XPERI INC., 10-K filed on 3/6/2023
Annual Report
v3.22.4
Document and Entity Information - USD ($)
 12 Months Ended
Dec. 31, 2022
Feb. 17, 2023
Jun. 30, 2022
Cover [Abstract]      
Entity Registrant Name XPERI INC.    
Trading Symbol XPER    
Entity Central Index Key 0001788999    
Current Fiscal Year End Date --12-31    
Entity Filer Category Non-accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company true    
Entity Ex Transition Period false    
Document Type 10-K    
Document Period End Date Dec. 31, 2022    
Document Fiscal Year Focus 2022    
Document Fiscal Period Focus FY    
Amendment Flag false    
Entity Common Stock, Shares Outstanding   42,084,591  
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Public Float     $ 0
Entity Interactive Data Current Yes    
Entity Shell Company false    
Entity File Number 001-41486    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 83-4470363    
Entity Address, Address Line One 2190 Gold Street    
Entity Address, City or Town San Jose    
Entity Address, State or Province CA    
Entity Address, Postal Zip Code 95002    
City Area Code 408    
Local Phone Number 519-9100    
Document Annual Report true    
ICFR Auditor Attestation Flag false    
Document Transition Report false    
Security12b Title Common Stock, par value $0.001 per share    
Security Exchange Name NYSE    
Auditor Name PricewaterhouseCoopers LLP    
Auditor Location San Jose, California, USA    
Auditor Firm ID 238    
Documents Incorporated by Reference

DOCUMENTS INCORPORATED BY REFERENCE:

Portions of the registrant’s Proxy Statement for the registrant’s 2023 Annual Meeting of Stockholders will be filed with the Commission within 120 days after the close of the registrant’s 2022 fiscal year and are incorporated by reference in Part III of this Annual Report on Form 10-K to the extent stated herein.

    
v3.22.4
Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Statement [Abstract]      
Revenue $ 502,260 $ 486,483 $ 376,101
Operating expenses:      
Cost of revenue, excluding depreciation and amortization of intangible assets 122,946 125,626 77,788
Research and development 216,355 194,869 163,407
Selling, general and administrative 217,402 199,921 172,594
Depreciation expense 20,501 22,584 16,666
Amortization expense 62,209 105,311 98,209
Impairment of long-lived assets 7,724    
Goodwill impairment 604,555    
Total operating expenses 1,251,692 648,311 528,664
Operating loss (749,432) (161,828) (152,563)
Other income, net 1,815 1,590 1,535
Loss before taxes (747,617) (160,238) (151,028)
Provision for (benefit from) income taxes 13,589 18,840 (9,735)
Net loss (761,206) (179,078) (141,293)
Less: Net loss attributable to noncontrolling interest (3,722) (3,456) (2,966)
Net loss attributable to the Company $ (757,484) $ (175,622) $ (138,327)
Loss per share attributable to the Company:      
Basic $ (18.02) $ (4.18) $ (3.29)
Diluted $ (18.02) $ (4.18) $ (3.29)
Weighted average number of shares used in per share calculations-basic 42,029 42,024 42,024
Weighted average number of shares used in per share calculations-diluted 42,029 42,024 42,024
v3.22.4
Consolidated Statements of Comprehensive Loss - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Statement of Comprehensive Income [Abstract]      
Net loss $ (761,206) $ (179,078) $ (141,293)
Other comprehensive loss, net of tax:      
Change in foreign currency translation adjustment (3,349) (1,987) 1,311
Unrealized losses on cash flow hedges (94)    
Comprehensive loss (764,649) (181,065) (139,982)
Less: Comprehensive loss attributable to noncontrolling interest (3,722) (3,456) (2,966)
Comprehensive loss attributable to the Company $ (760,927) $ (177,609) $ (137,016)
v3.22.4
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Current assets:    
Cash and cash equivalents $ 160,127 $ 120,695
Accounts receivable, net 64,712 79,494
Unbilled contracts receivable, net 65,251 50,962
Other current assets 42,174 25,985
Total current assets 332,264 277,136
Long-term unbilled contracts receivable 4,289 3,825
Property and equipment, net 47,827 57,477
Operating lease right-of-use assets 52,901 61,758
Intangible assets, net 264,376 270,934
Long-term deferred tax assets 2,096 1,847
Goodwill 0 536,512
Other long-term assets 33,158 19,223
Total assets 736,911 1,228,712
Current liabilities:    
Accounts payable 14,864 7,362
Accrued liabilities 110,014 84,404
Deferred revenue 25,363 28,211
Total current liabilities 150,241 119,977
Long-term deferred tax liabilities 20,559 14,428
Deferred revenue, less current portion 19,129 23,663
Long-term debt, net 50,000  
Noncurrent operating lease liabilities 42,666 49,017
Other long-term liabilities 5,330 5,670
Total liabilities 287,925 212,755
Commitments and contingencies (Note 16)
Company stockholders’ equity:    
Net Investment by Former Parent   1,025,838
Preferred stock: $0.001 par value; 6,000 shares authorized; no shares issued and outstanding
Common stock: $0.001 par value; 140,000 shares authorized; 42,066 and no shares issued; 42,066 and no shares outstanding, respectively 42  
Additional paid-in capital 1,136,330  
Accumulated other comprehensive loss (4,119) (676)
Accumulated deficit (668,835)  
Total Company stockholders’ equity 463,418 1,025,162
Noncontrolling interest (14,432) (9,205)
Total equity 448,986 1,015,957
Total liabilities and equity $ 736,911 $ 1,228,712
v3.22.4
Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2022
Dec. 31, 2021
Statement of Financial Position [Abstract]    
Preferred stock, par value (in dollars per share) $ 0.001 $ 0.001
Preferred stock, shares authorized (in shares) 6,000,000 6,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, shares authorized (in shares) 140,000,000 140,000,000
Common stock, shares issued (in shares) 42,066,000 0
Common stock, shares outstanding (in shares) 42,066,000 0
v3.22.4
Consolidated Statements Of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Cash flows from operating activities:      
Net loss $ (761,206) $ (179,078) $ (141,293)
Adjustments to reconcile net loss to net cash from operating activities:      
Depreciation of property and equipment 20,501 22,584 16,666
Amortization of intangible assets 62,209 105,311 98,209
Stock-based compensation expense 45,303 33,509 19,183
Goodwill impairment 604,555    
Impairment of long-lived assets 7,724    
Deferred income tax (1,602) 6,913 (20,116)
Provision for credit losses 700 (1,016) 5,973
Other (676) (738) 3,256
Changes in operating assets and liabilities:      
Accounts receivable 17,505 (2,416) (10,827)
Unbilled contracts receivable, net (12,473) 15,475 3,436
Other assets (20,439) 15,296 (5,170)
Accounts payable 6,633 (4,018) (3,111)
Accrued and other liabilities 11,123 (37,249) 12,064
Deferred revenue (8,302) 1,974 (2,047)
Net cash from operating activities (28,445) (23,453) (23,777)
Cash flows from investing activities:      
Purchases of property and equipment (14,207) (8,893) (6,601)
Net cash received (paid) for mergers and acquisitions (50,473) (12,401) 33,143
Proceeds from sales of short-term investments     415
Purchases of intangible assets (166) (186) (435)
Net cash from investing activities (64,846) (21,480) 26,522
Cash flows from financing activities:      
Net proceeds from Parent capital contributions 83,235    
Net transfer from Former Parent 52,802 83,330 34,244
Withholding taxes related to net share settlement of restricted awards (286)    
Net cash from financing activities 135,751 83,330 34,244
Effect of exchange rate changes on cash and cash equivalents (3,028) (3,326) 1,371
Net increase in cash and cash equivalents 39,432 35,071 38,360
Cash and cash equivalents at beginning of period 120,695 85,624 47,264
Cash and cash equivalents at end of period 160,127 120,695 85,624
Supplemental disclosure of cash flow information:      
Debt issued in connection with acquisition 50,000    
Interest paid 756    
Income taxes paid, net of refunds $ 13,416 $ 11,801 $ 8,575
v3.22.4
Consolidated Statements of Equity - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid-In Capital
Net Investment by Former Parent
Accumulated Other Comprehensive Income (Loss)
Accumulated Deficit
Noncontrolling Interest
Beginning balance at Dec. 31, 2019 $ 713,970     $ 716,781     $ (2,811)
Net loss (141,293)     (138,327)     (2,966)
Other comprehensive income (loss), net of tax 1,311       $ 1,311    
Issuance of equity to noncontrolling interest 19           19
Net transfers from former parent 506,176     506,176      
Ending balance at Dec. 31, 2020 1,080,183     1,084,630 1,311   (5,758)
Net loss (179,078)     (175,622)     (3,456)
Other comprehensive income (loss), net of tax (1,987)       (1,987)    
Issuance of equity to noncontrolling interest 9           9
Net transfers from former parent 116,830     116,830      
Ending balance at Dec. 31, 2021 1,015,957     1,025,838 (676)   (9,205)
Net loss (761,206)     (88,649)   $ (668,835) (3,722)
Other comprehensive income (loss), net of tax (3,443)       (3,443)    
Issuance of equity to noncontrolling interest (1,423)   $ 82       (1,505)
Net transfers from former parent 100,915     100,915      
Issuance of common stock and reclassification of net transfers from Former Parent (in shares)   42,024,000          
Issuance of common stock and reclassification of net transfers from Former Parent   $ 42 1,038,062 $ (1,038,104)      
Net capital contribution from former parent 83,235   83,235        
Issuance of restricted stock, net of shares canceled   42,000          
Withholding taxes related to net share settlement of restricted awards (286)   (286)        
Stock-based compensation 15,541   15,541        
Other (304)   (304)        
Ending balance at Dec. 31, 2022 $ 448,986 $ 42 $ 1,136,330   $ (4,119) $ (668,835) $ (14,432)
Ending balance (in shares) at Dec. 31, 2022   42,066,000          
v3.22.4
The Company and Basis Of Presentation
 12 Months Ended
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
The Company and Basis of Presentation

NOTE 1 – THE COMPANY AND BASIS OF PRESENTATION

Xperi Spin-Off

On December 18, 2019, Xperi Corporation (“Pre-Merger Xperi”) entered into an Agreement and Plan of Merger and Reorganization (the “Merger Agreement”) with TiVo Corporation (“Pre-Merger TiVo”) to combine in an all-stock merger of equals transaction (the “Mergers”). Immediately following the consummation of the Mergers on June 1, 2020 (the “Merger Date”), Xperi Holding Corporation (“Xperi Holding,” “Adeia,” or the “Former Parent”), a Delaware corporation founded in December 2019 under the name “XRAY-TWOLF HoldCo Corporation,” became the parent company of both Pre-Merger Xperi and Pre-Merger TiVo.

Following the Mergers, the Former Parent announced plans to separate into two independent publicly-traded companies (the “Separation”), one comprising its intellectual property (“IP”) licensing business and one comprising its product business (“Xperi Product”). On October 1, 2022, the Former Parent completed the Separation (the “Spin-Off”) through a pro-rata distribution (the “Distribution”) of all the outstanding common stock of its product-related business (formerly known as Xperi Product, and hereinafter “Xperi Inc.”, “Xperi” or the “Company”) to the stockholders of record of the Former Parent as of the close of business on September 21, 2022, the record date (the “Record Date”) for the Distribution. Each Xperi Holding stockholder of record received four shares of Xperi common stock, $0.001 par value, for every ten shares of Xperi Holding common stock, $0.001 par value, held by such stockholder as of the close of business on the Record Date. Cash was paid in lieu of any fractional shares of Xperi common stock. The Former Parent distributed 42,023,632 shares of Xperi common stock in the Distribution, which became effective on October 1, 2022. As a result of the Distribution, Xperi became an independent, publicly-traded company and its common stock is listed under the symbol “XPER” on the New York Stock Exchange (“NYSE”). In connection with the Separation and the Distribution, Xperi Holding was renamed and continues as Adeia Inc. and also changed its stock symbol to “ADEA” on the Nasdaq Global Select Market.

In connection with the Separation, the Company entered into several agreements with its Former Parent, including a separation and distribution agreement that sets forth certain agreements with the Former Parent regarding the principal actions taken to complete the Spin-Off, including the assets and rights transferred, liabilities assumed and related matters. It also sets forth other agreements that govern certain aspects of the Former Parent’s relationship with the Company following the Spin-Off. Other agreements that the Company and its Former Parent entered into that govern aspects of their relationship following the Separation include:

Tax Matters Agreement

The tax matters agreement (“Tax Matters Agreement”) governs the parties’ respective rights, responsibilities and obligations with respect to taxes, including taxes arising in the ordinary course of business, and taxes, if any, incurred as a result of the failure of the Distribution (and certain related transactions) to qualify for tax-free treatment for U.S. federal income tax purposes. The Tax Matters Agreement also sets forth the respective obligations of the parties with respect to the filing of tax returns, the administration of tax contests and assistance and cooperation on tax matters.

Employee Matters Agreement

The employee matters agreement (“Employee Matters Agreement”) governs each company’s respective compensation and benefit obligations with respect to current and former employees, directors and consultants. The Employee Matters Agreement identifies employees and employee-related liabilities (and attributable assets) allocated (either retained, transferred, and accepted, or assigned and assumed, as applicable) to the Former Parent and Xperi as part of the separation of the Former Parent into two companies, and describes when and how the relevant transfers and assignments occur.

Cross Business License Agreement

The cross-business license agreement (“CBLA”) sets forth the terms under which the Former Parent licenses to Xperi certain patents owned by the Former Parent or its affiliates that are necessary or useful in Xperi’s business. There are no restrictions preventing the Former Parent from establishing operations in entertainment-related products or services or on Xperi from establishing operations in intellectual property licensing activities after the separation.

Transition Services Agreement

The transition services agreement (“Transition Services Agreement”) sets forth the terms under which Xperi and its subsidiaries will provide to the Former Parent and its subsidiaries various services for a transitional period. The services to be provided include back office functions and assistance with regard to administrative tasks relating to day-to-day activities as needed, including finance, accounting and tax activities, IT services, customer support, facilities services, human resources, and general corporate support, as well as pass-through services provided by certain vendors.

Data Sharing Agreement

The data sharing agreement (“Data Sharing Agreement”) entered into between the Former Parent and Xperi provides a binding framework for the sharing of data between Xperi and its subsidiaries and the Former Parent and its subsidiaries. The Data Sharing Agreement sets forth the rights and obligations of the parties with respect to the retention and care of records, the handling of requests for information and the sharing of data in a legally compliant manner.

Description of Business

Xperi is a leading consumer and entertainment technology company. The Company believes it creates extraordinary experiences at home and on the go for millions of consumers around the world, elevating content and how audiences connect with it in a way that is more intelligent, immersive and personal. Powering smart devices, connected cars, entertainment experiences and more, the Company has created a unified ecosystem that reaches highly engaged consumers, uncovering significant new business opportunities, now and in the future. The Company’s technologies are integrated into consumer devices and media platforms worldwide, driving increased value for partners, customers and consumers. The Company currently operates in one reportable business segment and groups its business into four categories based on the markets served: Pay-TV, Consumer Electronics, Connected Car and Media Platform.

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States (“U.S.”) and the applicable rules and regulations of the Securities and Exchange Commission (the “SEC”).

During the three months ended September 30, 2022, all of the assets and liabilities of the Xperi Product business had been transferred to a legal entity (the “Transfer”) under the common control of Xperi. Subsequent to this transfer and through December 31, 2022, the Company's financial statements and accompanying notes are prepared on a consolidated basis and include Xperi and its subsidiaries in which Xperi has a controlling financial interest. All intercompany balances and transactions are eliminated in consolidation. Prior to the Transfer, the financial statements and accompanying notes of the Xperi Product business were prepared on a combined basis and were derived from the consolidated financial statements and accounting records of the Former Parent as the Company was not historically held by a single legal entity. Net investment by Former Parent, which represents the Former Parent’s total net interest in the recorded net assets of the Company prior to the transfer, is presented within equity on a combined basis in lieu of share capital. All intercompany balances and transactions within the combined businesses of the Company have been eliminated.

The Consolidated Balance Sheets of Xperi and its subsidiaries for the pre-Transfer periods include Former Parent’s assets and liabilities that are specifically identifiable or otherwise attributable to the Company. In the fourth quarter of 2018, the Company funded a new subsidiary, Perceive Corporation (“Perceive”), which was created to focus on delivering edge inference solutions. As of December 31, 2022, the Company owned approximately 77.0% of the outstanding equity interest of Perceive. The operating results of Perceive have been included in the Company’s consolidated financial statements since the fourth quarter of 2018.

Prior to the Separation, the Company was dependent on the Former Parent for all of its working capital and financing requirements as the Former Parent used a centralized approach to cash management and financing its operations. Financial transactions relating to the Company were accounted for as equity contributions from the Former Parent on the Consolidated Balance Sheets. Accordingly, none of the Former Parent’s cash and cash equivalents were allocated to the Company for any of the periods presented, unless those balances were directly attributable to the Company. The Company reflects transfers of cash to and from the Former Parent’s cash management system within equity as a component of Net investment by Former Parent on a combined basis and as a component of net capital contribution from Former Parent on a consolidated basis. Other than the debt incurred in connection with the acquisition of Vewd Software Holdings Limited (“Vewd”) discussed in Note 9, the Former Parent’s long-term debt has not been attributed to the Company for any of the periods presented because the Former Parent’s

borrowings are not the legal obligation of the Company. The cash and cash equivalents, including the Company’s capitalization from Former Parent on September 30, 2022 is expected to be sufficient to support its operations, capital expenditures and income tax payments, in addition to any investments and other capital allocation needs for at least the next 12 months from the issuance date of these consolidated financial statements.

Prior to the Separation, the Consolidated Statements of Operations and Comprehensive Loss of the Company reflect allocations of general corporate expenses from the Former Parent, including, but not limited to, executive management, sales and marketing, finance, legal, information technology, employee benefits administration, stock-based compensation, treasury, risk management, procurement and other shared services. These allocations were made on a direct usage basis when identifiable, with the remainder allocated on a pro rata basis of billing, revenue, headcount or other measures as deemed appropriate. Management of the Company and Former Parent consider these allocations to be a reasonable reflection of the utilization of services by, or the benefits provided to, the Company. The allocations may not, however, reflect the expenses the Company would have incurred as a standalone company for the periods presented. Actual costs that may have been incurred if the Company had been a standalone company would depend on a number of factors, such as the chosen organizational structure, whether functions were outsourced or performed by employees and decisions with respect to areas such as facilities, information technology and operating infrastructure.

During the periods prior to the Separation that are presented in the accompanying Consolidated Financial Statements, the Company’s income tax expense (benefit) and deferred tax balances were included in the Former Parent’s income tax returns. Income tax expense (benefit) and deferred tax balances contained in these Consolidated Financial Statements for periods prior to the Separation are presented on a separate return basis, as if the Company had filed its own income tax returns. As a result, actual tax transactions included in the consolidated financial statements of the Former Parent may or may not be included in the Consolidated Financial Statements of the Company. Similarly, the tax treatment of certain items reflected in the Consolidated Financial Statements of the Company may or may not be reflected in the consolidated financial statements and income tax returns of the Former Parent. The taxes recorded in the Consolidated Statements of Operations for periods prior to the Separation are not necessarily representative of the taxes that may arise in the future when the Company files its income tax returns independent from the Former Parent’s returns. The income tax expense (benefit) recorded for the three months ended December 31, 2022 is presented as if activity from this period would have been included in the same separate return as the nine months of activity through the date of Separation. Deferred tax balances for the period ended December 31, 2022 are presented for the standalone Company.

The Company’s fiscal year ends on December 31. The Company employs a calendar month-end reporting period for its quarterly reporting.
v3.22.4
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The accounting estimates and assumptions that require management’s most significant, challenging, and subjective judgment include the estimation of licensees’ quarterly royalties prior to receiving the royalty reports, the determination of stand-alone selling price and the transaction price in an arrangement with multiple performance obligations, the assessment of the recoverability of goodwill, the assessment of useful lives and recoverability of other intangible assets and long-lived assets, recognition and measurement of current and deferred income tax assets and liabilities, the assessment of unrecognized tax benefits, and purchase accounting resulting from business combinations. Actual results experienced by the Company may differ from management’s estimates.

The COVID-19 pandemic and related macroeconomic conditions have had, and may continue to have, an adverse impact on the Company’s business. The impact to date has included periods of significant volatility in markets the Company serves, in particular the automotive and broad consumer electronics markets. Additionally, the pandemic has caused some challenges and delays in acquiring new customers and executing license renewals. These factors have contributed to an impairment of our long-lived assets, including goodwill, and may result in increased credit losses and impairments of investments in other companies. The Company’s operations and those of its customers have also been negatively impacted by certain trends arising from the COVID-19 pandemic, including labor market constraints, shortage of semiconductor components and manufacturing capacities, and delays in shipments, product development and product launches. Moreover, the COVID-19 pandemic, its related impact, and United States federal, state and foreign government policies enacted to combat the pandemic have contributed to a recent rise of inflation that may increase the cost of the Company’s operations and reduce demand for the Company’s products and services and those of its customers, which may adversely affect the Company’s financial performance. The impact of the

pandemic on the Company’s overall results of operations remains uncertain for the foreseeable future and will depend on various factors outside the Company’s control.

Principles of Consolidation

Subsequent to the Transfer during the third quarter of 2022 and through December 31, 2022, the Company’s financial statements are prepared on a consolidated basis and include the accounts of the Company and its wholly-owned subsidiaries, as well as an entity in which the Company has a controlling financial interest. All intercompany accounts and transactions have been eliminated in consolidation.

Prior to the Transfer and through the date in the third quarter of 2022 when all subsidiaries of Xperi Product were owned by the parent company of Xperi Product, the accompanying financial statements of the Xperi Product business were prepared on a combined basis and were derived from the consolidated financial statements and accounting records of the Former Parent as the Company was not historically held by a single legal entity. Net investment by Former Parent, which represents the Former Parent’s total net interest in the recorded net assets of the Company prior to the Transfer and through the date when all subsidiaries of Xperi Product were owned by the parent company of Xperi Product, is presented within equity on a combined basis in lieu of share capital. All intercompany balances and transactions within the combined businesses of the Company have been eliminated.

Net Investment by Former Parent

Net investment by Former Parent on the Consolidated Balance Sheets and Consolidated Statements of Equity represents the Former Parent’s historical investment in the Company, the net effect of transactions with and allocations from the Former Parent, and the Company’s accumulated deficit. See “Note 17 – Related Party Transactions and Net Investment by Former Parent” for additional information.

Net Loss Per Share

Net loss per share is computed by dividing net loss for the period by the weighted-average number of common shares outstanding during the period. The calculations of basic and diluted loss per share for any of the periods presented prior to the Separation were based on the number of shares outstanding on October 1, 2022, the Separation Date. For periods prior to the Separation, it is assumed that there are no dilutive equity instruments as there were no Xperi stock-based awards outstanding prior to the Separation. Dilutive weighted-average common shares outstanding do not include unvested restricted stock awards and units and stock options for the periods presented because the effect of their inclusion would have been anti-dilutive. Refer to “Note 12 - Net Loss per Share” for a reconciliation.

Revenue Recognition

Revenue is recognized when control of the promised goods or services is transferred to a customer in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services, which may include various combinations of goods and services which are generally capable of being distinct and accounted for as separate performance obligations. See “Note 4 – Revenue” for a detailed discussion on revenue and revenue recognition.

Segment Reporting

Operating segments are defined as components of an enterprise for which separate financial information is available and that is evaluated on a regular basis by the chief operating decision-maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources and evaluating financial performance. As such, the Company has determined that it has one operating segment, which is also its reportable segment.

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with an original maturity of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents are maintained with various financial institutions.

Non-Marketable Equity Investments

Investments in entities over which the Company has the ability to exercise significant influence, but does not hold a controlling interest, are accounted for using the equity method. Under the equity method, the Company records its proportionate share of income or loss in other income and expense, net, in the Consolidated Statements of Operations. Investments in entities over which the Company does not have the ability to exercise significant influence and which do not have readily determinable fair values, are initially recognized at cost and remeasured through earnings when there is an observable transaction involving the same or similar investment of the same issuer, or due to an impairment (referred to as the “measurement alternative”). The fair value of non-marketable equity investments is not estimated if there are no identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. The Company monitors its non-marketable securities portfolio for potential impairment. When there is evidence that the expected fair value of the investment has declined to below the recorded cost, the impairment loss is recorded in other income (expense), net, in the Consolidated Statements of Operations.

Fair Value of Financial Instruments

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The carrying amount of cash equivalents, accounts receivable, accounts payable and accrued liabilities approximates fair value due to the short-term nature of these instruments. Long-term debt is carried at amortized cost and measured at fair value on a quarterly basis for disclosure purposes. See “Note 7 – Fair Value” for further information.

Derivative Instruments

In the fourth quarter of 2022, the Company began to use derivative financial instruments to manage foreign currency exchange rate risk. The Company does not enter into derivative transactions for trading purposes. The Company’s derivative financial instruments are recorded on the Consolidated Balance Sheets as assets or liabilities measured at fair value. For derivatives designated as a hedge, and effective as part of a hedge transaction, the effective portion of the gain or loss on the hedging derivative instrument is reported as a component of other comprehensive income (loss) and as a basis adjustment to the underlying hedged item and reclassified to earnings in the period in which the hedged item affects earnings. To the extent derivatives do not qualify or are not designated as hedges, or are ineffective, their changes in fair value are recorded in earnings immediately. See “Note 6 – Financial Instruments” for further information.

Concentration of Credit and Other Risks

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash equivalents and accounts receivable. The Company follows a corporate investment policy which sets credit, maturity and concentration limits and regularly monitors the composition, market risk and maturities of these investments. The Company also maintains cash and cash equivalents with various financial institutions. These financial institutions are located in many different geographic regions, and the Company’s policy is designed to limit exposure from any particular institution. As part of its risk management processes, the Company performs periodic evaluations of the relative credit standing of these financial institutions. The Company has not sustained material credit losses from instruments held at these financial institutions. The Company believes that any concentration of credit risk in its accounts receivable is substantially mitigated by the Company’s evaluation process, relatively short collection terms and the high level of credit worthiness of its customers. The Company performs ongoing credit evaluations of its customers’ financial condition and limits the amount of credit extended when deemed necessary but generally requires no collateral.

The Company had no customers representing 10% or more of aggregate trade receivables at December 31, 2022 and December 31, 2021.

There were no individually significant customers with revenue exceeding 10% of total revenue for the years ended December 31, 2022, 2021 and 2020.

Accounts Receivable

The timing of revenue recognition may differ from the timing of invoicing to customers. The Company records a receivable when revenue is recognized prior to cash collection.

Payment terms and conditions vary by contract type, location of customer and the products or services offered, although terms generally require payment from a customer within 30 to 60 days. When the timing of revenue recognition differs from the

timing of cash collection, an evaluation is performed to determine whether the contract includes a significant financing component.

Allowance for Credit Losses

The allowance for credit losses, which includes the allowance for accounts receivable and unbilled contracts receivable, represents the Company’s best estimate of lifetime expected credit losses inherent in those financial assets. The Company’s lifetime expected credit losses are determined using relevant information about past events (including historical experience), current conditions, and reasonable and supportable forecasts that affect collectability. The Company monitors its credit exposure through ongoing credit evaluations of its customers’ financial condition and limits the amount of credit extended when deemed necessary. In addition, the Company performs routine credit management activities such as timely account reconciliations, dispute resolution, and payment confirmations. The Company may employ collection agencies and legal counsel to pursue recovery of defaulted receivables. See “Note 4– Revenue” for a further discussion of the allowance for credit losses.

Inventory

Inventories consist primarily of TiVo Stream 4K, finished DVRs, non-DVRs and accessories and are stated at the lower of cost or net realizable value on an aggregate basis. Cost is computed using standard cost, which approximates actual cost on a first-in, first-out basis. Adjustments to reduce the carrying amount of inventory to the lower of cost or net realizable value are made, if required, for excess or obsolete goods, which includes a review of, among other factors, demand requirements and market conditions.

Business Combinations

The Company accounts for business combinations using the acquisition method of accounting in accordance with ASC 805, “Business Combinations.” Identifiable assets acquired and liabilities assumed are recorded at their acquisition date fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. Acquisition related costs are expensed as incurred. Upon acquisition, the accounts and results of operations are consolidated as of and subsequent to the acquisition date.

When determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect to intangible assets. The Company utilizes commonly accepted valuation techniques, such as the income approach and the cost approach, as appropriate, in establishing the fair value of intangible assets. Typically, key assumptions include projections of cash flows that arise from identifiable intangible assets of acquired businesses as well as discount rates based on an analysis of the weighted average cost of capital, adjusted for specific risks associated with the assets. See “Note 9 – Business Combinations” for additional detail.

Goodwill and Identified Intangible Assets

Goodwill. Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the net tangible and identified intangible assets acquired under a business combination. Goodwill also includes acquired assembled workforce, which does not qualify as an identifiable intangible asset. The Company reviews impairment of goodwill annually as of the beginning of the fourth quarter, or more frequently if events or circumstances indicate that the goodwill might be impaired. Triggering events for impairment reviews may be indicators such as adverse industry or economic trends, restructuring actions, lower projections of profitability, or a sustained decline in the Company's market capitalization. The Company first assesses qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test. If, after assessing the totality of events or circumstances, the Company determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the quantitative goodwill impairment test is unnecessary.

If, based on the qualitative assessment, it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the Company proceeds to perform the quantitative goodwill impairment test. The Company first determines the fair value of a reporting unit using the market capitalization approach to determine the fair value of a reporting unit. Under the market capitalization approach, the fair value of a reporting unit is estimated based on the trading price of the Company's stock as of the test date, or trading prices over a short period of time immediately prior to the test date if such prices more reasonably represent the estimated fair value as of the test date, which is further adjusted by a control premium representing the synergies a market participant would achieve when obtaining control of the business. The Company then compares the derived fair value of a reporting unit with its carrying amount. If the carrying value of a reporting unit

exceeds its fair value, an impairment loss will be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit.

Identified intangible assets. Identified finite-lived intangible assets consist of acquired patents, existing technology, customer relationships, trademarks and trade names, non-compete agreements resulting from business combinations, and acquired patents under asset purchase agreements. The Company’s identified intangible assets are amortized on a straight-line basis over their estimated useful lives, ranging from 1 to 10 years. The Company makes judgments about the recoverability of finite-lived intangible assets whenever facts and circumstances indicate that the useful life is shorter than originally estimated or that the carrying amount of assets may not be recoverable. If such facts and circumstances exist, the Company assesses recoverability by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their remaining lives against their respective carrying amounts. Impairments, if any, are based on the excess of the carrying amount over the fair value of those assets. If the useful life is shorter than originally estimated, the Company would accelerate the rate of amortization and amortize the remaining carrying value over the new shorter useful life.

Identified indefinite-lived intangible assets include TiVo tradenames and trademarks resulting from business combinations. The Company evaluates the carrying value of indefinite-lived intangible assets on an annual basis, and an impairment charge would be recognized to the extent that the carrying amount of such assets exceeds their estimated fair value.

For further discussion of goodwill and identified intangible assets, see “Note 10 – Goodwill and Identified Intangible Assets.”

Leases

The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, accrued liabilities, and noncurrent operating lease liabilities in the Company’s consolidated balance sheets. The ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the leases do not provide an implicit rate, the Company generally uses its incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The Company’s lease terms may include options to extend or terminate the lease, and these terms are factored into the valuation of ROU assets and liabilities when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. As a practical expedient, the Company elected, for all office and facility leases, not to separate non-lease components from lease components and instead to account for each separate lease component and its associated non-lease components as a single lease component. For additional information regarding the Company's leases, refer to “Note 8 – Leases.”

Impairment of Long-Lived Assets

The Company reviews long-lived assets, including property and equipment and intangible assets, for possible impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. Such events and changes may include: a significant decrease in market value, changes in asset use, negative industry or economic trends, and changes in the Company’s business strategy. The Company measures recoverability of these assets by comparing the carrying amounts to the future undiscounted cash flows that the assets or the asset group are expected to generate. If the carrying value of the assets is not recoverable, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the assets. During the year ended December 31, 2022, the Company recognized impairment charges of $7.7 million on fixed assets and operating lease ROU assets for which the carrying amount exceeded the fair value for certain leased office building. Refer to “Note 8 – Leases” for detailed impairment discussions.

Research and Development

Research and development costs are comprised primarily of employee-related costs, stock-based compensation expense, engineering consulting expenses associated with new product and technology development, product commercialization, quality assurance and testing costs, as well as costs related to information technology, patent applications and examinations, materials, supplies, and an allocation of facilities costs. All research and development costs are expensed as incurred.

Stock-based Compensation

Prior to the Separation, certain Company employees participated in the Former Parent’s stock-based compensation programs. Stock-based compensation expense has been attributed to the Company based on the awards and terms previously granted to

the Company’s direct employees, as well as an allocation of the Former Parent’s corporate and shared functional employee expenses.

Stock-based compensation is measured at the grant date based on the estimated fair value of the award and is recognized as expense on a straight-line basis, net of estimated forfeitures, over the requisite service or performance period. Forfeiture rates are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. If the actual forfeiture rate is materially different from the estimate, stock-based compensation expense could be significantly different from what was recorded in the current period.

The Company uses the closing trading price of its common stock on the date of grant as the fair value of awards of restricted stock units (“RSUs”), and performance-based restricted stock units (“PSUs”) that are based on company-designated performance targets. For PSUs that are based on market conditions, or market-based PSUs, fair value is estimated by using a Monte Carlo simulation on the date of grant. The Company estimates the grant-date fair value of stock options and stock to be issued under the employee stock purchase plan (“ESPP”) using the Black-Scholes pricing model. See “Note 14 – Stock-based Compensation” for additional detail.

Income Taxes

Prior to the Separation, the Company’s operations were included in the tax returns filed by the respective Former Parent entities of which the Company’s businesses were a part. Income tax expense and other income tax-related information contained in these Consolidated Financial Statements are presented on a separate return basis as if the Company had filed its own tax returns. The separate return method applies the accounting guidance for income taxes to the Company’s standalone financial statements as if it were a separate taxpayer and a standalone enterprise for the periods presented. The income tax expense (benefit) recorded for the three month period ended December 31, 2022 is presented as if activity from this period would have been included in the same separate return as the nine months of activity through the date of Separation. Current income tax liabilities related to entities which file jointly with the Former Parent are assumed to be immediately settled with the Former Parent and are relieved through the Net Investment by Former Parent and are presented in Net transfers from and to Former Parent in the Consolidated Statements of Cash Flows.

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amount of assets and liabilities and their respective tax bases and operating loss and tax carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates applicable to the years in which those temporary differences are expected to reverse. A valuation allowance is recorded to reduce deferred tax assets to the amount that is more likely than not to be realized.

From time to time, the Company engages in transactions in which the tax consequences may be subject to uncertainty. Significant judgment is required in assessing and estimating the tax consequences of these transactions. Accruals for unrecognized tax benefit liabilities, which represent the difference between a tax position taken or expected to be taken in a tax return and the benefit recognized for financial reporting purposes, are recorded when the Company believes it is not more-likely-than-not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. Adjustments to unrecognized tax benefits are recognized when facts and circumstances change, such as the closing of a tax audit, notice of an assessment by a taxing authority or the refinement of an estimate. Income tax benefit includes the effects of adjustments to unrecognized tax benefits, as well as any related interest and penalties.

Advertising Costs

Advertising costs are expensed as incurred and are presented within selling, general and administrative expense in the Consolidated Statements of Operations. Advertising expenses for the years ended December 31, 2022, 2021 and 2020, were $5.5 million, $9.1 million and $11.3 million, respectively.

Contingencies

From time to time, the Company may be involved in legal and administrative proceedings and claims of various types. The Company records a liability in its consolidated financial statements for these matters when a loss is known or considered probable and the amount can be reasonably estimated. Management reviews these estimates in each accounting period as additional information becomes known and adjusts the loss provision when appropriate. If the loss is not probable or cannot be reasonably estimated, a liability is not recorded in the consolidated financial statements. If a loss is probable but the amount of loss cannot be reasonably estimated, the Company discloses the loss contingency and an estimate of possible loss or range of

loss (unless such an estimate cannot be made). The Company does not recognize gain contingencies until they are realized. Legal costs incurred in connection with loss contingencies are expensed as incurred.

Property and Equipment

Property and equipment are recorded at cost, less accumulated depreciation. Depreciation is calculated using the straight-line method over the related assets’ estimated useful lives:

Equipment, furniture and other

 

1 to 5 years

Leasehold improvements

 

Lesser of related lease term or 5 years

Building and improvements

 

Up to 30 years

Expenditures that materially increase asset life are capitalized, while ordinary maintenance and repairs are expensed as incurred.

Foreign Currency Translation and Transactions

The Company predominantly uses the U.S. dollar as its functional currency. Certain non-U.S. subsidiaries designate a local currency as their functional currency. The translation of assets and liabilities into U.S. dollars for subsidiaries with a functional currency other than the U.S. dollar is performed using exchange rates in effect at the balance sheet date. The translation of revenues and expenses into U.S. dollars for subsidiaries with a functional currency other than the U.S. dollar is performed using the average exchange rate for the respective period. Gains or losses from cumulative translation adjustments, net of tax, are included as a component of accumulated other comprehensive loss in the Consolidated Balance Sheets. The Company records net foreign exchange transaction gains and losses resulting from the conversion of the transaction currency to the functional currency within other income and expense, net.
v3.22.4
Recent Accounting Pronouncements
 12 Months Ended
Dec. 31, 2022
Accounting Standards Update and Change in Accounting Principle [Abstract]  
Recent Accounting Pronouncements

NOTE 3 – RECENT ACCOUNTING PRONOUNCEMENTS

Recently Adopted Accounting Pronouncements

In October 2021, the FASB issued ASU 2021-08, “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” (“ASU 2021-08”), which amends the guidance in ASC 805 to require that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Revenue from Contracts with Customers (“Topic 606”). As a result of the amendments, it is expected that an acquirer will generally recognize and measure acquired contract assets and contract liabilities in a manner consistent with how the acquiree recognized and measured them in its preacquisition financial statements. ASU 2021-08 is effective for public business entities for fiscal years beginning after December 15, 2022. Early adoption is permitted. The Company elected to early adopt the new standard on January 1, 2022. The adoption did not have an impact on the Company’s consolidated financial statements.
v3.22.4
Revenue
 12 Months Ended
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]  
Revenue

NOTE 4 – REVENUE

Revenue Recognition

General

Revenue is recognized when control of the promised goods or services is transferred to a customer in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services, which may include various combinations of goods and services which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of sales taxes collected from customers which are subsequently remitted to governmental authorities.

Some of the Company’s contracts with customers contain multiple performance obligations. For these contracts, the individual performance obligations are separately accounted for if they are distinct. In an arrangement with multiple performance obligations, the transaction price is allocated among the separate performance obligations on a relative stand-alone selling price basis. The determination of stand-alone selling price considers market conditions, the size and scope of the contract, customer and geographic information, and other factors. When observable prices are not available, stand-alone selling price for separate performance obligations is based on the cost-plus-margin approach, considering overall pricing objectives.

When variable consideration is in the form of a sales-based or usage-based royalty in exchange for a license of technology or when a license of technology is the predominant item to which the variable consideration relates, revenue is recognized at the later of when the subsequent sale or usage occurs or the performance obligation to which some or all of the sales-based or usage-based royalty has been allocated has been satisfied or partially satisfied.

Description of Revenue-Generating Activities

The Company derives the majority of its revenue from licensing its technology and solutions to customers. These arrangements are summarized as Technology License arrangements and Technology Solutions arrangements. For Technology License arrangements, the customer obtains rights to the technology delivered at the commencement of the agreement. For Technology Solutions arrangements, the customer receives access to a platform, media or data that includes frequent updates, where access to such updates is critical to the functionality of the technology. The timing of when performance obligations are satisfied, as well as the fee arrangements underlying each agreement, determine when revenue is recognized.

Technology License Arrangements

The Company licenses its audio, digital radio and imaging technology to consumer electronics (“CE”) manufacturers, automotive manufacturers or their supply chain partners.

The Company generally recognizes royalty revenue from licenses based on units shipped or manufactured. Revenue is recognized in the period in which the customer’s sales or production are estimated to have occurred. This may result in an adjustment to revenue when actual sales or production are subsequently reported by the customer, generally in the month or quarter following sales or production. Estimating customers’ quarterly royalties prior to receiving the royalty reports requires the Company to make significant assumptions and judgments related to forecasted trends and growth rates used to estimate quantities shipped or manufactured by customers, which could have a material impact on the amount of revenue it reports on a quarterly basis.

Certain customers enter into fixed fee or minimum guarantee agreements, whereby customers pay a fixed fee for the right to incorporate the Company’s technology in the customer’s products over the license term. In arrangements with a minimum guarantee, the fixed fee component corresponds to a minimum number of units or dollars that the customer must produce or pay, with additional per-unit fees for any units or dollars exceeding the minimum. The Company generally recognizes the full fixed fee as revenue at the beginning of the license term when the customer has the right to use the technology and begins to benefit from the license, net of the effect of any significant financing components calculated using customer-specific, risk-adjusted lending rates, with the related interest income being recognized over time on an effective rate basis. For minimum guarantee agreements where the customer exceeds the minimum, the Company recognizes revenue relating to any additional per-unit fees in the periods it believes the customer will exceed the minimum and adjusts the revenue based on actual usage once that is reported by the customer.

Technology Solutions Arrangements

Technology Solutions customers are primarily multi-channel video service providers, CE manufacturers, and end consumers. Technology Solutions revenue is primarily derived from licensing the Company’s Pay-TV solutions, Personalized Content Discovery, enriched Metadata, and viewership data, selling TiVo-enabled devices like the TiVo Stream 4K and advertising.

For Technology Solutions arrangements, the Company provides on-going media or data delivery, hosting and access to its platform, and software updates. For these solutions, the Company generally receives fees on a per-subscriber per-month basis or as a fixed fee, and revenue is recognized during the month in which the solutions are provided to the customer. For most of the Technology Solutions offerings, substantially all functionality is obtained through the Company’s continuous hosting and/or updating of the data and content. In these instances, the Company typically has a single performance obligation related to these ongoing activities in the underlying arrangement. For those arrangements that include multiple performance obligations, the Company allocates the consideration as described above and recognizes revenue for each distinct performance obligation when control of the promised goods or services is transferred to the customer.

The Company also generates revenue from non-recurring engineering (“NRE”) services, advertising, and hardware products, each of which was less than 10% of total revenue for all periods presented.

Practical Expedients and Exemptions

The Company applies a practical expedient to not perform an evaluation of whether a contract includes a significant financing component when the timing of revenue recognition differs from the timing of cash collection by one year or less.

The Company applies a practical expedient to expense costs to obtain a contract with a customer as incurred as a component of selling, general and administrative expenses when the amortization period would have been one year or less.

The Company applies a practical expedient when disclosing revenue expected to be recognized from unsatisfied performance obligations to exclude contracts with customers with an original duration of one year or less; amounts attributable to variable consideration arising from (i) a sales-based or usage-based royalty of a technology license or (ii) when variable consideration is allocated entirely to a wholly unsatisfied performance obligation; or to a wholly unsatisfied promise to transfer a distinct good or service that forms part of a single performance obligation.

Revenue Details

The following information depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors by disaggregating revenue by product category and geographic location.

Revenue disaggregated by product category was as follows (in thousands):

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Pay-TV

 

$

249,457

 

 

$

262,929

 

 

$

164,865

 

Consumer Electronics

 

 

128,395

 

 

 

99,529

 

 

 

111,726

 

Connected Car

 

 

84,201

 

 

 

88,306

 

 

 

79,021

 

Media Platform

 

 

40,207

 

 

 

35,719

 

 

 

20,489

 

Total revenue

 

$

502,260

 

 

$

486,483

 

 

$

376,101

 

A significant portion of the Company’s revenue is derived from licensees headquartered outside of the United States, principally in Asia, Europe and the Middle East, and it is expected that this revenue will continue to account for a significant portion of total revenue in future periods. The following table presents the Company’s revenue disaggregated by geographic area (in thousands):

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

U.S.

 

$

278,920

 

 

 

56

%

 

$

249,537

 

 

 

51

%

 

$

182,492

 

 

 

49

%

Japan

 

 

65,551

 

 

 

13

 

 

 

70,956

 

 

 

15

 

 

 

60,349

 

 

 

16

 

China

 

 

30,932

 

 

 

6

 

 

 

18,027

 

 

 

4

 

 

 

21,685

 

 

 

6

 

Europe and Middle East

 

 

42,846

 

 

 

9

 

 

 

56,317

 

 

 

12

 

 

 

36,352

 

 

 

10

 

South Korea

 

 

27,870

 

 

 

5

 

 

 

38,801

 

 

 

7

 

 

 

32,101

 

 

 

8

 

Other

 

 

56,141

 

 

 

11

 

 

 

52,845

 

 

 

11

 

 

 

43,122

 

 

 

11

 

 

 

$

502,260

 

 

 

100

%

 

$

486,483

 

 

 

100

%

 

$

376,101

 

 

 

100

%

Contract Balances

Contract Assets

Contract assets primarily consist of unbilled contracts receivable that are expected to be received from customers in future periods, where the revenue recognized to date exceeds the amount billed. The amount of unbilled contracts receivable may not exceed their net realizable value and are classified as long-term assets if the payments are expected to be received more than one year from the reporting date. Contract assets also include the incremental costs of obtaining a contract with a customer, principally sales commissions when the renewal commission is not commensurate with the initial commission, and deferred engineering costs for significant software customization or modification and set-up services to the extent deemed recoverable.

Contract assets were recorded in the Consolidated Balance Sheets as follows (in thousands):

 

 

December 31, 2022

 

 

December 31,
2021

 

Unbilled contracts receivable

 

$

65,251

 

 

$

50,962

 

Other current assets

 

 

848

 

 

 

724

 

Long-term unbilled contracts receivable

 

 

4,289

 

 

 

3,825

 

Other long-term assets

 

 

978

 

 

 

1,043

 

Total contract assets

 

$

71,366

 

 

$

56,554

 

Contract Liabilities

Contract liabilities are mainly comprised of deferred revenue related to technology solutions arrangements, multi-period licensing, and other offerings for which the Company is paid in advance while the promised good or service is transferred to the customer at a future date or over time. Deferred revenue also includes amounts received related to professional services to be performed in the future. Deferred revenue arises when cash payments are received, including amounts which are refundable, in advance of performance obligations being completed.

Allowance for Credit Losses

The allowance for credit losses, which includes the allowance for accounts receivable and unbilled contracts receivable, represents the Company’s best estimate of lifetime expected credit losses inherent in those financial assets. The Company’s lifetime expected credit losses are determined using relevant information about past events (including historical experience), current conditions, and reasonable and supportable forecasts that affect collectability. The Company monitors its credit exposure through ongoing credit evaluations of its customers’ financial condition and limits the amount of credit extended when deemed necessary. In addition, the Company performs routine credit management activities such as timely account reconciliations, dispute resolution, and payment confirmations. The Company may employ collection agencies and legal counsel to pursue recovery of defaulted receivables.

The following table presents the activity in the allowance for credit losses for the years ended December 31, 2022, 2021 and 2020 (in thousands):

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

 

 

Accounts Receivable

 

 

Unbilled Contracts Receivable

 

 

Accounts Receivable

 

 

Unbilled Contracts Receivable

 

 

Accounts Receivable

 

 

Unbilled Contracts Receivable

 

Beginning balance

 

$

2,255

 

 

$

468

 

 

$

6,454

 

 

$

1,414

 

 

$

566

 

 

$

—

 

Provision for credit losses

 

 

799

 

 

 

(99

)

 

 

714

 

 

 

38

 

 

 

6,406

 

 

 

1,414

 

Recoveries/charge-off

 

 

(1,104

)

 

 

—

 

 

 

(4,913

)

 

 

(984

)

 

 

(518

)

 

 

—

 

Balance at end of period

 

$

1,950

 

 

$

369

 

 

$

2,255

 

 

$

468

 

 

$

6,454

 

 

$

1,414

 

The significant increase in provision for credit losses in 2020 was based on assessment of conditions including the COVID-19 pandemic and anticipation of delayed or delinquent payments on existing accounts receivable as a result of the declining financial health and liquidity positions of certain of the Company’s customers, as well as U.S. restrictions on trade with certain Chinese customers, and certain late payments and collection-related issues.

Additional Disclosures

The following table presents additional revenue and contract disclosures (in thousands):

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Revenue recognized in the period from:

 

 

 

 

 

 

 

 

 

Amounts included in deferred revenue at the beginning of the period

 

$

19,713

 

 

$

23,863

 

 

$

720

 

Amounts included in deferred revenue acquired from the Mergers

 

$

—

 

 

$

—

 

 

$

19,367

 

Performance obligations satisfied in previous periods (true
ups, licensee reporting adjustments and settlements) (1)

 

$

30,561

 

(2)

$

8,772

 

 

$

13,138

 

 

(1)
True ups represent the differences between the Company’s quarterly estimates of per-unit royalty revenue and actual production/sales-based royalties reported by licensees in the following period. Licensee reporting adjustments represent corrections or revisions to previously reported per-unit royalties by licensees, generally resulting from the Company’s inquiries or compliance audits. Settlements represent resolutions of litigation during the period for past royalties owed.
(2)
Amount includes past royalty revenue from the settlement of a contract dispute with a large mobile imaging customer, and the execution of a long-term license agreement with a leading consumer electronics and over-the-top (“OTT”) service provider. The long-term license agreement is effective as of the expiration of the prior agreement. The Company recorded revenue from both the settlement and the license agreement, referred to above, in the second quarter of 2022 and expects to record revenue from the license agreement in future periods.

Remaining revenue under contracts with performance obligations represents the aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied (or partially unsatisfied) under certain of the Company’s fixed fee or minimum guarantee arrangements and engineering services contracts. The Company’s remaining revenue under contracts with performance obligations was as follows (in thousands):

 

 

December 31,

 

 

 

2022

 

Revenue from contracts with performance obligations expected to be satisfied in:

 

 

 

2023

 

 

57,610

 

2024

 

 

28,055

 

2025

 

 

15,910

 

2026

 

 

5,024

 

2027

 

 

1,024

 

Thereafter

 

 

280

 

Total

 

$

107,903

 
v3.22.4
Composition of Certain Financial Statement Captions
 12 Months Ended
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Composition of Certain Financial Statement Captions

NOTE 5 – COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS

Other current assets consisted of the following (in thousands):

 

 

December 31,

 

 

 

2022

 

 

2021

 

Prepaid Income Tax

 

$

1,777

 

 

$

1,141

 

Prepaid expenses

 

 

20,001

 

 

 

15,283

 

Inventory

 

 

6,662

 

 

 

5,102

 

Other

 

 

13,734

 

 

 

4,459

 

 

 

$

42,174

 

 

$

25,985

 

Property and equipment, net consisted of the following (in thousands):

 

 

December 31,

 

 

 

2022

 

 

 

2021

 

Equipment, furniture and other

 

$

78,976

 

 

 

$

64,236

 

Building and improvements

 

 

18,331

 

 

 

 

18,331

 

Land

 

 

5,300

 

 

 

 

5,300

 

Leasehold improvements

 

 

17,038

 

 

(1

)

 

22,064

 

Property and equipment, gross

 

 

119,645

 

 

 

 

109,931

 

Less: Accumulated depreciation and amortization

 

 

(71,818

)

 

(1

)

 

(52,454

)

 

 

$

47,827

 

 

 

$

57,477

 

(1) Reflects an impairment charge of $2.9 million ($4.8 million in gross cost and $1.9 million in accumulated depreciation). Refer to “Note 8 – Leases” for details.

Property and equipment, net by geographic area was as follows (in thousands):

 

 

December 31,

 

 

 

2022

2021

 

U.S.

 

$

42,487

 

 

$

51,306

 

Europe

 

 

3,460

 

 

 

3,697

 

Asia and other

 

 

1,880

 

 

 

2,474

 

 

 

$

47,827

 

 

$

57,477

 

Accrued liabilities consisted of the following (in thousands):

 

 

December 31,

 

 

 

2022

 

 

2021

 

Employee compensation and benefits

 

$

53,546

 

 

$

33,685

 

Third-party royalties

 

 

7,620

 

 

 

4,428

 

Accrued expenses

 

 

22,928

 

 

 

21,147

 

Current portion of operating lease liabilities

 

 

17,195

 

 

 

14,725

 

Accrued income tax

 

 

4,926

 

 

 

2,055

 

Other

 

 

3,799

 

 

 

8,364

 

 

 

$

110,014

 

 

$

84,404

 

Accumulated other comprehensive loss consisted of the following (in thousands):

 

 

December 31,

 

 

 

2022

 

 

2021

 

Foreign currency translation adjustment, net of tax

 

$

(4,025

)

 

$

(676

)

Unrealized hedging losses, net of tax

 

 

(94

)

 

 

—

 

 

 

$

(4,119

)

 

$

(676

)
v3.22.4
Financial Instruments
 12 Months Ended
Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]  
Financial Instruments

NOTE 6 – FINANCIAL INSTRUMENTS

Non-marketable Equity Securities

Following the Mergers on June 1, 2020, the Company assumed certain investments in non-marketable equity securities. As of December 31, 2022 and December 31, 2021, other long-term assets included equity securities accounted for under the equity method with a carrying amount of $4.4 million and $4.8 million, respectively. No impairments to the carrying amount of the Company’s non-marketable equity securities were recognized in the years ended December 31, 2022, 2021 and 2020, respectively.

Derivatives Instruments

In the fourth quarter of 2022, the Company began to use derivative financial instruments to manage foreign currency exchange rate risk. The Company’s derivative financial instruments consist of foreign currency forward contracts, which are used primarily to hedge portions of its anticipated foreign currency exposure. The maturities of these instruments are generally less than twelve months. Fair values for derivative financial instruments are based on prices computed using third-party valuation models and are classified as Level 2 in accordance with the three-level hierarchy of fair value measurements. All the significant inputs to the third-party valuation models are observable in active markets. Inputs include current market-based parameters

such as forward rates, yield curves and credit default swap pricing. For additional information related to the three-level hierarchy of fair value measurements, see “Note 7 – Fair Value.”

The notional and fair values of all derivative instruments were as follows (in thousands):

Derivative instruments in cash flow hedges (foreign exchange contracts)

 

December 31, 2022

 

 

December 31, 2021

 

Liabilities

 

 

 

 

 

 

Accrued liabilities

 

$

94

 

 

$

—

 

Total fair value

 

$

94

 

 

$

—

 

Total notional value

 

$

52,197

 

 

$

—

 

Undesignated derivative instruments (foreign exchange contracts)

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

Accrued liabilities

 

$

41

 

 

$

—

 

Total fair value

 

$

41

 

 

$

—

 

Total notional value

 

$

7,402

 

 

$

—

 

Cash Flow Hedges

The Company designates certain foreign currency forward contracts as hedging instruments pursuant to ASC 815, Derivatives and Hedging (“ASC 815”). For information on the effective portion of the gain or loss on the derivative, which is reported as a component of accumulated other comprehensive income (loss), refer to “Note 5 -- Composition of Certain Financial Statement Captions.” For the year ended December 31, 2022, no amounts were reclassified into statement of operations line items as no underlying hedged item is recognized in earnings. The Company did not enter into derivative contracts in 2021 or 2020.

Undesignated Derivatives

For derivatives that are not designated as hedge instruments, they are measured and reported at fair value. Changes in the fair value of these undesignated derivatives are reported in other income (expense), net, on the Consolidated Statements of Operations. Realized losses and changes in the estimated fair value of the derivatives were not significant in the year ended December 31, 2022. The Company did not enter into derivative contracts in 2021 or 2020.
v3.22.4
Fair Value
 12 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
Fair Value

NOTE 7 – FAIR VALUE

The Company follows the authoritative guidance for fair value measurement and the fair value option for financial assets and financial liabilities. The Company carries its financial instruments at fair value with the exception of its long-term debt. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability, or an exit price, in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The established fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value:

Level 1 Quoted prices in active markets for identical assets.

Level 2 Observable market-based inputs or unobservable inputs that are corroborated by market data.

Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

When applying fair value principles in the valuation of assets, the Company is required to maximize the use of quoted market prices and minimize the use of unobservable inputs. The Company calculates the fair value of its Level 1 and Level 2 instruments based on the exchange traded price of similar or identical instruments, where available, or based on other observable inputs.

There were no marketable securities required to be measured at fair value on a recurring basis as of December 31, 2022 or December 31, 2021.

Financial Instruments Not Recorded at Fair Value

The Company’s long-term debt is carried at historical cost and is measured at fair value on a quarterly basis for disclosure purposes. The carrying amounts and estimated fair values are as follows (in thousands):

 

 

December 31, 2022

 

 

December 31, 2021

 

 

 

Carrying
Amount

 

 

Estimated Fair
Value

 

 

Carrying
Amount

 

 

Estimated Fair
Value

 

Senior Unsecured Promissory Note (1)

 

$

50,000

 

 

$

48,478

 

 

$

—

 

 

$

—

 

(1) See “Note 11 – Debt” for additional information.

If reported at fair value in the Consolidated Balance Sheets, the Company’s debt would be classified within Level 2 of the fair value hierarchy. The fair value of the debt was estimated based on the quoted market prices for the same or similar issues.

Non-Recurring Fair Value Measurements

For purchase accounting related fair value measurements, see “Note 9 – Business Combinations.”

For lease impairment related fair value measurements, see “Note 8 – Leases.”

For goodwill impairment related fair value measurements, see “Note 10 – Goodwill And Identified Intangible Assets.”
v3.22.4
Leases
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Leases

NOTE 8 - LEASES

Under Topic 842, a contract is a lease, or contains a lease, if the contract conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. To determine whether a contract conveys the right to control the use of an identified asset for a period of time, an entity shall assess whether, throughout the period of use, the entity has both of the following: (a) the right to obtain substantially all of the economic benefits from use of the identified asset; and (b) the right to direct the use of the identified asset.

The Company leases office and research facilities, data centers and office equipment under operating leases which expire through 2029. The Company’s leases have remaining lease terms of one year to seven years, some of which may include options to extend the leases for five years or longer, and some of which may include options to terminate the leases within the next 5 years or less. Leases with an initial term of 12 months or less are not recorded on the balance sheets; expense for these leases is recognized on a straight-line basis over the lease term. Variable lease payments are expensed as incurred and are not included within the lease liability and right-of-use assets calculation. As a practical expedient, the Company elected, for all data centers, office and facility leases, not to separate non-lease components (e.g., common-area maintenance costs) from lease components (e.g., fixed payments including rent) and instead to account for each separate lease component and its associated non-lease components as a single lease component. As most of the leases do not provide an implicit rate, the Company generally, for purposes of discounting lease payments, uses its incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date.

The Company subleases certain real estate to third parties. The sublease portfolio consists of operating leases for previously exited office space. Certain subleases include variable payments for operating costs. The subleases are generally co-terminus with the head lease, or shorter. Subleases do not include any residual value guarantees or restrictions or covenants imposed by the leases. Income from subleases is recognized as a reduction to selling, general and administrative expenses.

As a result of consolidating its global real estate footprint and a decision to sublease a recently vacated office building, the Company recorded non-cash impairment charges of $4.8 million related to certain operating lease ROU assets and $2.9 million related to leasehold improvements during the year ended December 31, 2022. The Company determined that it may not be able to fully recover the carrying amount of the leased building due to a change in the manner in which the building is being used and a significant decrease in the market price of the asset. The Company estimated the fair value using a discounted cash flows

approach reflecting internally developed Level 3 assumptions that included, among other things, its expectations of cash flows from projected sublease income, occupancy estimates and its outlook for the local real estate market.

The components of operating lease costs were as follows (in thousands):

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Fixed lease cost (1)

 

$

20,581

 

 

$

20,619

 

 

$

14,296

 

Variable lease cost

 

 

5,365

 

 

 

5,030

 

 

 

2,918

 

Less: sublease income

 

 

(9,498

)

 

 

(9,724

)

 

 

(5,423

)

Total operating lease cost

 

$

16,448

 

 

$

15,925

 

 

$

11,791

 

 

(1)
Includes short-term leases costs, which were immaterial.

Other information related to leases was as follows (in thousands, except lease term and discount rate):

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

$

20,307

 

 

$

20,826

 

 

$

14,514

 

ROU assets obtained in exchange for new lease liabilities:

 

 

 

 

 

 

 

 

 

Operating leases

 

$

14,360

 

 

$

6,131

 

 

$

5,684

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,
2022

 

 

December 31,
2021

 

 

December 31,
2020

 

Weighted-average remaining lease term (years):

 

 

 

 

 

 

 

 

 

Operating leases

 

3.69

 

 

4.48

 

 

 

5.20

 

Weighted-average discount rate:

 

 

 

 

 

 

 

 

 

Operating leases

 

 

5.1

%

 

 

4.9

%

 

 

5.1

%

Future minimum lease payments and related lease liabilities as of December 31, 2022 were as follows (in thousands):

 

 

Operating Lease Payments (1)

 

 

Sublease Income

 

 

Net Operating Lease Payments

 

2023

 

 

19,897

 

 

 

(7,618

)

 

 

12,279

 

2024

 

 

18,320

 

 

 

(7,610

)

 

 

10,710

 

2025

 

 

15,810

 

 

 

(7,386

)

 

 

8,424

 

2026

 

 

7,867

 

 

 

(935

)

 

 

6,932

 

2027

 

 

2,711

 

 

 

—

 

 

 

2,711

 

Thereafter

 

 

1,473

 

 

 

—

 

 

 

1,473

 

Total lease payments

 

 

66,078

 

 

 

(23,549

)

 

 

42,529

 

Less: imputed interest

 

 

(6,217

)

 

 

—

 

 

 

(6,217

)

Present value of lease liabilities:

 

$

59,861

 

 

$

(23,549

)

 

$

36,312

 

 

 

 

 

 

 

 

 

 

 

Less: current obligations under leases (accrued liabilities)

 

 

(17,195

)

 

 

 

 

 

 

Noncurrent operating lease liabilities

 

$

42,666

 

 

 

 

 

 

 
(1)
Future minimum lease payments exclude short-term leases as well as payments to landlords for variable common area maintenance, insurance and real estate taxes.
v3.22.4
Business Combinations
 12 Months Ended
Dec. 31, 2022
Business Combinations [Abstract]  
Business Combinations

NOTE 9 – BUSINESS COMBINATIONS

MobiTV

On May 31, 2021, the Company completed its acquisition of certain assets and assumption of certain liabilities of MobiTV, Inc. (“MobiTV”, and the acquisition, the “MobiTV Acquisition”), a provider of application-based Pay-TV video delivery solutions.

The acquisition expanded the Company’s IPTV Managed Service capabilities, which is expected to grow the addressable market for the Company’s IPTV products and further secure the Company’s position as a leading provider of Pay-TV solutions. The net purchase price for the MobiTV Acquisition was $12.4 million in cash.

Purchase Price Allocation

The MobiTV Acquisition has been accounted for as a business combination, using the acquisition method. The following table presents the allocation of the purchase price to the identifiable assets acquired and liabilities assumed based on the fair values at the acquisition date, with any excess of the purchase price over the estimated fair value of the identifiable net assets acquired recorded to goodwill, all of which is expected to be deductible for tax purposes. The following table sets forth the final purchase price allocation with no measurement period adjustments identified ($ in thousands):

 

 

Estimated Useful
 Life (years)

 

Estimated
Fair Value

 

Other current assets

 

 

 

$

390

 

Property and equipment

 

 

 

 

9,223

 

Operating lease right-of-use assets

 

 

 

 

1,186

 

Identifiable intangible assets: Technology

 

6

 

 

3,260

 

Goodwill

 

 

 

 

4,059

 

Other long-term assets

 

 

 

 

115

 

Accrued liabilities

 

 

 

 

(5,288

)

Noncurrent operating lease liabilities

 

 

 

 

(545

)

Total purchase price

 

 

 

$

12,400

 

The results of operations and cash flows relating to the business acquired pursuant to the MobiTV Acquisition have been included in the Company’s consolidated financial statements for periods subsequent to May 31, 2021, and the related assets and liabilities were recorded at their estimated fair values in the Company’s Consolidated Balance Sheet as of May 31, 2021.

Supplemental Pro Forma Information

The following unaudited pro forma financial information assumes the MobiTV Acquisition was completed as of January 1, 2020. The unaudited pro forma financial information as presented below is for informational purposes only and is based on estimates and assumptions that have been made solely for purposes of developing such pro forma information. This is not necessarily indicative of the results of operations that would have been achieved if the MobiTV Acquisition had taken place on January 1, 2020, nor is it necessarily indicative of future results. Consequently, actual results could differ materially from the unaudited pro forma financial information presented below. The pro forma operating results are as follows (unaudited, in thousands):

 

 

Years Ended December 31,

 

 

 

2021

 

 

2020

 

Revenue

 

$

490,343

 

 

$

383,262

 

Net loss attributable to the Company

 

$

(191,125

)

 

$

(179,365

)

The unaudited supplemental pro forma information above includes the following pro forma adjustments: removal of certain elements of the historical MobiTV business that were not acquired, elimination of inter-company transactions between MobiTV and the Company, adjustments for transaction related costs, and adjustments to reflect the impact of purchase accounting adjustments. The unaudited supplemental pro forma information above does not include any cost saving synergies from operating efficiencies.

Vewd Software Holdings Limited

On July 1, 2022, the Company acquired 100 percent of the common stock of Vewd Software Holdings Limited (“Vewd,” and the “Vewd Acquisition”). Vewd is a leading global provider of OTT and hybrid TV solutions. The Vewd Acquisition establishes the Company as a leading independent streaming media platform through its TiVo brand and the largest independent provider of Smart TV middleware globally. The total consideration was approximately $102.9 million, consisting of approximately $52.9 million of cash and $50.0 million of debt. Refer to “Note 11 – Debt” for additional information on this debt.

Preliminary Purchase Price Allocation

The Vewd Acquisition has been accounted for as a business combination, using the acquisition method. The following table presents the preliminary allocation of the purchase price to the identifiable assets acquired and liabilities assumed based on the fair values at the acquisition date ($ in thousands):

 

 

Estimated
Useful
Life (years)

 

 

 

 

 

Estimated
Fair Value

 

Cash and cash equivalents

 

 

 

 

 

 

 

$

2,684

 

Accounts receivable

 

 

 

 

 

 

 

 

3,341

 

Unbilled contracts receivable

 

 

 

 

 

 

 

 

2,335

 

Other current assets

 

 

 

 

 

 

 

 

1,208

 

Property and equipment

 

 

 

 

 

 

 

 

443

 

Operating lease right-of-use assets

 

 

 

 

 

 

 

 

2,020

 

Identifiable intangible assets:

 

 

 

 

 

 

 

 

 

Technology

 

7

 

 

 

28,050

 

 

 

 

Customer relationships - large

 

7

 

 

 

4,900

 

 

 

 

Customer relationships - small

 

4

 

 

 

3,500

 

 

 

 

Non-compete agreements

 

2

 

 

 

870

 

 

 

 

Trade name

 

 

5

 

 

 

830

 

 

 

 

Total identifiable intangible assets

 

 

 

 

 

 

 

 

38,150

 

Goodwill

 

 

 

 

 

 

 

 

68,115

 

Other long-term assets

 

 

 

 

 

 

 

 

977

 

Accounts payable

 

 

 

 

 

 

 

 

(869

)

Accrued liabilities

 

 

 

 

 

 

 

 

(4,777

)

Deferred revenue

 

 

 

 

 

 

 

 

(920

)

Long-term deferred tax liabilities

 

 

 

 

 

 

 

 

(8,393

)

Noncurrent operating lease liabilities

 

 

 

 

 

 

 

 

(1,094

)

Other long-term liabilities

 

 

 

 

 

 

 

 

(307

)

Total preliminary purchase price

 

 

 

 

 

 

 

$

102,913

 

The above preliminary purchase price allocation, including the purchase consideration, was based on preliminary valuations and assumptions and is still subject to change within the measurement period as additional information is received, including potential changes to prepaid income taxes, current and non-current income taxes payable, deferred taxes, and other working capital adjustments. The final purchase price allocation is expected to be completed as soon as practicable, but not later than one year from the date of the acquisition.

Identifiable Intangible Assets

Identifiable intangible assets primarily consist of technology, customer relationships, non-compete agreements and trade name. In determining the fair value, the Company utilized various forms of the income and cost approaches depending on the asset being valued. The estimation of fair value required significant judgment related to cash flow forecasts, discount rates reflecting the risk inherent in each cash flow stream, competitive trends, market comparables and other factors. Inputs were generally determined using historical data supplemented by current and anticipated market conditions, and growth rates. The technology was valued using the excess earnings method. Significant assumptions used under this method include forecasted revenue and growth, estimated technology obsolescence, contributory asset charges, and the discount rate. The customer relationships were valued using the cost approach, based on estimated customer acquisition costs.

Goodwill

The excess of the consideration transferred over the fair value of assets acquired and liabilities assumed was recognized as goodwill. The goodwill is generated from operational synergies and cost savings the Company expects to achieve from the consolidated operations, as well as the expected benefits from future technologies that do not meet the definition of an identifiable intangible asset and Vewd’s knowledgeable and experienced workforce. Approximately $0.4 million of the acquired goodwill is expected to be deductible for tax purposes.

Vewd Results of Operations

Vewd’s results of operations and cash flows have been included in the Company’s consolidated financial statements for periods subsequent to July 1, 2022, and Vewd’s assets and liabilities were recorded at their estimated fair values in the Company’s Consolidated Balance Sheets as of July 1, 2022. For the year ended December 31, 2022, Vewd contributed $8.9 million of revenue and $82.6 million of operating loss, respectively, to the Company’s operating results. This operating loss includes a $68.1 million charge for goodwill impairment.

Transaction and Other Costs

In connection with the Vewd Acquisition, the Company incurred significant one-time expenses such as transaction-related costs, including transaction bonuses, legal expenses and consultant fees, and severance and retention costs. For the year ended December 31, 2022, transaction-related costs and severance and retention costs were $7.4 million and $4.0 million, respectively.

Supplemental Pro Forma Information

The following unaudited pro forma financial information assumes the Vewd Acquisition was completed as of January 1, 2021. The unaudited pro forma financial information as presented below is for informational purposes only and is based on estimates and assumptions that have been made solely for purposes of developing such pro forma information. This is not necessarily indicative of the results of operations that would have been achieved if the Vewd Acquisition had taken place on January 1, 2021, nor is it necessarily indicative of future results. Consequently, actual results could differ materially from the unaudited pro forma financial information presented below. The pro forma operating results are as follows (unaudited, in thousands):

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

Revenue

 

$

508,636

 

 

$

498,992

 

Net loss attributable to the Company

 

$

(769,483

)

 

$

(209,690

)

The unaudited supplemental pro forma information above includes the following pro forma adjustments: adjustments for transaction-related costs and severance and retention costs, adjustments for amortization of intangible assets, adjustments for interest and related expenses associated with Vewd’s historical debt, elimination of inter-company transactions between Vewd and the Company, and adjustments for the related income tax impact. The unaudited supplemental pro forma information above does not include any cost saving synergies from operating efficiencies.
v3.22.4
Goodwill and Identified Intangible Assets
 12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Identified Intangible Assets

NOTE 10 – GOODWILL AND IDENTIFIED INTANGIBLE ASSETS

Goodwill

The changes to the carrying value of goodwill from January 1, 2021 through December 31, 2022 are reflected below (in thousands):

December 31, 2020

 

$

532,453

 

Goodwill acquired through the MobiTV Acquisition

 

 

4,059

 

December 31, 2021

 

 

536,512

 

Goodwill adjustment related to Mergers in prior periods (1)

 

 

(72

)

Goodwill acquired through the Vewd Acquisition (2)

 

 

68,115

 

Impairment charge, three months ended September 30, 2022 (3)

 

 

(354,000

)

Impairment charge, three months ended December 31, 2022 (4)

 

 

(250,555

)

December 31, 2022

 

$

—

 

(1) Related to an immaterial measurement period adjustment.

(2) Related to the Vewd Acquisition completed in July 2022. For more information regarding the transaction, see “Note 9 - Business Combinations.”

(3) See discussion below.

(4) See discussion below.

Goodwill is evaluated for potential impairment annually, as of the beginning of the fourth quarter, and whenever events or changes in circumstances indicate the carrying amount of goodwill may not be recoverable. The process of evaluating goodwill

for potential impairment is subjective and requires significant estimates, assumptions and judgments particularly related to the identification of reporting units, the assignment of assets and liabilities to reporting units and estimating the fair value of each reporting unit. The Company concluded it operated in one reporting unit for all periods presented.

During the three months ended September 30, 2022, indicators of potential impairment for the Former Parent’s Product reporting unit were identified such that management concluded it was more-likely-than-not that goodwill was impaired and a quantitative interim goodwill impairment assessment should be performed as of September 30, 2022. Indicators of potential impairment included a sustained decline in the Former Parent’s stock price during the second half of the third quarter of 2022 reflective of rising interest rates and continued decline in macroeconomic conditions. The Company proceeded to perform a fair value analysis of the Product reporting unit using the market capitalization approach. Under this approach, management estimated the fair value of the Product reporting unit as of September 30, 2022 using quoted market prices of Xperi’s common stock, over its first ten trading days following the Separation, and a control premium representing the synergies a market participant would achieve upon obtaining control of Xperi. As a result of the fair value analysis, the Company recognized a goodwill impairment charge of $354.0 million during the three months ended September 30, 2022. Leveraging the aforementioned fair value assessment, the Company also completed its annual goodwill impairment test as of October 1, 2022 using the financial information as of September 30, 2022.

During the three months ended December 31, 2022, sufficient indicators of potential impairment were identified such that management concluded it was more-likely-than-not that goodwill was impaired and a quantitative interim goodwill impairment test should be performed as of December 31, 2022. Indicators of potential impairment included a significant, sustained decline in the trading price of Xperi’s common stock during the fourth quarter of 2022. The Company proceeded to perform a fair value analysis of the Product reporting unit, the Company's only reporting unit, using the market capitalization approach. Under this approach, management estimated the fair value as of December 31, 2022 using quoted market prices of Xperi’s common stock as of December 30, 2022, the last trading date of 2022, and a control premium representing the synergies a market participant would achieve upon obtaining control of Xperi. As a result of the fair value analysis, a goodwill impairment charge of $250.6 million was recognized during the three months ended December 31, 2022. As a result of this impairment charge, the Company's goodwill balance was reduced to $0 as of December 31, 2022.

As part of its annual goodwill impairment test, the Company elected to proceed with a quantitative goodwill impairment test as of October 1, 2021 using the financial information as of September 30, 2021. Based on the quantitative assessment, the Company concluded that the fair value of the Product reporting unit exceeded its carrying amount and no goodwill impairment charges were recognized. In addition, there were no significant events or circumstances affecting the valuation of goodwill recorded by the Company subsequent to the annual impairment test through December 31, 2021.

During its annual indefinite-lived intangible assets test, the Company also assessed the recoverability of indefinite-lived intangible assets, and concluded that no impairment existed as of December 31, 2022 as their estimated fair value exceeded their carrying amounts. Although impairment indicators were identified, the Company did not recognize, based on the recoverability test results in the fourth quarter of 2022, impairment charges with respect to definite-lived intangible assets and other long-lived assets other than operating leases discussed in “Note 8 – Leases”.

Identified Intangible Assets

Identified intangible assets consisted of the following (in thousands):

 

 

 

 

December 31, 2022

 

 

December 31, 2021

 

 

 

Average
Life
(Years)

 

Gross
Assets

 

 

Accumulated
Amortization

 

 

Net

 

 

Gross
Assets

 

 

Accumulated
Amortization

 

 

Net

 

Finite-lived intangible assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquired patents / core technology

 

3-10

 

$

22,189

 

 

$

(6,175

)

 

$

16,014

 

 

$

5,258

 

 

$

(5,215

)

 

$

43

 

Existing technology / content database

 

5-10

 

 

240,894

 

 

 

(190,671

)

 

 

50,223

 

 

 

212,765

 

 

 

(173,420

)

 

 

39,345

 

Customer contracts and related relationships

 

3-9

 

 

502,188

 

 

 

(335,981

)

 

 

166,207

 

 

 

494,026

 

 

 

(297,867

)

 

 

196,159

 

Trademarks/trade name

 

4-10

 

 

39,613

 

 

 

(29,733

)

 

 

9,880

 

 

 

38,783

 

 

 

(24,796

)

 

 

13,987

 

Non-competition agreements

 

1-2

 

 

3,101

 

 

 

(2,449

)

 

 

652

 

 

 

2,231

 

 

 

(2,231

)

 

 

—

 

Total finite-lived intangible assets

 

 

 

 

807,985

 

 

 

(565,009

)

 

 

242,976

 

 

 

753,063

 

 

 

(503,529

)

 

 

249,534

 

Indefinite-lived intangible assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TiVo tradename/trademarks

 

N/A

 

 

21,400

 

 

 

—

 

 

 

21,400

 

 

 

21,400

 

 

 

—

 

 

 

21,400

 

Total intangible assets

 

 

 

$

829,385

 

 

$

(565,009

)

 

$

264,376

 

 

$

774,463

 

 

$

(503,529

)

 

$

270,934

 

As of December 31, 2022, the estimated future amortization expense of finite-lived intangible assets was as follows (in thousands):

2023

 

$

57,775

 

2024

 

 

43,374

 

2025

 

 

34,757

 

2026

 

 

31,480

 

2027

 

 

30,637

 

Thereafter

 

 

44,953

 

 

 

$

242,976

 
v3.22.4
Debt
 12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
Debt

NOTE 11 – DEBT

In connection with the Vewd Acquisition as disclosed in Note 9, on July 1, 2022, TiVo Product Holdco LLC, which was subsequently renamed Xperi Inc., issued a senior unsecured promissory note (the “Promissory Note”) to the sellers of Vewd in a principal amount of $50.0 million. Indebtedness outstanding under the Promissory Note bears an interest rate of 6.00% per annum, payable in cash on a quarterly basis. If a certain qualified spin-off transaction occurs, the interest rate will be increased to the greater of (a) 6.00% and (b) the sum of (i) the highest interest rate payable under any credit facility or bonds, debentures, notes or similar instruments where the issuer or any guarantor borrows money or guarantees obligations on a secured basis on or after the date of such spin-off transaction, plus (ii) 2.00%. It was determined that the Spin-Off completed on October 1, 2022 did not trigger any change in the interest rate of the debt. The Promissory Note matures on July 1, 2025. The issuer may, at any time and on any one or more occasions, prepay all or any portion of the outstanding principal amount, plus accrued and unpaid interest, if any, under the Promissory Note without premium or penalty. In addition, the Promissory Note has mandatory prepayment provisions upon certain change of control or asset sale events.

The Promissory Note includes certain covenants that restrict the issuer and each guarantor’s ability to, among other things, incur certain indebtedness or engage in any material line of business substantially different from those lines of business conducted by such entities on the closing date of the acquisition. The Promissory Note does not contain any financial covenants.

As of December 31, 2022, $50.0 million in principal balance was outstanding. Interest expense on the Promissory Note was $1.5 million for the year ended December 31, 2022. The Company did not incur any debt in 2021 and 2020.

As of December 31, 2022, future minimum principal payments for the Promissory Note are summarized as follows (in thousands):

2023

 

$

—

 

2024

 

 

—

 

2025

 

 

50,000

 

2026

 

 

—

 

2027

 

 

—

 

Thereafter

 

 

—

 

Total

 

$

50,000

 
v3.22.4
Net Loss Per Share
 12 Months Ended
Dec. 31, 2022
Earnings Per Share [Abstract]  
Net Loss Per Share

NOTE 12 – NET LOSS PER SHARE

On October 1, 2022, 42,023,632 shares of the Company’s common stock, par value $0.001 per share, were distributed to the Former Parent’s stockholders of record as of September 21, 2022. This share amount is utilized for the calculation of basic and diluted earnings per share for all periods presented prior to the Separation and such shares are treated as issued and outstanding for purposes of calculating historical loss per share. For periods prior to the Separation, it is assumed that there are no dilutive equity instruments as there were no Xperi stock-based awards outstanding prior to the Separation.

For periods subsequent to the Separation, actual outstanding shares are used to calculate both basic and diluted weighted- average number of common shares outstanding. Potentially dilutive common shares, such as common shares issuable upon exercise of stock options and vesting of restricted stock awards and units are typically reflected in the computation of diluted net income (loss) per share by application of the treasury stock method. Due to the net losses reported, these potentially dilutive securities were excluded from the computation of diluted net loss per share, since their effect would be anti-dilutive.

The following table sets forth the computation of basic and diluted shares (in thousands):

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Denominator:

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

42,029

 

 

 

42,024

 

 

 

42,024

 

Total common shares-basic

 

 

42,029

 

 

 

42,024

 

 

 

42,024

 

Effect of dilutive securities:

 

 

 

 

 

 

 

 

 

Options

 

 

—

 

 

 

—

 

 

 

—

 

Restricted stock awards and units

 

 

—

 

 

 

—

 

 

 

—

 

Total common shares-diluted

 

 

42,029

 

 

 

42,024

 

 

 

42,024

 

The following potentially dilutive shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the period presented (in thousands):

 

 

Year Ended

 

 

 

December 31, 2022

 

Options

 

 

146

 

Restricted stock awards and units

 

 

4,604

 
v3.22.4
Stockholders' Equity
 12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Stockholders' Equity

NOTE 13 – STOCKHOLDERS’ EQUITY

Prior to the Separation, certain of the Company’s employees participated in equity-based compensation plans sponsored by the Former Parent. The Former Parent’s equity-based compensation plans included incentive compensation plans and an ESPP. All grants made through September 30, 2022 were issued under those plans which are described fully in the Form 10 filed with the SEC on September 14, 2022.

On October 1, 2022, in connection with the Separation, all outstanding Former Parent equity awards were equitably adjusted to reflect the impact of the Separation. The adjustments to each type of award outstanding pursuant to the Former Parent equity incentive plans as of immediately prior to the Separation was determined in accordance with the terms of the Employee Matters Agreement by and between Adeia Inc. and Xperi Inc., dated as of October 1, 2022 (the “EMA”). In connection with this adjustment, each outstanding Former Parent equity award as of the Separation date was converted into either (a) both Adeia and Xperi equity awards, with certain adjustments to the underlying shares and terms of outstanding awards to preserve the

aggregate intrinsic value of each award immediately after the Separation when compared to the aggregate intrinsic value immediately prior to the Separation, or (b) an equity award of only Adeia common stock or only Xperi common stock, with an adjustment to the number of shares to preserve the value of the award. Following the Separation, the Adeia awards and Xperi awards related to prior grants made by the Former Parent are subject to substantially the same terms and vesting conditions that applied to the original Former Parent awards immediately prior to the Separation.

Following the conversion, it was determined that the equity awards were modified in accordance with the applicable accounting guidance. As a result, the fair values of the equity awards immediately before and after the modification were assessed in order to determine if the modification resulted in any incremental compensation cost related to the awards. Based on the analysis performed, it was determined that the conversion resulted in $8.4 million of incremental stock-based compensation expense to be recognized over the awards’ remaining 2.6 year vesting period.

Equity Incentive Plans

In connection with the Separation and on October 1, 2022, the Company adopted the Xperi Inc. 2022 Equity Incentive Plan (the “2022 EIP”).

Under the 2022 EIP, the Company may grant equity-based awards to employees, non-employee directors, and consultants for services rendered to the Company (or any parent or subsidiary) in the form of stock options, stock awards, restricted stock awards, restricted stock units, stock appreciation rights, dividend equivalents and performance awards (or any combination thereof). A total of 10,100,000 shares were reserved for issuance under the 2022 EIP as of the Separation Date.

The 2022 EIP provides for option grants designated as either incentive stock options or non-statutory options. Options generally are granted with an exercise price not less than the value of the common stock on the grant date and have a term of ten years from the date of grant and vest over a four-year period. The vesting criteria for restricted stock awards and restricted stock units has historically been the passage of time or meeting certain performance-based objectives, and continued employment through the vesting period over four years for time-based awards or three years for performance-based awards.

As a result of the conversion of awards, on October 1, 2022, 4,119,886 restricted stock awards and units and 147,922 stock options were issued under the 2022 EIP. As of December 31, 2022, there were approximately 5.3 million shares reserved for future grant under the 2022 EIP.

Stock Options

The following table provides the Company’s stock option activity from the Separation date to December 31, 2022 (in thousands, except per share amounts):

 

 

Options Outstanding

 

 

 

Number of
Shares Subject
to Options

 

 

Weighted
Average
Exercise
Price Per
Share

 

 

Weighted
Average
Remaining
Contractual
Life (in years)

 

 

Aggregate
Intrinsic Value

 

Balance at December 31, 2021

 

 

—

 

 

$

—

 

 

 

 

 

 

 

Converted from Former Parent in connection with the Spin-Off (1)

 

 

148

 

 

$

25.52

 

 

 

 

 

 

 

Options granted

 

 

—

 

 

$

—

 

 

 

 

 

 

 

Options exercised

 

 

—

 

 

$

—

 

 

 

 

 

 

 

Options canceled / forfeited / expired

 

 

(2

)

 

$

29.16

 

 

 

 

 

 

 

Balance at December 31, 2022

 

 

146

 

 

$

25.48

 

 

 

1.89

 

 

$

—

 

Vested and expected to vest at December 31, 2022

 

 

146

 

 

 

25.48

 

 

 

1.89

 

 

$

—

 

Exercisable at December 31, 2022

 

 

146

 

 

 

25.48

 

 

 

1.89

 

 

$

—

 

(1) Amounts represent Xperi awards, including those held by Adeia employees.

The following table summarizes information about stock options outstanding and exercisable under the 2022 EIP at December 31, 2022:

 

 

Options Outstanding

 

 

Options Exercisable

 

Range of Exercise
Prices per Share

 

Number
Outstanding
(in thousands)

 

 

Weighted
Average
Remaining
Contractual
Life (in years)

 

 

Weighted
Average
Exercise Price
per Share

 

 

Number
Exercisable
(in thousands)

 

 

Weighted
Average
Exercise Price
per Share

 

$17.68 - $21.26

 

 

50

 

 

 

0.71

 

 

$

20.87

 

 

 

50

 

 

$

20.87

 

$21.64 - $24.68

 

 

63

 

 

 

2.67

 

 

$

23.43

 

 

 

63

 

 

$

23.43

 

$24.75 - $56.62

 

 

33

 

 

 

2.20

 

 

$

36.46

 

 

 

33

 

 

$

36.46

 

$17.68 - $56.62

 

 

146

 

 

 

1.89

 

 

$

25.48

 

 

 

146

 

 

$

25.48

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restricted Stock Awards and Units

Information with respect to outstanding Xperi restricted stock awards and units (including both time-based vesting and performance-based vesting) as of December 31, 2022 is as follows (in thousands, except per share amounts):

 

 

Restricted Stock and Restricted Stock Units

 

 

 

Number of Shares
Subject to Time-
based Vesting

 

 

Number of Shares
Subject to
Performance-
based Vesting

 

 

Total Number
of Shares

 

 

Weighted Average
Grant Date Fair
Value Per Share

 

Balance at December 31, 2021

 

 

—

 

 

 

—

 

 

 

—

 

 

$

—

 

Converted from Former Parent (1)

 

 

3,245

 

 

 

875

 

 

 

4,120

 

 

$

21.69

 

Awards and units granted

 

 

568

 

 

 

16

 

 

 

584

 

 

$

10.79

 

Awards and units vested / earned

 

 

(68

)

 

 

—

 

 

 

(68

)

 

$

19.55

 

Awards and units canceled / forfeited

 

 

(32

)

 

 

—

 

 

 

(32

)

 

$

18.99

 

Balance at December 31, 2022

 

 

3,713

 

 

 

891

 

 

 

4,604

 

 

 

20.35

 

(1) Amounts represent Xperi awards, including those held by Adeia employees.

Performance-Based Stock Awards and Units

Performance-Based stock awards and units (“PSUs”) may be granted to employees or consultants based upon, among other things, the contributions, responsibilities and other compensation of the particular employee or consultant. The value and the vesting of such performance awards and units are generally linked to one or more performance goals or certain market conditions determined by the Company, in each case on a specified date or dates or over any period or periods determined by the Company, and may range from zero to 200 percent of the grant. For performance awards subject to a market vesting condition, the fair value per award is fixed at the grant date and the amount of compensation expense is not adjusted during the performance period regardless of changes in the level of achievement of the market condition.

Employee Stock Purchase Plans

In connection with the Separation and on October 1, 2022, the Company adopted the Xperi Inc. 2022 Employee Stock Purchase Plan (the “2022 ESPP”). The 2022 ESPP is implemented through consecutive overlapping 24-month offering periods, each of which is comprised of four six-month purchase periods. The first offering period commenced on December 1, 2022 and will end on November 30, 2024. Each subsequent offering period under the 2022 ESPP will be twenty-four (24) months long and will commence on each December 1 and June 1 during the term of the plan. Participants may contribute up to 100% of their base earnings and commissions through payroll deductions, and the accumulated deductions will be applied to the purchase of shares on each semi-annual purchase date. The purchase price per share will equal 85% of the fair market value per share on the start date of the offering period or, if lower, 85% of the fair market value per share on the semi-annual purchase date.

An eligible employee’s right to buy the Company’s common stock under the 2022 ESPP may not accrue at a rate in excess of $25,000 of the fair market value of such shares per calendar year for each calendar year of an offering period. If the fair market value per share of the Company’s common stock on any purchase date during an offering period is less than the fair market value per share on the start date of the 24-month offering period, then that offering period will automatically terminate and a new 24-month offering period will begin on the next business day. All participants in the terminated offering will be transferred to the new offering period.

As of December 31, 2022, there were 5.0 million shares reserved for grant under the 2022 ESPP.

v3.22.4
Stock-Based Compensation Expense
 12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Expense

NOTE 14 – STOCK-BASED COMPENSATION

Prior to the Separation, the stock-based compensation expense was based on the expense for employees specifically identifiable to Xperi. Consequently, the amounts presented are not necessarily indicative of future awards and do not necessarily reflect the costs that the Company would have incurred as an independent company.

The effect of recording stock-based compensation expense for the years ended December 31, 2022, 2021 and 2020 is as follows (in thousands):

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Cost of revenue, excluding depreciation and amortization of intangible assets

 

$

2,906

 

 

$

1,972

 

 

$

585

 

Research and development

 

 

21,561

 

 

 

17,914

 

 

 

11,383

 

Selling, general and administrative

 

 

20,836

 

 

 

13,623

 

 

 

7,215

 

Total stock-based compensation expense

 

 

45,303

 

 

 

33,509

 

 

 

19,183

 

Tax effect on stock-based compensation expense

 

 

(139

)

 

 

(225

)

 

 

(1,377

)

Net effect on net loss

 

$

45,164

 

 

$

33,284

 

 

$

17,806

 

Stock-based compensation expense categorized by various equity components for the years ended December 31, 2022, 2021 and 2020 is summarized in the table below (in thousands):

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Restricted stock awards and units

 

$

42,208

 

 

$

30,015

 

 

$

17,867

 

Employee stock purchase plan

 

 

2,727

 

 

 

3,428

 

 

 

1,281

 

Employee stock options

 

 

368

 

 

 

66

 

 

 

35

 

Total stock-based compensation expense

 

$

45,303

 

 

$

33,509

 

 

$

19,183

 

In addition, for the years ended December 31, 2022, 2021 and 2020, $6.9 million, $9.2 million and $7.9 million respectively, of stock-based compensation expense was recognized in operating results as part of the corporate and shared functional employees expenses allocation.

As described in Note 13, the Company expects to recognize $8.4 million of incremental stock-based compensation expense in connection with the conversion of the Former Parent’s PSUs over the awards’ remaining 2.6 year vesting period. In the fourth quarter of 2022, we recognized $1.4 million of incremental expense in connection with the conversion of the Former Parent’s PSUs into PSUs with respect to Xperi common stock and Adeia common stock, and $0.4 million of incremental expense in connection with the conversion of the Former Parent’s stock options into stock options with respect to Xperi common stock and Adeia common stock.

The total fair value of the Company’s restricted stock awards and units vested was $1.3 million post-Separation during the year ended December 31, 2022.

No Xperi stock options were exercised during the year ended December 31, 2022.

As of December 31, 2022, after estimated forfeitures, $54.5 million of unrecognized stock-based compensation balance related to Xperi's unvested restricted stock awards and units was expected to be recognized over an estimated weighted average amortization period of 2.5 years.

As of December 31, 2022, after estimated forfeitures, $48.8 million of unrecognized stock-based compensation balance related to Adeia's unvested restricted stock awards and units for employees specifically identifiable to Xperi was expected to be recognized over an estimated weighted average amortization period of 2.3 years.

As of December 31, 2021, the unrecognized stock-based compensation balance after estimated forfeitures, under the Former Parent's equity incentive plans, consisted of $61.6 million related to restricted stock awards and units to be recognized over an estimated weighted average amortization period of 1.8 years.

Stock-based compensation is measured at the grant date based on the estimated fair value of the award and is recognized as expense on a straight-line basis, net of estimated forfeitures, over the requisite service or performance period. Forfeitures are estimated at the time of grant and revised in subsequent periods if actual forfeitures differ from those estimates. Historical data is used to estimate pre-vesting award forfeitures and record stock-based compensation expense only for those awards that are expected to vest.

The Company uses the Black-Scholes option pricing model to determine the estimated fair value of options and ESPP shares. The fair value of each option grant is determined on the date of grant and the expense is recorded on a straight-line basis. The assumptions used in the model include expected life, volatility, risk-free interest rate, and dividend yield. The Company’s determinations of these assumptions are outlined below.

Expected life – The expected life assumption is based on analysis of the Company’s historical employee exercise patterns. The expected life of options granted under the ESPP represents the offering period of two years.

Volatility – Due to limited historical trading data, volatility is calculated based on a peer group over the most recent period that represents the remaining term of the vesting period as of the valuation date.

Risk-free interest rate – The risk-free interest rate assumption is based on the U.S. Treasury rate for issues, commensurate with the expected life of the options granted.

Dividend yield – The Company does not expect to pay dividends in the foreseeable future.

There were no Xperi stock options granted during the year ended December 31, 2022.

The following assumptions were used to value Xperi’s ESPP shares offered post-Separation during the year ended December 31, 2022:

 

 

Year Ended December 31,

 

 

 

2022

 

Expected life (in years)

 

 

2.0

 

Risk-free interest rate

 

 

4.3

%

Dividend yield

 

 

0.0

%

Expected volatility

 

 

42.9

%

Prior to the Separation, the valuation assumptions were determined by the Former Parent.

The following assumptions were used to value the Former Parent’s ESPP shares granted to employees specifically identifiable to Xperi in the years ended 2022, 2021 and 2020:

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Expected life (in years)

 

 

2.0

 

 

 

2.0

 

 

 

2.0

 

Risk-free interest rate

 

 

1.3

%

 

0.1 - 0.2%

 

 

1.0 - 1.4%

 

Dividend yield

 

 

1.1

%

 

0.9 - 1.2%

 

 

1.4 - 4.0%

 

Expected volatility

 

 

48.5

%

 

52.0 - 52.0%

 

 

45.8 - 57.5%

 

The Company uses the closing trading price of its common stock on the date of grant as the fair value of awards of RSUs and PSUs that are based on Company-designated performance targets. For PSUs that are based on market conditions, or market-based PSUs, fair value is estimated by using a Monte Carlo simulation on the date of grant. The following assumptions were used to value market-based PSUs granted by the Former Parent in the years ended December 31, 2022, 2021 and 2020:

 

 

Years Ended December 31,

 

 

 

April 2022

 

 

March 2021

 

 

July 2020

 

Expected life (years)

 

 

3.0

 

 

 

3.0

 

 

 

3.0

 

Risk-free interest rate

 

2.8%

 

 

0.3%

 

 

0.2%

 

Dividend yield

 

1.2%

 

 

1.0%

 

 

1.4%

 

Expected volatility

 

40.9%

 

 

47.9%

 

 

51.3%

 
v3.22.4
Income Taxes
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes

NOTE 15 – INCOME TAXES

The components of total loss before taxes are as follows (in thousands):

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

U.S.

 

$

(667,612

)

 

$

(123,201

)

 

$

(143,623

)

Foreign

 

 

(80,005

)

 

 

(37,037

)

 

 

(7,405

)

Total loss before taxes from continuing operations

 

$

(747,617

)

 

$

(160,238

)

 

$

(151,028

)

The provision for (benefit from) income taxes consisted of the following (in thousands):

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Current:

 

 

 

 

 

 

 

 

 

U.S. federal

 

$

—

 

 

$

—

 

 

$

203

 

Foreign

 

 

21,252

 

 

 

12,531

 

 

 

8,865

 

State and local

 

 

1,723

 

 

 

(604

)

 

 

1,454

 

Total current

 

 

22,975

 

 

 

11,927

 

 

 

10,522

 

Deferred:

 

 

 

 

 

 

 

 

 

U.S. federal

 

 

(5,431

)

 

 

1,215

 

 

 

(17,811

)

Foreign

 

 

(3,871

)

 

 

7,116

 

 

 

(699

)

State and local

 

 

(84

)

 

 

(1,418

)

 

 

(1,747

)

Total deferred

 

 

(9,386

)

 

 

6,913

 

 

 

(20,257

)

Provision for (benefit from) income taxes

 

$

13,589

 

 

$

18,840

 

 

$

(9,735

)

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts for income tax purposes.

Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):

 

 

December 31,

 

 

 

2022

 

 

2021

 

Deferred tax assets

 

 

 

 

 

 

Net operating losses

 

$

19,477

 

 

$

29,786

 

Research credits

 

 

6,791

 

 

 

7,446

 

Foreign tax credits

 

 

2,119

 

 

 

3,858

 

Accrued expenses

 

 

27,987

 

 

 

25,407

 

Basis difference in fixed and intangible assets

 

 

16,290

 

 

 

14,276

 

Deferred revenue

 

 

9,556

 

 

 

12,425

 

Capitalized R&D

 

 

63,601

 

 

 

48,807

 

Lease liability

 

 

13,310

 

 

 

14,158

 

Other tax credits

 

 

1,673

 

 

 

—

 

Gross deferred tax assets

 

 

160,804

 

 

 

156,163

 

Valuation allowance

 

 

(111,779

)

 

 

(101,529

)

Net deferred tax assets

 

 

49,025

 

 

 

54,634

 

Deferred tax liabilities

 

 

 

 

 

 

Acquired intangible assets

 

 

(45,424

)

 

 

(47,476

)

Revenue recognition

 

 

(2,292

)

 

 

(4,845

)

Right-of-use asset

 

 

(10,550

)

 

 

(13,706

)

Other

 

 

(1,562

)

 

 

(1,188

)

Gross deferred tax liabilities

 

 

(59,828

)

 

 

(67,215

)

Net deferred tax liabilities

 

$

(10,803

)

 

$

(12,581

)

The need for a valuation allowance requires an assessment of both positive and negative evidence when determining whether it is more-likely-than-not that deferred tax assets are recoverable. Such assessment is required on a jurisdiction-by-jurisdiction basis. In making such assessment, significant weight is given to evidence that can be objectively verified. After considering

both positive and negative evidence to assess the recoverability of the Company’s net deferred tax assets, the Company determined that it was not more-likely-than-not that it would realize its federal, certain state and certain foreign deferred tax assets. The Company intends to continue maintaining a valuation allowance on its federal deferred tax assets until there is sufficient evidence to support the reversal of all or some portion of these allowances. Release of the valuation allowance would result in the recognition of certain federal deferred tax assets and a decrease to income tax expense for the period the release is recorded. The exact timing and amount of the valuation allowance release depends on the level of profitability that the Company is able to achieve.

As of December 31, 2022, the Company had recorded deferred tax assets for the tax effects of the following gross tax loss carryforwards (in thousands):

 

 

Carry forward Amount

 

 

Years of Expiration

Federal

 

$

24,121

 

 

2027 - 2032

State (post-apportionment)

 

$

154,352

 

 

2023 - 2041

As of December 31, 2022, the Company had the following credits available to reduce future income tax expense (in thousands):

 

 

Carry forward Amount

 

 

Years of Expiration

Federal research and development credits

 

$

8,644

 

 

2024 - 2042

State research and development credits

 

$

13,174

 

 

Indefinite

The deferred tax asset valuation allowance and changes in the deferred tax asset valuation allowance consisted of the following (in thousands):

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Balance at beginning of period

 

$

101,529

 

 

$

52,676

 

 

$

27,796

 

Charged (credited) to expenses

 

 

19,321

 

 

 

59,249

 

 

 

16,177

 

Charged (credited) to other accounts

 

 

(9,071

)

 

 

(10,396

)

 

 

8,703

 

Balance at end of period

 

$

111,779

 

 

$

101,529

 

 

$

52,676

 

A reconciliation of the statutory U.S. federal income tax rate to the Company’s effective tax rate is as follows:

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

U.S. federal statutory rate

 

$

(157,032

)

 

$

(33,650

)

 

$

(31,716

)

State, net of federal benefit

 

 

1,974

 

 

 

(258

)

 

 

(1,129

)

Stock-based compensation

 

 

2,036

 

 

 

(1,740

)

 

 

2,779

 

Executive compensation limitation

 

 

2,286

 

 

 

2,221

 

 

 

563

 

Research tax credit

 

 

(5,225

)

 

 

(2,321

)

 

 

(1,610

)

Foreign withholding tax

 

 

8,079

 

 

 

11,018

 

 

 

7,620

 

Goodwill impairment

 

 

107,831

 

 

 

—

 

 

 

—

 

Restructuring and transaction costs

 

 

293

 

 

 

—

 

 

 

6,161

 

Foreign rate differential

 

 

19,337

 

 

 

16,407

 

 

 

2,082

 

Foreign tax credit

 

 

(977

)

 

 

(8,928

)

 

 

(5,441

)

Change in valuation allowance

 

 

20,491

 

 

 

39,063

 

 

 

7,158

 

Foreign income inclusions

 

 

7,656

 

 

 

—

 

 

 

642

 

Unrecognized tax benefits

 

 

6,798

 

 

 

1,526

 

 

 

1,703

 

Change in estimates

 

 

(1,802

)

 

 

(4,674

)

 

 

—

 

Others

 

 

1,844

 

 

 

176

 

 

 

1,453

 

Total

 

$

13,589

 

 

$

18,840

 

 

$

(9,735

)

At December 31, 2022, the Company asserts that it will not permanently reinvest its foreign earnings outside the United States. The Company anticipates that the cash from its foreign earnings may be used domestically to fund operations or used for other business needs. The accumulated undistributed earnings generated by its foreign subsidiaries was approximately $74.0 million. Substantially all of these earnings will not be taxable upon repatriation to the United States since under the Tax Cuts and Jobs

Act they will be treated as previously taxed income from the one-time transition tax, Global Intangible Low-Taxed Income or dividends-received deduction. The U.S. state income taxes and foreign withholding taxes related to the distributable cash of the Company’s foreign subsidiaries are not expected to be material.

As of December 31, 2022, unrecognized tax benefits were approximately $19.4 million, of which $8.8 million would affect the effective tax rate if recognized. As of December 31, 2021, unrecognized tax benefits were approximately $8.4 million, of which $1.7 million would affect the effective tax rate if recognized. As of December 31, 2020, unrecognized tax benefits were approximately $7.1 million, of which $1.1 million would affect the effective tax rate if recognized.

The Company is unable to make a reasonable estimate of the timing of the long-term payments or the amount by which the unrecognized tax benefits will increase or decrease over the next 12 months.

The reconciliation of the Company’s unrecognized tax benefits for the years ended December 31, 2022, 2021 and 2020 is as follows (in thousands):

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Total unrecognized tax benefits at January 1

 

$

8,438

 

 

$

7,106

 

 

$

9,067

 

Changes due to mergers and transactions

 

 

1,682

 

 

 

(1,440

)

 

 

(3,605

)

Increases for tax positions related to the current year

 

 

8,793

 

 

 

1,962

 

 

 

958

 

Increases for tax positions related to prior years

 

 

444

 

 

 

1,303

 

 

 

745

 

Decreases for tax positions related to prior years

 

 

(3

)

 

 

(493

)

 

 

(59

)

Total unrecognized tax benefits at December 31

 

$

19,354

 

 

$

8,438

 

 

$

7,106

 

It is the Company’s policy to classify accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes. For the years ended December 31, 2022, 2021 and 2020, the Company recognized an immaterial amount of interest and penalties related to unrecognized tax benefits. Accrued interest and penalties were immaterial for the years ended December 31, 2022 and 2021, respectively.

With few exceptions, the Company’s 2018 through 2022 tax years are open and subject to potential examination in one or more jurisdictions at December 31, 2022. In addition, in the United States, any net operating losses or credits that were generated in 2021 or earlier but not yet fully utilized in a year that is closed under the statute of limitations may also be subject to adjustment if the Former Parent were to be audited.
v3.22.4
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

NOTE 16 – COMMITMENTS AND CONTINGENCIES

Purchase and Other Contractual Obligations

In the ordinary course of business, the Company enters into contractual agreements with third parties that include non-cancelable payment obligations, for which it is liable in future periods. These arrangements primarily include unconditional purchase obligations to service providers. Total future unconditional purchase obligations as of December 31, 2022 were as follows (in thousands):

2023

 

$

32,697

 

2024

 

 

17,631

 

2025

 

 

9,469

 

2026

 

 

8,580

 

2027

 

 

9,201

 

Thereafter

 

 

25,348

 

Total

 

$

102,926

 

Additionally, under certain other contractual arrangements, the Company may be obligated to pay up to $1.3 million, a majority of which is expected to be paid in the next two years, if certain milestones are achieved.

Inventory Purchase Commitment

The Company uses contract manufacturers to provide manufacturing services for its products. During the normal course of business, in order to manage manufacturing lead times and help ensure adequate supply, the Company enters into agreements

with its contract manufacturers that either allow them to procure inventory based on criteria as defined by the Company or that establish the parameters defining the Company’s requirements. A significant portion of the Company’s purchase commitments arising from these agreements consist of firm, non-cancelable and unconditional purchase commitments. In certain instances, these agreements allow the Company the option to cancel, reschedule or adjust the Company’s requirements based on its business needs prior to firm orders being placed. As of December 31, 2022, the Company had total purchase commitments for inventory of $1.3 million.

Indemnifications

In the normal course of business, the Company provides indemnifications of varying scopes and amounts to certain of its licensees, customers, and business partners against claims made by third parties arising from the use of the Company's products, intellectual property, services or technologies. The Company cannot reasonably estimate the possible range of losses that may be incurred pursuant to its indemnification obligations, if any. Variables affecting any such assessment include, but are not limited to: the scope of the contractual indemnification obligation; the nature of the third party claim asserted; the relative merits of the third party claim; the financial ability of the third party claimant to engage in protracted litigation; the number of parties seeking indemnification; the nature and amount of damages claimed by the party suing the indemnified party; and the willingness of such party to engage in settlement negotiations. The Company has received requests for indemnification, but to date none has been material and no liability has been recorded in the Company’s financial statements.

As permitted under Delaware law, the Company has agreements whereby it indemnifies its officers and directors for certain events or occurrences while the officer or director is, or was, serving at the Company’s request in such capacity. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, the Company believes, given the absence of any such payments in the Company’s history, and the estimated low probability of such payments in the future, that the estimated fair value of these indemnification agreements is immaterial. In addition, the Company has directors’ and officers’ liability insurance coverage that is intended to reduce its financial exposure and may enable the Company to recover any payments under the indemnification agreements, should they occur.

Contingencies

The Company and its subsidiaries have been involved in litigation matters and claims in the normal course of business. In the past, the Company or its subsidiaries have litigated to enforce their respective patents and other intellectual property rights, to enforce the terms of license agreements, to determine infringement or validity of intellectual property rights, and to defend themselves or their customers against claims of infringement or breach of contract. The Company expects it or its subsidiaries will be involved in similar legal proceedings in the future, including proceedings to ensure proper and full payment of royalties by licensees under the terms of their license agreements.

An adverse decision in any legal actions could result in a loss of the Company’s proprietary rights, subject the Company to significant liabilities, require the Company to seek licenses from others, limit the value of the Company’s licensed technology or otherwise negatively impact the Company’s stock price or its business and consolidated financial results.
v3.22.4
Related Party Transactions and Net Investment By Former Parent
 12 Months Ended
Dec. 31, 2022
Related Party Transactions [Abstract]  
Related Party Transactions and Net Investment By Former Parent

NOTE 17 - RELATED PARTY TRANSACTIONS AND NET INVESTMENT BY FORMER PARENT

For periods prior to the Separation, the Consolidated Financial Statements have been prepared on a standalone basis and were derived from the consolidated financial statements and accounting records of the Former Parent. The following disclosure summarizes activity prior to the Separation between the Company and the Former Parent, including affiliates of the Former Parent that were not part of the Separation.

Allocation of Corporate expenses

Prior to Separation, the Consolidated Financial Statements included expenses for certain management and support functions which were provided on a centralized basis within the Former Parent, as described in “Note 1 – The Company and Basis of Presentation.” These management and support functions include, but are not limited to, executive management, sales and marketing, finance, legal, information technology, employee benefits administration, stock-based compensation, treasury, risk management, procurement and other shared services. These allocations were made on a direct usage basis when identifiable, with the remainder allocated on a pro rata basis of billing, revenue, headcount or other measures of the Company and the Former Parent.

The amount of these allocations from the Former Parent was $47.6 million, which included $3.0 million for depreciation expenses and $44.6 million for selling, general and administrative for the year ended December 31, 2022, $59.7 million, which included $4.6 million for depreciation expense, and $55.1 million for selling, general and administrative expense for the year ended December 31, 2021, and $66.9 million, which included $1.3 million for research and development, $3.3 million for depreciation expense, and $62.3 million for selling, general and administrative expense for the year ended December 31, 2020.

Management believes these cost allocations are a reasonable reflection of the utilization of services provided to, or the benefit derived by, the Company during the periods presented. The allocations may not, however, be indicative of the actual expenses that would have been incurred had the Company operated as a standalone public company. Actual costs that may have been incurred if the Company had been a standalone public company would depend on a number of factors, such as the chosen organizational structure, whether functions were outsourced or performed by the Company’s employees, and strategic decisions made in areas such as selling, information technology and infrastructure.

Net Transfers from Former Parent

A reconciliation of Net transfers from the Former Parent on the Consolidated Statements of Equity to the corresponding amount on the Consolidated Statements of Cash Flows was as follows (in thousands):

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Total net transfers from Former Parent per Consolidated Statements of Equity

 

$

100,915

 

 

$

116,830

 

 

$

506,176

 

Stock-based compensation

 

 

(45,303

)

 

 

(33,509

)

 

 

(19,183

)

TiVo merger consideration

 

 

—

 

 

 

—

 

 

 

(452,768

)

Net proceeds from capital contributions by Former Parent

 

 

83,235

 

 

 

—

 

 

 

—

 

Issuance of equity to noncontrolling interest

 

 

(1,423

)

 

 

9

 

 

 

19

 

Other

 

 

(1,387

)

 

 

—

 

 

 

—

 

Total net transfers from Former Parent per Consolidated Statements of Cash Flows

 

$

136,037

 

 

$

83,330

 

 

$

34,244

 
v3.22.4
Benefit Plan
 12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
Benefit Plan

NOTE 18 – BENEFIT PLAN

The Company maintains a 401(k) retirement savings plan that allows voluntary contributions by all eligible U.S. employees upon their hire date. Eligible employees may elect to contribute up to the maximum amount allowed under Internal Revenue Service regulations. The Company can make discretionary contributions under the 401(k) plan. During the years ended December 31, 2022, 2021 and 2020, the Company’s employer 401(k) match expense was approximately $5.4 million, $3.6 million, and $2.9 million, respectively.
v3.22.4
Schedule II Valuation and Qualifying
 12 Months Ended
Dec. 31, 2022
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]  
Schedule II Valuation and Qualifying Accounts

Schedule II. Valuation and Qualifying Accounts

None.
v3.22.4
Summary Of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Basis of Presentation

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States (“U.S.”) and the applicable rules and regulations of the Securities and Exchange Commission (the “SEC”).

During the three months ended September 30, 2022, all of the assets and liabilities of the Xperi Product business had been transferred to a legal entity (the “Transfer”) under the common control of Xperi. Subsequent to this transfer and through December 31, 2022, the Company's financial statements and accompanying notes are prepared on a consolidated basis and include Xperi and its subsidiaries in which Xperi has a controlling financial interest. All intercompany balances and transactions are eliminated in consolidation. Prior to the Transfer, the financial statements and accompanying notes of the Xperi Product business were prepared on a combined basis and were derived from the consolidated financial statements and accounting records of the Former Parent as the Company was not historically held by a single legal entity. Net investment by Former Parent, which represents the Former Parent’s total net interest in the recorded net assets of the Company prior to the transfer, is presented within equity on a combined basis in lieu of share capital. All intercompany balances and transactions within the combined businesses of the Company have been eliminated.

The Consolidated Balance Sheets of Xperi and its subsidiaries for the pre-Transfer periods include Former Parent’s assets and liabilities that are specifically identifiable or otherwise attributable to the Company. In the fourth quarter of 2018, the Company funded a new subsidiary, Perceive Corporation (“Perceive”), which was created to focus on delivering edge inference solutions. As of December 31, 2022, the Company owned approximately 77.0% of the outstanding equity interest of Perceive. The operating results of Perceive have been included in the Company’s consolidated financial statements since the fourth quarter of 2018.

Prior to the Separation, the Company was dependent on the Former Parent for all of its working capital and financing requirements as the Former Parent used a centralized approach to cash management and financing its operations. Financial transactions relating to the Company were accounted for as equity contributions from the Former Parent on the Consolidated Balance Sheets. Accordingly, none of the Former Parent’s cash and cash equivalents were allocated to the Company for any of the periods presented, unless those balances were directly attributable to the Company. The Company reflects transfers of cash to and from the Former Parent’s cash management system within equity as a component of Net investment by Former Parent on a combined basis and as a component of net capital contribution from Former Parent on a consolidated basis. Other than the debt incurred in connection with the acquisition of Vewd Software Holdings Limited (“Vewd”) discussed in Note 9, the Former Parent’s long-term debt has not been attributed to the Company for any of the periods presented because the Former Parent’s

borrowings are not the legal obligation of the Company. The cash and cash equivalents, including the Company’s capitalization from Former Parent on September 30, 2022 is expected to be sufficient to support its operations, capital expenditures and income tax payments, in addition to any investments and other capital allocation needs for at least the next 12 months from the issuance date of these consolidated financial statements.

Prior to the Separation, the Consolidated Statements of Operations and Comprehensive Loss of the Company reflect allocations of general corporate expenses from the Former Parent, including, but not limited to, executive management, sales and marketing, finance, legal, information technology, employee benefits administration, stock-based compensation, treasury, risk management, procurement and other shared services. These allocations were made on a direct usage basis when identifiable, with the remainder allocated on a pro rata basis of billing, revenue, headcount or other measures as deemed appropriate. Management of the Company and Former Parent consider these allocations to be a reasonable reflection of the utilization of services by, or the benefits provided to, the Company. The allocations may not, however, reflect the expenses the Company would have incurred as a standalone company for the periods presented. Actual costs that may have been incurred if the Company had been a standalone company would depend on a number of factors, such as the chosen organizational structure, whether functions were outsourced or performed by employees and decisions with respect to areas such as facilities, information technology and operating infrastructure.

During the periods prior to the Separation that are presented in the accompanying Consolidated Financial Statements, the Company’s income tax expense (benefit) and deferred tax balances were included in the Former Parent’s income tax returns. Income tax expense (benefit) and deferred tax balances contained in these Consolidated Financial Statements for periods prior to the Separation are presented on a separate return basis, as if the Company had filed its own income tax returns. As a result, actual tax transactions included in the consolidated financial statements of the Former Parent may or may not be included in the Consolidated Financial Statements of the Company. Similarly, the tax treatment of certain items reflected in the Consolidated Financial Statements of the Company may or may not be reflected in the consolidated financial statements and income tax returns of the Former Parent. The taxes recorded in the Consolidated Statements of Operations for periods prior to the Separation are not necessarily representative of the taxes that may arise in the future when the Company files its income tax returns independent from the Former Parent’s returns. The income tax expense (benefit) recorded for the three months ended December 31, 2022 is presented as if activity from this period would have been included in the same separate return as the nine months of activity through the date of Separation. Deferred tax balances for the period ended December 31, 2022 are presented for the standalone Company.

The Company’s fiscal year ends on December 31. The Company employs a calendar month-end reporting period for its quarterly reporting.
Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The accounting estimates and assumptions that require management’s most significant, challenging, and subjective judgment include the estimation of licensees’ quarterly royalties prior to receiving the royalty reports, the determination of stand-alone selling price and the transaction price in an arrangement with multiple performance obligations, the assessment of the recoverability of goodwill, the assessment of useful lives and recoverability of other intangible assets and long-lived assets, recognition and measurement of current and deferred income tax assets and liabilities, the assessment of unrecognized tax benefits, and purchase accounting resulting from business combinations. Actual results experienced by the Company may differ from management’s estimates.

The COVID-19 pandemic and related macroeconomic conditions have had, and may continue to have, an adverse impact on the Company’s business. The impact to date has included periods of significant volatility in markets the Company serves, in particular the automotive and broad consumer electronics markets. Additionally, the pandemic has caused some challenges and delays in acquiring new customers and executing license renewals. These factors have contributed to an impairment of our long-lived assets, including goodwill, and may result in increased credit losses and impairments of investments in other companies. The Company’s operations and those of its customers have also been negatively impacted by certain trends arising from the COVID-19 pandemic, including labor market constraints, shortage of semiconductor components and manufacturing capacities, and delays in shipments, product development and product launches. Moreover, the COVID-19 pandemic, its related impact, and United States federal, state and foreign government policies enacted to combat the pandemic have contributed to a recent rise of inflation that may increase the cost of the Company’s operations and reduce demand for the Company’s products and services and those of its customers, which may adversely affect the Company’s financial performance. The impact of the

pandemic on the Company’s overall results of operations remains uncertain for the foreseeable future and will depend on various factors outside the Company’s control.
Principles of Consolidation

Principles of Consolidation

Subsequent to the Transfer during the third quarter of 2022 and through December 31, 2022, the Company’s financial statements are prepared on a consolidated basis and include the accounts of the Company and its wholly-owned subsidiaries, as well as an entity in which the Company has a controlling financial interest. All intercompany accounts and transactions have been eliminated in consolidation.

Prior to the Transfer and through the date in the third quarter of 2022 when all subsidiaries of Xperi Product were owned by the parent company of Xperi Product, the accompanying financial statements of the Xperi Product business were prepared on a combined basis and were derived from the consolidated financial statements and accounting records of the Former Parent as the Company was not historically held by a single legal entity. Net investment by Former Parent, which represents the Former Parent’s total net interest in the recorded net assets of the Company prior to the Transfer and through the date when all subsidiaries of Xperi Product were owned by the parent company of Xperi Product, is presented within equity on a combined basis in lieu of share capital. All intercompany balances and transactions within the combined businesses of the Company have been eliminated.
Net Investment by Former Parent

Net Investment by Former Parent

Net investment by Former Parent on the Consolidated Balance Sheets and Consolidated Statements of Equity represents the Former Parent’s historical investment in the Company, the net effect of transactions with and allocations from the Former Parent, and the Company’s accumulated deficit. See “Note 17 – Related Party Transactions and Net Investment by Former Parent” for additional information.
Net Loss Per Share

Net Loss Per Share

Net loss per share is computed by dividing net loss for the period by the weighted-average number of common shares outstanding during the period. The calculations of basic and diluted loss per share for any of the periods presented prior to the Separation were based on the number of shares outstanding on October 1, 2022, the Separation Date. For periods prior to the Separation, it is assumed that there are no dilutive equity instruments as there were no Xperi stock-based awards outstanding prior to the Separation. Dilutive weighted-average common shares outstanding do not include unvested restricted stock awards and units and stock options for the periods presented because the effect of their inclusion would have been anti-dilutive. Refer to “Note 12 - Net Loss per Share” for a reconciliation.
Revenue Recognition

Revenue Recognition

Revenue is recognized when control of the promised goods or services is transferred to a customer in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services, which may include various combinations of goods and services which are generally capable of being distinct and accounted for as separate performance obligations. See “Note 4 – Revenue” for a detailed discussion on revenue and revenue recognition.
Segment Reporting

Segment Reporting

Operating segments are defined as components of an enterprise for which separate financial information is available and that is evaluated on a regular basis by the chief operating decision-maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources and evaluating financial performance. As such, the Company has determined that it has one operating segment, which is also its reportable segment.
Cash and Cash Equivalents

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with an original maturity of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents are maintained with various financial institutions.

Non-Marketable Equity Investments

Non-Marketable Equity Investments

Investments in entities over which the Company has the ability to exercise significant influence, but does not hold a controlling interest, are accounted for using the equity method. Under the equity method, the Company records its proportionate share of income or loss in other income and expense, net, in the Consolidated Statements of Operations. Investments in entities over which the Company does not have the ability to exercise significant influence and which do not have readily determinable fair values, are initially recognized at cost and remeasured through earnings when there is an observable transaction involving the same or similar investment of the same issuer, or due to an impairment (referred to as the “measurement alternative”). The fair value of non-marketable equity investments is not estimated if there are no identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. The Company monitors its non-marketable securities portfolio for potential impairment. When there is evidence that the expected fair value of the investment has declined to below the recorded cost, the impairment loss is recorded in other income (expense), net, in the Consolidated Statements of Operations.
Fair Value of Financial Instruments

Fair Value of Financial Instruments

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The carrying amount of cash equivalents, accounts receivable, accounts payable and accrued liabilities approximates fair value due to the short-term nature of these instruments. Long-term debt is carried at amortized cost and measured at fair value on a quarterly basis for disclosure purposes. See “Note 7 – Fair Value” for further information.
Derivative Instruments

Derivative Instruments

In the fourth quarter of 2022, the Company began to use derivative financial instruments to manage foreign currency exchange rate risk. The Company does not enter into derivative transactions for trading purposes. The Company’s derivative financial instruments are recorded on the Consolidated Balance Sheets as assets or liabilities measured at fair value. For derivatives designated as a hedge, and effective as part of a hedge transaction, the effective portion of the gain or loss on the hedging derivative instrument is reported as a component of other comprehensive income (loss) and as a basis adjustment to the underlying hedged item and reclassified to earnings in the period in which the hedged item affects earnings. To the extent derivatives do not qualify or are not designated as hedges, or are ineffective, their changes in fair value are recorded in earnings immediately. See “Note 6 – Financial Instruments” for further information.
Concentration of Credit and Other Risks

Concentration of Credit and Other Risks

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash equivalents and accounts receivable. The Company follows a corporate investment policy which sets credit, maturity and concentration limits and regularly monitors the composition, market risk and maturities of these investments. The Company also maintains cash and cash equivalents with various financial institutions. These financial institutions are located in many different geographic regions, and the Company’s policy is designed to limit exposure from any particular institution. As part of its risk management processes, the Company performs periodic evaluations of the relative credit standing of these financial institutions. The Company has not sustained material credit losses from instruments held at these financial institutions. The Company believes that any concentration of credit risk in its accounts receivable is substantially mitigated by the Company’s evaluation process, relatively short collection terms and the high level of credit worthiness of its customers. The Company performs ongoing credit evaluations of its customers’ financial condition and limits the amount of credit extended when deemed necessary but generally requires no collateral.

The Company had no customers representing 10% or more of aggregate trade receivables at December 31, 2022 and December 31, 2021.

There were no individually significant customers with revenue exceeding 10% of total revenue for the years ended December 31, 2022, 2021 and 2020.
Accounts Receivable

Accounts Receivable

The timing of revenue recognition may differ from the timing of invoicing to customers. The Company records a receivable when revenue is recognized prior to cash collection.

Payment terms and conditions vary by contract type, location of customer and the products or services offered, although terms generally require payment from a customer within 30 to 60 days. When the timing of revenue recognition differs from the

timing of cash collection, an evaluation is performed to determine whether the contract includes a significant financing component.
Allowance for Credit Losses

Allowance for Credit Losses

The allowance for credit losses, which includes the allowance for accounts receivable and unbilled contracts receivable, represents the Company’s best estimate of lifetime expected credit losses inherent in those financial assets. The Company’s lifetime expected credit losses are determined using relevant information about past events (including historical experience), current conditions, and reasonable and supportable forecasts that affect collectability. The Company monitors its credit exposure through ongoing credit evaluations of its customers’ financial condition and limits the amount of credit extended when deemed necessary. In addition, the Company performs routine credit management activities such as timely account reconciliations, dispute resolution, and payment confirmations. The Company may employ collection agencies and legal counsel to pursue recovery of defaulted receivables. See “Note 4– Revenue” for a further discussion of the allowance for credit losses.
Inventory

Inventory

Inventories consist primarily of TiVo Stream 4K, finished DVRs, non-DVRs and accessories and are stated at the lower of cost or net realizable value on an aggregate basis. Cost is computed using standard cost, which approximates actual cost on a first-in, first-out basis. Adjustments to reduce the carrying amount of inventory to the lower of cost or net realizable value are made, if required, for excess or obsolete goods, which includes a review of, among other factors, demand requirements and market conditions.
Business Combinations

Business Combinations

The Company accounts for business combinations using the acquisition method of accounting in accordance with ASC 805, “Business Combinations.” Identifiable assets acquired and liabilities assumed are recorded at their acquisition date fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. Acquisition related costs are expensed as incurred. Upon acquisition, the accounts and results of operations are consolidated as of and subsequent to the acquisition date.

When determining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect to intangible assets. The Company utilizes commonly accepted valuation techniques, such as the income approach and the cost approach, as appropriate, in establishing the fair value of intangible assets. Typically, key assumptions include projections of cash flows that arise from identifiable intangible assets of acquired businesses as well as discount rates based on an analysis of the weighted average cost of capital, adjusted for specific risks associated with the assets. See “Note 9 – Business Combinations” for additional detail.
Goodwill and Identified Intangible Assets

Goodwill and Identified Intangible Assets

Goodwill. Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the net tangible and identified intangible assets acquired under a business combination. Goodwill also includes acquired assembled workforce, which does not qualify as an identifiable intangible asset. The Company reviews impairment of goodwill annually as of the beginning of the fourth quarter, or more frequently if events or circumstances indicate that the goodwill might be impaired. Triggering events for impairment reviews may be indicators such as adverse industry or economic trends, restructuring actions, lower projections of profitability, or a sustained decline in the Company's market capitalization. The Company first assesses qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test. If, after assessing the totality of events or circumstances, the Company determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the quantitative goodwill impairment test is unnecessary.

If, based on the qualitative assessment, it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the Company proceeds to perform the quantitative goodwill impairment test. The Company first determines the fair value of a reporting unit using the market capitalization approach to determine the fair value of a reporting unit. Under the market capitalization approach, the fair value of a reporting unit is estimated based on the trading price of the Company's stock as of the test date, or trading prices over a short period of time immediately prior to the test date if such prices more reasonably represent the estimated fair value as of the test date, which is further adjusted by a control premium representing the synergies a market participant would achieve when obtaining control of the business. The Company then compares the derived fair value of a reporting unit with its carrying amount. If the carrying value of a reporting unit

exceeds its fair value, an impairment loss will be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit.

Identified intangible assets. Identified finite-lived intangible assets consist of acquired patents, existing technology, customer relationships, trademarks and trade names, non-compete agreements resulting from business combinations, and acquired patents under asset purchase agreements. The Company’s identified intangible assets are amortized on a straight-line basis over their estimated useful lives, ranging from 1 to 10 years. The Company makes judgments about the recoverability of finite-lived intangible assets whenever facts and circumstances indicate that the useful life is shorter than originally estimated or that the carrying amount of assets may not be recoverable. If such facts and circumstances exist, the Company assesses recoverability by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their remaining lives against their respective carrying amounts. Impairments, if any, are based on the excess of the carrying amount over the fair value of those assets. If the useful life is shorter than originally estimated, the Company would accelerate the rate of amortization and amortize the remaining carrying value over the new shorter useful life.

Identified indefinite-lived intangible assets include TiVo tradenames and trademarks resulting from business combinations. The Company evaluates the carrying value of indefinite-lived intangible assets on an annual basis, and an impairment charge would be recognized to the extent that the carrying amount of such assets exceeds their estimated fair value.

For further discussion of goodwill and identified intangible assets, see “Note 10 – Goodwill and Identified Intangible Assets.”
Leases

Leases

The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, accrued liabilities, and noncurrent operating lease liabilities in the Company’s consolidated balance sheets. The ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the leases do not provide an implicit rate, the Company generally uses its incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The Company’s lease terms may include options to extend or terminate the lease, and these terms are factored into the valuation of ROU assets and liabilities when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. As a practical expedient, the Company elected, for all office and facility leases, not to separate non-lease components from lease components and instead to account for each separate lease component and its associated non-lease components as a single lease component. For additional information regarding the Company's leases, refer to “Note 8 – Leases.”
Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

The Company reviews long-lived assets, including property and equipment and intangible assets, for possible impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. Such events and changes may include: a significant decrease in market value, changes in asset use, negative industry or economic trends, and changes in the Company’s business strategy. The Company measures recoverability of these assets by comparing the carrying amounts to the future undiscounted cash flows that the assets or the asset group are expected to generate. If the carrying value of the assets is not recoverable, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the assets. During the year ended December 31, 2022, the Company recognized impairment charges of $7.7 million on fixed assets and operating lease ROU assets for which the carrying amount exceeded the fair value for certain leased office building. Refer to “Note 8 – Leases” for detailed impairment discussions.
Research and Development

Research and Development

Research and development costs are comprised primarily of employee-related costs, stock-based compensation expense, engineering consulting expenses associated with new product and technology development, product commercialization, quality assurance and testing costs, as well as costs related to information technology, patent applications and examinations, materials, supplies, and an allocation of facilities costs. All research and development costs are expensed as incurred.
Stock-based Compensation

Stock-based Compensation

Prior to the Separation, certain Company employees participated in the Former Parent’s stock-based compensation programs. Stock-based compensation expense has been attributed to the Company based on the awards and terms previously granted to

the Company’s direct employees, as well as an allocation of the Former Parent’s corporate and shared functional employee expenses.

Stock-based compensation is measured at the grant date based on the estimated fair value of the award and is recognized as expense on a straight-line basis, net of estimated forfeitures, over the requisite service or performance period. Forfeiture rates are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. If the actual forfeiture rate is materially different from the estimate, stock-based compensation expense could be significantly different from what was recorded in the current period.

The Company uses the closing trading price of its common stock on the date of grant as the fair value of awards of restricted stock units (“RSUs”), and performance-based restricted stock units (“PSUs”) that are based on company-designated performance targets. For PSUs that are based on market conditions, or market-based PSUs, fair value is estimated by using a Monte Carlo simulation on the date of grant. The Company estimates the grant-date fair value of stock options and stock to be issued under the employee stock purchase plan (“ESPP”) using the Black-Scholes pricing model. See “Note 14 – Stock-based Compensation” for additional detail.
Income Taxes

Income Taxes

Prior to the Separation, the Company’s operations were included in the tax returns filed by the respective Former Parent entities of which the Company’s businesses were a part. Income tax expense and other income tax-related information contained in these Consolidated Financial Statements are presented on a separate return basis as if the Company had filed its own tax returns. The separate return method applies the accounting guidance for income taxes to the Company’s standalone financial statements as if it were a separate taxpayer and a standalone enterprise for the periods presented. The income tax expense (benefit) recorded for the three month period ended December 31, 2022 is presented as if activity from this period would have been included in the same separate return as the nine months of activity through the date of Separation. Current income tax liabilities related to entities which file jointly with the Former Parent are assumed to be immediately settled with the Former Parent and are relieved through the Net Investment by Former Parent and are presented in Net transfers from and to Former Parent in the Consolidated Statements of Cash Flows.

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amount of assets and liabilities and their respective tax bases and operating loss and tax carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates applicable to the years in which those temporary differences are expected to reverse. A valuation allowance is recorded to reduce deferred tax assets to the amount that is more likely than not to be realized.

From time to time, the Company engages in transactions in which the tax consequences may be subject to uncertainty. Significant judgment is required in assessing and estimating the tax consequences of these transactions. Accruals for unrecognized tax benefit liabilities, which represent the difference between a tax position taken or expected to be taken in a tax return and the benefit recognized for financial reporting purposes, are recorded when the Company believes it is not more-likely-than-not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. Adjustments to unrecognized tax benefits are recognized when facts and circumstances change, such as the closing of a tax audit, notice of an assessment by a taxing authority or the refinement of an estimate. Income tax benefit includes the effects of adjustments to unrecognized tax benefits, as well as any related interest and penalties.
Advertising Costs

Advertising Costs

Advertising costs are expensed as incurred and are presented within selling, general and administrative expense in the Consolidated Statements of Operations. Advertising expenses for the years ended December 31, 2022, 2021 and 2020, were $5.5 million, $9.1 million and $11.3 million, respectively.
Contingencies

Contingencies

From time to time, the Company may be involved in legal and administrative proceedings and claims of various types. The Company records a liability in its consolidated financial statements for these matters when a loss is known or considered probable and the amount can be reasonably estimated. Management reviews these estimates in each accounting period as additional information becomes known and adjusts the loss provision when appropriate. If the loss is not probable or cannot be reasonably estimated, a liability is not recorded in the consolidated financial statements. If a loss is probable but the amount of loss cannot be reasonably estimated, the Company discloses the loss contingency and an estimate of possible loss or range of

loss (unless such an estimate cannot be made). The Company does not recognize gain contingencies until they are realized. Legal costs incurred in connection with loss contingencies are expensed as incurred.

Property and Equipment

Property and Equipment

Property and equipment are recorded at cost, less accumulated depreciation. Depreciation is calculated using the straight-line method over the related assets’ estimated useful lives:

Equipment, furniture and other

 

1 to 5 years

Leasehold improvements

 

Lesser of related lease term or 5 years

Building and improvements

 

Up to 30 years

Expenditures that materially increase asset life are capitalized, while ordinary maintenance and repairs are expensed as incurred.
Foreign Currency Translation and Transactions

Foreign Currency Translation and Transactions

The Company predominantly uses the U.S. dollar as its functional currency. Certain non-U.S. subsidiaries designate a local currency as their functional currency. The translation of assets and liabilities into U.S. dollars for subsidiaries with a functional currency other than the U.S. dollar is performed using exchange rates in effect at the balance sheet date. The translation of revenues and expenses into U.S. dollars for subsidiaries with a functional currency other than the U.S. dollar is performed using the average exchange rate for the respective period. Gains or losses from cumulative translation adjustments, net of tax, are included as a component of accumulated other comprehensive loss in the Consolidated Balance Sheets. The Company records net foreign exchange transaction gains and losses resulting from the conversion of the transaction currency to the functional currency within other income and expense, net.
Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In October 2021, the FASB issued ASU 2021-08, “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” (“ASU 2021-08”), which amends the guidance in ASC 805 to require that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Revenue from Contracts with Customers (“Topic 606”). As a result of the amendments, it is expected that an acquirer will generally recognize and measure acquired contract assets and contract liabilities in a manner consistent with how the acquiree recognized and measured them in its preacquisition financial statements. ASU 2021-08 is effective for public business entities for fiscal years beginning after December 15, 2022. Early adoption is permitted. The Company elected to early adopt the new standard on January 1, 2022. The adoption did not have an impact on the Company’s consolidated financial statements.
v3.22.4
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Schedule of Estimated Useful Life

Property and equipment are recorded at cost, less accumulated depreciation. Depreciation is calculated using the straight-line method over the related assets’ estimated useful lives:

Equipment, furniture and other

 

1 to 5 years

Leasehold improvements

 

Lesser of related lease term or 5 years

Building and improvements

 

Up to 30 years
v3.22.4
Revenue (Tables)
 12 Months Ended
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]  
Schedule of Revenue Disaggregated by Product Category and Market

Revenue disaggregated by product category was as follows (in thousands):

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Pay-TV

 

$

249,457

 

 

$

262,929

 

 

$

164,865

 

Consumer Electronics

 

 

128,395

 

 

 

99,529

 

 

 

111,726

 

Connected Car

 

 

84,201

 

 

 

88,306

 

 

 

79,021

 

Media Platform

 

 

40,207

 

 

 

35,719

 

 

 

20,489

 

Total revenue

 

$

502,260

 

 

$

486,483

 

 

$

376,101

 
Schedule of Geographic Revenue Information The following table presents the Company’s revenue disaggregated by geographic area (in thousands):

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

U.S.

 

$

278,920

 

 

 

56

%

 

$

249,537

 

 

 

51

%

 

$

182,492

 

 

 

49

%

Japan

 

 

65,551

 

 

 

13

 

 

 

70,956

 

 

 

15

 

 

 

60,349

 

 

 

16

 

China

 

 

30,932

 

 

 

6

 

 

 

18,027

 

 

 

4

 

 

 

21,685

 

 

 

6

 

Europe and Middle East

 

 

42,846

 

 

 

9

 

 

 

56,317

 

 

 

12

 

 

 

36,352

 

 

 

10

 

South Korea

 

 

27,870

 

 

 

5

 

 

 

38,801

 

 

 

7

 

 

 

32,101

 

 

 

8

 

Other

 

 

56,141

 

 

 

11

 

 

 

52,845

 

 

 

11

 

 

 

43,122

 

 

 

11

 

 

 

$

502,260

 

 

 

100

%

 

$

486,483

 

 

 

100

%

 

$

376,101

 

 

 

100

%
Schedule of Contract Assets

Contract assets were recorded in the Consolidated Balance Sheets as follows (in thousands):

 

 

December 31, 2022

 

 

December 31,
2021

 

Unbilled contracts receivable

 

$

65,251

 

 

$

50,962

 

Other current assets

 

 

848

 

 

 

724

 

Long-term unbilled contracts receivable

 

 

4,289

 

 

 

3,825

 

Other long-term assets

 

 

978

 

 

 

1,043

 

Total contract assets

 

$

71,366

 

 

$

56,554

 
Schedule of Allowance for Credit Losses

The following table presents the activity in the allowance for credit losses for the years ended December 31, 2022, 2021 and 2020 (in thousands):

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

 

 

Accounts Receivable

 

 

Unbilled Contracts Receivable

 

 

Accounts Receivable

 

 

Unbilled Contracts Receivable

 

 

Accounts Receivable

 

 

Unbilled Contracts Receivable

 

Beginning balance

 

$

2,255

 

 

$

468

 

 

$

6,454

 

 

$

1,414

 

 

$

566

 

 

$

—

 

Provision for credit losses

 

 

799

 

 

 

(99

)

 

 

714

 

 

 

38

 

 

 

6,406

 

 

 

1,414

 

Recoveries/charge-off

 

 

(1,104

)

 

 

—

 

 

 

(4,913

)

 

 

(984

)

 

 

(518

)

 

 

—

 

Balance at end of period

 

$

1,950

 

 

$

369

 

 

$

2,255

 

 

$

468

 

 

$

6,454

 

 

$

1,414

 
Schedule of Revenue Recognized in Period

The following table presents additional revenue and contract disclosures (in thousands):

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Revenue recognized in the period from:

 

 

 

 

 

 

 

 

 

Amounts included in deferred revenue at the beginning of the period

 

$

19,713

 

 

$

23,863

 

 

$

720

 

Amounts included in deferred revenue acquired from the Mergers

 

$

—

 

 

$

—

 

 

$

19,367

 

Performance obligations satisfied in previous periods (true
ups, licensee reporting adjustments and settlements) (1)

 

$

30,561

 

(2)

$

8,772

 

 

$

13,138

 

 

(1)
True ups represent the differences between the Company’s quarterly estimates of per-unit royalty revenue and actual production/sales-based royalties reported by licensees in the following period. Licensee reporting adjustments represent corrections or revisions to previously reported per-unit royalties by licensees, generally resulting from the Company’s inquiries or compliance audits. Settlements represent resolutions of litigation during the period for past royalties owed.
(2)
Amount includes past royalty revenue from the settlement of a contract dispute with a large mobile imaging customer, and the execution of a long-term license agreement with a leading consumer electronics and over-the-top (“OTT”) service provider. The long-term license agreement is effective as of the expiration of the prior agreement. The Company recorded revenue from both the settlement and the license agreement, referred to above, in the second quarter of 2022 and expects to record revenue from the license agreement in future periods.
Schedule of Remaining Performance Obligations

 

 

December 31,

 

 

 

2022

 

Revenue from contracts with performance obligations expected to be satisfied in:

 

 

 

2023

 

 

57,610

 

2024

 

 

28,055

 

2025

 

 

15,910

 

2026

 

 

5,024

 

2027

 

 

1,024

 

Thereafter

 

 

280

 

Total

 

$

107,903

 
v3.22.4
Composition Of Certain Financial Statement Captions (Tables)
 12 Months Ended
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Other Current Assets

Other current assets consisted of the following (in thousands):

 

 

December 31,

 

 

 

2022

 

 

2021

 

Prepaid Income Tax

 

$

1,777

 

 

$

1,141

 

Prepaid expenses

 

 

20,001

 

 

 

15,283

 

Inventory

 

 

6,662

 

 

 

5,102

 

Other

 

 

13,734

 

 

 

4,459

 

 

 

$

42,174

 

 

$

25,985

 
Schedule of Property and Equipment, Net

Property and equipment, net consisted of the following (in thousands):

 

 

December 31,

 

 

 

2022

 

 

 

2021

 

Equipment, furniture and other

 

$

78,976

 

 

 

$

64,236

 

Building and improvements

 

 

18,331

 

 

 

 

18,331

 

Land

 

 

5,300

 

 

 

 

5,300

 

Leasehold improvements

 

 

17,038

 

 

(1

)

 

22,064

 

Property and equipment, gross

 

 

119,645

 

 

 

 

109,931

 

Less: Accumulated depreciation and amortization

 

 

(71,818

)

 

(1

)

 

(52,454

)

 

 

$

47,827

 

 

 

$

57,477

 

(1) Reflects an impairment charge of $2.9 million ($4.8 million in gross cost and $1.9 million in accumulated depreciation). Refer to “Note 8 – Leases” for details.
Schedule of Property and Equipment, Net by Geographic Area

Property and equipment, net by geographic area was as follows (in thousands):

 

 

December 31,

 

 

 

2022

2021

 

U.S.

 

$

42,487

 

 

$

51,306

 

Europe

 

 

3,460

 

 

 

3,697

 

Asia and other

 

 

1,880

 

 

 

2,474

 

 

 

$

47,827

 

 

$

57,477

 
Schedule of Accrued Liabilities

Accrued liabilities consisted of the following (in thousands):

 

 

December 31,

 

 

 

2022

 

 

2021

 

Employee compensation and benefits

 

$

53,546

 

 

$

33,685

 

Third-party royalties

 

 

7,620

 

 

 

4,428

 

Accrued expenses

 

 

22,928

 

 

 

21,147

 

Current portion of operating lease liabilities

 

 

17,195

 

 

 

14,725

 

Accrued income tax

 

 

4,926

 

 

 

2,055

 

Other

 

 

3,799

 

 

 

8,364

 

 

 

$

110,014

 

 

$

84,404

 
Schedule of Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive loss consisted of the following (in thousands):

 

 

December 31,

 

 

 

2022

 

 

2021

 

Foreign currency translation adjustment, net of tax

 

$

(4,025

)

 

$

(676

)

Unrealized hedging losses, net of tax

 

 

(94

)

 

 

—

 

 

 

$

(4,119

)

 

$

(676

)
v3.22.4
Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]  
Schedule of Notional and Fair Values of All Derivative Instruments

The notional and fair values of all derivative instruments were as follows (in thousands):

Derivative instruments in cash flow hedges (foreign exchange contracts)

 

December 31, 2022

 

 

December 31, 2021

 

Liabilities

 

 

 

 

 

 

Accrued liabilities

 

$

94

 

 

$

—

 

Total fair value

 

$

94

 

 

$

—

 

Total notional value

 

$

52,197

 

 

$

—

 

Undesignated derivative instruments (foreign exchange contracts)

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

Accrued liabilities

 

$

41

 

 

$

—

 

Total fair value

 

$

41

 

 

$

—

 

Total notional value

 

$

7,402

 

 

$

—

 
v3.22.4
Fair Value (Tables)
 12 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
Schedule of Carrying Amounts and Estimated Fair Values The carrying amounts and estimated fair values are as follows (in thousands):

 

 

December 31, 2022

 

 

December 31, 2021

 

 

 

Carrying
Amount

 

 

Estimated Fair
Value

 

 

Carrying
Amount

 

 

Estimated Fair
Value

 

Senior Unsecured Promissory Note (1)

 

$

50,000

 

 

$

48,478

 

 

$

—

 

 

$

—

 

(1) See “Note 11 – Debt” for additional information.
v3.22.4
Leases (Tables)
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Schedule of Operating Lease Costs

The components of operating lease costs were as follows (in thousands):

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Fixed lease cost (1)

 

$

20,581

 

 

$

20,619

 

 

$

14,296

 

Variable lease cost

 

 

5,365

 

 

 

5,030

 

 

 

2,918

 

Less: sublease income

 

 

(9,498

)

 

 

(9,724

)

 

 

(5,423

)

Total operating lease cost

 

$

16,448

 

 

$

15,925

 

 

$

11,791

 

 

(1)
Includes short-term leases costs, which were immaterial.
Schedule of Other Information Related to Leases

Other information related to leases was as follows (in thousands, except lease term and discount rate):

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

$

20,307

 

 

$

20,826

 

 

$

14,514

 

ROU assets obtained in exchange for new lease liabilities:

 

 

 

 

 

 

 

 

 

Operating leases

 

$

14,360

 

 

$

6,131

 

 

$

5,684

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,
2022

 

 

December 31,
2021

 

 

December 31,
2020

 

Weighted-average remaining lease term (years):

 

 

 

 

 

 

 

 

 

Operating leases

 

3.69

 

 

4.48

 

 

 

5.20

 

Weighted-average discount rate:

 

 

 

 

 

 

 

 

 

Operating leases

 

 

5.1

%

 

 

4.9

%

 

 

5.1

%
Schedule of Future Minimum Lease Payments and Related Lease Liabilities

Future minimum lease payments and related lease liabilities as of December 31, 2022 were as follows (in thousands):

 

 

Operating Lease Payments (1)

 

 

Sublease Income

 

 

Net Operating Lease Payments

 

2023

 

 

19,897

 

 

 

(7,618

)

 

 

12,279

 

2024

 

 

18,320

 

 

 

(7,610

)

 

 

10,710

 

2025

 

 

15,810

 

 

 

(7,386

)

 

 

8,424

 

2026

 

 

7,867

 

 

 

(935

)

 

 

6,932

 

2027

 

 

2,711

 

 

 

—

 

 

 

2,711

 

Thereafter

 

 

1,473

 

 

 

—

 

 

 

1,473

 

Total lease payments

 

 

66,078

 

 

 

(23,549

)

 

 

42,529

 

Less: imputed interest

 

 

(6,217

)

 

 

—

 

 

 

(6,217

)

Present value of lease liabilities:

 

$

59,861

 

 

$

(23,549

)

 

$

36,312

 

 

 

 

 

 

 

 

 

 

 

Less: current obligations under leases (accrued liabilities)

 

 

(17,195

)

 

 

 

 

 

 

Noncurrent operating lease liabilities

 

$

42,666

 

 

 

 

 

 

 
(1)
Future minimum lease payments exclude short-term leases as well as payments to landlords for variable common area maintenance, insurance and real estate taxes.
v3.22.4
Business Combinations (Tables)
 12 Months Ended
Dec. 31, 2022
MobiTV  
Business Acquisition [Line Items]  
Schedule of Estimated Fair Value that Allocated to Assets and Liabilities The following table sets forth the final purchase price allocation with no measurement period adjustments identified ($ in thousands):

 

 

Estimated Useful
 Life (years)

 

Estimated
Fair Value

 

Other current assets

 

 

 

$

390

 

Property and equipment

 

 

 

 

9,223

 

Operating lease right-of-use assets

 

 

 

 

1,186

 

Identifiable intangible assets: Technology

 

6

 

 

3,260

 

Goodwill

 

 

 

 

4,059

 

Other long-term assets

 

 

 

 

115

 

Accrued liabilities

 

 

 

 

(5,288

)

Noncurrent operating lease liabilities

 

 

 

 

(545

)

Total purchase price

 

 

 

$

12,400

 
Schedule of Unaudited Pro Forma Financial Information The pro forma operating results are as follows (unaudited, in thousands):

 

 

Years Ended December 31,

 

 

 

2021

 

 

2020

 

Revenue

 

$

490,343

 

 

$

383,262

 

Net loss attributable to the Company

 

$

(191,125

)

 

$

(179,365

)
Vewd  
Business Acquisition [Line Items]  
Schedule of Estimated Fair Value that Allocated to Assets and Liabilities The following table presents the preliminary allocation of the purchase price to the identifiable assets acquired and liabilities assumed based on the fair values at the acquisition date ($ in thousands):

 

 

Estimated
Useful
Life (years)

 

 

 

 

 

Estimated
Fair Value

 

Cash and cash equivalents

 

 

 

 

 

 

 

$

2,684

 

Accounts receivable

 

 

 

 

 

 

 

 

3,341

 

Unbilled contracts receivable

 

 

 

 

 

 

 

 

2,335

 

Other current assets

 

 

 

 

 

 

 

 

1,208

 

Property and equipment

 

 

 

 

 

 

 

 

443

 

Operating lease right-of-use assets

 

 

 

 

 

 

 

 

2,020

 

Identifiable intangible assets:

 

 

 

 

 

 

 

 

 

Technology

 

7

 

 

 

28,050

 

 

 

 

Customer relationships - large

 

7

 

 

 

4,900

 

 

 

 

Customer relationships - small

 

4

 

 

 

3,500

 

 

 

 

Non-compete agreements

 

2

 

 

 

870

 

 

 

 

Trade name

 

 

5

 

 

 

830

 

 

 

 

Total identifiable intangible assets

 

 

 

 

 

 

 

 

38,150

 

Goodwill

 

 

 

 

 

 

 

 

68,115

 

Other long-term assets

 

 

 

 

 

 

 

 

977

 

Accounts payable

 

 

 

 

 

 

 

 

(869

)

Accrued liabilities

 

 

 

 

 

 

 

 

(4,777

)

Deferred revenue

 

 

 

 

 

 

 

 

(920

)

Long-term deferred tax liabilities

 

 

 

 

 

 

 

 

(8,393

)

Noncurrent operating lease liabilities

 

 

 

 

 

 

 

 

(1,094

)

Other long-term liabilities

 

 

 

 

 

 

 

 

(307

)

Total preliminary purchase price

 

 

 

 

 

 

 

$

102,913

 
Schedule of Unaudited Pro Forma Financial Information The pro forma operating results are as follows (unaudited, in thousands):

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

Revenue

 

$

508,636

 

 

$

498,992

 

Net loss attributable to the Company

 

$

(769,483

)

 

$

(209,690

)
v3.22.4
Goodwill and Identified Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Summary of Changes to Carrying Value of Goodwill

The changes to the carrying value of goodwill from January 1, 2021 through December 31, 2022 are reflected below (in thousands):

December 31, 2020

 

$

532,453

 

Goodwill acquired through the MobiTV Acquisition

 

 

4,059

 

December 31, 2021

 

 

536,512

 

Goodwill adjustment related to Mergers in prior periods (1)

 

 

(72

)

Goodwill acquired through the Vewd Acquisition (2)

 

 

68,115

 

Impairment charge, three months ended September 30, 2022 (3)

 

 

(354,000

)

Impairment charge, three months ended December 31, 2022 (4)

 

 

(250,555

)

December 31, 2022

 

$

—

 

(1) Related to an immaterial measurement period adjustment.

(2) Related to the Vewd Acquisition completed in July 2022. For more information regarding the transaction, see “Note 9 - Business Combinations.”

(3) See discussion below.

(4) See discussion below.
Identified Intangible Assets

Identified intangible assets consisted of the following (in thousands):

 

 

 

 

December 31, 2022

 

 

December 31, 2021

 

 

 

Average
Life
(Years)

 

Gross
Assets

 

 

Accumulated
Amortization

 

 

Net

 

 

Gross
Assets

 

 

Accumulated
Amortization

 

 

Net

 

Finite-lived intangible assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquired patents / core technology

 

3-10

 

$

22,189

 

 

$

(6,175

)

 

$

16,014

 

 

$

5,258

 

 

$

(5,215

)

 

$

43

 

Existing technology / content database

 

5-10

 

 

240,894

 

 

 

(190,671

)

 

 

50,223

 

 

 

212,765

 

 

 

(173,420

)

 

 

39,345

 

Customer contracts and related relationships

 

3-9

 

 

502,188

 

 

 

(335,981

)

 

 

166,207

 

 

 

494,026

 

 

 

(297,867

)

 

 

196,159

 

Trademarks/trade name

 

4-10

 

 

39,613

 

 

 

(29,733

)

 

 

9,880

 

 

 

38,783

 

 

 

(24,796

)

 

 

13,987

 

Non-competition agreements

 

1-2

 

 

3,101

 

 

 

(2,449

)

 

 

652

 

 

 

2,231

 

 

 

(2,231

)

 

 

—

 

Total finite-lived intangible assets

 

 

 

 

807,985

 

 

 

(565,009

)

 

 

242,976

 

 

 

753,063

 

 

 

(503,529

)

 

 

249,534

 

Indefinite-lived intangible assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TiVo tradename/trademarks

 

N/A

 

 

21,400

 

 

 

—

 

 

 

21,400

 

 

 

21,400

 

 

 

—

 

 

 

21,400

 

Total intangible assets

 

 

 

$

829,385

 

 

$

(565,009

)

 

$

264,376

 

 

$

774,463

 

 

$

(503,529

)

 

$

270,934

 
Estimated Future Amortization Expense

As of December 31, 2022, the estimated future amortization expense of finite-lived intangible assets was as follows (in thousands):

2023

 

$

57,775

 

2024

 

 

43,374

 

2025

 

 

34,757

 

2026

 

 

31,480

 

2027

 

 

30,637

 

Thereafter

 

 

44,953

 

 

 

$

242,976

 
v3.22.4
Debt (Tables)
 12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
Summarize of Future Minimum Principal Payments for the Promissory Note

As of December 31, 2022, future minimum principal payments for the Promissory Note are summarized as follows (in thousands):

2023

 

$

—

 

2024

 

 

—

 

2025

 

 

50,000

 

2026

 

 

—

 

2027

 

 

—

 

Thereafter

 

 

—

 

Total

 

$

50,000

 
v3.22.4
Net Loss Per Share (Tables)
 12 Months Ended
Dec. 31, 2022
Earnings Per Share [Abstract]  
Computation of Basic and Diluted Net Loss Per Share

The following table sets forth the computation of basic and diluted shares (in thousands):

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Denominator:

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

42,029

 

 

 

42,024

 

 

 

42,024

 

Total common shares-basic

 

 

42,029

 

 

 

42,024

 

 

 

42,024

 

Effect of dilutive securities:

 

 

 

 

 

 

 

 

 

Options

 

 

—

 

 

 

—

 

 

 

—

 

Restricted stock awards and units

 

 

—

 

 

 

—

 

 

 

—

 

Total common shares-diluted

 

 

42,029

 

 

 

42,024

 

 

 

42,024

 
Schedule of Potentially Dilutive Shares Were Excluded From Calculation of Diluted Net Loss Per Share

The following potentially dilutive shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the period presented (in thousands):

 

 

Year Ended

 

 

 

December 31, 2022

 

Options

 

 

146

 

Restricted stock awards and units

 

 

4,604

 
v3.22.4
Stockholders' Equity (Tables)
 12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Summary of Stock Option Activity

The following table provides the Company’s stock option activity from the Separation date to December 31, 2022 (in thousands, except per share amounts):

 

 

Options Outstanding

 

 

 

Number of
Shares Subject
to Options

 

 

Weighted
Average
Exercise
Price Per
Share

 

 

Weighted
Average
Remaining
Contractual
Life (in years)

 

 

Aggregate
Intrinsic Value

 

Balance at December 31, 2021

 

 

—

 

 

$

—

 

 

 

 

 

 

 

Converted from Former Parent in connection with the Spin-Off (1)

 

 

148

 

 

$

25.52

 

 

 

 

 

 

 

Options granted

 

 

—

 

 

$

—

 

 

 

 

 

 

 

Options exercised

 

 

—

 

 

$

—

 

 

 

 

 

 

 

Options canceled / forfeited / expired

 

 

(2

)

 

$

29.16

 

 

 

 

 

 

 

Balance at December 31, 2022

 

 

146

 

 

$

25.48

 

 

 

1.89

 

 

$

—

 

Vested and expected to vest at December 31, 2022

 

 

146

 

 

 

25.48

 

 

 

1.89

 

 

$

—

 

Exercisable at December 31, 2022

 

 

146

 

 

 

25.48

 

 

 

1.89

 

 

$

—

 

(1) Amounts represent Xperi awards, including those held by Adeia employees.
Summary of Stock Options Outstanding and Exercisable

The following table summarizes information about stock options outstanding and exercisable under the 2022 EIP at December 31, 2022:

 

 

Options Outstanding

 

 

Options Exercisable

 

Range of Exercise
Prices per Share

 

Number
Outstanding
(in thousands)

 

 

Weighted
Average
Remaining
Contractual
Life (in years)

 

 

Weighted
Average
Exercise Price
per Share

 

 

Number
Exercisable
(in thousands)

 

 

Weighted
Average
Exercise Price
per Share

 

$17.68 - $21.26

 

 

50

 

 

 

0.71

 

 

$

20.87

 

 

 

50

 

 

$

20.87

 

$21.64 - $24.68

 

 

63

 

 

 

2.67

 

 

$

23.43

 

 

 

63

 

 

$

23.43

 

$24.75 - $56.62

 

 

33

 

 

 

2.20

 

 

$

36.46

 

 

 

33

 

 

$

36.46

 

$17.68 - $56.62

 

 

146

 

 

 

1.89

 

 

$

25.48

 

 

 

146

 

 

$

25.48

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Summary of Restricted Stock Awards and Units

Information with respect to outstanding Xperi restricted stock awards and units (including both time-based vesting and performance-based vesting) as of December 31, 2022 is as follows (in thousands, except per share amounts):

 

 

Restricted Stock and Restricted Stock Units

 

 

 

Number of Shares
Subject to Time-
based Vesting

 

 

Number of Shares
Subject to
Performance-
based Vesting

 

 

Total Number
of Shares

 

 

Weighted Average
Grant Date Fair
Value Per Share

 

Balance at December 31, 2021

 

 

—

 

 

 

—

 

 

 

—

 

 

$

—

 

Converted from Former Parent (1)

 

 

3,245

 

 

 

875

 

 

 

4,120

 

 

$

21.69

 

Awards and units granted

 

 

568

 

 

 

16

 

 

 

584

 

 

$

10.79

 

Awards and units vested / earned

 

 

(68

)

 

 

—

 

 

 

(68

)

 

$

19.55

 

Awards and units canceled / forfeited

 

 

(32

)

 

 

—

 

 

 

(32

)

 

$

18.99

 

Balance at December 31, 2022

 

 

3,713

 

 

 

891

 

 

 

4,604

 

 

 

20.35

 

(1) Amounts represent Xperi awards, including those held by Adeia employees.
v3.22.4
Stock-Based Compensation Expense (Tables)
 12 Months Ended
Dec. 31, 2022
Effect of Recording Stock-Based Compensation Expense

The effect of recording stock-based compensation expense for the years ended December 31, 2022, 2021 and 2020 is as follows (in thousands):

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Cost of revenue, excluding depreciation and amortization of intangible assets

 

$

2,906

 

 

$

1,972

 

 

$

585

 

Research and development

 

 

21,561

 

 

 

17,914

 

 

 

11,383

 

Selling, general and administrative

 

 

20,836

 

 

 

13,623

 

 

 

7,215

 

Total stock-based compensation expense

 

 

45,303

 

 

 

33,509

 

 

 

19,183

 

Tax effect on stock-based compensation expense

 

 

(139

)

 

 

(225

)

 

 

(1,377

)

Net effect on net loss

 

$

45,164

 

 

$

33,284

 

 

$

17,806

 
Stock-Based Compensation Expense Categorized by Equity Components

Stock-based compensation expense categorized by various equity components for the years ended December 31, 2022, 2021 and 2020 is summarized in the table below (in thousands):

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Restricted stock awards and units

 

$

42,208

 

 

$

30,015

 

 

$

17,867

 

Employee stock purchase plan

 

 

2,727

 

 

 

3,428

 

 

 

1,281

 

Employee stock options

 

 

368

 

 

 

66

 

 

 

35

 

Total stock-based compensation expense

 

$

45,303

 

 

$

33,509

 

 

$

19,183

 
Employee Stock Purchase Plan  
Schedule of Assumptions Used to Value Awards Granted

The following assumptions were used to value Xperi’s ESPP shares offered post-Separation during the year ended December 31, 2022:

 

 

Year Ended December 31,

 

 

 

2022

 

Expected life (in years)

 

 

2.0

 

Risk-free interest rate

 

 

4.3

%

Dividend yield

 

 

0.0

%

Expected volatility

 

 

42.9

%

Prior to the Separation, the valuation assumptions were determined by the Former Parent.

The following assumptions were used to value the Former Parent’s ESPP shares granted to employees specifically identifiable to Xperi in the years ended 2022, 2021 and 2020:

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Expected life (in years)

 

 

2.0

 

 

 

2.0

 

 

 

2.0

 

Risk-free interest rate

 

 

1.3

%

 

0.1 - 0.2%

 

 

1.0 - 1.4%

 

Dividend yield

 

 

1.1

%

 

0.9 - 1.2%

 

 

1.4 - 4.0%

 

Expected volatility

 

 

48.5

%

 

52.0 - 52.0%

 

 

45.8 - 57.5%

 
Performance Stock Units  
Schedule of Assumptions Used to Value Awards Granted 2020:

 

 

Years Ended December 31,

 

 

 

April 2022

 

 

March 2021

 

 

July 2020

 

Expected life (years)

 

 

3.0

 

 

 

3.0

 

 

 

3.0

 

Risk-free interest rate

 

2.8%

 

 

0.3%

 

 

0.2%

 

Dividend yield

 

1.2%

 

 

1.0%

 

 

1.4%

 

Expected volatility

 

40.9%

 

 

47.9%

 

 

51.3%

 
v3.22.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Components of Total Loss Before Income Taxes

The components of total loss before taxes are as follows (in thousands):

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

U.S.

 

$

(667,612

)

 

$

(123,201

)

 

$

(143,623

)

Foreign

 

 

(80,005

)

 

 

(37,037

)

 

 

(7,405

)

Total loss before taxes from continuing operations

 

$

(747,617

)

 

$

(160,238

)

 

$

(151,028

)
Summary of Provision for (Benefit from) Income Taxes

The provision for (benefit from) income taxes consisted of the following (in thousands):

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Current:

 

 

 

 

 

 

 

 

 

U.S. federal

 

$

—

 

 

$

—

 

 

$

203

 

Foreign

 

 

21,252

 

 

 

12,531

 

 

 

8,865

 

State and local

 

 

1,723

 

 

 

(604

)

 

 

1,454

 

Total current

 

 

22,975

 

 

 

11,927

 

 

 

10,522

 

Deferred:

 

 

 

 

 

 

 

 

 

U.S. federal

 

 

(5,431

)

 

 

1,215

 

 

 

(17,811

)

Foreign

 

 

(3,871

)

 

 

7,116

 

 

 

(699

)

State and local

 

 

(84

)

 

 

(1,418

)

 

 

(1,747

)

Total deferred

 

 

(9,386

)

 

 

6,913

 

 

 

(20,257

)

Provision for (benefit from) income taxes

 

$

13,589

 

 

$

18,840

 

 

$

(9,735

)
Component of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):

 

 

December 31,

 

 

 

2022

 

 

2021

 

Deferred tax assets

 

 

 

 

 

 

Net operating losses

 

$

19,477

 

 

$

29,786

 

Research credits

 

 

6,791

 

 

 

7,446

 

Foreign tax credits

 

 

2,119

 

 

 

3,858

 

Accrued expenses

 

 

27,987

 

 

 

25,407

 

Basis difference in fixed and intangible assets

 

 

16,290

 

 

 

14,276

 

Deferred revenue

 

 

9,556

 

 

 

12,425

 

Capitalized R&D

 

 

63,601

 

 

 

48,807

 

Lease liability

 

 

13,310

 

 

 

14,158

 

Other tax credits

 

 

1,673

 

 

 

—

 

Gross deferred tax assets

 

 

160,804

 

 

 

156,163

 

Valuation allowance

 

 

(111,779

)

 

 

(101,529

)

Net deferred tax assets

 

 

49,025

 

 

 

54,634

 

Deferred tax liabilities

 

 

 

 

 

 

Acquired intangible assets

 

 

(45,424

)

 

 

(47,476

)

Revenue recognition

 

 

(2,292

)

 

 

(4,845

)

Right-of-use asset

 

 

(10,550

)

 

 

(13,706

)

Other

 

 

(1,562

)

 

 

(1,188

)

Gross deferred tax liabilities

 

 

(59,828

)

 

 

(67,215

)

Net deferred tax liabilities

 

$

(10,803

)

 

$

(12,581

)
Summary of Deferred Tax Assets for Tax Effects of Following Gross Tax Loss Carryforwards

As of December 31, 2022, the Company had recorded deferred tax assets for the tax effects of the following gross tax loss carryforwards (in thousands):

 

 

Carry forward Amount

 

 

Years of Expiration

Federal

 

$

24,121

 

 

2027 - 2032

State (post-apportionment)

 

$

154,352

 

 

2023 - 2041
Schedule of Credits Available to Reduce Future Income Tax Expense

As of December 31, 2022, the Company had the following credits available to reduce future income tax expense (in thousands):

 

 

Carry forward Amount

 

 

Years of Expiration

Federal research and development credits

 

$

8,644

 

 

2024 - 2042

State research and development credits

 

$

13,174

 

 

Indefinite
Schedule of Changes in Deferred Tax Asset Valuation Allowance

The deferred tax asset valuation allowance and changes in the deferred tax asset valuation allowance consisted of the following (in thousands):

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Balance at beginning of period

 

$

101,529

 

 

$

52,676

 

 

$

27,796

 

Charged (credited) to expenses

 

 

19,321

 

 

 

59,249

 

 

 

16,177

 

Charged (credited) to other accounts

 

 

(9,071

)

 

 

(10,396

)

 

 

8,703

 

Balance at end of period

 

$

111,779

 

 

$

101,529

 

 

$

52,676

 
Reconciliation of Statutory U.S. Federal Income Tax Rate to Company's Effective Tax

A reconciliation of the statutory U.S. federal income tax rate to the Company’s effective tax rate is as follows:

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

U.S. federal statutory rate

 

$

(157,032

)

 

$

(33,650

)

 

$

(31,716

)

State, net of federal benefit

 

 

1,974

 

 

 

(258

)

 

 

(1,129

)

Stock-based compensation

 

 

2,036

 

 

 

(1,740

)

 

 

2,779

 

Executive compensation limitation

 

 

2,286

 

 

 

2,221

 

 

 

563

 

Research tax credit

 

 

(5,225

)

 

 

(2,321

)

 

 

(1,610

)

Foreign withholding tax

 

 

8,079

 

 

 

11,018

 

 

 

7,620

 

Goodwill impairment

 

 

107,831

 

 

 

—

 

 

 

—

 

Restructuring and transaction costs

 

 

293

 

 

 

—

 

 

 

6,161

 

Foreign rate differential

 

 

19,337

 

 

 

16,407

 

 

 

2,082

 

Foreign tax credit

 

 

(977

)

 

 

(8,928

)

 

 

(5,441

)

Change in valuation allowance

 

 

20,491

 

 

 

39,063

 

 

 

7,158

 

Foreign income inclusions

 

 

7,656

 

 

 

—

 

 

 

642

 

Unrecognized tax benefits

 

 

6,798

 

 

 

1,526

 

 

 

1,703

 

Change in estimates

 

 

(1,802

)

 

 

(4,674

)

 

 

—

 

Others

 

 

1,844

 

 

 

176

 

 

 

1,453

 

Total

 

$

13,589

 

 

$

18,840

 

 

$

(9,735

)
Reconciliation of Unrecognized Tax Benefits

The reconciliation of the Company’s unrecognized tax benefits for the years ended December 31, 2022, 2021 and 2020 is as follows (in thousands):

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Total unrecognized tax benefits at January 1

 

$

8,438

 

 

$

7,106

 

 

$

9,067

 

Changes due to mergers and transactions

 

 

1,682

 

 

 

(1,440

)

 

 

(3,605

)

Increases for tax positions related to the current year

 

 

8,793

 

 

 

1,962

 

 

 

958

 

Increases for tax positions related to prior years

 

 

444

 

 

 

1,303

 

 

 

745

 

Decreases for tax positions related to prior years

 

 

(3

)

 

 

(493

)

 

 

(59

)

Total unrecognized tax benefits at December 31

 

$

19,354

 

 

$

8,438

 

 

$

7,106

 
v3.22.4
Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Future Payments under Noncancelable Unconditional Purchase Obligations

In the ordinary course of business, the Company enters into contractual agreements with third parties that include non-cancelable payment obligations, for which it is liable in future periods. These arrangements primarily include unconditional purchase obligations to service providers. Total future unconditional purchase obligations as of December 31, 2022 were as follows (in thousands):

2023

 

$

32,697

 

2024

 

 

17,631

 

2025

 

 

9,469

 

2026

 

 

8,580

 

2027

 

 

9,201

 

Thereafter

 

 

25,348

 

Total

 

$

102,926

 

Additionally, under certain other contractual arrangements, the Company may be obligated to pay up to $1.3 million, a majority of which is expected to be paid in the next two years, if certain milestones are achieved.
v3.22.4
Related Party Transactions and Net Investment By Former Parent (Tables)
 12 Months Ended
Dec. 31, 2022
Related Party Transactions [Abstract]  
Reconciliation of Net Transfers from Former Parent

A reconciliation of Net transfers from the Former Parent on the Consolidated Statements of Equity to the corresponding amount on the Consolidated Statements of Cash Flows was as follows (in thousands):

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Total net transfers from Former Parent per Consolidated Statements of Equity

 

$

100,915

 

 

$

116,830

 

 

$

506,176

 

Stock-based compensation

 

 

(45,303

)

 

 

(33,509

)

 

 

(19,183

)

TiVo merger consideration

 

 

—

 

 

 

—

 

 

 

(452,768

)

Net proceeds from capital contributions by Former Parent

 

 

83,235

 

 

 

—

 

 

 

—

 

Issuance of equity to noncontrolling interest

 

 

(1,423

)

 

 

9

 

 

 

19

 

Other

 

 

(1,387

)

 

 

—

 

 

 

—

 

Total net transfers from Former Parent per Consolidated Statements of Cash Flows

 

$

136,037

 

 

$

83,330

 

 

$

34,244

 
v3.22.4
The Company and Basis of Presentation - Additional Information (Details)
 12 Months Ended
Oct. 21, 2022
shares
Oct. 01, 2022
$ / shares
shares
Dec. 18, 2019
Dec. 31, 2022
Business
Segment
$ / shares
shares
Sep. 21, 2022
$ / shares
Dec. 31, 2021
$ / shares
shares
Organization Consolidation And Presentation [Line Items]            
Effective date of merger     Jun. 01, 2020      
Common stock, par value (in dollars per share) | $ / shares       $ 0.001   $ 0.001
Common stock shares distributed | shares       42,066,000   0
Number of reportable business segments | Segment       1    
Number of business category | Business       4    
Xperi Holding            
Organization Consolidation And Presentation [Line Items]            
Number of independent publicly traded companies | Business       2    
Number of intellectual property licensing business | Business       1    
Number of product business | Business       1    
Perceive Corporation            
Organization Consolidation And Presentation [Line Items]            
Ownership interest, percentage       77.00%    
Spin-Off | Xperi Holding            
Organization Consolidation And Presentation [Line Items]            
Record date of outstanding common stock distribution for spinoff   Sep. 21, 2022        
Number of shares received for every ten common stock shares held on record date | shares   4        
Number of common stock shares considered as one unit for issue of shares in spinoff | shares 10          
Common stock, par value (in dollars per share) | $ / shares   $ 0.001     $ 0.001  
Common stock shares distributed | shares   42,023,632        
v3.22.4
Summary of Significant Accounting Policies - Additional Information (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
USD ($)
Segment
Customer
Dec. 31, 2021
USD ($)
Customer
Dec. 31, 2020
USD ($)
Customer
Summary of Significant Accounting Policies [Line Items]      
Number of operating segments | Segment 1    
Impairment of long-lived assets | $ $ 7,724    
Advertising expense | $ $ 5,500 $ 9,100 $ 11,300
Aggregate trade receivables | Credit Concentration Risk      
Summary of Significant Accounting Policies [Line Items]      
Number of customers, concentration of risk disclosure | Customer 0 0  
Revenue | Credit Concentration Risk      
Summary of Significant Accounting Policies [Line Items]      
Number of customers, concentration of risk disclosure | Customer 0 0 0
Customer One | Aggregate trade receivables | Credit Concentration Risk      
Summary of Significant Accounting Policies [Line Items]      
Concentration risk, percentage (or more) 10.00% 10.00%  
v3.22.4
Summary of Significant Accounting Policies - Identifiable Intangible Assets (Details)
 12 Months Ended
Dec. 31, 2022
Minimum  
Finite-Lived Intangible Assets [Line Items]  
Intangible assets estimated useful life 1 year
Maximum  
Finite-Lived Intangible Assets [Line Items]  
Intangible assets estimated useful life 10 years
v3.22.4
Summary of Significant Accounting Policies - Long-Lived Assets (Details)
 12 Months Ended
Dec. 31, 2022
Equipment, furniture and other | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful life 1 year
Equipment, furniture and other | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful life 5 years
Leasehold improvements  
Property, Plant and Equipment [Line Items]  
Estimated useful life 5 years
Building and improvements | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful life 30 years
v3.22.4
Recent Accounting Pronouncements - Additional Information (Details) - Accounting Standards Update 2021-08
Dec. 31, 2022
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]  
Change in accounting principle, accounting standards update, adopted [true false] true
Change in accounting principle accounting standards update adoption date Jan. 01, 2022
Change in accounting principle, accounting standards update, immaterial effect [true false] true
Change in Accounting Principle, Accounting Standards Update, Early Adoption [true false] true
v3.22.4
Revenue - Additional Information (Details) - Maximum
 12 Months Ended
Dec. 31, 2022
Revenue Recognition [Line Items]  
Practical expedient, timing of revenue recognition differs from the timing of cash collection, period 1 year
Revenue recognition practical expedient amortization period 1 year
Practical expedient revenue expected to be recognized from unsatisfied performance obligations, duration 1 year
v3.22.4
Revenue - Schedule of Revenue Disaggregated by Market (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Disaggregation of Revenue [Line Items]      
Total revenue $ 502,260 $ 486,483 $ 376,101
Pay TV      
Disaggregation of Revenue [Line Items]      
Total revenue 249,457 262,929 164,865
Consumer Electronics      
Disaggregation of Revenue [Line Items]      
Total revenue 128,395 99,529 111,726
Connected Car      
Disaggregation of Revenue [Line Items]      
Total revenue 84,201 88,306 79,021
Media Platform      
Disaggregation of Revenue [Line Items]      
Total revenue $ 40,207 $ 35,719 $ 20,489
v3.22.4
Revenue - Schedule of Geographic Revenue Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue $ 502,260 $ 486,483 $ 376,101
Revenue | Geographic Concentration Risk      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Concentration risk, percentage (or more) 100.00% 100.00% 100.00%
U.S.      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue $ 278,920 $ 249,537 $ 182,492
U.S. | Revenue | Geographic Concentration Risk      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Concentration risk, percentage (or more) 56.00% 51.00% 49.00%
Japan      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue $ 65,551 $ 70,956 $ 60,349
Japan | Revenue | Geographic Concentration Risk      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Concentration risk, percentage (or more) 13.00% 15.00% 16.00%
China      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue $ 30,932 $ 18,027 $ 21,685
China | Revenue | Geographic Concentration Risk      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Concentration risk, percentage (or more) 6.00% 4.00% 6.00%
Europe and Middle East      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue $ 42,846 $ 56,317 $ 36,352
Europe and Middle East | Revenue | Geographic Concentration Risk      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Concentration risk, percentage (or more) 9.00% 12.00% 10.00%
South Korea      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue $ 27,870 $ 38,801 $ 32,101
South Korea | Revenue | Geographic Concentration Risk      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Concentration risk, percentage (or more) 5.00% 7.00% 8.00%
Other      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue $ 56,141 $ 52,845 $ 43,122
Other | Revenue | Geographic Concentration Risk      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Concentration risk, percentage (or more) 11.00% 11.00% 11.00%
v3.22.4
Revenue - Schedule of Contract Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]    
Unbilled contracts receivable $ 65,251 $ 50,962
Other current assets 848 724
Long-term unbilled contracts receivable 4,289 3,825
Other long-term assets 978 1,043
Total contract assets $ 71,366 $ 56,554
v3.22.4
Revenue - Schedule of Allowance for Credit Losses (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Accounts Notes And Loans Receivable [Line Items]      
Provision for credit losses $ 700 $ (1,016) $ 5,973
Accounts Receivable      
Accounts Notes And Loans Receivable [Line Items]      
Beginning balance 2,255 6,454 566
Provision for credit losses 799 714 6,406
Recoveries/charge-off (1,104) (4,913) (518)
Balance at end of period 1,950 2,255 6,454
Unbilled Contracts Receivable      
Accounts Notes And Loans Receivable [Line Items]      
Beginning balance 468 1,414  
Provision for credit losses (99) 38 1,414
Recoveries/charge-off   (984)  
Balance at end of period $ 369 $ 468 $ 1,414
v3.22.4
Revenue - Schedule of Revenue Recognized in Period (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Revenue from Contract with Customer [Abstract]      
Amounts included in deferred revenue at the beginning of the period $ 19,713 $ 23,863 $ 720
Amounts included in deferred revenue acquired from the Mergers     19,367
Performance obligations satisfied in previous periods (true ups, licensee reporting adjustments and settlements) [2] $ 30,561 [1] $ 8,772 $ 13,138
[1] Amount includes past royalty revenue from the settlement of a contract dispute with a large mobile imaging customer, and the execution of a long-term license agreement with a leading consumer electronics and over-the-top (“OTT”) service provider. The long-term license agreement is effective as of the expiration of the prior agreement. The Company recorded revenue from both the settlement and the license agreement, referred to above, in the second quarter of 2022 and expects to record revenue from the license agreement in future periods.
[2] True ups represent the differences between the Company’s quarterly estimates of per-unit royalty revenue and actual production/sales-based royalties reported by licensees in the following period. Licensee reporting adjustments represent corrections or revisions to previously reported per-unit royalties by licensees, generally resulting from the Company’s inquiries or compliance audits. Settlements represent resolutions of litigation during the period for past royalties owed.
v3.22.4
Revenue - Schedule of Remaining Performance Obligations (Details)
$ in Thousands
Dec. 31, 2022
USD ($)
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]  
Remaining performance obligations $ 107,903
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01  
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]  
Remaining performance obligations $ 57,610
Performance obligations expected to be satisfied, expected timing 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01  
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]  
Remaining performance obligations $ 28,055
Performance obligations expected to be satisfied, expected timing 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-01-01  
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]  
Remaining performance obligations $ 15,910
Performance obligations expected to be satisfied, expected timing 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-01-01  
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]  
Remaining performance obligations $ 5,024
Performance obligations expected to be satisfied, expected timing 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2027-01-01  
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]  
Remaining performance obligations $ 1,024
Performance obligations expected to be satisfied, expected timing 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2028-01-01  
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]  
Remaining performance obligations $ 280
Performance obligations expected to be satisfied, expected timing 1 year
v3.22.4
Revenue - Schedule of Remaining Performance Obligations (Details 1)
$ in Thousands
Dec. 31, 2022
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligations $ 107,903
v3.22.4
Composition of Certain Financial Statement Captions - Schedule of Other Current Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Prepaid income tax $ 1,777 $ 1,141
Prepaid expenses 20,001 15,283
Inventory 6,662 5,102
Other 13,734 4,459
Total $ 42,174 $ 25,985
v3.22.4
Composition of Certain Financial Statement Captions - Schedule of Property and Equipment, Net (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 119,645 $ 109,931
Less: Accumulated depreciation and amortization (71,818) (52,454)
Total 47,827 57,477
Equipment, furniture and other    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 78,976 64,236
Building and improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 18,331 18,331
Land    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 5,300 5,300
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 17,038 $ 22,064
Less: Accumulated depreciation and amortization $ (1,900)  
v3.22.4
Composition of Certain Financial Statement Captions - Schedule of Property and Equipment, Net (Parenthetical) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Property, Plant and Equipment [Line Items]    
Gross cost $ 4,800  
Accumulated depreciation 71,818 $ 52,454
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Impairment charge 2,900  
Gross cost 4,800  
Accumulated depreciation $ 1,900  
v3.22.4
Composition of Certain Financial Statement Captions - Schedule of Property and Equipment, Net by Geographic Area (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Property, Plant and Equipment [Line Items]    
Total $ 47,827 $ 57,477
U.S.    
Property, Plant and Equipment [Line Items]    
Total 42,487 51,306
Europe    
Property, Plant and Equipment [Line Items]    
Total 3,460 3,697
Asia and other    
Property, Plant and Equipment [Line Items]    
Total $ 1,880 $ 2,474
v3.22.4
Composition of Certain Financial Statement Captions - Schedule of Accrued Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Employee compensation and benefits $ 53,546 $ 33,685
Third-party royalties 7,620 4,428
Accrued expenses 22,928 21,147
Current portion of operating lease liabilities $ 17,195 $ 14,725
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] Total Total
Accrued income tax $ 4,926 $ 2,055
Other 3,799 8,364
Total $ 110,014 $ 84,404
v3.22.4
Composition of Certain Financial Statement Captions - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Foreign currency translation adjustment, net of tax $ (4,025) $ (676)
Unrealized hedging losses, net of tax (94)  
Total $ (4,119) $ (676)
v3.22.4
Financial Instruments - Additional Information (Details) - TiVo Merger - Non-marketable Equity Securities - USD ($)
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Schedule Of Investments [Line Items]      
Equity securities accounted for under equity method $ 4,400,000 $ 4,800,000  
Impairment charges related to non-marketable equity securities $ 0 $ 0 $ 0
v3.22.4
Financial Instruments - Schedule of Notional and Fair Values of All Derivative Instruments (Details) - Foreign Exchange Contracts
$ in Thousands
Dec. 31, 2022
USD ($)
Designated Derivative Instruments | Cash Flow Hedging [Member]  
Derivatives, Fair Value [Line Items]  
Accrued liabilities $ 94
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration] Accrued Liabilities, Current
Total fair value $ 94
Total notional value 52,197
Undesignated Derivative Instruments  
Derivatives, Fair Value [Line Items]  
Accrued liabilities $ 41
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration] Accrued Liabilities, Current
Total fair value $ 41
Total notional value $ 7,402
v3.22.4
Fair Value - Schedule of Carrying Amounts and Estimated Fair Values (Details) - Recurring - Senior Unsecured Promissory Note
$ in Thousands
Dec. 31, 2022
USD ($)
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]  
Total long-term debt, net - Carrying Amount $ 50,000
Total long-term debt, net - Estimated Fair Value $ 48,478
v3.22.4
Leases - Additional Information (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2022
USD ($)
Lessee Lease Description [Line Items]  
Operating lease existence of option to extend true
Operating lease description The Company’s leases have remaining lease terms of one year to seven years, some of which may include options to extend the leases for five years or longer, and some of which may include options to terminate the leases within the next 5 years or less. Leases with an initial term of 12 months or less are not recorded on the balance sheets
Non-cash impairment charges related to operating lease ROU assets $ 4.8
Non-cash impairment charges related to leasehold improvements $ 2.9
Minimum  
Lessee Lease Description [Line Items]  
Remaining lease term 1 year
Lessee term of period to extend 5 years
Maximum  
Lessee Lease Description [Line Items]  
Remaining lease term 7 years
v3.22.4
Leases - Schedule of Operating Lease Costs (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Leases [Abstract]      
Fixed lease cost $ 20,581 $ 20,619 $ 14,296
Variable lease cost 5,365 5,030 2,918
Less: sublease income (9,498) (9,724) (5,423)
Total operating lease cost $ 16,448 $ 15,925 $ 11,791
v3.22.4
Leases - Schedule of Other Information Related to Leases (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Leases [Abstract]      
Operating cash flows from operating leases $ 20,307 $ 20,826 $ 14,514
Operating lease, ROU assets obtained in exchange for new lease liabilities $ 14,360 $ 6,131 $ 5,684
Operating leases, weighted average remaining lease term (years) 3 years 8 months 8 days 4 years 5 months 23 days 5 years 2 months 12 days
Operating leases, weighted average discount rate 5.10% 4.90% 5.10%
v3.22.4
Leases - Schedule of Future Minimum Lease Payments and Related Lease Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Operating Lease Payments    
2023 $ 19,897  
2024 18,320  
2025 15,810  
2026 7,867  
2027 2,711  
Thereafter 1,473  
Total lease payments 66,078  
Less: imputed interest (6,217)  
Present value of lease liabilities: 59,861  
Current portion of operating lease liabilities $ (17,195) $ (14,725)
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Accrued Liabilities, Current Accrued Liabilities, Current
Noncurrent operating lease liabilities $ 42,666 $ 49,017
Sublease Income    
2023 (7,618)  
2024 (7,610)  
2025 (7,386)  
2026 (935)  
Total lease payments (23,549)  
Present value of lease liabilities: (23,549)  
Net Operating Lease Payments    
2023 12,279  
2024 10,710  
2025 8,424  
2026 6,932  
2027 2,711  
Thereafter 1,473  
Total lease payments 42,529  
Less: imputed interest (6,217)  
Present value of lease liabilities: $ 36,312  
v3.22.4
Business Combinations - Additional Information (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Jul. 01, 2022
Dec. 31, 2022
Sep. 30, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
May 31, 2021
Business Acquisition [Line Items]              
Common stock, par value   $ 0.001   $ 0.001 $ 0.001    
Revenue       $ 502,260 $ 486,483 $ 376,101  
Operating loss       (749,432) $ (161,828) $ (152,563)  
Goodwill impairment charge   $ 250,600 $ 354,000 604,555      
MobiTV              
Business Acquisition [Line Items]              
Purchase price             $ 12,400
Vewd              
Business Acquisition [Line Items]              
Revenue       8,900      
Operating loss       82,600      
Business acquired percentage 100.00%            
Purchase price $ 102,913            
Cash included in the total consideration 52,900            
Debt included in the total consideration 50,000            
Goodwill, Expected tax deductible amount $ 400            
Goodwill impairment charge       68,100      
Transaction related costs including transaction bonuses, legal and consultant fees       7,400      
Severance and retention costs       $ 4,000      
v3.22.4
Business Combinations - Schedule of Purchase Price Allocation (Details) - USD ($)
$ in Thousands
Jul. 01, 2022
May 31, 2021
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Identifiable intangible assets:          
Goodwill     $ 0 $ 536,512 $ 532,453
MobiTV          
Business Acquisition [Line Items]          
Other current assets   $ 390      
Property and equipment   9,223      
Operating lease right-of-use assets   1,186      
Identifiable intangible assets:          
Goodwill   4,059      
Other long-term assets   115      
Accrued liabilities   (5,288)      
Noncurrent operating lease liabilities   (545)      
Total purchase price   $ 12,400      
MobiTV | Technology          
Business Acquisition [Line Items]          
Estimated Useful Life (years)   6 years      
Identifiable intangible assets:          
Total identifiable intangible assets   $ 3,260      
Vewd          
Business Acquisition [Line Items]          
Cash and cash equivalents $ 2,684        
Accounts receivable 3,341        
Unbilled contracts receivable 2,335        
Other current assets 1,208        
Property and equipment 443        
Operating lease right-of-use assets 2,020        
Identifiable intangible assets:          
Total identifiable intangible assets 38,150        
Goodwill 68,115        
Other long-term assets 977        
Accounts payable (869)        
Accrued liabilities (4,777)        
Deferred revenue (920)        
Long-term deferred tax liabilities (8,393)        
Noncurrent operating lease liabilities (1,094)        
Other long-term liabilities (307)        
Total purchase price $ 102,913        
Vewd | Technology          
Business Acquisition [Line Items]          
Estimated Useful Life (years) 7 years        
Identifiable intangible assets:          
Total identifiable intangible assets $ 28,050        
Vewd | Customer relationships - large          
Business Acquisition [Line Items]          
Estimated Useful Life (years) 7 years        
Identifiable intangible assets:          
Total identifiable intangible assets $ 4,900        
Vewd | Customer relationships - small          
Business Acquisition [Line Items]          
Estimated Useful Life (years) 4 years        
Identifiable intangible assets:          
Total identifiable intangible assets $ 3,500        
Vewd | Non-competition agreements          
Business Acquisition [Line Items]          
Estimated Useful Life (years) 2 years        
Identifiable intangible assets:          
Total identifiable intangible assets $ 870        
Vewd | Trade name          
Business Acquisition [Line Items]          
Estimated Useful Life (years) 5 years        
Identifiable intangible assets:          
Total identifiable intangible assets $ 830        
v3.22.4
Business Combinations - Schedule of Unaudited Pro Forma Financial Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
MobiTV      
Business Acquisition [Line Items]      
Revenue   $ 490,343 $ 383,262
Net loss attributable to the Company   (191,125) $ (179,365)
Vewd      
Business Acquisition [Line Items]      
Revenue $ 508,636 498,992  
Net loss attributable to the Company $ (769,483) $ (209,690)  
v3.22.4
Goodwill and Identified Intangible Assets - Summary of Changes to Carrying Value of Goodwill (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2022
Sep. 30, 2022
Dec. 31, 2022
Dec. 31, 2021
Goodwill [Line Items]        
Goodwill, beginning     $ 536,512 $ 532,453
Goodwill adjustment related to Mergers in prior periods     (72)  
Impairment charge $ (250,600) $ (354,000) (604,555)  
Goodwill, ending 0   0 536,512
Three Months Ended December 31, 2022        
Goodwill [Line Items]        
Impairment charge $ (250,555)      
MobiTV        
Goodwill [Line Items]        
Goodwill acquired through the Acquisition       $ 4,059
Vewd        
Goodwill [Line Items]        
Goodwill acquired through the Acquisition     68,115  
Impairment charge     $ (68,100)  
v3.22.4
Goodwill and Identified Intangible Assets (Additional Information) (Details)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2022
USD ($)
Sep. 30, 2022
USD ($)
Dec. 31, 2022
USD ($)
ReportingUnit
Days
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]          
Number of reporting units | ReportingUnit     1    
Number of trading days | Days     10    
Goodwill impairment $ 250,600 $ 354,000 $ 604,555    
Goodwill $ 0   $ 0 $ 536,512 $ 532,453
v3.22.4
Goodwill and Identified Intangible Assets - Identified Intangible Assets (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, gross $ 829,385 $ 774,463
Finite-lived intangible assets, Gross Assets 807,985 753,063
Finite-lived intangible assets, Accumulated Amortization (565,009) (503,529)
Intangible assets, net 264,376 270,934
Finite-lived intangible assets, Net $ 242,976 249,534
Minimum    
Finite-Lived Intangible Assets [Line Items]    
Estimated Useful Life (years) 1 year  
Maximum    
Finite-Lived Intangible Assets [Line Items]    
Estimated Useful Life (years) 10 years  
TiVo Tradename/trademarks    
Finite-Lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets, Gross Assets $ 21,400 21,400
Indefinite-lived intangible assets, Net 21,400 21,400
Acquired patents / core technology    
Finite-Lived Intangible Assets [Line Items]    
Finite-lived intangible assets, Gross Assets 22,189 5,258
Finite-lived intangible assets, Accumulated Amortization (6,175) (5,215)
Finite-lived intangible assets, Net $ 16,014 43
Acquired patents / core technology | Minimum    
Finite-Lived Intangible Assets [Line Items]    
Estimated Useful Life (years) 3 years  
Acquired patents / core technology | Maximum    
Finite-Lived Intangible Assets [Line Items]    
Estimated Useful Life (years) 10 years  
Existing technology / content database    
Finite-Lived Intangible Assets [Line Items]    
Finite-lived intangible assets, Gross Assets $ 240,894 212,765
Finite-lived intangible assets, Accumulated Amortization (190,671) (173,420)
Finite-lived intangible assets, Net $ 50,223 39,345
Existing technology / content database | Minimum    
Finite-Lived Intangible Assets [Line Items]    
Estimated Useful Life (years) 5 years  
Existing technology / content database | Maximum    
Finite-Lived Intangible Assets [Line Items]    
Estimated Useful Life (years) 10 years  
Customer contracts and related relationships    
Finite-Lived Intangible Assets [Line Items]    
Finite-lived intangible assets, Gross Assets $ 502,188 494,026
Finite-lived intangible assets, Accumulated Amortization (335,981) (297,867)
Finite-lived intangible assets, Net $ 166,207 196,159
Customer contracts and related relationships | Minimum    
Finite-Lived Intangible Assets [Line Items]    
Estimated Useful Life (years) 3 years  
Customer contracts and related relationships | Maximum    
Finite-Lived Intangible Assets [Line Items]    
Estimated Useful Life (years) 9 years  
Trademarks/trade name    
Finite-Lived Intangible Assets [Line Items]    
Finite-lived intangible assets, Gross Assets $ 39,613 38,783
Finite-lived intangible assets, Accumulated Amortization (29,733) (24,796)
Finite-lived intangible assets, Net $ 9,880 13,987
Trademarks/trade name | Minimum    
Finite-Lived Intangible Assets [Line Items]    
Estimated Useful Life (years) 4 years  
Trademarks/trade name | Maximum    
Finite-Lived Intangible Assets [Line Items]    
Estimated Useful Life (years) 10 years  
Non-competition agreements    
Finite-Lived Intangible Assets [Line Items]    
Finite-lived intangible assets, Gross Assets $ 3,101 2,231
Finite-lived intangible assets, Accumulated Amortization (2,449) $ (2,231)
Finite-lived intangible assets, Net $ 652  
Non-competition agreements | Minimum    
Finite-Lived Intangible Assets [Line Items]    
Estimated Useful Life (years) 1 year  
Non-competition agreements | Maximum    
Finite-Lived Intangible Assets [Line Items]    
Estimated Useful Life (years) 2 years  
v3.22.4
Goodwill and Identified Intangible Assets - Estimated Future Amortization Expense (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]    
2023 $ 57,775  
2024 43,374  
2025 34,757  
2026 31,480  
2027 30,637  
Thereafter 44,953  
Finite-lived intangible assets, Net $ 242,976 $ 249,534
v3.22.4
Debt - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Jul. 01, 2022
Dec. 31, 2022
Promissory Note    
Line Of Credit Facility [Line Items]    
Interest expense   $ 1.5
Vewd | Promissory Note    
Line Of Credit Facility [Line Items]    
Debt instrument, principal amount $ 50.0  
Interest rate 6.00%  
Debt instrument, basis spread on variable rate 2.00%  
Debt instrument, maturity date Jul. 01, 2025  
2021 Convertible Notes    
Line Of Credit Facility [Line Items]    
Borrowings   $ 50.0
v3.22.4
Debt - Summarize of Future Minimum Principal Payments for the Promissory Note (Details) - Promissory Note
$ in Thousands
Dec. 31, 2022
USD ($)
Debt Instrument [Line Items]  
2023 $ 0
2024 0
2025 50,000
2026 0
2027 0
Thereafter 0
Total $ 50,000
v3.22.4
Net Loss Per Share - Additional Information (Details) - $ / shares
Oct. 01, 2022
Dec. 31, 2022
Sep. 21, 2022
Dec. 31, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Common stock, shares issued (in shares)   42,066,000   0
Common stock, par value   $ 0.001   $ 0.001
Xperi | Spin-Off        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Common stock, shares issued (in shares) 42,023,632      
Record date of outstanding common stock distribution for spinoff Sep. 21, 2022      
Common stock, par value $ 0.001   $ 0.001  
v3.22.4
Net Loss Per Share - Computation of Basic and Diluted Net Loss Per Share (Details) - shares
shares in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Denominator:      
Weighted average common shares outstanding 42,029 42,024 42,024
Total common shares-basic (in shares) 42,029 42,024 42,024
Effect of dilutive securities:      
Total common shares-diluted (in shares) 42,029 42,024 42,024
v3.22.4
Net Loss Per Share - Schedule of Potentially Dilutive Shares Were Excluded From Calculation of Diluted Net Loss Per Share (Details)
shares in Thousands
 12 Months Ended
Dec. 31, 2022
shares
Options  
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]  
Antidilutive shares were excluded from the calculation of diluted net loss per share 146
Restricted Stock Awards and Units  
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]  
Antidilutive shares were excluded from the calculation of diluted net loss per share 4,604
v3.22.4
Stockholders' Equity - Additional Information (Details) - USD ($)
 12 Months Ended
Oct. 01, 2022
Dec. 31, 2022
Employee Stock Purchase Plan    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Expiration period   24 months
Number of shares reserved for issuance   5,000,000.0
Maximum employee subscription rate   100.00%
Purchase price of common stock, percent   85.00%
Maximum employee subscription amount   $ 25,000,000
Rolling expiration period   24 months
Performance Shares | Minimum    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Performance awards, percentage of grant available to vest   0.00%
Performance Shares | Maximum    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Performance awards, percentage of grant available to vest   200.00%
Former Parent Equity Awards    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Vesting period 2 years 7 months 6 days  
Incremental stock-based compensation expense $ 8,400,000  
2022 EIP    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Expiration period   10 years
Vesting period   4 years
Number of shares reserved for issuance   10,100,000
Shares reserved for grant (in shares) 5,300,000  
2022 EIP | Performance Shares    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Vesting period   3 years
2022 EIP | Time-based Awards    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Vesting period   4 years
2022 EIP | Restricted Stock and Restricted Stock Units    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Number of shares issued 4,119,886  
2022 EIP | Employee Stock Options    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Number of shares issued 147,922  
v3.22.4
Stockholders' Equity - Summary of Stock Option Activity (Details)
 12 Months Ended
Dec. 31, 2022
$ / shares
shares
Number of Shares Subject to Options  
Number of Shares, Options converted (shares) | shares 148,000
Number of Shares, Options canceled / forfeited / expired (shares) | shares (2,000)
Number of Shares, Ending balance (shares) | shares 146,000
Number of Shares, Vested and expected to vest | shares 146,000
Number of Shares, Exercisable | shares 146,000
Weighted Average Exercise Price Per Share  
Weighted Average Exercise Price Per Share, Options, converted (USD per share) | $ / shares $ 25.52
Weighted Average Exercise Price Per Share, Options canceled / forfeited / expired (USD per share) | $ / shares 29.16
Weighted Average Exercise Price Per Share, Ending balance (USD per share) | $ / shares 25.48
Weighted Average Exercise Price Per Share, Options vested and expected to vest | $ / shares 25.48
Weighted Average Exercise Price Per Share, Options exercisable | $ / shares $ 25.48
Weighted Average Remaining Contractual Life and Aggregate Intrinsic Value  
Weighted Average Remaining Contractual Life (in years) 1 year 10 months 20 days
Vested and expected to vest, Weighted Average Remaining Contractual Life 1 year 10 months 20 days
Exercisable, Weighted Average Remaining Contractual Life 1 year 10 months 20 days
v3.22.4
Stockholders' Equity - Summary of Stock Options Outstanding and Exercisable (Details)
shares in Thousands
 12 Months Ended
Dec. 31, 2022
$ / shares
shares
$17.68 - $21.26  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Range of Exercise Prices, Low End $ 17.68
Range of Exercise Prices, Upper End $ 21.26
Number Outstanding (in thousands) | shares 50
Weighted Average Remaining Contractual Life (in years) 8 months 15 days
Weighted Average Exercise Price per Share $ 20.87
Number Exercisable (in thousands) | shares 50
Weighted Average Exercise Price per Share $ 20.87
$21.64 - $24.68  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Range of Exercise Prices, Low End 21.64
Range of Exercise Prices, Upper End $ 24.68
Number Outstanding (in thousands) | shares 63
Weighted Average Remaining Contractual Life (in years) 2 years 8 months 1 day
Weighted Average Exercise Price per Share $ 23.43
Number Exercisable (in thousands) | shares 63
Weighted Average Exercise Price per Share $ 23.43
$24.75 - $56.62  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Range of Exercise Prices, Low End 24.75
Range of Exercise Prices, Upper End $ 56.62
Number Outstanding (in thousands) | shares 33
Weighted Average Remaining Contractual Life (in years) 2 years 2 months 12 days
Weighted Average Exercise Price per Share $ 36.46
Number Exercisable (in thousands) | shares 33
Weighted Average Exercise Price per Share $ 36.46
$17.68 - $56.62  
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Range of Exercise Prices, Low End 17.68
Range of Exercise Prices, Upper End $ 56.62
Number Outstanding (in thousands) | shares 146
Weighted Average Remaining Contractual Life (in years) 1 year 10 months 20 days
Weighted Average Exercise Price per Share $ 25.48
Number Exercisable (in thousands) | shares 146
Weighted Average Exercise Price per Share $ 25.48
v3.22.4
Stockholders' Equity - Summary of Restricted Stock Awards and Units (Details)
 12 Months Ended
Dec. 31, 2022
$ / shares
shares
Time-Based Restricted Stock Award and Restricted Stock Units  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]  
Restricted stock awards and units, converted (shares) 3,245
Restricted stock awards and units, granted (shares) 568
Restricted stock awards and units, vested / earned (shares) (68)
Restricted stock awards and units, canceled / forfeited (shares) (32)
Restricted stock awards and units, ending balance (shares) 3,713
Performance-Based Restricted Stock Award and Restricted Stock Units  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]  
Restricted stock awards and units, converted (shares) 875
Restricted stock awards and units, granted (shares) 16
Restricted stock awards and units, ending balance (shares) 891
Restricted Stock and Restricted Stock Units  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]  
Restricted stock awards and units, converted (shares) 4,120
Restricted stock awards and units, granted (shares) 584
Restricted stock awards and units, vested / earned (shares) (68)
Restricted stock awards and units, canceled / forfeited (shares) (32)
Restricted stock awards and units, ending balance (shares) 4,604
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]  
Weighted average grant date fair value per share of restricted stock and units, converted | $ / shares $ 21.69
Weighted average grant date fair value per share of restricted stock and units, granted (USD per share) | $ / shares 10.79
Weighted average grant date fair value per share of restricted stock and units, vested / earned (USD per share) | $ / shares 19.55
Weighted average grant date fair value of restricted stock and units, canceled / forfeited (USD per share) | $ / shares 18.99
Weighted average grant date fair value per share of restricted stock and units, ending balance (USD per share) | $ / shares $ 20.35
v3.22.4
Stock-Based Compensation Expense - Effect of Recording Stock-Based Compensation Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Total stock-based compensation expense $ 45,303 $ 33,509 $ 19,183
Tax effect on stock-based compensation expense (139) (225) (1,377)
Net effect on net loss 45,164 33,284 17,806
Cost of revenue, excluding depreciation and amortization of intangible assets      
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Total stock-based compensation expense 2,906 1,972 585
Research and development      
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Total stock-based compensation expense 21,561 17,914 11,383
Selling, general and administrative      
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Total stock-based compensation expense $ 20,836 $ 13,623 $ 7,215
v3.22.4
Stock-Based Compensation Expense - Stock-Based Compensation Expense Categorized by Equity Components (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation expense $ 45,303 $ 33,509 $ 19,183
Employee stock purchase plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation expense 2,727 3,428 1,281
Restricted stock awards and units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation expense 42,208 30,015 17,867
Options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation expense $ 368 $ 66 $ 35
v3.22.4
Stock-Based Compensation Expense - Additional Information (Details) - USD ($)
 3 Months Ended 12 Months Ended
Oct. 01, 2022
Dec. 31, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Total stock-based compensation expense     $ 45,303,000 $ 33,509,000 $ 19,183,000
Number of shares, options granted     0    
Adeia (Former Parent)          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Unrecognized stock-based compensation balance after estimated forfeitures related to restricted stock awards and performance-based awards and units       $ 61,600,000  
Estimated weighted average amortization period       1 year 9 months 18 days  
Black Scholes Option Pricing Model          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Expected life (in years)     2 years    
2022 EIP          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Vesting period     4 years    
Restricted Stock and Restricted Stock Units          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Restricted stock awards, total fair value     $ 1,300,000    
Total stock-based compensation expense     $ 42,208,000 $ 30,015,000 17,867,000
Weighted-average grant date fair value of RSUs granted     $ 10.79    
Restricted Stock and Restricted Stock Units | Adeia (Former Parent)          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Unrecognized compensation expense related to shares   $ 48,800,000 $ 48,800,000    
Estimated weighted average amortization period     2 years 3 months 18 days    
Restricted Stock and Restricted Stock Units | Xperi          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Unrecognized compensation expense related to shares   54,500,000 $ 54,500,000    
Estimated weighted average amortization period     2 years 6 months    
Former Parents PSUs          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Incremental stock-based compensation expense $ 8,400,000        
Vesting period 2 years 7 months 6 days        
Former Parents PSUs | Adeia (Former Parent)          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Incremental stock-based compensation expense   1,400,000      
Former Parents PSUs | Xperi          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Incremental stock-based compensation expense   1,400,000      
Stock Options          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Total intrinsic value of options exercised     $ 0    
Former Parents Stock Options | Adeia (Former Parent)          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Incremental stock-based compensation expense   400,000      
Former Parents Stock Options | Xperi          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Incremental stock-based compensation expense   $ 400,000      
Corporate and Shared Functional Employees Expense          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Total stock-based compensation expense     $ 6,900,000 $ 9,200,000 $ 7,900,000
v3.22.4
Stock-Based Compensation Expense - Schedule of Assumptions Used to Value Options Granted (Details)
 1 Months Ended 12 Months Ended
Apr. 30, 2022
Mar. 31, 2021
Jul. 31, 2020
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Employee Stock Purchase Plan            
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract]            
Expected life (in years)       2 years    
Risk-free interest rate       4.30%    
Dividend yield       0.00%    
Expected volatility       42.90%    
Employee Stock Purchase Plan | Xperi            
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract]            
Expected life (in years)       2 years 2 years 2 years
Risk-free interest rate       1.30%    
Dividend yield       1.10%    
Expected volatility       48.50%    
Employee Stock Purchase Plan | Minimum | Xperi            
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract]            
Risk-free interest rate         0.10% 1.00%
Dividend yield         0.90% 1.40%
Expected volatility         52.00% 45.80%
Employee Stock Purchase Plan | Maximum | Xperi            
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract]            
Risk-free interest rate         0.20% 1.40%
Dividend yield         1.20% 4.00%
Expected volatility         52.00% 57.50%
Performance Stock Units | Adeia (Former Parent)            
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract]            
Expected life (in years) 3 years 3 years 3 years      
Risk-free interest rate 2.80% 0.30% 0.20%      
Dividend yield 1.20% 1.00% 1.40%      
Expected volatility 40.90% 47.90% 51.30%      
v3.22.4
Income Taxes - Components of Total Loss Before Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Tax Disclosure [Abstract]      
U.S. $ (667,612) $ (123,201) $ (143,623)
Foreign (80,005) (37,037) (7,405)
Loss before taxes $ (747,617) $ (160,238) $ (151,028)
v3.22.4
Income Taxes - Summary of Provision for (Benefit from) Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Current:      
U.S. federal     $ 203
Foreign $ 21,252 $ 12,531 8,865
State and local 1,723 (604) 1,454
Total current 22,975 11,927 10,522
Deferred:      
U.S. federal (5,431) 1,215 (17,811)
Foreign (3,871) 7,116 (699)
State and local (84) (1,418) (1,747)
Total deferred (9,386) 6,913 (20,257)
Provision for (benefit from) income taxes $ 13,589 $ 18,840 $ (9,735)
v3.22.4
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Deferred tax assets        
Net operating losses $ 19,477 $ 29,786    
Research credits 6,791 7,446    
Foreign tax credits 2,119 3,858    
Accrued expenses 27,987 25,407    
Basis difference in fixed and intangible assets 16,290 14,276    
Deferred revenue 9,556 12,425    
Capitalized R&D 63,601 48,807    
Lease liability 13,310 14,158    
Other tax credits 1,673      
Gross deferred tax assets 160,804 156,163    
Valuation allowance (111,779) (101,529) $ (52,676) $ (27,796)
Net deferred tax assets 49,025 54,634    
Deferred tax liabilities        
Acquired intangible assets (45,424) (47,476)    
Revenue recognition (2,292) (4,845)    
Right-of-use asset (10,550) (13,706)    
Other (1,562) (1,188)    
Gross deferred tax liabilities (59,828) (67,215)    
Net deferred tax liabilities $ (10,803) $ (12,581)    
v3.22.4
Income Taxes - Summary of Deferred Tax Assets for Tax Effects of Following Gross Tax Loss Carryforwards (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
USD ($)
Federal  
Tax Credit Carryforward [Line Items]  
Carry forward Amount $ 24,121
Federal | Earliest Tax Year  
Tax Credit Carryforward [Line Items]  
Years of Expiration 2027
Federal | Latest Tax Year  
Tax Credit Carryforward [Line Items]  
Years of Expiration 2032
State (post-apportionment)  
Tax Credit Carryforward [Line Items]  
Carry forward Amount $ 154,352
State (post-apportionment) | Earliest Tax Year  
Tax Credit Carryforward [Line Items]  
Years of Expiration 2023
State (post-apportionment) | Latest Tax Year  
Tax Credit Carryforward [Line Items]  
Years of Expiration 2041
v3.22.4
Income Taxes - Schedule of Credits Available to Reduce Future Income Tax Expense (Details) - Research Tax Credit Carryforward
$ in Thousands
 12 Months Ended
Dec. 31, 2022
USD ($)
Federal  
Tax Credit Carryforward [Line Items]  
Carryforward Amount $ 8,644
Federal | Earliest Tax Year  
Tax Credit Carryforward [Line Items]  
Year of Expiration 2024
Federal | Latest Tax Year  
Tax Credit Carryforward [Line Items]  
Year of Expiration 2042
State  
Tax Credit Carryforward [Line Items]  
Carryforward Amount $ 13,174
v3.22.4
Income Taxes - Schedule of Changes in Deferred Tax Asset Valuation Allowance (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Tax Disclosure [Abstract]      
Balance at beginning of period $ 101,529 $ 52,676 $ 27,796
Charged (credited) to expenses 19,321 59,249 16,177
Charged (credited) to other accounts (9,071) (10,396) 8,703
Balance at end of period $ 111,779 $ 101,529 $ 52,676
v3.22.4
Income Taxes - Reconciliation of Statutory U.S. Federal Income Tax Rate to Effective Tax Rate (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Tax Disclosure [Abstract]      
U.S. federal statutory rate $ (157,032) $ (33,650) $ (31,716)
State, net of federal benefit 1,974 (258) (1,129)
Stock-based compensation 2,036 (1,740) 2,779
Executive compensation limitation 2,286 2,221 563
Research tax credit (5,225) (2,321) (1,610)
Foreign withholding tax 8,079 11,018 7,620
Goodwill impairment 107,831    
Restructuring and transaction costs 293   6,161
Foreign rate differential 19,337 16,407 2,082
Foreign tax credit (977) (8,928) (5,441)
Change in valuation allowance 20,491 39,063 7,158
Foreign income inclusions 7,656   642
Unrecognized tax benefits 6,798 1,526 1,703
Change in estimates (1,802) (4,674)  
Others 1,844 176 1,453
Provision for (benefit from) income taxes $ 13,589 $ 18,840 $ (9,735)
v3.22.4
Income Taxes - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Tax Contingency [Line Items]        
Valuation allowance $ 111,779 $ 101,529 $ 52,676 $ 27,796
Accumulated undistributed earnings generated by foreign subsidiaries 74,000      
Unrecognized tax benefits 19,354 8,438 7,106 $ 9,067
Unrecognized tax benefits that would impact the effective income tax rate $ 8,800 $ 1,700 $ 1,100  
Income tax examination description With few exceptions, the Company’s 2018 through 2022 tax years are open and subject to potential examination in one or more jurisdictions at December 31, 2022      
Federal | Research Tax Credit Carryforward        
Income Tax Contingency [Line Items]        
Tax credit carryforward $ 8,644      
State | Research Tax Credit Carryforward        
Income Tax Contingency [Line Items]        
Tax credit carryforward $ 13,174      
v3.22.4
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Total unrecognized tax benefits at January 1 $ 8,438 $ 7,106 $ 9,067
Changes due to mergers and transactions 1,682    
Changes due to mergers and transactions   (1,440) (3,605)
Increases for tax positions related to the current year 8,793 1,962 958
Increases for tax positions related to prior years 444 1,303 745
Decreases for tax positions related to prior years (3) (493) (59)
Total unrecognized tax benefits at December 31 $ 19,354 $ 8,438 $ 7,106
v3.22.4
Commitments and Contingencies - Schedule of Future Payments under Noncancelable Unconditional Purchase Obligations (Details)
$ in Thousands
Dec. 31, 2022
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
2023 $ 32,697
2024 9,201
2025 17,631
2026 9,469
2027 8,580
Thereafter 25,348
Total $ 102,926
v3.22.4
Commitments and Contingencies - Additional Information (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
USD ($)
Commitments And Contingencies Disclosure [Line Items]  
Purchase commitments $ 102,926
Other Contractual Arrangements  
Commitments And Contingencies Disclosure [Line Items]  
Contractual obligation expected payment period 2 years
Maximum | Other Contractual Arrangements  
Commitments And Contingencies Disclosure [Line Items]  
Contractual obligation $ 1,300
Inventory  
Commitments And Contingencies Disclosure [Line Items]  
Purchase commitments $ 1,300
v3.22.4
Related Party Transactions and Net Investment By Former Parent - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Related Party Transaction [Line Items]      
Research, development and other related costs $ 216,355 $ 194,869 $ 163,407
Depreciation expense 20,501 22,584 16,666
Selling, general and administrative 217,402 199,921 172,594
Former Parent      
Related Party Transaction [Line Items]      
Amount of allocations from parent 47,600 59,700 66,900
Research, development and other related costs     1,300
Depreciation expense 3,000 4,600 3,300
Selling, general and administrative $ 44,600 $ 55,100 $ 62,300
v3.22.4
Related Party Transactions and Net Investment By Former Parent - Reconciliation of Net Transfers From Former Parent (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Related Party Transaction [Line Items]      
Net proceeds from capital contributions by Former Parent $ 83,235    
Issuance of equity to noncontrolling interest (1,423) $ 9 $ 19
Total net transfers from Former Parent per Consolidated Statements of Cash Flows 52,802 83,330 34,244
Former Parent      
Related Party Transaction [Line Items]      
Total net transfers from Former Parent per Consolidated Statements of Equity 100,915 116,830 506,176
Stock-based compensation (45,303) (33,509) (19,183)
TiVO merger consideration     (452,768)
Net proceeds from capital contributions by Former Parent 83,235    
Issuance of equity to noncontrolling interest (1,423) 9 19
Other (1,387)    
Total net transfers from Former Parent per Consolidated Statements of Cash Flows $ 136,037 $ 83,330 $ 34,244
v3.22.4
Segment and Geographic Information - Additional Information (Details)
 12 Months Ended
Dec. 31, 2022
Segment
Segment Reporting [Abstract]  
Number of principal businesses segment 1
v3.22.4
Segment and Geographic Information - Schedule of Segment Reporting Information by Segment (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Segment Reporting Information [Line Items]      
Total revenue $ 502,260 $ 486,483 $ 376,101
Total operating income (loss) $ (749,432) $ (161,828) $ (152,563)
v3.22.4
Segment and Geographic Information - Schedule of Geographic Revenue Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Revenues from External Customers and Long-Lived Assets [Line Items]      
Foreign revenues $ 502,260 $ 486,483 $ 376,101
Revenue | Geographic Concentration Risk      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Concentration risk, percentage (or more) 100.00% 100.00% 100.00%
Japan      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Foreign revenues $ 65,551 $ 70,956 $ 60,349
Japan | Revenue | Geographic Concentration Risk      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Concentration risk, percentage (or more) 13.00% 15.00% 16.00%
U.S.      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Foreign revenues $ 278,920 $ 249,537 $ 182,492
U.S. | Revenue | Geographic Concentration Risk      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Concentration risk, percentage (or more) 56.00% 51.00% 49.00%
Europe and Middle East      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Foreign revenues $ 42,846 $ 56,317 $ 36,352
Europe and Middle East | Revenue | Geographic Concentration Risk      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Concentration risk, percentage (or more) 9.00% 12.00% 10.00%
Other      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Foreign revenues $ 56,141 $ 52,845 $ 43,122
Other | Revenue | Geographic Concentration Risk      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Concentration risk, percentage (or more) 11.00% 11.00% 11.00%
v3.22.4
Segment and Geographic Information - Schedule of Property and Equipment, Net, by Geographical Area (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Segment Reporting Information [Line Items]    
Property and equipment, net $ 47,827 $ 57,477
U.S.    
Segment Reporting Information [Line Items]    
Property and equipment, net 42,487 51,306
Asia and other    
Segment Reporting Information [Line Items]    
Property and equipment, net $ 1,880 $ 2,474
v3.22.4
Benefit Plan - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Retirement Benefits [Abstract]      
Company contributions to 401(k) Plan $ 5.4 $ 3.6 $ 2.9