)
 
(165,497
)
 

 

 
575,696

 

Other expense (income), net

 
244,702

 
13,545

 
(4,619
)
 

 
253,628

(Loss) income before income taxes
(410,199
)
 
(410,199
)
 
(169,134
)
 
4,715

 
575,696

 
(409,121
)
Income tax expense (benefit)

 

 
(228
)
 
1,306

 

 
1,078

Net (loss) income
$
(410,199
)
 
$
(410,199
)
 
$
(168,906
)
 
$
3,409

 
$
575,696

 
$
(410,199
)
Other comprehensive income (loss), net of tax effects:
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustment
3,155

 
3,155

 

 
3,155

 
(6,310
)
 
3,155

Unrealized gain on marketable securities
(1,693
)
 
(1,693
)
 
(1,693
)
 

 
3,386

 
(1,693
)
Total other comprehensive income (loss), net of tax effects
1,462

 
1,462

 
(1,693
)
 
3,155

 
(2,924
)
 
1,462

Comprehensive (loss) income
$
(408,737
)
 
$
(408,737
)
 
$
(170,599
)
 
$
6,564

 
$
572,772

 
$
(408,737
)


Condensed Consolidating Statements of Operations and Comprehensive Loss
For the Year ended December 31, 2016
(In thousands)
 
 
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 before income taxes
(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 income, net of tax effects:
 
 
 
 
 
 
 
 
 
 

Foreign currency translation adjustment
2,482

 
2,482

 

 
2,482

 
(4,964
)
 
2,482

Unrealized gain on marketable securities
1,011

 
1,011

 
1,011

 

 
(2,022
)
 
1,011

Total other comprehensive income, net of tax effects
3,493

 
3,493

 
1,011

 
2,482

 
(6,986
)
 
3,493

Comprehensive loss
$
(272,464
)
 
$
(272,464
)
 
$
(70,393
)
 
$
4,249

 
$
338,608

 
$
(272,464
)


Condensed Consolidating Statements of Cash Flows
For the Year ended December 31, 2018
(In thousands)
 
 
Parent
 
APX
Group, Inc.
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
 
 
Net cash (used in) provided by operating activities
$

 
$

 
$
(220,952
)
 
$
453

 
$

 
$
(220,499
)
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures

 

 
(19,409
)
 
(3
)
 

 
(19,412
)
Proceeds from sale of intangibles

 

 
53,693

 

 

 
53,693

Proceeds from sale of capital assets

 

 
127

 

 

 
127

Investment in subsidiary
(1,571
)
 
(201,292
)
 

 

 
202,863

 

Acquisition of intangible assets

 

 
(1,486
)
 

 

 
(1,486
)
Net cash (used in) provided by investing activities
(1,571
)
 
(201,292
)
 
32,925

 
(3
)
 
202,863

 
32,922

Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 
Proceeds from notes payable

 
810,000

 

 

 

 
810,000

Repayment on notes payable

 
(522,191
)
 

 

 

 
(522,191
)
Borrowings from revolving line of credit

 
201,000

 

 

 

 
201,000

Repayment of revolving line of credit

 
(261,000
)
 

 

 

 
(261,000
)
Proceeds from capital contribution
4,700

 
4,700

 
204,421

 

 
(209,121
)
 
4,700

Repayments of capital lease obligations

 

 
(12,011
)
 
(343
)
 

 
(12,354
)
Financing costs

 
(11,317
)
 

 

 

 
(11,317
)
Deferred financing costs

 
(9,302
)
 

 

 

 
(9,302
)
Return of capital
(3,129
)
 
(3,129
)
 
(3,129
)
 

 
6,258

 
(3,129
)
Net cash provided by (used in) financing activities
1,571

 
208,761

 
189,281

 
(343
)
 
(202,863
)
 
196,407

Effect of exchange rate changes on cash

 

 

 
71

 

 
71

Net increase in cash

 
7,469

 
1,254

 
178

 

 
8,901

Cash:
 
 
 
 
 
 
 
 
 
 
 
Beginning of period

 
3,661

 
(572
)
 
783

 

 
3,872

End of period
$

 
$
11,130

 
$
682

 
$
961

 
$

 
$
12,773


Condensed Consolidating Statements of Cash Flows
For the Year ended December 31, 2017
(In thousands)
 
Parent
 
APX
Group, Inc.
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
 
 
Net cash (used in) provided by operating activities
$

 
$

 
$
(313,290
)
 
$
3,958

 
$

 
$
(309,332
)
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures

 

 
(20,391
)
 

 

 
(20,391
)
Proceeds from sale of capital assets

 

 
776

 

 

 
776

Investment in subsidiary
1,151

 
(325,222
)
 

 

 
324,071

 

Acquisition of intangible assets

 

 
(1,745
)
 

 

 
(1,745
)
Other assets

 

 
(301
)
 

 

 
(301
)
Net cash provided by (used in) investing activities
1,151

 
(325,222
)
 
(21,661
)
 

 
324,071

 
(21,661
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 
Proceeds from notes payable

 
724,750

 

 

 

 
724,750

Repayment on notes payable

 
(450,000
)
 

 

 

 
(450,000
)
Borrowings from revolving line of credit

 
196,895

 

 

 

 
196,895

Repayment of revolving line of credit

 
(136,895
)
 

 

 

 
(136,895
)
Proceeds from capital contribution

 

 
326,373

 

 
(326,373
)
 

Payment of intercompany settlement

 

 
(2,983
)
 

 

 
(2,983
)
Intercompany receivable

 
 
 
3,621

 

 
(3,621
)
 

Intercompany payable

 

 

 
(3,621
)
 
3,621

 

Repayments of capital lease obligations

 

 
(9,667
)
 
(340
)
 

 
(10,007
)
Financing costs

 
(18,277
)
 

 

 

 
(18,277
)
Deferred financing costs

 
(11,119
)
 

 

 

 
(11,119
)
Return of capital
(1,151
)
 
(1,151
)
 
(1,151
)
 

 
2,302

 
(1,151
)
Net cash (used in) provided by financing activities
(1,151
)
 
304,203

 
316,193

 
(3,961
)
 
(324,071
)
 
291,213

Effect of exchange rate changes on cash

 

 

 
132

 

 
132

Net increase (decrease) in cash

 
(21,019
)
 
(18,758
)
 
129

 

 
(39,648
)
Cash:
 
 
 
 
 
 
 
 
 
 
 
Beginning of period

 
24,680

 
18,186

 
654

 

 
43,520

End of period
$

 
$
3,661

 
$
(572
)
 
$
783

 
$

 
$
3,872


Condensed Consolidating Statements of Cash Flows
For the Year ended December 31, 2016
(In thousands)
 
 
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 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) 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

v3.19.2
Subsequent Events
3 Months Ended
Mar. 31, 2019
Subsequent Events [Abstract]  
Subsequent Events
Subsequent Events
On May 10, 2019, APX issued $225.0 million aggregate principal amount of 8.5% Senior Secured Notes due 2024 (“2024 notes”) in a private placement. APX used the net proceeds from the 2024 notes offering to redeem $225.0 million aggregate principal amount of its 2020 notes, and to pay the related accrued interest and to pay all fees and expenses related thereto. The indenture governing the 2024 notes contains covenants similar to the 2022 notes. An affiliate of Blackstone acted as one of the initial purchasers in connection with this offering.
v3.19.2
Basis of Presentation and Significant Accounting Policies (Policies)
3 Months Ended 12 Months Ended
Mar. 31, 2019
Dec. 31, 2018
Accounting Policies [Abstract]    
Basis of Presentation
Basis of Presentation
The unaudited condensed consolidated financial statements of the Company are presented for APX Group Holdings, Inc. (“Holdings") and its wholly-owned subsidiaries. The Company has prepared the accompanying unaudited condensed consolidated financial statements pursuant to GAAP. Preparing financial statements requires the Company to make estimates and assumptions that affect the amounts that are reported in the 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.
Basis of Presentation
The Company has prepared the accompanying consolidated financial statements pursuant to generally accepted accounting principles in the United States (“GAAP”). Preparing financial statements requires the Company to make estimates and assumptions that affect the amounts that are reported in the 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.
Vivint Flex Pay
Vivint Flex Pay
The Vivint Flex Pay plan (“Vivint Flex Pay”) became the Company's primary sales 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 options to pay for the Products: (1) qualified customers in the United States may finance the purchase of Products through a third-party financing provider (“Consumer Financing Program”), (2) customers not eligible for the Consumer Financing Program, but who qualify under the Company's underwriting criteria, may 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. Gross deferred revenues are reduced by imputed interest on the RICs and the present value of expected payments due to the third-party financing provider under the Consumer Financing Program.
Under the Consumer Financing Program, qualified customers are eligible for installment loans provided by a third-party financing provider of up to $4,000 for either 42 or 60 months.
For a certain third-party provider, the Company pays a monthly fee based on the average daily outstanding balance of the installment loans. Additionally, the Company shares liability for credit losses depending on the credit quality of the customer. Because of the nature of these provisions with this third-party provider, the Company records a derivative liability at its fair value when the third-party financing provider originates installment 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 third-party financing provider. Subsequent changes to the fair value of the derivative liability are realized through other income, net in the Condensed Consolidated Statement of Operations. (See Note 8).
For a separate third-party financing provider, the Company receives net proceeds from installment loans (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
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. The RIC receivables are recorded at their present value, net of the imputed interest discount. At the time of installation, the Company records a long-term note receivable within long-term notes receivables and other assets, net on the 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 condensed consolidated balance sheets. The billed amounts of notes receivables are included in accounts receivable within accounts and notes receivable, net on the condensed consolidated balance sheets.
The Company imputes the interest on the RIC receivable using a risk adjusted market interest rate and records it as an adjustment to deferred revenue and as an adjustment to the face amount of the related receivable. The imputed interest discount considers a number of factors, including collection experience, aging of the remaining RIC receivable portfolios, credit quality of the subscriber base and other qualitative considerations, including macro-economic factors. The imputed interest income is recognized over the term of the RIC contract as recurring and other revenue on the condensed consolidated statement of operations.
When the Company determines that there are RIC receivables that have become uncollectible, it records an adjustment to the imputed interest discount and reduces the related note receivable balance. 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.
Retail Installment Contract Receivables
For customers that enter into a RIC under the Vivint Flex Pay plan, the Company records a receivable for the amount financed. The RIC receivables are recorded at their present value, net of the imputed interest discount. At the time of installation, the Company records a long-term note receivable within long-term notes receivables and other assets, net on the 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 consolidated balance sheets. The billed amounts of notes receivables are included in accounts receivable within accounts and notes receivable, net on the consolidated balance sheets.
The Company imputes the interest on the RIC receivable using a risk adjusted market interest rate and records it as an adjustment to deferred revenue and as an adjustment to the face amount of the related receivable. The imputed interest discount considers a number of factors, including collection experience, aging of the remaining RIC receivable portfolios, credit quality of the subscriber base and other qualitative considerations, including macro-economic factors. The imputed interest income is recognized over the term of the RIC contract as recurring and other revenue on the consolidated statement of operations.
When the Company determines that there are RIC receivables that have become uncollectible, it records an adjustment to the imputed interest discount and reduces the related note receivable balance. 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
Accounts receivable consists primarily of amounts due from subscribers for recurring monthly monitoring Services 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 condensed consolidated balance sheets. Accounts receivable totaled $20.0 million and $16.5 million at March 31, 2019 and December 31, 2018, respectively net of the allowance for doubtful accounts of $5.8 million and $5.6 million at March 31, 2019 and December 31, 2018, respectively. The Company estimates this allowance based on historical collection experience and subscriber attrition rates. 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 $5.9 million and $4.0 million for the three months ended March 31, 2019 and 2018, respectively.
Accounts Receivable
Accounts receivable consists primarily of amounts due from customers for recurring monthly monitoring Services 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 consolidated balance sheets. Accounts receivable totaled $16.5 million and $24.3 million and December 31, 2018 and 2017, respectively net of the allowance for doubtful accounts of $5.6 million and $5.4 million at December 31, 2018 and 2017, respectively. The Company estimates this allowance based on historical collection experience and subscriber attrition rates. 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 consolidated statements of operations and totaled $19.4 million and $22.5 million for the years ended December 31, 2018 and 2017, 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, security 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. 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 and five years in length and are non-cancelable. These contracts with customers generally convert into month-to-month agreements at the end of the initial term, and some customer contracts are month-to-month from inception. Payment for recurring monitoring and other Smart Home Services is generally due in advance on a monthly basis.
Sales of Products and other one-time fees such as service fees or installation fees are invoiced to the customer at the time of sale. Revenues for wireless internet service provided by Vivint Wireless Inc. (“Wireless Internet” or “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
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 to five years.
 
Capitalized Contract Costs
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. These costs are deferred and amortized on a straight-line basis over the expected period of benefit that the Company has determined to be five years. Amortization of capitalized contract costs is included in “Depreciation and Amortization” on the consolidated statements of operations. These deferred costs are periodically reviewed for impairment. 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 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.
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 customer 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. These costs are deferred and amortized on a straight-line basis over the expected period of benefit that the Company has determined to be five years. Amortization of capitalized contract costs is included in “Depreciation and Amortization” on the consolidated statements of operations. These deferred costs are periodically reviewed for impairment. Contract costs not directly related and incremental to the origination of new contracts, modification of existing contracts or to the fulfillment of the related customer 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 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 customer contracts.
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.
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
Inventories, which are comprised of smart home and security system Products and parts, are stated at the lower of cost or net realizable value with cost determined under the first-in, first-out (“FIFO”) method. The Company adjusts the inventory balance based on anticipated obsolescence, usage and historical write-offs.
Inventories
Inventories, which are comprised of smart home and security system equipment and parts are stated at the lower of cost or market with cost determined under the first-in, first-out (FIFO) method. 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 five to ten 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 with 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.
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 capital 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 5 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 with 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.
Leases
Leases
Effective January 1, 2019 the Company accounts for leases under Topic 842 (see Recently Adopted Accounting Standards below). Under Topic 842, 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 condensed consolidated balance sheets. Finance lease assets are included in property, plant and equipment, net on the 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.
 
Long-term Investments
Long-term Investments
The Company’s long-term investments are composed of equity securities in both privately held and public companies. As of March 31, 2019 and December 31, 2018, the Company's equity investments totaled $6.1 million and $3.9 million, respectively.
Management determines the appropriate fair value measurement of its investments at the time of purchase and reevaluates the fair value measurement at each balance sheet date. Equity securities are classified as either short-term or long-term, based on the nature of each security and its availability for use in current operations. The Company’s equity securities are carried at fair value, with gains and losses reported in other income or loss within the statement of operations.
The Company's equity investments without readily determinable fair values totaled $0.7 million as of March 31, 2019 and December 31, 2018, respectively. The Company performs impairment analyses of its investments without readily determinable fair values when events occur or circumstances change that would, more likely than not, reduce the fair value of the investment below its carrying value. When indicators of impairment do not exist, the Company evaluates impairment using a qualitative approach. Additionally, increases or decreases in the carrying amount resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer are adjusted through the statement of operations as needed. As of March 31, 2019 and December 31, 2018, no indicators of impairment or changes in observable prices existed associated with investments without readily determinable fair values.
 
Deferred Financing Costs
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.
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's revolving credit facility are amortized over the amended maturity dates discussed in Note 5. If such financing is paid off or replaced prior to maturity with debt instruments that have substantially different terms, the unamortized costs are charged to expense. Deferred financing costs included in the accompanying consolidated balance sheets within deferred financing costs, net at December 31, 2018 and 2017 were $2.1 million and $3.1 million, net of accumulated amortization of $9.6 million and $8.6 million, respectively. Deferred financing costs included in the accompanying consolidated balance sheets within notes payable, net at December 31, 2018 and 2017 were $32.4 million and $35.7 million, net of accumulated amortization of $54.6 million and $45.2 million, respectively. Amortization expense on deferred financing costs recognized and included in interest expense in the accompanying consolidated statements of operations totaled $10.4 million, $11.4 million and $11.6 million for the years ended December 31, 2018, 2017 and 2016, respectively.
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 the underlying contracts they create.
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.
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”). In addition, in 2018, the Company introduced a new residual sales compensation plan (the “Residual Plan”). Under the Residual Plan, the Company's sales personnel (each, a “Plan Participant”) have the option to convert up to a specified portion of their earnings (as defined in the Residual Plan) into the right to receive monthly residual compensation payable over the life of the subscriber accounts sold by such Plan Participant.
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 amount included in accrued payroll and commissions was $4.5 million and $3.3 million as of December 31, 2018 and 2017, respectively, and the amount included in other long-term obligations was $13.0 million and $18.5 million at December 31, 2018 and 2017, respectively, representing the present value of the estimated amounts owed to third-party sales channel partners.
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 10).
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 12).
Advertising Expense
Advertising Expense
Advertising costs are expensed as incurred.
Advertising Expense
Advertising 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.
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.
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 (See Note 11)
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 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, 2019, approximately 82% of the Company’s installed panels were SkyControl panels and 17% were 2GIG Go!Control panels and 1% were other panels. During the three months ended March 31, 2018 the Company transitioned to a new panel supplier. The loss of the Company's panel supplier could potentially impact its operating results or financial position.
Concentrations of Supply Risk
As of December 31, 2018, approximately 80% of the Company’s installed panels were SkyControl panels and 19% were 2GIG Go!Control panels. During the three months ended March 31, 2018 the Company transitioned to a new panel supplier. The loss of the Company's panel supplier 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, 2019 and 2018.
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.
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 years ended December 31, 2018 and 2017.
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 than the carrying value of its net assets, goodwill is not considered to be impaired and no further testing is required. If the fair value of the reporting unit is less than the carrying value of its net assets, the Company would be required to complete the second step of the test by analyzing the fair value of its goodwill. If the carrying value of the goodwill exceeds its fair value, an impairment charge is recorded. The Company’s reporting units are determined based on its current reporting structure, which as of December 31, 2018 and March 31, 2019 consisted of two reporting units. As of March 31, 2019, there were no changes in facts and circumstances since the most recent annual impairment analysis to indicate impairment existed.
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 than the carrying value of its net assets, goodwill is not considered to be impaired and no further testing is required. If the fair value of the reporting unit is less than the carrying value of its net assets, the Company would be required to complete the second step of the test by analyzing the fair value of its goodwill. If the carrying value of the goodwill exceeds its fair value, an impairment charge is recorded. The Company’s reporting units are determined based on its current reporting structure, which as of December 31, 2018 consisted of two reporting units. The Company found that no indicators of goodwill impairment existed during the year ended December 31, 2018, thus a qualitative approach was used and it was determined that no impairment existed for goodwill.
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.
When intercompany foreign currency transactions between entities included in the consolidated financial statements are of a long term investment nature (i.e., those for which settlement is not planned or anticipated in the foreseeable future) foreign currency translation adjustments resulting from those transactions are included in stockholders’ deficit as accumulated other comprehensive loss or income. When intercompany transactions are deemed to be of a short term nature, translation adjustments are required to be included in the condensed consolidated statement of operations. The Company has determined that settlement of Vivint Canada, Inc. intercompany balances is anticipated and therefore such balances are deemed to be of a short term nature.
Foreign Currency Translation and Other Comprehensive Income
The functional currencies of Vivint Canada, Inc. and Vivint New Zealand, Ltd. are the Canadian and New Zealand dollars, respectively. Accordingly, assets and liabilities are translated from their respective functional currencies into U.S. dollars at period-end rates and 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 (loss) income and shown as a separate component of equity. During the year ended December 31, 2016, the Company completed the 2016 Contract Sales which included all contracts in the New Zealand, Ltd. entity. (See Note 10)
When intercompany foreign currency transactions between entities included in the consolidated financial statements are of a long term investment nature (i.e., those for which settlement is not planned or anticipated in the foreseeable future) foreign currency translation adjustments resulting from those transactions are included in stockholders’ (deficit) equity as accumulated other comprehensive loss or income. When intercompany transactions are deemed to be of a short term nature, translation adjustments are required to be included in the consolidated statement of operations. The Company has determined that settlement of Vivint Canada, Inc. and Vivint New Zealand, Ltd. intercompany balances are anticipated and therefore such balances are deemed to be of a short-term nature. Translation activity included in the statements of operations in other loss, net related to intercompany balances was a loss of $7.1 million for the year ended December 31, 2018, a gain of $4.9 million for the year ended December 31, 2017, and a gain of $2.1 million for the year ended December 31, 2016.
Letters of Credit
Letters of Credit
As of March 31, 2019 and December 31, 2018, the Company had $13.9 million and $13.8 million, respectively, of letters of credit issued in the ordinary course of business, all of which are undrawn.
Letters of Credit
As of December 31, 2018 and 2017, the Company had $13.8 million and $9.5 million, respectively, of letters of credit issued in the ordinary course of business, all of which are undrawn.
Restructuring and Asset Impairment Charges
Restructuring and Asset Impairment Charges
Restructuring and asset impairment charges represent expenses incurred in relation to activities to exit or disposal 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 15).
Restructuring and Asset Impairment Charges
Restructuring 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 10).
Recent Accounting Pronouncements
Recent Accounting Pronouncements
In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-13, “Financial Instruments—Credit Losses (Topic 326)” which modifies the measurement of expected credit losses of certain financial instruments. This update is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019 and must be applied using a modified-retrospective approach, with early adoption permitted. The Company is evaluating the adoption of ASU 2016-13 and plans to provide additional information about its expected impact at a future date.
Recently Adopted Accounting Standards
In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” to increase transparency and comparability among organizations as it relates to lease assets and lease liabilities. The update requires that lease assets and lease liabilities be recognized on the balance sheet, and that key information about leasing arrangements be disclosed. Prior to this update, GAAP did not require operating leases to be recognized as lease assets and lease liabilities on the balance sheet.
The Company adopted ASU 2016-02 as of January 1, 2019, utilizing the modified retrospective approach and using certain practical expedients. The adoption of the standard resulted in recording ROU assets of $75.5 million and lease liabilities of $85.9 million as of January 1, 2019. The ROU assets are lower than the lease liabilities as existing deferred rent and lease incentive liabilities were recorded against the ROU assets at adoption in accordance with the standard. The standard did not materially affect the Company's condensed consolidated statements of operations or its condensed consolidated statements of cash flows. The standard also resulted in a reassessment that a sale would have occurred at January 1, 2019 for the Company's build-to-suit building. As a result, the Company classifies the leasing arrangement as an operating lease. The recognition of the sale-leaseback transaction resulted in an immaterial amount recorded to opening equity. See Note 6 for additional information on the sale-leaseback transaction. See Note 12 "Leases" for additional information related to the impact of adopting this standard.
Recent Accounting Pronouncements
In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-13, “Financial Instruments—Credit Losses (Topic 326),” which modifies the measurement of expected credit losses of certain financial instruments. This update is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019 and must be applied using a modified-retrospective approach, with early adoption permitted. The Company is evaluating the adoption of ASU 2016-13 and plans to provide additional information about its expected impact at a future date.
In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” to increase transparency and comparability among organizations as it relates to lease assets and lease liabilities. The update requires that lease assets and lease liabilities be recognized on the balance sheet, and that key information about leasing arrangements be disclosed. Prior to this update, GAAP did not require operating leases to be recognized as lease assets and lease liabilities on the balance sheet. This update is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, with early adoption permitted. In July 2018, the FASB issued ASU 2018-11 which provides companies the option to adopt using a modified retrospective approach or a prospective adoption approach.
The Company is continuing its evaluation of the impact of ASU 2016-02 on its accounting policies. The Company’s current operating lease portfolio is primarily comprised of network, real estate, and equipment leases. Upon adoption of this standard, the Company expects to record a right of use asset and liability related to all operating lease arrangements. The Company has assigned internal resources to perform the evaluation. Furthermore, the Company has made and will continue to make investments in systems to enable timely and accurate reporting under the new standard.
The Company expects the standard will have a material impact on the Company’s consolidated balance sheets but will not have a material impact on the consolidated statements of operations. The most significant impact will be the recognition of right of use assets and lease liabilities for operating leases. In connection with the adoption of the new lease accounting standard, the Company has completed scoping reviews and continues to make progress implementing new processes, systems, accounting policies and internal controls relevant to the standard. The Company will adopt this standard on January 1, 2019 using the prospective adoption approach and has elected to use the practical expedients allowed under the standard.
Recently Adopted Accounting Standards
ASU 2016-01
In January 2016, the FASB issued ASU 2016-01, "Financial Instruments-Overall (Subtopic 825-10)," which enhances the reporting model for financial instruments by addressing certain aspects of the recognition, measurement, presentation and disclosure of financial instruments. Key provisions require equity investments (except those accounted for under the equity method of accounting) to be measured at fair value with changes in fair value recognized in net income (loss). In addition, the exit price notion must be used when measuring the fair value of financial instruments for disclosure purposes. The Company adopted ASU 2016-01 on January 1, 2018, with a cumulative-effect adjustment to increase accumulated deficit by $0.7 million for the net unrealized losses within accumulated other comprehensive income related to equity investments. During the year ended December 31, 2018, the Company recorded a net loss of $0.3 million, respectively, to other income associated with the change in fair value of equity investments.
ASU 2014-09
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” which supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605).” Under Topic 606, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. In addition, Topic 606 requires enhanced disclosures, including disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Topic 606 also includes Subtopic 340-40, Other Assets and Deferred Costs - Contracts with Customers, which requires the deferral of incremental costs of obtaining a contract with a customer. Collectively, the Company refers to Topic 606 and Subtopic 340-40 as the “new standard”.
The Company adopted the new standard as of January 1, 2018, utilizing the modified retrospective method of transition (the cumulative catch-up transition method). Adoption of the new standard resulted in changes to the accounting policies for revenue recognition, deferred revenue, and capitalized contract costs (formerly subscriber acquisition costs). The cumulative effect of applying the new standard to all contracts with customers that were not completed as of January 1, 2018 was recorded as an adjustment to accumulated deficit as of the adoption date. The comparative information has not been adjusted and continues to be reported under Topic 605. See Note 3 "Revenue and Capitalized Contract Costs" for additional information related to the impact of adopting this standard and a discussion of the Company's updated policies related to revenue recognition and accounting for costs to obtain and fulfill a customer contract.
Revenue  
Revenue Recognition
The Company offers its customers smart home services combining Products, including a proprietary control panel, door and window sensors, door locks, security 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. 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 benefit, which is generally three years.
The majority of the Company’s subscription contracts are between three and five years in length and are non-cancelable. These contracts with customers generally convert into month-to-month agreements at the end of the initial term, and some customer contracts are month-to-month from inception. Payment for recurring monitoring and other Smart Home Services is generally due in advance on a monthly basis.
Sales of Products and other one-time fees such as service fees or installation fees are invoiced to the customer at the time of sale. Revenues for wireless internet service provided by Vivint Wireless Inc. (“Wireless Internet” or “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.
Vivint Flex Pay
In January 2017, the Company announced the introduction of the Vivint Flex Pay plan (“Vivint Flex Pay”), which became the Company’s primary sales 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 options to pay for the Products: (1) qualified customers in the United States may finance the purchase of Products through a third-party financing provider (“Consumer Financing Program”) (2) customers not eligible for the Consumer Financing Program, but who qualify under the Company’s underwriting criteria, may 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 the Products and Services under the Vivint Flex Pay plan, the Company has determined that the shift in its sales model does not change the Company’s conclusion 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. Gross deferred revenues are reduced by imputed interest on the RICs and the present value of expected payments due to the third-party financing provider under the Consumer Financing Program.
Under the Consumer Financing Program, qualified customers are eligible for installment loans provided by a third-party financing provider of up to $4,000 for either 42 or 60 months. The Company pays a monthly fee to the third-party financing provider based on the average daily outstanding balance of the installment loans. Additionally, the Company shares liability for credit losses depending on the credit quality of the customer. Because of the nature of these provisions under the Consumer Financing Program, the Company records a derivative liability at its fair value when the third-party financing provider originates installment 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 from the Company to the third-party financing provider. Subsequent changes to the fair value of the derivative liability are realized through other loss/(income), net in the Consolidated Statement of Operations.
Principles of Consolidation  
Principles of Consolidation
The accompanying consolidated financial statements include the accounts of APX Group Holdings, Inc. and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.
Wireless Spectrum Licenses  
Wireless Spectrum Licenses
The Company had capitalized as an intangible asset wireless spectrum licenses that were acquired from third parties. The cost basis of the wireless spectrum asset includes the purchase price paid for the licenses at the time of acquisition, plus costs incurred to acquire the licenses. The asset and related liability were recorded at the net present value of future cash outflows using the Company's incremental borrowing rate at the time of acquisition.
 The Company determined that the wireless spectrum licenses met the definition of indefinite-lived intangible assets because the licenses were able to be renewed periodically for a nominal fee, provided that the Company continued to meet the service and geographic coverage provisions. In January 2018, the Company terminated the wireless spectrum licenses for cash consideration.
Long-term Investments  
Long-term Investments
The Company’s long-term investments are composed of equity securities in both privately held and public companies. As of December 31, 2018 and 2017, the Company's equity investments totaled $3.9 million and $3.4 million, respectively.
Management determines the appropriate fair value measurement of its investments at the time of purchase and reevaluates the fair value measurement at each balance sheet date. Equity securities, are classified as either short-term or long-term, based on the nature of each security and its availability for use in current operations. The Company’s equity securities are carried at fair value, with gains and losses, reported in other income or loss within the statement of operations
The Company's equity investments without readily determinable fair values as of both December 31, 2018 and 2017 totaled $0.7 million. The Company performs impairment analyzes of its cost based investments when events occur or circumstances change that would, more likely than not, reduce the fair value of the investment below its carrying value. When indicators of impairment do not exist, the Company evaluates impairment using a qualitative approach. Additionally, increases or decreases in the carrying amount resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer are adjusted through the statement of operations as needed. As of December 31, 2018, no indicators of impairment or changes in observable prices existed associated with investments without readily determinable fair values.
Contracts Sold  
Contracts Sold
During the year ended December 31, 2016, the Company sold all of its New Zealand and Puerto Rico subscriber contracts and ceased operations in these geographical regions ("2016 Contract Sales"). As a result, during the year ended December 31, 2016 the Company recorded the impact of these transactions in restructuring and asset impairment (See Note 10).
v3.19.2
Basis of Presentation and Significant Accounting Policies (Tables)
3 Months Ended 12 Months Ended
Mar. 31, 2019
Dec. 31, 2018
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, 2019
 
Twelve Months Ended December 31, 2018
Beginning balance
$
5,594

 
$
5,356

Provision for doubtful accounts
5,918

 
19,405

Write-offs and adjustments
(5,704
)
 
(19,167
)
Balance at end of period
$
5,808

 
$
5,594

The following table summarizes the RIC receivables (in thousands):
 
March 31, 2019
 
December 31, 2018
RIC receivables, gross
$
173,254

 
$
175,250

Deferred interest
(29,612
)
 
(34,163
)
RIC receivables, net of deferred interest
$
143,642

 
$
141,087

 
 
 
 
Classified on the condensed consolidated unaudited balance sheets as:
 
 
 
Accounts and notes receivable, net
$
35,370

 
$
32,185

Long-term notes receivables and other assets, net
108,272

 
108,902

RIC receivables, net
$
143,642

 
$
141,087

The changes in the Company’s allowance for accounts receivable were as follows for the periods ended (in thousands):
 
 
Year ended December 31,
 
2018
 
2017
 
2016
Beginning balance
$
5,356

 
$
4,138

 
$
3,541

Provision for doubtful accounts
19,405

 
22,465

 
19,624

Write-offs and adjustments
(19,167
)
 
(21,247
)
 
(19,027
)
Balance at end of period
$
5,594

 
$
5,356

 
$
4,138

The following table summarizes the installment receivables (in thousands):
 
December 31, 2018
 
December 31, 2017
RIC receivables, gross
$
175,250

 
$
131,024

Deferred interest
(34,163
)
 
(36,048
)
RIC receivables, net of deferred interest
$
141,087

 
$
94,976

 
 
 
 
Classified on the consolidated balance sheets as:
 
 
 
Accounts and notes receivable, net
$
32,185

 
$
16,469

Long-term notes receivables and other assets, net
108,902

 
78,507

RIC receivables, net
$
141,087

 
$
94,976

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,
 
2019
 
2018
Amortization of capitalized contract costs
$
105,028

 
$
95,363

Amortization of definite-lived intangibles
20,272

 
22,720

Depreciation of property, plant and equipment
5,921

 
6,175

Total depreciation and amortization
$
131,221

 
$
124,258

The Company’s depreciation and amortization included in the consolidated statements of operations consisted of the following (in thousands):
 
Year ended December 31,
 
2018
 
2017
 
2016
Amortization of capitalized contract costs
$
398,174

 
$

 
$

Amortization of subscriber acquisition costs

 
206,153

 
154,877

Amortization of definite-lived intangibles
90,945

 
101,827

 
116,865

Depreciation of property, plant and equipment
24,963

 
21,275

 
16,800

Total depreciation and amortization
$
514,082

 
$
329,255

 
$
288,542

Schedule Of Foreign Translation Activity
Translation activity included in the statement of operations in other loss, net related to intercompany balances was as follows: (in thousands)
 
Three Months Ended March 31,
 
2019
 
2018
Translation (gain) loss
$
(1,701
)
 
$
2,075

 
v3.19.2
Retail Installment Contract Receivables (Tables)
3 Months Ended 12 Months Ended
Mar. 31, 2019
Dec. 31, 2018
Receivables [Abstract]    
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, 2019
 
Twelve Months Ended December 31, 2018
Beginning balance
$
5,594

 
$
5,356

Provision for doubtful accounts
5,918

 
19,405

Write-offs and adjustments
(5,704
)
 
(19,167
)
Balance at end of period
$
5,808

 
$
5,594

The following table summarizes the RIC receivables (in thousands):
 
March 31, 2019
 
December 31, 2018
RIC receivables, gross
$
173,254

 
$
175,250

Deferred interest
(29,612
)
 
(34,163
)
RIC receivables, net of deferred interest
$
143,642

 
$
141,087

 
 
 
 
Classified on the condensed consolidated unaudited balance sheets as:
 
 
 
Accounts and notes receivable, net
$
35,370

 
$
32,185

Long-term notes receivables and other assets, net
108,272

 
108,902

RIC receivables, net
$
143,642

 
$
141,087

The changes in the Company’s allowance for accounts receivable were as follows for the periods ended (in thousands):
 
 
Year ended December 31,
 
2018
 
2017
 
2016
Beginning balance
$
5,356

 
$
4,138

 
$
3,541

Provision for doubtful accounts
19,405

 
22,465

 
19,624

Write-offs and adjustments
(19,167
)
 
(21,247
)
 
(19,027
)
Balance at end of period
$
5,594

 
$
5,356

 
$
4,138

The following table summarizes the installment receivables (in thousands):
 
December 31, 2018
 
December 31, 2017
RIC receivables, gross
$
175,250

 
$
131,024

Deferred interest
(34,163
)
 
(36,048
)
RIC receivables, net of deferred interest
$
141,087

 
$
94,976

 
 
 
 
Classified on the consolidated balance sheets as:
 
 
 
Accounts and notes receivable, net
$
32,185

 
$
16,469

Long-term notes receivables and other assets, net
108,902

 
78,507

RIC receivables, net
$
141,087

 
$
94,976

Allowance for Credit Losses on Financing Receivables
Activity in the deferred interest for the RIC receivables was as follows (in thousands):
 
Three months ended March 31, 2019
 
Twelve months ended December 31, 2018
Deferred interest, beginning of period
$
34,163

 
$
36,048

Write-offs, net of recoveries
(6,923
)
 
(26,360
)
Change in deferred interest on short-term and long-term RIC receivables
2,372

 
24,475

Deferred interest, end of period
$
29,612

 
$
34,163

Activity in the deferred interest for the RIC receivables was as follows (in thousands):
 
For the Years Ended
 
December 31, 2018
 
December 31, 2017
Deferred interest, beginning of period
$
36,048

 
$

Write-offs, net of recoveries
(26,360
)
 
(6,055
)
Change in deferred interest on short-term and long-term RIC receivables
24,475

 
42,103

Deferred interest, end of period
$
34,163

 
$
36,048

v3.19.2
Balance Sheet Components (Tables)
3 Months Ended 12 Months Ended
Mar. 31, 2019
Dec. 31, 2018
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, 2019
 
December 31, 2018
Prepaid expenses and other current assets
 
 
 
Prepaid expenses
$
12,984

 
$
7,183

Deposits
1,353

 
904

Other
791

 
3,362

Total prepaid expenses and other current assets
$
15,128

 
$
11,449

Capitalized contract costs
 
 
 
Capitalized contract costs
$
2,445,784

 
$
2,361,795

Accumulated amortization
(1,352,919
)
 
(1,246,020
)
Capitalized contract costs, net
$
1,092,865

 
$
1,115,775

Long-term notes receivables and other assets
 
 
 
RIC receivables, gross
$
137,884

 
$
143,065

RIC deferred interest
(29,612
)
 
(34,164
)
Security deposits
7,126

 
6,586

Investments
6,099

 
3,865

Other
299

 
467

Total long-term notes receivables and other assets, net
$
121,796

 
$
119,819

Accrued payroll and commissions
 
 
 
Accrued commissions
$
11,432

 
$
28,726

Accrued payroll
25,849

 
36,753

Total accrued payroll and commissions
$
37,281

 
$
65,479

Accrued expenses and other current liabilities
 
 
 
Accrued interest payable
$
55,157

 
$
28,885

Current portion of derivative liability
70,137

 
67,710

Service warranty accrual
8,825

 
8,813

Current portion of notes payable
8,100

 
8,100

Loss contingencies
2,131

 
3,131

Other
14,647

 
20,076

Total accrued expenses and other current liabilities
$
158,997

 
$
136,715

The following table presents material balance sheet component balances as of December 31, 2018 and December 31, 2017 (in thousands):
 
 
December 31,
 
2018
 
2017
Prepaid expenses and other current assets
 
 
 
Prepaid expenses
$
7,183

 
$
8,000

Deposits
904

 
1,596

Other
3,362

 
6,554

Total prepaid expenses and other current assets
$
11,449

 
$
16,150

Capitalized contract costs
 
Capitalized contract costs
$
2,361,795

 
$

Accumulated amortization
(1,246,020
)
 

Capitalized contract costs, net
$
1,115,775

 
$

Subscriber acquisition costs
 
Subscriber acquisition costs
$

 
$
1,837,388

Accumulated amortization

 
(528,830
)
Subscriber acquisition costs, net
$

 
$
1,308,558

Long-term notes receivables and other assets
 
RIC receivables, gross
$
143,065

 
$
114,556

RIC deferred interest
(34,164
)
 
(36,049
)
Security deposits
6,586

 
6,427

Investments
3,865

 
3,429

Other
467

 
360

Total long-term notes receivables and other assets, net
$
119,819

 
$
88,723

Accrued payroll and commissions
 
Accrued payroll
$
36,753

 
$
30,267

Accrued commissions
28,726

 
27,485

Total accrued payroll and commissions
$
65,479

 
$
57,752

Accrued expenses and other current liabilities
 
Accrued interest payable
$
28,885

 
$
28,737

Current portion of derivative liability
67,710

 
25,473

Service warranty accrual
8,813

 

Current portion of notes payable
8,100

 

Blackstone monitoring fee, a related party
4,793

 
933

Accrued taxes
5,351

 
4,585

Spectrum license obligation

 
3,861

Accrued payroll taxes and withholdings
5,097

 
3,185

Loss contingencies
3,131

 
2,156

Other
4,835

 
5,391

Total accrued expenses and other current liabilities
$
136,715

 
$
74,321

v3.19.2
Property and Equipment (Tables)
3 Months Ended 12 Months Ended
Mar. 31, 2019
Dec. 31, 2018
Property, Plant and Equipment [Abstract]    
Components of Property Plant and Equipment
Property, plant and equipment consisted of the following (in thousands):
 
 
March 31, 2019
 
December 31, 2018
 
Estimated Useful
Lives
Vehicles
$
44,594

 
$
45,050

 
3 - 5 years
Computer equipment and software
55,459

 
53,891

 
3 - 5 years
Leasehold improvements
27,609

 
26,401

 
2 - 15 years
Office furniture, fixtures and equipment
19,918

 
19,532

 
7 years
Build-to-suit lease building

 
8,247

 
10.5 years
Construction in process
4,205

 
2,975

 
 
Property, plant and equipment, gross
151,785

 
156,096

 
 
Accumulated depreciation and amortization
(87,171
)
 
(82,695
)
 
 
Property, plant and equipment, net
$
64,614

 
$
73,401

 
 
Property, plant and equipment consisted of the following (in thousands):
 
December 31,
 
Estimated
Useful Lives
 
2018
 
2017
 
Vehicles
$
45,050

 
$
42,008

 
3-5 years
Computer equipment and software
53,891

 
46,651

 
3-5 years
Leasehold improvements
26,401

 
20,783

 
2-15 years
Office furniture, fixtures and equipment
19,532

 
17,202

 
7 years
Build-to-suit lease building
8,247

 
8,268

 
10.5 years
Construction in process
2,975

 
4,299

 
 
Property, plant and equipment, gross
156,096

 
139,211

 
 
Accumulated depreciation and amortization
(82,695
)
 
(61,130
)
 
 
Property, plant and equipment, net
$
73,401

 
$
78,081

 
 
v3.19.2
Goodwill and Intangible Assets (Tables)
3 Months Ended 12 Months Ended
Mar. 31, 2019
Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]    
Schedule of Indefinite-Lived Intangible Assets
The following table presents intangible asset balances (in thousands):
 
 
March 31, 2019
 
December 31, 2018
 
 
 
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
$
965,670

 
$
(737,443
)
 
$
228,227

 
$
964,100

 
$
(717,648
)
 
$
246,452

 
10 years
2GIG 2.0 technology
17,000

 
(15,603
)
 
1,397

 
17,000

 
(15,292
)
 
1,708

 
8 years
Other technology
2,917

 
(1,771
)
 
1,146

 
2,917

 
(1,667
)
 
1,250

 
5 - 7 years
Space Monkey technology
7,100

 
(6,019
)
 
1,081

 
7,100

 
(5,756
)
 
1,344

 
6 years
Patents
12,245

 
(9,136
)
 
3,109

 
12,123

 
(8,415
)
 
3,708

 
5 years
Total definite-lived intangible assets:
$
1,004,932

 
$
(769,972
)
 
$
234,960

 
$
1,003,240

 
$
(748,778
)
 
$
254,462

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Indefinite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
IP addresses
564

 

 
564

 
564

 

 
564

 
 
Domain names
59

 

 
59

 
59

 

 
59

 
 
Total Indefinite-lived intangible assets
623

 

 
623

 
623

 

 
623

 
 
Total intangible assets, net
$
1,005,555

 
$
(769,972
)
 
$
235,583

 
$
1,003,863

 
$
(748,778
)
 
$
255,085

 
 
 
Schedule of Definite-Lived Intangible Assets
The following table presents intangible asset balances (in thousands):
 
 
March 31, 2019
 
December 31, 2018
 
 
 
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
$
965,670

 
$
(737,443
)
 
$
228,227

 
$
964,100

 
$
(717,648
)
 
$
246,452

 
10 years
2GIG 2.0 technology
17,000

 
(15,603
)
 
1,397

 
17,000

 
(15,292
)
 
1,708

 
8 years
Other technology
2,917

 
(1,771
)
 
1,146

 
2,917

 
(1,667
)
 
1,250

 
5 - 7 years
Space Monkey technology
7,100

 
(6,019
)
 
1,081

 
7,100

 
(5,756
)
 
1,344

 
6 years
Patents
12,245

 
(9,136
)
 
3,109

 
12,123

 
(8,415
)
 
3,708

 
5 years
Total definite-lived intangible assets:
$
1,004,932

 
$
(769,972
)
 
$
234,960

 
$
1,003,240

 
$
(748,778
)
 
$
254,462

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Indefinite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
IP addresses
564

 

 
564

 
564

 

 
564

 
 
Domain names
59

 

 
59

 
59

 

 
59

 
 
Total Indefinite-lived intangible assets
623

 

 
623

 
623

 

 
623

 
 
Total intangible assets, net
$
1,005,555

 
$
(769,972
)
 
$
235,583

 
$
1,003,863

 
$
(748,778
)
 
$
255,085

 
 
The following table presents intangible asset balances as of December 31, 2018 and 2017 (in thousands):

 
December 31, 2018
 
December 31, 2017
 
 
 
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
$
964,100

 
$
(717,648
)
 
$
246,452

 
$
970,147

 
$
(637,780
)
 
$
332,367

 
10 years
2GIG 2.0 technology
17,000

 
(15,292
)
 
1,708

 
17,000

 
(13,274
)
 
3,726

 
8 years
Other technology
2,917

 
(1,667
)
 
1,250

 
2,917

 
(1,250
)
 
1,667

 
5 - 7 years
Space Monkey technology
7,100

 
(5,756
)
 
1,344

 
7,100

 
(4,066
)
 
3,034

 
6 years
Patents
12,123

 
(8,415
)
 
3,708

 
10,616

 
(5,835
)
 
4,781

 
5 years
Total definite-lived intangible assets:
1,003,240

 
(748,778
)
 
254,462

 
1,007,780

 
(662,205
)
 
345,575

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Indefinite-lived intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Spectrum licenses

 

 

 
31,253

 

 
31,253

 
 
IP addresses
564

 

 
564

 
564

 

 
564

 
 
Domain names
59

 

 
59

 
59

 

 
59

 
 
Total Indefinite-lived intangible assets
623

 

 
623

 
31,876

 

 
31,876

 
 
Total intangible assets, net
$
1,003,863

 
$
(748,778
)
 
$
255,085

 
$
1,039,656


$
(662,205
)
 
$
377,451

 
 
Schedule of Estimated Future Amortization Expense of Intangible Assets Excluding Patents Currently in Process
Estimated future amortization expense of intangible assets, excluding approximately $0.3 million in patents currently in process, is as follows as of March 31, 2019 (in thousands):
 
 
 
2019 - Remaining Period
$
59,216

2020
67,990

2021
58,709

2022
48,759

2023
28

Thereafter

Total estimated amortization expense
$
234,702

Estimated future amortization expense of intangible assets, excluding approximately $0.3 million in patents currently in process, is as follows as of December 31, 2018 (in thousands):
 
 
 
2019
$
79,062

2020
67,807

2021
58,578

2022
48,674

2023
47

Thereafter
11

Total estimated amortization expense
$
254,179

Changes in Carrying Amount of Goodwill  
The changes in the carrying amount of goodwill for the years ended December 31, 2018 and 2017, were as follows (in thousands):
 
 
 
Balance as of January 1, 2017
$
835,233

Effect of Foreign Currency Translation
1,737

Balance as of December 31, 2017
836,970

Effect of Foreign Currency Translation
(2,115
)
Balance as of December 31, 2018
$
834,855

v3.19.2
Financial Instruments (Tables)
3 Months Ended 12 Months Ended
Mar. 31, 2019
Dec. 31, 2018
Fair Value Disclosures [Abstract]    
Financial Instruments at Fair Value Based on Valuation Approach Applied to Each Class of Security
The following tables set forth the Company’s cash and cash equivalents and Corporate Securities’ adjusted cost, gross unrealized gains, gross unrealized losses, gross realized gains, gross realized 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, 2019 and December 31, 2018 (in thousands):
 
March 31, 2019
 
Adjusted Cost
 
Unrealized Gains
 
Unrealized Losses
 
Fair Value
 
Cash and Cash Equivalents
 
Long-Term Notes Receivables and Other Assets, net
Cash
$
3,599

 
$

 
$

 
$
3,599

 
$
3,599

 
$

 
 
 
 
 
 
 
 
 
 
 
 
Level 1:
 
 
 
 
 
 
 
 
 
 
 
Money market funds
92

 

 

 
92

 
92

 

Corporate securities
3,181

 
2,212

 

 
5,393

 

 
5,393

Subtotal
3,273

 
2,212

 

 
5,485

 
92

 
5,393

 
 
 
 
 
 
 
 
 
 
 
 
Total
$
6,872

 
$
2,212

 
$

 
$
9,084

 
$
3,691

 
$
5,393

 
December 31, 2018
 
Adjusted Cost
 
Unrealized Gains
 
Unrealized Losses
 
Fair Value
 
Cash and Cash Equivalents
 
Long-Term Notes Receivables and Other Assets, net
Cash
$
6,681

 
$

 
$

 
$
6,681

 
$
6,681

 
$

 
 
 
 
 
 
 
 
 
 
 
 
Level 1:
 
 
 
 
 
 
 
 
 
 
 
Money market funds
6,092

 

 

 
6,092

 
6,092

 

Corporate securities
3,485

 

 
(304
)
 
3,181

 

 
3,181

Subtotal
9,577

 

 
(304
)
 
9,273

 
6,092

 
3,181

 
 
 
 
 
 
 
 
 
 
 
 
Total
$
16,258

 
$

 
$
(304
)
 
$
15,954

 
$
12,773

 
$
3,181

The following tables set forth the Company’s cash and cash equivalents and Corporate Securities’ adjusted cost, gross unrealized gains, gross unrealized losses, gross realized gains, gross realized 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 December 31, 2018 and 2017 (in thousands):
 
December 31, 2018
 
Adjusted Cost
 
Unrealized Gains
 
Unrealized Losses
 
Fair Value
 
Cash and Cash Equivalents
 
Long-Term Notes Receivables and Other Assets, net
Cash
$
6,681

 
$

 
$

 
$
6,681

 
$
6,681

 
$

 
 
 
 
 
 
 
 
 
 
 
 
Level 1:
 
 
 
 
 
 
 
 
 
 
 
Money market funds
6,092

 

 

 
6,092

 
6,092

 

Corporate securities
3,485

 

 
(304
)
 
3,181

 

 
3,181

Subtotal
9,577

 

 
(304
)
 
9,273

 
6,092

 
3,181

 
 
 
 
 
 
 
 
 
 
 
 
Total
$
16,258

 
$

 
$
(304
)
 
$
15,954

 
$
12,773

 
$
3,181


 
December 31, 2017
 
Adjusted Cost
 
Unrealized Gains
 
Unrealized Losses
 
Fair Value
 
Cash and Cash Equivalents
 
Long-Term Notes Receivables and Other Assets, net
Cash
$
3,866

 
$

 
$

 
$
3,866

 
$
3,866

 

 
 
 
 
 
 
 
 
 
 
 
 
Level 1:
 
 
 
 
 
 
 
 
 
 
 
Money market funds
6

 

 

 
6

 
6

 

Corporate securities
4,018

 

 
(1,315
)
 
2,703

 

 
2,703

Subtotal
4,024

 

 
(1,315
)
 
2,709

 
6

 
2,703

 
 
 
 
 
 
 
 
 
 
 
 
Total
$
7,890

 
$

 
$
(1,315
)
 
$
6,575

 
$
3,872

 
$
2,703

Components of Long-Term Debt Including Associated Interest Rates and Related Fair Values
Components of long-term debt including the associated interest rates and related fair values are as follows (in thousands, except interest rates):
 
 
March 31, 2019
 
December 31, 2018
 
Stated Interest Rate
Issuance
 
Face Value
 
Estimated Fair Value
 
Face Value
 
Estimated Fair Value
 
2020 Notes
 
679,299

 
669,110

 
679,299

 
643,568

 
8.75
%
2022 Private Placement Notes
 
270,000

 
271,323

 
270,000

 
257,073

 
8.875
%
2022 Notes
 
900,000

 
904,410

 
900,000

 
855,000

 
7.875
%
2023 Notes
 
400,000

 
342,120

 
400,000

 
326,000

 
7.625
%
Term Loan
 
805,950

 
805,950

 
807,975

 
807,975

 
N/A
Total
 
$
3,055,249

 
$
2,992,913

 
$
3,057,274

 
$
2,889,616

 
 
Components of the Company's debt including the associated interest rates and related fair values (in thousands, except interest rates) are as follows:
 
Issuance
 
December 31, 2018
 
December 31, 2017
 
Stated Interest
Rate
 
Face Value
 
Estimated Fair Value
 
Face Value
 
Estimated Fair Value
 
2019 Notes
 
$

 
$

 
$
269,465

 
$
273,507

 
6.375
%
2020 Notes
 
679,299

 
643,568

 
930,000

 
952,134

 
8.75
%
2022 Notes Private Placement Notes
 
270,000

 
257,073

 
270,000

 
276,486

 
8.875
%
2022 Notes
 
900,000

 
855,000

 
900,000

 
966,420

 
7.875
%
2023 Notes
 
400,000

 
326,000

 
400,000

 
425,000

 
7.625
%
Term Loan
 
807,975

 
807,975

 

 

 
N/A

Total
 
$
3,057,274

 
$
2,889,616

 
$
2,769,465

 
$
2,893,547

 


Schedule of Derivative Liabilities at Fair Value
he following table summarizes the fair value and the notional amount of the Company’s outstanding derivative instrument as of March 31, 2019 and December 31, 2018 (in thousands):
 
March 31, 2019
 
December 31, 2018
Consumer Financing Program Contractual Obligations:
 
 
 
Fair value
$
120,671

 
$
117,620

Notional amount
385,955

 
368,708

 
 
 
 
Classified on the condensed consolidated unaudited balance sheets as:
 
 
 
Accrued expenses and other current liabilities
70,137

 
67,710

Other long-term obligations
50,534

 
49,910

Total Consumer Financing Program Contractual Obligation
$
120,671

 
$
117,620

The following table summarizes the fair value and the notional amount of the Company’s outstanding derivative instrument as of December 31, 2018 and 2017 (in thousands):
 
December 31,
 
2018
 
2017
Consumer Financing Program Contractual Obligations:
 
 
 
Fair value
$
117,620

 
$
46,496

Notional amount
368,708

 
163,032

Classified on the consolidated balance sheets as:
 
 
 
Accrued expenses and other current liabilities
67,710

 
25,473

Other long-term obligations
49,910

 
21,023

Total Consumer Financing Program Contractual Obligation
$
117,620

 
$
46,496

Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation
he following table summarizes the change in the fair value of the Level 3 outstanding derivative liability instrument for the three months ended March 31, 2019 and the twelve months ended December 31, 2018 (in thousands):
 
Three months ended March 31, 2019
 
Twelve months ended December 31, 2018
Balance, beginning of period
$
117,620

 
$
46,496

Additions
16,480

 
93,095

Settlements
(14,856
)
 
(34,587
)
Losses included in earnings
1,427

 
12,616

Balance, end of period
$
120,671

 
$
117,620



The following table summarizes the change in the fair value of the Level 3 outstanding derivative instrument for the years ended December 31, 2018 and 2017 (in thousands):
 
December 31,
 
2018
 
2017
Balance, beginning of period
$
46,496

 
$

Additions
93,095

 
44,913

Settlements
(34,587
)
 
(7,972
)
Losses included in earnings
12,616

 
9,555

Balance, end of period
$
117,620

 
$
46,496

v3.19.2
Leases (Tables)
3 Months Ended
Mar. 31, 2019
Leases [Abstract]  
Lease Expense
The components of lease expense were as follows (in thousands):
 
Three Months Ended March 31,
 
2019
Operating lease cost
$
4,298

 
 
Finance lease cost:
 
Amortization of right-of-use assets
$
1,376

Interest on lease liabilities
154

Total finance lease cost
$
1,530

Supplemental cash flow information related to leases was as follows (in thousands):
 
Three Months Ended March 31,
 
2019
Cash paid for amounts included in the measurement of lease liabilities:
 
Operating cash flows from operating leases
$
(4,375
)
Operating cash flows from finance leases
(154
)
Financing cash flows from finance leases
(2,136
)
 
 
Right-of-use assets obtained in exchange for lease obligations:
 
Operating leases
$
584

Finance leases
230

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, 2019
Operating Leases
 
Operating lease right-of-use assets
$
72,891

 
 
Current operating lease liabilities
$
11,749

Operating lease liabilities
71,964

Total operating lease liabilities
$
83,713

 
 
Finance Leases
 
Property, plant and equipment, gross
$
45,440

Accumulated depreciation
(23,205
)
Property, plant and equipment, net
$
22,235

 
 
Current finance lease liabilities
$
7,114

Finance lease liabilities
3,952

Total finance lease liabilities
$
11,066

 
 
Weighted Average Remaining Lease Term
 
Operating leases
7 years

Finance leases
1.5 years

Weighted Average Discount Rate
 
Operating leases
7
%
Finance leases
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,
 
 
 
2019 (excluding the three months ended March 31, 2019)
$
13,163

 
$
5,827

2020
16,345

 
5,167

2021
15,649

 
384

2022
14,514

 
38

2023
14,553

 

Thereafter
32,404

 

Total lease payments
106,628

 
11,416

Less imputed interest
(22,915
)
 
(350
)
Total
$
83,713

 
$
11,066

Schedule Of Maturities Of Operating Leases Liabilities
Maturities of lease liabilities were as follows (in thousands):
 
Operating Leases
 
Finance Leases
Year Ending December 31,
 
 
 
2019 (excluding the three months ended March 31, 2019)
$
13,163

 
$
5,827

2020
16,345

 
5,167

2021
15,649

 
384

2022
14,514

 
38

2023
14,553

 

Thereafter
32,404

 

Total lease payments
106,628

 
11,416

Less imputed interest
(22,915
)
 
(350
)
Total
$
83,713

 
$
11,066

v3.19.2
Segment Reporting and Business Concentrations (Tables)
3 Months Ended 12 Months Ended
Mar. 31, 2019
Dec. 31, 2018
Segment Reporting [Abstract]    
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas
Revenues disaggregated by geographic region were as follows (in thousands):

 
  
United States
 
Canada
 
Total
Revenue from external customers
  
 
 
 
 
 
Three months ended March 31, 2019
  
$
258,436

 
$
17,813

 
$
276,249

Three months ended March 31, 2018
  
228,542

 
18,055

 
246,597

Revenues by geographic region were as follows (in thousands):

 
United States
 
Canada
 
Total
Revenue from external customers
 
 
 
 
 
Year ended December 31, 2018
$
977,877

 
$
72,564

 
$
1,050,441

Year ended December 31, 2017
$
816,026

 
$
65,957

 
$
881,983

Year ended December 31, 2016
$
700,471

 
$
57,436

 
$
757,907

v3.19.2
Guarantor and Non-Guarantor Supplemental Financial Information (Tables)
3 Months Ended 12 Months Ended
Mar. 31, 2019
Dec. 31, 2018
Guarantor And Non Guarantor Supplemental Financial Information [Abstract]    
Supplemental Condensed Consolidating Balance Sheet
Supplemental Condensed Consolidating Balance Sheet
March 31, 2019
(in thousands)
(unaudited)

 
Parent
 
APX
Group, Inc.
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
 
Current assets
$

 
$
2,919

 
$
335,398

 
$
119,909

 
$
(289,784
)
 
$
168,442

Property, plant and equipment, net

 

 
64,188

 
426

 

 
64,614

Capitalized contract costs, net

 

 
1,027,364

 
65,501

 

 
1,092,865

Deferred financing costs, net

 
1,797

 

 

 

 
1,797

Investment in subsidiaries

 
1,650,064

 

 

 
(1,650,064
)
 

Intercompany receivable

 

 
6,303

 

 
(6,303
)
 

Intangible assets, net

 

 
218,194

 
17,389

 

 
235,583

Goodwill

 

 
809,678

 
25,726

 

 
835,404

Operating lease right-of-use assets

 

 
72,661

 
230

 

 
72,891

Long-term notes receivables and other assets

 
106

 
104,486

 
17,310

 
(106
)
 
121,796

Total Assets
$

 
$
1,654,886

 
$
2,638,272

 
$
246,491

 
$
(1,946,257
)
 
$
2,593,392

Liabilities and Stockholders’ (Deficit) Equity
 
 
 
 
 
 
 
 
 
 
 
Current liabilities
$

 
$
63,260

 
$
558,398

 
$
192,835

 
$
(289,784
)
 
$
524,709

Intercompany payable

 

 

 
6,303

 
(6,303
)
 

Notes payable and revolving credit facility, net of current portion

 
3,075,990

 

 

 

 
3,075,990

Finance lease obligations, net of current portion

 

 
3,952

 

 

 
3,952

Deferred revenue, net of current portion

 

 
309,896

 
16,735

 

 
326,631

Operating lease liabilities

 

 
71,878

 
86

 

 
71,964

Other long-term obligations

 

 
73,043

 
347

 

 
73,390

Accumulated losses of investee, net
1,484,364

 
 
 
 
 
 
 
(1,484,364
)
 

Deferred income tax liability

 

 
106

 
1,120

 
(106
)
 
1,120

Total (deficit) equity
(1,484,364
)
 
(1,484,364
)
 
1,620,999

 
29,065

 
(165,700
)
 
(1,484,364
)
Total liabilities and stockholders’ (deficit) equity
$

 
$
1,654,886

 
$
2,638,272

 
$
246,491

 
$
(1,946,257
)
 
$
2,593,392









Supplemental Condensed Consolidating Balance Sheet
December 31, 2018
(in thousands)
 
 
Parent
 
APX
Group, Inc.
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
 
Current assets
$

 
$
12,951

 
$
269,770

 
$
103,451

 
$
(262,674
)
 
$
123,498

Property, plant and equipment, net

 

 
72,937

 
464

 

 
73,401

Capitalized contract costs, net

 

 
1,047,532

 
68,243

 

 
1,115,775

Deferred financing costs, net

 
2,058

 

 

 

 
2,058

Investment in subsidiaries

 
1,662,367

 

 

 
(1,662,367
)
 

Intercompany receivable

 

 
6,303

 

 
(6,303
)
 

Intangible assets, net

 

 
236,677

 
18,408

 

 
255,085

Goodwill

 

 
809,678

 
25,177

 

 
834,855

Long-term notes receivables and other assets

 
106

 
102,695

 
17,124

 
(106
)
 
119,819

Total Assets
$

 
$
1,677,482

 
$
2,545,592

 
$
232,867

 
$
(1,931,450
)
 
$
2,524,491

Liabilities and Stockholders’ (Deficit) Equity
 
 
 
 
 
 
 
 
 
 
 
       Current liabilities
$

 
$
36,988

 
$
507,063

 
$
182,159

 
$
(262,674
)
 
$
463,536

Intercompany payable

 

 

 
6,303

 
(6,303
)
 

Notes payable and revolving credit facility, net of current portion

 
3,037,095

 

 

 

 
3,037,095

Capital lease obligations, net of current portion

 

 
5,570

 
1

 

 
5,571

Deferred revenue, net of current portion

 

 
306,653

 
16,932

 

 
323,585

Accumulated Losses of Investee, net
1,396,601

 


 


 


 
(1,396,601
)
 

Other long-term obligations

 

 
90,209

 

 

 
90,209

Deferred income tax liability

 

 
106

 
1,096

 
(106
)
 
1,096

Total (deficit) equity
(1,396,601
)
 
(1,396,601
)
 
1,635,991

 
26,376

 
(265,766
)
 
(1,396,601
)
Total liabilities and stockholders’ (deficit) equity
$

 
$
1,677,482

 
$
2,545,592

 
$
232,867

 
$
(1,931,450
)
 
$
2,524,491

Condensed Consolidating Balance Sheet
December 31, 2018
(In thousands)
 
 
Parent
 
APX
Group, Inc.
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
 
Current assets
$

 
$
12,951

 
$
269,770

 
$
103,451

 
$
(262,674
)
 
$
123,498

Property and equipment, net

 

 
72,937

 
464

 

 
73,401

Capitalized contract costs, net

 

 
1,047,532

 
68,243

 

 
1,115,775

Deferred financing costs, net

 
2,058

 

 

 

 
2,058

Investment in subsidiaries

 
1,662,367

 

 

 
(1,662,367
)
 

Intercompany receivable

 

 
6,303

 

 
(6,303
)
 

Intangible assets, net

 

 
236,677

 
18,408

 

 
255,085

Goodwill

 

 
809,678

 
25,177

 

 
834,855

Long-term notes receivables and other assets, net

 
106

 
102,695

 
17,124

 
(106
)
 
119,819

Total Assets
$

 
$
1,677,482

 
$
2,545,592

 
$
232,867

 
$
(1,931,450
)
 
$
2,524,491

Liabilities and Stockholders’ (Deficit) Equity
 
 
 
 
 
 
 
 
 
 
 
Current liabilities
$

 
$
36,988

 
$
507,063

 
$
182,159

 
$
(262,674
)
 
$
463,536

Intercompany payable

 

 

 
6,303

 
(6,303
)
 

Notes payable and revolving line of credit, net of current portion

 
3,037,095

 

 

 

 
3,037,095

Capital lease obligations, net of current portion

 

 
5,570

 
1

 

 
5,571

Deferred revenue, net of current portion

 

 
306,653

 
16,932

 

 
323,585

Accumulated losses of investee
1,396,601

 


 


 


 
(1,396,601
)
 

Other long-term obligations

 

 
90,209

 

 

 
90,209

Deferred income tax liability

 

 
106

 
1,096

 
(106
)
 
1,096

Total (deficit) equity
(1,396,601
)
 
(1,396,601
)
 
1,635,991

 
26,376

 
(265,766
)
 
(1,396,601
)
Total liabilities and stockholders’ (deficit) equity
$

 
$
1,677,482

 
$
2,545,592

 
$
232,867

 
$
(1,931,450
)
 
$
2,524,491

















Condensed Consolidating Balance Sheet
December 31, 2017
(In thousands)
 
 
Parent
 
APX
Group, Inc.
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
 
Current assets
$

 
$
4,150

 
$
284,293

 
$
49,935

 
$
(162,413
)
 
$
175,965

Property and equipment, net

 

 
77,345

 
736

 

 
78,081

Subscriber acquisition costs, net

 

 
1,214,678

 
93,880

 

 
1,308,558

Deferred financing costs, net

 
3,099

 

 

 

 
3,099

Investment in subsidiaries

 
2,188,221

 

 

 
(2,188,221
)
 

Intercompany receivable

 

 
6,303

 

 
(6,303
)
 

Intangible assets, net

 

 
350,710

 
26,741

 

 
377,451

Goodwill

 

 
809,678

 
27,292

 

 
836,970

Long-term notes receivables and other assets, net

 
106

 
78,173

 
10,550

 
(106
)
 
88,723

Total Assets
$

 
$
2,195,576

 
$
2,821,180

 
$
209,134

 
$
(2,357,043
)
 
$
2,868,847

Liabilities and Stockholders’ (Deficit) Equity
 
 
 
 
 
 
 
 
 
 
 
Current liabilities
$

 
$
28,805

 
$
343,398

 
$
128,581

 
$
(162,413
)
 
$
338,371

Intercompany payable

 

 

 
6,303

 
(6,303
)
 

Notes payable and revolving line of credit, net of current portion

 
2,820,297

 

 

 

 
2,820,297

Capital lease obligations, net of current portion

 

 
10,791

 
298

 

 
11,089

Deferred revenue, net of current portion

 

 
248,643

 
15,912

 

 
264,555

Accumulated losses of investee
653,526

 


 


 


 
(653,526
)
 

Other long-term obligations

 

 
79,020

 

 

 
79,020

Deferred income tax liability

 

 
106

 
9,041

 
(106
)
 
9,041

Total (deficit) equity
(653,526
)
 
(653,526
)
 
2,139,222

 
48,999

 
(1,534,695
)
 
(653,526
)
Total liabilities and stockholders’ (deficit) equity
$

 
$
2,195,576

 
$
2,821,180

 
$
209,134

 
$
(2,357,043
)
 
$
2,868,847

Supplemental Condensed Consolidating Statements of Operations and Comprehensive (Loss) Income
Supplemental Condensed Consolidating Statements of Operations and Comprehensive Loss
For the Three Months Ended March 31, 2019
(in thousands)
(unaudited)
 
 
Parent
 
APX
Group, Inc.
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Revenues
$

 
$

 
$
263,539

 
$
12,912

 
$
(202
)
 
$
276,249

Costs and expenses

 

 
291,509

 
12,920

 
(202
)
 
304,227

Loss from operations

 

 
(27,970
)
 
(8
)
 

 
(27,978
)
Loss from subsidiaries
(89,156
)
 
(25,981
)
 

 

 
115,137

 

Other expense (income), net

 
63,175

 
(52
)
 
(1,644
)
 

 
61,479

(Loss) income before income tax expenses
(89,156
)
 
(89,156
)
 
(27,918
)
 
1,636

 
115,137

 
(89,457
)
Income tax expense (benefit)

 

 
182

 
(483
)
 

 
(301
)
Net (loss) income
(89,156
)
 
(89,156
)
 
(28,100
)
 
2,119

 
115,137

 
(89,156
)
Other comprehensive loss, net of tax effects:
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income
(89,156
)
 
(89,156
)
 
(28,100
)
 
2,119

 
115,137

 
(89,156
)
Foreign currency translation adjustment
570

 
570

 

 
570

 
(1,140
)
 
570

Total other comprehensive income
570


570

 

 
570

 
(1,140
)
 
570

Comprehensive (loss) income
$
(88,586
)
 
$
(88,586
)
 
$
(28,100
)
 
$
2,689

 
$
113,997

 
$
(88,586
)



Supplemental Condensed Consolidating Statements of Operations and Comprehensive Loss
For the Three Months Ended March 31, 2018
(in thousands)
(unaudited)
 
 
Parent
 
APX
Group, Inc.
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Revenues
$

 
$

 
$
233,788

 
$
13,465

 
$
(656
)
 
$
246,597

Costs and expenses

 

 
305,221

 
13,663

 
(656
)
 
318,228

(Loss) income from operations

 

 
(71,433
)
 
(198
)
 

 
(71,631
)
Loss from subsidiaries
(84,717
)
 
(26,320
)
 

 

 
111,037

 

Other expense (income), net

 
58,397

 
(46,970
)
 
2,092

 

 
13,519

Loss before income tax expenses
(84,717
)
 
(84,717
)
 
(24,463
)
 
(2,290
)
 
111,037

 
(85,150
)
Income tax expense (benefit)

 

 
172

 
(605
)
 

 
(433
)
Net loss
(84,717
)
 
(84,717
)
 
(24,635
)
 
(1,685
)
 
111,037

 
(84,717
)
Other comprehensive loss, net of tax effects:

 

 

 

 

 

Net loss
(84,717
)
 
(84,717
)
 
(24,635
)
 
(1,685
)
 
111,037

 
(84,717
)
Foreign currency translation adjustment
(659
)
 
(659
)
 

 
(659
)
 
1,318

 
(659
)
Total other comprehensive loss
(659
)
 
(659
)
 

 
(659
)
 
1,318

 
(659
)
Comprehensive loss
$
(85,376
)
 
$
(85,376
)
 
$
(24,635
)
 
$
(2,344
)
 
$
112,355

 
$
(85,376
)
 
Supplemental Condensed Consolidating Statements of Cash Flows
Supplemental Condensed Consolidating Statements of Cash Flows
For the Three Months Ended March 31, 2019
(in thousands)
(unaudited)

 
Parent
 
APX
Group, Inc.
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
 
 
Net cash (used in) provided by operating activities
$

 
$

 
$
(43,058
)
 
$
41

 
$

 
$
(43,017
)
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures

 

 
(1,391
)
 

 

 
(1,391
)
Proceeds from sale of capital assets

 

 
(51
)
 

 

 
(51
)
Investment in subsidiary
(118
)
 
(46,487
)
 

 

 
46,605

 

Acquisition of intangible assets

 

 
(369
)
 

 

 
(369
)
Net cash used in investing activities
(118
)
 
(46,487
)
 
(1,811
)
 

 
46,605

 
(1,811
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 
Repayment on notes payable

 
(2,025
)
 

 

 

 
(2,025
)
Borrowings from revolving credit facility

 
40,000

 

 

 

 
40,000

Proceeds from capital contribution

 

 
46,369

 

 
(46,369
)
 

Repayments of finance lease obligations

 

 
(2,064
)
 
(72
)
 

 
(2,136
)
Return of capital
118

 
118

 
(118
)
 

 
(236
)
 
(118
)
Net cash provided by (used in) financing activities
118

 
38,093

 
44,187

 
(72
)
 
(46,605
)
 
35,721

Effect of exchange rate changes on cash

 

 

 
25

 

 
25

Net decrease in cash and cash equivalents

 
(8,394
)
 
(682
)
 
(6
)
 

 
(9,082
)
Cash and cash equivalents:
 
 
 
 
 
 
 
 
 
 
 
Beginning of period

 
11,130

 
682

 
961

 

 
12,773

End of period
$

 
$
2,736

 
$

 
$
955

 
$

 
$
3,691


Supplemental Condensed Consolidating Statements of Cash Flows
For the Three Months Ended March 31, 2018
(in thousands)
(unaudited)
 
 
Parent
 
APX
Group, Inc.
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
 
 
Net cash (used in) provided by operating activities
$

 
$

 
$
(59,159
)
 
$
(423
)
 
$

 
$
(59,582
)
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures

 

 
(6,407
)
 

 

 
(6,407
)
Investment in subsidiary
966

 
(16,450
)
 

 

 
15,484

 

Acquisition of intangible assets

 

 
(849
)
 

 

 
(849
)
Proceeds from sale of intangibles

 

 
53,693

 

 

 
53,693

Proceeds from sale of capital assets

 

 
149

 

 

 
149

Net cash provided by (used in) investing activities
966

 
(16,450
)
 
46,586

 

 
15,484

 
46,586

Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 
Borrowings from revolving credit facility

 
57,000

 

 

 

 
57,000

Repayments on revolving credit facility

 
(40,000
)
 

 

 

 
(40,000
)
Proceeds from capital contributions

 

 
17,416

 

 
(17,416
)
 

Repayments of capital lease obligations

 

 
(3,305
)
 
(113
)
 

 
(3,418
)
Return of capital
(966
)
 
(966
)
 
(966
)
 

 
1,932

 
(966
)
Net cash (used in) provided by financing activities
(966
)
 
16,034

 
13,145

 
(113
)
 
(15,484
)
 
12,616

Effect of exchange rate changes on cash

 

 

 
(19
)
 

 
(19
)
Net (decrease) increase in cash and cash equivalents

 
(416
)
 
572

 
(555
)
 

 
(399
)
Cash and cash equivalents:
 
 
 
 
 
 
 
 
 
 
 
Beginning of period

 
3,661

 
(572
)
 
783

 

 
3,872

End of period
$

 
$
3,245

 
$

 
$
228

 
$

 
$
3,473

Condensed Consolidating Statements of Cash Flows
For the Year ended December 31, 2018
(In thousands)
 
 
Parent
 
APX
Group, Inc.
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
 
 
Net cash (used in) provided by operating activities
$

 
$

 
$
(220,952
)
 
$
453

 
$

 
$
(220,499
)
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures

 

 
(19,409
)
 
(3
)
 

 
(19,412
)
Proceeds from sale of intangibles

 

 
53,693

 

 

 
53,693

Proceeds from sale of capital assets

 

 
127

 

 

 
127

Investment in subsidiary
(1,571
)
 
(201,292
)
 

 

 
202,863

 

Acquisition of intangible assets

 

 
(1,486
)
 

 

 
(1,486
)
Net cash (used in) provided by investing activities
(1,571
)
 
(201,292
)
 
32,925

 
(3
)
 
202,863

 
32,922

Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 
Proceeds from notes payable

 
810,000

 

 

 

 
810,000

Repayment on notes payable

 
(522,191
)
 

 

 

 
(522,191
)
Borrowings from revolving line of credit

 
201,000

 

 

 

 
201,000

Repayment of revolving line of credit

 
(261,000
)
 

 

 

 
(261,000
)
Proceeds from capital contribution
4,700

 
4,700

 
204,421

 

 
(209,121
)
 
4,700

Repayments of capital lease obligations

 

 
(12,011
)
 
(343
)
 

 
(12,354
)
Financing costs

 
(11,317
)
 

 

 

 
(11,317
)
Deferred financing costs

 
(9,302
)
 

 

 

 
(9,302
)
Return of capital
(3,129
)
 
(3,129
)
 
(3,129
)
 

 
6,258

 
(3,129
)
Net cash provided by (used in) financing activities
1,571

 
208,761

 
189,281

 
(343
)
 
(202,863
)
 
196,407

Effect of exchange rate changes on cash

 

 

 
71

 

 
71

Net increase in cash

 
7,469

 
1,254

 
178

 

 
8,901

Cash:
 
 
 
 
 
 
 
 
 
 
 
Beginning of period

 
3,661

 
(572
)
 
783

 

 
3,872

End of period
$

 
$
11,130

 
$
682

 
$
961

 
$

 
$
12,773


Condensed Consolidating Statements of Cash Flows
For the Year ended December 31, 2017
(In thousands)
 
Parent
 
APX
Group, Inc.
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
 
 
Net cash (used in) provided by operating activities
$

 
$

 
$
(313,290
)
 
$
3,958

 
$

 
$
(309,332
)
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures

 

 
(20,391
)
 

 

 
(20,391
)
Proceeds from sale of capital assets

 

 
776

 

 

 
776

Investment in subsidiary
1,151

 
(325,222
)
 

 

 
324,071

 

Acquisition of intangible assets

 

 
(1,745
)
 

 

 
(1,745
)
Other assets

 

 
(301
)
 

 

 
(301
)
Net cash provided by (used in) investing activities
1,151

 
(325,222
)
 
(21,661
)
 

 
324,071

 
(21,661
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 
Proceeds from notes payable

 
724,750

 

 

 

 
724,750

Repayment on notes payable

 
(450,000
)
 

 

 

 
(450,000
)
Borrowings from revolving line of credit

 
196,895

 

 

 

 
196,895

Repayment of revolving line of credit

 
(136,895
)
 

 

 

 
(136,895
)
Proceeds from capital contribution

 

 
326,373

 

 
(326,373
)
 

Payment of intercompany settlement

 

 
(2,983
)
 

 

 
(2,983
)
Intercompany receivable

 
 
 
3,621

 

 
(3,621
)
 

Intercompany payable

 

 

 
(3,621
)
 
3,621

 

Repayments of capital lease obligations

 

 
(9,667
)
 
(340
)
 

 
(10,007
)
Financing costs

 
(18,277
)
 

 

 

 
(18,277
)
Deferred financing costs

 
(11,119
)
 

 

 

 
(11,119
)
Return of capital
(1,151
)
 
(1,151
)
 
(1,151
)
 

 
2,302

 
(1,151
)
Net cash (used in) provided by financing activities
(1,151
)
 
304,203

 
316,193

 
(3,961
)
 
(324,071
)
 
291,213

Effect of exchange rate changes on cash

 

 

 
132

 

 
132

Net increase (decrease) in cash

 
(21,019
)
 
(18,758
)
 
129

 

 
(39,648
)
Cash:
 
 
 
 
 
 
 
 
 
 
 
Beginning of period

 
24,680

 
18,186

 
654

 

 
43,520

End of period
$

 
$
3,661

 
$
(572
)
 
$
783

 
$

 
$
3,872


Condensed Consolidating Statements of Cash Flows
For the Year ended December 31, 2016
(In thousands)
 
 
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 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) 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

Condensed Consolidating Statements of Operations and Comprehensive Loss  
Condensed Consolidating Statements of Operations and Comprehensive Loss
For the Year ended December 31, 2018
(In thousands)
 
 
Parent
 
APX
Group, Inc.
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Revenues
$

 
$

 
$
998,190

 
$
54,818

 
$
(2,567
)
 
$
1,050,441

Costs and expenses

 

 
1,240,570

 
54,497

 
(2,567
)
 
1,292,500

(Loss) income from operations

 

 
(242,380
)
 
321

 

 
(242,059
)
Loss from subsidiaries
(467,914
)
 
(211,665
)
 

 

 
679,579

 

Other expense (income), net

 
256,249

 
(35,936
)
 
7,153

 

 
227,466

Loss before income taxes
(467,914
)
 
(467,914
)
 
(206,444
)
 
(6,832
)
 
679,579

 
(469,525
)
Income tax expense (benefit)

 

 
512

 
(2,123
)
 

 
(1,611
)
Net loss
$
(467,914
)
 
$
(467,914
)
 
$
(206,956
)
 
$
(4,709
)
 
$
679,579

 
$
(467,914
)
Other comprehensive loss, net of tax effects:
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustment
(2,218
)
 
(2,218
)
 

 
(2,218
)
 
4,436

 
(2,218
)
Total other comprehensive loss, net of tax effects
(2,218
)
 
(2,218
)
 

 
(2,218
)
 
4,436

 
(2,218
)
Comprehensive loss
$
(470,132
)
 
$
(470,132
)

$
(206,956
)
 
$
(6,927
)
 
$
684,015

 
$
(470,132
)


Condensed Consolidating Statements of Operations and Comprehensive Loss
For the Year ended December 31, 2017
(In thousands)
 
 
Parent
 
APX
Group, Inc.
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Revenues
$

 
$

 
$
841,658

 
$
43,015

 
$
(2,690
)
 
$
881,983

Costs and expenses

 

 
997,247

 
42,919

 
(2,690
)
 
1,037,476

(Loss) income from operations

 

 
(155,589
)
 
96

 

 
(155,493
)
Loss from subsidiaries
(410,199
)
 
(165,497
)
 

 

 
575,696

 

Other expense (income), net

 
244,702

 
13,545

 
(4,619
)
 

 
253,628

(Loss) income before income taxes
(410,199
)
 
(410,199
)
 
(169,134
)
 
4,715

 
575,696

 
(409,121
)
Income tax expense (benefit)

 

 
(228
)
 
1,306

 

 
1,078

Net (loss) income
$
(410,199
)
 
$
(410,199
)
 
$
(168,906
)
 
$
3,409

 
$
575,696

 
$
(410,199
)
Other comprehensive income (loss), net of tax effects:
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustment
3,155

 
3,155

 

 
3,155

 
(6,310
)
 
3,155

Unrealized gain on marketable securities
(1,693
)
 
(1,693
)
 
(1,693
)
 

 
3,386

 
(1,693
)
Total other comprehensive income (loss), net of tax effects
1,462

 
1,462

 
(1,693
)
 
3,155

 
(2,924
)
 
1,462

Comprehensive (loss) income
$
(408,737
)
 
$
(408,737
)
 
$
(170,599
)
 
$
6,564

 
$
572,772

 
$
(408,737
)


Condensed Consolidating Statements of Operations and Comprehensive Loss
For the Year ended December 31, 2016
(In thousands)
 
 
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 before income taxes
(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 income, net of tax effects:
 
 
 
 
 
 
 
 
 
 

Foreign currency translation adjustment
2,482

 
2,482

 

 
2,482

 
(4,964
)
 
2,482

Unrealized gain on marketable securities
1,011

 
1,011

 
1,011

 

 
(2,022
)
 
1,011

Total other comprehensive income, net of tax effects
3,493

 
3,493

 
1,011

 
2,482

 
(6,986
)
 
3,493

Comprehensive loss
$
(272,464
)
 
$
(272,464
)
 
$
(70,393
)
 
$
4,249

 
$
338,608

 
$
(272,464
)
v3.19.2
Significant Accounting Policies (Tables)
3 Months Ended 12 Months Ended
Mar. 31, 2019
Dec. 31, 2018
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, 2019
 
Twelve Months Ended December 31, 2018
Beginning balance
$
5,594

 
$
5,356

Provision for doubtful accounts
5,918

 
19,405

Write-offs and adjustments
(5,704
)
 
(19,167
)
Balance at end of period
$
5,808

 
$
5,594

The following table summarizes the RIC receivables (in thousands):
 
March 31, 2019
 
December 31, 2018
RIC receivables, gross
$
173,254

 
$
175,250

Deferred interest
(29,612
)
 
(34,163
)
RIC receivables, net of deferred interest
$
143,642

 
$
141,087

 
 
 
 
Classified on the condensed consolidated unaudited balance sheets as:
 
 
 
Accounts and notes receivable, net
$
35,370

 
$
32,185

Long-term notes receivables and other assets, net
108,272

 
108,902

RIC receivables, net
$
143,642

 
$
141,087

The changes in the Company’s allowance for accounts receivable were as follows for the periods ended (in thousands):
 
 
Year ended December 31,
 
2018
 
2017
 
2016
Beginning balance
$
5,356

 
$
4,138

 
$
3,541

Provision for doubtful accounts
19,405

 
22,465

 
19,624

Write-offs and adjustments
(19,167
)
 
(21,247
)
 
(19,027
)
Balance at end of period
$
5,594

 
$
5,356

 
$
4,138

The following table summarizes the installment receivables (in thousands):
 
December 31, 2018
 
December 31, 2017
RIC receivables, gross
$
175,250

 
$
131,024

Deferred interest
(34,163
)
 
(36,048
)
RIC receivables, net of deferred interest
$
141,087

 
$
94,976

 
 
 
 
Classified on the consolidated balance sheets as:
 
 
 
Accounts and notes receivable, net
$
32,185

 
$
16,469

Long-term notes receivables and other assets, net
108,902

 
78,507

RIC receivables, net
$
141,087

 
$
94,976

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,
 
2019
 
2018
Amortization of capitalized contract costs
$
105,028

 
$
95,363

Amortization of definite-lived intangibles
20,272

 
22,720

Depreciation of property, plant and equipment
5,921

 
6,175

Total depreciation and amortization
$
131,221

 
$
124,258

The Company’s depreciation and amortization included in the consolidated statements of operations consisted of the following (in thousands):
 
Year ended December 31,
 
2018
 
2017
 
2016
Amortization of capitalized contract costs
$
398,174

 
$

 
$

Amortization of subscriber acquisition costs

 
206,153

 
154,877

Amortization of definite-lived intangibles
90,945

 
101,827

 
116,865

Depreciation of property, plant and equipment
24,963

 
21,275

 
16,800

Total depreciation and amortization
$
514,082

 
$
329,255

 
$
288,542

v3.19.2
Revenue and Capitalized Contract Costs (Tables)
12 Months Ended
Dec. 31, 2018
Revenue from Contract with Customer [Abstract]  
Schedule of New Accounting Pronouncement
The Company adopted Topic 606 using the modified retrospective method. The cumulative effect of applying the new standard to all contracts with subscribers that were not completed as of January 1, 2018 was recorded as an adjustment to accumulated deficit as of the adoption date. As a result of applying the modified retrospective method to adopt the new revenue guidance, the following cumulative catch-up adjustments were made to select consolidated balance sheet line items as of January 1, 2018 (in thousands):
Consolidated Balance Sheets
 
 
 
 
 
 
 
As Reported
 
Adjustments
 
Adjusted
 
December 31, 2017
 
 
January 1, 2018
Assets
 
 
 
 
 
Capitalized contract costs, net
$

 
$
1,020,408

 
$
1,020,408

Subscriber acquisition costs, net
1,308,558

 
(1,308,558
)
 

Long-term notes receivables and other assets, net
88,723

 
2,713

 
91,436

 
 
 
 
 

Liabilities and Stockholders' Deficit
 
 
 
 

Accrued expenses and other current liabilities
74,321

 
10,329

 
84,650

Deferred revenue
88,337

 
39,868

 
128,205

Deferred revenue, net of current portion
264,555

 
(53,062
)
 
211,493

Deferred income tax liabilities
9,041

 
(5,641
)
 
3,400

Accumulated deficit
(1,358,571
)
 
(276,931
)
 
(1,635,502
)
The following tables compare the select reported consolidated balance sheets, statements of operations and cash flows line items to the amounts had the previous guidance been in effect (in thousands):
Consolidated Balance Sheets

 
 
 
December 31, 2018
 
As Reported
 
Balances Without Adoption of Topic 606
 
Effect of Change
Higher/(Lower)
Assets
 
 
 
 
 
Capitalized contract costs, net
$
1,115,775

 
$

 
$
1,115,775

Subscriber acquisition costs, net

 
1,518,188

 
(1,518,188
)
Liabilities and Stockholders' Deficit
 
 

 
 
Accrued expenses and other current liabilities
136,715

 
126,900

 
9,815

Deferred revenue
186,953

 
126,582

 
60,371

Deferred revenue, net of current portion
323,585

 
440,474

 
(116,889
)
Deferred income tax liabilities
1,096

 
8,682

 
(7,586
)
Accumulated deficit
(2,104,097
)
 
(1,754,426
)
 
(349,671
)
Accumulated other comprehensive loss
(28,837
)
 
(30,384
)
 
1,547

Consolidated Statements of Operations and Comprehensive Loss
 
 
 
Year ended December 31, 2018
 
As Reported
 
Balances Without Adoption of Topic 606
 
Effect of Change
Higher/(Lower)
Revenues:
 
 
 
 
 
Recurring and other revenue
$
1,050,441

 
$
950,661

 
$
99,780

Service and other sales revenue

 
46,177

 
(46,177
)
Activation fees

 
9,705

 
(9,705
)
Total revenues
1,050,441

 
1,006,543

 
43,898

Costs and expenses:
 
 

 
 
Operating expenses
355,813

 
385,672

 
(29,859
)
Depreciation and amortization
514,082

 
367,879

 
146,203

Loss from operations
(242,059
)
 
(169,613
)
 
(72,446
)
Income tax (benefit) expense
(1,611
)
 
806

 
(2,417
)
Net loss
(467,914
)
 
(397,885
)
 
(70,029
)
Other comprehensive loss, net of tax effects:
 
 

 
 
Foreign currency translation adjustment
(2,218
)
 
(3,765
)
 
1,547

Total other comprehensive (loss) income
(2,218
)
 
(3,765
)
 
1,547

Comprehensive loss
(470,132
)
 
(401,650
)
 
(68,482
)
Consolidated Statements of Cashflows

 
 
 
Year ended December 31, 2018
 
As Reported
 
Balances Without Adoption of Topic 606
 
Effect of Change
Higher/(Lower)
 
 
 
 
 
 
Cash flows from operating activities:
 
 
 
 
 
Net loss
$
(467,914
)
 
$
(397,885
)
 
$
(70,029
)
Adjustments to reconcile net loss to net cash used in operating activities:
 
 
 
 
 
Amortization of capitalized contract costs
398,174

 

 
398,174

Amortization of subscriber acquisition costs

 
251,971

 
(251,971
)
Changes in operating assets and liabilities:
 
 
 
 
 
Capitalized contract costs – deferred contract costs
(499,252
)
 

 
(499,252
)
Subscriber acquisition costs – deferred contract costs

 
(469,393
)
 
469,393

Accrued expenses and other current liabilities
91,469

 
93,886

 
(2,417
)
Deferred revenue
172,905

 
216,803

 
(43,898
)
Net cash used in operating activities
(220,499
)
 
(220,499
)
 

v3.19.2
Long-Term Debt (Tables)
3 Months Ended 12 Months Ended
Mar. 31, 2019
Dec. 31, 2018
Debt Disclosure [Abstract]    
Schedule Of Other Expense And Loss On Extinguishment And Deferred Financing Costs  
In accordance with ASC 470-50 Debt – Modifications and Extinguishments, the Company performed analyses for the September 2018, August 2017 and February 2017 issuances to determine if the notes repurchased with the proceeds from those issuances were substantially different than the notes issued to determine the appropriate accounting treatment of associated issuance fees. As a result of these analyses, the Company recorded the following amounts of other expense and loss on extinguishment and deferred financing costs during the years ended December 31, 2018, 2017 and 2016 (in thousands):

 
Other expense and loss on extinguishment
 
Deferred financing costs
Issuance
Original premium extinguished
 
Previously deferred financing costs extinguished
 
New financing costs
 
Total other expense and loss on extinguishment
 
Previously deferred financing rolled over
 
New deferred financing costs
 
Total deferred financing costs
For the year ended December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
September 2018 issuance
$
(953
)
 
$
4,207

 
$
11,317

 
$
14,571

 
$

 
$
10,275

 
$
10,275

 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the year ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
August 2017 issuance
$

 
$
1,408

 
$
8,881

 
$
10,289

 
$
473

 
$
4,569

 
$
5,042

February 2017 issuance

 
3,259

 
9,491

 
12,750

 
1,476

 
6,076

 
7,552

Total
$

 
$
4,667

 
$
18,372

 
$
23,039

 
$
1,949

 
$
10,645

 
$
12,594

 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the year ended December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
May 2016 issuance
$
355

 
$
695

 
$
9,036

 
$
10,086

 
$
3,423

 
$
6,628

 
$
10,051

Schedule of Deferred Financing Activity
The following table presents deferred financing activity for the three months ended March 31, 2019 and year ended December 31, 2018 (in thousands):
 
Unamortized Deferred Financing Costs
 
Balance December 31, 2018
 
Additions
 
Early Extinguishment
 
Amortized
 
Balance March 31, 2019
Revolving Credit Facility
$
2,058

 
$

 
$

 
$
(261
)
 
$
1,797

2020 Notes
5,380

 

 

 
(702
)
 
4,678

2022 Private Placement Notes
602

 

 

 
(38
)
 
564

2022 Notes
12,799

 

 

 
(816
)
 
11,983

2023 Notes
3,922

 

 

 
(210
)
 
3,712

Term Loan
9,662

 


 

 
(460
)
 
9,202

Total Deferred Financing Costs
$
34,423

 
$

 
$

 
$
(2,487
)
 
$
31,936


 
Unamortized Deferred Financing Costs
 
Balance December 31, 2017
 
Additions
 
Early Extinguishment
 
Amortized
 
Balance December 31, 2018
Revolving Credit Facility
$
3,099

 
$

 
$

 
$
(1,041
)
 
$
2,058

2019 Notes
2,877

 

 
(1,877
)
 
(1,000
)
 

2020 Notes
11,209

 

 
(2,330
)
 
(3,499
)
 
5,380

2022 Private Placement Notes
752

 

 

 
(150
)
 
602

2022 Notes
16,067

 

 

 
(3,268
)
 
12,799

2023 Notes
4,762

 

 

 
(840
)
 
3,922

Term Loan

 
10,275

 

 
(613
)
 
9,662

Total Deferred Financing Costs
$
38,766

 
$
10,275

 
$
(4,207
)
 
$
(10,411
)
 
$
34,423

The following table presents deferred financing activity for the year ended December 31, 2018 and 2017 (in thousands):

 
Unamortized Deferred Financing Costs
 
Balance 12/31/2017
 
Additions
 
Refinances
 
Early Extinguishment
 
Amortized
 
Balance 12/31/2018
Revolving Credit Facility
$
3,099

 
$

 
$

 
$

 
$
(1,041
)
 
$
2,058

2019 Notes
2,877

 

 

 
(1,877
)
 
(1,000
)
 

2020 Notes
11,209

 

 

 
(2,330
)
 
(3,499
)
 
5,380

2022 Private Placement Notes
752

 

 

 

 
(150
)
 
602

2022 Notes
16,067

 

 

 

 
(3,268
)
 
12,799

2023 Notes
4,762

 

 

 

 
(840
)
 
3,922

Term Loan

 
10,275

 

 

 
(613
)
 
9,662

Total Deferred Financing Costs
$
38,766

 
$
10,275

 
$

 
$
(4,207
)
 
$
(10,411
)
 
$
34,423



 
Unamortized Deferred Financing Costs
 
Balance 12/31/2016
 
Additions
 
Refinances
 
Early Extinguishment
 
Amortized
 
Balance 12/31/2017
Revolving Credit Facility
$
4,420

 
$
399

 
$

 
$

 
$
(1,720
)
 
$
3,099

2019 Notes
11,693

 

 
(1,949
)
 
(4,667
)
 
(2,200
)
 
2,877

2020 Notes
15,053

 

 

 

 
(3,844
)
 
11,209

2022 Private Placement Notes
903

 

 

 

 
(151
)
 
752

2022 Notes
11,714

 
6,076

 
1,476

 

 
(3,199
)
 
16,067

2023 Notes

 
4,569

 
473

 

 
(280
)
 
4,762

Total Deferred Financing Costs
$
43,783

 
$
11,044

 
$

 
$
(4,667
)
 
$
(11,394
)
 
$
38,766

Summary of Debt
The Company’s debt at March 31, 2019 and December 31, 2018 consisted of the following (in thousands): 
 
March 31, 2019
 
Outstanding
Principal
 
Unamortized
Premium (Discount)
 
Unamortized Deferred Financing Costs (1)
 
Net Carrying
Amount
Senior Secured Revolving Credit Facilities
$
40,000

 
$

 
$

 
$
40,000

8.75% Senior Notes due 2020
679,299

 
1,958

 
(4,678
)
 
676,579

8.875% Senior Secured Notes Due 2022
270,000

 
(2,006
)
 
(564
)
 
267,430

7.875% Senior Secured Notes Due 2022
900,000

 
19,028

 
(11,983
)
 
907,045

7.625% Senior Notes Due 2023
400,000

 

 
(3,712
)
 
396,288

Senior Secured Term Loan - noncurrent
797,850

 

 
(9,202
)
 
788,648

Total Long-Term Debt
3,087,149

 
18,980

 
(30,139
)
 
3,075,990

Senior Secured Term Loan - current
8,100

 

 

 
8,100

Total Debt
$
3,095,249

 
$
18,980

 
$
(30,139
)
 
$
3,084,090

 
December 31, 2018
 
Outstanding
Principal
 
Unamortized
Premium (Discount)
 
Unamortized Deferred Financing Costs (1)
 
Net Carrying
Amount
8.75% Senior Notes due 2020
$
679,299

 
$
2,230

 
$
(5,380
)
 
$
676,149

8.875% Senior Secured Notes due 2022
270,000

 
(2,122
)
 
(602
)
 
267,276

7.875% Senior Secured Notes due 2022
900,000

 
20,178

 
(12,799
)
 
907,379

7.625% Senior Notes Due 2023
400,000

 

 
(3,922
)
 
396,078

Senior Secured Term Loan - noncurrent
799,875

 

 
(9,662
)
 
790,213

Total Long-Term Debt
3,049,174

 
20,286

 
(32,365
)
 
3,037,095

Senior Secured Term Loan - current
8,100

 

 

 
8,100

Total Debt
$
3,057,274

 
$
20,286

 
$
(32,365
)
 
$
3,045,195

 
 
(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, 2019 and December 31, 2018 were $1.8 million and $2.1 million, respectively.
The Company’s debt at December 31, 2018 and 2017 consisted of the following (in thousands):
 
 
December 31, 2018
 
Outstanding
Principal
 
Unamortized
Premium
(Discount)
 
Unamortized Deferred Financing Costs (1)
 
Net Carrying
Amount
8.75% Senior Notes due 2020
$
679,299

 
$
2,230

 
$
(5,380
)
 
$
676,149

8.875% Senior Secured Notes Due 2022
270,000

 
(2,122
)
 
(602
)
 
267,276

7.875% Senior Secured Notes Due 2022
900,000

 
20,178

 
(12,799
)
 
907,379

7.625% Senior Notes Due 2023
400,000

 

 
(3,922
)
 
396,078

Term Loan - noncurrent
799,875

 

 
(9,662
)
 
790,213

Total Long-Term Debt
3,049,174

 
20,286

 
(32,365
)
 
3,037,095

Term Loan - current
8,100

 

 

 
8,100

Total Debt
$
3,057,274

 
$
20,286

 
$
(32,365
)
 
$
3,045,195

 
 
December 31, 2017
 
Outstanding
Principal
 
Unamortized
Premium
(Discount)
 
Unamortized Deferred Financing Costs (1)
 
Net Carrying
Amount
Series D Revolving Credit Facility due 2019
$
3,000

 
$

 
$

 
$
3,000

Series A, B Revolving Credit Facilities due 2021
57,000

 

 

 
57,000

6.375% Senior Secured Notes due 2019
269,465

 

 
(2,877
)
 
266,588

8.75% Senior Notes due 2020
930,000

 
4,465

 
(11,209
)
 
923,256

8.875% Senior Secured Notes Due 2022
270,000

 
(2,559
)
 
(752
)
 
266,689

7.875% Senior Secured Notes Due 2022
900,000

 
24,593

 
(16,067
)
 
908,526

7.625% Senior Notes Due 2023
400,000

 

 
(4,762
)
 
395,238

Total Debt
$
2,829,465

 
$
26,499

 
$
(35,667
)
 
$
2,820,297



 
 
(1) Unamortized deferred financing costs related to the revolving credit facilities included in deferred financing costs, net on the consolidated balance sheets at December 31, 2018 and 2017 was $2.1 million and $3.1 million, respectively.
v3.19.2
Restructuring and Asset Impairment Charges (Tables)
3 Months Ended 12 Months Ended
Mar. 31, 2019
Dec. 31, 2018
Restructuring and Related Activities [Abstract]    
Schedule of Restructuring and Asset Impairment Charges  
Restructuring and asset impairment charges were as follows (in thousands):
 
 
Year ended December 31,
 
2018
 
2017
 
2016
Wireless restructuring recoveries:
 
 
 
 
 
Asset recoveries
$

 
$

 
$
(710
)
Contract termination recoveries

 

 
(751
)
Employee severance and termination benefits recoveries

 

 
(77
)
Total wireless restructuring recoveries

 

 
(1,538
)
Loss on subscriber contract sales

 

 
2,551

Employee severance and termination benefits charges
4,683

 

 

Total restructuring and asset impairment charges
$
4,683

 
$

 
$
1,013

Summary of Restructuring Activity
The following table presents accrued restructuring activity for the three months ended March 31, 2019 and the twelve months ended December 31, 2018 (in thousands):

 
Contract
termination
costs
 
Employee severance
and termination
benefits
 
Total
Accrued restructuring balance as of December 31, 2017
$
558

 
$

 
$
558

Restructuring expenses

 
4,683

 
4,683

Cash payments
(91
)
 
(4,341
)
 
(4,432
)
Accrued restructuring balance as of December 31, 2018
467

 
342

 
809

Cash payments
(23
)
 
(257
)
 
(280
)
Accrued restructuring balance as of March 31, 2019
$
444

 
$
85

 
$
529

The following table presents accrued restructuring activity for the years ended December 31, 2018 and 2017.
 
Asset impairments
 
Contract
termination costs
 
Employee severance and
termination benefits
 
Total
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

Cash payments

 
(91
)
 

 
(91
)
Accrued restructuring balance as of December 31, 2017

 
558

 

 
558

Restructuring expenses

 

 
4,683

 
4,683

Cash payments

 
(91
)
 
(4,341
)
 
(4,432
)
Accrued restructuring balance as of December 31, 2018
$

 
$
467

 
$
342

 
$
809

v3.19.2
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Income Tax Provision
The income tax (benefit) expense consisted of the following (in thousands):
 
 
Year ended December 31,
 
2018
 
2017
 
2016
Current income tax:
 
 
 
Federal
$

 
$

 
$

State
512

 
151

 
545

Foreign
(52
)
 
(24
)
 
95

Total
460

 
127

 
640

Deferred income tax:
 
 
 
Federal

 
(326
)
 

State

 
(53
)
 

Foreign
(2,071
)
 
1,330

 
(573
)
Total
(2,071
)
 
951

 
(573
)
Income tax (benefit) expense
$
(1,611
)
 
$
1,078

 
$
67

Reconciliation of Tax Expense Computed at Statutory Federal Rate and Company's Tax Expense
The following reconciles the tax expense computed at the statutory federal rate and the Company’s tax expense (in thousands):
 
 
Year ended December 31,
 
2018
 
2017
 
2016
Computed expected tax expense
$
(98,598
)
 
$
(139,100
)
 
$
(93,770
)
State income taxes, net of federal tax effect
404

 
65

 
360

Foreign income taxes
(690
)
 
(299
)
 
(949
)
Other reconciling items

 
(344
)
 
666

Permanent differences
4,406

 
2,008

 
1,688

Effect of Federal law change

 
166,876

 

Change in valuation allowance
92,867

 
(28,128
)
 
92,072

Income tax (benefit) expense
$
(1,611
)
 
$
1,078

 
$
67

Significant Portions of Deferred Tax Assets and Liabilities
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities were as follows (in thousands) 
 
December 31,
 
2018
 
2017
Gross deferred tax assets:
 
Net operating loss carryforwards
$
591,244

 
$
591,619

Deferred subscriber income
113,103

 
72,389

Interest expense limitation
56,381

 

Accrued expenses and allowances
18,766

 
17,633

Purchased intangibles and deferred financing costs
17,788

 
15,191

Inventory reserves
4,688

 
6,662

Property and equipment

 
1,176

Research and development credits
41

 
41

Valuation allowance
(467,705
)
 
(304,509
)
Total
334,306

 
400,202

Gross deferred tax liabilities:
 
Deferred capitalized contract costs
(332,547
)
 
(408,610
)
Property and equipment
(2,242
)
 

Prepaid expenses
(613
)
 
(633
)
Total
(335,402
)
 
(409,243
)
Net deferred tax liabilities
$
(1,096
)
 
$
(9,041
)
Summary of Net Operating Loss Carryforwards
The Company had net operating loss carryforwards as follows (in thousands):
 
 
December 31,
 
2018
 
2017
Net operating loss carryforwards:
 
 
 
Federal
$
2,405,380

 
$
2,355,153

States
1,656,333

 
1,715,004

Canada
19,753

 
27,326

Total
$
4,081,466

 
$
4,097,483

v3.19.2
Stock-Based Compensation and Equity (Tables)
3 Months Ended 12 Months Ended
Mar. 31, 2019
Dec. 31, 2018
Summary of Incentive Unit Activity  
A summary of the Incentive Unit activity for the years ended December 31, 2018 and 2017 is presented below:
 
 
Incentive Units
 
Weighted Average
Exercise Price
Per Share
 
Weighted Average
Remaining
Contractual
Life (Years)
 
Aggregate
Intrinsic Value
Outstanding, December 31, 2016
85,882,836

 
$
1.19

 
6.81
 
$

Forfeited
(70,000
)
 
1.30

 
 
 
 
Outstanding, December 31, 2017
85,812,836

 
1.19

 
5.81
 

Forfeited
(450,000
)
 
1.93

 
 
 
 
Outstanding, December 31, 2018
85,362,836

 
1.18

 
4.81
 

Unvested shares expected to vest after December 31, 2018
59,663,659

 
1.22

 
4.93
 

Exercisable at December 31, 2018
25,699,177

 
$
1.11

 
4.50
 
$

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,
 
2019
 
2018
Operating expenses
$
43

 
$
18

Selling expenses
87

 
45

General and administrative expenses
727

 
141

Total stock-based compensation
$
857

 
$
204

Stock-based compensation expense in connection with all stock-based awards for the years ended December 31, 2018, 2017 and 2016 is allocated as follows (in thousands):
 
Year ended December 31,
 
2018
 
2017
 
2016
Operating expenses
$
129

 
$
65

 
$
68

Selling expenses
285

 
217

 
(127
)
General and administrative expenses
2,091

 
1,313

 
3,927

Total stock-based compensation
$
2,505

 
$
1,595

 
$
3,868

Vivint Stock Appreciation Rights    
Summary of the SAR Activity  
A summary of the Vivint Group SAR activity for the years ended December 31, 2018 and 2017 is presented below:
 
 
Stock Appreciation
Rights
 
Weighted Average
Exercise Price
Per Share
 
Weighted Average
Remaining
Contractual
Life (Years)
 
Aggregate
Intrinsic Value
Outstanding, December 31, 2016
21,993,158

 
$
0.96

 
8.23
 
$

Granted
13,250,640

 
1.74

 
 
 
 
Forfeited
(2,374,864
)
 
1.12

 
 
 
 
Exercised
(114,644
)
 
0.72

 
 
 
 
Outstanding, December 31, 2017
32,754,290

 
1.26

 
9.21
 

Granted
14,630,000

 
1.79

 
 
 
 
Forfeited
(9,255,137
)
 
1.31

 
 
 
 
Exercised
(117,274
)
 
0.89

 
 
 
 
Outstanding, December 31, 2018
38,011,879

 
1.46

 
8.07
 

Unvested shares expected to vest after December 31, 2018
33,813,668

 
1.51

 
8.28
 

Exercisable at December 31, 2018
4,198,211

 
$
1.02

 
6.30
 
$

v3.19.2
Commitments and Contingencies (Tables)
12 Months Ended
Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]  
Future Minimum Lease Payments
As of December 31, 2018, future minimum lease payments were as follows (in thousands):
 
 
Operating
 
Capital
 
Total
2019
$
16,709

 
$
8,193

 
$
24,902

2020
15,478

 
5,209

 
20,687

2021
14,926

 
363

 
15,289

2022
13,655

 
7

 
13,662

2023
13,701

 

 
13,701

Thereafter
28,824

 

 
28,824

Amounts representing interest

 
(459
)
 
(459
)
Total lease payments
$
103,293

 
$
13,313

 
$
116,606

v3.19.2
Basis of Presentation and Significant Accounting Policies - Additional Information (Detail)
3 Months Ended 12 Months Ended
Mar. 31, 2019
USD ($)
payment
unit
Mar. 31, 2018
USD ($)
Dec. 31, 2018
USD ($)
payment
unit
Dec. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Dec. 31, 2015
USD ($)
Basis Of Presentation And Significant Accounting Policies [Line Items]            
Accounts and notes receivable, net $ 20,000,000   $ 16,500,000 $ 24,300,000    
Allowance for doubtful accounts 5,808,000   5,594,000 5,356,000 $ 4,138,000 $ 3,541,000
Accounts receivable classified as held for sale     0      
Provision for doubtful accounts $ 5,918,000 $ 3,968,000 19,405,000 22,465,000 19,624,000  
Capitalized contract costs, expected period of benefit 5 years          
Equity method investments $ 6,100,000   3,900,000      
Amortization of deferred financing costs and bond premiums and discounts 1,180,000 1,343,000 5,152,000 6,586,000 10,447,000  
Sales commission included in accrued expenses and other liabilities 3,100,000   4,900,000 3,300,000    
Other long-term obligations 16,800,000   17,600,000 18,500,000    
Advertising expenses incurred $ 12,700,000 13,700,000 $ 47,200,000 42,500,000 33,000,000  
Uncertain income tax position, percentage 50.00%          
Number of reporting units | unit 2   2      
Translation (gain) loss $ (1,701,000) 2,075,000        
Issued and unused letters of credit $ 13,900,000   $ 13,800,000 9,500,000    
Vivint Sky Control Panels            
Basis Of Presentation And Significant Accounting Policies [Line Items]            
Percentage of installed panels 82.00%          
2GIG Sale            
Basis Of Presentation And Significant Accounting Policies [Line Items]            
Percentage of installed panels 17.00%   19.00%      
Other Panels            
Basis Of Presentation And Significant Accounting Policies [Line Items]            
Percentage of installed panels 1.00%          
Interest Expense            
Basis Of Presentation And Significant Accounting Policies [Line Items]            
Amortization of deferred financing costs and bond premiums and discounts $ 2,500,000 $ 2,700,000 $ 10,400,000 11,400,000 $ 11,600,000  
Minimum            
Basis Of Presentation And Significant Accounting Policies [Line Items]            
Estimated useful life of intangible assets 5 years   5 years      
Maximum            
Basis Of Presentation And Significant Accounting Policies [Line Items]            
Estimated useful life of intangible assets 10 years   10 years      
Notes Payable            
Basis Of Presentation And Significant Accounting Policies [Line Items]            
Deferred financing cost, net $ 30,100,000   $ 32,400,000 35,700,000    
Deferred financing cost, accumulated amortization $ 56,800,000   $ 54,600,000 45,200,000    
Vivint Flex Pay            
Basis Of Presentation And Significant Accounting Policies [Line Items]            
Number of payment options | payment 3   3      
Installment loans available to qualified customers, maximum amount provided by third party $ 4,000   $ 4,000      
Vivint Flex Pay | Minimum            
Basis Of Presentation And Significant Accounting Policies [Line Items]            
Installment loans available to qualified customers, term of loan 42 months   42 months      
Vivint Flex Pay | Maximum            
Basis Of Presentation And Significant Accounting Policies [Line Items]            
Installment loans available to qualified customers, term of loan 60 months   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 $ 249,700,000   $ 289,800,000      
Line of Credit | Revolving Credit Facility            
Basis Of Presentation And Significant Accounting Policies [Line Items]            
Deferred financing cost, net 1,800,000   2,100,000      
Deferred financing cost, accumulated amortization 9,900,000   9,600,000 $ 8,600,000    
Fair Value, Inputs, Level 3            
Basis Of Presentation And Significant Accounting Policies [Line Items]            
Equity method investments $ 700,000   $ 700,000      
v3.19.2
Basis of Presentation and Significant Accounting Policies - Accounts Receivable (Detail) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Allowance for Doubtful Accounts Receivable [Roll Forward]          
Beginning balance $ 5,594 $ 5,356 $ 5,356 $ 4,138 $ 3,541
Provision for doubtful accounts 5,918 $ 3,968 19,405 22,465 19,624
Write-offs and adjustments (5,704)   (19,167) (21,247) (19,027)
Balance at end of period $ 5,808   $ 5,594 $ 5,356 $ 4,138
v3.19.2
Basis of Presentation and Significant Accounting Policies - Depreciation and Amortization (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Property, Plant and Equipment [Line Items]          
Total depreciation and amortization $ 131,221 $ 124,258 $ 514,082 $ 329,255 $ 288,542
Depreciation of property, plant and equipment          
Property, Plant and Equipment [Line Items]          
Total depreciation and amortization 5,921 6,175 24,963 21,275 16,800
Amortization of capitalized contract costs          
Property, Plant and Equipment [Line Items]          
Total depreciation and amortization 105,028 95,363      
Amortization of definite-lived intangibles          
Property, Plant and Equipment [Line Items]          
Total depreciation and amortization $ 20,272 $ 22,720 $ 90,945 $ 101,827 $ 116,865
v3.19.2
Basis of Presentation and Significant Accounting Policies - Recently Adopted Accounting Standards (Details) - ASU 2016-02 adoption
$ in Millions
Jan. 01, 2019
USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Right-of-use lease asset $ 75.5
Operating and finance lease liability $ 85.9
v3.19.2
Revenue and Capitalized Contract Costs - Remaining Performance Obligations Percentages (Details)
Mar. 31, 2019
Dec. 31, 2018
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-04-01    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Percentage revenue of related to remaining performance obligation expected to recognized over the next 24 months 63.00%  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Percentage revenue of related to remaining performance obligation expected to recognized over the next 24 months   62.50%
v3.19.2
Revenue and Capitalized Contract Costs - Remaining Performance Obligations Periods (Details)
Mar. 31, 2019
Dec. 31, 2018
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Revenue, remaining performance obligation, expected timing of satisfaction, period   2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Revenue, remaining performance obligation, expected timing of satisfaction, period 2 years  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Revenue, remaining performance obligation, expected timing of satisfaction, period   3 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Revenue, remaining performance obligation, expected timing of satisfaction, period 3 years  
v3.19.2
Long-Term Debt - Additional Information (Detail)
1 Months Ended 3 Months Ended 12 Months Ended
May 10, 2019
USD ($)
Nov. 16, 2012
USD ($)
Sep. 30, 2018
USD ($)
Aug. 31, 2017
USD ($)
Dec. 31, 2013
USD ($)
Offerings
May 31, 2013
USD ($)
Mar. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2014
USD ($)
Apr. 01, 2019
USD ($)
Dec. 31, 2017
USD ($)
Aug. 10, 2017
USD ($)
Feb. 28, 2017
USD ($)
Aug. 31, 2016
USD ($)
May 31, 2016
USD ($)
Oct. 31, 2015
USD ($)
Mar. 06, 2015
USD ($)
Debt Instrument [Line Items]                                  
Outstanding borrowings             $ 3,084,090,000 $ 3,045,195,000     $ 2,820,297,000            
Issued and unused letters of credit             $ 13,900,000 $ 13,800,000     9,500,000            
Revolving Credit Facility                                  
Debt Instrument [Line Items]                                  
Credit facility, aggregate principal amount   $ 200,000,000                   $ 324,300,000         $ 289,400,000
Debt instrument, term   5 years                              
Step down margin percentage             0.25% 0.25%                  
Commitment fee, percentage             0.125%                    
Outstanding borrowings             $ 40,000,000 $ 0                  
Issued and unused letters of credit             $ 249,700,000 $ 289,800,000                  
Revolving Credit Facility | Federal Funds Effective Swap Rate                                  
Debt Instrument [Line Items]                                  
Basis spread on variable interest rate percentage             0.50% 0.50%                  
Revolving Credit Facility | LIBOR                                  
Debt Instrument [Line Items]                                  
Basis spread on variable interest rate percentage             1.00% 1.00%                  
Series A- Revolving Commitments | Revolving Credit Facility                                  
Debt Instrument [Line Items]                                  
Credit facility, aggregate principal amount             $ 267,000,000 $ 267,000,000                  
Series A- Revolving Commitments | Revolving Credit Facility | LIBOR                                  
Debt Instrument [Line Items]                                  
Basis spread on variable interest rate percentage             3.00% 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% 2.00%                  
Series D- Revolving Commitments | Revolving Credit Facility                                  
Debt Instrument [Line Items]                                  
Credit facility, aggregate principal amount               $ 15,400,000                  
Series B- Revolving Commitments | Revolving Credit Facility                                  
Debt Instrument [Line Items]                                  
Credit facility, aggregate principal amount             $ 21,200,000 $ 21,200,000                  
Series B- Revolving Commitments | Revolving Credit Facility | LIBOR                                  
Debt Instrument [Line Items]                                  
Basis spread on variable interest rate percentage             4.00% 4.00%                  
Series B- Revolving Commitments | Revolving Credit Facility | Base Rate-based Borrowings                                  
Debt Instrument [Line Items]                                  
Basis spread on variable interest rate percentage             3.00% 3.00%                  
Senior Notes                                  
Debt Instrument [Line Items]                                  
Debt instrument interest rate, percentage               7.625%                  
Senior Notes | 8.75% Senior Notes Due 2020                                  
Debt Instrument [Line Items]                                  
Principal amount             $ 679,299,000                    
Debt instrument interest rate, percentage             8.75% 8.75%                  
Repurchased face amount     $ 250,700,000                            
Senior Notes | 8.875% Senior Secured Notes Due 2022                                  
Debt Instrument [Line Items]                                  
Principal amount             $ 270,000,000                 $ 300,000,000.0  
Debt instrument interest rate, percentage             8.875% 8.875%               8.875%  
Principal amount outstanding threshold for accelerated maturity             $ 190,000,000.0 $ 190,000,000.0                  
Repurchased face amount     250,700,000.0                       $ 29,500,000.0    
Outstanding borrowings                     266,689,000            
Senior Notes | 7.875% Senior Secured Notes Due 2022                                  
Debt Instrument [Line Items]                                  
Principal amount             $ 900,000,000               $ 500,000,000.0    
Debt instrument interest rate, percentage             7.875% 7.875%             7.875%    
Outstanding borrowings                     908,526,000            
Senior Notes | 7.625% Senior Notes Due 2023                                  
Debt Instrument [Line Items]                                  
Principal amount       $ 400,000,000.0     $ 400,000,000                    
Debt instrument interest rate, percentage       7.625%     7.625% 7.625%                  
Outstanding borrowings                     395,238,000            
Senior Notes | 6.375% Senior Secured Notes due 2019                                  
Debt Instrument [Line Items]                                  
Debt instrument interest rate, percentage             6.375%                    
Repurchased face amount     269,500,000                   $ 300,000,000.0        
Repayments of long-term debt       $ 150,000,000                          
Senior Notes | 6.375% Senior Secured Notes Due 2019                                  
Debt Instrument [Line Items]                                  
Principal amount   $ 925,000,000                              
Debt instrument interest rate, percentage   6.375%           6.375%                  
Repurchased face amount     269,500,000.0 $ 150,000,000.0                 $ 300,000,000.0   $ 205,500,000.0    
Outstanding borrowings                     266,588,000            
Senior Notes | 8.75% Senior Notes Due 2020                                  
Debt Instrument [Line Items]                                  
Principal amount   $ 380,000,000.0     $ 250,000,000.0 $ 200,000,000.0     $ 100,000,000.0                
Debt instrument interest rate, percentage   8.75%         8.875% 8.75%                  
Repurchased face amount     $ 250,700,000.0                            
Outstanding borrowings                     $ 923,256,000            
Debt instrument, redemption price, percentage         101.50% 101.75%     102.00%                
Number of offerings | Offerings         2                        
Senior Notes | 2019 Senior Notes And 2022 Private Placement Notes                                  
Debt Instrument [Line Items]                                  
Repurchased face amount                             $ 235,000,000    
Senior Notes | 7.875 Senior Notes Due August 2022                                  
Debt Instrument [Line Items]                                  
Principal amount                           $ 100,000,000.0      
Debt instrument interest rate, percentage                           104.00%      
Issuance price, percentage                         108.25%        
Term Loan | Federal Funds Effective Swap Rate                                  
Debt Instrument [Line Items]                                  
Basis spread on variable interest rate percentage     0.50%         0.50%                  
Term Loan | LIBOR | LIBOR Referenced To US Dollar Deposits                                  
Debt Instrument [Line Items]                                  
Basis spread on variable interest rate percentage     1.00%         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%         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%         4.00%                  
Term Loan | Term Loan                                  
Debt Instrument [Line Items]                                  
Credit facility, aggregate principal amount     $ 810,000,000                            
Debt instrument, redemption price, percentage of principal amount redeemed     0.25%                            
Letter of Credit                                  
Debt Instrument [Line Items]                                  
Outstanding borrowings             $ 13,900,000                    
Subsequent Event | Series D- Revolving Commitments | Revolving Credit Facility                                  
Debt Instrument [Line Items]                                  
Credit facility, aggregate principal amount                   $ 15,400,000              
Subsequent Event | Senior Notes | 8.75% Senior Notes Due 2020                                  
Debt Instrument [Line Items]                                  
Repayments of long-term debt $ 225,000,000                                
February 2017 Issuance of 7.875% Notes Due 2022 | Senior Notes | 7.875 Senior Notes Due August 2022                                  
Debt Instrument [Line Items]                                  
Principal amount                         $ 300,000,000.0        
v3.19.2
Retail Installment Contract Receivables - Installment Receivables (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Dec. 31, 2018
Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Deferred interest $ (29,612)   $ (34,164) $ (36,049)
Retail Installment Contracts        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
RIC receivables, gross 173,254   175,250 131,024
Deferred interest (29,612)   (34,163) (36,048)
RIC receivables, net of deferred interest 143,642   141,087 94,976
Classified on the condensed consolidated unaudited balance sheets as:        
Accounts and notes receivable, net 35,370   32,185 16,469
Long-term notes receivables and other assets, net 108,272   108,902 78,507
RIC receivables, net 143,642   141,087 94,976
Interest income $ (3,500) $ (3,300) $ (14,900) $ (7,300)
Minimum | Vivint Flex Pay        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Installment loans available to qualified customers, term of loan 42 months   42 months  
Maximum | Vivint Flex Pay        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Installment loans available to qualified customers, term of loan 60 months   60 months  
v3.19.2
Retail Installment Contract Receivables - Allowance for Credit Losses (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Financing Receivable, Allowance for Credit Losses [Roll Forward]          
Change in deferred interest on short-term and long-term RIC receivables $ 9,820 $ 33,793 $ 172,905 $ 247,500 $ 24,613
Retail Installment Contracts          
Financing Receivable, Allowance for Credit Losses [Roll Forward]          
Deferred interest, beginning of period 34,163 $ 36,048 36,048 0  
Write-offs, net of recoveries (6,923)   (26,360) (6,055)  
Change in deferred interest on short-term and long-term RIC receivables 2,372   24,475 42,103  
Deferred interest, end of period $ 29,612   $ 34,163 $ 36,048 $ 0
v3.19.2
Balance Sheet Components (Detail) - USD ($)
$ in Thousands
Mar. 31, 2019
Dec. 31, 2018
Jan. 01, 2018
Dec. 31, 2017
Prepaid expenses and other current assets        
Prepaid expenses $ 12,984 $ 7,183   $ 8,000
Deposits 1,353 904   1,596
Other 791 3,362   6,554
Total prepaid expenses and other current assets 15,128 11,449   16,150
Capitalized contract costs        
Capitalized contract costs 2,445,784 2,361,795   0
Accumulated amortization (1,352,919) (1,246,020)   0
Capitalized contract costs, net 1,092,865 1,115,775 $ 1,020,408 0
Long-term notes receivables and other assets        
RIC receivables, gross 137,884 143,065   114,556
Deferred interest (29,612) (34,164)   (36,049)
Security deposits 7,126 6,586   6,427
Investments 6,099 3,865   3,429
Other 299 467   360
Total long-term notes receivables and other assets, net 121,796 119,819 91,436 88,723
Accrued payroll and commissions        
Accrued commissions 11,432 28,726   27,485
Accrued payroll 25,849 36,753   30,267
Total accrued payroll and commissions 37,281 65,479   57,752
Accrued expenses and other current liabilities        
Accrued interest payable 55,157 28,885   28,737
Current portion of derivative liability 70,137 67,710   25,473
Service warranty accrual 8,825 8,813   0
Current portion of notes payable 8,100 8,100   0
Loss contingencies 2,131 3,131   2,156
Other 14,647 20,076   5,391
Total accrued expenses and other current liabilities $ 158,997 $ 136,715 $ 84,650 $ 74,321
v3.19.2
Property Plant and Equipment - Components of Property Plant and Equipment (Detail) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, gross $ 151,785 $ 156,096 $ 139,211
Accumulated depreciation and amortization (87,171) (82,695) (61,130)
Property, plant and equipment, net 64,614 73,401 78,081
Vehicles      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, gross $ 44,594 $ 45,050 42,008
Vehicles | Minimum      
Property, Plant and Equipment [Line Items]      
Estimated Useful Lives 3 years 3 years  
Vehicles | Maximum      
Property, Plant and Equipment [Line Items]      
Estimated Useful Lives 5 years 5 years  
Computer equipment and software      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, gross $ 55,459 $ 53,891 46,651
Computer equipment and software | Minimum      
Property, Plant and Equipment [Line Items]      
Estimated Useful Lives 3 years 3 years  
Computer equipment and software | Maximum      
Property, Plant and Equipment [Line Items]      
Estimated Useful Lives 5 years 5 years  
Leasehold improvements      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, gross $ 27,609 $ 26,401 20,783
Leasehold improvements | Minimum      
Property, Plant and Equipment [Line Items]      
Estimated Useful Lives 2 years 2 years  
Leasehold improvements | Maximum      
Property, Plant and Equipment [Line Items]      
Estimated Useful Lives 15 years 15 years  
Office furniture, fixtures and equipment      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, gross $ 19,918 $ 19,532 17,202
Estimated Useful Lives 7 years 7 years  
Build-to-suit lease building      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, gross $ 0 $ 8,247 8,268
Estimated Useful Lives 10 years 6 months 10 years 6 months  
Construction in process      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, gross $ 4,205 $ 2,975 $ 4,299
v3.19.2
Property Plant and Equipment - Additional Information (Detail) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Jan. 01, 2019
Property, Plant and Equipment [Line Items]            
Property, plant and equipment, gross $ 151,785   $ 156,096 $ 139,211    
Accumulated depreciation 87,171   82,695 61,130    
Depreciation and amortization expense 5,900 $ 6,200 25,000 21,275 $ 16,800  
Reduction in property, plant and equipment (64,614)   (73,401) (78,081)    
Reduction in finance lease obligations (11,066)          
Assets Under Finance Lease Obligations            
Property, Plant and Equipment [Line Items]            
Property, plant and equipment, gross 22,200   26,200      
Accumulated depreciation $ 23,200   22,200      
Assets Under Capital Lease Obligations            
Property, Plant and Equipment [Line Items]            
Property, plant and equipment, gross     23,700 26,200    
Accumulated depreciation     $ 22,200 $ 16,600    
ASU 2016-02 adoption            
Property, Plant and Equipment [Line Items]            
Reduction in property, plant and equipment           $ 6,100
Accrued expenses and other current liabilities | ASU 2016-02 adoption            
Property, Plant and Equipment [Line Items]            
Reduction in finance lease obligations           $ 6,600
v3.19.2
Goodwill and Intangible Assets - Intangible Assets (Detail) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]      
Definite-lived intangible assets, gross carrying amount $ 1,004,932 $ 1,003,240 $ 1,007,780
Accumulated Amortization (769,972) (748,778) (662,205)
Definite-lived intangible assets, net carrying amount 234,960 254,462 345,575
Indefinite-lived intangible assets: 623 623 31,876
Total intangible assets, gross carrying amount 1,005,555 1,003,863 1,039,656
Total intangible assets, net carrying amount 235,583 255,085 377,451
Customer contracts      
Finite-Lived Intangible Assets [Line Items]      
Definite-lived intangible assets, gross carrying amount 965,670 964,100 970,147
Accumulated Amortization (737,443) (717,648) (637,780)
Definite-lived intangible assets, net carrying amount $ 228,227 $ 246,452 332,367
Estimated useful lives of intangible asset 10 years 10 years  
2GIG 2.0 technology      
Finite-Lived Intangible Assets [Line Items]      
Definite-lived intangible assets, gross carrying amount $ 17,000 $ 17,000 17,000
Accumulated Amortization (15,603) (15,292) (13,274)
Definite-lived intangible assets, net carrying amount $ 1,397 $ 1,708 3,726
Estimated useful lives of intangible asset 8 years 8 years  
Other technology      
Finite-Lived Intangible Assets [Line Items]      
Definite-lived intangible assets, gross carrying amount $ 2,917 $ 2,917 2,917
Accumulated Amortization (1,771) (1,667) (1,250)
Definite-lived intangible assets, net carrying amount 1,146 1,250 1,667
Space Monkey technology      
Finite-Lived Intangible Assets [Line Items]      
Definite-lived intangible assets, gross carrying amount 7,100 7,100 7,100
Accumulated Amortization (6,019) (5,756) (4,066)
Definite-lived intangible assets, net carrying amount $ 1,081 $ 1,344 3,034
Estimated useful lives of intangible asset 6 years 6 years  
Patents      
Finite-Lived Intangible Assets [Line Items]      
Definite-lived intangible assets, gross carrying amount $ 12,245 $ 12,123 10,616
Accumulated Amortization (9,136) (8,415) (5,835)
Definite-lived intangible assets, net carrying amount $ 3,109 $ 3,708 4,781
Estimated useful lives of intangible asset 5 years 5 years  
Minimum      
Finite-Lived Intangible Assets [Line Items]      
Estimated useful lives of intangible asset 5 years 5 years  
Minimum | Other technology      
Finite-Lived Intangible Assets [Line Items]      
Estimated useful lives of intangible asset 5 years 5 years  
Maximum      
Finite-Lived Intangible Assets [Line Items]      
Estimated useful lives of intangible asset 10 years 10 years  
Maximum | Other technology      
Finite-Lived Intangible Assets [Line Items]      
Estimated useful lives of intangible asset 7 years 7 years  
IP addresses      
Finite-Lived Intangible Assets [Line Items]      
Indefinite-lived intangible assets: $ 564 $ 564 564
Domain names      
Finite-Lived Intangible Assets [Line Items]      
Indefinite-lived intangible assets: $ 59 $ 59 $ 59
v3.19.2
Goodwill and Intangible Assets - Future Amortization Expense (Detail) - USD ($)
$ in Thousands
Mar. 31, 2019
Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]    
2019 - Remaining Period $ 59,216  
2020 67,990 $ 67,807
2021 58,709 58,578
2022 48,759 48,674
2023 28 47
Thereafter 0 $ 11
Total estimated amortization expense $ 234,702  
v3.19.2
Financial Instruments - Valuation Approach Applied to Each Class of Security (Detail) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]          
Cash $ 3,599   $ 6,681 $ 3,866  
Adjusted Cost 6,872   16,258 7,890  
Unrealized Gains 2,212   0 0  
Unrealized Losses 0   (304) (1,315)  
Fair Value 9,084   15,954 6,575  
Cash and Cash Equivalents 3,691   12,773 3,872  
Long-Term Notes Receivables and Other Assets, net 5,393   3,181 2,703  
Available-for-sale securities, gross unrealized gain (loss) 2,200 $ 300 (300) (1,300) $ 1,000
Privately Held Company | Convertible Debt Securities          
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]          
Cost method investments 3,000        
Level 1:          
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]          
Adjusted Cost 3,273   9,577 4,024  
Unrealized Gains 2,212   0 0  
Unrealized Losses 0   (304) (1,315)  
Fair Value 5,485   9,273 2,709  
Cash and Cash Equivalents 92   6,092 6  
Long-Term Notes Receivables and Other Assets, net 5,393   3,181 2,703  
Money market funds | Level 1:          
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]          
Adjusted Cost 92   6,092 6  
Unrealized Gains 0   0 0  
Unrealized Losses 0   0 0  
Fair Value 92   6,092 6  
Cash and Cash Equivalents 92   6,092 6  
Long-Term Notes Receivables and Other Assets, net 0   0 0  
Corporate securities | Level 1:          
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]          
Adjusted Cost 3,181   3,485 4,018  
Unrealized Gains 2,212   0 0  
Unrealized Losses 0   (304) (1,315)  
Fair Value 5,393   3,181 2,703  
Cash and Cash Equivalents 0   0 0  
Long-Term Notes Receivables and Other Assets, net $ 5,393   $ 3,181 $ 2,703  
v3.19.2
Financial Instruments - Debt Fair Value and Carrying Value (Detail) - USD ($)
Mar. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Aug. 31, 2017
May 31, 2016
Oct. 31, 2015
Debt Instrument [Line Items]            
Long-term debt $ 3,084,090,000 $ 3,045,195,000 $ 2,820,297,000      
Fair Value, Inputs, Level 2            
Debt Instrument [Line Items]            
Long-term debt 3,055,249,000 3,057,274,000 2,769,465,000      
Estimated Fair Value $ 2,992,913,000 $ 2,889,616,000 2,893,547,000      
Senior Notes            
Debt Instrument [Line Items]            
Stated Interest Rate   7.625%        
Senior Notes | 8.75% Senior Notes Due 2020            
Debt Instrument [Line Items]            
Stated Interest Rate 8.75% 8.75%        
Senior Notes | 8.75% Senior Notes Due 2020 | Fair Value, Inputs, Level 2            
Debt Instrument [Line Items]            
Long-term debt $ 679,299,000 $ 679,299,000        
Estimated Fair Value $ 669,110,000 $ 643,568,000        
Senior Notes | 8.875% Senior Secured Notes Due 2022            
Debt Instrument [Line Items]            
Long-term debt     266,689,000      
Stated Interest Rate 8.875% 8.875%       8.875%
Senior Notes | 8.875% Senior Secured Notes Due 2022 | Fair Value, Inputs, Level 2            
Debt Instrument [Line Items]            
Long-term debt $ 270,000,000 $ 270,000,000 270,000,000      
Estimated Fair Value $ 271,323,000 $ 257,073,000 276,486,000      
Senior Notes | 7.875% Senior Secured Notes Due 2022            
Debt Instrument [Line Items]            
Long-term debt     908,526,000      
Stated Interest Rate 7.875% 7.875%     7.875%  
Senior Notes | 7.875% Senior Secured Notes Due 2022 | Fair Value, Inputs, Level 2            
Debt Instrument [Line Items]            
Long-term debt $ 900,000,000 $ 900,000,000 900,000,000      
Estimated Fair Value $ 904,410,000 $ 855,000,000 966,420,000      
Senior Notes | 7.625% Senior Notes Due 2023            
Debt Instrument [Line Items]            
Long-term debt     395,238,000      
Stated Interest Rate 7.625% 7.625%   7.625%    
Senior Notes | 7.625% Senior Notes Due 2023 | Fair Value, Inputs, Level 2            
Debt Instrument [Line Items]            
Long-term debt $ 400,000,000 $ 400,000,000 400,000,000      
Estimated Fair Value 342,120,000 326,000,000 425,000,000      
Term Loan | Fair Value, Inputs, Level 2            
Debt Instrument [Line Items]            
Long-term debt 805,950,000 807,975,000 0      
Estimated Fair Value $ 805,950,000 $ 807,975,000 $ 0      
v3.19.2
Financial Instruments - Derivative Fair Value (Details) - Fair Value, Inputs, Level 2 - USD ($)
$ in Thousands
Mar. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Derivatives, Fair Value [Line Items]      
Derivative liability, fair value, gross $ 120,671 $ 117,620 $ 46,496
Derivative, notional amount 385,955 368,708 163,032
Accrued expenses and other current liabilities      
Derivatives, Fair Value [Line Items]      
Derivative liability, fair value, gross 70,137 67,710 25,473
Other long-term obligations      
Derivatives, Fair Value [Line Items]      
Derivative liability, fair value, gross $ 50,534 $ 49,910 $ 21,023
v3.19.2
Financial Instruments - Level 3 (Details) - Fair Value, Inputs, Level 3 - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]      
Balance, beginning of period $ 117,620 $ 46,496 $ 0
Additions 16,480 93,095 44,913
Settlements (14,856) (34,587) (7,972)
Losses included in earnings 1,427 12,616 9,555
Balance, end of period $ 120,671 $ 117,620 $ 46,496
v3.19.2
Income Taxes (Detail)
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Income Tax Disclosure [Abstract]    
Effective income tax rate, percentage 0.34% 0.51%
v3.19.2
Commitments and Contingencies (Detail) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Commitments And Contingencies [Line Items]          
Loss contingency accrual $ 2.1   $ 3.1 $ 2.2  
Operating leases, rent expense   $ 4.3 16.5 17.0 $ 16.0
Capital lease obligation     $ 13.3 $ 21.7  
Vehicles          
Commitments And Contingencies [Line Items]          
Lease agreements term 36 months   36 months    
Average remaining life for fleet 10 months   19 months    
v3.19.2
Leases - Components of Lease Expense (Details)
$ in Thousands
3 Months Ended
Mar. 31, 2019
USD ($)
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 $ 4,298
Finance lease cost:  
Amortization of right-of-use assets 1,376
Interest on lease liabilities 154
Total finance lease cost $ 1,530
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 9 years
v3.19.2
Leases - Supplemental Cash Flow Information (Details)
$ in Thousands
3 Months Ended
Mar. 31, 2019
USD ($)
Cash paid for amounts included in the measurement of lease liabilities:  
Operating cash flows from operating leases $ (4,375)
Operating cash flows from finance leases (154)
Financing cash flows from finance leases (2,136)
Right-of-use assets obtained in exchange for lease obligations:  
Operating leases 584
Finance leases $ 230
v3.19.2
Leases - Supplemental Balance Sheet Information (Details) - USD ($)
$ in Thousands
Mar. 31, 2019
Dec. 31, 2018
Assets and Liabilities, Lessee [Abstract]    
Operating lease right-of-use assets $ 72,891 $ 0
Current operating lease liabilities 11,749 0
Operating lease liabilities 71,964 0
Total 83,713  
Property, plant and equipment, gross 45,440  
Accumulated depreciation (23,205)  
Property, plant and equipment, net 22,235  
Current finance lease liabilities 7,114 7,743
Finance lease liabilities 3,952 $ 5,571
Total $ 11,066  
Operating leases, weighted average remaining lease term 7 years  
Finance leases, weighted average remaining lease term 1 year 6 months  
Operating leases, weighted average discount rate, percentage 7.00%  
Finance leases, weighted average discount rate, percentage 4.00%  
v3.19.2
Leases - Maturities of Lease Liabilities (Details)
$ in Thousands
Mar. 31, 2019
USD ($)
Leases [Abstract]  
Lessor, Operating Lease, Lease Not yet Commenced, Assumption and Judgment, Value of Underlying Asset, Description $ 600
Operating Leases  
2019 (excluding the three months ended March 31, 2019) 13,163
2020 16,345
2021 15,649
2022 14,514
2023 14,553
Thereafter 32,404
Total lease payments 106,628
Less imputed interest (22,915)
Total 83,713
Finance Leases  
2019 (excluding the three months ended March 31, 2019) 5,827
2020 5,167
2021 384
2022 38
2023 0
Thereafter 0
Total lease payments 11,416
Less imputed interest (350)
Total $ 11,066
Operating lease not yet commenced, term of contract (in years) 5 years
v3.19.2
Employee Benefit Plan (Detail) - USD ($)
3 Months Ended 12 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Postemployment Benefits [Abstract]          
Employer matching contribution, percent of employees' gross pay 1.00%   1.00%    
Employer matching contribution, amount for every employees' dollar contributed $ 0.50   $ 0.50    
Employer matching contribution, percent of employees' gross pay for 50% matching for every dollar contributed 5.00%   5.00%    
Maximum annual contributions per employee, percent 3.50%   3.50%    
Award vesting service period 2 years   2 years    
Matching contributions to the plan $ 1,900,000 $ 1,600,000 $ 6,000,000 $ 0 $ 0
v3.19.2
Restructuring and Asset Impairment Charges (Detail) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Restructuring Reserve [Roll Forward]        
Accrued restructuring, beginning balance $ 809 $ 558 $ 649 $ 4,275
Cash-based restructuring charges   4,683    
Cash payments (280) (4,432) (91) (2,798)
Accrued restructuring, ending balance 529 809 558 649
Contract termination costs        
Restructuring Reserve [Roll Forward]        
Accrued restructuring, beginning balance 467 558 649 3,954
Cash-based restructuring charges   0    
Cash payments (23) (91) (91) (2,554)
Accrued restructuring, ending balance 444 467 558 649
Employee severance and termination benefits        
Restructuring Reserve [Roll Forward]        
Accrued restructuring, beginning balance 342 0 0 321
Cash-based restructuring charges   4,683 0 0
Cash payments (257) (4,341) 0 (244)
Accrued restructuring, ending balance $ 85 $ 342 $ 0 $ 0
v3.19.2
Segment Reporting and Business Concentrations (Details)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2019
USD ($)
region
segment
Mar. 31, 2018
USD ($)
segment
Dec. 31, 2018
Segment
Dec. 31, 2017
Segment
Dec. 31, 2016
Segment
Revenues from External Customers and Long-Lived Assets [Line Items]          
Number of operating segments 1 1 1 1 1
Number of geographic regions | region 2        
Revenue from external customers $ 276,249 $ 246,597      
United States          
Revenues from External Customers and Long-Lived Assets [Line Items]          
Revenue from external customers 258,436 228,542      
Canada          
Revenues from External Customers and Long-Lived Assets [Line Items]          
Revenue from external customers $ 17,813 $ 18,055      
v3.19.2
Guarantor and Non-Guarantor Supplemental Financial Information - Balance Sheet (Detail) - USD ($)
$ in Thousands
Mar. 31, 2019
Dec. 31, 2018
Mar. 31, 2018
Jan. 01, 2018
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
ASSETS              
Current assets $ 168,442 $ 123,498     $ 175,965    
Property, plant and equipment, net 64,614 73,401     78,081    
Capitalized contract costs, net 1,092,865 1,115,775     0    
Subscriber acquisition costs, net   0   $ 0 1,308,558    
Deferred financing costs, net 1,797 2,058     3,099    
Investment in subsidiaries 0 0          
Intercompany receivable 0 0          
Intangible assets, net 235,583 255,085     377,451    
Goodwill 835,404 834,855     836,970 $ 835,233  
Operating lease right-of-use assets 72,891 0          
Long-term notes receivables and other assets, net 121,796 119,819   91,436 88,723    
Total assets 2,593,392 2,524,491     2,868,847    
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY              
Current liabilities 524,709 463,536     338,371    
Intercompany payable 0 0          
Notes payable and revolving credit facility, net of current portion 3,075,990 3,037,095     2,820,297    
Finance lease liabilities 3,952 5,571          
Deferred revenue, net of current portion 326,631 323,585   211,493 264,555    
Operating lease liabilities 71,964 0          
Other long-term obligations 73,390 90,209     79,020    
Accumulated losses of investee, net 0 0          
Deferred income tax liability 1,120 1,096   $ 3,400 9,041    
Total stockholders’ deficit (1,484,364) (1,396,601) $ (1,022,235)   (653,526) $ (245,182) $ (76,993)
Total liabilities and stockholders’ deficit 2,593,392 2,524,491     2,868,847    
Capital lease obligations, net of current portion   5,571     11,089    
Eliminations              
ASSETS              
Current assets (289,784) (262,674)     (162,413)    
Property, plant and equipment, net 0 0     0    
Capitalized contract costs, net 0 0          
Subscriber acquisition costs, net         0    
Deferred financing costs, net 0 0     0    
Investment in subsidiaries (1,650,064) (1,662,367)     (2,188,221)    
Intercompany receivable (6,303) (6,303)     (6,303)    
Intangible assets, net 0 0     0    
Goodwill 0 0     0    
Operating lease right-of-use assets 0            
Long-term notes receivables and other assets, net (106) (106)     (106)    
Total assets (1,946,257) (1,931,450)     (2,357,043)    
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY              
Current liabilities (289,784) (262,674)     (162,413)    
Intercompany payable (6,303) (6,303)     (6,303)    
Notes payable and revolving credit facility, net of current portion 0 0     0    
Finance lease liabilities 0 0          
Deferred revenue, net of current portion 0 0     0    
Operating lease liabilities 0            
Other long-term obligations 0 0     0    
Accumulated losses of investee, net (1,484,364) (1,396,601)     (653,526)    
Deferred income tax liability (106) (106)     (106)    
Total stockholders’ deficit (165,700) (265,766)     (1,534,695)    
Total liabilities and stockholders’ deficit (1,946,257) (1,931,450)     (2,357,043)    
Capital lease obligations, net of current portion   0     0    
Parent | Reportable Legal Entities              
ASSETS              
Current assets 0 0     0    
Property, plant and equipment, net 0 0     0    
Capitalized contract costs, net 0 0          
Subscriber acquisition costs, net         0    
Deferred financing costs, net 0 0     0    
Investment in subsidiaries 0 0     0    
Intercompany receivable 0 0     0    
Intangible assets, net 0 0     0    
Goodwill 0 0     0    
Operating lease right-of-use assets 0            
Long-term notes receivables and other assets, net 0 0     0    
Total assets 0 0     0    
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY              
Current liabilities 0 0     0    
Intercompany payable 0 0     0    
Notes payable and revolving credit facility, net of current portion 0 0     0    
Finance lease liabilities 0 0          
Deferred revenue, net of current portion 0 0     0    
Operating lease liabilities 0            
Other long-term obligations 0 0     0    
Accumulated losses of investee, net 1,484,364 1,396,601     653,526    
Deferred income tax liability 0 0     0    
Total stockholders’ deficit (1,484,364) (1,396,601)     (653,526)    
Total liabilities and stockholders’ deficit 0 0     0    
Capital lease obligations, net of current portion   0     0    
Guarantor Subsidiaries | Reportable Legal Entities              
ASSETS              
Current assets 335,398 269,770     284,293    
Property, plant and equipment, net 64,188 72,937     77,345    
Capitalized contract costs, net 1,027,364 1,047,532          
Subscriber acquisition costs, net         1,214,678    
Deferred financing costs, net 0 0     0    
Investment in subsidiaries 0 0     0    
Intercompany receivable 6,303 6,303     6,303    
Intangible assets, net 218,194 236,677     350,710    
Goodwill 809,678 809,678     809,678    
Operating lease right-of-use assets 72,661            
Long-term notes receivables and other assets, net 104,486 102,695     78,173    
Total assets 2,638,272 2,545,592     2,821,180    
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY              
Current liabilities 558,398 507,063     343,398    
Intercompany payable 0 0     0    
Notes payable and revolving credit facility, net of current portion 0 0     0    
Finance lease liabilities 3,952 5,570          
Deferred revenue, net of current portion 309,896 306,653     248,643    
Operating lease liabilities 71,878            
Other long-term obligations 73,043 90,209     79,020    
Accumulated losses of investee, net          
Deferred income tax liability 106 106     106    
Total stockholders’ deficit 1,620,999 1,635,991     2,139,222    
Total liabilities and stockholders’ deficit 2,638,272 2,545,592     2,821,180    
Capital lease obligations, net of current portion   5,570     10,791    
Non-Guarantor Subsidiaries | Reportable Legal Entities              
ASSETS              
Current assets 119,909 103,451     49,935    
Property, plant and equipment, net 426 464     736    
Capitalized contract costs, net 65,501 68,243          
Subscriber acquisition costs, net         93,880    
Deferred financing costs, net 0 0     0    
Investment in subsidiaries 0 0     0    
Intercompany receivable 0 0     0    
Intangible assets, net 17,389 18,408     26,741    
Goodwill 25,726 25,177     27,292    
Operating lease right-of-use assets 230            
Long-term notes receivables and other assets, net 17,310 17,124     10,550    
Total assets 246,491 232,867     209,134    
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY              
Current liabilities 192,835 182,159     128,581    
Intercompany payable 6,303 6,303     6,303    
Notes payable and revolving credit facility, net of current portion 0 0     0    
Finance lease liabilities 0 1          
Deferred revenue, net of current portion 16,735 16,932     15,912    
Operating lease liabilities 86            
Other long-term obligations 347 0     0    
Accumulated losses of investee, net          
Deferred income tax liability 1,120 1,096     9,041    
Total stockholders’ deficit 29,065 26,376     48,999    
Total liabilities and stockholders’ deficit 246,491 232,867     209,134    
Capital lease obligations, net of current portion   1     298    
APX Group, Inc. | Reportable Legal Entities              
ASSETS              
Current assets 2,919 12,951     4,150    
Property, plant and equipment, net 0 0     0    
Capitalized contract costs, net 0 0          
Subscriber acquisition costs, net         0    
Deferred financing costs, net 1,797 2,058     3,099    
Investment in subsidiaries 1,650,064 1,662,367     2,188,221    
Intercompany receivable 0 0     0    
Intangible assets, net 0 0     0    
Goodwill 0 0     0    
Operating lease right-of-use assets 0            
Long-term notes receivables and other assets, net 106 106     106    
Total assets 1,654,886 1,677,482     2,195,576    
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY              
Current liabilities 63,260 36,988     28,805    
Intercompany payable 0 0     0    
Notes payable and revolving credit facility, net of current portion 3,075,990 3,037,095     2,820,297    
Finance lease liabilities 0 0          
Deferred revenue, net of current portion 0 0     0    
Operating lease liabilities 0            
Other long-term obligations 0 0     0    
Accumulated losses of investee, net          
Deferred income tax liability 0 0     0    
Total stockholders’ deficit (1,484,364) (1,396,601)     (653,526)    
Total liabilities and stockholders’ deficit $ 1,654,886 1,677,482     2,195,576    
Capital lease obligations, net of current portion   $ 0     $ 0    
v3.19.2
Guarantor and Non-Guarantor Supplemental Financial Information - Cash Flows (Detail) - USD ($)
$ in Thousands
1 Months Ended 3 Months Ended 12 Months Ended
Aug. 31, 2016
Apr. 30, 2016
Mar. 31, 2019
Mar. 31, 2018
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Cash flows from operating activities:              
Net cash (used in) provided by operating activities     $ (43,017) $ (59,582) $ (220,499) $ (309,332) $ (365,706)
Cash flows from investing activities:              
Capital expenditures     (1,391) (6,407) (19,412) (20,391) (11,642)
Proceeds from sale of capital assets     (51) 149 127 776 3,123
Investment in subsidiary     0   0 0 0
Acquisition of intangible assets     (369) (849) (1,486) (1,745) (1,385)
Investment in subsidiary       0      
Proceeds from the sale of intangible assets     0 53,693 53,693 0 0
Net cash (used in) provided by investing activities     (1,811) 46,586 32,922 (21,661) (15,147)
Cash flows from financing activities:              
Repayments of notes payable     (2,025) 0 (522,191) (450,000) (235,535)
Borrowings from revolving credit facility     40,000 57,000 201,000 196,895 57,000
Repayments on revolving credit facility     0 (40,000) (261,000) (136,895) (77,000)
Proceeds from capital contribution $ 30,600 $ 69,800 0 0 4,700 0 100,407
Repayments of capital lease obligations       (3,418) (12,354) (10,007) (8,315)
Repayments of finance lease obligations     (2,136)        
Return of capital     (118) (966) (3,129) (1,151) 0
Net cash provided by financing activities     35,721 12,616 196,407 291,213 422,280
Effect of exchange rate changes on cash     25 (19) 71 132 (466)
Net decrease in cash and cash equivalents     (9,082) (399) 8,901 (39,648) 40,961
Cash and cash equivalents:              
Beginning of period     12,773 3,872 3,872 43,520 2,559
End of period     3,691 3,473 12,773 3,872 43,520
Reportable Legal Entities              
Cash flows from financing activities:              
Repayments of notes payable             0
Eliminations              
Cash flows from operating activities:              
Net cash (used in) provided by operating activities     0 0      
Cash flows from investing activities:              
Capital expenditures     0 0 0 0 0
Proceeds from sale of capital assets     0 0 0 0 0
Investment in subsidiary     46,605   202,863 324,071 508,621
Acquisition of intangible assets     0 0 0 0 0
Investment in subsidiary       15,484      
Proceeds from the sale of intangible assets       0 0    
Net cash (used in) provided by investing activities     46,605 15,484      
Cash flows from financing activities:              
Repayments of notes payable     0   0 0 0
Borrowings from revolving credit facility     0 0 0 0 0
Repayments on revolving credit facility       0 0 0 0
Proceeds from capital contribution     (46,369) (17,416) (209,121) (326,373) (100,407)
Repayments of capital lease obligations       0 0 0 0
Repayments of finance lease obligations     0        
Return of capital     (236) 1,932      
Net cash provided by financing activities     (46,605) (15,484)      
Effect of exchange rate changes on cash     0 0 0 0 0
Net decrease in cash and cash equivalents     0 0 0 0 0
Cash and cash equivalents:              
Beginning of period     0 0 0 0 0
End of period     0 0 0 0 0
Parent | Reportable Legal Entities              
Cash flows from operating activities:              
Net cash (used in) provided by operating activities     0 0      
Cash flows from investing activities:              
Capital expenditures     0 0 0 0 0
Proceeds from sale of capital assets     0 0 0 0 0
Investment in subsidiary     (118)   (1,571) 1,151 (100,407)
Acquisition of intangible assets     0 0 0 0 0
Investment in subsidiary       966      
Proceeds from the sale of intangible assets       0 0    
Net cash (used in) provided by investing activities     (118) 966      
Cash flows from financing activities:              
Repayments of notes payable     0   0 0  
Borrowings from revolving credit facility     0 0 0 0 0
Repayments on revolving credit facility       0 0 0 0
Proceeds from capital contribution     0 0 4,700 0 100,407
Repayments of capital lease obligations       0 0 0 0
Repayments of finance lease obligations     0        
Return of capital     118 (966)      
Net cash provided by financing activities     118 (966)      
Effect of exchange rate changes on cash     0 0 0 0 0
Net decrease in cash and cash equivalents     0 0 0 0 0
Cash and cash equivalents:              
Beginning of period     0 0 0 0 0
End of period     0 0 0 0 0
Guarantor Subsidiaries | Reportable Legal Entities              
Cash flows from operating activities:              
Net cash (used in) provided by operating activities     (43,058) (59,159)      
Cash flows from investing activities:              
Capital expenditures     (1,391) (6,407) (19,409) (20,391) (11,642)
Proceeds from sale of capital assets     (51) 149 127 776 3,080
Investment in subsidiary     0   0 0 0
Acquisition of intangible assets     (369) (849) (1,486) (1,745) (1,385)
Investment in subsidiary       0      
Proceeds from the sale of intangible assets       53,693 53,693    
Net cash (used in) provided by investing activities     (1,811) 46,586      
Cash flows from financing activities:              
Repayments of notes payable     0   0 0  
Borrowings from revolving credit facility     0 0 0 0 0
Repayments on revolving credit facility       0 0 0 0
Proceeds from capital contribution     46,369 17,416 204,421 326,373 0
Repayments of capital lease obligations       (3,305) (12,011) (9,667) (8,295)
Repayments of finance lease obligations     (2,064)        
Return of capital     (118) (966)      
Net cash provided by financing activities     44,187 13,145      
Effect of exchange rate changes on cash     0 0 0 0 0
Net decrease in cash and cash equivalents     (682) 572 1,254 (18,758) 20,127
Cash and cash equivalents:              
Beginning of period     682 (572) (572) 18,186 (1,941)
End of period     0 0 682 (572) 18,186
Non-Guarantor Subsidiaries | Reportable Legal Entities              
Cash flows from operating activities:              
Net cash (used in) provided by operating activities     41 (423)      
Cash flows from investing activities:              
Capital expenditures     0 0 (3) 0 0
Proceeds from sale of capital assets     0 0 0 0 43
Investment in subsidiary     0   0 0 0
Acquisition of intangible assets     0 0 0 0 0
Investment in subsidiary       0      
Proceeds from the sale of intangible assets       0 0    
Net cash (used in) provided by investing activities     0 0      
Cash flows from financing activities:              
Repayments of notes payable     0   0 0  
Borrowings from revolving credit facility     0 0 0 0 0
Repayments on revolving credit facility       0 0 0 0
Proceeds from capital contribution     0 0 0 0 0
Repayments of capital lease obligations       (113) (343) (340) (20)
Repayments of finance lease obligations     (72)        
Return of capital     0 0      
Net cash provided by financing activities     (72) (113)      
Effect of exchange rate changes on cash     25 (19) 71 132 (466)
Net decrease in cash and cash equivalents     (6) (555) 178 129 (1,547)
Cash and cash equivalents:              
Beginning of period     961 783 783 654 2,201
End of period     955 228 961 783 654
APX Group, Inc. | Reportable Legal Entities              
Cash flows from operating activities:              
Net cash (used in) provided by operating activities     0 0      
Cash flows from investing activities:              
Capital expenditures     0 0 0 0 0
Proceeds from sale of capital assets     0 0 0 0 0
Investment in subsidiary     (46,487)   (201,292) (325,222) (408,214)
Acquisition of intangible assets     0 0 0 0 0
Investment in subsidiary       (16,450)      
Proceeds from the sale of intangible assets       0 0    
Net cash (used in) provided by investing activities     (46,487) (16,450)      
Cash flows from financing activities:              
Repayments of notes payable     (2,025)   (522,191) (450,000) (235,535)
Borrowings from revolving credit facility     40,000 57,000 201,000 196,895 57,000
Repayments on revolving credit facility       (40,000) (261,000) (136,895) (77,000)
Proceeds from capital contribution     0 0 4,700 0 100,407
Repayments of capital lease obligations       0 0 0 0
Repayments of finance lease obligations     0        
Return of capital     118 (966)      
Net cash provided by financing activities     38,093 16,034      
Effect of exchange rate changes on cash     0 0 0 0 0
Net decrease in cash and cash equivalents     (8,394) (416) 7,469 (21,019) 22,381
Cash and cash equivalents:              
Beginning of period     11,130 3,661 3,661 24,680 2,299
End of period     $ 2,736 $ 3,245 $ 11,130 $ 3,661 $ 24,680
v3.19.2
Significant Accounting Policies - Additional Information (Detail)
3 Months Ended 12 Months Ended
Mar. 31, 2019
USD ($)
payment
Mar. 31, 2018
USD ($)
Dec. 31, 2018
USD ($)
payment
Dec. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Jan. 01, 2018
USD ($)
Dec. 31, 2015
USD ($)
Basis Of Presentation And Significant Accounting Policies [Line Items]              
Accounts receivable $ 20,000,000   $ 16,500,000 $ 24,300,000      
Allowance for doubtful accounts 5,808,000   5,594,000 5,356,000 $ 4,138,000   $ 3,541,000
Provision for doubtful accounts $ 5,918,000 $ 3,968,000 $ 19,405,000 22,465,000 19,624,000    
Capitalized contract cost, amortization period 5 years   5 years        
Intangible assets, impairment loss     $ 0   0    
Long lived asset impairment     0 0 0    
Equity securities     3,900,000 3,400,000      
Equity securities without readily determinable fair value, amount     700,000 700,000      
Equity securities without readily determinable fair value, impairment loss     0        
Amortization of deferred financing costs and bond premiums and discounts $ 1,180,000 1,343,000 5,152,000 6,586,000 10,447,000    
Sales commission included in accrued expenses and other liabilities 3,100,000   4,900,000 3,300,000      
Other long-term obligations 16,800,000   17,600,000 18,500,000      
Advertising expenses incurred 12,700,000 13,700,000 47,200,000 42,500,000 33,000,000    
Goodwill, impairment loss     0 0 0    
Intercompany translation gains (losses)     (7,100,000) 4,900,000 2,100,000    
Issued and unused letters of credit 13,900,000   13,800,000 9,500,000      
Other (income) loss, net $ (2,246,000) (45,240,000) (17,323,000) 27,986,000 7,255,000    
Previously Reported [Member]              
Basis Of Presentation And Significant Accounting Policies [Line Items]              
Allowance for doubtful accounts     5,594,000        
Sales commission included in accrued expenses and other liabilities     4,500,000        
Other long-term obligations     $ 13,000,000        
SkyControl Panels              
Basis Of Presentation And Significant Accounting Policies [Line Items]              
Percentage of installed panels     80.00%        
2GIG Sale              
Basis Of Presentation And Significant Accounting Policies [Line Items]              
Percentage of installed panels 17.00%   19.00%        
Minimum              
Basis Of Presentation And Significant Accounting Policies [Line Items]              
Estimated useful life of intangible assets 5 years   5 years        
Maximum              
Basis Of Presentation And Significant Accounting Policies [Line Items]              
Estimated useful life of intangible assets 10 years   10 years        
Interest Expense              
Basis Of Presentation And Significant Accounting Policies [Line Items]              
Amortization of deferred financing costs and bond premiums and discounts $ 2,500,000 $ 2,700,000 $ 10,400,000 11,400,000 $ 11,600,000    
Notes Payable              
Basis Of Presentation And Significant Accounting Policies [Line Items]              
Deferred financing cost, net 30,100,000   32,400,000 35,700,000      
Deferred financing cost, accumulated amortization 56,800,000   54,600,000 45,200,000      
Revolving Credit Facility              
Basis Of Presentation And Significant Accounting Policies [Line Items]              
Issued and unused letters of credit 249,700,000   289,800,000        
Revolving Credit Facility | Line of Credit              
Basis Of Presentation And Significant Accounting Policies [Line Items]              
Deferred financing cost, net 1,800,000   2,100,000        
Deferred financing cost, accumulated amortization $ 9,900,000   9,600,000 $ 8,600,000      
Revolving Credit Facility | Line of Credit | Previously Reported [Member]              
Basis Of Presentation And Significant Accounting Policies [Line Items]              
Deferred financing cost, net     $ 2,058,000        
Vivint Flex Pay              
Basis Of Presentation And Significant Accounting Policies [Line Items]              
Number of payment options | payment 3   3        
Installment loans available to qualified customers, maximum amount provided by third party $ 4,000   $ 4,000        
Vivint Flex Pay | Minimum              
Basis Of Presentation And Significant Accounting Policies [Line Items]              
Installment loans available to qualified customers, term of loan 42 months   42 months        
Vivint Flex Pay | Maximum              
Basis Of Presentation And Significant Accounting Policies [Line Items]              
Installment loans available to qualified customers, term of loan 60 months   60 months        
ASU 2016-01 adoption              
Basis Of Presentation And Significant Accounting Policies [Line Items]              
New accounting pronouncement, cumulative effect of change on accumulated deficit           $ 700,000  
Other (income) loss, net     $ 300,000        
v3.19.2
Significant Accounting Policies - Depreciation and Amortization (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Property, Plant and Equipment [Line Items]          
Amortization of capitalized contract costs $ 105,031 $ 95,363 $ 398,174 $ 0 $ 0
Total depreciation and amortization 131,221 124,258 514,082 329,255 288,542
Depreciation of property, plant and equipment          
Property, Plant and Equipment [Line Items]          
Total depreciation and amortization 5,921 6,175 24,963 21,275 16,800
Amortization of subscriber acquisition costs          
Property, Plant and Equipment [Line Items]          
Total depreciation and amortization     0 206,153 154,877
Amortization of definite-lived intangibles          
Property, Plant and Equipment [Line Items]          
Total depreciation and amortization $ 20,272 $ 22,720 $ 90,945 $ 101,827 $ 116,865
v3.19.2
Revenue and Capitalized Contract Costs - Impact of New Accounting Pronouncement on Balance Sheet (Details) - USD ($)
$ in Thousands
Mar. 31, 2019
Dec. 31, 2018
Jan. 01, 2018
Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Capitalized contract costs, net $ 1,092,865 $ 1,115,775 $ 1,020,408 $ 0
Subscriber acquisition costs, net   0 0 1,308,558
Long-term notes receivables and other assets, net 121,796 119,819 91,436 88,723
Accrued expenses and other current liabilities 158,997 136,715 84,650 74,321
Deferred revenue 194,326 186,953 128,205 88,337
Deferred revenue, net of current portion 326,631 323,585 211,493 264,555
Deferred income tax liabilities 1,120 1,096 3,400 9,041
Accumulated deficit (2,193,169) (2,104,097) $ (1,635,502) (1,358,571)
Accumulated other comprehensive loss $ (28,267) (28,837)   (27,301)
Restatement Adjustment | ASU 2014-09 adoption        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Capitalized contract costs, net       1,020,408
Subscriber acquisition costs, net       (1,308,558)
Long-term notes receivables and other assets, net       2,713
Accrued expenses and other current liabilities       10,329
Deferred revenue       39,868
Deferred revenue, net of current portion       (53,062)
Deferred income tax liabilities       (5,641)
Accumulated deficit       (276,931)
Previously Reported        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Capitalized contract costs, net       0
Subscriber acquisition costs, net       1,308,558
Long-term notes receivables and other assets, net       88,723
Accrued expenses and other current liabilities       74,321
Deferred revenue       88,337
Deferred revenue, net of current portion       264,555
Deferred income tax liabilities       9,041
Accumulated deficit       $ (1,358,571)
Calculated under Revenue Guidance in Effect before Topic 606        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Capitalized contract costs, net   0    
Subscriber acquisition costs, net   1,518,188    
Accrued expenses and other current liabilities   126,900    
Deferred revenue   126,582    
Deferred revenue, net of current portion   440,474    
Deferred income tax liabilities   8,682    
Accumulated deficit   (1,754,426)    
Accumulated other comprehensive loss   (30,384)    
Difference between Revenue Guidance in Effect before and after Topic 606 | ASU 2014-09 adoption        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Capitalized contract costs, net   1,115,775    
Subscriber acquisition costs, net   (1,518,188)    
Accrued expenses and other current liabilities   9,815    
Deferred revenue   60,371    
Deferred revenue, net of current portion   (116,889)    
Deferred income tax liabilities   (7,586)    
Accumulated deficit   (349,671)    
Accumulated other comprehensive loss   $ 1,547    
v3.19.2
Revenue and Capitalized Contract Costs - Impact of New Accounting Pronouncement On Statement of Operations (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Revenues: $ 276,249 $ 246,597 $ 1,050,441 $ 881,983 $ 757,907
Operating expenses (exclusive of depreciation and amortization shown separately below) 83,076 83,760 355,813 321,476 264,865
Depreciation and amortization 131,221 124,258 514,082 329,255 288,542
Loss from operations (27,978) (71,631) (242,059) (155,493) (71,102)
Income tax (benefit) expense (301) (433) (1,611) 1,078 67
Net loss (89,156) (84,717) (467,914) (410,199) (275,957)
Foreign currency translation adjustment 570 (659) (2,218) 3,155 2,482
Total other comprehensive (loss) income 570 (659) (2,218) 1,462 3,493
Comprehensive loss (88,586) (85,376) (470,132) (408,737) (272,464)
Recurring and other revenue          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Revenues: $ 276,249 $ 246,597 1,050,441 843,420 724,478
Service and other sales revenue          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Revenues:     0 26,988 22,855
Activation fees          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Revenues:     0 $ 11,575 $ 10,574
Calculated under Revenue Guidance in Effect before Topic 606          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Revenues:     1,006,543    
Operating expenses (exclusive of depreciation and amortization shown separately below)     385,672    
Depreciation and amortization     367,879    
Loss from operations     (169,613)    
Income tax (benefit) expense     806    
Net loss     (397,885)    
Foreign currency translation adjustment     (3,765)    
Total other comprehensive (loss) income     (3,765)    
Comprehensive loss     (401,650)    
Calculated under Revenue Guidance in Effect before Topic 606 | Recurring and other revenue          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Revenues:     950,661    
Calculated under Revenue Guidance in Effect before Topic 606 | Service and other sales revenue          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Revenues:     46,177    
Calculated under Revenue Guidance in Effect before Topic 606 | Activation fees          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Revenues:     9,705    
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Revenues:     43,898    
Operating expenses (exclusive of depreciation and amortization shown separately below)     (29,859)    
Depreciation and amortization     146,203    
Loss from operations     (72,446)    
Income tax (benefit) expense     (2,417)    
Net loss     (70,029)    
Foreign currency translation adjustment     1,547    
Total other comprehensive (loss) income     1,547    
Comprehensive loss     (68,482)    
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | Recurring and other revenue          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Revenues:     99,780    
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | Service and other sales revenue          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Revenues:     (46,177)    
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | Activation fees          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Revenues:     $ (9,705)    
v3.19.2
Revenue and Capitalized Contract Costs - Impact of New Accounting Pronouncement On Statement of Cash Flows (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]          
Net loss $ (89,156) $ (84,717) $ (467,914) $ (410,199) $ (275,957)
Amortization of capitalized contract costs 105,031 95,363 398,174 0 0
Amortization of subscriber acquisition costs     0 206,153 154,877
Capitalized contract costs – deferred contract costs (80,614) (84,986) (499,252) 0 0
Subscriber acquisition costs – deferred contract costs     0 (457,679) (419,509)
Accrued expenses and other current liabilities (8,113) 30,252 91,469 62,208 12,702
Deferred revenue 9,820 33,793 172,905 247,500 24,613
Net cash used in operating activities $ (43,017) $ (59,582) (220,499) $ (309,332) $ (365,706)
Calculated under Revenue Guidance in Effect before Topic 606          
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]          
Net loss     (397,885)    
Amortization of capitalized contract costs     0    
Amortization of subscriber acquisition costs     251,971    
Capitalized contract costs – deferred contract costs     0    
Subscriber acquisition costs – deferred contract costs     (469,393)    
Accrued expenses and other current liabilities     93,886    
Deferred revenue     216,803    
Net cash used in operating activities     (220,499)    
Difference between Revenue Guidance in Effect before and after Topic 606 | ASU 2014-09 adoption          
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]          
Net loss     (70,029)    
Amortization of capitalized contract costs     398,174    
Amortization of subscriber acquisition costs     (251,971)    
Capitalized contract costs – deferred contract costs     (499,252)    
Subscriber acquisition costs – deferred contract costs     469,393    
Accrued expenses and other current liabilities     (2,417)    
Deferred revenue     (43,898)    
Net cash used in operating activities     $ 0    
v3.19.2
Revenue and Capitalized Contract Costs - Narrative (Details)
$ in Millions
3 Months Ended 12 Months Ended
Mar. 31, 2019
USD ($)
Mar. 31, 2018
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Revenue recognized that were included in deferred revenue $ 86.4 $ 59.8   $ 144.1
Revenue expected to be recognized from remaining performance obligations for subscription contracts $ 2,200.0   $ 2,200.0  
Capitalized contract cost, amortization period 5 years   5 years  
Expected life of customers     15 years  
Depreciation rate using declining balance method (percentage)     2.4  
Minimum | Subscriber Contracts        
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Contract with customer, term 3 years      
Maximum | Subscriber Contracts        
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Contract with customer, term 5 years      
v3.19.2
Long-Term Debt - Other Expense and Loss on Extinguishment (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Debt Instrument [Line Items]        
Previously deferred financing costs extinguished $ 0 $ 4,207 $ 4,667  
New financing costs   (9,302) (11,119) $ (9,241)
Senior Notes        
Debt Instrument [Line Items]        
Original premium extinguished     0  
Previously deferred financing costs extinguished     4,667  
New financing costs     18,372  
Total other expense and loss on extinguishment     23,039  
Previously deferred financing rolled over     1,949  
New deferred financing costs     10,645  
Total deferred financing costs     12,594  
Senior Notes | 7.875% Senior Secured Notes Due 2022        
Debt Instrument [Line Items]        
Previously deferred financing costs extinguished $ 0 0 0  
Term Loan | Senior Notes | 6.375% Senior Secured Notes due 2019        
Debt Instrument [Line Items]        
Original premium extinguished   (953)    
Previously deferred financing costs extinguished   4,207    
New financing costs   11,317    
Total other expense and loss on extinguishment   14,571    
Previously deferred financing rolled over   0    
New deferred financing costs   10,275    
Total deferred financing costs   $ 10,275    
August 2017 Issuance of 7.625 Notes Due 2023 | Senior Notes | 6.375% Senior Secured Notes due 2019        
Debt Instrument [Line Items]        
Original premium extinguished     0  
Previously deferred financing costs extinguished     1,408  
New financing costs     8,881  
Total other expense and loss on extinguishment     10,289  
Previously deferred financing rolled over     473  
New deferred financing costs     4,569  
Total deferred financing costs     5,042  
February 2017 Issuance of 7.875% Notes Due 2022 | Senior Notes | 6.375% Senior Secured Notes due 2019        
Debt Instrument [Line Items]        
Original premium extinguished     0  
Previously deferred financing costs extinguished     3,259  
New financing costs     9,491  
Total other expense and loss on extinguishment     12,750  
Previously deferred financing rolled over     1,476  
New deferred financing costs     6,076  
Total deferred financing costs     $ 7,552  
May 2016 Issuance of 7.875% Senior Secured Notes Due 2022 | Senior Notes | 7.875% Senior Secured Notes Due 2022        
Debt Instrument [Line Items]        
Original premium extinguished       355
Previously deferred financing costs extinguished       695
New financing costs       9,036
Total other expense and loss on extinguishment       10,086
Previously deferred financing rolled over       3,423
New deferred financing costs       6,628
Total deferred financing costs       $ 10,051
v3.19.2
Long-Term Debt - Deferred Financing Activity (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Deferred Financing Activity [Roll Forward]      
Beginning balance $ 34,423 $ 38,766 $ 43,783
Additions 0 10,275 11,044
Refinances   0 0
Early Extinguishment 0 (4,207) (4,667)
Amortized (2,487) (10,411) (11,394)
Ending balance 31,936 34,423 38,766
Senior Notes      
Deferred Financing Activity [Roll Forward]      
Early Extinguishment     (4,667)
Senior Notes | 6.375% Senior Secured Notes Due 2019      
Deferred Financing Activity [Roll Forward]      
Beginning balance 0 2,877 11,693
Additions   0 0
Refinances   0 (1,949)
Early Extinguishment   (1,877) (4,667)
Amortized   (1,000) (2,200)
Ending balance   0 2,877
Senior Notes | 8.75% Senior Notes Due 2020      
Deferred Financing Activity [Roll Forward]      
Beginning balance 5,380 11,209 15,053
Additions 0 0 0
Refinances   0 0
Early Extinguishment 0 (2,330) 0
Amortized (702) (3,499) (3,844)
Ending balance 4,678 5,380 11,209
Senior Notes | 8.875% Senior Secured Notes Due 2022      
Deferred Financing Activity [Roll Forward]      
Beginning balance 602 752 903
Additions 0 0 0
Refinances   0 0
Early Extinguishment 0 0 0
Amortized (38) (150) (151)
Ending balance 564 602 752
Senior Notes | 7.875% Senior Secured Notes Due 2022      
Deferred Financing Activity [Roll Forward]      
Beginning balance 12,799 16,067 11,714
Additions 0 0 6,076
Refinances   0 1,476
Early Extinguishment 0 0 0
Amortized (816) (3,268) (3,199)
Ending balance 11,983 12,799 16,067
Senior Notes | 7.625% Senior Notes Due 2023      
Deferred Financing Activity [Roll Forward]      
Beginning balance 3,922 4,762 0
Additions 0 0 4,569
Refinances   0 473
Early Extinguishment 0 0 0
Amortized (210) (840) (280)
Ending balance 3,712 3,922 4,762
Term Loan | Term Loan      
Deferred Financing Activity [Roll Forward]      
Beginning balance 9,662 0  
Additions 10,275  
Refinances   0  
Early Extinguishment 0 0  
Amortized (460) (613)  
Ending balance 9,202 9,662 0
Revolving Credit Facility | Line of Credit      
Deferred Financing Activity [Roll Forward]      
Beginning balance 2,058 3,099 4,420
Additions 0 0 399
Refinances   0 0
Early Extinguishment 0 0 0
Amortized (261) (1,041) (1,720)
Ending balance $ 1,797 $ 2,058 $ 3,099
v3.19.2
Long-Term Debt - Revolving Credit Facility (Details) - USD ($)
3 Months Ended 12 Months Ended
Nov. 16, 2012
Mar. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Aug. 10, 2017
Mar. 06, 2015
Debt Instrument [Line Items]            
Issued and unused letters of credit   $ 13,900,000 $ 13,800,000 $ 9,500,000    
Revolving Credit Facility            
Debt Instrument [Line Items]            
Credit facility, aggregate principal amount $ 200,000,000       $ 324,300,000 $ 289,400,000
Debt instrument, term 5 years          
Step down margin percentage   0.25% 0.25%      
Commitment fee, step down percentage     0.125%      
Outstanding borrowings     $ 0 $ 3,000,000    
Issued and unused letters of credit   $ 249,700,000 $ 289,800,000      
Revolving Credit Facility | Federal Funds Effective Swap Rate            
Debt Instrument [Line Items]            
Basis spread on variable interest rate percentage   0.50% 0.50%      
Revolving Credit Facility | LIBOR            
Debt Instrument [Line Items]            
Basis spread on variable interest rate percentage   1.00% 1.00%      
Revolving Credit Facility | Series A- Revolving Commitments            
Debt Instrument [Line Items]            
Credit facility, aggregate principal amount   $ 267,000,000 $ 267,000,000      
Revolving Credit Facility | Series A- Revolving Commitments | LIBOR            
Debt Instrument [Line Items]            
Basis spread on variable interest rate percentage   3.00% 3.00%      
Revolving Credit Facility | Series A- Revolving Commitments | Base Rate-based Borrowings            
Debt Instrument [Line Items]            
Basis spread on variable interest rate percentage   2.00% 2.00%      
Revolving Credit Facility | Series B- Revolving Commitments            
Debt Instrument [Line Items]            
Credit facility, aggregate principal amount   $ 21,200,000 $ 21,200,000      
Revolving Credit Facility | Series B- Revolving Commitments | LIBOR            
Debt Instrument [Line Items]            
Basis spread on variable interest rate percentage   4.00% 4.00%      
Revolving Credit Facility | Series B- Revolving Commitments | Base Rate-based Borrowings            
Debt Instrument [Line Items]            
Basis spread on variable interest rate percentage   3.00% 3.00%      
Revolving Credit Facility | Series D- Revolving Commitments            
Debt Instrument [Line Items]            
Credit facility, aggregate principal amount     $ 15,400,000      
Revolving Credit Facility | Series C- Revolving Commitments            
Debt Instrument [Line Items]            
Credit facility, aggregate principal amount     $ 20,800,000      
v3.19.2
Long-Term Debt - Summary of Debt (Detail) - USD ($)
Mar. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Aug. 31, 2017
May 31, 2016
Oct. 31, 2015
Nov. 16, 2012
Debt Instrument [Line Items]              
Outstanding Principal, excluding current maturities $ 3,087,149,000 $ 3,049,174,000          
Outstanding Principal, including current maturities 3,095,249,000 3,057,274,000 $ 2,829,465,000        
Unamortized Premium (Discount) 18,980,000 20,286,000 26,499,000        
Unamortized Deferred Financing Costs (30,139,000) (32,365,000) (35,667,000)        
Net Carrying Amount, noncurrent 3,075,990,000 3,037,095,000 2,820,297,000        
Net Carrying Amount 3,084,090,000 $ 3,045,195,000 2,820,297,000        
Senior Notes              
Debt Instrument [Line Items]              
Debt instrument interest rate, percentage   7.625%          
Senior Notes | 8.75% Senior Notes due 2020              
Debt Instrument [Line Items]              
Outstanding Principal, excluding current maturities 679,299,000 $ 679,299,000          
Outstanding Principal, including current maturities     930,000,000        
Unamortized Premium (Discount) 1,958,000 2,230,000 4,465,000        
Unamortized Deferred Financing Costs (4,678,000) (5,380,000) (11,209,000)        
Net Carrying Amount, noncurrent $ 676,579,000 $ 676,149,000          
Net Carrying Amount     923,256,000        
Debt instrument interest rate, percentage 8.875% 8.75%         8.75%
Senior Notes | 8.875% Senior Secured Notes Due 2022              
Debt Instrument [Line Items]              
Outstanding Principal, excluding current maturities $ 270,000,000 $ 270,000,000          
Outstanding Principal, including current maturities     270,000,000        
Unamortized Premium (Discount) (2,006,000) (2,122,000) (2,559,000)        
Unamortized Deferred Financing Costs (564,000) (602,000) (752,000)        
Net Carrying Amount, noncurrent $ 267,430,000 $ 267,276,000          
Net Carrying Amount     266,689,000        
Debt instrument interest rate, percentage 8.875% 8.875%       8.875%  
Senior Notes | 7.875% Senior Secured Notes Due 2022              
Debt Instrument [Line Items]              
Outstanding Principal, excluding current maturities $ 900,000,000 $ 900,000,000          
Outstanding Principal, including current maturities     900,000,000        
Unamortized Premium (Discount) 19,028,000 20,178,000 24,593,000        
Unamortized Deferred Financing Costs (11,983,000) (12,799,000) (16,067,000)        
Net Carrying Amount, noncurrent $ 907,045,000 $ 907,379,000          
Net Carrying Amount     908,526,000        
Debt instrument interest rate, percentage 7.875% 7.875%     7.875%    
Senior Notes | 7.625% Senior Notes Due 2023              
Debt Instrument [Line Items]              
Outstanding Principal, excluding current maturities $ 400,000,000 $ 400,000,000          
Outstanding Principal, including current maturities     400,000,000        
Unamortized Premium (Discount) 0 0 0        
Unamortized Deferred Financing Costs (3,712,000) (3,922,000) (4,762,000)        
Net Carrying Amount, noncurrent $ 396,288,000 $ 396,078,000          
Net Carrying Amount     395,238,000        
Debt instrument interest rate, percentage 7.625% 7.625%   7.625%      
Senior Notes | 6.375% Senior Secured Notes due 2019              
Debt Instrument [Line Items]              
Outstanding Principal, including current maturities     269,465,000        
Unamortized Premium (Discount)     0        
Unamortized Deferred Financing Costs     (2,877,000)        
Net Carrying Amount     266,588,000        
Debt instrument interest rate, percentage   6.375%         6.375%
Senior Notes | Senior Secured Revolving Credit Facilities              
Debt Instrument [Line Items]              
Outstanding Principal, excluding current maturities $ 40,000,000            
Unamortized Premium (Discount) 0            
Unamortized Deferred Financing Costs 0            
Net Carrying Amount, noncurrent 40,000,000            
Term Loan | Term Loan              
Debt Instrument [Line Items]              
Outstanding Principal, excluding current maturities 797,850,000 $ 799,875,000          
Unamortized Premium (Discount) 0 0          
Unamortized Deferred Financing Costs (9,202,000) (9,662,000)          
Net Carrying Amount, noncurrent 788,648,000 790,213,000          
Outstanding Principal, current maturities 8,100,000 8,100,000          
Revolving Credit Facility              
Debt Instrument [Line Items]              
Net Carrying Amount 40,000,000 0          
Deferred financing costs, net $ 1,800,000 $ 2,100,000 3,100,000        
Revolving Credit Facility | Series D Revolving Credit Facility due 2019              
Debt Instrument [Line Items]              
Outstanding Principal, including current maturities     3,000,000        
Unamortized Premium (Discount)     0        
Unamortized Deferred Financing Costs     0        
Net Carrying Amount     3,000,000        
Revolving Credit Facility | Series A, B Revolving Credit Facilities due 2021              
Debt Instrument [Line Items]              
Outstanding Principal, including current maturities     57,000,000        
Unamortized Premium (Discount)     0        
Unamortized Deferred Financing Costs     0        
Net Carrying Amount     $ 57,000,000        
v3.19.2
Balance Sheet Components - Schedule of Balance Sheet Component Balances (Detail) - USD ($)
$ in Thousands
Mar. 31, 2019
Dec. 31, 2018
Jan. 01, 2018
Dec. 31, 2017
Prepaid expenses $ 12,984 $ 7,183   $ 8,000
Deposits 1,353 904   1,596
Other 791 3,362   6,554
Total prepaid expenses and other current assets 15,128 11,449   16,150
Capitalized contract costs        
Capitalized contract costs 2,445,784 2,361,795   0
Accumulated amortization (1,352,919) (1,246,020)   0
Capitalized contract costs, net 1,092,865 1,115,775 $ 1,020,408 0
Subscriber acquisition costs        
Subscriber acquisition costs   0   1,837,388
Accumulated amortization   0   (528,830)
Subscriber acquisition costs, net   0 0 1,308,558
Long-term notes receivables and other assets        
RIC receivables, gross 137,884 143,065   114,556
Deferred interest (29,612) (34,164)   (36,049)
Security deposits 7,126 6,586   6,427
Investments 6,099 3,865   3,429
Other 299 467   360
Total long-term notes receivables and other assets, net 121,796 119,819 91,436 88,723
Accrued payroll and commissions        
Accrued payroll 25,849 36,753   30,267
Accrued commissions 11,432 28,726   27,485
Total accrued payroll and commissions 37,281 65,479   57,752
Accrued expenses and other current liabilities        
Accrued interest payable 55,157 28,885   28,737
Current portion of derivative liability 70,137 67,710   25,473
Service warranty accrual 8,825 8,813   0
Current portion of notes payable 8,100 8,100   0
Blackstone monitoring fee, a related party 1,000 4,793   933
Accrued taxes   5,351   4,585
Spectrum license obligation   0   3,861
Accrued payroll taxes and withholdings   5,097   3,185
Loss contingencies 2,131 3,131   2,156
Other 14,647 20,076   5,391
Total accrued expenses and other current liabilities $ 158,997 136,715 $ 84,650 $ 74,321
Previously Reported [Member]        
Accrued expenses and other current liabilities        
Other   $ 4,835    
v3.19.2
Goodwill and Intangible Assets - Changes in Carrying Amount of Goodwill (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Goodwill [Roll Forward]    
Goodwill beginning balance $ 836,970 $ 835,233
Effect of Foreign Currency Translation (2,115) 1,737
Goodwill ending balance $ 834,855 $ 836,970
v3.19.2
Goodwill and Intangible Assets - Additional Information (Detail)
$ in Thousands
3 Months Ended 12 Months Ended
Jan. 10, 2018
USD ($)
Mar. 31, 2019
USD ($)
Mar. 31, 2018
USD ($)
Dec. 31, 2018
USD ($)
market
Dec. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
market
Finite-Lived Intangible Assets [Line Items]            
Proceeds from the sale of intangible assets   $ 0 $ 53,693 $ 53,693 $ 0 $ 0
Amortization expense related to intangible assets   $ 20,300 22,700 $ 90,900 101,800 116,900
Definite-lived intangible assets, remaining amortization period   4 years   3 years 10 months 10 days    
Finite-lived patents, gross   $ 300   $ 300    
Goodwill   $ 835,404   $ 834,855 836,970 $ 835,233
Spectrum Licenses            
Finite-Lived Intangible Assets [Line Items]            
Number of mid-sized metropolitan markets | market       40   40
Indefinite-lived Intangible Assets Acquired           $ 31,300
Lease agreements term           7 years
Patents            
Finite-Lived Intangible Assets [Line Items]            
Acquisition of intangible assets       $ 1,700 $ 2,000  
Spectrum Leases | Verizon | Spectrum Licenses            
Finite-Lived Intangible Assets [Line Items]            
Proceeds from the sale of intangible assets $ 55,000   55,000      
Extinguishment of debt, amount (27,900)   (27,900)      
Indefinite-lived intangible assets, written off related to sale of business unit 31,300   31,300      
Indefinite-lived intangible assets, regulatory costs 1,300   1,200      
Net gain (loss) on disposal $ 50,400   $ 50,400      
v3.19.2
Goodwill and Intangible Assets - Schedule of Intangible Asset Balances (Detail) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]      
Definite-lived intangible assets, gross carrying amount $ 1,004,932 $ 1,003,240 $ 1,007,780
Accumulated Amortization (769,972) (748,778) (662,205)
Definite-lived intangible assets, net carrying amount 234,960 254,462 345,575
Indefinite-lived intangible assets: 623 623 31,876
Total intangible assets, gross carrying amount 1,005,555 1,003,863 1,039,656
Total intangible assets, net carrying amount $ 235,583 $ 255,085 377,451
Minimum      
Finite-Lived Intangible Assets [Line Items]      
Estimated useful lives of intangible asset 5 years 5 years  
Maximum      
Finite-Lived Intangible Assets [Line Items]      
Estimated useful lives of intangible asset 10 years 10 years  
Spectrum Licenses      
Finite-Lived Intangible Assets [Line Items]      
Indefinite-lived intangible assets:   $ 0 31,253
IP addresses      
Finite-Lived Intangible Assets [Line Items]      
Indefinite-lived intangible assets: $ 564 564 564
Domain names      
Finite-Lived Intangible Assets [Line Items]      
Indefinite-lived intangible assets: 59 59 59
Customer contracts      
Finite-Lived Intangible Assets [Line Items]      
Definite-lived intangible assets, gross carrying amount 965,670 964,100 970,147
Accumulated Amortization (737,443) (717,648) (637,780)
Definite-lived intangible assets, net carrying amount $ 228,227 $ 246,452 332,367
Estimated useful lives of intangible asset 10 years 10 years  
2GIG 2.0 technology      
Finite-Lived Intangible Assets [Line Items]      
Definite-lived intangible assets, gross carrying amount $ 17,000 $ 17,000 17,000
Accumulated Amortization (15,603) (15,292) (13,274)
Definite-lived intangible assets, net carrying amount $ 1,397 $ 1,708 3,726
Estimated useful lives of intangible asset 8 years 8 years  
Other technology      
Finite-Lived Intangible Assets [Line Items]      
Definite-lived intangible assets, gross carrying amount $ 2,917 $ 2,917 2,917
Accumulated Amortization (1,771) (1,667) (1,250)
Definite-lived intangible assets, net carrying amount $ 1,146 $ 1,250 1,667
Other technology | Minimum      
Finite-Lived Intangible Assets [Line Items]      
Estimated useful lives of intangible asset 5 years 5 years  
Other technology | Maximum      
Finite-Lived Intangible Assets [Line Items]      
Estimated useful lives of intangible asset 7 years 7 years  
Space Monkey technology      
Finite-Lived Intangible Assets [Line Items]      
Definite-lived intangible assets, gross carrying amount $ 7,100 $ 7,100 7,100
Accumulated Amortization (6,019) (5,756) (4,066)
Definite-lived intangible assets, net carrying amount $ 1,081 $ 1,344 3,034
Estimated useful lives of intangible asset 6 years 6 years  
Patents      
Finite-Lived Intangible Assets [Line Items]      
Definite-lived intangible assets, gross carrying amount $ 12,245 $ 12,123 10,616
Accumulated Amortization (9,136) (8,415) (5,835)
Definite-lived intangible assets, net carrying amount $ 3,109 $ 3,708 $ 4,781
Estimated useful lives of intangible asset 5 years 5 years  
v3.19.2
Goodwill and Intangible Assets - Schedule of Estimated Future Amortization Expense of Intangible Assets Excluding Patents Currently in Process (Detail) - USD ($)
$ in Thousands
Mar. 31, 2019
Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]    
2019   $ 79,062
2020 $ 67,990 67,807
2021 58,709 58,578
2022 48,759 48,674
2023 28 47
Thereafter $ 0 11
Total estimated amortization expense   $ 254,179
v3.19.2
Financial Instruments - Additional Information (Detail) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Available-for-sale securities, gross unrealized gain (loss) $ 2.2 $ 0.3 $ (0.3) $ (1.3) $ 1.0
Available-for-sale securities adjustment, net of tax       $ (0.3)  
Convertible Debt Securities | Privately Held Company          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Investments     $ 3.0    
v3.19.2
Financial Instruments - Components of Long-Term Debt Including Associated Interest Rates and Related Fair Values (Detail) - USD ($)
Mar. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Aug. 31, 2017
May 31, 2016
Oct. 31, 2015
Nov. 16, 2012
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]              
Face Value $ 3,084,090,000 $ 3,045,195,000 $ 2,820,297,000        
Senior Notes              
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]              
Stated Interest Rate   7.625%          
Senior Notes | 6.375% Senior Secured Notes Due 2019              
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]              
Face Value     266,588,000        
Stated Interest Rate   6.375%         6.375%
Senior Notes | 8.75% Senior Notes Due 2020              
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]              
Face Value     923,256,000        
Stated Interest Rate 8.875% 8.75%         8.75%
Senior Notes | 8.875% Senior Secured Notes Due 2022              
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]              
Face Value     266,689,000        
Stated Interest Rate 8.875% 8.875%       8.875%  
Senior Notes | 7.875% Senior Secured Notes Due 2022              
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]              
Face Value     908,526,000        
Stated Interest Rate 7.875% 7.875%     7.875%    
Senior Notes | 7.625% Senior Notes Due 2023              
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]              
Face Value     395,238,000        
Stated Interest Rate 7.625% 7.625%   7.625%      
Fair Value, Inputs, Level 2              
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]              
Face Value $ 3,055,249,000 $ 3,057,274,000 2,769,465,000        
Estimated Fair Value 2,992,913,000 2,889,616,000 2,893,547,000        
Fair Value, Inputs, Level 2 | Senior Notes | 6.375% Senior Secured Notes Due 2019              
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]              
Face Value   0 269,465,000        
Estimated Fair Value   0 273,507,000        
Fair Value, Inputs, Level 2 | Senior Notes | 8.75% Senior Notes Due 2020              
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]              
Face Value   679,299,000 930,000,000        
Estimated Fair Value   643,568,000 952,134,000        
Fair Value, Inputs, Level 2 | Senior Notes | 8.875% Senior Secured Notes Due 2022              
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]              
Face Value 270,000,000 270,000,000 270,000,000        
Estimated Fair Value 271,323,000 257,073,000 276,486,000        
Fair Value, Inputs, Level 2 | Senior Notes | 7.875% Senior Secured Notes Due 2022              
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]              
Face Value 900,000,000 900,000,000 900,000,000        
Estimated Fair Value 904,410,000 855,000,000 966,420,000        
Fair Value, Inputs, Level 2 | Senior Notes | 7.625% Senior Notes Due 2023              
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]              
Face Value 400,000,000 400,000,000 400,000,000        
Estimated Fair Value 342,120,000 326,000,000 425,000,000        
Fair Value, Inputs, Level 2 | Term Loan              
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]              
Face Value 805,950,000 807,975,000 0        
Estimated Fair Value $ 805,950,000 $ 807,975,000 $ 0        
v3.19.2
Restructuring and Asset Impairment Charges - Additional Information (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Restructuring Cost and Reserve [Line Items]      
Cash-based restructuring charges $ 4,683    
Loss on contract termination 5,500    
Wireless restructuring costs 400    
Restructuring reserve, noncurrent 400    
Employee severance and termination benefits      
Restructuring Cost and Reserve [Line Items]      
Cash-based restructuring charges $ 4,683 $ 0 $ 0
Subscriber Contracts In New Zealand And Puerto Rico      
Restructuring Cost and Reserve [Line Items]      
Amortization of subscriber acquisition costs     7,600
Loss on translation adjustment     1,100
Proceeds from sale of contracts     6,200
Net loss on disposal     $ 2,600
v3.19.2
Restructuring and Asset Impairment Charges - Summary of Charges (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Restructuring Cost and Reserve [Line Items]      
Restructuring, settlement and impairment provisions $ 4,683 $ 0 $ 1,013
Restructuring expenses 4,683    
Wireless Restructuring      
Restructuring Cost and Reserve [Line Items]      
Restructuring, settlement and impairment provisions 0 0 (1,538)
Subscriber Contracts      
Restructuring Cost and Reserve [Line Items]      
Restructuring, settlement and impairment provisions 0 0 2,551
Other Restructuring | Wireless Restructuring      
Restructuring Cost and Reserve [Line Items]      
Restructuring, settlement and impairment provisions 0 0 (710)
Contract termination costs      
Restructuring Cost and Reserve [Line Items]      
Restructuring expenses 0    
Contract termination costs | Wireless Restructuring      
Restructuring Cost and Reserve [Line Items]      
Restructuring, settlement and impairment provisions 0 0 (751)
Employee severance and termination benefits      
Restructuring Cost and Reserve [Line Items]      
Restructuring expenses 4,683 0 0
Employee severance and termination benefits | Wireless Restructuring      
Restructuring Cost and Reserve [Line Items]      
Restructuring, settlement and impairment provisions $ 0 $ 0 $ (77)
v3.19.2
Restructuring and Asset Impairment Charges - Summary of Restructuring Activity (Detail) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Restructuring Reserve [Roll Forward]        
Accrued restructuring, beginning balance $ 809 $ 558 $ 649 $ 4,275
Restructuring and impairment recoveries       (1,538)
Cash payments (280) (4,432) (91) (2,798)
Non-cash settlements       710
Restructuring expenses   4,683    
Accrued restructuring, ending balance 529 809 558 649
Asset impairments        
Restructuring Reserve [Roll Forward]        
Accrued restructuring, beginning balance 0 0 0 0
Restructuring and impairment recoveries       (710)
Cash payments   0 0 0
Non-cash settlements       710
Restructuring expenses   0    
Accrued restructuring, ending balance   0 0 0
Contract termination costs        
Restructuring Reserve [Roll Forward]        
Accrued restructuring, beginning balance 467 558 649 3,954
Restructuring and impairment recoveries       (751)
Cash payments (23) (91) (91) (2,554)
Non-cash settlements       0
Restructuring expenses   0    
Accrued restructuring, ending balance 444 467 558 649
Employee severance and termination benefits        
Restructuring Reserve [Roll Forward]        
Accrued restructuring, beginning balance 342 0 0 321
Restructuring and impairment recoveries       (77)
Cash payments (257) (4,341) 0 (244)
Non-cash settlements       0
Restructuring expenses   4,683 0 0
Accrued restructuring, ending balance $ 85 $ 342 $ 0 $ 0
v3.19.2
Income Taxes - Income Tax Provision (Detail) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Current income tax:          
Federal     $ 0 $ 0 $ 0
State     512 151 545
Foreign     (52) (24) 95
Total     460 127 640
Deferred income tax:          
Federal     0 (326) 0
State     0 (53) 0
Foreign     (2,071) 1,330 (573)
Total     (2,071) 951 (573)
Income tax (benefit) expense $ (301) $ (433) $ (1,611) $ 1,078 $ 67
v3.19.2
Income Taxes - Reconciliation of Tax Expense Computed at Statutory Federal Rate and Company's Tax Expense (Detail) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Income Tax Disclosure [Abstract]          
Computed expected tax expense     $ (98,598) $ (139,100) $ (93,770)
State income taxes, net of federal tax effect     404 65 360
Foreign income taxes     (690) (299) (949)
Other reconciling items     0 (344) 666
Permanent differences     4,406 2,008 1,688
Effect of Federal law change     0 166,876 0
Change in valuation allowance     92,867 (28,128) 92,072
Income tax (benefit) expense $ (301) $ (433) $ (1,611) $ 1,078 $ 67
v3.19.2
Income Taxes - Significant Portions of Deferred Tax Assets and Liabilities (Detail) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Gross deferred tax assets:    
Net operating loss carryforwards $ 591,244 $ 591,619
Deferred subscriber income 113,103 72,389
Interest expense limitation 56,381 0
Accrued expenses and allowances 18,766 17,633
Purchased intangibles and deferred financing costs 17,788 15,191
Inventory reserves 4,688 6,662
Property and equipment 0 1,176
Research and development credits 41 41
Valuation allowance (467,705) (304,509)
Deferred tax assets, net of valuation allowance 334,306 400,202
Gross deferred tax liabilities:    
Deferred capitalized contract costs (332,547) (408,610)
Property and equipment (2,242) 0
Prepaid expenses (613) (633)
Deferred tax liabilities, net (335,402) (409,243)
Net deferred tax liabilities $ (1,096) $ (9,041)
v3.19.2
Income Taxes - Summary of Net Operating Loss Carryforwards (Detail) - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Operating Loss Carryforwards [Line Items]    
Net operating loss carry forwards $ 4,081,466 $ 4,097,483
Internal Revenue Service (IRS) | Federal    
Operating Loss Carryforwards [Line Items]    
Net operating loss carry forwards 2,405,380 2,355,153
Internal Revenue Service (IRS) | States    
Operating Loss Carryforwards [Line Items]    
Net operating loss carry forwards 1,656,333 1,715,004
Canada Revenue Agency | Foreign Tax Authority    
Operating Loss Carryforwards [Line Items]    
Net operating loss carry forwards $ 19,753 $ 27,326
v3.19.2
Income Taxes - Additional Information (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Income Taxes And Tax Related [Line Items]    
Tax Cuts And Jobs Act Of 2017, incomplete accounting, change in tax rate, deferred tax asset, provisional income tax expense   $ 166,900
Tax Cuts and Job Acts of 2017, additional gross income subject to taxation $ 7,700  
Valuation allowance 467,705 304,509
Federal    
Income Taxes And Tax Related [Line Items]    
Research and development credits $ 41 $ 41
v3.19.2
Stock-Based Compensation and Equity - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Thousands
1 Months Ended 3 Months Ended 12 Months Ended
Mar. 31, 2019
Jun. 30, 2018
Aug. 31, 2016
Apr. 30, 2016
Mar. 31, 2019
Mar. 31, 2018
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Share-based compensation arrangement by share-based payment award, restricted stock units, number of shares exercisable             0    
Compensation expense related to outstanding Incentive Units, recognized over a weighted-average period             4 years 3 months 13 days    
Share-based compensation         $ 857 $ 204 $ 2,505 $ 1,595 $ 3,868
Proceeds from contributed capital     $ 30,600 $ 69,800 $ 0 $ 0 4,700 0 100,407
Capital contributions from parent             4,700 0 $ 100,407
Capital contributions returned to parent             3,100 $ 1,200  
Incentive Units Performance Based Awards | Share-based Compensation Award, Tranche One                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Share based compensation, award vesting rights, percentage         33.33%        
Incentive Units Time Based Awards                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Share-based compensation arrangement by share-based payment award, award vesting period         5 years        
Incentive Units Time Based Awards | Share-based Compensation Award, Tranche One                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Share based compensation, award vesting rights, percentage         66.67%        
Incentive Units Time Based Awards | Chief Executive Officer and President                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Incentive units issued as share-based compensation awards, outstanding (in shares) 42,169,456       42,169,456        
Incentive Units Time Based Awards | Senior Management and Board Member                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Incentive units issued as share-based compensation awards (in shares)         84,132,816        
Incentive Units                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Unrecognized compensation expense             $ 10,700    
Incentive Units | Minimum                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Expected volatility, percentage         55.00%        
Expected exercise term         3 years 11 months 16 days        
Risk-free rate, percentage         0.62%        
Incentive Units | Maximum                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Expected volatility, percentage         125.00%        
Expected exercise term         6 years        
Risk-free rate, percentage         2.61%        
Stock Appreciation Rights (SARs)                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Shares reserved for issuance 53,621,891       53,621,891   53,621,891    
Restricted Stock Units (RSUs)                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Share-based compensation arrangement by share-based payment award, award vesting period   3 years         3 years    
Incentive units issued as share-based compensation awards (in shares) 236,111 360,000              
Expected volatility, percentage   95.00%              
Expected exercise term   3 years              
Risk-free rate, percentage   2.61%              
Unrecognized compensation expense             $ 100    
Expected dividends, percentage   0.00%              
Restricted stock units, recognition period             2 years 5 months 10 days    
Restricted stock units, fair value at grant date (usd per share)   $ 0.48              
313 Acquisition LLC | Incentive Units Performance Based Awards | Share-based Compensation Award, Tranche One                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Share based compensation, award vesting rights, percentage             66.67%    
313 Acquisition LLC | Incentive Units Time Based Awards                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Share-based compensation arrangement by share-based payment award, award vesting period             5 years    
313 Acquisition LLC | Incentive Units Time Based Awards | Share-based Compensation Award, Tranche One                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Share based compensation, award vesting rights, percentage             33.33%    
Incentive units issued as share-based compensation awards (in shares)             85,362,836    
313 Acquisition LLC | Incentive Units Time Based Awards | Chief Executive Officer and President                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Incentive units issued as share-based compensation awards (in shares)             42,169,456    
313 Acquisition LLC | Incentive Units                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Share-based compensation arrangement by share-based payment award, fair value assumptions, minimum expected volatility rate             55.00%    
Share-based compensation arrangement by share-based payment award, fair value assumptions, maximum expected volatility rate             125.00%    
Share-based compensation arrangement by share-based payment award, fair value assumptions, minimum risk free interest rate             0.61%    
Weighted average grant date fair value of the outstanding units (in dollars per share)             $ 0.36 $ 0.30  
Share-based compensation arrangement by share-based payment award, fair value assumptions, maximum risk free interest rate             2.61%    
313 Acquisition LLC | Incentive Units | Minimum                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Expected exercise term             3 years 11 months 15 days    
313 Acquisition LLC | Incentive Units | Maximum                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Expected exercise term             6 years    
Vivint | Stock Appreciation Rights Time Based Awards                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Share-based compensation arrangement by share-based payment award, award vesting period         5 years        
Vivint | Stock Appreciation Rights Time Based Awards | Share-based Compensation Award, Tranche One                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Share based compensation, award vesting rights, percentage         66.67%   33.33%    
Vivint | Stock Appreciation Rights Performance Based Awards | Share-based Compensation Award, Tranche One                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Share based compensation, award vesting rights, percentage         33.33%   66.67%    
Vivint | Stock Appreciation Rights (SARs)                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Share-based compensation arrangement by share-based payment award, fair value assumptions, minimum expected volatility rate             55.00%    
Share-based compensation arrangement by share-based payment award, fair value assumptions, maximum expected volatility rate             125.00%    
Share-based compensation arrangement by share-based payment award, fair value assumptions, minimum risk free interest rate             0.61%    
Unrecognized compensation expense             $ 4,600    
Compensation expense related to outstanding Incentive Units, recognized over a weighted-average period             4 years 4 months 23 days    
Weighted average grant date fair value of the outstanding units (in dollars per share)             $ 0.23 $ 0.19  
Incentive units issued as share-based compensation awards, outstanding (in shares) 36,576,342       36,576,342   38,011,879    
Expected dividends, percentage         0.00%   0.00%    
Share-based compensation arrangement by share-based payment award, fair value assumptions, maximum risk free interest rate             2.61%    
Vivint | Stock Appreciation Rights (SARs) | Minimum                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Expected volatility, percentage         55.00%        
Expected exercise term         6 years   6 years    
Risk-free rate, percentage         0.61%        
Vivint | Stock Appreciation Rights (SARs) | Maximum                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Expected volatility, percentage         125.00%        
Expected exercise term         6 years 5 months 20 days   6 years 6 months    
Risk-free rate, percentage         2.61%        
Vivint Wireless | Stock Appreciation Rights (SARs)                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Incentive units issued as share-based compensation awards, outstanding (in shares)             0    
v3.19.2
Stock-Based Compensation and Equity - Summary of Incentive Unit Activity (Detail) - 313 Acquisition LLC - Incentive Units - USD ($)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]      
Outstanding, Beginning Balance (shares) 85,812,836.000 85,882,836  
Forfeited (shares) (450,000) (70,000)  
Outstanding, Ending Balance (shares) 85,362,836.000 85,812,836.000 85,882,836
Unvested shares expected to vest (shares) 59,663,659    
Exercisable (shares) 25,699,177    
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]      
Weighted average exercise price per share, outstanding, beginning balance (in dollars per share) $ 1.19 $ 1.19  
Weighted average exercise price per share, forfeited (in dollars per share) 1.93 1.30  
Weighted average exercise price per share, outstanding, ending balance (in dollars per share) 1.18 $ 1.19 $ 1.19
Weighted average exercise price per share, unvested shares expected to vest (in dollars per share) 1.22    
Weighted average exercise price per share, Exercisable (in dollars per share) $ 1.11    
Outstanding, weighted average remaining contractual life 4 years 9 months 23 days 5 years 9 months 23 days 6 years 9 months 23 days
Unvested shares expected to vest, weighted average remaining contractual life 4 years 10 months 36 days    
Exercisable at end of period, weighted average remaining contractual life 4 years 6 months    
Outstanding, aggregate intrinsic value $ 0 $ 0 $ 0
Unvested shares expected to vest, aggregate intrinsic value 0    
Exercisable, aggregate intrinsic value $ 0    
v3.19.2
Stock-Based Compensation and Equity - Summary of the SAR Activity (Detail) - Vivint - Stock Appreciation Rights (SARs) - USD ($)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]      
Outstanding, Beginning Balance (shares) 32,754,290.00 21,993,158  
Granted (shares) 14,630,000 13,250,640  
Forfeited (shares) (9,255,137) (2,374,864)  
Exercised (shares) (117,274) (114,644)  
Outstanding, Ending Balance (shares) 38,011,879.000 32,754,290.00 21,993,158
Unvested shares expected to vest (shares) 33,813,668    
Exercisable (shares) 4,198,211    
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]      
Weighted average exercise price per share, outstanding, beginning balance (in dollars per share) $ 1.26 $ 0.96  
Weighted average exercise price per share, granted (in dollars per share) 1.79 1.74  
Weighted average exercise price per share, forfeited (in dollars per share) 1.31 1.12  
Weighted average exercise price per share, exercised (in dollars per share) 0.89 0.72  
Weighted average exercise price per share, outstanding, ending balance (in dollars per share) 1.46 $ 1.26 $ 0.96
Weighted average exercise price per share, unvested shares expected to vest (in dollars per share) 1.51    
Weighted average exercise price per share, Exercisable (in dollars per share) $ 1.02    
Outstanding, weighted average remaining contractual life 8 years 24 days 9 years 2 months 16 days 8 years 2 months 22 days
Unvested shares expected to vest, weighted average remaining contractual life 8 years 2 months 40 days    
Exercisable at end of period, weighted average remaining contractual life 6 years 2 months 50 days    
Outstanding, aggregate intrinsic value $ 0 $ 0 $ 0
Unvested shares expected to vest, aggregate intrinsic value 0    
Exercisable, aggregate intrinsic value $ 0    
v3.19.2
Stock-Based Compensation and Equity - Stock-Based Compensation Expense (Detail) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Total stock-based compensation $ 857 $ 204 $ 2,505 $ 1,595 $ 3,868
Operating expenses          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Total stock-based compensation 43 18 129 65 68
Selling expenses          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Total stock-based compensation 87 45 285 217 (127)
General and administrative expenses          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Total stock-based compensation $ 727 $ 141 $ 2,091 $ 1,313 3,927
Executive Officer | General and administrative expenses          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Total stock-based compensation         $ 2,200
v3.19.2
Commitments and Contingencies - Additional Information (Detail)
$ in Millions
3 Months Ended 12 Months Ended
Mar. 31, 2019
USD ($)
Mar. 31, 2018
USD ($)
Dec. 31, 2018
USD ($)
market
Dec. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
market
Commitments And Contingencies [Line Items]          
Loss contingency accrual $ 2.1   $ 3.1 $ 2.2  
Operating leases, rent expense   $ 4.3 16.5 17.0 $ 16.0
Capital lease obligation     13.3 $ 21.7  
Previously Reported [Member]          
Commitments And Contingencies [Line Items]          
Loss contingency accrual     2.5    
Software Licenses, Marketing Activities, and Other Goods and Services          
Commitments And Contingencies [Line Items]          
Other off-balance sheet obligations     $ 59.5    
Vehicles          
Commitments And Contingencies [Line Items]          
Lease agreements term 36 months   36 months    
Average remaining life for fleet 10 months   19 months    
Spectrum Licenses          
Commitments And Contingencies [Line Items]          
Lease agreements term         7 years
Number of mid-sized metropolitan markets | market     40   40
Settled Litigation | Company vs. ADT Inc.          
Commitments And Contingencies [Line Items]          
Litigation settlement, amount     $ 10.0    
v3.19.2
Commitments and Contingencies - Future Minimum Lease Payments (Detail)
$ in Thousands
Dec. 31, 2018
USD ($)
Operating  
2019 $ 16,709
2020 15,478
2021 14,926
2022 13,655
2023 13,701
Thereafter 28,824
Amounts representing interest 0
Total lease payments 103,293
Capital  
2019 8,193
2020 5,209
2021 363
2022 7
2023 0
Thereafter 0
Amounts representing interest (459)
Total lease payments 13,313
Total  
2019 24,902
2020 20,687
2021 15,289
2022 13,662
2023 13,701
Thereafter 28,824
Amounts representing interest (459)
Total lease payments $ 116,606
v3.19.2
Related Party Transactions (Detail) - USD ($)
1 Months Ended 3 Months Ended 12 Months Ended 73 Months Ended
Sep. 30, 2018
Aug. 31, 2016
Apr. 30, 2016
Mar. 31, 2019
Mar. 31, 2018
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2018
Jan. 01, 2018
Related Party Transaction [Line Items]                    
Additional expenses incurred for other related-party transactions       $ 400,000 $ 600,000 $ 2,700,000 $ 3,500,000 $ 4,200,000    
Accrued expenses and other current liabilities       158,997,000   136,715,000 74,321,000   $ 136,715,000 $ 84,650,000
Prepaid expenses and other current assets           1,800,000 500,000   1,800,000  
Monitoring fees       1,000,000   4,793,000 933,000   4,793,000  
Long-term debt       3,084,090,000   3,045,195,000 2,820,297,000   3,045,195,000  
Financing costs           11,317,000 18,277,000 9,036,000    
Proceeds from contributed capital   $ 30,600,000 $ 69,800,000 0 0 4,700,000 0 100,407,000    
Share-based compensation       857,000 204,000 $ 2,505,000 1,595,000 3,868,000    
Expected repayment period           1 year        
Amounts due from employees           $ 300,000 300,000   300,000  
Prepaid expenses and other current assets       15,128,000   11,449,000 16,150,000   11,449,000  
Vivint                    
Related Party Transaction [Line Items]                    
Accrued expenses and other current liabilities       100,000   200,000 1,400,000   200,000  
Affiliated Entity | Minimum                    
Related Party Transaction [Line Items]                    
Annual monitoring base fee, minimum       2,700,000            
General and administrative expenses                    
Related Party Transaction [Line Items]                    
Share-based compensation       727,000 141,000 2,091,000 1,313,000 3,927,000    
General and administrative expenses | Executive Officer                    
Related Party Transaction [Line Items]                    
Share-based compensation               2,200,000    
7.875% Senior Secured Notes Due 2022 | Senior Notes                    
Related Party Transaction [Line Items]                    
Long-term debt             908,526,000      
7.875% Senior Secured Notes Due 2022 | Senior Notes | Blackstone Advisory Partners L.P.                    
Related Party Transaction [Line Items]                    
Deferred financing cost, net               500,000    
Solar | Affiliated Entity                    
Related Party Transaction [Line Items]                    
Sublease and other administrative expenses       2,400,000 1,000,000 $ 17,300,000 2,800,000 4,600,000    
Non-competition agreement, term           3 years        
Product development and supply agreement term           3 years        
Product development and supply agreement renewal term           1 year        
Blackstone Management Partners L.L.C. | Affiliated Entity                    
Related Party Transaction [Line Items]                    
Prepaid expenses and other current assets       1,000,000 1,200,000 $ 4,100,000 3,500,000 3,700,000 4,100,000  
Blackstone Management Partners L.L.C. | Affiliated Entity | Minimum                    
Related Party Transaction [Line Items]                    
Annual monitoring base fee, minimum           2,700,000        
Blackstone Advisory Partners L.P.                    
Related Party Transaction [Line Items]                    
Aggregate interest payments to related party                 900,000  
Blackstone Advisory Partners L.P. | Affiliated Entity                    
Related Party Transaction [Line Items]                    
Deferred financing cost, net $ 900,000         900,000     900,000  
Blackstone Advisory Partners L.P. | Term Loan | Affiliated Entity                    
Related Party Transaction [Line Items]                    
Long-term debt       79,300,000.0   75,100,000     75,100,000  
Blackstone Advisory Partners L.P. | 7.875% Senior Secured Notes Due 2022 | Senior Notes | Affiliated Entity                    
Related Party Transaction [Line Items]                    
Financing costs             $ 600,000      
Vivint Smart Home, Inc. | Affiliated Entity                    
Related Party Transaction [Line Items]                    
Proceeds from contributed capital 4,700,000                  
Sales Dealer Agreement | Solar | Affiliated Entity                    
Related Party Transaction [Line Items]                    
Agreement period, term             2 years      
Agreement period, renewal term             1 year      
Agreement period, termination notice period             90 days      
Blackstone Management Partners LLC Support and Services Agreement | Blackstone Management Partners L.L.C. | Affiliated Entity                    
Related Party Transaction [Line Items]                    
Fee paid for support services by BMP to Company       1,500,000.0   1,500,000     1,500,000  
Expenses from transactions with related party       0 $ 0 0 $ 0 $ 0    
Affiliated Entity | Blackstone Advisory Partners L.P.                    
Related Party Transaction [Line Items]                    
Long-term debt           75,100,000     75,100,000  
Affiliated Entity | Vivint Smart Home, Inc.                    
Related Party Transaction [Line Items]                    
Proceeds from contributed capital $ 4,700,000                  
Personal Use Of Corporate Jet                    
Related Party Transaction [Line Items]                    
Prepaid expenses and other current assets       $ 200,000   $ 1,800,000     $ 1,800,000  
v3.19.2
Segment Reporting and Business Concentrations - Additional Information (Detail)
3 Months Ended 12 Months Ended
Mar. 31, 2019
segment
Mar. 31, 2018
segment
Dec. 31, 2018
Segment
Country
Dec. 31, 2017
Segment
Dec. 31, 2016
Segment
Segment Reporting [Abstract]          
Number of operating segments 1 1 1 1 1
Number of geographic region company has historically operated in     3    
v3.19.2
Segment Reporting and Business Concentrations - Revenues and Long-Lived Assets by Geographic Region (Detail) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Segment Reporting Information [Line Items]          
Revenues from external customers $ 276,249 $ 246,597 $ 1,050,441 $ 881,983 $ 757,907
United States          
Segment Reporting Information [Line Items]          
Revenues from external customers     977,877 816,026 700,471
Canada          
Segment Reporting Information [Line Items]          
Revenues from external customers     $ 72,564 $ 65,957 $ 57,436
v3.19.2
Guarantor and Non-Guarantor Supplemental Financial Information - Condensed Consolidating Statements of Operations and Comprehensive Loss (Detail) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Condensed Income Statements, Captions [Line Items]          
Revenues: $ 276,249 $ 246,597 $ 1,050,441 $ 881,983 $ 757,907
Costs and expenses 304,227 318,228 1,292,500 1,037,476 829,009
Loss from operations (27,978) (71,631) (242,059) (155,493) (71,102)
Loss from subsidiaries 0 0 0 0 0
Other expense (income), net 61,479 13,519 227,466 253,628 204,788
Loss before income taxes (89,457) (85,150) (469,525) (409,121) (275,890)
Income tax expense (benefit) (301) (433) (1,611) 1,078 67
Net loss (89,156) (84,717) (467,914) (410,199) (275,957)
Other comprehensive (loss) income, net of tax effects:          
Net loss (89,156) (84,717) (467,914) (410,199) (275,957)
Foreign currency translation adjustment 570 (659) (2,218) 3,155 2,482
Unrealized (loss) gain on marketable securities     0 (1,693) 1,011
Total other comprehensive income (loss) 570 (659) (2,218) 1,462 3,493
Comprehensive loss (88,586) (85,376) (470,132) (408,737) (272,464)
Eliminations          
Condensed Income Statements, Captions [Line Items]          
Revenues: (202) (656) (2,567) (2,690) (2,704)
Costs and expenses (202) (656) (2,567) (2,690) (2,704)
Loss from operations 0 0 0 0 0
Loss from subsidiaries 115,137 111,037 679,579 575,696 345,594
Other expense (income), net 0 0 0 0 0
Loss before income taxes 115,137 111,037 679,579 575,696 345,594
Income tax expense (benefit) 0 0 0 0 0
Net loss 115,137 111,037 679,579 575,696 345,594
Other comprehensive (loss) income, net of tax effects:          
Net loss 115,137 111,037 679,579 575,696 345,594
Foreign currency translation adjustment (1,140) 1,318 4,436 (6,310) (4,964)
Unrealized (loss) gain on marketable securities       3,386 (2,022)
Total other comprehensive income (loss) (1,140) 1,318 4,436 (2,924) (6,986)
Comprehensive loss 113,997 112,355 684,015 572,772 338,608
Parent | Reportable Legal Entities          
Condensed Income Statements, Captions [Line Items]          
Revenues: 0 0 0 0 0
Costs and expenses 0 0 0 0 0
Loss from operations 0 0 0 0 0
Loss from subsidiaries (89,156) (84,717) (467,914) (410,199) (275,957)
Other expense (income), net 0 0 0 0 0
Loss before income taxes (89,156) (84,717) (467,914) (410,199) (275,957)
Income tax expense (benefit) 0 0 0 0 0
Net loss (89,156) (84,717) (467,914) (410,199) (275,957)
Other comprehensive (loss) income, net of tax effects:          
Net loss (89,156) (84,717) (467,914) (410,199) (275,957)
Foreign currency translation adjustment 570 (659) (2,218) 3,155 2,482
Unrealized (loss) gain on marketable securities       (1,693) 1,011
Total other comprehensive income (loss) 570 (659) (2,218) 1,462 3,493
Comprehensive loss (88,586) (85,376) (470,132) (408,737) (272,464)
Guarantor Subsidiaries | Reportable Legal Entities          
Condensed Income Statements, Captions [Line Items]          
Revenues: 263,539 233,788 998,190 841,658 715,072
Costs and expenses 291,509 305,221 1,240,570 997,247 787,138
Loss from operations (27,970) (71,433) (242,380) (155,589) (72,066)
Loss from subsidiaries 0 0 0 0 0
Other expense (income), net (52) (46,970) (35,936) 13,545 (1,207)
Loss before income taxes (27,918) (24,463) (206,444) (169,134) (70,859)
Income tax expense (benefit) 182 172 512 (228) 545
Net loss (28,100) (24,635) (206,956) (168,906) (71,404)
Other comprehensive (loss) income, net of tax effects:          
Net loss (28,100) (24,635) (206,956) (168,906) (71,404)
Foreign currency translation adjustment 0 0 0 0 0
Unrealized (loss) gain on marketable securities       (1,693) 1,011
Total other comprehensive income (loss) 0 0 0 (1,693) 1,011
Comprehensive loss (28,100) (24,635) (206,956) (170,599) (70,393)
Non-Guarantor Subsidiaries | Reportable Legal Entities          
Condensed Income Statements, Captions [Line Items]          
Revenues: 12,912 13,465 54,818 43,015 45,539
Costs and expenses 12,920 13,663 54,497 42,919 44,575
Loss from operations (8) (198) 321 96 964
Loss from subsidiaries 0 0 0 0 0
Other expense (income), net (1,644) 2,092 7,153 (4,619) (325)
Loss before income taxes 1,636 (2,290) (6,832) 4,715 1,289
Income tax expense (benefit) (483) (605) (2,123) 1,306 (478)
Net loss 2,119 (1,685) (4,709) 3,409 1,767
Other comprehensive (loss) income, net of tax effects:          
Net loss 2,119 (1,685) (4,709) 3,409 1,767
Foreign currency translation adjustment 570 (659) (2,218) 3,155 2,482
Unrealized (loss) gain on marketable securities       0 0
Total other comprehensive income (loss) 570 (659) (2,218) 3,155 2,482
Comprehensive loss 2,689 (2,344) (6,927) 6,564 4,249
APX Group, Inc. | Reportable Legal Entities          
Condensed Income Statements, Captions [Line Items]          
Revenues: 0 0 0 0 0
Costs and expenses 0 0 0 0 0
Loss from operations 0 0 0 0 0
Loss from subsidiaries (25,981) (26,320) (211,665) (165,497) (69,637)
Other expense (income), net 63,175 58,397 256,249 244,702 206,320
Loss before income taxes (89,156) (84,717) (467,914) (410,199) (275,957)
Income tax expense (benefit) 0 0 0 0 0
Net loss (89,156) (84,717) (467,914) (410,199) (275,957)
Other comprehensive (loss) income, net of tax effects:          
Net loss (89,156) (84,717) (467,914) (410,199) (275,957)
Foreign currency translation adjustment 570 (659) (2,218) 3,155 2,482
Unrealized (loss) gain on marketable securities       (1,693) 1,011
Total other comprehensive income (loss) 570 (659) (2,218) 1,462 3,493
Comprehensive loss $ (88,586) $ (85,376) $ (470,132) $ (408,737) $ (272,464)
v3.19.2
Guarantor and Non-Guarantor Supplemental Financial Information - Condensed Consolidating Statements of Cash Flows (Detail) - USD ($)
$ in Thousands
1 Months Ended 3 Months Ended 12 Months Ended
Aug. 31, 2016
Apr. 30, 2016
Mar. 31, 2019
Mar. 31, 2018
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Cash flows from operating activities:              
Net cash (used in) provided by operating activities         $ (220,499) $ (309,332) $ (365,706)
Cash flows from investing activities:              
Subscriber acquisition costs – company owned equipment         0 0 (5,243)
Capital expenditures     $ (1,391) $ (6,407) (19,412) (20,391) (11,642)
Proceeds from sale of intangibles     0 53,693 53,693 0 0
Proceeds from sale of capital assets     (51) 149 127 776 3,123
Investment in subsidiary     0   0 0 0
Acquisition of intangible assets     (369) (849) (1,486) (1,745) (1,385)
Other assets           (301)  
Net cash provided by (used in) investing activities         32,922 (21,661) (15,147)
Cash flows from financing activities:              
Proceeds from notes payable         810,000 724,750 604,000
Repayments of notes payable     (2,025) 0 (522,191) (450,000) (235,535)
Borrowings from revolving credit facility     40,000 57,000 201,000 196,895 57,000
Repayments on revolving credit facility     0 (40,000) (261,000) (136,895) (77,000)
Proceeds from capital contribution $ 30,600 $ 69,800 0 0 4,700 0 100,407
Payment of intercompany settlement           (2,983) 0
Intercompany receivable           0 0
Intercompany payable           0 0
Repayments of capital lease obligations       (3,418) (12,354) (10,007) (8,315)
Financing costs         (11,317) (18,277) (9,036)
Deferred financing costs         (9,302) (11,119) (9,241)
Return of capital         (3,129) (1,151)  
Net cash provided by financing activities         196,407 291,213 422,280
Effect of exchange rate changes on cash     25 (19) 71 132 (466)
Net decrease in cash and cash equivalents     (9,082) (399) 8,901 (39,648) 40,961
Cash and cash equivalents:              
Beginning of period     12,773 3,872 3,872 43,520 2,559
End of period     3,691 3,473 12,773 3,872 43,520
Reportable Legal Entities              
Cash flows from financing activities:              
Repayments of notes payable             0
Financing costs             0
Eliminations              
Cash flows from operating activities:              
Net cash (used in) provided by operating activities         0 0 0
Cash flows from investing activities:              
Subscriber acquisition costs – company owned equipment             0
Capital expenditures     0 0 0 0 0
Proceeds from sale of intangibles       0 0    
Proceeds from sale of capital assets     0 0 0 0 0
Investment in subsidiary     46,605   202,863 324,071 508,621
Acquisition of intangible assets     0 0 0 0 0
Other assets           0  
Net cash provided by (used in) investing activities         202,863 324,071 508,621
Cash flows from financing activities:              
Proceeds from notes payable         0 0 0
Repayments of notes payable     0   0 0 0
Borrowings from revolving credit facility     0 0 0 0 0
Repayments on revolving credit facility       0 0 0 0
Proceeds from capital contribution     (46,369) (17,416) (209,121) (326,373) (100,407)
Payment of intercompany settlement           0 0
Intercompany receivable           (3,621) (12,906)
Intercompany payable           3,621 (395,308)
Repayments of capital lease obligations       0 0 0 0
Financing costs         0 0 0
Deferred financing costs         0 0 0
Return of capital         6,258 2,302  
Net cash provided by financing activities         (202,863) (324,071) (508,621)
Effect of exchange rate changes on cash     0 0 0 0 0
Net decrease in cash and cash equivalents     0 0 0 0 0
Cash and cash equivalents:              
Beginning of period     0 0 0 0 0
End of period     0 0 0 0 0
Parent Company | Reportable Legal Entities              
Cash flows from operating activities:              
Net cash (used in) provided by operating activities         0 0 0
Cash flows from investing activities:              
Subscriber acquisition costs – company owned equipment             0
Capital expenditures     0 0 0 0 0
Proceeds from sale of intangibles       0 0    
Proceeds from sale of capital assets     0 0 0 0 0
Investment in subsidiary     (118)   (1,571) 1,151 (100,407)
Acquisition of intangible assets     0 0 0 0 0
Other assets           0  
Net cash provided by (used in) investing activities         (1,571) 1,151 (100,407)
Cash flows from financing activities:              
Proceeds from notes payable         0 0 0
Repayments of notes payable     0   0 0  
Borrowings from revolving credit facility     0 0 0 0 0
Repayments on revolving credit facility       0 0 0 0
Proceeds from capital contribution     0 0 4,700 0 100,407
Payment of intercompany settlement           0 0
Intercompany receivable           0 0
Intercompany payable           0 0
Repayments of capital lease obligations       0 0 0 0
Financing costs         0 0  
Deferred financing costs         0 0 0
Return of capital         (3,129) (1,151)  
Net cash provided by financing activities         1,571 (1,151) 100,407
Effect of exchange rate changes on cash     0 0 0 0 0
Net decrease in cash and cash equivalents     0 0 0 0 0
Cash and cash equivalents:              
Beginning of period     0 0 0 0 0
End of period     0 0 0 0 0
Guarantor Subsidiaries | Reportable Legal Entities              
Cash flows from operating activities:              
Net cash (used in) provided by operating activities         (220,952) (313,290) (380,508)
Cash flows from investing activities:              
Subscriber acquisition costs – company owned equipment             (5,243)
Capital expenditures     (1,391) (6,407) (19,409) (20,391) (11,642)
Proceeds from sale of intangibles       53,693 53,693    
Proceeds from sale of capital assets     (51) 149 127 776 3,080
Investment in subsidiary     0   0 0 0
Acquisition of intangible assets     (369) (849) (1,486) (1,745) (1,385)
Other assets           (301)  
Net cash provided by (used in) investing activities         32,925 (21,661) (15,190)
Cash flows from financing activities:              
Proceeds from notes payable         0 0 0
Repayments of notes payable     0   0 0  
Borrowings from revolving credit facility     0 0 0 0 0
Repayments on revolving credit facility       0 0 0 0
Proceeds from capital contribution     46,369 17,416 204,421 326,373 0
Payment of intercompany settlement           (2,983) 3,000
Intercompany receivable           3,621 12,906
Intercompany payable           0 408,214
Repayments of capital lease obligations       (3,305) (12,011) (9,667) (8,295)
Financing costs         0 0  
Deferred financing costs         0 0 0
Return of capital         (3,129) (1,151)  
Net cash provided by financing activities         189,281 316,193 415,825
Effect of exchange rate changes on cash     0 0 0 0 0
Net decrease in cash and cash equivalents     (682) 572 1,254 (18,758) 20,127
Cash and cash equivalents:              
Beginning of period     682 (572) (572) 18,186 (1,941)
End of period     0 0 682 (572) 18,186
Non-Guarantor Subsidiaries | Reportable Legal Entities              
Cash flows from operating activities:              
Net cash (used in) provided by operating activities         453 3,958 14,802
Cash flows from investing activities:              
Subscriber acquisition costs – company owned equipment             0
Capital expenditures     0 0 (3) 0 0
Proceeds from sale of intangibles       0 0    
Proceeds from sale of capital assets     0 0 0 0 43
Investment in subsidiary     0   0 0 0
Acquisition of intangible assets     0 0 0 0 0
Other assets           0  
Net cash provided by (used in) investing activities         (3) 0 43
Cash flows from financing activities:              
Proceeds from notes payable         0 0 0
Repayments of notes payable     0   0 0  
Borrowings from revolving credit facility     0 0 0 0 0
Repayments on revolving credit facility       0 0 0 0
Proceeds from capital contribution     0 0 0 0 0
Payment of intercompany settlement           0 (3,000)
Intercompany receivable           0 0
Intercompany payable           (3,621) (12,906)
Repayments of capital lease obligations       (113) (343) (340) (20)
Financing costs         0 0  
Deferred financing costs         0 0 0
Return of capital         0 0  
Net cash provided by financing activities         (343) (3,961) (15,926)
Effect of exchange rate changes on cash     25 (19) 71 132 (466)
Net decrease in cash and cash equivalents     (6) (555) 178 129 (1,547)
Cash and cash equivalents:              
Beginning of period     961 783 783 654 2,201
End of period     955 228 961 783 654
APX Group, Inc. | Reportable Legal Entities              
Cash flows from operating activities:              
Net cash (used in) provided by operating activities         0 0 0
Cash flows from investing activities:              
Subscriber acquisition costs – company owned equipment             0
Capital expenditures     0 0 0 0 0
Proceeds from sale of intangibles       0 0    
Proceeds from sale of capital assets     0 0 0 0 0
Investment in subsidiary     (46,487)   (201,292) (325,222) (408,214)
Acquisition of intangible assets     0 0 0 0 0
Other assets           0  
Net cash provided by (used in) investing activities         (201,292) (325,222) (408,214)
Cash flows from financing activities:              
Proceeds from notes payable         810,000 724,750 604,000
Repayments of notes payable     (2,025)   (522,191) (450,000) (235,535)
Borrowings from revolving credit facility     40,000 57,000 201,000 196,895 57,000
Repayments on revolving credit facility       (40,000) (261,000) (136,895) (77,000)
Proceeds from capital contribution     0 0 4,700 0 100,407
Payment of intercompany settlement           0 0
Intercompany receivable             0
Intercompany payable           0 0
Repayments of capital lease obligations       0 0 0 0
Financing costs         (11,317) (18,277) (9,036)
Deferred financing costs         (9,302) (11,119) (9,241)
Return of capital         (3,129) (1,151)  
Net cash provided by financing activities         208,761 304,203 430,595
Effect of exchange rate changes on cash     0 0 0 0 0
Net decrease in cash and cash equivalents     (8,394) (416) 7,469 (21,019) 22,381
Cash and cash equivalents:              
Beginning of period     11,130 3,661 3,661 24,680 2,299
End of period     $ 2,736 $ 3,245 $ 11,130 $ 3,661 $ 24,680
v3.19.2
Subsequent Events (Details) - Senior Notes - USD ($)
May 10, 2019
Mar. 31, 2019
Dec. 31, 2018
Subsequent Event [Line Items]      
Debt instrument interest rate, percentage     7.625%
Senior Notes Due 2024 | Subsequent Event      
Subsequent Event [Line Items]      
Principal amount $ 225,000,000    
Debt instrument interest rate, percentage 8.50%    
8.75% Senior Notes Due 2020      
Subsequent Event [Line Items]      
Principal amount   $ 679,299,000  
Debt instrument interest rate, percentage   8.75% 8.75%
8.75% Senior Notes Due 2020 | Subsequent Event      
Subsequent Event [Line Items]      
Repayments of long-term debt $ 225,000,000    
v3.19.2
Label Element Value
Accounting Standards Update 2016-02 [Member]  
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption $ 84,000
Accounting Standards Update 2016-02 [Member] | Retained Earnings [Member]  
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption 84,000
Accounting Standards Update 2014-09 [Member]  
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption (282,572,000)
Accounting Standards Update 2014-09 [Member] | Previously Reported [Member]  
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption (276,930,000)
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member]  
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption (282,572,000)
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | Previously Reported [Member]  
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption (276,930,000)
Accounting Standards Update 2016-01 [Member] | AOCI Attributable to Parent [Member]  
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption 680,000
Accounting Standards Update 2016-01 [Member] | Retained Earnings [Member]  
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption $ (680,000)