VIZIO HOLDING CORP., 10-K filed on 3/1/2023
Annual Report
v3.22.4
Cover - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Feb. 24, 2023
Jun. 30, 2022
Document Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2022    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 001-40271    
Entity Registrant Name VIZIO HOLDING CORP.    
Entity Incorporation, State or Country Code DE    
Entity Address, Address Line One 39 Tesla    
Entity Address, City or Town Irvine    
Entity Address, State or Province CA    
Entity Address, Postal Zip Code 92618    
Entity Tax Identification Number 85-4185335    
City Area Code 949    
Local Phone Number 428-2525    
Title of 12(g) Security Class A common stock, par value $0.0001 per share    
Trading Symbol VZIO    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Entity Shell Company false    
Entity Public Float     $ 744.4
Documents Incorporated by Reference Portions of the registrant's definitive Proxy Statement relating to the 2023 Annual Meeting of Stockholders are incorporated herein by reference in Part III of this Annual Report on Form 10-K where indicated. Such Proxy Statement will be filed with the Securities and Exchange Commission within 120 days of the registrant's fiscal year ended December 31, 2022.    
Entity Central Index Key 0001835591    
Document Fiscal Year Focus 2022    
Document Fiscal Period Focus FY    
Amendment Flag false    
Class A      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   118,511,897  
Class B      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   76,814,638  
Class C common stock      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   0  
v3.22.4
Audit Information
 12 Months Ended
Dec. 31, 2022
Audit Information [Abstract]  
Auditor Name KPMG LLP
Auditor Location Los Angeles, CA
Auditor Firm ID 185
v3.22.4
Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Current assets:    
Cash and cash equivalents $ 288.7 $ 331.6
Short-term investments 58.9 0.0
Accounts receivable, net 357.9 375.1
Other receivables due from related parties 2.2 5.1
Inventories 15.5 11.9
Income tax receivable 1.7 26.2
Prepaid and other current assets 53.5 84.8
Total current assets 778.4 834.7
Property, equipment and software, net 19.9 10.3
Goodwill 44.8 44.8
Deferred income taxes 51.2 30.4
Other assets 21.4 15.6
Total assets 915.7 935.8
Current liabilities:    
Accounts payable due to related parties 148.2 224.8
Accounts payable 117.2 118.9
Accrued expenses 204.9 185.8
Accrued royalties 47.4 56.8
Other current liabilities 5.5 4.8
Total current liabilities 523.2 591.1
Other long-term liabilities 18.8 14.1
Total liabilities 542.0 605.2
Commitments and contingencies (note 13)
Stockholders’ equity:    
Common stock 0.0 0.0
Additional paid in capital 366.9 323.3
Accumulated other comprehensive loss (0.3) (0.2)
Retained earnings 7.1 7.5
Total stockholders’ equity 373.7 330.6
Total liabilities and stockholders’ equity 915.7 935.8
Preferred stock    
Stockholders’ equity:    
Preferred stock $ 0.0 $ 0.0
v3.22.4
Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2022
Dec. 31, 2021
Stockholders’ equity:    
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, authorized (in shares) 1,350,000,000 1,350,000,000
Common stock, issued (in shares) 198,723,478  
Common stock, outstanding (in shares) 194,893,657  
Preferred stock    
Stockholders’ equity:    
Preferred stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Preferred stock, authorized (in shares) 100,000,000.0 100,000,000.0
Preferred stock, issued (in shares) 0 0
Preferred stock, outstanding (in shares) 0 0
Class A    
Stockholders’ equity:    
Common stock, issued (in shares) 121,900,000 116,400,000
Common stock, outstanding (in shares) 118,100,000 113,200,000
Class B    
Stockholders’ equity:    
Common stock, issued (in shares) 76,800,000 76,800,000
Common stock, outstanding (in shares) 76,800,000 76,800,000
Class C common stock    
Stockholders’ equity:    
Common stock, issued (in shares) 0 0
Common stock, outstanding (in shares) 0 0
v3.22.4
Consolidated Statements of Operations - USD ($)
shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Net revenue:      
Total net revenue $ 1,862.8 $ 2,124.0 $ 2,042.5
Cost of goods sold:      
Total cost of goods sold 1,550.3 1,797.7 1,746.1
Gross profit:      
Total gross profit 312.5 326.3 296.4
Operating expenses:      
Selling, general and administrative 220.7 286.1 115.8
Marketing 41.1 32.8 31.3
Research and development 40.8 34.2 15.1
Depreciation and amortization 3.6 2.8 2.3
Total operating expenses 306.2 355.9 164.5
Income (loss) from operations 6.3 (29.6) 131.9
Interest income, net 1.6 0.3 0.0
Other (expense) income, net (1.3) 3.0 0.5
Total non-operating income 0.3 3.3 0.5
Income (loss) before income taxes 6.6 (26.3) 132.4
Provision for income taxes 7.0 13.1 29.9
Net (loss) income $ (0.4) $ (39.4) $ 102.5
Net (loss) income per share attributable to common stockholders:      
Basic (in dollars per share) $ (0.00) $ (0.22) $ 0.56
Diluted (in dollars per share) $ (0.00) $ (0.22) $ 0.55
Weighted-average common shares outstanding:      
Basic (in shares) 193.1 175.5 144.4
Diluted (in shares) 193.1 175.5 147.0
Device      
Net revenue:      
Total net revenue $ 1,384.9 $ 1,815.3 $ 1,895.3
Cost of goods sold:      
Total cost of goods sold 1,368.9 1,699.6 1,710.8
Gross profit:      
Total gross profit 16.0 115.7 184.5
Platform+      
Net revenue:      
Total net revenue 477.9 308.7 147.2
Cost of goods sold:      
Total cost of goods sold 181.4 98.1 35.3
Gross profit:      
Total gross profit $ 296.5 $ 210.6 $ 111.9
v3.22.4
Consolidated Statements of Comprehensive (Loss) Income - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Other comprehensive (loss) income:      
Net (loss) income $ (0.4) $ (39.4) $ 102.5
Foreign currency translation adjustments (0.1) (1.1) 0.7
Comprehensive (loss) income $ (0.5) $ (40.5) $ 103.2
v3.22.4
Consolidated Statements of Stockholders' Equity - USD ($)
$ in Thousands
Total
Class A
Class B
Series A Convertible Preferred Stock
 [1]
Common Stock
Common Stock
Class A
Common Stock
Class B
Additional Paid-In Capital
Accumulated Other Comprehensive Income (Loss)
Retained Earnings (Accumulated Deficit)
Beginning balance (in shares) at Dec. 31, 2019       100,000   150,600,000 [2],[3] 0 [2],[3]      
Beginning balance at Dec. 31, 2019 $ 41,000     $ 2,400       $ 93,900 $ 200 $ (55,500)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                    
Share-based compensation expense 4,800             4,800    
Shares issued pursuant to incentive award plans, net of withholding taxes (in shares) [2],[3]           200,000        
Shares issued pursuant to incentive award plans, net of withholding taxes 200             200    
Accretion of preferred stock dividends 100     $ 200           (100)
Foreign currency translation 700               700  
Net (loss) income 102,500                 102,500
Ending balance (in shares) at Dec. 31, 2020       100,000   150,800,000 [2],[3] 0 [2],[3]      
Ending balance at Dec. 31, 2020 149,300     $ 2,600       98,900 900 46,900
Increase (Decrease) in Stockholders' Equity [Roll Forward]                    
Share-based compensation expense 134,400             134,400    
Shares issued pursuant to incentive award plans, net of withholding taxes (in shares) [2],[3]           9,500,000        
Shares issued pursuant to incentive award plans, net of withholding taxes 14,100             14,100    
Payment of preferred stock dividends (600)     $ (600)            
Conversion of preferred stock (in shares)       (100,000)   30,300,000 [2],[3]        
Conversion of preferred stock 0     $ (2,000)       2,000    
Sale of common stock, net of $13.7 million of stock issuance costs (in shares) [2],[3]           7,600,000        
Sale of common stock, net of $13.7 million of stock issuance costs $ 144,900             144,900    
Shares withheld to cover withholding taxes for stock awards (in shares) (3,200,000)         (3,200,000) [2],[3]        
Shares withheld to cover withholding taxes for stock awards $ (71,000)             (71,000)    
Conversion of Class A shares into Class B (in shares) [2],[3]           (98,300,000) 98,300,000      
Conversion of Class B shares into Class A (in shares) [2],[3]           21,500,000 (21,500,000)      
RSA Forfeiture (in shares) [2],[3]           (5,000,000.0)        
Foreign currency translation (1,100)               (1,100)  
Net (loss) income (39,400) $ (24,300) $ (15,100)             (39,400)
Ending balance (in shares) at Dec. 31, 2021       0   113,200,000 [2],[3] 76,800,000 [2],[3]      
Ending balance at Dec. 31, 2021 330,600     $ 0 $ 19     323,300 (200) 7,500
Increase (Decrease) in Stockholders' Equity [Roll Forward]                    
Share-based compensation expense 42,500             42,500    
Shares issued pursuant to incentive award plans, net of withholding taxes (in shares) [2],[3]           4,900,000        
Shares issued pursuant to incentive award plans, net of withholding taxes $ 1,100             1,100    
Shares withheld to cover withholding taxes for stock awards (in shares) (3,800,000)                  
Shares withheld to cover withholding taxes for stock awards $ (83,000)                  
Foreign currency translation (100)               (100)  
Net (loss) income (400) $ (200) $ (200)             (400)
Ending balance (in shares) at Dec. 31, 2022       0   118,100,000 [2],[3] 76,800,000 [2],[3]      
Ending balance at Dec. 31, 2022 $ 373,700     $ 0 $ 20     $ 366,900 $ (300) $ 7,100
[1] There were no shares of Preferred Stock outstanding as of December 31, 2022 and 2021
[2] As of December 31, 2022 and 2021, the par value on common stock outstanding was $20 thousand and $19 thousand, respectively
[3] There were no shares of Class C common stock issued or outstanding in any of the periods presented
v3.22.4
Consolidated Statements of Stockholders' Equity (Parenthetical)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
USD ($)
shares
Statement of Stockholders' Equity [Abstract]  
Stock issuance costs $ 13,700
Total stockholders’ equity 330,600
Common Stock  
Total stockholders’ equity $ 19
Common Stock | Class C common stock  
Shares outstanding (in shares) | shares 0
Series A Convertible Preferred Stock  
Total stockholders’ equity $ 0 [1]
Shares outstanding (in shares) | shares 0 [1]
[1] There were no shares of Preferred Stock outstanding as of December 31, 2022 and 2021
v3.22.4
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Cash flows from operating activities:      
Net (loss) income $ (0.4) $ (39.4) $ 102.5
Adjustments to reconcile net (loss) income to net cash provided by operating activities:      
Depreciation and amortization 3.6 2.8 2.3
Amortization of discount on investments (0.6) 0.0 0.0
Change in fair value of investment securities 0.9 0.0 0.0
Deferred income taxes (20.8) (3.7) 1.9
Share-based compensation expense 42.5 134.4 4.8
Change in allowance for doubtful accounts 0.1 0.0 0.0
Changes in operating assets and liabilities:      
Accounts receivable 17.0 30.5 (44.8)
Other receivables due from related parties 2.9 (4.1) 4.4
Inventories (3.7) (1.4) 2.7
Income taxes receivable 24.5 (24.9) (0.5)
Prepaid and other current assets 31.3 (30.0) (19.5)
Other assets (4.8) (1.6) (4.4)
Accounts payable due to related parties (76.6) 15.4 (16.5)
Accounts payable (1.7) (47.9) 2.1
Accrued expenses 19.1 30.5 (5.5)
Accrued royalties (9.4) (24.3) (3.6)
Other current liabilities 0.6 (0.3) 3.5
Other long-term liabilities 4.6 5.9 2.9
Net cash provided by operating activities 29.1 41.9 32.3
Cash flows from investing activities:      
Purchases of property and equipment (13.1) (4.4) (1.8)
Purchase of investments (74.9) (0.2) 0.0
Sales and maturities of investments 15.0 0.0 0.0
Net cash used in investing activities (73.0) (4.6) (1.8)
Cash flows from financing activities:      
Proceeds from exercise of stock options 12.0 12.4 0.2
Payment of dividends on Series A convertible preferred stock 0.0 (0.6) 0.0
Proceeds from IPO, net of $10.7 in direct offering costs 0.0 148.0 0.0
Payments of other offering costs 0.0 (2.8) 0.0
Withholding taxes paid on behalf of employees on net settled share-based awards (12.0) (71.0) 0.0
Proceeds from sale of stock under ESPP 1.1 1.7 0.0
Net cash provided by financing activities 1.1 87.7 0.2
Effect of exchange rate changes on cash and cash equivalents (0.1) (1.1) 0.4
Net (decrease) increase in cash and cash equivalents (42.9) 123.9 31.1
Cash and cash equivalents at beginning of year 331.6 207.7 176.6
Cash and cash equivalents at end of year 288.7 331.6 207.7
Supplemental disclosure of cash flow information:      
Cash paid for income taxes, net 3.7 36.1 27.6
Cash paid for interest 0.2 0.2 0.2
Supplemental disclosure of non-cash investing and financing activities:      
Right-of-use assets obtained in exchange for new operating lease liabilities 7.3 3.6 5.2
Cash paid for amounts included in the measurement of operating lease liabilities 3.6 2.9 2.5
IPO costs not yet paid $ 0.0 $ 0.3 $ 0.0
v3.22.4
Consolidated Statements of Cash Flows (Parenthetical) - USD ($)
$ in Millions
 12 Months Ended
Mar. 29, 2021
Dec. 31, 2022
IPO    
Direct offering costs $ 10.7 $ 10.7
v3.22.4
Organization and Nature of Business
 12 Months Ended
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization and Nature of Business Organization and Nature of Business
VIZIO Holding Corp. was incorporated as a Delaware corporation on December 7, 2020 in order to facilitate the holding company reorganization of VIZIO, Inc. and its subsidiaries (together with VIZIO Holding Corp., the “Company” or “VIZIO”). VIZIO, Inc. was incorporated in the State of California on October 21, 2002 and commenced operations in January 2003. On March 12, 2021, VIZIO Holding Corp. acquired 100% of the outstanding shares of VIZIO, Inc.
The Company develops high-performance Smart televisions (“Smart TVs”), sound bars, and accessories. These products are sold to retailers and through online channels throughout the United States. Additionally, in 2020 VIZIO launched Platform+, which is comprised of SmartCast, the Company’s award-winning Smart TV operating system, which enables a fully integrated entertainment solution, and Inscape, which powers its data intelligence and services. SmartCast delivers content and applications through an easy-to-use interface. It supports leading streaming apps and hosts the Company’s own free ad-supported video app, WatchFree+. The Company provides broad support for third-party voice platforms and second screen experiences to offer additional interactive features and experiences.
VIZIO purchases all of its products from manufacturers based in Asia. Since inception, the Company had purchased a portion of its televisions from one manufacturer who holds a noncontrolling interest in the Company through its ownership of Class A common stock; however, since 2021 the Company did not make any material purchases from this manufacturer. Since 2012, VIZIO has purchased a portion of its televisions from three manufacturers who are affiliates of an investor who holds a noncontrolling interest in the Company through its ownership of Class A common stock. These manufacturers do not have any significant voting privileges, nor sufficient seats on the Board of Directors that would enable them to significantly influence any of the Company’s strategic or operating decisions. All transactions executed with the aforementioned manufacturers are presented as related party transactions.
Reorganization Transaction
On March 12, 2021, the Company implemented a holding company structure through the merger of VIZIO Reorganization Sub, LLC, a wholly-owned subsidiary of VIZIO Holding Corp., pursuant to an agreement and plan of merger, with and into VIZIO, Inc., with VIZIO, Inc. surviving as a wholly-owned subsidiary of VIZIO Holding Corp (the “Reorganization Transaction”). As a result of the Reorganization Transaction:
•VIZIO Holding Corp. became a holding company with no material assets other than 100% of the equity interests of VIZIO, Inc.;
•Each share of Class A common stock and Series A convertible preferred stock, respectively, of VIZIO, Inc. was cancelled in exchange for the issuance of one share of Class A common stock and Series A convertible preferred stock, respectively, of VIZIO Holding Corp.;
•VIZIO Holding Corp. began consolidating the financial results of VIZIO, Inc. and its subsidiaries;
•VIZIO Holding Corp. assumed the VIZIO, Inc. 2007 Incentive Award Plan and the VIZIO, Inc. 2017 Incentive Award Plan, and the stock options and other awards granted thereunder, on a one-for-one basis and on the same terms and conditions; and
•All of the business operations continue to be conducted through VIZIO, Inc. and its subsidiaries.
Between the incorporation of VIZIO Holding Corp. on December 7, 2020 and the completion of the Reorganization Transaction, VIZIO Holding Corp. did not conduct any activities other than those incidental to its formation and preparation for the IPO (as defined below).
Forward Stock Split
On March 15, 2021, the Company amended its Amended and Restated Certificate of Incorporation to effect a nine-for-one forward stock split of the Company’s Class A common stock. The number of authorized shares of Class A common stock was proportionally increased in accordance with the nine-for-one stock split, and the par value of the Class A common stock was not adjusted as a result of this forward stock split. As a result of the stock split, each share of the Company’s Series A preferred stock became convertible into 225 shares of Class A common stock. All Class A common stock, stock options, RSUs and per share information presented within these consolidated financial statements and related notes have been adjusted to reflect this forward stock split on a retroactive basis for all periods presented.
Initial Public Offering
On March 29, 2021, the Company closed its initial public offering (“IPO”) of 12,250,000 shares of its Class A common stock at a public offering price of $21.00 per share. The Company issued and sold 7,560,000 shares of Class A common stock, and certain existing stockholders sold an aggregate of 4,690,000 shares of Class A common stock. The Company received net proceeds of approximately $144.9 million after deducting underwriting discounts and commissions of approximately
$10.7 million and offering expenses of $3.1 million. On March 31, 2021, certain existing stockholders sold an additional 1,709,274 shares of Class A common stock at $21.00 per share pursuant to the underwriters’ option to purchase additional shares. The Company did not receive any proceeds from the sale of shares by the selling stockholders.Immediately prior to the completion of the IPO, 134,736 shares of Series A redeemable convertible preferred stock then outstanding converted into 30,315,600 shares of Class A common stock. Immediately prior to the completion of the IPO, the Company filed its Amended and Restated Certificate of Incorporation, which authorizes a total of 1,000,000,000 shares of Class A common stock, 200,000,000 shares of Class B common stock, 150,000,000 shares of Class C common stock, and 100,000,000 shares of undesignated preferred stock. Immediately after the conversion and prior to the completion of the IPO, a total of 98,633,025 shares of Class A common stock held by William Wang and his respective affiliated trusts were exchanged for an equivalent number of shares of Class B common stock pursuant to the terms of certain exchange agreements. As a result, following the completion of the IPO, the Company has three classes of authorized common stock: Class A common stock, Class B common stock and Class C common stock. See Note 14 to these consolidated financial statements for further information.
v3.22.4
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
(a)Basis of Consolidation
The consolidated financial statements include the accounts of VIZIO and all subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. The Company considers the U.S. dollar as its reporting currency. The functional currency of most of the foreign subsidiaries is the U.S. dollar. Translation adjustments for subsidiaries where the functional currency is its local currency are included in other comprehensive (loss) income. Foreign currency transaction gains (losses) resulting from exchange rate fluctuation on transactions denominated in a currency other than the functional currency are reported in the consolidated statements of operations.
Reclassifications
The Company has reclassified certain amounts relating to its prior period results. In 2021, the Company reclassified research and development costs from Selling, general and administrative. Prior year amounts have been reclassified to conform to the current year presentation.
Use of Estimates
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain amounts reported in the consolidated financial statements and accompanying notes. Actual results may differ from those estimates and assumptions. Significant items subject to such estimates and assumptions include the allowances for doubtful accounts and sales returns, reserves for excess and obsolete inventory, accrued price protection and rebates, accrued royalties, share-based compensation, valuation of deferred tax assets and other contingencies. Supplier and customer concentrations also increase the degree of uncertainty inherent in these estimates and assumptions.
(b)Cash and Cash Equivalents
All highly liquid financial instruments with a remaining maturity of 90 days or less when purchased are presented as cash equivalents.
(c)Short-term investments
Short-term investments consist of U.S. treasury bills we have purchased with an original maturity date of greater than three months, but less than 12 months.
(d)Accounts Receivable and Allowance for Doubtful Accounts
Accounts receivable consist of amounts due to VIZIO from sales arrangements executed under normal business activities and are recorded at invoiced amounts which is the amount VIZIO expects to be entitled to receive. The Company presents the aggregate accounts receivable balance net of an allowance for doubtful accounts and extends credit to its customers and mitigates a portion of the Company’s credit risk through credit insurance. Generally, collateral or other security is not required for outstanding accounts receivable. Credit losses, if any, are recognized based on management’s evaluation of the aging of accounts receivable, assessment of collectibility, customer specific financial conditions as well as an evaluation of current industry trends and general economic conditions. Past-due balances are assessed by management on a monthly basis and balances are written off when the customer’s financial condition no longer warrants pursuit of collections. Although VIZIO expects to collect amounts due, actual collections may differ from estimated amounts.
(e)Concentrations of Credit Risk
Financial instruments that potentially create significant concentrations of credit risk consist principally of accounts receivable and cash in banks. The Company maintains its cash balances at various financial institutions. At times, such balances may exceed federally insured limits. No losses have been experienced in any such accounts.
(f)Inventories
Inventories are stated at the lower of cost, using the first-in, first-out method, or net realizable value. Inventories are reviewed for excess and obsolescence based upon demand forecasts for a specific time horizon. The Company records a charge to cost of goods sold for the amount required to reduce the carrying value of inventory to net realizable value. For inventories related to certain manufacturers, VIZIO may be contractually required to purchase this inventory if the product is (i) requested by VIZIO, (ii) received at the manufacturers’ warehouse on an agreed-upon receipt date, and (iii) remains unsold after a predetermined period, which generally exceeds 30 to 45 days.
(g)Property, Equipment, and Software, net
Property and equipment are recorded at historical cost, less accumulated depreciation and impairment, if applicable. Depreciation is computed using the straight-line method based upon the following estimated useful lives:
Years
Buildings39
Machinery and equipment5
Furniture and fixtures7
Computer and software3
Automobiles5
Leasehold improvements are amortized using the straight-line method over the lesser of the lease term or the estimated useful life of the assets. Maintenance and repairs are expensed as incurred.
Capitalized Software Development Costs
The Company capitalizes certain costs associated with creating and enhancing internally developed software related to the Company’s technology infrastructure and records these amounts within property, equipment and software, net. These costs include personnel related costs for employees (including salaries, bonuses, benefits, and share-based compensation) who are directly associated with and who devote time to software development projects, as well as contractor costs. Software development costs that do not qualify for capitalization are expensed as incurred and recorded as cost of goods sold, selling, general and administrative or research and development expenses in the consolidated statements of operations.
Software development activities typically consist of three stages: (1) the preliminary project stage; (2) the application development stage; and (3) the post implementation stage. Costs incurred in the preliminary and post implementation phases, including costs associated with training and repairs and maintenance, are expensed as incurred. The Company capitalizes costs associated with software developed when the preliminary project stage is completed, management implicitly or explicitly authorizes and commits to funding the project and it is probable that the project will be completed and perform as intended. Costs incurred in the application development stage, including significant enhancements and upgrades, are capitalized. Capitalization ends once a project is substantially complete and the software is ready for its intended purpose. Software development costs are amortized using a straight-line method over the estimated useful life, commencing when the software is ready for its intended use. The straight-line recognition method approximates the manner in which the expected benefit will be derived.
(h)Goodwill
Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired in a business combination. Goodwill is not amortized but is tested at least annually for impairment in the fourth quarter, or more frequently if indicators of impairment exist during the fiscal year. Events or circumstances which could trigger an impairment review include a significant adverse change in legal factors or in the business climate, loss of key customers, an adverse action or assessment by a regulator, unanticipated competition, a loss of key personnel, significant changes in the manner of the Company’s use of the acquired assets or the strategy for its overall business, significant negative industry or economic trends, or significant underperformance relative to expected historical or projected future results of operations. The Company assessed the conclusion regarding segments and reporting units in conjunction with its annual goodwill impairment test, which is performed on the first day of the fourth quarter, and has determined that it has one reporting unit for the purposes of allocating and testing goodwill. All of the Company’s goodwill is attributable to the Platform+ reporting unit.
When testing goodwill for impairment, the Company first performs a qualitative assessment. If the Company determines it is more likely than not that a reporting unit’s fair value is less than the carrying amount, then a one-step impairment test is required. If the Company determines it is not more likely than not a reporting unit’s fair value is less than the carrying amount, then no further analysis is necessary. To identify whether impairment exists, the Company compares the estimated fair value of the reporting unit with the carrying amount, including goodwill. If the estimated fair value of the reporting unit exceeds the carrying amount, goodwill is not considered to be impaired. If, however, the fair value of the reporting unit is less than the carrying amount, then such balance would be recorded as an impairment loss. Any impairment loss is limited to the carrying amount of goodwill within the entity. There has been no impairment of goodwill for any periods presented.
(i)Leases
The Company determines whether an arrangement is a lease at contract inception. Operating lease right-of-use assets are included in other assets, and lease liabilities are included in other current liabilities and other long-term liabilities in the Company’s consolidated balance sheets. Operating lease charges are recorded in selling, general and administrative expenses in the consolidated statements of operations.
Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of the future lease payments over the lease term at the commencement date. The Company does not separate lease and non-lease components for all underlying asset classes. As most of the Company’s leases do not provide a readily determinable implicit rate, it estimates the incremental borrowing rate, using the formula for the interest rate on the Company’s collateralized borrowing at the point in time of lease start or the adoption date (whichever is later), to discount the lease payments based on information available at lease commencement. The Company determines the incremental borrowing rate for each lease based primarily on the lease term and the economic environment of the applicable country or region. The operating lease right-of-use asset also includes any prepaid lease payments and is reduced by existing lease incentive balances upon adoption. The Company does not include the cost of lease extensions in the right-of-use asset until it is reasonably certain such an option will be executed, and the cost can be determined. The Company recognizes lease expense for lease payments over the lease term, while variable lease payments, such as common area maintenance, are recognized as incurred. The Company elected the practical expedient to not recognize operating lease right-of-use assets and operating lease liabilities that arise from short-term leases (i.e., leases with a term of 12 months or less).
(j)Revenue Recognition
The Company applies a five-step approach as defined in Financial Accounting Standards Board (“FASB”) ASC 606, Revenue from Contracts with Customers (Topic 606), in determining the amount and timing of revenue to be recognized: (1) identifying the contract with a customer; (2) identifying the performance obligations in the contract; (3) determining the transaction price; (4) allocating the transaction price to the performance obligations in the contract; and (5) recognizing revenue when the corresponding performance obligation is satisfied.
Device Net Revenue
The Company derives revenue primarily from the sale of televisions and sound bars. Revenue is recognized when control of the promised goods or services is transferred to the Company’s retailers, in an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services.
The Company sells its products to certain retailers under terms that allow the retailer to receive price protection on future price reductions and may provide for limited rights of return and discounts.
Each distinct promise to transfer products is considered to be an identified performance obligation for which revenue is recognized at a point in time upon transfer of control of the products to the retailer. Transfer of control occurs upon shipment or delivery to the retailer. Point in time recognition is determined as products to be sold represent an asset with an alternative use. Warranty returns have not been material, and warranty-related services are not considered a separate performance obligation.
Pricing adjustments and estimates of returns are treated as variable consideration for purposes of determining the transaction price. Sales returns are generally accepted at the Company’s discretion. Variable consideration is estimated using the most likely amount considering all reasonably available information, including the Company’s historical experience and current expectations, and is reflected in the transaction price when sales are recorded. Revenue recorded excludes taxes collected on sales to retailers.
Accounts receivable represents the unconditional right to receive consideration from retailers. Substantially all payments are collected within the Company’s standard terms, which do not include a significant financing component. There have been no material impairment losses on accounts receivable in any of the periods presented. There have been no material contract assets or contract liabilities recorded on the consolidated balance sheet in any of the periods presented.
All of the Company’s products are directly shipped by vessel from manufacturers to third-party logistics and distribution centers in the United States. Generally, the Company ships the product to its retailers with freight carriers contracted by the Company. Shipping terms on sales of products are generally FOB destination but may vary depending upon the related contractual arrangement with the retailers. Amounts billed to retailers for shipping and handling costs are included in net revenue.
Platform+ Net Revenue
The Company generates Platform+ revenue through sales of advertising and other services, such as content distribution, subscription and transaction revenue shares, promotions, sales of branded channel buttons on remote controls and data licensing arrangements. The Company’s digital advertising inventory consists of inventory on WatchFree+ and its home screen along with ad inventory it obtains through its content provider and other third-party application agreements. The Company also re-sells video inventory that it purchases from content publishers and directly sells third-party inventory on a revenue share or cost-per-thousand (“CPM”) basis.
Revenue for advertising and related services is primarily generated by the sale of video and display advertising. Advertising is sold directly on a CPM basis and is evidenced by an Insertion Order (“IO”). The Company recognizes revenue as the number of impressions is measured and delivered, up to the amount identified in the IO. An IO may include multiple performance obligations to the extent it contains distinct advertising products or services. Advertising inventory may also be sold programmatically by which net revenues generated by the Company’s supply-side platforms are recognized. The Company recognizes revenue for advertising and related services on either a gross or net basis based on its determination as to whether it is acting as the principal in the revenue generation process or as an agent.
Subscription and transaction revenue is generated through revenue share agreements with content providers. These revenue share agreements generally apply to new subscriptions for accounts that sign up for new services or for purchases or rentals through the Company’s SmartCast operating system. The Company recognizes revenue on a net basis as it is deemed to be the agent between content publishers and consumers.
The Company sells content publishers placements of buttons on its remote controls that provide one-touch access to a third-party applications’ content. The Company typically receives a fixed fee per button for each TV and remote package sold or individually packaged remote unit sold over a defined distribution period. The Company’s only performance obligations for these arrangements are placement of the app button on the remote and delivery of the TV and remote to the retailer. Revenue is recognized at the point in time which transfer of title to the retailer occurs.
For revenue from data licensing agreements with customers, the Company provides a right to access the entity's intellectual property as it exists throughout the license period. Control of each distinct data license transfers when it is uploaded or delivered to the customer. Data is delivered at least on a monthly basis during the data delivery phase of the contract. The transaction price for data services revenue includes both fixed and variable consideration. The performance obligations are satisfied over time during the license period. Revenue for the fixed consideration is recognized ratably beginning upon the first delivery of data throughout the remainder of the contract. Variable consideration is recorded when it is earned in accordance with the sales or usage-based royalty exception.
(k)Shipping and Handling Costs
All shipping and handling costs related to purchases of inventory are included in the purchase price of each product negotiated with the manufacturer and recorded in inventory and classified in cost of goods sold. All shipping and handling costs charged to customers are treated as fulfillment costs and are presented within cost of goods sold.
(l)Recycling Costs
The Company incurs recycling costs in order to comply with electronic waste recycling programs within certain states. These fees are assessed by the states using current market share and actual costs incurred on administration of such programs and are expensed as incurred. Recycling costs were $5.2 million, $7.9 million, and $9.3 million for the years ended December 31, 2022, 2021 and 2020, respectively, and are recorded in cost of goods sold in the accompanying consolidated statements of operations.
(m)Customer Allowances
The Company periodically grants certain sales discounts and incentives to customers, such as rebates and price protection, which are treated as variable consideration for purposes of determining the transaction price. In certain instances, the Company will, in turn, negotiate with its manufacturers for reimbursement of a portion of the incentives so that the manufacturers are responsible for absorbing some of the rebates and price protection. The Company’s procedures for estimating customer allowances recorded as a reduction of revenue are based upon historical experience, as adjusted for the current environment, and management judgment. Customer allowances are accrued for when the related product sale is recognized. The accrued customer allowances are presented on the consolidated balance sheets in accrued expenses and recorded in the consolidated statements of operations as a reduction of net revenue.
The Company offers sales incentives through various programs, consisting primarily of discounts, cooperative advertising and market development fund programs. The Company records cooperative advertising and market development fund programs with customers as a reduction to revenue unless the Company receives a distinct benefit in exchange for credits claimed by the customer and can reasonably estimate the fair value of the benefit received. These arrangements are recorded as accrued liabilities. Cooperative advertising arrangements recorded as a reduction of net revenue totaled $7.2 million, $3.1 million and $6.6 million for the years ended December 31, 2022, 2021 and 2020, respectively.
(n)Selling, general and administrative
Selling, general and administrative expenses consist primarily of personnel related costs for employees, including salaries, bonuses, benefits, and share-based compensation, as well as consulting expenses, fees for professional services, facilities and information technology.
(o)Marketing Costs
Marketing expenses consist primarily of advertising and marketing promotions of the Company’s brand and products, including merchandising and display costs, media advertisement costs, promotional material creation costs, trade show and event costs, and sponsorship costs.
(p)Research and Development Costs
Research and development expense consists primarily of employee-related costs, including salaries and bonuses, share-based compensation expense, and employee benefits costs, third-party contractor costs, and related allocated overhead costs. In certain cases, costs are incurred to purchase materials and equipment for future use in research and development efforts. These costs are capitalized and expensed as consumed.
(q)Product Warranty
All products have a one or two-year limited warranty against manufacturing defects and workmanship. Although the Company is principally responsible for servicing warranty claims, substantially all product warranty expenses are reimbursed by the manufacturers under the Company’s standard product supply agreements.
(r)Income Taxes
Income taxes are accounted for using the asset and liability method. Under this method, deferred income tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained upon examination. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. Valuation allowances are recorded against tax assets when it is determined that it is more likely than not that the assets will not be realized. Interest related to income taxes is recorded in other income, net and penalties are recorded in selling, general and administrative expense.
The Company makes estimates, assumptions and judgments to determine its provision for income taxes and also for deferred tax assets and liabilities and any valuation allowances recorded against deferred tax assets. Actual future operating results and the underlying amount and type of income could differ materially from the Company’s estimates, assumptions and judgments thereby impacting its consolidated financial position and results of operations.
(s)Net (Loss) Income Per Share
The Company computes earnings per share (“EPS”) of Class A and Class B common stock using the two-class method for participating securities.
Basic (loss) earnings per share attributable to common stockholders is calculated by dividing net (loss) income attributable to common stockholders by the weighted-average number of Class A and Class B common shares outstanding. Diluted (loss) earnings per share attributable to common stockholders adjusts the basic (loss) earnings per share attributable to common stockholders and the weighted-average number of common shares outstanding for the potentially dilutive impact of RSUs and stock options using the treasury stock method.
(t)Share-Based Compensation
Share-based compensation expense resulting from grants of employee stock options, restricted stock awards and restricted stock units (“RSUs”) is recognized in the consolidated financial statements based on the respective grant date fair values of the awards. Stock option grant date fair values are estimated using the Black-Scholes-Merton option pricing model. The grant date fair value of the Company's RSUs is determined based on the fair value of the Company's common stock on the date of grant. Forfeitures are accounted for as they occur.
Under the Black-Scholes-Merton model, the determination of the grant date fair value of share-based awards is affected by the estimated fair value per share of our common stock as well as other subjective assumptions, the expected term of the share-based awards, expected stock price volatility, risk-free interest rates, and expected dividend yield. Generally, these assumptions are based on historical information and judgment is required to determine if historical trends may be indicators of future outcomes. As a result, if factors change or the Company uses different assumptions, share-based compensation expense could be materially different in the future.
(u)Recently Issued Accounting Guidance
Recent Accounting Standards Adopted:
In December 2019, the Financial Accounting Standards Board “(FASB”) issued guidance, Accounting Standards Update (“ASU”) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, to reduce complexity in accounting standard. The guidance simplifies the accounting for income taxes by removing certain exceptions to the general principles in Accounting Standards Codification Topic 740 (“ASC 740”) as well as by improving consistent application of the topic by clarifying and amending existing guidance. This standard was effective for us for the year ended December 31, 2021. The adoption of this standard did not result in a material impact to our consolidated financial statements upon adoption.
The Company reviewed all other recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact to its Consolidated Financial Statements.
(v)Subsequent Events
In connection with the preparation of these consolidated financial statements, the Company evaluated any subsequent events after the balance sheet date of December 31, 2022 and through March 1, 2023, the date that the financial statements were available to be issued.
v3.22.4
Net Revenue
 12 Months Ended
Dec. 31, 2022
Risks and Uncertainties [Abstract]  
Net Revenue Net Revenue
The Company derives revenue primarily from the sale of televisions and sound bars, advertising and data services.
The Company has recorded $22.0 million of contract assets, which are recorded in other current assets in the accompanying consolidated balance sheets as of December 31, 2022. There were no material contract assets as of December 31, 2021. There were also no material contract liabilities as of December 31, 2022 or 2021. Contract assets and liabilities represent differences in the timing of billing compared to revenue recognized. Additionally, no costs associated with obtaining contracts with customers were capitalized, nor any costs associated with fulfilling its contracts. All costs to obtain contracts were expensed as incurred as a practical expedient.
Significant Customers
The Company is a wholesale distributor of televisions and other home entertainment products, which are sold to leading retailers and wholesale clubs in North America, primarily in the United States. The Company’s sales can be impacted by consumer spending and the cyclical nature of the retail industry.
The following customers accounted for more than 10% of net revenue in at least one of the fiscal years presented:
Year Ended
December 31,
202220212020
Net Revenue:
Customer A38 %40 %46 %
Customer B8 %11 %11 %
Customer C13 %12 %12 %
Customer D10 %10 %10 %
Customer E2 %5 %10 %
Customer A and Customer C are affiliates under common control with one another. Collectively, they comprised 51%, 52% and 58% of the Company’s net revenue for the years ended December 31, 2022, 2021 and 2020, respectively.
v3.22.4
Investments
 12 Months Ended
Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]  
Investments Investments
The Company purchased U.S. Treasury bills within the current year, which are recorded in Short-term investments in the accompanying consolidated balance sheets. We are classifying these securities as held-to-maturity as management has the intent and ability to hold to maturity and as such, are carried at amortized cost. As of December 31, 2022, the maturity dates of all U.S Treasury bills were within 12 months. We review these securities for other-than-temporary impairment at least quarterly or when there are changes in credit risk or other potential valuation concerns. During the year ended December 31, 2022, the Company did not recognize any impairment losses related to these securities. There were no such securities as of December 31, 2021.
The following table summarizes the Company’s short-term investments:
As of December 31, 2022
MaturityAmortized CostGross Unrealized GainsGross Unrealized LossesEstimated Fair Value
(In millions)
U.S. Treasury bills
1 year or less
$58.9 $— $(0.2)$58.7 
Total$58.9 $— $(0.2)$58.7 
v3.22.4
Accounts Receivable
 12 Months Ended
Dec. 31, 2022
Receivables [Abstract]  
Accounts Receivable Accounts Receivable
Accounts receivable consists of the following:
As of
December 31,
20222021
(In millions)
Accounts receivable$358.1 $375.2 
Allowance for doubtful accounts(0.2)(0.1)
Total accounts receivable, net of allowances$357.9 $375.1 
The Company maintains credit insurance on certain accounts receivable balances to mitigate collection risk for these customers. The Company evaluates all accounts receivable for allowance for doubtful accounts. For the year ended December 31, 2022, the Company recorded bad debt expense of $0.1 million. For the year ended December 31, 2021, bad debt expense was immaterial.
The following customers account for more than 10% of accounts receivable in at least one of the fiscal years presented:
As of
December 31,
20222021
Accounts receivable:
Customer A38 %44 %
Customer B6 %10 %
Customer C12 %10 %
Customer A and Customer C, are affiliates under common control with one another. Collectively, they comprised 50% and 54% of our total accounts receivable as of December 31, 2022 and 2021, respectively.
v3.22.4
Inventories
 12 Months Ended
Dec. 31, 2022
Inventory Disclosure [Abstract]  
Inventories Inventories
Inventories consist of the following:
As of
December 31,
20222021
(In millions)
Inventory on hand$12.6 $5.3 
Inventory in transit2.9 6.6 
Total inventory$15.5 $11.9 
Significant Manufacturers
The Company purchases a significant amount of its product inventory from certain manufacturers. The inventory is purchased under standard product supply agreements that outline the terms of the product delivery. Once all aspects of the product are agreed upon, the manufacturers are then responsible for transporting the product to their warehouses located in the United
States. The manufacturers are considered the importers of record and are required to insure the product as it is shipped to the warehouses. The title and risk of loss of the product typically passes to the Company upon shipment from the manufacturer’s warehouse in the United States to the customer. The product supply agreement stipulates that the manufacturer will (i) generally reimburse the Company for at least a portion of the price protection or sales concessions negotiated between the Company and customers on product purchased, and (ii) indemnify the Company against all liability resulting from valid and enforceable patent infringement with regard to product purchased under the agreement except if such infringement arises out of the Company’s modification or misuse of the product.
The Company has the following significant concentrations related to suppliers:
Year Ended
December 31,
20222021
Inventory purchases:
Supplier A22 %28 %
Supplier B – related party9 %13 %
Supplier C15 %8 %
Supplier D – related party45 %40 %
The Company is currently reliant upon these manufacturers for products. Although the Company can obtain products from other sources, the loss of a significant manufacturer could have a material impact on the Company’s financial condition and results of operations as the products that are being purchased may not be available on the same terms from another manufacturer.
The Company has also recorded other receivables of $3.0 million and $5.6 million due from the manufacturers as of December 31, 2022 and 2021, respectively. These amounts are in other receivables due from related parties and other current assets on our consolidated balance sheet. The other receivable balances are attributable to price protection and customer allowances as well as accrued royalties due in connection with the settlement of certain patent infringement cases for units shipped, which are indemnified by the Company’s manufacturers and are recognized at the time the aforementioned liabilities are incurred. The net effect is recorded in the consolidated statements of operations as a reduction to cost of goods sold.
v3.22.4
Property, Equipment and Software
 12 Months Ended
Dec. 31, 2022
Property, Plant and Equipment [Abstract]  
Property, Equipment and Software Property, Equipment and Software
Property, equipment and software consist of the following:
As of
December 31,
20222021
(In millions)
Building$10.1 $10.1 
Machinery and equipment2.0 1.6 
Leasehold improvements4.2 3.6 
Furniture and fixtures4.7 3.2 
Computer and software17.7 22.7 
Construction in progress4.8 — 
Total property, equipment and software43.5 41.2 
Less accumulated depreciation and amortization(23.6)(30.9)
Total property, equipment and software, net$19.9 $10.3 
Depreciation and amortization expense for fixed assets was $3.6 million, $2.8 million and $2.3 million for the years ended December 31, 2022, 2021 and 2020, respectively.
v3.22.4
Segment Information
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment Information Segment InformationOperating segments are components of an enterprise for which discrete financial reporting information is available and evaluated regularly by the chief operating decision maker (CODM) in deciding how to allocate resources and in assessing performance. The Company has identified its Chief Executive Officer as the CODM. The CODM views the Company’s operations and manages the businesses as two operating segments, which are also the Company’s reportable segments: (i) Device, and (ii) Platform+. The CODM reviews the operating results of these segments on a regular basis and allocates company resources to these two segments based on the needs of each segment and the availability of resources. The Company assesses its determination of operating segments at least annually.Segment revenue and gross profit are disclosed on the face of the statement of operations.
v3.22.4
Goodwill
 12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill Goodwill The Company’s goodwill balance was $44.8 million as of December 31, 2022 and 2021. The goodwill balance was determined based on the excess of the purchase price paid over the fair value of the identifiable net assets acquired and represents its future revenue and earnings potential and certain other assets acquired that do not meet the recognition criteria, such as assembled workforce. No goodwill impairment was recorded for the years ended December 31, 2022, 2021 and 2020.
v3.22.4
Accrued Expenses
 12 Months Ended
Dec. 31, 2022
Payables and Accruals [Abstract]  
Accrued Expenses Accrued Expenses
The Company’s accrued expenses consisted of the following:
As of
December 31,
20222021
(In millions)
Accrued price protection$57.6 $67.2 
Accrued other customer related expenses49.5 48.4 
Accrued supplier/partner related expenses54.0 39.2 
Accrued payroll expenses36.1 21.6 
Accrued other expenses7.7 9.4 
Total accrued expenses$204.9 $185.8 
v3.22.4
Accrued Royalties
 12 Months Ended
Dec. 31, 2022
Payables and Accruals [Abstract]  
Accrued Royalties Accrued Royalties
VIZIO is engaged in, and in certain cases has settled, various claims and suits alleging the infringement of patents related to certain television technology that were initiated by television manufacturers and other nonmanufacturers. In connection with the disposition of some of these claims and suits, the Company has entered into, or may enter into, license arrangements, which may include royalty payments to be made for historical and/or prospective sales of the Company’s products. Certain of these settlements have included cross-licenses, covenants not to sue, and litigation holds.
To the extent that VIZIO is indemnified under its product supply agreements with its manufacturers, the Company has offset intellectual property expenses and recorded amounts as other receivable balances included in other current assets. Historically, VIZIO has been contractually indemnified and reimbursed by its manufacturers for most intellectual property royalty obligations and commitments. The Company will make future payments for the licensed technologies with funding received from the manufacturers, either through direct reimbursement from the manufacturers or payment of the net purchase price, as these royalty payments become due. In certain circumstances, VIZIO has the contractual ability to renegotiate the annual license fee in future years if certain unit sales volumes are not met in a given year.
A summary of future commitments on royalty obligations as of December 31, 2022 is as follows (in millions):
2023$8.4 
20245.2 
20253.0 
20260.5 
2027 and thereafter
— 
Total$17.1 
For potential future settlements related to historical sales for which the Company does not expect to be reimbursed, a reserve of $24.8 million and $32.5 million has been recorded as of December 31, 2022 and 2021, respectively, as part of accrued royalties. Any patent infringement lawsuit in which VIZIO is not indemnified is expensed when management determines that it is probable that a liability has been incurred and the amount is estimable.
In certain instances, the Company administers refundable deposits on behalf of its manufacturers for asserted intellectual property infringement claims and related active litigation in accordance with the terms of the supply agreements. The use of the refundable deposits is limited to the resolution or settlement of these claims and active cases. Management reviews the nature of these claims and active cases with the manufacturers on a periodic basis. The deposit amounts received and recorded are determined and adjusted quarterly based on mutual consent of both parties and using all available information at that time. In the event of an unfavorable resolution or settlement that exceeds the amount recorded as a refundable deposit, the excess shall be paid by VIZIO and then reimbursed by the manufacturer in accordance with the contractual indemnification provisions in the product supply agreement. Refundable deposits of $22.6 million and $24.3 million have been recorded as of December 31, 2022 and 2021, respectively, which are presented within accrued royalties in the consolidated balance sheets.
In the ordinary course of business, management anticipates that VIZIO will be party to various claims and suits including disputes arising over intellectual property rights and other matters. The Company intends to vigorously defend against such claims and suits; however, the ultimate outcome of such claims may remain unknown for some time. Based on all of the information available to date, management does not believe that there are any claims or suits that would have a material adverse effect on the Company’s financial condition, results of operations, or liquidity.
v3.22.4
Leases
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Leases Leases
The Company has various non-cancelable operating leases for its corporate and satellite offices primarily in the United States. These leases expire at various times through 2027.
The table below presents supplemental balance sheet information related to the Company’s operating leases as follows (in millions, except lease term and discount rate):
As of
December 31,
Classification20222021
Assets:
Right of use assetsOther assets$14.0 $8.9 
Liabilities:
Lease liabilities-currentOther current liabilities$3.5 $2.4 
Lease liabilities-noncurrentOther long-term liabilities$11.5 $6.5 
Weighted Average Remaining Lease term4.1 years4.2 years
Weighted Average Discount Rate4.90 %3.70 %
The following operating lease costs were included in the Company’s consolidated statements of operations:
Year Ended
December 31,
202220212020
(In millions)
Operating lease costs$5.4 $4.1 $2.8 
The table below reconciles the undiscounted cash flows of the operating leases to the operating lease liabilities recorded on the consolidated balance sheet as of December 31, 2022.
(In millions)
2023$4.4 
20244.1 
20253.7 
20263.1 
2027 and thereafter
1.4 
Total minimum lease payments16.7 
Less imputed interest(1.7)
Total lease liabilities$15.0 
The future lease payments above exclude future minimum sublease income due under noncancelable subleases as of December 31, 2022 which are not material.
VIZIO has a 13% ownership interest in Spyglass Tesla LLC (Spyglass), a corporation that owns and manages the building in which VIZIO maintains its corporate headquarters in Irvine, California. Spyglass is principally owned by two related parties, and VIZIO does not have significant influence over the operations and governance of Spyglass. As such, the Company accounts for the $0.5 million investment in the members’ equity of Spyglass as an investment in equity securities without a readily determinable fair value, which is included in other assets in the consolidated balance sheets as of December 31, 2022 and 2021. Additionally, VIZIO is party to a noncancelable operating lease with Spyglass, which will expire in January 2027. Net rent expense under this operating lease was approximately $1.0 million, $0.7 million and $1.0 million for the years ended December 31, 2022, 2021 and 2020, respectively.
In 2011, the Company purchased a building adjacent to the corporate headquarters and in 2015, the Company leased a building near the corporate headquarters. The Company leases and subleases available office space in those buildings to manufacturers and other third parties and recognizes rental income. For the years ended December 31, 2022, 2021 and 2020, rental income from tenants was approximately $0.4 million in each year.
v3.22.4
Commitment and Contingencies
 12 Months Ended
Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
(a)Volume Commitments
Certain product supply agreements include a volume supply commitment on up to 13 weeks of inventory forecasted by the Company. Management provides periodic forecasts to manufacturers at which time they consider the first 13 weeks of supply to be committed. As of December 31, 2022, no liabilities were recorded related to this supply commitment.
(b)Revolving Credit Facility
The Company is party to a credit agreement with Bank of America, N.A. (as amended, the “Credit Agreement”), which provides for a revolving credit line of up to $50.0 million, maturing April 13, 2024, for the purposes of repurchasing certain outstanding shares of common stock held by a related party supplier and other general business requirements, including working capital. The Company’s indebtedness to Bank of America, N.A. under the Credit Agreement is collateralized by substantially all of the Company’s assets. In addition to extending the maturity date to April 13, 2024, the amendment to the Credit Agreement, which the Company entered into on April 13, 2021, contained (i) an update to provide for use of a LIBOR successor rate and (ii) a change in the definition of Availability Reserve and Borrowing Base. In connection with the amendment, the Company paid a fee of $75,000 in the second quarter of 2021.
Unused fees related to this line of credit were not material in any of the years presented. The Company is in compliance with all required financial covenants as of December 31, 2022 and 2021.
(c)Legal Matters
Advanced Micro Devices, Inc. (AMD) presented the Company with a claim letter dated May 11, 2015 in which AMD claimed the Company is infringing its patents that cover graphics processing and semiconductor technologies. On January 23 and 24, 2017, respectively, AMD filed complaints in the U.S. District Court for the District of Delaware and the International Trade Commission (ITC) alleging infringement of AMD’s U.S. patents. On August 22, 2018, the ITC ruled against VIZIO and recommended limited exclusion and cease and desist orders. On August 30, 2018, the parties entered into a settlement agreement including payments of $39.0 million in total, and the cases were subsequently dismissed. Of the $39.0 million settlement outlined in the agreement, $15.0 million was negotiated to apply to the release for units shipped prior to the effective date of the agreement which is indemnified by VIZIO’s suppliers. This is reflected in the first three payments due to AMD under the license, which were paid by the end of 2018. Payments beginning with the fourth payment are scheduled on an annual basis in May of each subsequent calendar year for payment of ongoing license from September 2018 and included in accrued royalties in note 11 to these consolidated financial statements. In connection with the IPO, approximately $14.0 million in payments were accelerated and paid during second quarter of 2021.
In November 2020, the Company entered into a settlement agreement with AmTRAN Technology Co., Ltd., or AmTRAN and one of its subsidiaries. AmTRAN was a beneficial holder of more than 5% of the Company’s Series A convertible preferred stock. Pursuant to the settlement agreement, the Company agreed, among other things, to pay AmTRAN approximately $8.2 million. In return, on November 23, 2020 AmTRAN terminated its security agreement. AmTRAN further agreed to pay outstanding fees owed by it for IP licenses related to the manufacturing of the Company’s devices. The parties further agreed that VIZIO would continue to maintain a reserve for payment of future claims attributable to devices manufactured by AmTRAN. As of December 31, 2022, VIZIO continued to maintain this reserve, subject to further reconciliation and distribution.
On August 20, 2021, Maxell, Ltd. and Maxell Holdings, Ltd. (collectively, “Maxell”) filed a complaint in United States District Court for the Central District of California against the Company alleging the Company's TVs infringe several of their patents related to various television-related technologies. See Maxell, Ltd., et al. v. VIZIO, Inc., Case No. 2:21-cv-6758 (C.D. Cal.). This case is in the discovery stage. The Company disputes the claims and intends to defend the lawsuit vigorously.
Additionally, on September 15, 2022, Maxell filed a complaint with the International Trade Commission against the Company alleging the Company's TVs infringe several of its patents related to various television-related technologies, and on October 18, 2022, the International Trade Commission instituted an investigation based on Maxell’s complaint. See In the Matter of Certain Smart Televisions, Inv. No. 337-TA-1338 (ITC). This investigation is in the discovery stage. The Company disputes the claims and intends to defend the investigation vigorously.
On October 24, 2022, DivX, LLC filed a complaint with the International Trade Commission against Amazon.com, Inc. and the Company alleging certain Amazon.com, Inc.’s products and the Company's TVs infringe several of its patents related to certain streaming media-related technologies. See In the Matter of Certain Video Processing Devices and Components Thereof, Inv. No. 337-TA-1343 (ITC). On October 24, 2022, DivX, LLC also filed a companion complaint in United States District Court for the Central District of California against the Company alleging the Company's TVs infringe the same patents. See DivX, LLC v. VIZIO, Inc., Case No. 8:22-cv-01955 (C.D. Cal.). The ITC matter is in the discovery stage, while the district court case has been stayed pending the outcome of the ITC investigation. The Company disputes the claims and intends to defend the matters vigorously.
v3.22.4
Stockholders' Equity
 12 Months Ended
Dec. 31, 2022
Equity [Abstract]  
Stockholders' Equity Stockholders’ Equity
Convertible Preferred Stock
Pursuant to the terms of the Company’s Amended and Restated Certificate of Incorporation, which became effective on March 29, 2021 in connection with the closing of the IPO (the “Restated Certificate”) the Company’s Board of Directors is authorized to issue up to an aggregate of 100,000,000 shares of undesignated preferred stock, par value $0.0001 per share, in one or more series and to fix or alter the designations, preferences, rights and any qualifications, limitations or restrictions of the shares of each of these series including the dividend rights, dividend rates, conversion rights, voting rights, term of redemption, including sinking fund provisions, redemption price or prices, liquidation preferences and the number of shares constituting any series or designations of a series without further vote or action by the stockholders.
Series A Convertible Preferred Stock
On March 29, 2021, in connection with the closing of the Company’s IPO, all 134,736 shares of Series A convertible preferred stock outstanding immediately prior to the IPO were converted into an aggregate of 30,315,600 shares of Class A common stock and recorded in the consolidated balance sheet to common stock and additional paid-in capital. Additionally, approximately $0.6 million in dividends accumulated through the conversion date were paid to the holders of outstanding shares of Series A convertible preferred stock as of immediately prior to the closing of the IPO. As of the effectiveness of the Amended and Restated Certificate of Incorporation on March 29, 2021, there are no shares of the Series A convertible preferred stock authorized for issuance.
The Series A convertible preferred stock was issued with the following terms:
Voting Rights: The holders of convertible preferred stock has no voting rights but were entitled to participate as one class of stock in the election of one member of the Company’s Board of Directors.
Dividend Rate: The holders of Series A convertible preferred stock were entitled to receive cumulative dividends in preference to any dividends on the Company’s outstanding common stock at the per annum rate of 6% of the stated value when and as declared by the Board of Directors. Accumulated preferred dividends were $0 and $0.6 million at December 31, 2022 and 2021, respectively.
Conversion Feature: Each share of Series A convertible preferred stock was automatically convertible into shares of common stock upon the occurrence of an underwritten public offering resulting in aggregate net proceeds of at least $15,000 and pursuant to a registration statement under the Securities Act of 1933 or on any recognized foreign exchange. Each share of Series A convertible preferred stock shall be converted by dividing the initial issuance price by the conversion price upon the commencement of a transaction as defined above. The conversion price was the initial issuance price as adjusted for any anti-dilution provisions as defined in the articles of incorporation.
Liquidation Preference: The holders of the preferred stock were entitled to receive, in preference to the holders of the common stock, a per share amount equal of $14.84 plus all declared but unpaid dividends on such shares. After the holders of the Series A convertible preferred stock receive their full liquidation preference, only then shall all other stockholders be entitled to share in the remaining proceeds based on the number of shares held.
Common Stock
As of December 31, 2022, pursuant to the terms of the Restated Certificate, the Company is authorized to issue 1,350,000,000 shares of common stock with $0.0001 par value, of which 198,723,478 shares are issued and 194,893,657 outstanding. The Company has three classes of authorized common stock, Class A common stock, Class B common stock and Class C common stock. The rights of the holders of Class A common stock, Class B common stock, and Class C common stock are identical, except with respect to voting and conversion.
The Company’s common stock includes the following terms:
Voting rights: Holders of the Company’s Class A common stock and Class B common stock have identical rights, provided that, except as otherwise expressly provided in the Company’s amended and restated certificate of incorporation or required by
applicable law, on any matter that is submitted to a vote of its stockholders, the holders of Class A common stock are entitled to one vote per share of Class A common stock and holders of Class B common stock are entitled to 10 votes per share of Class B common stock. Holders of the Company’s Class C common stock are not entitled to vote on any matter that is submitted to a vote of stockholders, except as otherwise required by law.
Dividends: The holders of the Company’s common stock are entitled to share equally, on a per share basis, in any dividends declared by its board of directors out of legally available funds, subject to the rights of holders of preferred stock, if any, and the terms of any existing or future agreements between the Company and its lenders. Dividends may not be paid on common stock unless all accrued dividends on preferred stock, if any, have been paid or declared and set aside.
Liquidation: In the event of a liquidation, dissolution or winding up, holders of the Company’s common stock are entitled to share equally, on a per share basis, in all assets legally available for distribution after payment of all debts and other liabilities, and subject to the prior rights of any holders of outstanding shares of preferred stock, if any.
Change of control transactions: In any merger, consolidation or business combination with or into another corporation or other business entity, whether or not the Company is the surviving corporation, the consideration per share to be received by holders of common stock in such merger, consolidation or business combination must be identical, except that in any such transaction in which shares of capital stock are distributed, such shares may differ as to voting rights to the extent and only to the extent that the voting rights of the Company’s common stock differ as provided in its amended and restated certificate of incorporation.
Subdivisions and combinations: If the Company in any manner subdivide or combine the outstanding shares of one class of common stock, its amended and restated certificate of incorporation requires that the outstanding shares of the other class of common stock will be subdivided or combined in the same manner.
Conversion of Class B Common Stock: Each share of Class B common stock will be convertible into one fully paid and nonassessable share of Class A common stock at the option of the holder at any time and upon any sale or other disposition of each such share of Class B common stock whether or not for value, except certain transfers to entities, to the extent the transferor retains sole dispositive power and exclusive voting control with respect to the shares of Class B common stock, and certain other transfers described in the amended and restated certificate of incorporation. Additionally, each outstanding share of Class B common stock will convert on the date fixed by the board of directors that is no less than 61 days and no more than 180 days following (i) the first time that Mr. Wang and his affiliates hold less than the 25% Ownership Threshold; (ii) following the date on which Mr. Wang is terminated for cause (as defined in the Company’s amended and restated certificate of incorporation); or (iii) the date upon which (A) Mr. Wang is no longer providing services to us as the Company’s Chief Executive Officer and (B) Mr. Wang is no longer a member of the Company’s Board of Directors, either as a result of Mr. Wang’s voluntary resignation or as a result of a request or agreement by Mr. Wang not to be re-nominated as a member of the Company’s board of directors at a meeting of its stockholders. Additionally, shares of Class B common stock will convert automatically at the close of business on the date that is 12 months after the death or permanent and total disability of Mr. Wang, during which 12-month period the shares of its Class B common stock shall be voted as directed by a person designated by Mr. Wang and approved by the board of directors (or if there is no such person, then the secretary then in office).
Conversion of Class C Common Stock: After the conversion or exchange of all outstanding shares of the Company’s Class B common stock into shares of Class A common stock, all outstanding shares of Class C common stock will convert automatically into Class A common stock, on a share-for-share basis, on the date or time specified by the holders of a majority of the outstanding shares of Class A common stock, voting as a separate class.
v3.22.4
Share-Based Compensation
 12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Share-Based Compensation Share-Based CompensationIn August 2017, the Company’s Board of Directors adopted the 2017 Incentive Award Plan (as amended, the “2017 Plan”), which provides for the granting of qualified and nonqualified stock options, restricted stock awards, restricted stock units, dividend equivalents, stock appreciation rights and other share-based awards. The 2017 Plan was amended and restated prior to the Company’s IPO. The 2017 Plan reserves for issuance to eligible employees, directors and consultants a total of (i) 24,446,502 shares of common stock in addition to (ii) the number of shares that, as of the date the 2017 Plan was originally adopted, were available for issuance under the 2007 Plan (as described below), plus (iii) the number of shares subject to awards outstanding under the 2007 Plan as of the date the 2017 Plan was originally adopted, that on or after that date, are forfeited or otherwise terminate or expire for any reason without the issuance of shares to the holders of the awards; provided, that the maximum number of shares of Class A common stock that may be added to the number of shares reserved under the 2017 Plan under clauses (ii) and (iii) is 40,520,655 shares. The primary purpose of the 2017 Plan is to enhance the Company’s ability to attract, motivate, and retain the services of qualified employees, officers, and directors. Any stock options or stock appreciation rights granted under the Plan will have a term of not more than 10 years and the vesting of the awards are set at the discretion of the Board of Directors but is not expected to exceed four years for any grant.
The Company’s 2007 Incentive Award Plan (the “2007 Plan”), which the Board of Directors had adopted in 2007, was terminated in connection with the adoption of the 2017 Plan. Any outstanding awards that had been granted under the 2007 Plan prior to its termination remain outstanding, subject to the terms of the 2007 Plan and awards agreements, until such awards vest and are exercised (as applicable) or until they terminate or expire by their terms. As of December 31, 2022, options to purchase a total of 718,757 shares of Class A common stock remained outstanding and subject to the terms of the 2007 Plan. The awards under the 2007 Plan have a term of not more than 10 years and the vesting of the awards was set at the discretion of the Board of Directors upon grant but is not expected to exceed four years for any grant. All awards are subject to forfeiture within 90 days if employment or other services terminate prior to the vesting of the awards. Grants are no longer permitted from the 2007 Plan.
Fair Value Measurement
Prior to the IPO, the fair value of the shares of common stock underlying the stock options and RSUs had historically been determined by the Company’s board of directors as there was no public market for the underlying common stock. The Company’s board of directors determined the fair value of the Company’s common stock by considering a number of objective and subjective factors including: contemporaneous third-party valuations of its common stock, the valuation of comparable companies, sales of the Company’s common and redeemable convertible preferred stock to outside investors in arms-length transactions (including the IPO), the Company’s operating and financial performance, the lack of marketability, and the general and industry specific economic outlook, amongst other factors. After the completion of the IPO, the fair value of the Company's Class A common stock is determined based on the New York Stock Exchange ("NYSE") closing price on the date of grant.
The grant date fair value of stock options are estimated using the Black-Scholes-Merton option pricing model. The grant date fair value of the Company's RSUs is determined based on the fair value of the Company's common stock on the date of grant.
Stock Option Awards
The Company has two equity incentive plans as noted above, the 2017 Plan and the 2007 Plan, collectively, the “Plans”. A summary of the status of the Company’s stock option plans for the years ended December 31, 2022 and 2021 is presented below:
Number of SharesWeighted Average Exercise PriceWeighted Average Remaining Contractual Life (years)Aggregate Intrinsic Value
(In millions, except years and per share amounts)
Outstanding as of December 31, 202016.4 $4.16 7.1$71.9 
Granted2.9 18.55 
Exercised(4.0)3.15 $23.6 
Forfeited(0.9)11.67 
Outstanding as of December 31, 202114.4 6.80 6.8$181.4 
Granted5.0 8.99 
Exercised(3.2)3.39 $26.7 
Forfeited(1.3)10.99 
Cancelled(0.5)$8.60 
Outstanding as of December 31, 202214.4 $3.88 7.0$54.1 
Stock options vested and exercisable as of December 31, 20227.6 $2.80 5.4$36.1 
Year Ended
December 31,
20222021
Weighted average grant date fair value of stock options granted during the year$4.00$9.22
A summary of the nonvested stock options for the years ended December 31, 2022 and 2021 are as follows:
Number of SharesWeighted Average Grant Date Fair Value
(In millions)
Nonvested as of December 31, 20207.1 $1.64 
Granted2.9 9.22 
Forfeited(0.8)6.53 
Vested(4.0)4.02 
Nonvested as of December 31, 20215.2 6.24 
Granted5.0 4.00 
Forfeited(1.3)5.62 
Cancelled(0.4)8.60 
Vested(1.7)1.13 
Nonvested as of December 31, 20226.8 $5.10 
The following provides information on the weighted-average assumptions used for stock options granted during the years ended December 31, 2022, 2021, and 2020 as follows (shares in millions):
Year Ended
December 31,
202220212020
Number of options granted5.02.94.1
Volatility factor45.8 %43.0 %40.5 %
Expected term6.25 years6.25 years6.25 years
Dividend yield0.8 %1.1 %2.4 %
Risk-free interest rate2.8 %1.1 %0.4 %
Fair market value per share of common stock approved by the Company’s Board of Directors at the time of grant$8.99 $21.19 $7.33 
Fair market value per option determined using a Black-Scholes-Merton Option pricing model for purposes of determining compensation expense$4.00 $9.22 $2.22 
The assumptions above include those used in determining the fair value of the December 2020 and February 2021 stock option awards for which the Company recognized additional share based compensation expense prior to the IPO which is further discussed below. The Company will recognize as expense the value of the options over the required service period from grant date, which is generally four years.
As of December 31, 2022, the Company had $27.9 million of unrecognized compensation costs related to stock options, which is expected to be recognized over a weighted-average vesting period of approximately 1.9 years.
Restricted Stock Awards
Effective October 29, 2010, the Board of Directors granted a total of 4,995,000 restricted stock awards to the Company’s Chief Executive Officer and Chief Operating Officer with a stock price of $1.93 per share. The restricted stock awards vest and become nonforfeitable ratably over a four-year period assuming VIZIO made its first public offering of common stock pursuant to a registration statement filed with the Securities and Exchange Commission during this period. Under the terms of the grant, if a public offering did not occur within the four-year vesting period, the restricted stock awards would remain outstanding and unvested for an additional three-year period and all shares would vest contingent upon an initial public offering. If after seven years, VIZIO was not successful at completing an initial public offering, all of the restricted stock awards would forfeit. Effective April 25, 2017, the forfeiture date on these awards was extended to December 31, 2020. In estimating the fair value of the common stock at the grant date, the Company engaged an independent valuation specialist to assist in determining the stock price.
On October 8, 2019, the Board of Directors granted a total of 234,000 restricted stock awards to members of senior management with a stock price of $5.39 per share. Under the terms of the grant, the vesting of the restricted stock awards was in four equal installments on the later of (x) grant date anniversary over four years or (y) the date of the IPO. For the years ended December 31, 2022 and 2021, the Company expensed $0.3 million and $0.7 million related to these awards, respectively.
Restricted Stock Units
RSU activity for the years ended December 31, 2022 and 2021 was as follows:
Number of SharesWeighted Average Grant Date Fair Value
(In millions)
Outstanding as of December 31, 20202.0 $8.54 
Granted7.8 $20.65 
Released(5.4)$17.58 
Forfeited(0.3)$23.21 
Outstanding as of December 31, 20214.1 $20.45 
Granted5.7 9.56
Released(2.0)19.41
Forfeited(1.3)15.55
Cancelled(0.2)$8.60 
Outstanding as of December 31, 20226.3 $12.16 
The grant-date fair value of restricted stock units granted during the years ended December 31, 2022 and 2021 was $54.3 million and $160.6 million, respectively. The Company will recognize as expense the value of the restricted stock units over the required service period from grant date, which is generally four years. The grant-date fair value of restricted stock units that vested during the year ended December 31, 2022 and 2021 was $38.0 million and $126.8 million, respectively. Total unrecognized compensation cost related to restricted stock units as of December 31, 2022 was $75.0 million which the Company expects to recognize over a weighted-average period of approximately 2.0 years.
Employee Stock Purchase Plan
On March 25, 2021, the Company established an employee stock purchase plan (the “2021 ESPP”) and reserved 1,800,000 shares of Class A common stock for issuance under this plan. The 2021 ESPP is intended to qualify as an “employee stock purchase plan” within the meaning of Section 423 of the Internal Revenue Code for U.S. employees. The number of shares of common stock available for issuance under the 2021 ESPP will be increased on the first day of each calendar year, beginning in 2022, in a number of shares of common stock equal to the least of (i) 5,400,000 shares of common stock, (ii) one percent (1%) of the outstanding shares of all classes of the Company’s common stock on the last day of the immediately preceding fiscal year, or (iii) an amount determined by the Company.
Under the 2021 ESPP, employees are eligible to purchase the Company’s common stock through payroll deductions of up to 10% of their eligible compensation, subject to any plan limitations. Unless otherwise determined by the Company’s board of directors, the purchase price of the shares will be 85% of the lower of the fair market value of our common stock on the first trading day of each offering period or on the purchase date, subject to a limit of the lesser of (i) 1,000 shares of our common stock, or (ii) $12,500 divided by the fair market value of our common stock as of the first day of the offering period. For the years ended December 31, 2022 and 2021, the Company recognized approximately $0.9 million and $0.6 million, respectively, in stock based compensation expense related to the ESPP. As of December 31, 2022 and 2021, 305,190 and 94,739 shares of the Company’s common stock have been issued under this plan, respectively.
Share-based Compensation Expense
For the December 2020 and February 2021 stock options grants, the fair value of the Company’s common stock based on a third-party valuation was $8.54 per share however, after consideration of the difference between $8.54, the per share fair value of the Company’s Class A common stock used to record share-based compensation for certain equity awards granted in December 2020 and February 2021, and $22.00, which was the midpoint of the price range set forth on the cover page of the Company’s preliminary prospectus related to the Company’s IPO, the Company used a linear interpolated fair value from $8.54 to $22.00 to measure additional share-based compensation expense for its option and RSU grants made in December 2020, February 2021 and March 2021. As a result, the Company recorded additional share-based compensation expense of approximately $58.2 million in the year ended December 31, 2021. The Company expects to recognize additional share-based compensation expense of approximately $2.1 million and $1.7 million for the years ending December 31, 2023 and 2024, respectively, for the unvested portion of the December 2020 and February 2021 grants.
In August 2022, the Company entered into partial equity award cancellation agreements with three employees, which cancelled portions of stock options covering 0.5 million shares of the Company’s common stock and 0.2 million RSUs. The cancelled portions of these awards were unvested. The partial cancellation of these options and RSUs resulted in $3.2 million of additional share-based compensation expense being recognized upon cancellation related to the remaining unrecognized compensation.
Stock compensation expense for the years ended December 31, 2022, 2021 and 2020 of $42.5 million, $134.4 million, and $4.8 million, respectively, was recognized in the consolidated statements of operations. Of this amount, approximately $3.6 million and $2.9 million was allocated to cost of goods sold and research and development expense, for the years ended December 31, 2022 and 2021, respectively. The majority of this allocation was recognized as selling, general and administrative expense in the consolidated statements of operations. There was no such allocation for the year ended December 31, 2020.
Treasury stock
In connection with the vesting of share-based payment awards for certain employees, the Company agreed to withhold shares of common stock from these employees to cover the cost of the income tax withholdings due upon release of the awards. The total common stock withheld during the years ended December 31, 2022 and 2021, was 3.8 million and 3.2 million shares. As of December 31, 2022 and 2021, approximately $83.0 million and $71.0 million, respectively, is recorded as treasury stock as a reduction to additional paid-in capital in the consolidated balance sheets. The value of the treasury stock was measured based on closing market price of the common stock on the vest date. The treasury shares were not cancelled and are still considered issued as of December 31, 2022.
v3.22.4
Income Taxes
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The components of Provision for income taxes consist of the following:
Year Ended
December 31,
202220212020
(In millions)
Current:
Federal$20.9 $14.7 $23.7 
State6.2 1.5 4.3 
Foreign0.7 0.6 — 
Total current income tax expense27.8 16.8 28.0 
Deferred:
Federal(17.6)(2.2)1.9 
State(3.2)(1.5)— 
Total deferred income tax (benefit) expense(20.8)(3.7)1.9 
Total$7.0 $13.1 $29.9 
The tax effects of temporary differences that give rise to significant portions of deferred tax assets (liabilities) are as follows:
As of
December 31,
20222021
(In millions)
Deferred tax assets:
Accrued intellectual property$5.4 $5.9 
Stock compensation3.1 3.1 
Accrued rebates8.6 10.7 
Accrued legal fees1.6 1.9 
Accrued recycling fees2.9 2.9 
Accrued other1.7 1.5 
Leases2.5 2.1 
NOL carryforwards2.2 2.2 
Section 174 R&D capitalization24.9 — 
Other3.0 4.6 
55.9 34.9 
Less valuation allowance(1.1)(2.0)
Deferred tax assets$54.8 $32.9 
Deferred tax liabilities:
Federal impact of state taxes$(1.4)$(0.6)
Depreciation and amortization(2.2)(1.9)
Deferred tax liabilities(3.6)(2.5)
Net deferred tax assets$51.2 $30.4 
As of December 31, 2022, the Company has gross federal and state net operating loss carryforwards of $3.1 million and $10.4 million, respectively, which, if unused, will expire in years 2027 through 2037. A portion of the net operating losses are subject to annual limitations as a result of past acquisitions, which constitutes a change of ownership as defined under Internal Revenue Code Section 382. The Company believes that it is more likely than not that VIZIO will generate earnings in the future and will be able to realize the benefit of the net operating losses.
As of December 31, 2022 the Company has California net operating loss of $0.9 million and Federal and California tax credit carryforwards of $0.1 million generated from the pre-acquisition years and has provided a valuation allowance of $1.0 million of those California carryforwards since its entity’s relative apportionment percentage is effectively zero due to intercompany sales elimination for the combined group filing. The state tax credit has no expiration date.
The change to the valuation allowance was primarily due to an expired capital loss carryover, adjustment of the deferred tax assets related to foreign net operating losses, and the change in the state effective tax rates. VIZIO has maintained a valuation allowance of $0.8 million on the deferred tax assets related to state and foreign net operating losses and research and development credit carryforwards.
The income tax provision differs from the amount obtained by applying the statutory tax rate as follows:
As of
December 31,
202220212020
(In millions)
Income tax provision at statutory rate$1.4 $(5.5)$27.8 
State income taxes (net of federal benefit)2.2 2.5 4.8 
Permanent tax differences3.6 17.8 (0.1)
Tax differential on foreign earnings0.1 0.1 (0.4)
Tax credits(1.2)(6.9)(2.7)
Tax contingencies0.3 4.6 1.0 
Prior year adjustments0.6 0.3 (0.2)
Other— 0.2 (0.3)
Total provision for income taxes$7.0 $13.1 $29.9 
As of December 31, 2022, VIZIO has $7.3 million in liabilities for unrecognized tax benefits inclusive of penalties. A reconciliation of the beginning and ending amount of unrecognized tax benefits, exclusive of penalties, is as follow:
As of
December 31,
20222021
(In millions)
Unrecognized tax benefit at January 1$7.0 $2.9 
Gross increases – tax position in prior period— 4.1 
Gross increases – tax position in current period0.4 — 
Settlement(0.7)— 
Unrecognized tax benefit at December 31$6.7 $7.0 
As of December 31, 2022 and 2021, unrecognized tax benefits of $6.3 million and $6.8 million, respectively, would affect the effective tax rate if recognized.
The total amount of interest and penalties related to unrecognized tax benefits in the consolidated statements of operations is $(0.2) million, $0.1 million and $0.6 million for the years ended December 31, 2022, 2021 and 2020, respectively. The total amount of interest and penalties related to unrecognized tax benefits in the consolidated balance sheets is $1.1 million and $1.3 million as of December 31, 2022 and 2021, respectively.
The Company recorded a provision for income taxes of $7.0 million resulting in an effective tax rate of 106%. The effective tax rate differs from the statutory tax rate of 21% primarily due to approximately $4.0 million for share-based compensation expense and the compensation deduction limitation on certain executive officers as a publicly held corporation included in permanent book-to-tax difference.
The Company files income tax returns in the U.S. federal, state and foreign jurisdictions. For federal tax purposes, there is a 3-year statute of limitations and the Company is no longer subject to U.S. federal tax examinations for years prior to 2018 since the IRS federal income tax audit for 2015, 2016, and 2017 was completed in 2022. The Company is currently under audit for the Pennsylvania 2019 and 2020 state income tax returns. Although timing of the resolution and/or closure of the audit is not certain, the Company does not believe it is reasonably possible that its unrecognized tax benefits would materially change in the next 12 months. An uncertain tax position has been recognized for the proposed audit adjustments in the period ended December 31, 2022. The Company also files income tax returns in various foreign jurisdictions. The following tax years remain subject to examinations:
Major jurisdictionOpen years
China2019-2021
Mexico2017-2021
v3.22.4
Net (Loss) Income Per Share
 12 Months Ended
Dec. 31, 2022
Earnings Per Share [Abstract]  
Net (Loss) Income Per Share Net (Loss) Income Per Share
The basic and diluted (loss) earnings per common share is presented in conformity with the two-class method required for participating securities and multiple classes of shares.
The Company considered the preferred shares and unvested options granted under the 2017 Plan to be participating securities. For each period presented, cumulative preferred dividends earned on preferred stock (where applicable) are subtracted from net (loss) income in calculating the net (loss) income attributable to common stockholders. For any period in which the Company records net income, undistributed earnings allocated to the participating securities are subtracted from net income in determining net income attributable to common stockholders. The undistributed earnings have been allocated based on the participation rights of preferred shares, common shares, and unvested stock options under the 2017 Incentive Plan as if the earnings for the year have been distributed. For periods in which the Company recognizes a net loss, undistributed losses are allocated only to common shares as the participating securities do not contractually participate in the Company’s losses. Basic (loss) earnings per share is computed by dividing the net (loss) income attributable to common stockholders by the weighted-average number of common shares outstanding during the period. Participating securities are excluded from basic weighted-average common shares outstanding.
Diluted (loss) earnings per share represents net (loss) income divided by the weighted-average number of common shares outstanding, inclusive of the effect of potential common shares, if dilutive. For the years ended December 31, 2022 and 2021, the potential dilutive shares were not included in the computation of diluted (loss) earnings per common share as the effect of including these shares in the calculation would have been anti-dilutive. For the year ended December 31, 2020, the potential dilutive shares relating to outstanding stock options were included in the computation of diluted earnings.
Basic and diluted (loss) earnings per share and the weighted-average shares outstanding have been computed for all periods as shown below:
Year Ended
December 31,
202220212020
Class AClass BClass AClass B
Numerator(In millions, except per share amounts)
Net (loss) income$(0.2)$(0.2)$(24.3)$(15.1)$102.5 
Less: Undistributed accumulated dividends on preferred shares— — — — (0.1)
Undistributed earnings(0.2)(0.2)(24.3)(15.1)102.4 
Less: Undistributed earnings attributable to participating securities— — — — (22.2)
Net (loss) income attributable to common shareholders$(0.2)$(0.2)$(24.3)$(15.1)$80.2 
Denominator
Weighted-average common shares116.3 76.8 108.1 67.4 144.4 
Weighted-average effect of dilutive securities:
Employee stock options and RSUs— — — — 2.6 
Weighted average common shares outstanding-diluted116.3 76.8 108.1 67.4 147.0 
Basic net (loss) income per share attributable to common stockholders$(0.00)$(0.00)$(0.22)$(0.22)$0.56 
Diluted net (loss) income per share attributable to common stockholders$(0.00)$(0.00)$(0.22)$(0.22)$0.55 
Anti-dilutive equity awards under stock-based award plans excluded from the determination of diluted EPS20.8 17.1 — 5.1 
v3.22.4
Defined Contribution Retirement Plan
 12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
Defined Contribution Retirement Plan Defined Contribution Retirement PlanVIZIO maintains a 401(k) defined contribution plan allowing eligible U.S.-based employees to contribute up to an annual maximum amount as set periodically by the Internal Revenue Service. The Company provides for solely discretionary matching contributions on the employee deferred amounts. In the year ended December 31, 2022, the Company approved discretionary matching contributions of $2.6 million which will be funded in 2023. For the years ended December 31, 2021 and 2020, the Company approved discretionary matching contributions of $1.8 million and $0.9 million respectively, which were funded in March 2022 and 2021, respectively.
v3.22.4
Other Income, Net
 12 Months Ended
Dec. 31, 2022
Other Income and Expenses [Abstract]  
Other Income, Net Other Income, NetOn December 15, 2021, VIZIO entered into a Confidential Release and Settlement Agreement with a former insurance provider to settle a dispute regarding an insurance claim made in connection with the 2015 Cognitive Media Networks litigation. Under the Settlement Agreement, the Company agreed to abandon all past, present and future claims relating to the matter in return for $3.5 million in gross proceeds. The Company received the payment in 2021 and recognized net proceeds of $2.9 million as other income, net in the consolidated statements of operations.
v3.22.4
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Basis of Consolidation Basis of Consolidation The consolidated financial statements include the accounts of VIZIO and all subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. The Company considers the U.S. dollar as its reporting currency. The functional currency of most of the foreign subsidiaries is the U.S. dollar. Translation adjustments for subsidiaries where the functional currency is its local currency are included in other comprehensive (loss) income. Foreign currency transaction gains (losses) resulting from exchange rate fluctuation on transactions denominated in a currency other than the functional currency are reported in the consolidated statements of operations.
Reclassifications
Reclassifications
The Company has reclassified certain amounts relating to its prior period results. In 2021, the Company reclassified research and development costs from Selling, general and administrative. Prior year amounts have been reclassified to conform to the current year presentation.
Use of Estimates
Use of Estimates
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain amounts reported in the consolidated financial statements and accompanying notes. Actual results may differ from those estimates and assumptions. Significant items subject to such estimates and assumptions include the allowances for doubtful accounts and sales returns, reserves for excess and obsolete inventory, accrued price protection and rebates, accrued royalties, share-based compensation, valuation of deferred tax assets and other contingencies. Supplier and customer concentrations also increase the degree of uncertainty inherent in these estimates and assumptions.
Cash and Cash Equivalents Cash and Cash Equivalents
All highly liquid financial instruments with a remaining maturity of 90 days or less when purchased are presented as cash equivalents.
(c)Short-term investments
Short-term investments consist of U.S. treasury bills we have purchased with an original maturity date of greater than three months, but less than 12 months.
Accounts Receivable and Allowance for Doubtful Accounts Accounts Receivable and Allowance for Doubtful AccountsAccounts receivable consist of amounts due to VIZIO from sales arrangements executed under normal business activities and are recorded at invoiced amounts which is the amount VIZIO expects to be entitled to receive. The Company presents the aggregate accounts receivable balance net of an allowance for doubtful accounts and extends credit to its customers and mitigates a portion of the Company’s credit risk through credit insurance. Generally, collateral or other security is not required for outstanding accounts receivable. Credit losses, if any, are recognized based on management’s evaluation of the aging of accounts receivable, assessment of collectibility, customer specific financial conditions as well as an evaluation of current industry trends and general economic conditions. Past-due balances are assessed by management on a monthly basis and balances are written off when the customer’s financial condition no longer warrants pursuit of collections. Although VIZIO expects to collect amounts due, actual collections may differ from estimated amounts.
Concentrations of Credit Risk Concentrations of Credit RiskFinancial instruments that potentially create significant concentrations of credit risk consist principally of accounts receivable and cash in banks. The Company maintains its cash balances at various financial institutions. At times, such balances may exceed federally insured limits. No losses have been experienced in any such accounts.
Inventories InventoriesInventories are stated at the lower of cost, using the first-in, first-out method, or net realizable value. Inventories are reviewed for excess and obsolescence based upon demand forecasts for a specific time horizon. The Company records a charge to cost of goods sold for the amount required to reduce the carrying value of inventory to net realizable value. For inventories related to certain manufacturers, VIZIO may be contractually required to purchase this inventory if the product is (i) requested by VIZIO, (ii) received at the manufacturers’ warehouse on an agreed-upon receipt date, and (iii) remains unsold after a predetermined period, which generally exceeds 30 to 45 days.
Property, Equipment, and Software, net Property, Equipment, and Software, net
Property and equipment are recorded at historical cost, less accumulated depreciation and impairment, if applicable. Depreciation is computed using the straight-line method based upon the following estimated useful lives:
Years
Buildings39
Machinery and equipment5
Furniture and fixtures7
Computer and software3
Automobiles5
Leasehold improvements are amortized using the straight-line method over the lesser of the lease term or the estimated useful life of the assets. Maintenance and repairs are expensed as incurred.
Capitalized Software Development Costs
Capitalized Software Development Costs
The Company capitalizes certain costs associated with creating and enhancing internally developed software related to the Company’s technology infrastructure and records these amounts within property, equipment and software, net. These costs include personnel related costs for employees (including salaries, bonuses, benefits, and share-based compensation) who are directly associated with and who devote time to software development projects, as well as contractor costs. Software development costs that do not qualify for capitalization are expensed as incurred and recorded as cost of goods sold, selling, general and administrative or research and development expenses in the consolidated statements of operations.
Software development activities typically consist of three stages: (1) the preliminary project stage; (2) the application development stage; and (3) the post implementation stage. Costs incurred in the preliminary and post implementation phases, including costs associated with training and repairs and maintenance, are expensed as incurred. The Company capitalizes costs associated with software developed when the preliminary project stage is completed, management implicitly or explicitly authorizes and commits to funding the project and it is probable that the project will be completed and perform as intended. Costs incurred in the application development stage, including significant enhancements and upgrades, are capitalized. Capitalization ends once a project is substantially complete and the software is ready for its intended purpose. Software development costs are amortized using a straight-line method over the estimated useful life, commencing when the software is ready for its intended use. The straight-line recognition method approximates the manner in which the expected benefit will be derived.
Goodwill Goodwill Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired in a business combination. Goodwill is not amortized but is tested at least annually for impairment in the fourth quarter, or more frequently if indicators of impairment exist during the fiscal year. Events or circumstances which could trigger an impairment review include a significant adverse change in legal factors or in the business climate, loss of key customers, an adverse action or assessment by a regulator, unanticipated competition, a loss of key personnel, significant changes in the manner of the Company’s use of the acquired assets or the strategy for its overall business, significant negative industry or economic trends, or significant underperformance relative to expected historical or projected future results of operations. The Company assessed the conclusion regarding segments and reporting units in conjunction with its annual goodwill impairment test, which is performed on the first day of the fourth quarter, and has determined that it has one reporting unit for the purposes of allocating and testing goodwill. All of the Company’s goodwill is attributable to the Platform+ reporting unit. When testing goodwill for impairment, the Company first performs a qualitative assessment. If the Company determines it is more likely than not that a reporting unit’s fair value is less than the carrying amount, then a one-step impairment test is required. If the Company determines it is not more likely than not a reporting unit’s fair value is less than the carrying amount, then no further analysis is necessary. To identify whether impairment exists, the Company compares the estimated fair value of the reporting unit with the carrying amount, including goodwill. If the estimated fair value of the reporting unit exceeds the carrying amount, goodwill is not considered to be impaired. If, however, the fair value of the reporting unit is less than the carrying amount, then such balance would be recorded as an impairment loss. Any impairment loss is limited to the carrying amount of goodwill within the entity. There has been no impairment of goodwill for any periods presented.
Leases Leases
The Company determines whether an arrangement is a lease at contract inception. Operating lease right-of-use assets are included in other assets, and lease liabilities are included in other current liabilities and other long-term liabilities in the Company’s consolidated balance sheets. Operating lease charges are recorded in selling, general and administrative expenses in the consolidated statements of operations.
Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of the future lease payments over the lease term at the commencement date. The Company does not separate lease and non-lease components for all underlying asset classes. As most of the Company’s leases do not provide a readily determinable implicit rate, it estimates the incremental borrowing rate, using the formula for the interest rate on the Company’s collateralized borrowing at the point in time of lease start or the adoption date (whichever is later), to discount the lease payments based on information available at lease commencement. The Company determines the incremental borrowing rate for each lease based primarily on the lease term and the economic environment of the applicable country or region. The operating lease right-of-use asset also includes any prepaid lease payments and is reduced by existing lease incentive balances upon adoption. The Company does not include the cost of lease extensions in the right-of-use asset until it is reasonably certain such an option will be executed, and the cost can be determined. The Company recognizes lease expense for lease payments over the lease term, while variable lease payments, such as common area maintenance, are recognized as incurred. The Company elected the practical expedient to not recognize operating lease right-of-use assets and operating lease liabilities that arise from short-term leases (i.e., leases with a term of 12 months or less).
Revenue Recognition and Customer Allowances Revenue Recognition
The Company applies a five-step approach as defined in Financial Accounting Standards Board (“FASB”) ASC 606, Revenue from Contracts with Customers (Topic 606), in determining the amount and timing of revenue to be recognized: (1) identifying the contract with a customer; (2) identifying the performance obligations in the contract; (3) determining the transaction price; (4) allocating the transaction price to the performance obligations in the contract; and (5) recognizing revenue when the corresponding performance obligation is satisfied.
Device Net Revenue
The Company derives revenue primarily from the sale of televisions and sound bars. Revenue is recognized when control of the promised goods or services is transferred to the Company’s retailers, in an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services.
The Company sells its products to certain retailers under terms that allow the retailer to receive price protection on future price reductions and may provide for limited rights of return and discounts.
Each distinct promise to transfer products is considered to be an identified performance obligation for which revenue is recognized at a point in time upon transfer of control of the products to the retailer. Transfer of control occurs upon shipment or delivery to the retailer. Point in time recognition is determined as products to be sold represent an asset with an alternative use. Warranty returns have not been material, and warranty-related services are not considered a separate performance obligation.
Pricing adjustments and estimates of returns are treated as variable consideration for purposes of determining the transaction price. Sales returns are generally accepted at the Company’s discretion. Variable consideration is estimated using the most likely amount considering all reasonably available information, including the Company’s historical experience and current expectations, and is reflected in the transaction price when sales are recorded. Revenue recorded excludes taxes collected on sales to retailers.
Accounts receivable represents the unconditional right to receive consideration from retailers. Substantially all payments are collected within the Company’s standard terms, which do not include a significant financing component. There have been no material impairment losses on accounts receivable in any of the periods presented. There have been no material contract assets or contract liabilities recorded on the consolidated balance sheet in any of the periods presented.
All of the Company’s products are directly shipped by vessel from manufacturers to third-party logistics and distribution centers in the United States. Generally, the Company ships the product to its retailers with freight carriers contracted by the Company. Shipping terms on sales of products are generally FOB destination but may vary depending upon the related contractual arrangement with the retailers. Amounts billed to retailers for shipping and handling costs are included in net revenue.
Platform+ Net Revenue
The Company generates Platform+ revenue through sales of advertising and other services, such as content distribution, subscription and transaction revenue shares, promotions, sales of branded channel buttons on remote controls and data licensing arrangements. The Company’s digital advertising inventory consists of inventory on WatchFree+ and its home screen along with ad inventory it obtains through its content provider and other third-party application agreements. The Company also re-sells video inventory that it purchases from content publishers and directly sells third-party inventory on a revenue share or cost-per-thousand (“CPM”) basis.
Revenue for advertising and related services is primarily generated by the sale of video and display advertising. Advertising is sold directly on a CPM basis and is evidenced by an Insertion Order (“IO”). The Company recognizes revenue as the number of impressions is measured and delivered, up to the amount identified in the IO. An IO may include multiple performance obligations to the extent it contains distinct advertising products or services. Advertising inventory may also be sold programmatically by which net revenues generated by the Company’s supply-side platforms are recognized. The Company recognizes revenue for advertising and related services on either a gross or net basis based on its determination as to whether it is acting as the principal in the revenue generation process or as an agent.
Subscription and transaction revenue is generated through revenue share agreements with content providers. These revenue share agreements generally apply to new subscriptions for accounts that sign up for new services or for purchases or rentals through the Company’s SmartCast operating system. The Company recognizes revenue on a net basis as it is deemed to be the agent between content publishers and consumers.
The Company sells content publishers placements of buttons on its remote controls that provide one-touch access to a third-party applications’ content. The Company typically receives a fixed fee per button for each TV and remote package sold or individually packaged remote unit sold over a defined distribution period. The Company’s only performance obligations for these arrangements are placement of the app button on the remote and delivery of the TV and remote to the retailer. Revenue is recognized at the point in time which transfer of title to the retailer occurs.
For revenue from data licensing agreements with customers, the Company provides a right to access the entity's intellectual property as it exists throughout the license period. Control of each distinct data license transfers when it is uploaded or delivered to the customer. Data is delivered at least on a monthly basis during the data delivery phase of the contract. The transaction price for data services revenue includes both fixed and variable consideration. The performance obligations are satisfied over time during the license period. Revenue for the fixed consideration is recognized ratably beginning upon the first delivery of data throughout the remainder of the contract. Variable consideration is recorded when it is earned in accordance with the sales or usage-based royalty exception.
Customer AllowancesThe Company periodically grants certain sales discounts and incentives to customers, such as rebates and price protection, which are treated as variable consideration for purposes of determining the transaction price. In certain instances, the Company will, in turn, negotiate with its manufacturers for reimbursement of a portion of the incentives so that the manufacturers are responsible for absorbing some of the rebates and price protection. The Company’s procedures for estimating customer allowances recorded as a reduction of revenue are based upon historical experience, as adjusted for the current environment, and management judgment. Customer allowances are accrued for when the related product sale is recognized. The accrued customer allowances are presented on the consolidated balance sheets in accrued expenses and recorded in the consolidated statements of operations as a reduction of net revenue. The Company offers sales incentives through various programs, consisting primarily of discounts, cooperative advertising and market development fund programs. The Company records cooperative advertising and market development fund programs with customers as a reduction to revenue unless the Company receives a distinct benefit in exchange for credits claimed by the customer and can reasonably estimate the fair value of the benefit received. These arrangements are recorded as accrued liabilities. Cooperative advertising arrangements recorded as a reduction of net revenue totaled $7.2 million, $3.1 million and $6.6 million for the years ended December 31, 2022, 2021 and 2020, respectively.
Shipping and Handling Costs Shipping and Handling CostsAll shipping and handling costs related to purchases of inventory are included in the purchase price of each product negotiated with the manufacturer and recorded in inventory and classified in cost of goods sold. All shipping and handling costs charged to customers are treated as fulfillment costs and are presented within cost of goods sold.
Recycling Costs Recycling CostsThe Company incurs recycling costs in order to comply with electronic waste recycling programs within certain states. These fees are assessed by the states using current market share and actual costs incurred on administration of such programs and are expensed as incurred. Recycling costs were $5.2 million, $7.9 million, and $9.3 million for the years ended December 31, 2022, 2021 and 2020, respectively, and are recorded in cost of goods sold in the accompanying consolidated statements of operations.
Selling, general and administrative Selling, general and administrativeSelling, general and administrative expenses consist primarily of personnel related costs for employees, including salaries, bonuses, benefits, and share-based compensation, as well as consulting expenses, fees for professional services, facilities and information technology.
Marketing Costs Marketing CostsMarketing expenses consist primarily of advertising and marketing promotions of the Company’s brand and products, including merchandising and display costs, media advertisement costs, promotional material creation costs, trade show and event costs, and sponsorship costs.
Research and Development Costs Research and Development CostsResearch and development expense consists primarily of employee-related costs, including salaries and bonuses, share-based compensation expense, and employee benefits costs, third-party contractor costs, and related allocated overhead costs. In certain cases, costs are incurred to purchase materials and equipment for future use in research and development efforts. These costs are capitalized and expensed as consumed.
Product Warranty Product WarrantyAll products have a one or two-year limited warranty against manufacturing defects and workmanship. Although the Company is principally responsible for servicing warranty claims, substantially all product warranty expenses are reimbursed by the manufacturers under the Company’s standard product supply agreements.
Income Taxes Income TaxesIncome taxes are accounted for using the asset and liability method. Under this method, deferred income tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained upon examination. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. Valuation allowances are recorded against tax assets when it is determined that it is more likely than not that the assets will not be realized. Interest related to income taxes is recorded in other income, net and penalties are recorded in selling, general and administrative expense. The Company makes estimates, assumptions and judgments to determine its provision for income taxes and also for deferred tax assets and liabilities and any valuation allowances recorded against deferred tax assets. Actual future operating results and the underlying amount and type of income could differ materially from the Company’s estimates, assumptions and judgments thereby impacting its consolidated financial position and results of operations.
Net (Loss) Income Per Share Net (Loss) Income Per Share
The Company computes earnings per share (“EPS”) of Class A and Class B common stock using the two-class method for participating securities.
Basic (loss) earnings per share attributable to common stockholders is calculated by dividing net (loss) income attributable to common stockholders by the weighted-average number of Class A and Class B common shares outstanding. Diluted (loss) earnings per share attributable to common stockholders adjusts the basic (loss) earnings per share attributable to common stockholders and the weighted-average number of common shares outstanding for the potentially dilutive impact of RSUs and stock options using the treasury stock method.
Share-Based Compensation Share-Based CompensationShare-based compensation expense resulting from grants of employee stock options, restricted stock awards and restricted stock units (“RSUs”) is recognized in the consolidated financial statements based on the respective grant date fair values of the awards. Stock option grant date fair values are estimated using the Black-Scholes-Merton option pricing model. The grant date fair value of the Company's RSUs is determined based on the fair value of the Company's common stock on the date of grant. Forfeitures are accounted for as they occur. Under the Black-Scholes-Merton model, the determination of the grant date fair value of share-based awards is affected by the estimated fair value per share of our common stock as well as other subjective assumptions, the expected term of the share-based awards, expected stock price volatility, risk-free interest rates, and expected dividend yield. Generally, these assumptions are based on historical information and judgment is required to determine if historical trends may be indicators of future outcomes. As a result, if factors change or the Company uses different assumptions, share-based compensation expense could be materially different in the future.
Recently Issued Accounting Guidance Recently Issued Accounting Guidance
Recent Accounting Standards Adopted:
In December 2019, the Financial Accounting Standards Board “(FASB”) issued guidance, Accounting Standards Update (“ASU”) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, to reduce complexity in accounting standard. The guidance simplifies the accounting for income taxes by removing certain exceptions to the general principles in Accounting Standards Codification Topic 740 (“ASC 740”) as well as by improving consistent application of the topic by clarifying and amending existing guidance. This standard was effective for us for the year ended December 31, 2021. The adoption of this standard did not result in a material impact to our consolidated financial statements upon adoption.
The Company reviewed all other recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact to its Consolidated Financial Statements.
Subsequent Events Subsequent EventsIn connection with the preparation of these consolidated financial statements, the Company evaluated any subsequent events after the balance sheet date of December 31, 2022 and through March 1, 2023, the date that the financial statements were available to be issued.
v3.22.4
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Schedule of Property and Equipment Depreciation is computed using the straight-line method based upon the following estimated useful lives:
Years
Buildings39
Machinery and equipment5
Furniture and fixtures7
Computer and software3
Automobiles5
Property, equipment and software consist of the following:
As of
December 31,
20222021
(In millions)
Building$10.1 $10.1 
Machinery and equipment2.0 1.6 
Leasehold improvements4.2 3.6 
Furniture and fixtures4.7 3.2 
Computer and software17.7 22.7 
Construction in progress4.8 — 
Total property, equipment and software43.5 41.2 
Less accumulated depreciation and amortization(23.6)(30.9)
Total property, equipment and software, net$19.9 $10.3 
v3.22.4
Net Revenue (Tables)
 12 Months Ended
Dec. 31, 2022
Risks and Uncertainties [Abstract]  
Schedule of Concentration Risk
The following customers accounted for more than 10% of net revenue in at least one of the fiscal years presented:
Year Ended
December 31,
202220212020
Net Revenue:
Customer A38 %40 %46 %
Customer B8 %11 %11 %
Customer C13 %12 %12 %
Customer D10 %10 %10 %
Customer E2 %5 %10 %
The following customers account for more than 10% of accounts receivable in at least one of the fiscal years presented:
As of
December 31,
20222021
Accounts receivable:
Customer A38 %44 %
Customer B6 %10 %
Customer C12 %10 %
The Company has the following significant concentrations related to suppliers:
Year Ended
December 31,
20222021
Inventory purchases:
Supplier A22 %28 %
Supplier B – related party9 %13 %
Supplier C15 %8 %
Supplier D – related party45 %40 %
v3.22.4
Investments (Tables)
 12 Months Ended
Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]  
Debt Securities, Held-to-Maturity
The following table summarizes the Company’s short-term investments:
As of December 31, 2022
MaturityAmortized CostGross Unrealized GainsGross Unrealized LossesEstimated Fair Value
(In millions)
U.S. Treasury bills
1 year or less
$58.9 $— $(0.2)$58.7 
Total$58.9 $— $(0.2)$58.7 
v3.22.4
Accounts Receivable (Tables)
 12 Months Ended
Dec. 31, 2022
Receivables [Abstract]  
Schedule of Accounts Receivable
Accounts receivable consists of the following:
As of
December 31,
20222021
(In millions)
Accounts receivable$358.1 $375.2 
Allowance for doubtful accounts(0.2)(0.1)
Total accounts receivable, net of allowances$357.9 $375.1 
Schedule of Concentration Risk
The following customers accounted for more than 10% of net revenue in at least one of the fiscal years presented:
Year Ended
December 31,
202220212020
Net Revenue:
Customer A38 %40 %46 %
Customer B8 %11 %11 %
Customer C13 %12 %12 %
Customer D10 %10 %10 %
Customer E2 %5 %10 %
The following customers account for more than 10% of accounts receivable in at least one of the fiscal years presented:
As of
December 31,
20222021
Accounts receivable:
Customer A38 %44 %
Customer B6 %10 %
Customer C12 %10 %
The Company has the following significant concentrations related to suppliers:
Year Ended
December 31,
20222021
Inventory purchases:
Supplier A22 %28 %
Supplier B – related party9 %13 %
Supplier C15 %8 %
Supplier D – related party45 %40 %
v3.22.4
Inventories (Tables)
 12 Months Ended
Dec. 31, 2022
Inventory Disclosure [Abstract]  
Schedule of Inventories
Inventories consist of the following:
As of
December 31,
20222021
(In millions)
Inventory on hand$12.6 $5.3 
Inventory in transit2.9 6.6 
Total inventory$15.5 $11.9 
Schedule of Concentration Risk
The following customers accounted for more than 10% of net revenue in at least one of the fiscal years presented:
Year Ended
December 31,
202220212020
Net Revenue:
Customer A38 %40 %46 %
Customer B8 %11 %11 %
Customer C13 %12 %12 %
Customer D10 %10 %10 %
Customer E2 %5 %10 %
The following customers account for more than 10% of accounts receivable in at least one of the fiscal years presented:
As of
December 31,
20222021
Accounts receivable:
Customer A38 %44 %
Customer B6 %10 %
Customer C12 %10 %
The Company has the following significant concentrations related to suppliers:
Year Ended
December 31,
20222021
Inventory purchases:
Supplier A22 %28 %
Supplier B – related party9 %13 %
Supplier C15 %8 %
Supplier D – related party45 %40 %
v3.22.4
Property, Equipment and Software (Tables)
 12 Months Ended
Dec. 31, 2022
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment Depreciation is computed using the straight-line method based upon the following estimated useful lives:
Years
Buildings39
Machinery and equipment5
Furniture and fixtures7
Computer and software3
Automobiles5
Property, equipment and software consist of the following:
As of
December 31,
20222021
(In millions)
Building$10.1 $10.1 
Machinery and equipment2.0 1.6 
Leasehold improvements4.2 3.6 
Furniture and fixtures4.7 3.2 
Computer and software17.7 22.7 
Construction in progress4.8 — 
Total property, equipment and software43.5 41.2 
Less accumulated depreciation and amortization(23.6)(30.9)
Total property, equipment and software, net$19.9 $10.3 
v3.22.4
Accrued Expenses (Tables)
 12 Months Ended
Dec. 31, 2022
Payables and Accruals [Abstract]  
Schedule of Accrued Expenses
The Company’s accrued expenses consisted of the following:
As of
December 31,
20222021
(In millions)
Accrued price protection$57.6 $67.2 
Accrued other customer related expenses49.5 48.4 
Accrued supplier/partner related expenses54.0 39.2 
Accrued payroll expenses36.1 21.6 
Accrued other expenses7.7 9.4 
Total accrued expenses$204.9 $185.8 
v3.22.4
Accrued Royalties (Tables)
 12 Months Ended
Dec. 31, 2022
Payables and Accruals [Abstract]  
Schedule of Future Commitments on Royalty Obligations
A summary of future commitments on royalty obligations as of December 31, 2022 is as follows (in millions):
2023$8.4 
20245.2 
20253.0 
20260.5 
2027 and thereafter
— 
Total$17.1 
v3.22.4
Leases (Tables)
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Supplemental Balance Sheet Information
The table below presents supplemental balance sheet information related to the Company’s operating leases as follows (in millions, except lease term and discount rate):
As of
December 31,
Classification20222021
Assets:
Right of use assetsOther assets$14.0 $8.9 
Liabilities:
Lease liabilities-currentOther current liabilities$3.5 $2.4 
Lease liabilities-noncurrentOther long-term liabilities$11.5 $6.5 
Weighted Average Remaining Lease term4.1 years4.2 years
Weighted Average Discount Rate4.90 %3.70 %
Schedule of Lease Costs
The following operating lease costs were included in the Company’s consolidated statements of operations:
Year Ended
December 31,
202220212020
(In millions)
Operating lease costs$5.4 $4.1 $2.8 
Schedule of Undiscounted Cash Flows of Operating Leases
The table below reconciles the undiscounted cash flows of the operating leases to the operating lease liabilities recorded on the consolidated balance sheet as of December 31, 2022.
(In millions)
2023$4.4 
20244.1 
20253.7 
20263.1 
2027 and thereafter
1.4 
Total minimum lease payments16.7 
Less imputed interest(1.7)
Total lease liabilities$15.0 
v3.22.4
Share-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Schedule of Stock Option Activity A summary of the status of the Company’s stock option plans for the years ended December 31, 2022 and 2021 is presented below:
Number of SharesWeighted Average Exercise PriceWeighted Average Remaining Contractual Life (years)Aggregate Intrinsic Value
(In millions, except years and per share amounts)
Outstanding as of December 31, 202016.4 $4.16 7.1$71.9 
Granted2.9 18.55 
Exercised(4.0)3.15 $23.6 
Forfeited(0.9)11.67 
Outstanding as of December 31, 202114.4 6.80 6.8$181.4 
Granted5.0 8.99 
Exercised(3.2)3.39 $26.7 
Forfeited(1.3)10.99 
Cancelled(0.5)$8.60 
Outstanding as of December 31, 202214.4 $3.88 7.0$54.1 
Stock options vested and exercisable as of December 31, 20227.6 $2.80 5.4$36.1 
Year Ended
December 31,
20222021
Weighted average grant date fair value of stock options granted during the year$4.00$9.22
A summary of the nonvested stock options for the years ended December 31, 2022 and 2021 are as follows:
Number of SharesWeighted Average Grant Date Fair Value
(In millions)
Nonvested as of December 31, 20207.1 $1.64 
Granted2.9 9.22 
Forfeited(0.8)6.53 
Vested(4.0)4.02 
Nonvested as of December 31, 20215.2 6.24 
Granted5.0 4.00 
Forfeited(1.3)5.62 
Cancelled(0.4)8.60 
Vested(1.7)1.13 
Nonvested as of December 31, 20226.8 $5.10 
Schedule of Weighted-Average Valuation Assumptions
The following provides information on the weighted-average assumptions used for stock options granted during the years ended December 31, 2022, 2021, and 2020 as follows (shares in millions):
Year Ended
December 31,
202220212020
Number of options granted5.02.94.1
Volatility factor45.8 %43.0 %40.5 %
Expected term6.25 years6.25 years6.25 years
Dividend yield0.8 %1.1 %2.4 %
Risk-free interest rate2.8 %1.1 %0.4 %
Fair market value per share of common stock approved by the Company’s Board of Directors at the time of grant$8.99 $21.19 $7.33 
Fair market value per option determined using a Black-Scholes-Merton Option pricing model for purposes of determining compensation expense$4.00 $9.22 $2.22 
Schedule of Restricted Stock Unit Activity RSU activity for the years ended December 31, 2022 and 2021 was as follows:
Number of SharesWeighted Average Grant Date Fair Value
(In millions)
Outstanding as of December 31, 20202.0 $8.54 
Granted7.8 $20.65 
Released(5.4)$17.58 
Forfeited(0.3)$23.21 
Outstanding as of December 31, 20214.1 $20.45 
Granted5.7 9.56
Released(2.0)19.41
Forfeited(1.3)15.55
Cancelled(0.2)$8.60 
Outstanding as of December 31, 20226.3 $12.16 
v3.22.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of Components of Provision for Income Taxes
The components of Provision for income taxes consist of the following:
Year Ended
December 31,
202220212020
(In millions)
Current:
Federal$20.9 $14.7 $23.7 
State6.2 1.5 4.3 
Foreign0.7 0.6 — 
Total current income tax expense27.8 16.8 28.0 
Deferred:
Federal(17.6)(2.2)1.9 
State(3.2)(1.5)— 
Total deferred income tax (benefit) expense(20.8)(3.7)1.9 
Total$7.0 $13.1 $29.9 
Schedule of Deferred Tax Assets and Liabilities
The tax effects of temporary differences that give rise to significant portions of deferred tax assets (liabilities) are as follows:
As of
December 31,
20222021
(In millions)
Deferred tax assets:
Accrued intellectual property$5.4 $5.9 
Stock compensation3.1 3.1 
Accrued rebates8.6 10.7 
Accrued legal fees1.6 1.9 
Accrued recycling fees2.9 2.9 
Accrued other1.7 1.5 
Leases2.5 2.1 
NOL carryforwards2.2 2.2 
Section 174 R&D capitalization24.9 — 
Other3.0 4.6 
55.9 34.9 
Less valuation allowance(1.1)(2.0)
Deferred tax assets$54.8 $32.9 
Deferred tax liabilities:
Federal impact of state taxes$(1.4)$(0.6)
Depreciation and amortization(2.2)(1.9)
Deferred tax liabilities(3.6)(2.5)
Net deferred tax assets$51.2 $30.4 
Schedule of Effective Income Tax Rate Reconciliation
The income tax provision differs from the amount obtained by applying the statutory tax rate as follows:
As of
December 31,
202220212020
(In millions)
Income tax provision at statutory rate$1.4 $(5.5)$27.8 
State income taxes (net of federal benefit)2.2 2.5 4.8 
Permanent tax differences3.6 17.8 (0.1)
Tax differential on foreign earnings0.1 0.1 (0.4)
Tax credits(1.2)(6.9)(2.7)
Tax contingencies0.3 4.6 1.0 
Prior year adjustments0.6 0.3 (0.2)
Other— 0.2 (0.3)
Total provision for income taxes$7.0 $13.1 $29.9 
Schedule of Unrecognized Tax Benefits A reconciliation of the beginning and ending amount of unrecognized tax benefits, exclusive of penalties, is as follow:
As of
December 31,
20222021
(In millions)
Unrecognized tax benefit at January 1$7.0 $2.9 
Gross increases – tax position in prior period— 4.1 
Gross increases – tax position in current period0.4 — 
Settlement(0.7)— 
Unrecognized tax benefit at December 31$6.7 $7.0 
Schedule of Open Tax Years The following tax years remain subject to examinations:
Major jurisdictionOpen years
China2019-2021
Mexico2017-2021
v3.22.4
Net (Loss) Income Per Share (Tables)
 12 Months Ended
Dec. 31, 2022
Earnings Per Share [Abstract]  
Schedule of Basic and Diluted Earnings (Loss) Per Share
Basic and diluted (loss) earnings per share and the weighted-average shares outstanding have been computed for all periods as shown below:
Year Ended
December 31,
202220212020
Class AClass BClass AClass B
Numerator(In millions, except per share amounts)
Net (loss) income$(0.2)$(0.2)$(24.3)$(15.1)$102.5 
Less: Undistributed accumulated dividends on preferred shares— — — — (0.1)
Undistributed earnings(0.2)(0.2)(24.3)(15.1)102.4 
Less: Undistributed earnings attributable to participating securities— — — — (22.2)
Net (loss) income attributable to common shareholders$(0.2)$(0.2)$(24.3)$(15.1)$80.2 
Denominator
Weighted-average common shares116.3 76.8 108.1 67.4 144.4 
Weighted-average effect of dilutive securities:
Employee stock options and RSUs— — — — 2.6 
Weighted average common shares outstanding-diluted116.3 76.8 108.1 67.4 147.0 
Basic net (loss) income per share attributable to common stockholders$(0.00)$(0.00)$(0.22)$(0.22)$0.56 
Diluted net (loss) income per share attributable to common stockholders$(0.00)$(0.00)$(0.22)$(0.22)$0.55 
Anti-dilutive equity awards under stock-based award plans excluded from the determination of diluted EPS20.8 17.1 — 5.1 
v3.22.4
Organization and Nature of Business (Details)
$ / shares in Units, $ in Millions
 12 Months Ended
Mar. 31, 2021
shares
Mar. 29, 2021
USD ($)
$ / shares
shares
Mar. 28, 2021
shares
Mar. 15, 2021
shares
Mar. 12, 2021
Dec. 31, 2022
USD ($)
manufacturer
shares
Mar. 31, 2022
$ / shares
Dec. 31, 2021
shares
Class of Stock [Line Items]                
Number of awards assumed for each award granted under share-based compensation plans         1      
Common stock, authorized (in shares)           1,350,000,000   1,350,000,000
Preferred stock, authorized (in shares)   100,000,000 100,000,000          
Investor and affiliates | Purchase of televisions since inception                
Class of Stock [Line Items]                
Number of manufacturers purchased from | manufacturer           1    
Investor and affiliates | Purchase of televisions since 2012                
Class of Stock [Line Items]                
Number of manufacturers purchased from | manufacturer           3    
IPO                
Class of Stock [Line Items]                
Number of shares issued (in shares)   12,250,000            
Offering price (in dollars per share) | $ / shares   $ 21.00            
Net proceeds on issuance | $   $ 144.9            
Underwriting discounts and commissions | $   10.7       $ 10.7    
Offering expenses | $   $ 3.1            
IPO, new shares issued                
Class of Stock [Line Items]                
Number of shares issued (in shares)   7,560,000            
IPO, from existing shareholders                
Class of Stock [Line Items]                
Number of shares issued (in shares)   4,690,000            
Underwriters' option                
Class of Stock [Line Items]                
Number of shares issued (in shares) 1,709,274              
Offering price (in dollars per share) | $ / shares             $ 21.00  
Vizio Holding Corp | VIZIO, Inc.                
Class of Stock [Line Items]                
Percentage of outstanding shares acquired         100.00%      
Class A                
Class of Stock [Line Items]                
Shares issued in exchange for cancelled shares         1      
Stock split ratio       9        
Shares issued upon conversion (in shares)       225        
Shares issued upon conversion (in shares)     30,315,600          
Common stock, authorized (in shares)     1,000,000,000          
Series A convertible preferred stock                
Class of Stock [Line Items]                
Conversion of stock, shares converted (in shares)     134,736          
Shares issued upon conversion (in shares)     30,315,600          
Preferred stock, authorized (in shares)   0            
Class B                
Class of Stock [Line Items]                
Common stock, authorized (in shares)     200,000,000          
Class C common stock                
Class of Stock [Line Items]                
Common stock, authorized (in shares)     150,000,000          
William Wang and affiliated trusts | Class B                
Class of Stock [Line Items]                
Conversion of stock, shares converted (in shares)     98,633,025          
v3.22.4
Summary of Significant Accounting Policies - Property and Equipment (Details)
 12 Months Ended
Dec. 31, 2022
Building  
Property, Plant and Equipment [Line Items]  
Estimated useful life 39 years
Machinery and equipment  
Property, Plant and Equipment [Line Items]  
Estimated useful life 5 years
Furniture and fixtures  
Property, Plant and Equipment [Line Items]  
Estimated useful life 7 years
Computer and software  
Property, Plant and Equipment [Line Items]  
Estimated useful life 3 years
Automobiles  
Property, Plant and Equipment [Line Items]  
Estimated useful life 5 years
v3.22.4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($)
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Accounting Policies [Abstract]      
Goodwill impairment $ 0 $ 0 $ 0
Recycling costs 5,200,000 7,900,000 9,300,000
Cooperated advertising arrangements recorded as a reduction of net revenue $ 7,200,000 $ 3,100,000 $ 6,600,000
Product warranty minimum term 1 year    
Product warranty maximum term 2 years    
v3.22.4
Net Revenue (Details) - USD ($)
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Prepaid Expenses and Other Current Assets      
Concentration Risk [Line Items]      
Contract asset $ 22,000,000 $ 0  
Contract liability $ 0 $ 0  
Net Revenue | Customer concentration risk | Customer A      
Concentration Risk [Line Items]      
Concentration risk (percent) 38.00% 40.00% 46.00%
Net Revenue | Customer concentration risk | Customer B      
Concentration Risk [Line Items]      
Concentration risk (percent) 8.00% 11.00% 11.00%
Net Revenue | Customer concentration risk | Customer C      
Concentration Risk [Line Items]      
Concentration risk (percent) 13.00% 12.00% 12.00%
Net Revenue | Customer concentration risk | Customer D      
Concentration Risk [Line Items]      
Concentration risk (percent) 10.00% 10.00% 10.00%
Net Revenue | Customer concentration risk | Customer E      
Concentration Risk [Line Items]      
Concentration risk (percent) 2.00% 5.00% 10.00%
Net Revenue | Customer concentration risk | Affiliates under common control      
Concentration Risk [Line Items]      
Concentration risk (percent) 51.00% 52.00% 58.00%
v3.22.4
Investments - (Details)
 12 Months Ended
Dec. 31, 2022
USD ($)
Schedule of Held-to-Maturity Securities [Line Items]  
Debt securities, held-to-maturity, impairment loss $ 0
Debt securities, held-to-maturity, term 1 year
Amortized Cost $ 58,900,000
Gross Unrealized Gains 0
Gross Unrealized Losses (200,000)
Estimated Fair Value 58,700,000
U.S. Treasury bills  
Schedule of Held-to-Maturity Securities [Line Items]  
Amortized Cost 58,900,000
Gross Unrealized Gains 0
Gross Unrealized Losses (200,000)
Estimated Fair Value $ 58,700,000
v3.22.4
Accounts Receivable - Balances (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Receivables [Abstract]    
Accounts receivable $ 358.1 $ 375.2
Allowance for doubtful accounts (0.2) (0.1)
Total accounts receivable, net of allowances $ 357.9 $ 375.1
v3.22.4
Accounts Receivable - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Concentration Risk [Line Items]      
Change in allowance for doubtful accounts $ 0.1 $ 0.0 $ 0.0
Customer A And Customer C | Net Revenue | Customer concentration risk      
Concentration Risk [Line Items]      
Concentration risk (percent) 50.00% 54.00%  
v3.22.4
Accounts Receivable - Customers (Details) - Net Receivables - Credit concentration risk
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Customer A    
Concentration Risk [Line Items]    
Concentration risk (percent) 38.00% 44.00%
Customer B    
Concentration Risk [Line Items]    
Concentration risk (percent) 6.00% 10.00%
Customer C    
Concentration Risk [Line Items]    
Concentration risk (percent) 12.00% 10.00%
v3.22.4
Inventories - Balances (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Inventory [Line Items]    
Total inventory $ 15.5 $ 11.9
Inventory on hand    
Inventory [Line Items]    
Total inventory 12.6 5.3
Inventory in transit    
Inventory [Line Items]    
Total inventory $ 2.9 $ 6.6
v3.22.4
Inventories - Inventory Purchases (Details) - Inventory purchases - Supplier concentration risk
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Supplier A    
Inventory [Line Items]    
Concentration risk (percent) 22.00% 28.00%
Supplier B – related party    
Inventory [Line Items]    
Concentration risk (percent) 9.00% 13.00%
Supplier C    
Inventory [Line Items]    
Concentration risk (percent) 15.00% 8.00%
Supplier D – related party    
Inventory [Line Items]    
Concentration risk (percent) 45.00% 40.00%
v3.22.4
Inventories - Narrative (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Other receivables, manufacturers    
Inventory [Line Items]    
Receivables due from manufacturers $ 3.0 $ 5.6
v3.22.4
Property, Equipment and Software - Components of Property and Equipment (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Property, Plant and Equipment [Line Items]    
Total property, equipment and software $ 43.5 $ 41.2
Less accumulated depreciation and amortization (23.6) (30.9)
Total property, equipment and software, net 19.9 10.3
Building    
Property, Plant and Equipment [Line Items]    
Total property, equipment and software 10.1 10.1
Machinery and equipment    
Property, Plant and Equipment [Line Items]    
Total property, equipment and software 2.0 1.6
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Total property, equipment and software 4.2 3.6
Furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Total property, equipment and software 4.7 3.2
Computer and software    
Property, Plant and Equipment [Line Items]    
Total property, equipment and software 17.7 22.7
Construction in progress    
Property, Plant and Equipment [Line Items]    
Total property, equipment and software $ 4.8 $ 0.0
v3.22.4
Property, Equipment and Software - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Property, Plant and Equipment [Abstract]      
Depreciation expense $ 3.6 $ 2.8 $ 2.3
v3.22.4
Segment Information (Details)
 12 Months Ended
Dec. 31, 2022
segment
Segment Reporting [Abstract]  
Number of operating segments 2
Number of reportable segments 2
v3.22.4
Goodwill (Details) - USD ($)
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]      
Goodwill $ 44,800,000 $ 44,800,000  
Goodwill impairment $ 0 $ 0 $ 0
v3.22.4
Accrued Expenses (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Payables and Accruals [Abstract]    
Accrued price protection $ 57.6 $ 67.2
Accrued other customer related expenses 49.5 48.4
Accrued supplier/partner related expenses 54.0 39.2
Accrued payroll expenses 36.1 21.6
Accrued other expenses 7.7 9.4
Total accrued expenses $ 204.9 $ 185.8
v3.22.4
Accrued Royalties - Future Commitments on Royalty Obligations (Details) - Royalty obligations
$ in Millions
Dec. 31, 2022
USD ($)
Other Commitments [Line Items]  
2023 $ 8.4
2024 5.2
2025 3.0
2026 0.5
2027 and thereafter 0.0
Total $ 17.1
v3.22.4
Accrued Royalties - Narrative (Details) - Accrued Royalties - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Other Commitments [Line Items]    
Refundable deposits $ 22.6 $ 24.3
Future Settlements Of Historical Sales, Unreimbursed    
Other Commitments [Line Items]    
Reserve for future settlements $ 24.8 $ 32.5
v3.22.4
Leases - Supplemental Balance Sheet Information (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Assets:    
Right of use assets $ 14.0 $ 8.9
Right of use assets, balance sheet [Extensible Enumeration] Other assets Other assets
Liabilities:    
Lease liabilities-current $ 3.5 $ 2.4
Lease liabilities-current, balance sheet [Extensible Enumeration] Other current liabilities Other current liabilities
Lease liabilities-noncurrent $ 11.5 $ 6.5
Lease liabilities-noncurrent, balance sheet [Extensible Enumeration] Other long-term liabilities Other long-term liabilities
Weighted Average Remaining Lease term 4 years 1 month 6 days 4 years 2 months 12 days
Weighted Average Discount Rate 4.90% 3.70%
v3.22.4
Leases - Operating Lease Costs (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Leases [Abstract]      
Operating lease costs $ 5.4 $ 4.1 $ 2.8
v3.22.4
Leases - Reconciliation of Undiscounted Cash Flows of Operating Leases (Details)
$ in Millions
Dec. 31, 2022
USD ($)
Leases [Abstract]  
2023 $ 4.4
2024 4.1
2025 3.7
2026 3.1
2027 and thereafter 1.4
Total minimum lease payments 16.7
Less imputed interest (1.7)
Total lease liabilities $ 15.0
v3.22.4
Leases - Narrative (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2022
USD ($)
related_party
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Lessee, Lease, Description [Line Items]      
Rental income $ 0.4 $ 0.4 $ 0.4
Spyglass      
Lessee, Lease, Description [Line Items]      
Ownership interest 13.00%    
Number of related parties in ownership | related_party 2    
Investment $ 0.5 0.5  
Spyglass | Affiliated entity | Spyglass      
Lessee, Lease, Description [Line Items]      
Net rent expense $ 1.0 $ 0.7 $ 1.0
v3.22.4
Commitment and Contingencies (Details) - USD ($)
 1 Months Ended 3 Months Ended
Aug. 30, 2018
Nov. 30, 2020
Jun. 30, 2021
Dec. 31, 2022
Apr. 13, 2016
Commitments and Contingencies [Line Items]          
Liability for supply commitment       $ 0  
VIZIO | AmTRAN          
Commitments and Contingencies [Line Items]          
Beneficial holder, percentage of common stock, more than   5.00%      
Revolving credit facility | Line of credit          
Commitments and Contingencies [Line Items]          
Maximum borrowing capacity         $ 50,000,000
Debt fee     $ 75,000    
AMD patent infringement          
Commitments and Contingencies [Line Items]          
Litigation settlement award to other party $ 39,000,000        
Settlement portion paid in previous periods $ 15,000,000        
Payments for legal settlements     $ 14,000,000    
AmTRAN settlement agreement | Investor          
Commitments and Contingencies [Line Items]          
Litigation settlement award from other party   $ 8,200,000      
v3.22.4
Stockholders' Equity (Details)
$ / shares in Units, $ in Thousands
 12 Months Ended
Mar. 28, 2021
USD ($)
shares
Dec. 31, 2022
USD ($)
vote
director
$ / shares
shares
Dec. 31, 2021
USD ($)
$ / shares
shares
Dec. 31, 2020
USD ($)
Mar. 29, 2021
$ / shares
shares
Class of Stock [Line Items]          
Preferred stock, authorized (in shares) 100,000,000       100,000,000
Preferred stock, par value (in dollars per share) | $ / shares         $ 0.0001
Dividends paid | $ $ 600 $ 0 $ 600 $ 0  
Common stock, authorized (in shares)   1,350,000,000 1,350,000,000    
Common stock, par value (in dollars per share) | $ / shares   $ 0.0001 $ 0.0001    
Common stock, issued (in shares)   198,723,478      
Common stock, outstanding (in shares)   194,893,657      
Percentage of common stock held by affiliates   25.00%      
Period after death or permanent and total disability   12 months      
Minimum          
Class of Stock [Line Items]          
Period following conversion scenarios   61 days      
Maximum          
Class of Stock [Line Items]          
Period following conversion scenarios   180 days      
Series A convertible preferred stock          
Class of Stock [Line Items]          
Preferred stock, authorized (in shares)         0
Conversion of stock, shares converted (in shares) 134,736        
Shares issued upon conversion (in shares) 30,315,600        
Voting right for election of member of Board of Directors | director   1      
Preferred stock dividend rate   6.00%      
Dividends payable | $   $ 0 $ 600    
Terms of conversion, minimum aggregate net proceeds after occurrence of underwritten public offering | $   $ 15,000      
Liquidation preference (in dollars per share) | $ / shares   $ 14.84      
Class A          
Class of Stock [Line Items]          
Shares issued upon conversion (in shares) 30,315,600        
Common stock, authorized (in shares) 1,000,000,000        
Common stock, issued (in shares)   121,900,000 116,400,000    
Common stock, outstanding (in shares)   118,100,000 113,200,000    
Voting rights per share | vote   1      
Common stock issued for each share upon conversion (in shares)   1      
Class B          
Class of Stock [Line Items]          
Common stock, authorized (in shares) 200,000,000        
Common stock, issued (in shares)   76,800,000 76,800,000    
Common stock, outstanding (in shares)   76,800,000 76,800,000    
Voting rights per share | vote   10      
v3.22.4
Share-Based Compensation - Narrative (Details)
 1 Months Ended 12 Months Ended
Mar. 25, 2021
shares
Oct. 08, 2019
$ / shares
shares
Oct. 29, 2010
$ / shares
shares
Aug. 31, 2022
USD ($)
employee
shares
Aug. 31, 2017
shares
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
plan
shares
Dec. 31, 2021
USD ($)
shares
Dec. 31, 2020
USD ($)
$ / shares
shares
Mar. 31, 2021
$ / shares
Feb. 28, 2021
$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Options outstanding (in shares)               14,400,000 14,400,000 16,400,000    
Number of plans | plan               2        
Share-based compensation expense | $       $ 3,200,000       $ 42,500,000 $ 134,400,000 $ 4,800,000    
Defined contribution plan, number of employees | employee       3,000                
Options cancelled (in shares)       500,000                
Midpoint price range of shares (in dollars per share) | $ / shares                       $ 22.00
Shares withheld to cover withholding taxes for stock awards (in shares)               3,800,000 3,200,000      
Shares withheld to cover withholding taxes for stock awards | $               $ 83,000,000 $ 71,000,000.0      
Cost of goods sold and research and development expense                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Share-based compensation expense | $               $ 3,600,000 2,900,000      
Stock options                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Service period (in years)               4 years        
Unrecognized compensation costs | $               $ 27,900,000        
Unrecognized compensation costs recognition period               1 year 10 months 24 days        
Restricted stock awards                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Vesting term (in years)     4 years                  
Additional vesting term if IPO not completed     3 years                  
Forfeiture term if IPO not completed     7 years                  
Awards granted (in shares)   234,000 4,995,000                  
Share-based compensation expense | $               $ 300,000 $ 700,000      
Fair value stock price at time of grant (in dollars per share) | $ / shares   $ 5.39 $ 1.93                  
RSUs                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Service period (in years)               4 years        
Unrecognized compensation costs recognition period               2 years        
Awards granted (in shares)               5,700,000 7,800,000      
RSUs cancelled (in shares)       200,000       200,000        
Grant-date fair value of awards granted | $               $ 54,300,000 $ 160,600,000      
Fair value of awards vested | $               38,000,000 126,800,000      
Unrecognized compensation costs | $               $ 75,000,000        
Stock options and RSUs                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Fair value stock price at time of grant (in dollars per share) | $ / shares                   $ 8.54    
Stock options and RSUs | December 2020 and February 2021                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Share-based compensation expense | $                 58,200,000      
Stock options and RSUs | December 2020 and February 2021 | Forecast                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Share-based compensation expense | $           $ 1,700,000 $ 2,100,000          
Stock options and RSUs | December 2020 and February 2021 | Minimum                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Fair value stock price at time of grant (in dollars per share) | $ / shares                     $ 8.54  
Stock options and RSUs | December 2020 and February 2021 | Maximum                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Fair value stock price at time of grant (in dollars per share) | $ / shares                     $ 22.00  
2017 Plan                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Number of shares available for grant (in shares)         24,446,502              
2017 Plan | Maximum                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Number of additional shares reserved for issuance (in shares)         40,520,655              
2017 Plan | Stock options                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Award term (in years)         10 years              
Vesting term (in years)         4 years              
2017 Plan | Stock appreciation rights                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Award term (in years)         10 years              
Vesting term (in years)         4 years              
2007 Plan                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Award term (in years)               10 years        
Vesting term (in years)               4 years        
Options outstanding (in shares)               718,757        
Forfeiture term if employment or other services terminate prior to vesting               90 days        
2021 ESPP                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Number of additional shares reserved for issuance (in shares) 5,400,000                      
Share-based compensation expense | $               $ 900,000 $ 600,000      
Shares issued under plan (in shares)               305,190 94,739      
Shares reserved for issuance (in shares) 1,800,000                      
Additional shares reserved for issuance, as a percent of outstanding shares 1.00%                      
Maximum employee subscription rate                 10.00%      
Purchase discount from market price                 85.00%      
Shares of common stock, threshold for purchase amount (in shares)                 1,000      
Monetary component, threshold for purchase amount | $                 $ 12,500      
v3.22.4
Share-Based Compensation - Stock Option Award Activity (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Number of Shares      
Beginning balance (in shares) 14.4 16.4  
Granted (in shares) 5.0 2.9 4.1
Exercised (in shares) (3.2) (4.0)  
Forfeited (in shares) (1.3) (0.9)  
Cancelled (in shares) (0.5)    
Ending balance (in shares) 14.4 14.4 16.4
Stock options vested and exercisable (in shares) 7.6    
Weighted Average Exercise Price      
Beginning balance (in dollars per share) $ 6.80 $ 4.16  
Granted (in dollars per share) 8.99 18.55  
Exercised (in dollars per share) 3.39 3.15  
Forfeited (in dollars per share) 10.99 11.67  
Cancelled (in dollars per share) 8.60    
Ending balance (in dollars per share) 3.88 $ 6.80 $ 4.16
Stock options vested and exercisable (in dollars per share) $ 2.80    
Weighted Average Remaining Contractual Life (years)      
Options outstanding (in years) 7 years 6 years 9 months 18 days 7 years 1 month 6 days
Stock options vested and exercisable (in years) 5 years 4 months 24 days    
Aggregate Intrinsic Value      
Options outstanding, aggregate intrinsic value $ 54.1 $ 181.4 $ 71.9
Options exercised, aggregate intrinsic value 26.7 $ 23.6  
Stock options vested, aggregate intrinsic value $ 36.1    
v3.22.4
Share-Based Compensation - Weighted Average Grant Date Fair Value of Stock Options Granted (Details) - $ / shares
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Share-Based Payment Arrangement [Abstract]      
Weighted average grant date fair value of stock options granted during the year (in dollars per share) $ 4.00 $ 9.22 $ 2.22
v3.22.4
Share-Based Compensation - Nonvested Stock Option Activity (Details) - $ / shares
shares in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Number of Shares      
Nonvested, beginning (in shares) 5.2 7.1  
Granted (in shares) 5.0 2.9 4.1
Forfeited (in shares) (1.3) (0.8)  
Cancelled (in shares) (0.4)    
Vested (in shares) (1.7) (4.0)  
Nonvested, ending (in shares) 6.8 5.2 7.1
Weighted Average Grant Date Fair Value      
Nonvested, beginning (in dollars per share) $ 6.24 $ 1.64  
Granted (in dollars per share) 4.00 9.22 $ 2.22
Forfeited (in dollars per share) 5.62 6.53  
Cancelled (in dollars per share) 8.60    
Vested (in dollars per share) 1.13 4.02  
Nonvested, ending (in dollars per share) $ 5.10 $ 6.24 $ 1.64
v3.22.4
Share-Based Compensation - Fair Value Assumptions of Options (Details) - $ / shares
shares in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Weighted-Average Assumptions      
Number of options granted (in shares) 5.0 2.9 4.1
Fair market value per share of common stock approved by the Company’s Board of Directors at the time of grant (in dollars per share) $ 8.99 $ 21.19 $ 7.33
Weighted average grant date fair value of stock options granted during the year (in dollars per share) $ 4.00 $ 9.22 $ 2.22
Stock options      
Weighted-Average Assumptions      
Volatility factor 45.80% 43.00% 40.50%
Expected term 6 years 3 months 6 years 3 months 6 years 3 months
Dividend yield 0.80% 1.10% 2.40%
Risk-free interest rate 2.80% 1.10% 0.40%
v3.22.4
Share-Based Compensation - Restricted Stock Units Activity (Details) - RSUs - $ / shares
shares in Millions
 1 Months Ended 12 Months Ended
Aug. 31, 2022
Dec. 31, 2022
Dec. 31, 2021
Number of Shares      
Outstanding, beginning (in shares)   4.1 2.0
Granted (in shares)   5.7 7.8
Released (in shares)   (2.0) (5.4)
Forfeited (in shares)   (1.3) (0.3)
Cancelled (in shares) (0.2) (0.2)  
Outstanding, ending (in shares)   6.3 4.1
Weighted Average Grant Date Fair Value      
Outstanding, beginning (in dollars per share)   $ 20.45 $ 8.54
Granted (in dollars per share)   9.56 20.65
Released (in dollars per share)   19.41 17.58
Forfeited (in dollars per share)   15.55 23.21
Cancelled (in dollars per share)   8.60  
Outstanding, ending (in dollars per share)   $ 12.16 $ 20.45
v3.22.4
Income Taxes - Components of Provision for Income Taxes (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Current:      
Federal $ 20.9 $ 14.7 $ 23.7
State 6.2 1.5 4.3
Foreign 0.7 0.6 0.0
Total current income tax expense 27.8 16.8 28.0
Deferred:      
Federal (17.6) (2.2) 1.9
State (3.2) (1.5) 0.0
Total deferred income tax (benefit) expense (20.8) (3.7) 1.9
Total provision for income taxes $ 7.0 $ 13.1 $ 29.9
v3.22.4
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Deferred tax assets:    
Accrued intellectual property $ 5.4 $ 5.9
Stock compensation 3.1 3.1
Accrued rebates 8.6 10.7
Accrued legal fees 1.6 1.9
Accrued recycling fees 2.9 2.9
Accrued other 1.7 1.5
Leases 2.5 2.1
NOL carryforwards 2.2 2.2
Section 174 R&D capitalization 24.9 0.0
Other 3.0 4.6
Deferred tax assets, gross 55.9 34.9
Less valuation allowance (1.1) (2.0)
Deferred tax assets 54.8 32.9
Deferred tax liabilities:    
Federal impact of state taxes (1.4) (0.6)
Depreciation and amortization (2.2) (1.9)
Deferred tax liabilities (3.6) (2.5)
Net deferred tax assets $ 51.2 $ 30.4
v3.22.4
Income Taxes - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Operating Loss Carryforwards [Line Items]      
Tax credit carryforwards $ 0.1    
Operating loss and tax credit carryforwards, valuation allowance 1.0    
Deferred tax assets, valuation allowance 1.1 $ 2.0  
Liabilities for unrecognized tax benefits inclusive of penalties 7.3    
Unrecognized tax benefits that would affect the effective tax rate if recognized 6.3 6.8  
Interest and penalties expense related to unrecognized tax benefits (0.2) 0.1 $ 0.6
Accrued interest and penalties related to unrecognized tax benefits 1.1 1.3  
Provision for income taxes $ 7.0 $ 13.1 $ 29.9
Effective tax rate (percent) 106.00%    
Effect of share-based compensation expense, tax excess benefits, and the compensation deduction limitation $ 4.0    
State and foreign net operating losses and research and development credit carryforwards      
Operating Loss Carryforwards [Line Items]      
Deferred tax assets, valuation allowance 0.8    
Federal      
Operating Loss Carryforwards [Line Items]      
Net operating loss carryforwards 3.1    
State      
Operating Loss Carryforwards [Line Items]      
Net operating loss carryforwards 10.4    
California      
Operating Loss Carryforwards [Line Items]      
Net operating loss carryforwards $ 0.9    
v3.22.4
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Tax Disclosure [Abstract]      
Income tax provision at statutory rate $ 1.4 $ (5.5) $ 27.8
State income taxes (net of federal benefit) 2.2 2.5 4.8
Permanent tax differences 3.6 17.8 (0.1)
Tax differential on foreign earnings 0.1 0.1 (0.4)
Tax credits (1.2) (6.9) (2.7)
Tax contingencies 0.3 4.6 1.0
Prior year adjustments 0.6 0.3 (0.2)
Other 0.0 0.2 (0.3)
Total provision for income taxes $ 7.0 $ 13.1 $ 29.9
v3.22.4
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Unrecognized Tax Benefits    
Unrecognized tax benefit at January 1 $ 7.0 $ 2.9
Gross increases – tax position 0.4 4.1
Settlement (0.7) 0.0
Unrecognized tax benefit at December 31 $ 6.7 $ 7.0
v3.22.4
Net (Loss) Income Per Share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Numerator      
Net (loss) income $ (0.4) $ (39.4) $ 102.5
Less: Undistributed accumulated dividends on preferred shares     (0.1)
Undistributed earnings     102.4
Less: Undistributed earnings attributable to participating securities     (22.2)
Net (loss) income attributable to common stockholders - basic     80.2
Net (loss) income attributable to common stockholders - diluted     $ 80.2
Denominator      
Weighted-average common shares outstanding - basic (in shares) 193.1 175.5 144.4
Weighted-average effect of dilutive securities:      
Employee stock options (in shares)     2.6
Weighted average common shares outstanding - diluted (in shares) 193.1 175.5 147.0
Net income (loss) per share attributable to common stockholders      
Basic net (loss) income per share attributable to common stockholders (in dollars per share) $ (0.00) $ (0.22) $ 0.56
Diluted net (loss) income per share attributable to common stockholders (in dollars per share) $ (0.00) $ (0.22) $ 0.55
Anti-dilutive equity awards under share-based award plans excluded from the determination of diluted EPS (in shares)     5.1
Class A      
Numerator      
Net (loss) income $ (0.2) $ (24.3)  
Less: Undistributed accumulated dividends on preferred shares 0.0 0.0  
Undistributed earnings (0.2) (24.3)  
Less: Undistributed earnings attributable to participating securities 0.0 0.0  
Net (loss) income attributable to common stockholders - basic (0.2) (24.3)  
Net (loss) income attributable to common stockholders - diluted $ (0.2) $ (24.3)  
Denominator      
Weighted-average common shares outstanding - basic (in shares) 116.3 108.1  
Weighted-average effect of dilutive securities:      
Employee stock options (in shares) 0.0 0.0  
Weighted average common shares outstanding - diluted (in shares) 116.3 108.1  
Net income (loss) per share attributable to common stockholders      
Basic net (loss) income per share attributable to common stockholders (in dollars per share) $ (0.00) $ (0.22)  
Diluted net (loss) income per share attributable to common stockholders (in dollars per share) $ (0.00) $ (0.22)  
Anti-dilutive equity awards under share-based award plans excluded from the determination of diluted EPS (in shares) 20.8 17.1  
Class B      
Numerator      
Net (loss) income $ (0.2) $ (15.1)  
Less: Undistributed accumulated dividends on preferred shares 0.0 0.0  
Undistributed earnings (0.2) (15.1)  
Less: Undistributed earnings attributable to participating securities 0.0 0.0  
Net (loss) income attributable to common stockholders - basic (0.2) (15.1)  
Net (loss) income attributable to common stockholders - diluted $ (0.2) $ (15.1)  
Denominator      
Weighted-average common shares outstanding - basic (in shares) 76.8 67.4  
Weighted-average effect of dilutive securities:      
Employee stock options (in shares) 0.0 0.0  
Weighted average common shares outstanding - diluted (in shares) 76.8 67.4  
Net income (loss) per share attributable to common stockholders      
Basic net (loss) income per share attributable to common stockholders (in dollars per share) $ (0.00) $ (0.22)  
Diluted net (loss) income per share attributable to common stockholders (in dollars per share) $ (0.00) $ (0.22)  
Anti-dilutive equity awards under share-based award plans excluded from the determination of diluted EPS (in shares) 0.0  
v3.22.4
Defined Contribution Retirement Plan (Details) - USD ($)
$ in Millions
 1 Months Ended
Feb. 28, 2023
Feb. 28, 2022
Feb. 28, 2021
Defined Benefit Plan, Plan Assets, Allocation [Line Items]      
Discretionary matching contributions   $ 1.8 $ 0.9
Subsequent Event      
Defined Benefit Plan, Plan Assets, Allocation [Line Items]      
Discretionary matching contributions $ 2.6    
v3.22.4
Other Income, Net (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 15, 2021
Other Income and Expenses [Abstract]    
Settlement Agreement payment to be received for abandonment of claims   $ 3.5
Other income related to settlement proceeds $ 2.9