VIZIO HOLDING CORP., 10-K filed on 2/28/2024
Annual Report
v3.24.0.1
Cover - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Feb. 23, 2024
Jun. 30, 2023
Document Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2023    
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    
Document Financial Statement Error Correction false    
Entity Shell Company false    
Entity Public Float     $ 760.0
Documents Incorporated by Reference
Portions of the registrant's definitive Proxy Statement relating to the 2024 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, 2023.
    
Entity Central Index Key 0001835591    
Document Fiscal Year Focus 2023    
Document Fiscal Period Focus FY    
Amendment Flag false    
Class A      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   121,765,138  
Class B      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   76,180,453  
Class C      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   0  
v3.24.0.1
Audit Information
 12 Months Ended
Dec. 31, 2023
Audit Information [Abstract]  
Auditor Name KPMG LLP
Auditor Location Los Angeles, CA
Auditor Firm ID 185
v3.24.0.1
Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Current assets:    
Cash and cash equivalents $ 221.6 $ 288.7
Short-term investments 129.9 58.9
Accounts receivable, net 381.2 357.9
Inventories 6.8 15.5
Income tax receivable 9.0 1.7
Prepaid and other current assets 45.9 53.5
Total current assets 794.4 778.4
Property, equipment and software, net 19.7 19.9
Goodwill 44.8 44.8
Deferred income taxes 49.6 51.2
Other assets 52.2 21.4
Total assets 960.7 915.7
Current liabilities:    
Accrued expenses 178.6 204.9
Accrued royalties 40.7 47.4
Other current liabilities 5.8 5.5
Total current liabilities 492.0 523.2
Other long-term liabilities 19.4 18.8
Total liabilities 511.4 542.0
Commitments and contingencies (note 13)
Stockholders’ equity:    
Preferred stock 0.0 0.0
Common stock 0.0 0.0
Additional paid in capital 414.3 366.9
Accumulated other comprehensive loss (0.3) (0.3)
Retained earnings 35.3 7.1
Total stockholders’ equity 449.3 373.7
Total liabilities and stockholders’ equity 960.7 915.7
Related Party    
Current assets:    
Other receivables due from related parties 0.0 2.2
Current liabilities:    
Accounts payable 109.1 148.2
Nonrelated Party    
Current liabilities:    
Accounts payable $ 157.8 $ 117.2
v3.24.0.1
Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2023
Dec. 31, 2022
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
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) 201,477,931  
Common stock, outstanding (in shares) 197,648,110  
Class A    
Stockholders’ equity:    
Common stock, issued (in shares) 125,300,000 121,900,000
Common stock, outstanding (in shares) 121,500,000 118,100,000
Class B    
Stockholders’ equity:    
Common stock, issued (in shares) 76,200,000 76,800,000
Common stock, outstanding (in shares) 76,200,000 76,800,000
Class C    
Stockholders’ equity:    
Common stock, issued (in shares) 0 0
Common stock, outstanding (in shares) 0 0
v3.24.0.1
Consolidated Statements of Operations - USD ($)
shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Net revenue:      
Total net revenue $ 1,680.0 $ 1,862.8 $ 2,124.0
Cost of goods sold:      
Total cost of goods sold 1,323.7 1,550.3 1,797.7
Gross profit:      
Total gross profit 356.3 312.5 326.3
Operating expenses:      
Selling, general and administrative 248.8 220.7 286.1
Marketing 36.8 41.1 32.8
Research and development 41.3 40.8 34.2
Depreciation and amortization 4.6 3.6 2.8
Total operating expenses 331.5 306.2 355.9
Income (loss) from operations 24.8 6.3 (29.6)
Interest income, net 13.0 1.6 0.3
Other income (expense), net 0.3 (1.3) 3.0
Total non-operating income, net 13.3 0.3 3.3
Income (loss) before income taxes 38.1 6.6 (26.3)
Provision for income taxes 9.9 7.0 13.1
Net income (loss) $ 28.2 $ (0.4) $ (39.4)
Net income (loss) per share attributable to common stockholders:      
Basic (in dollars per share) $ 0.14 $ (0.00) $ (0.22)
Diluted (in dollars per share) $ 0.14 $ (0.00) $ (0.22)
Weighted-average common shares outstanding:      
Basic (in shares) 196.3 193.1 175.5
Diluted (in shares) 200.4 193.1 175.5
Device      
Net revenue:      
Total net revenue $ 1,081.8 $ 1,384.9 $ 1,815.3
Cost of goods sold:      
Total cost of goods sold 1,090.4 1,368.9 1,699.6
Gross profit:      
Total gross profit (8.6) 16.0 115.7
Platform+      
Net revenue:      
Total net revenue 598.2 477.9 308.7
Cost of goods sold:      
Total cost of goods sold 233.3 181.4 98.1
Gross profit:      
Total gross profit $ 364.9 $ 296.5 $ 210.6
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Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Statement of Comprehensive Income [Abstract]      
Net income (loss) $ 28.2 $ (0.4) $ (39.4)
Other comprehensive loss:      
Foreign currency translation adjustments 0.0 (0.1) (1.1)
Comprehensive income (loss) $ 28.2 $ (0.5) $ (40.5)
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Consolidated Statements of Stockholders' Equity - USD ($)
$ in Millions
Total
Class A
Class B
Series A Convertible Preferred Stock
Common Stock
Class A
Common Stock
Class B
Additional Paid-In Capital
Accumulated Other Comprehensive Income (Loss)
Retained Earnings
Preferred stock, beginning balance (in shares) at Dec. 31, 2020       100,000          
Common stock, beginning balance (in shares) at Dec. 31, 2020 [1],[2]         150,800,000 0      
Beginning balance at Dec. 31, 2020 $ 149.3     $ 2.6     $ 98.9 $ 0.9 $ 46.9
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Share-based compensation expense 134.4           134.4    
Shares issued pursuant to incentive award plans (in shares) [1],[2]         9,500,000        
Shares issued pursuant to incentive award plans 14.1           14.1    
Payment of preferred stock dividends (0.6)     $ (0.6)          
Conversion of preferred stock (in shares)       (100,000) 30,300,000 [1],[2]        
Conversion of preferred stock 0.0     $ (2.0)     2.0    
Sale of common stock, net of $13.7 million of stock issuance costs (in shares) [1],[2]         7,600,000        
Sale of common stock, net of $13.7 million of stock issuance costs 144.9           144.9    
Shares withheld to cover withholding taxes for stock awards (in shares) [1],[2]         (3,200,000)        
Shares withheld to cover withholding taxes for stock awards (71.0)           (71.0)    
Conversion of Class A shares into Class B (in shares) [1],[2]         (98,300,000) 98,300,000      
Conversion of class B shares into class A (in shares) [1],[2]         21,500,000 (21,500,000)      
RSA forfeiture (in shares) [1],[2]         (5,000,000.0)        
Foreign currency translation (1.1)             (1.1)  
Net (loss) income (39.4)               (39.4)
Preferred stock, ending balance (in shares) at Dec. 31, 2021       0          
Common stock, ending balance (in shares) at Dec. 31, 2021 [1],[2]         113,200,000 76,800,000      
Ending balance at Dec. 31, 2021 330.6     $ 0.0     323.3 (0.2) 7.5
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Share-based compensation expense 42.5           42.5    
Shares issued pursuant to incentive award plans (in shares) [1],[2]         4,900,000        
Shares issued pursuant to incentive award plans 1.1           1.1    
Foreign currency translation (0.1)             (0.1)  
Net (loss) income $ (0.4)               (0.4)
Preferred stock, ending balance (in shares) at Dec. 31, 2022 0     0          
Common stock, ending balance (in shares) at Dec. 31, 2022   118,100,000 76,800,000   118,100,000 [1],[2] 76,800,000 [1],[2]      
Ending balance at Dec. 31, 2022 $ 373.7     $ 0.0     366.9 (0.3) 7.1
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Share-based compensation expense 42.7           42.7    
Shares issued pursuant to incentive award plans (in shares) [1],[2]         2,800,000        
Shares issued pursuant to incentive award plans 4.7           4.7    
Conversion of class B shares into class A (in shares) [1],[2]         600,000 (600,000)      
Foreign currency translation 0.0                
Net (loss) income $ 28.2               28.2
Preferred stock, ending balance (in shares) at Dec. 31, 2023 0     0          
Common stock, ending balance (in shares) at Dec. 31, 2023 197,648,110 121,500,000 76,200,000   121,500,000 [1],[2] 76,200,000 [1],[2]      
Ending balance at Dec. 31, 2023 $ 449.3     $ 0.0     $ 414.3 $ (0.3) $ 35.3
[1] There were no shares of Class C common stock issued or outstanding in any of the periods presented
[2] As of December 31, 2023 and 2022, the par value on common stock outstanding was $20 thousand and $20 thousand, respectively
v3.24.0.1
Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2020
Statement of Stockholders' Equity [Abstract]        
Stock issuance costs $ 13,700      
Common stock, issued (in shares)   201,477,931    
Common stock, outstanding (in shares)   197,648,110    
Class C common stock        
Common stock, issued (in shares)   0 0  
Common stock, outstanding (in shares)   0 0  
Common Stock        
Par value on common stock outstanding   $ 20 $ 20  
Common Stock | Class C common stock        
Common stock, issued (in shares) 0 0 0 0
Common stock, outstanding (in shares) 0 0 0 0
v3.24.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Cash flows from operating activities:      
Net income (loss) $ 28.2 $ (0.4) $ (39.4)
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:      
Depreciation and amortization 7.4 3.6 2.8
Amortization of discount on investments (5.1) (0.6) 0.0
Change in fair value of investment securities 0.1 0.9 0.0
Deferred income taxes 1.6 (20.8) (3.7)
Share-based compensation expense 43.5 42.5 134.4
Change in allowance for doubtful accounts 2.0 0.1 0.0
Changes in operating assets and liabilities:      
Accounts receivable (25.3) 17.0 30.5
Other receivables due from related parties 2.2 2.9 (4.1)
Inventories 8.7 (3.7) (1.4)
Income taxes receivable (7.3) 24.5 (24.9)
Prepaid and other current assets 4.5 31.3 (30.0)
Other assets (29.3) (4.8) (1.6)
Accounts payable due to related parties (39.1) (76.6) 15.4
Accounts payable 39.2 (1.7) (47.9)
Accrued expenses (26.3) 19.1 30.5
Accrued royalties (6.7) (9.4) (24.3)
Other current liabilities 0.3 0.6 (0.3)
Other long-term liabilities 0.6 4.6 5.9
Net cash (used in) provided by operating activities (0.8) 29.1 41.9
Cash flows from investing activities:      
Purchases of property and equipment (2.9) (13.1) (4.4)
Purchase of investments (201.0) (74.9) (0.2)
Sales and maturities of investments 133.5 15.0 0.0
Net cash used in investing activities (70.4) (73.0) (4.6)
Cash flows from financing activities:      
Proceeds from exercise of stock options 2.3 12.0 12.4
Payment of dividends on Series A convertible preferred stock 0.0 0.0 (0.6)
Proceeds from IPO, net of $10.7 in direct offering costs 0.0 0.0 148.0
Payments of other offering costs 0.0 0.0 (2.8)
Withholding taxes paid on behalf of employees on net settled share-based awards (0.6) (12.0) (71.0)
Proceeds from sale of stock under ESPP 2.3 1.1 1.7
Net cash provided by financing activities 4.0 1.1 87.7
Effect of exchange rate changes on cash and cash equivalents 0.1 (0.1) (1.1)
Net (decrease) increase in cash and cash equivalents (67.1) (42.9) 123.9
Cash and cash equivalents at beginning of year 288.7 331.6 207.7
Cash and cash equivalents at end of year 221.6 288.7 331.6
Supplemental disclosure of cash flow information:      
Cash paid for income taxes, net 14.5 3.7 36.1
Cash paid for interest 0.2 0.2 0.2
Cash paid for amounts included in the measurement of operating lease liabilities 4.6 3.6 2.9
Supplemental disclosure of non-cash investing and financing activities:      
Right-of-use assets obtained in exchange for new operating lease liabilities 4.4 7.3 3.6
Additions to property and equipment financed by accounts payable 1.4 0.0 0.0
IPO costs not yet paid $ 0.0 $ 0.0 $ 0.3
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Consolidated Statements of Cash Flows (Parenthetical) - USD ($)
$ in Millions
 12 Months Ended
Mar. 29, 2021
Dec. 31, 2023
IPO    
Direct offering costs $ 10.7 $ 10.7
v3.24.0.1
Organization and Nature of Business
 12 Months Ended
Dec. 31, 2023
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 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 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 Company’s Board of Directors (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.
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Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2023
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 its 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 income (loss). 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.
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 purchased with an original maturity date of greater than three months, but less than 12 months as of the reporting date.
(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 certain 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 and cash equivalents in banks. The Company maintains its cash and cash equivalents 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 average cost 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, equipment and software are recorded at historical cost, less accumulated depreciation, amortization and impairment, if applicable. Depreciation and amortization 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 operating systems used in its Smart TVs and records these amounts within other assets in the consolidated balance sheets. During the years ended December 31, 2023 and 2022, the Company capitalized $21.8 million and $0, respectively, of software development costs. Amortization expense of the costs capitalized will begin in 2024, as such no amortization expense has been recorded for the years ended December 31, 2023, 2022 and 2021.
These capitalized costs include personnel related costs for employees (including salaries, bonuses and benefits) 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 production costs for computer software that is to be used as an integral part of a product or process shall not be capitalized until both of the following conditions have been met: a) technological feasibility has been established for the software and b) all research and development activities for the other components of the product or process have been completed. Capitalization of computer software costs shall cease when the product is available for general release to customers. Costs of maintenance and customer support shall be charged to expense when related revenue is recognized or when those costs are incurred, whichever occurs first.
(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 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 assets also include 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 assets 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”) Accounting Standards Codification (“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 and distributors across the United States, as well as directly to consumers through our website, VIZIO.com, 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 retailers or distributors, or upon the date the goods are delivered to consumers from a sale through our website. Transfer of control occurs upon shipment or delivery to the customer. 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 customers.
Accounts receivable represents the unconditional right to receive consideration from customers. 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 customers 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 customers. Amounts billed to customers for shipping and handling costs are included in net revenue.
Platform+ Net Revenue
The Company generates Platform+ net 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 streaming inventory on WatchFree+ and third-party applications as well as banner placements on its SmartCast homescreen. The Company’s advertising revenue is recognized on a cost-per-thousand impressions delivered (“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 customer. Revenue is recognized at the point in time when transfer of title to the customer 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 in the consolidated balance sheets and then classified in cost of goods sold in the consolidated statements of operations. All shipping and handling costs are treated as fulfillment costs and are presented within cost of goods sold in the consolidated statements of operations.
(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 $5.3 million, $5.2 million, and $7.9 million for the years ended December 31, 2023, 2022 and 2021, 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 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. Cooperative advertising arrangements and marketing development funds recorded as a reduction of net revenue totaled $9.2 million, $7.2 million and $3.1 million for the years ended December 31, 2023, 2022 and 2021, 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 expenses consist 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, two or three-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)Share-Based Compensation
Share-based compensation expense resulting from grants of employee stock options, restricted stock awards (“RSAs”), restricted stock units (“RSUs”) and performance stock units (“PSUs”) 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 RSAs and RSUs is determined based on the fair value of the Company's common stock on the date of grant. The grant date fair value for the PSUs is determined using a Monte-Carlo simulation model. 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. For employee stock options in which the Company does not have significant history and that contain service conditions, the Company applies the simplified approach, in which the expected term of an award is presumed to be the mid-point between the vesting date and the expiration date of the award. As a result, if factors change or the Company uses different assumptions, share-based compensation expense could be materially different in the future.
(t)Net Income (Loss) 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 earnings (loss) per share attributable to common stockholders is calculated by dividing net income (loss) attributable to common stockholders by the weighted-average number of Class A and Class B common shares outstanding. Diluted earnings (loss) per share attributable to common stockholders adjusts the basic earnings (loss) per share attributable to common stockholders and the weighted-average number of common shares outstanding for the potentially dilutive impact of RSUs, PSUs and stock options using the treasury stock method.
(u)Fair Value of Financial Instruments
The accounting standard for fair value measurements provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. Fair value is defined as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. This accounting standard established a fair value hierarchy, which requires an entity to maximize the use of observable inputs, where available. The following summarizes the three levels of inputs required:
Level 1 – Quoted prices in active markets for identical assets or liabilities.
Level 2 – Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3 – Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability.
The Company’s Level 1 investments as of December 31, 2023 and 2022, consist of its Short-term investments and equity investments (see Note 4 – Investments).
The carrying amount of receivables, payables and other amounts arising out of the normal course of business approximates fair value because of the relatively short maturity of such instruments.
(v)Recently Issued Accounting Guidance
Accounting Standards Issued But Not Yet Adopted:
In November 2023, the FASB issued guidance, Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The guidance in this ASU requires companies to enhance their disclosure on significant segment expenses, and also adds additional disclosures around how companies determine their reportable segments. This standard will be effective for the year ended December 31, 2024. The Company is currently in the process of evaluating the impact of adopting ASU 2023-07 in 2024.
In December 2023, the FASB issued guidance, ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The guidance in this ASU requires companies to add additional disclosures surrounding income taxes, including rate reconciliation, and disaggregation of domestic and foreign revenue. This standard will be effective for the year ended December 31, 2025. The Company is currently in the process of evaluating the impact of adopting ASU 2023-09, but do not expect it to have a material impact on its consolidated financial statements.
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.
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Net Revenue
 12 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
Net Revenue Net Revenue
The Company derives revenue primarily from the sale of televisions and sound bars, advertising and data services.
As of December 31, 2023 and 2022, the Company has recorded $24.2 million and $22.0 million of contract assets, respectively. As of December 31, 2023, $20.3 million and $3.9 million of contract assets were recorded in prepaids and other current assets and other assets, respectively, in the accompanying consolidated balance sheets. As of December 31, 2022, all contract assets were recorded in prepaids and other current assets in the accompanying consolidated balance sheets. As of December 31, 2023, the Company recorded $2.1 million of contract liabilities, which are recorded in other current liabilities in the accompany consolidated balance sheets. There were no material contract liabilities as of December 31, 2022. Contract assets primarily represent revenue earnings over time for which the Company does not presently have an unconditional right to payment (generally not yet billable) based on the terms of the contracts. Contract liabilities consist of fees invoiced or paid by the Company's customers for which the associated performance obligations have not been satisfied and revenue has not been recognized based on the Company's revenue recognition criteria described above. 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,
202320222021
Net Revenue:
Customer A35 %38 %40 %
Customer B10 13 12 
Customer C8 10 10 
Customer A and Customer B are affiliates under common control with one another. Collectively, they comprised 45%, 51% and 52% of the Company’s net revenue for the years ended December 31, 2023, 2022 and 2021, respectively.
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Investments
 12 Months Ended
Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
Investments Investments
Short-term investments:
The Company purchases U.S. Treasury bills, which are recorded in short-term investments in the accompanying consolidated balance sheets. The Company is 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, 2023 and 2022, the maturity dates of all U.S. Treasury bills were within 12 months. The Company reviews these securities for other-than-temporary impairment at least quarterly or when there are changes in credit risk or other potential valuation concerns. When evaluating an investment for its current expected credit losses, the Company reviews factors such as historical experience with defaults, losses, credit ratings, term, market sector and macroeconomic trends, including current conditions. During the years ended December 31, 2023 and 2022, the Company did not recognize any impairment losses related to these securities.
The following table summarizes the Company’s short-term investments:
As of
December 31,
20232022
U.S. Treasury Bills:(In millions)
Maturity
1 year or less
1 year or less
Amortized cost$129.9 $58.9 
Gross unrealized gains0.2 — 
Gross unrealized losses— (0.2)
Estimated fair value$130.1 $58.7 
Equity investments:
The Company has investments in equity securities, which are recorded in other assets in the accompanying consolidated balance sheets amounting to $6.2 million and $4.6 million as of December 31, 2023 and 2022, respectively.
The Company records a majority of these investments in equity securities at cost of $6.0 million and $4.4 million, as of December 31, 2023 and 2022, respectively, as they do not have readily determinable fair value.
The remaining balance of investments is measured at fair value as the shares are publicly traded and have a readily determinable fair value, and are considered a Level 1 investment, of $0.2 million for both the years ended December 31, 2023 and 2022.
The Company periodically reviews the investments for possible impairment. There was no impairment or observable price changes on the investments during the years ended December 31, 2023 and 2022.
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Accounts Receivable
 12 Months Ended
Dec. 31, 2023
Receivables [Abstract]  
Accounts Receivable Accounts Receivable
Accounts receivable consists of the following:
As of
December 31,
20232022
(In millions)
Accounts receivable$383.4 $358.1 
Allowance for doubtful accounts(2.2)(0.2)
Total accounts receivable, net of allowances$381.2 $357.9 
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 years ended December 31, 2023 and 2022, the Company recorded bad debt expense of $2.0 million and $0.1 million, respectively. For the years ended December 31, 2023 and 2022, there were no material write-offs of accounts receivable.
The following customers account for more than 10% of accounts receivable in at least one of the fiscal years presented:
As of
December 31,
20232022
Accounts receivable:
Customer A30 %38 %
Customer B9 12 
Customer A and Customer B are affiliates under common control with one another. Collectively, they comprised 39% and 50% of the Company’s total accounts receivable as of December 31, 2023 and 2022, respectively.
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Inventories
 12 Months Ended
Dec. 31, 2023
Inventory Disclosure [Abstract]  
Inventories Inventories
Inventories consist of the following:
As of
December 31,
20232022
(In millions)
Inventory on hand$3.0 $12.6 
Inventory in transit - outbound3.3 2.9 
Inventory in transit - inbound0.5 — 
Total inventory$6.8 $15.5 
Significant Manufacturers
The Company purchases a significant amount of its product inventory from certain manufacturers. This 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,
20232022
Inventory purchases:
Supplier A - related party36 %45 %
Supplier B19 22 
Supplier C31 15 
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 $0.8 million and $3.0 million due from the manufacturers as of December 31, 2023 and 2022, respectively. These amounts are in other receivables due from related parties and prepaids and other current assets on the consolidated balance sheets. 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.
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Property, Equipment and Software
 12 Months Ended
Dec. 31, 2023
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,
20232022
(In millions)
Land$2.6 $— 
Building7.6 10.1 
Machinery and equipment1.1 2.0 
Leasehold improvements9.3 4.2 
Furniture and fixtures5.1 4.7 
Computer and software16.9 17.7 
Construction in progress0.4 4.8 
Total property, equipment and software43.0 43.5 
Less accumulated depreciation and amortization(23.3)(23.6)
Total property, equipment and software, net$19.7 $19.9 
Depreciation and amortization expense for fixed assets was $7.4 million, $3.6 million and $2.8 million for the years ended December 31, 2023, 2022 and 2021, respectively.
During the year ended December 31, 2023, we reclassified $2.6 million of property, equipment and software from the ‘Building’ category into the ‘Land’ category in the above table.
Disposals of fully depreciated assets reduced property, equipment and software and accumulated depreciation and amortization by $7.7 million with no impact to the statements of operations for the year ended December 31, 2023. There were no material disposals for the year ended December 31, 2022.
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Segment Information
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Segment Information Segment Information
Operating 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 statements of operations.
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Goodwill
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill Goodwill
The Company’s goodwill balance was $44.8 million as of December 31, 2023 and 2022. 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, 2023, 2022 and 2021.
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Accrued Expenses
 12 Months Ended
Dec. 31, 2023
Payables and Accruals [Abstract]  
Accrued Expenses Accrued Expenses
The Company’s accrued expenses consisted of the following:
As of
December 31,
20232022
(In millions)
Accrued price protection$33.4 $57.6 
Accrued other customer related expenses55.8 49.5 
Accrued supplier/partner related expenses46.1 54.0 
Accrued payroll expenses40.8 36.1 
Accrued other expenses2.5 7.7 
Total accrued expenses$178.6 $204.9 
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Accrued Royalties
 12 Months Ended
Dec. 31, 2023
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.
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, 2023 is as follows (in millions):
2024$21.6 
202512.7 
20266.5 
20276.0 
20281.5 
2029 & thereafter— 
Total$48.3 
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.
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.
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Leases
 12 Months Ended
Dec. 31, 2023
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 2029.
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,
Classification20232022
Assets:
Right of use assetsOther assets$13.8 $14.0 
Liabilities:
Lease liabilities-currentOther current liabilities$3.5 $3.5 
Lease liabilities-noncurrentOther long-term liabilities$11.0 $11.5 
Weighted average remaining lease term3.8 years4.1 years
Weighted average discount rate6.30 %4.90 %
The following operating lease costs were included in selling, general and administrative expenses in the Company’s consolidated statements of operations:
Year Ended
December 31,
202320222021
(In millions)
Operating lease costs$5.9 $5.4 $4.1 
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, 2023.
(In millions)
2024$4.8 
20254.3 
20264.3 
20272.5 
20280.7 
2029 and thereafter0.2 
Total minimum lease payments16.8 
Less imputed interest(2.3)
Total lease liabilities$14.5 
The future lease payments above exclude future minimum sublease income due under noncancelable subleases as of December 31, 2023 which are not material.
VIZIO has a 13% ownership interest in a company that owns and manages the building in which VIZIO maintains its corporate headquarters in Irvine, California. The company is principally owned by two related parties, and VIZIO does not have significant influence over the operations and governance of the company. As such, VIZIO accounts for the $0.5 million investment in the members’ equity of the company as an investment in equity securities carried at original cost, which is included in other assets in the consolidated balance sheets as of December 31, 2023 and 2022. Additionally, VIZIO is party to a noncancelable operating lease with the company, which will expire in January 2027. Net rent expense under this operating lease was approximately $1.1 million, $1.0 million and $0.7 million for the years ended December 31, 2023, 2022 and 2021, 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, 2023, 2022 and 2021, rental income from tenants was approximately $0.4 million in each year, which is recorded in other income (expense) in the accompanying consolidated statements of operations.
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Commitments and Contingencies
 12 Months Ended
Dec. 31, 2023
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, 2023, no liabilities were recorded related to this supply commitment.
(b)Data Support Spend Commitments
On June 6. 2017, the Company entered into an agreement with an outside company, which provides us data support services. On October 21, 2021, an addendum was executed, which detailed a future spend commitment to continue to use the services provided. The committed future spend per this addendum is as follows:
(In millions)
2024$31.2 
202534.1 
202629.8 
Total$95.1 
(c)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.
On April 13, 2021, the Company entered into an amendment to the Credit Agreement, which (i) extended the maturity date to April 13, 2024, (ii) provided an update for use of a London Interbank Offering Rate (“LIBOR”) successor rate and (iii) provided 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.
On April 25, 2023, the Company entered into another amendment to the Credit Agreement which replaced the reference of LIBOR to Secured Overnight Financing Rate (“SOFR”).
Fees related to this unused line of credit were not material in any of the periods presented. For the years ended December 31, 2023 and 2022, there were no draws on the line of credit and the Company was in compliance with all debt covenants.
(d)Legal Matters
Advanced Micro Devices, Inc.
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.
AmTRAN Technology Co., Ltd.
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, 2023, VIZIO continued to maintain this reserve, subject to further reconciliation and distribution.
Maxell, Ltd. & Maxell Holdings, Ltd.
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.) (the “Maxell CD Cal Complaint”).
Additionally, on September 15, 2022, Maxell filed a complaint with the ITC 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 ITC instituted an investigation based on Maxell’s complaint. See In the Matter of Certain Smart Televisions, Inv. No. 337-TA-1338 (collectively with the Maxell CD Cal Complaint, the “Maxell Matters”).
On August 24, 2023, the Company and Maxell executed a definitive settlement agreement regarding the Maxell Matters. This settlement did not have a material impact to the consolidated statements of operations.
DivX, LLC
On October 24, 2022, DivX, LLC filed a complaint with the ITC 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 parties executed a definitive settlement agreement, effective August 11, 2023, regarding these legal proceedings. This settlement did not have a material impact to the consolidated statements of operations.
v3.24.0.1
Stockholders' Equity
 12 Months Ended
Dec. 31, 2023
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 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 had no voting rights but were entitled to participate as one class of stock in the election of one member of the 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: There were no accumulated preferred dividends as of December 31, 2023 and 2022, 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, 2023, 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 201,477,931 shares are issued and 197,648,110 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.
On July 1, 2023, 634,185 shares of Class B common stock were converted into 634,185 fully paid and nonassessable shares of Class A common stock. Subsequently, on September 26, 2023 the Board of Directors approved the retirement of such shares of Class B common stock, at which time they resumed the status of authorized and unissued.
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 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 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.
v3.24.0.1
Share-Based Compensation
 12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Share-Based Compensation Share-Based Compensation
In August 2017, the 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 2017 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, 2023, options to purchase a total of 691,757 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 Board of Directors as there was no public market for the underlying common stock. The 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 RSA’s and RSUs is determined based on the fair value of the Company's common stock on the date of grant. The grant date fair value of PSUs is determined using the Monte-Carlo simulation model.
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, 2023 and 2022 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, 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 
Granted1.3 6.73 
Exercised(0.6)3.89 $2.5 
Forfeited(0.7)10.34 
Cancelled(0.2)$15.18 
Outstanding as of December 31, 202314.2 $7.72 6.5$25.2 
Stock options vested and exercisable as of December 31, 20238.8 $6.36 5.3$23.5 
The following provides information on the weighted-average assumptions used for stock options granted during the years ended December 31, 2023, 2022, and 2021 as follows (shares in millions):
Year Ended
December 31,
202320222021
Number of options granted1.35.02.9
Volatility factor45.9 %45.8 %43.0 %
Expected term6.25 years6.25 years6.25 years
Dividend yield0.0 %0.8 %1.1 %
Risk-free interest rate3.8 %2.8 %1.1 %
Fair market value per share of common stock at the time of grant$6.73 $8.99 $21.19 
Fair market value per option determined using a Black-Scholes-Merton Option pricing model for purposes of determining compensation expense$3.37 $4.00 $9.22 
The assumptions above include those used in determining the fair value of the 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, 2023, the Company had $17.6 million of unrecognized compensation costs related to stock options, which is expected to be recognized over a weighted-average vesting period of approximately 2.0 years.
Restricted Stock Awards
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, 2023, 2022 and 2021, the Company expensed $0.2 million, $0.3 million and $0.7 million related to these awards, respectively. The restricted stock awards fully vested during the year ended December 31, 2023.
Restricted Stock Units
RSU activity for the years ended December 31, 2023 and 2022 was as follows:
Number of SharesWeighted Average Grant Date Fair Value
(In millions)
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 
Granted9.1 6.96
Released(1.9)13.10
Forfeited(1.3)11.33
Outstanding as of December 31, 202312.2 $8.89 
The weighted-average grant date fair value per share of restricted stock units granted during the years ended December 31, 2023 and 2022 was $6.96 and $9.56, respectively. The intrinsic value of restricted stock units that vested during the year ended December 31, 2023 was $12.9 million. At December 31, 2023, the intrinsic value of unvested restricted stock units was $93.8 million. 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. Total unrecognized compensation cost related to restricted stock units as of December 31, 2023 was $91.3 million which the Company expects to recognize over a weighted-average period of approximately 2.9 years.
Performance Stock Units
The Company has granted performance stock units (“PSUs”) to select executive employees that vest over an approximately four-year service period based on a performance metric tied to the Company’s total shareholder return relative to the total shareholder return of a peer group over a one-year performance period. The grant date fair value for such PSUs was estimated using a Monte-Carlo simulation model covering the one year performance period. Between 0% and 200% of the PSUs will become eligible to vest (“eligible PSUs”) based on achievement of the performance goal, and any eligible PSUs will vest in increments over a period of approximately four years. The PSUs are subject to both time-based and market-based vesting conditions.
A summary of the Company’s activity related to PSUs as of December 31, 2023 is presented below:
Number of SharesWeighted Average Grant Date Fair Value
(In millions)
Outstanding at December 31, 2022— $— 
Granted1.7 6.72 
Outstanding at December 31, 20231.7 $6.72 
The weighted-average input assumptions used by the Company were as follows (shares in millions):
Year Ended
December 31,
2023
Number of PSUs granted1.7 
Volatility61.3 %
Expected term (years)4 years
Dividend yield0.0 %
Risk-free interest rate5.0 %
Fair value of common stock$6.49 
Grant date fair value per PSU determined using a Monte-Carlo simulation model for purposes of determining compensation expense$6.72 
As of December 31, 2023, the Company had $7.9 million of unrecognized share-based compensation expense related to PSUs, which the Company expects to recognize over a weighted average vesting period of approximately 3.5 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 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, 2023, 2022 and 2021, the Company recognized approximately $0.8 million, $0.9 million and $0.6 million, respectively, in stock based compensation expense related to the ESPP. During the years ended December 31, 2023 and 2022, 369,017 and 305,190 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.
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, 2023, 2022 and 2021 of $43.5 million, $42.5 million, and $134.4 million, respectively, was recognized in the consolidated statements of operations. Of this amount, approximately $3.1 million, $1.3 million and $1.1 million is included in Cost of goods sold for the years ended December 31, 2023, 2022 and 2021, respectively, and $6.0 million, $2.3 million and $1.8 million is included in Research and development expense, respectively, with the remaining amount included in Selling, general and administrative expense in the consolidated statements of operations.
v3.24.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The components of Provision for income taxes consist of the following:
Year Ended
December 31,
202320222021
(In millions)
Current:
Federal$6.8 $20.9 $14.7 
State1.5 6.2 1.5 
Foreign— 0.7 0.6 
Total current income tax expense8.3 27.8 16.8 
Deferred:
Federal0.9 (17.6)(2.2)
State0.7 (3.2)(1.5)
Total deferred income tax (benefit) expense1.6 (20.8)(3.7)
Total$9.9 $7.0 $13.1 
The tax effects of temporary differences that give rise to significant portions of deferred tax assets (liabilities) are as follows:
As of
December 31,
20232022
(In millions)
Deferred tax assets:
Accrued intellectual property$8.0 $5.4 
Stock compensation5.5 3.1 
Accrued rebates5.5 8.6 
Accrued legal fees0.4 1.6 
Accrued recycling fees3.1 2.9 
Accrued other1.2 1.7 
Leases2.7 2.5 
NOL carryforwards5.2 2.2 
Section 174 R&D capitalization29.6 24.9 
Other0.7 3.0 
61.9 55.9 
Less valuation allowance(5.5)(1.1)
Deferred tax assets$56.4 $54.8 
Deferred tax liabilities:
Federal impact of state taxes$(3.0)$(1.4)
Depreciation and amortization(3.8)(2.2)
Deferred tax liabilities(6.8)(3.6)
Net deferred tax assets$49.6 $51.2 
As of December 31, 2023, the Company has gross federal and state net operating loss carryforwards of $2.6 million and $90.8 million, respectively, which, if unused, will partially expire in years 2033 through 2043. Federal 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. It is unknown if the benefits of the Federal net operating losses will be realized in the future in light of the subsequent event (see Note 20). A valuation allowance was taken on the net operating losses of separate filing states.
As of December 31, 2023, 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.
As of December 31, 2023, the Company has a valuation allowance of $5.2 million on the deferred tax assets related to state and foreign net operating losses and research and development credit carryforwards. The change to the valuation allowance was primarily due to deferred tax assets and net operating losses of its subsidiary of being at loss.
The income tax provision differs from the amount obtained by applying the statutory tax rate as follows:
As of
December 31,
202320222021
(In millions)
Income tax provision at statutory rate$8.0 $1.4 $(5.5)
State income taxes (net of federal benefit)2.6 2.2 2.5 
Permanent tax differences5.9 3.6 17.8 
Tax differential on foreign earnings— 0.1 0.1 
Change in valuation allowance5.6 — — 
Tax credits(9.3)(1.2)(6.9)
Tax contingencies2.2 0.3 4.6 
Prior year adjustments(5.1)0.6 0.3 
Other— — 0.2 
Total provision for income taxes$9.9 $7.0 $13.1 
As of December 31, 2023, the Company has $8.4 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,
20232022
(In millions)
Unrecognized tax benefit at January 1$6.7 $7.0 
Gross increases/(decreases) – tax position in prior period(0.2)— 
Gross increases/(decreases) – tax position in current period3.2 0.4 
Settlement(1.2)(0.7)
Lapse of statute of limitations(0.7)— 
Unrecognized tax benefit at December 31$7.8 $6.7 
As of December 31, 2023 and 2022, unrecognized tax benefits of $7.6 million and $6.3 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 $(0.1) million, $(0.2) million and $0.1 million for the years ended December 31, 2023, 2022 and 2021, respectively. The total amount of interest and penalties related to unrecognized tax benefits in the consolidated balance sheets is $0.2 million and $1.1 million as of December 31, 2023 and 2022, respectively.
The Company recorded a provision for income taxes of $9.9 million resulting in an effective tax rate of 26%. Our effective tax rate became closer to the statutory rate of 21% due to increased pretax book income and research and development tax credit despite of the permanent book versus tax differences, including the share-based compensation expense and the compensation deduction limitation on certain executive officers as a publicly held corporation.
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 2019 since the IRS federal income tax audit for 2015, 2016 and 2017 was completed in 2022. The Company also completed the Pennsylvania 2019 and 2020 state income tax audit in 2023, but recently received an audit letter for Pennsylvania 2021 and 2022 tax years. 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. The Company also files income tax returns in various foreign jurisdictions. The following tax years remain subject to examinations:
Major jurisdictionOpen years
China2020-2022
Mexico2018-2022
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Net Income (Loss) Per Share
 12 Months Ended
Dec. 31, 2023
Earnings Per Share [Abstract]  
Net Income (Loss) Per Share Net Income (Loss) Per Share
The basic and diluted earnings (loss) 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 and restricted stock units 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 income (loss) in calculating the net income (loss) 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 and restricted stock units 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 earnings (loss) per share is computed by dividing the net income (loss) 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 earnings (loss) per share represents net income (loss) divided by the weighted-average number of common shares outstanding, inclusive of the effect of potential common shares, if dilutive. For the year ended December 31, 2023, the potential dilutive shares relating to outstanding stock options and restricted stock units were included in the computation of diluted earnings. For the years ended December 31, 2022 and 2021, the potential dilutive shares were not included in the computation of diluted earnings (loss) per common share as the effect of including these shares in the calculation would have been anti-dilutive.
Basic and diluted earnings (loss) per share and the weighted-average shares outstanding have been computed for all periods as shown below:
Year Ended
December 31,
202320222021
Class AClass BClass AClass BClass AClass B
Numerator(In millions, except per share amounts)
Net income (loss) attributable to common shareholders$17.2 $11.0 $(0.2)$(0.2)$(24.3)$(15.1)
Denominator
Weighted-average common shares119.8 76.5 116.3 76.8 108.1 67.4 
Weighted-average effect of dilutive securities:
Employee stock options and RSUs4.1 — — — — — 
Weighted average common shares outstanding-diluted123.9 76.5 116.3 76.8 108.1 67.4 
Basic net income (loss) per share attributable to common stockholders$0.14 $0.14 $(0.00)$(0.00)$(0.22)$(0.22)
Diluted net income (loss) per share attributable to common stockholders$0.14 $0.14 $(0.00)$(0.00)$(0.22)$(0.22)
Anti-dilutive equity awards under stock-based award plans excluded from the determination of diluted EPS13.6 — 20.8 — 17.1 — 
As of December 31, 2023, the PSUs granted in 2023 had an expected achievement level of 37%. No similar awards were outstanding as of December 31, 2022. Refer to Note 15 for additional information related to the PSUs.
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Defined Contribution Retirement Plan
 12 Months Ended
Dec. 31, 2023
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, 2023, the Company approved discretionary matching contributions of $4.5 million which will be funded in 2024. For the years ended December 31, 2022 and 2021, the Company approved discretionary matching contributions of $2.6 million and $1.8 million respectively, which were funded in March 2023 and 2022, respectively.
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Other Income, Net
 12 Months Ended
Dec. 31, 2023
Other Income and Expenses [Abstract]  
Other Income, Net Other Income, Net
On 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.
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Subsequent Events
 12 Months Ended
Dec. 31, 2023
Subsequent Events [Abstract]  
Subsequent Events 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, 2023 and through February 28, 2024, the date that the financial statements were available to be issued.
Pending Merger with Walmart
On February 19, 2024, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Walmart Inc., a Delaware corporation (“Walmart”), and Vista Acquisition Corp., a Delaware corporation and a wholly owned subsidiary of Walmart (“Merger Sub”). The Merger Agreement provides that, subject to the terms and conditions set forth in the Merger Agreement, Merger Sub will merge with and into the Company (the “Merger”), with the Company continuing as the surviving corporation of the Merger and a wholly owned subsidiary of Walmart. At the effective time of the Merger, each share of the Company’s Class A common stock and Class B common stock issued and outstanding (subject to certain customary exceptions specified in the Merger Agreement) will automatically be converted into the right to receive $11.50 in cash, without interest and subject to applicable withholding taxes. On February 19, 2024, following the execution of the Merger Agreement, the Company’s stockholders holding approximately 89% of the voting power of the Company’s outstanding common stock adopted the Merger Agreement and approved the transactions contemplated thereby, including the Merger, by written consent. No other approval of the Company’s stockholders is required to complete the transaction.
The Merger Agreement generally requires the Company to operate its business in the ordinary course and in compliance with applicable laws, and subjects the Company to customary interim operating covenants that restrict the Company from taking
certain specified actions without Walmart’s approval, in each case, until the Merger is completed or the Merger Agreement is terminated in accordance with its terms and subject to certain exceptions including as required by applicable law.
The Merger Agreement may be terminated by mutual written consent of the Company and Walmart. In addition, either the Company or Walmart may terminate the Merger Agreement in certain circumstances, including if: (i) the Merger is not completed by February 19, 2025 (which may be extended to August 19, 2025 under certain circumstances) (the “End Date”); (ii) a governmental authority of competent jurisdiction has issued a final and non-appealable order preventing the consummation of the Merger; or (iii) the other party breaches its representations, warranties or covenants in the Merger Agreement, such that the applicable conditions to closing set forth in the Merger Agreement would not be satisfied, subject in certain cases, to the right of the breaching party to cure the breach. The Company may terminate the Merger Agreement in certain additional circumstances, including: (i) to allow the Company to enter into an agreement providing for an alternative acquisition transaction that constitutes a Superior Offer (as defined in the Merger Agreement) prior to 5:00 p.m. Central time on April 4, 2024 (the “Subsequent Time”); or (ii) if after February 19, 2025, the Merger has not been completed because certain governmental authorities have commenced or overtly asserted an intent to commence certain specified investigations. Upon termination of the Merger Agreement in certain circumstances, the Company is obligated to pay Walmart a termination fee of $78.0 million. Specifically, this termination fee is payable by the Company to Walmart if the Merger Agreement is terminated: (i) by the Company, prior to the Subsequent Time, in order to enter into an alternative acquisition agreement to accept a Superior Offer; and (ii) by the Company or Walmart if (a) the Merger Agreement is terminated for the failure to consummate the Merger by the End Date, (b) at the time of the termination of the Merger Agreement, a Specified Circumstance (as defined in the Merger Agreement) does not exist, (c) prior to the termination of the Merger Agreement an alternative acquisition proposal has been made or publicly announced and (d) within 12 months following the termination of the Merger Agreement, the Company enters into and subsequently consummates an Acquisition Transaction (as defined in the Merger Agreement).
The Company is subject to customary “no-shop” restrictions prohibiting the Company and the Company’s representatives from, among other things, soliciting alternative acquisition proposals, providing confidential information to third parties in connection with an alternative acquisition proposal, and engaging in discussions or negotiations with, third parties with respect to alternative acquisition proposals. However, prior to the Subsequent Time, the Company is permitted, under certain circumstances, to provide information to, and enter into discussions and negotiations with third parties with respect to an unsolicited alternative acquisition proposal that the Board of Directors has determined is, or would reasonably be expected to result in, a Superior Offer. Subject to the satisfaction of certain conditions and under certain circumstances specified in the Merger Agreement, prior to the Subsequent Time and following compliance with Walmart’s “match” rights specified in the Merger Agreement the Company is permitted to terminate the Merger Agreement to enter into an alternative acquisition transaction that the Board of Directors has determined is a Superior Offer. The consummation of the Merger cannot occur prior to the Subsequent Time.
Completion of the Merger is subject to certain closing conditions set forth in the Merger Agreement (which conditions may also be waived by the party to which they apply), including: (1) the adoption of the Merger Agreement by the Company’s stockholders (which has occurred); (2) the expiration or early termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (“HSR Clearance”), and the absence of any voluntary agreement to delay the Merger in order to obtain HSR Clearance; (3) the absence of an order or law preventing the consummation of the Merger; (4) the accuracy of representations and warranties of the parties, subject to applicable materiality qualifiers; (5) the performance of each party’s covenants in all material respects; (6) the absence of specified governmental litigation relating to the Merger that is pending or overtly asserted; and (7) no Material Adverse Effect (as defined in the Merger Agreement) having occurred with respect to VIZIO and its subsidiaries since the date of the Merger Agreement that is continuing. The Merger is expected to be completed in the second calendar quarter of 2024; however, the exact timing of the completion of the Merger, if it occurs at all, cannot be predicted because the Merger is subject to the satisfaction of the closing conditions, including obtaining HSR Clearance.
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Pay vs Performance Disclosure - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Pay vs Performance Disclosure      
Net (loss) income $ 28.2 $ (0.4) $ (39.4)
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Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2023
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
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Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Basis of Consolidation Basis of Consolidation
The consolidated financial statements include the accounts of VIZIO and its 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 income (loss). 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.
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 purchased with an original maturity date of greater than three months, but less than 12 months as of the reporting date.
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 certain 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 and cash equivalents in banks. The Company maintains its cash and cash equivalents 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 average cost 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, equipment and software are recorded at historical cost, less accumulated depreciation, amortization and impairment, if applicable. Depreciation and amortization 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 operating systems used in its Smart TVs and records these amounts within other assets in the consolidated balance sheets. During the years ended December 31, 2023 and 2022, the Company capitalized $21.8 million and $0, respectively, of software development costs. Amortization expense of the costs capitalized will begin in 2024, as such no amortization expense has been recorded for the years ended December 31, 2023, 2022 and 2021.
These capitalized costs include personnel related costs for employees (including salaries, bonuses and benefits) 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 production costs for computer software that is to be used as an integral part of a product or process shall not be capitalized until both of the following conditions have been met: a) technological feasibility has been established for the software and b) all research and development activities for the other components of the product or process have been completed. Capitalization of computer software costs shall cease when the product is available for general release to customers. Costs of maintenance and customer support shall be charged to expense when related revenue is recognized or when those costs are incurred, whichever occurs first.
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 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 assets also include 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 assets 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”) Accounting Standards Codification (“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 and distributors across the United States, as well as directly to consumers through our website, VIZIO.com, 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 retailers or distributors, or upon the date the goods are delivered to consumers from a sale through our website. Transfer of control occurs upon shipment or delivery to the customer. 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 customers.
Accounts receivable represents the unconditional right to receive consideration from customers. 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 customers 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 customers. Amounts billed to customers for shipping and handling costs are included in net revenue.
Platform+ Net Revenue
The Company generates Platform+ net 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 streaming inventory on WatchFree+ and third-party applications as well as banner placements on its SmartCast homescreen. The Company’s advertising revenue is recognized on a cost-per-thousand impressions delivered (“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 customer. Revenue is recognized at the point in time when transfer of title to the customer 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 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 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. Cooperative advertising arrangements and marketing development funds recorded as a reduction of net revenue totaled $9.2 million, $7.2 million and $3.1 million for the years ended December 31, 2023, 2022 and 2021, 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 in the consolidated balance sheets and then classified in cost of goods sold in the consolidated statements of operations. All shipping and handling costs are treated as fulfillment costs and are presented within cost of goods sold in the consolidated statements of operations.
Recycling Costs 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 $5.3 million, $5.2 million, and $7.9 million for the years ended December 31, 2023, 2022 and 2021, 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 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.
Research and Development Costs Research and Development Costs
Research and development expenses consist 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, two or three-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 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.
Share-Based Compensation Share-Based Compensation
Share-based compensation expense resulting from grants of employee stock options, restricted stock awards (“RSAs”), restricted stock units (“RSUs”) and performance stock units (“PSUs”) 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 RSAs and RSUs is determined based on the fair value of the Company's common stock on the date of grant. The grant date fair value for the PSUs is determined using a Monte-Carlo simulation model. 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. For employee stock options in which the Company does not have significant history and that contain service conditions, the Company applies the simplified approach, in which the expected term of an award is presumed to be the mid-point between the vesting date and the expiration date of the award. As a result, if factors change or the Company uses different assumptions, share-based compensation expense could be materially different in the future.
Net Income (Loss) Per Share Net Income (Loss) 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 earnings (loss) per share attributable to common stockholders is calculated by dividing net income (loss) attributable to common stockholders by the weighted-average number of Class A and Class B common shares outstanding. Diluted earnings (loss) per share attributable to common stockholders adjusts the basic earnings (loss) per share attributable to common stockholders and the weighted-average number of common shares outstanding for the potentially dilutive impact of RSUs, PSUs and stock options using the treasury stock method.
Fair Value of Financial Instruments Fair Value of Financial Instruments
The accounting standard for fair value measurements provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. Fair value is defined as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. This accounting standard established a fair value hierarchy, which requires an entity to maximize the use of observable inputs, where available. The following summarizes the three levels of inputs required:
Level 1 – Quoted prices in active markets for identical assets or liabilities.
Level 2 – Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3 – Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability.
The Company’s Level 1 investments as of December 31, 2023 and 2022, consist of its Short-term investments and equity investments (see Note 4 – Investments).
The carrying amount of receivables, payables and other amounts arising out of the normal course of business approximates fair value because of the relatively short maturity of such instruments.
Recently Issued Accounting Guidance Recently Issued Accounting Guidance
Accounting Standards Issued But Not Yet Adopted:
In November 2023, the FASB issued guidance, Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The guidance in this ASU requires companies to enhance their disclosure on significant segment expenses, and also adds additional disclosures around how companies determine their reportable segments. This standard will be effective for the year ended December 31, 2024. The Company is currently in the process of evaluating the impact of adopting ASU 2023-07 in 2024.
In December 2023, the FASB issued guidance, ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The guidance in this ASU requires companies to add additional disclosures surrounding income taxes, including rate reconciliation, and disaggregation of domestic and foreign revenue. This standard will be effective for the year ended December 31, 2025. The Company is currently in the process of evaluating the impact of adopting ASU 2023-09, but do not expect it to have a material impact on its consolidated financial statements.
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.
v3.24.0.1
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Schedule of Property, Equipment and Software, Net Depreciation and amortization 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,
20232022
(In millions)
Land$2.6 $— 
Building7.6 10.1 
Machinery and equipment1.1 2.0 
Leasehold improvements9.3 4.2 
Furniture and fixtures5.1 4.7 
Computer and software16.9 17.7 
Construction in progress0.4 4.8 
Total property, equipment and software43.0 43.5 
Less accumulated depreciation and amortization(23.3)(23.6)
Total property, equipment and software, net$19.7 $19.9 
v3.24.0.1
Net Revenue (Tables)
 12 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [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,
202320222021
Net Revenue:
Customer A35 %38 %40 %
Customer B10 13 12 
Customer C8 10 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,
20232022
Accounts receivable:
Customer A30 %38 %
Customer B9 12 
The Company has the following significant concentrations related to suppliers:
Year Ended
December 31,
20232022
Inventory purchases:
Supplier A - related party36 %45 %
Supplier B19 22 
Supplier C31 15 
v3.24.0.1
Investments (Tables)
 12 Months Ended
Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
Summary of Debt Securities, Held-to-Maturity
The following table summarizes the Company’s short-term investments:
As of
December 31,
20232022
U.S. Treasury Bills:(In millions)
Maturity
1 year or less
1 year or less
Amortized cost$129.9 $58.9 
Gross unrealized gains0.2 — 
Gross unrealized losses— (0.2)
Estimated fair value$130.1 $58.7 
v3.24.0.1
Accounts Receivable (Tables)
 12 Months Ended
Dec. 31, 2023
Receivables [Abstract]  
Schedule of Accounts Receivable
Accounts receivable consists of the following:
As of
December 31,
20232022
(In millions)
Accounts receivable$383.4 $358.1 
Allowance for doubtful accounts(2.2)(0.2)
Total accounts receivable, net of allowances$381.2 $357.9 
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,
202320222021
Net Revenue:
Customer A35 %38 %40 %
Customer B10 13 12 
Customer C8 10 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,
20232022
Accounts receivable:
Customer A30 %38 %
Customer B9 12 
The Company has the following significant concentrations related to suppliers:
Year Ended
December 31,
20232022
Inventory purchases:
Supplier A - related party36 %45 %
Supplier B19 22 
Supplier C31 15 
v3.24.0.1
Inventories (Tables)
 12 Months Ended
Dec. 31, 2023
Inventory Disclosure [Abstract]  
Schedule of Inventories
Inventories consist of the following:
As of
December 31,
20232022
(In millions)
Inventory on hand$3.0 $12.6 
Inventory in transit - outbound3.3 2.9 
Inventory in transit - inbound0.5 — 
Total inventory$6.8 $15.5 
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,
202320222021
Net Revenue:
Customer A35 %38 %40 %
Customer B10 13 12 
Customer C8 10 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,
20232022
Accounts receivable:
Customer A30 %38 %
Customer B9 12 
The Company has the following significant concentrations related to suppliers:
Year Ended
December 31,
20232022
Inventory purchases:
Supplier A - related party36 %45 %
Supplier B19 22 
Supplier C31 15 
v3.24.0.1
Property, Equipment and Software (Tables)
 12 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
Schedule of Property, Equipment and Software, Net Depreciation and amortization 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,
20232022
(In millions)
Land$2.6 $— 
Building7.6 10.1 
Machinery and equipment1.1 2.0 
Leasehold improvements9.3 4.2 
Furniture and fixtures5.1 4.7 
Computer and software16.9 17.7 
Construction in progress0.4 4.8 
Total property, equipment and software43.0 43.5 
Less accumulated depreciation and amortization(23.3)(23.6)
Total property, equipment and software, net$19.7 $19.9 
v3.24.0.1
Accrued Expenses (Tables)
 12 Months Ended
Dec. 31, 2023
Payables and Accruals [Abstract]  
Schedule of Accrued Expenses
The Company’s accrued expenses consisted of the following:
As of
December 31,
20232022
(In millions)
Accrued price protection$33.4 $57.6 
Accrued other customer related expenses55.8 49.5 
Accrued supplier/partner related expenses46.1 54.0 
Accrued payroll expenses40.8 36.1 
Accrued other expenses2.5 7.7 
Total accrued expenses$178.6 $204.9 
v3.24.0.1
Accrued Royalties (Tables)
 12 Months Ended
Dec. 31, 2023
Payables and Accruals [Abstract]  
Schedule of Future Commitments on Royalty Obligations
A summary of future commitments on royalty obligations as of December 31, 2023 is as follows (in millions):
2024$21.6 
202512.7 
20266.5 
20276.0 
20281.5 
2029 & thereafter— 
Total$48.3 
The committed future spend per this addendum is as follows:
(In millions)
2024$31.2 
202534.1 
202629.8 
Total$95.1 
v3.24.0.1
Leases (Tables)
 12 Months Ended
Dec. 31, 2023
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,
Classification20232022
Assets:
Right of use assetsOther assets$13.8 $14.0 
Liabilities:
Lease liabilities-currentOther current liabilities$3.5 $3.5 
Lease liabilities-noncurrentOther long-term liabilities$11.0 $11.5 
Weighted average remaining lease term3.8 years4.1 years
Weighted average discount rate6.30 %4.90 %
Schedule of Lease Costs
The following operating lease costs were included in selling, general and administrative expenses in the Company’s consolidated statements of operations:
Year Ended
December 31,
202320222021
(In millions)
Operating lease costs$5.9 $5.4 $4.1 
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, 2023.
(In millions)
2024$4.8 
20254.3 
20264.3 
20272.5 
20280.7 
2029 and thereafter0.2 
Total minimum lease payments16.8 
Less imputed interest(2.3)
Total lease liabilities$14.5 
v3.24.0.1
Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Commitment Future Spend Per this Addendum
A summary of future commitments on royalty obligations as of December 31, 2023 is as follows (in millions):
2024$21.6 
202512.7 
20266.5 
20276.0 
20281.5 
2029 & thereafter— 
Total$48.3 
The committed future spend per this addendum is as follows:
(In millions)
2024$31.2 
202534.1 
202629.8 
Total$95.1 
v3.24.0.1
Share-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2023
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, 2023 and 2022 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, 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 
Granted1.3 6.73 
Exercised(0.6)3.89 $2.5 
Forfeited(0.7)10.34 
Cancelled(0.2)$15.18 
Outstanding as of December 31, 202314.2 $7.72 6.5$25.2 
Stock options vested and exercisable as of December 31, 20238.8 $6.36 5.3$23.5 
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, 2023, 2022, and 2021 as follows (shares in millions):
Year Ended
December 31,
202320222021
Number of options granted1.35.02.9
Volatility factor45.9 %45.8 %43.0 %
Expected term6.25 years6.25 years6.25 years
Dividend yield0.0 %0.8 %1.1 %
Risk-free interest rate3.8 %2.8 %1.1 %
Fair market value per share of common stock at the time of grant$6.73 $8.99 $21.19 
Fair market value per option determined using a Black-Scholes-Merton Option pricing model for purposes of determining compensation expense$3.37 $4.00 $9.22 
The weighted-average input assumptions used by the Company were as follows (shares in millions):
Year Ended
December 31,
2023
Number of PSUs granted1.7 
Volatility61.3 %
Expected term (years)4 years
Dividend yield0.0 %
Risk-free interest rate5.0 %
Fair value of common stock$6.49 
Grant date fair value per PSU determined using a Monte-Carlo simulation model for purposes of determining compensation expense$6.72 
Schedule of Restricted Stock Unit Activity
RSU activity for the years ended December 31, 2023 and 2022 was as follows:
Number of SharesWeighted Average Grant Date Fair Value
(In millions)
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 
Granted9.1 6.96
Released(1.9)13.10
Forfeited(1.3)11.33
Outstanding as of December 31, 202312.2 $8.89 
Share-Based Payment Arrangement, Performance Shares, Activity
A summary of the Company’s activity related to PSUs as of December 31, 2023 is presented below:
Number of SharesWeighted Average Grant Date Fair Value
(In millions)
Outstanding at December 31, 2022— $— 
Granted1.7 6.72 
Outstanding at December 31, 20231.7 $6.72 
v3.24.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2023
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,
202320222021
(In millions)
Current:
Federal$6.8 $20.9 $14.7 
State1.5 6.2 1.5 
Foreign— 0.7 0.6 
Total current income tax expense8.3 27.8 16.8 
Deferred:
Federal0.9 (17.6)(2.2)
State0.7 (3.2)(1.5)
Total deferred income tax (benefit) expense1.6 (20.8)(3.7)
Total$9.9 $7.0 $13.1 
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,
20232022
(In millions)
Deferred tax assets:
Accrued intellectual property$8.0 $5.4 
Stock compensation5.5 3.1 
Accrued rebates5.5 8.6 
Accrued legal fees0.4 1.6 
Accrued recycling fees3.1 2.9 
Accrued other1.2 1.7 
Leases2.7 2.5 
NOL carryforwards5.2 2.2 
Section 174 R&D capitalization29.6 24.9 
Other0.7 3.0 
61.9 55.9 
Less valuation allowance(5.5)(1.1)
Deferred tax assets$56.4 $54.8 
Deferred tax liabilities:
Federal impact of state taxes$(3.0)$(1.4)
Depreciation and amortization(3.8)(2.2)
Deferred tax liabilities(6.8)(3.6)
Net deferred tax assets$49.6 $51.2 
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,
202320222021
(In millions)
Income tax provision at statutory rate$8.0 $1.4 $(5.5)
State income taxes (net of federal benefit)2.6 2.2 2.5 
Permanent tax differences5.9 3.6 17.8 
Tax differential on foreign earnings— 0.1 0.1 
Change in valuation allowance5.6 — — 
Tax credits(9.3)(1.2)(6.9)
Tax contingencies2.2 0.3 4.6 
Prior year adjustments(5.1)0.6 0.3 
Other— — 0.2 
Total provision for income taxes$9.9 $7.0 $13.1 
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,
20232022
(In millions)
Unrecognized tax benefit at January 1$6.7 $7.0 
Gross increases/(decreases) – tax position in prior period(0.2)— 
Gross increases/(decreases) – tax position in current period3.2 0.4 
Settlement(1.2)(0.7)
Lapse of statute of limitations(0.7)— 
Unrecognized tax benefit at December 31$7.8 $6.7 
Schedule of Open Tax Years The following tax years remain subject to examinations:
Major jurisdictionOpen years
China2020-2022
Mexico2018-2022
v3.24.0.1
Net Income (Loss) Per Share (Tables)
 12 Months Ended
Dec. 31, 2023
Earnings Per Share [Abstract]  
Schedule of Basic and Diluted Earnings (Loss) Per Share
Basic and diluted earnings (loss) per share and the weighted-average shares outstanding have been computed for all periods as shown below:
Year Ended
December 31,
202320222021
Class AClass BClass AClass BClass AClass B
Numerator(In millions, except per share amounts)
Net income (loss) attributable to common shareholders$17.2 $11.0 $(0.2)$(0.2)$(24.3)$(15.1)
Denominator
Weighted-average common shares119.8 76.5 116.3 76.8 108.1 67.4 
Weighted-average effect of dilutive securities:
Employee stock options and RSUs4.1 — — — — — 
Weighted average common shares outstanding-diluted123.9 76.5 116.3 76.8 108.1 67.4 
Basic net income (loss) per share attributable to common stockholders$0.14 $0.14 $(0.00)$(0.00)$(0.22)$(0.22)
Diluted net income (loss) per share attributable to common stockholders$0.14 $0.14 $(0.00)$(0.00)$(0.22)$(0.22)
Anti-dilutive equity awards under stock-based award plans excluded from the determination of diluted EPS13.6 — 20.8 — 17.1 — 
v3.24.0.1
Organization and Nature of Business (Details)
$ / shares in Units, $ in Millions
 12 Months Ended
Jul. 01, 2023
shares
Mar. 31, 2021
$ / shares
shares
Mar. 29, 2021
USD ($)
$ / shares
shares
Mar. 28, 2021
shares
Mar. 15, 2021
shares
Mar. 12, 2021
Dec. 31, 2023
USD ($)
manufacturer
shares
Dec. 31, 2022
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     100,000,000.0 100,000,000.0
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            
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) 634,185   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)     134,736 134,736        
Shares issued upon conversion (in shares)       30,315,600        
Preferred stock, authorized (in shares)     0          
Class B                
Class of Stock [Line Items]                
Conversion of stock, shares converted (in shares) 634,185              
Common stock, authorized (in shares)       200,000,000        
Class B | William Wang and affiliated trusts                
Class of Stock [Line Items]                
Conversion of stock, shares converted (in shares)       98,633,025        
Class C common stock                
Class of Stock [Line Items]                
Common stock, authorized (in shares)       150,000,000        
Purchase of televisions since 2012 | Investor                
Class of Stock [Line Items]                
Number of manufacturers purchased from | manufacturer             3  
VIZIO, Inc. | Vizio Holding Corp                
Class of Stock [Line Items]                
Percentage of outstanding shares acquired           100.00%    
v3.24.0.1
Summary of Significant Accounting Policies - Property and Equipment (Details)
Dec. 31, 2023
Buildings  
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
v3.24.0.1
Summary of Significant Accounting Policies - Narrative (Details) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Accounting Policies [Abstract]      
Capitalized software development costs $ 21,800,000 $ 0  
Amortization expense 0 0 $ 0
Goodwill impairment 0 0 0
Recycling costs 5,300,000 5,200,000 7,900,000
Cooperated advertising arrangements and marketing development funds recorded as a reduction of net revenue $ 9,200,000 $ 7,200,000 $ 3,100,000
Product warranty, term, one year 1 year    
Product warranty, term, two years 2 years    
Product warranty, term, three years 3 years    
v3.24.0.1
Net Revenue - Narrative (Details) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Concentration Risk [Line Items]      
Contract asset $ 24,200,000 $ 22,000,000  
Contract liability 2,100,000 0  
Capitalized contract costs $ 0 $ 0  
Affiliates under common control | Net Revenue | Customer Concentration Risk      
Concentration Risk [Line Items]      
Concentration risk, percentage 45.00% 51.00% 52.00%
Other Current Assets      
Concentration Risk [Line Items]      
Contract asset $ 20,300,000    
Other Noncurrent Assets      
Concentration Risk [Line Items]      
Contract asset $ 3,900,000    
v3.24.0.1
Net Revenue - Customers (Details) - Net Revenue - Customer Concentration Risk
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Customer A      
Concentration Risk [Line Items]      
Concentration risk, percentage 35.00% 38.00% 40.00%
Customer B      
Concentration Risk [Line Items]      
Concentration risk, percentage 10.00% 13.00% 12.00%
Customer C      
Concentration Risk [Line Items]      
Concentration risk, percentage 8.00% 10.00% 10.00%
v3.24.0.1
Investments - Narrative (Details) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Schedule of Held-to-Maturity Securities [Line Items]    
Debt securities, held-to-maturity, impairment loss $ 0 $ 0
Equity securities, noncurrent 6,200,000 4,600,000
Equity securities, cost 6,000,000 4,400,000
Level 1    
Schedule of Held-to-Maturity Securities [Line Items]    
Equity securities, noncurrent $ 200,000 $ 200,000
v3.24.0.1
Investments - Debt Securities, Held-to-Maturity (Details) - US Treasury Bills - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Schedule of Held-to-Maturity Securities [Line Items]    
Maturity 1 year 1 year
Amortized cost $ 129.9 $ 58.9
Gross unrealized gains 0.2 0.0
Gross unrealized losses 0.0 (0.2)
Estimated fair value $ 130.1 $ 58.7
v3.24.0.1
Accounts Receivable - Balances (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Receivables [Abstract]    
Accounts receivable $ 383.4 $ 358.1
Allowance for doubtful accounts (2.2) (0.2)
Total accounts receivable, net of allowances $ 381.2 $ 357.9
v3.24.0.1
Accounts Receivable - Narrative (Details) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Concentration Risk [Line Items]      
Allowance for doubtful accounts recorded $ 2,000,000.0 $ 100,000 $ 0
Accounts receivable, allowance for credit loss, writeoff $ 0 $ 0  
Customer A And Customer B | Net Receivables | Credit Concentration Risk      
Concentration Risk [Line Items]      
Concentration risk, percentage 39.00% 50.00%  
v3.24.0.1
Accounts Receivable - Customers (Details) - Net Receivables - Credit Concentration Risk
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Customer A    
Concentration Risk [Line Items]    
Concentration risk, percentage 30.00% 38.00%
Customer B    
Concentration Risk [Line Items]    
Concentration risk, percentage 9.00% 12.00%
v3.24.0.1
Inventories - Balances (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Inventory [Line Items]    
Total inventory $ 6.8 $ 15.5
Inventory on hand    
Inventory [Line Items]    
Total inventory 3.0 12.6
Inventory in transit - outbound    
Inventory [Line Items]    
Total inventory 3.3 2.9
Inventory in transit - inbound    
Inventory [Line Items]    
Total inventory $ 0.5 $ 0.0
v3.24.0.1
Inventories - Inventory Purchases (Details) - Inventory purchases - Supplier Concentration Risk
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Supplier A - related party    
Inventory [Line Items]    
Concentration risk, percentage 36.00% 45.00%
Supplier B    
Inventory [Line Items]    
Concentration risk, percentage 19.00% 22.00%
Supplier C    
Inventory [Line Items]    
Concentration risk, percentage 31.00% 15.00%
v3.24.0.1
Inventories - Narrative (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Other Receivables, Manufacturers    
Inventory [Line Items]    
Receivables due from manufacturers $ 0.8 $ 3.0
v3.24.0.1
Property, Equipment and Software - Components of Property and Equipment (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Line Items]    
Total property, equipment and software $ 43.0 $ 43.5
Less accumulated depreciation and amortization (23.3) (23.6)
Total property, equipment and software, net 19.7 19.9
Land    
Property, Plant and Equipment [Line Items]    
Total property, equipment and software 2.6 0.0
Building    
Property, Plant and Equipment [Line Items]    
Total property, equipment and software 7.6 10.1
Machinery and equipment    
Property, Plant and Equipment [Line Items]    
Total property, equipment and software 1.1 2.0
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Total property, equipment and software 9.3 4.2
Furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Total property, equipment and software 5.1 4.7
Computer and software    
Property, Plant and Equipment [Line Items]    
Total property, equipment and software 16.9 17.7
Construction in progress    
Property, Plant and Equipment [Line Items]    
Total property, equipment and software $ 0.4 $ 4.8
v3.24.0.1
Property, Equipment and Software - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Property, Plant and Equipment [Line Items]      
Depreciation expense $ 7.4 $ 3.6 $ 2.8
Total property, equipment and software 43.0 43.5  
Disposal of property, plant and equipment 7.7 0.0  
Land      
Property, Plant and Equipment [Line Items]      
Total property, equipment and software $ 2.6 $ 0.0  
v3.24.0.1
Segment Information (Details)
 12 Months Ended
Dec. 31, 2023
segment
Segment Reporting [Abstract]  
Number of operating segments 2
Number of reportable segments 2
v3.24.0.1
Goodwill (Details) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]      
Goodwill $ 44,800,000 $ 44,800,000  
Goodwill impairment $ 0 $ 0 $ 0
v3.24.0.1
Accrued Expenses (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Payables and Accruals [Abstract]    
Accrued price protection $ 33.4 $ 57.6
Accrued other customer related expenses 55.8 49.5
Accrued supplier/partner related expenses 46.1 54.0
Accrued payroll expenses 40.8 36.1
Accrued other expenses 2.5 7.7
Total accrued expenses $ 178.6 $ 204.9
v3.24.0.1
Accrued Royalties - Future Commitments on Royalty Obligations (Details) - Royalty obligations
$ in Millions
Dec. 31, 2023
USD ($)
Other Commitments [Line Items]  
2024 $ 21.6
2025 12.7
2026 6.5
2027 6.0
2028 1.5
2029 & thereafter 0.0
Total $ 48.3
v3.24.0.1
Leases - Supplemental Balance Sheet Information (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Assets:    
Right of use assets, balance sheet [Extensible Enumeration] Other assets Other assets
Right of use assets $ 13.8 $ 14.0
Liabilities:    
Lease liabilities-current, balance sheet [Extensible Enumeration] Other current liabilities Other current liabilities
Lease liabilities-current $ 3.5 $ 3.5
Lease liabilities-noncurrent, balance sheet [Extensible Enumeration] Other long-term liabilities Other long-term liabilities
Lease liabilities-noncurrent $ 11.0 $ 11.5
Weighted average remaining lease term 3 years 9 months 18 days 4 years 1 month 6 days
Weighted average discount rate 6.30% 4.90%
v3.24.0.1
Leases - Operating Lease Costs (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Leases [Abstract]      
Operating lease costs $ 5.9 $ 5.4 $ 4.1
v3.24.0.1
Leases - Reconciliation of Undiscounted Cash Flows of Operating Leases (Details)
$ in Millions
Dec. 31, 2023
USD ($)
Leases [Abstract]  
2024 $ 4.8
2025 4.3
2026 4.3
2027 2.5
2028 0.7
2029 and thereafter 0.2
Total minimum lease payments 16.8
Less imputed interest (2.3)
Total lease liabilities $ 14.5
v3.24.0.1
Leases - Narrative (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2023
USD ($)
related_party
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Lessee, Lease, Description [Line Items]      
Rental income $ 0.4 $ 0.4 $ 0.4
VIZIO      
Lessee, Lease, Description [Line Items]      
Ownership interest 13.00%    
Number of related parties in ownership | related_party 2    
Investment $ 0.5 0.5  
VIZIO | Affiliated entity | VIZIO      
Lessee, Lease, Description [Line Items]      
Net rent expense $ 1.1 $ 1.0 $ 0.7
v3.24.0.1
Commitments and Contingencies - Narrative (Details)
 1 Months Ended 3 Months Ended
Aug. 30, 2018
USD ($)
Nov. 30, 2020
USD ($)
Jun. 30, 2021
USD ($)
Dec. 31, 2023
USD ($)
wk
Apr. 13, 2021
USD ($)
Commitments and Contingencies [Line Items]          
Number of weeks of inventory | wk       13  
Liability for supply commitment       $ 0  
VIZIO | AmTRAN          
Commitments and Contingencies [Line Items]          
Beneficial holder, percentage of common stock, more than   5.00%      
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      
Revolving credit facility | Line of credit          
Commitments and Contingencies [Line Items]          
Maximum borrowing capacity         $ 50,000,000
Debt fee     $ 75,000    
v3.24.0.1
Commitments and Contingencies -Schedule of Commitment Future Spend Per this Addendum (Details) - Data Support Spend Commitments
$ in Millions
Dec. 31, 2023
USD ($)
Other Commitments [Line Items]  
2024 $ 31.2
2025 34.1
2026 29.8
Total $ 95.1
v3.24.0.1
Stockholders' Equity (Details)
$ / shares in Units, $ in Thousands
 12 Months Ended
Jul. 01, 2023
shares
Mar. 29, 2021
USD ($)
$ / shares
shares
Mar. 28, 2021
shares
Dec. 31, 2023
USD ($)
vote
director
$ / shares
shares
Dec. 31, 2022
USD ($)
$ / shares
shares
Dec. 31, 2021
USD ($)
Class of Stock [Line Items]            
Preferred stock, authorized (in shares)   100,000,000 100,000,000 100,000,000.0 100,000,000.0  
Preferred stock, par value (in dollars per share) | $ / shares   $ 0.0001   $ 0.0001 $ 0.0001  
Dividends paid | $   $ 600   $ 0 $ 0 $ 600
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)       201,477,931    
Common stock, outstanding (in shares)       197,648,110    
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)   134,736 134,736      
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 | $        
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) 634,185 30,315,600        
Common stock, authorized (in shares)     1,000,000,000      
Common stock, issued (in shares)       125,300,000 121,900,000  
Common stock, outstanding (in shares)       121,500,000 118,100,000  
Voting rights per share | vote       1    
Common stock issued for each share upon conversion (in shares)       1    
Class B            
Class of Stock [Line Items]            
Conversion of stock, shares converted (in shares) 634,185          
Common stock, authorized (in shares)     200,000,000      
Common stock, issued (in shares)       76,200,000 76,800,000  
Common stock, outstanding (in shares)       76,200,000 76,800,000  
Voting rights per share | vote       10    
v3.24.0.1
Share-Based Compensation - Narrative (Details) - USD ($)
$ in Millions
 1 Months Ended 12 Months Ended
Aug. 31, 2017
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Options outstanding (in shares)   14,200,000 14,400,000 14,400,000
Service period (in years)   1 year    
Stock options        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Service period (in years)   4 years    
Unrecognized compensation costs   $ 17.6    
Unrecognized compensation costs recognition period   2 years    
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 | 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      
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 | Maximum        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Number of additional shares reserved for issuance (in shares) 40,520,655      
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)   691,757    
Forfeiture term if employment or other services terminate prior to vesting   90 days    
v3.24.0.1
Share-Based Compensation - Stock Option Awards Activity (Details)
$ / shares in Units, shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2023
USD ($)
plan
$ / shares
shares
Dec. 31, 2022
USD ($)
$ / shares
shares
Dec. 31, 2021
USD ($)
$ / shares
shares
Share-Based Payment Arrangement [Abstract]      
Number of plans | plan 2    
Number of Shares      
Beginning balance (in shares) | shares 14.4 14.4  
Number of options granted (in shares) | shares 1.3 5.0 2.9
Exercised (in shares) | shares (0.6) (3.2)  
Forfeited (in shares) | shares (0.7) (1.3)  
Cancelled (in shares) | shares (0.2) (0.5)  
Ending balance (in shares) | shares 14.2 14.4 14.4
Stock options vested and exercisable (in shares) | shares 8.8    
Weighted Average Exercise Price      
Beginning balance (in dollars per share) | $ / shares $ 3.88 $ 6.80  
Granted (in dollars per share) | $ / shares 6.73 8.99  
Exercised (in dollars per share) | $ / shares 3.89 3.39  
Forfeited (in dollars per share) | $ / shares 10.34 10.99  
Cancelled (in dollars per share) | $ / shares 15.18 8.60  
Ending balance (in dollars per share) | $ / shares 7.72 $ 3.88 $ 6.80
Stock options vested and exercisable (in dollars per share) | $ / shares $ 6.36    
Weighted Average Remaining Contractual Life (years)      
Options outstanding (in years) 6 years 6 months 7 years 6 years 9 months 18 days
Stock options vested and exercisable (in years) 5 years 3 months 18 days    
Aggregate Intrinsic Value      
Options outstanding, aggregate intrinsic value | $ $ 25.2 $ 54.1 $ 181.4
Options exercised, aggregate intrinsic value | $ 2.5 $ 26.7  
Stock options vested, aggregate intrinsic value | $ $ 23.5    
v3.24.0.1
Share-Based Compensation - Fair Value Assumptions of Options (Details) - $ / shares
shares in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of options granted (in shares) 1.3 5.0 2.9
Fair market value per share of common stock at the time of grant (in dollars per share) $ 6.73 $ 8.99 $ 21.19
Fair market value per option determined using a Black-Scholes-Merton Option pricing model for purposes of determining compensation expense (in dollars per share) $ 3.37 $ 4.00 $ 9.22
Stock options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Volatility factor 45.90% 45.80% 43.00%
Expected term 6 years 3 months 6 years 3 months 6 years 3 months
Dividend yield 0.00% 0.80% 1.10%
Risk-free interest rate 3.80% 2.80% 1.10%
v3.24.0.1
Share-Based Compensation - Restricted Stock Awards and RSU (Narrative) (Details)
$ / shares in Units, $ in Millions
 1 Months Ended 12 Months Ended
Oct. 08, 2019
$ / shares
shares
Aug. 31, 2022
USD ($)
Dec. 31, 2023
USD ($)
installment
$ / shares
shares
Dec. 31, 2022
USD ($)
$ / shares
shares
Dec. 31, 2021
USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share-based compensation expense   $ 3.2 $ 43.5 $ 42.5 $ 134.4
Service period (in years)     1 year    
Restricted stock awards          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Awards granted (in shares) | shares 234,000        
Fair value stock price at time of grant (in dollars per share) | $ / shares $ 5.39        
Number of installments | installment     4    
Share-based compensation expense     $ 0.2 $ 0.3 $ 0.7
Service period (in years)     4 years    
Intrinsic value of restricted stock units vested     $ 12.9    
Intrinsic value of unvested restricted stock units     $ 93.8    
RSUs          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Awards granted (in shares) | shares     9,100,000 5,700,000  
Service period (in years)     4 years    
Granted (in dollars per share) | $ / shares     $ 6.96 $ 9.56  
Unrecognized compensation costs     $ 91.3    
Unrecognized compensation costs recognition period     2 years 10 months 24 days    
v3.24.0.1
Share-Based Compensation - Restricted Stock Awards (Details) - RSUs - $ / shares
shares in Millions
 1 Months Ended 12 Months Ended
Aug. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Number of Shares      
Outstanding, beginning (in shares)   6.3 4.1
Awards granted (in shares)   9.1 5.7
Released (in shares)   (1.9) (2.0)
Forfeited (in shares)   (1.3) (1.3)
Cancelled (in shares) (0.2)   (0.2)
Outstanding, ending (in shares)   12.2 6.3
Weighted Average Exercise Price      
Outstanding, beginning (in dollars per share)   $ 12.16 $ 20.45
Granted (in dollars per share)   6.96 9.56
Released (in dollars per share)   13.10 19.41
Forfeited (in dollars per share)   11.33 15.55
Cancelled (in dollars per share)     8.60
Outstanding, ending (in dollars per share)   $ 8.89 $ 12.16
v3.24.0.1
Share-Based Compensation - Performance Stock Units (Narrative) (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2023
USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Service period (in years) 1 year
Performance Shares  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Vesting term (in years) 4 years
Service period (in years) 1 year
Unrecognized compensation costs $ 7.9
Unrecognized compensation costs recognition period 3 years 6 months
Performance Shares | Minimum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Eligible award vesting rights, percentage 0
Performance Shares | Maximum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Eligible award vesting rights, percentage 2
v3.24.0.1
Share-Based Compensation - Performance Stock Units (Details) - Performance Shares
shares in Millions
 12 Months Ended
Dec. 31, 2023
$ / shares
shares
Number of Shares  
Outstanding, beginning (in shares) | shares 0.0
Granted (in shares) | shares 1.7
Outstanding, ending (in shares) | shares 1.7
Weighted Average Exercise Price  
Outstanding, beginning (in dollars per share) | $ / shares $ 0
Granted (in dollars per share) | $ / shares 6.72
Outstanding, ending (in dollars per share) | $ / shares $ 6.72
v3.24.0.1
Share-Based Compensation - Weighted-Average Input Assumptions PSU (Details) - Performance Shares
shares in Millions
 12 Months Ended
Dec. 31, 2023
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Awards granted (in shares) | shares 1.7
Volatility 61.30%
Expected term (years) 4 years
Dividend yield 0.00%
Risk-free interest rate 5.00%
Fair value of common stock (in dollars per share) $ 6.49
Granted (in dollars per share) $ 6.72
v3.24.0.1
Share-Based Compensation - ESPP (Details) - USD ($)
 1 Months Ended 12 Months Ended
Mar. 25, 2021
Aug. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Share-based compensation expense   $ 3,200,000 $ 43,500,000 $ 42,500,000 $ 134,400,000
2021 ESPP          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Shares reserved for issuance (in shares) 1,800,000        
Number of additional shares reserved for issuance (in shares) 5,400,000        
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
Share-based compensation expense     $ 800,000 $ 900,000 $ 600,000
Shares issued under plan (in shares)     369,017 305,190  
v3.24.0.1
Share-Based Compensation - Share-Based Compensation Expense (Details)
$ / shares in Units, shares in Millions, $ in Millions
 1 Months Ended 12 Months Ended
Aug. 31, 2022
USD ($)
employee
shares
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
shares
Dec. 31, 2021
USD ($)
Mar. 31, 2021
$ / shares
Feb. 28, 2021
$ / shares
Dec. 31, 2020
$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Midpoint price range of shares (in dollars per share) | $ / shares           $ 22.00  
Share-based compensation expense | $ $ 3.2 $ 43.5 $ 42.5 $ 134.4      
Defined contribution plan, number of employees | employee 3            
Options cancelled (in shares) | shares 0.5            
Cost of Goods Sold              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Share-based compensation expense | $   3.1 1.3 1.1      
Research and Development Expense              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Share-based compensation expense | $   $ 6.0 $ 2.3 1.8      
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 | $       $ 58.2      
Stock options and RSUs | Minimum | December 2020 and February 2021              
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 | Maximum | December 2020 and February 2021              
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    
RSUs              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
RSUs cancelled (in shares) | shares 0.2   0.2        
v3.24.0.1
Income Taxes - Components of Provision for Income Taxes (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Current:      
Federal $ 6.8 $ 20.9 $ 14.7
State 1.5 6.2 1.5
Foreign 0.0 0.7 0.6
Total current income tax expense 8.3 27.8 16.8
Deferred:      
Federal 0.9 (17.6) (2.2)
State 0.7 (3.2) (1.5)
Total deferred income tax (benefit) expense 1.6 (20.8) (3.7)
Total provision for income taxes $ 9.9 $ 7.0 $ 13.1
v3.24.0.1
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Deferred tax assets:    
Accrued intellectual property $ 8.0 $ 5.4
Stock compensation 5.5 3.1
Accrued rebates 5.5 8.6
Accrued legal fees 0.4 1.6
Accrued recycling fees 3.1 2.9
Accrued other 1.2 1.7
Leases 2.7 2.5
NOL carryforwards 5.2 2.2
Section 174 R&D capitalization 29.6 24.9
Other 0.7 3.0
Deferred tax assets, gross 61.9 55.9
Less valuation allowance (5.5) (1.1)
Deferred tax assets 56.4 54.8
Deferred tax liabilities:    
Federal impact of state taxes (3.0) (1.4)
Depreciation and amortization (3.8) (2.2)
Deferred tax liabilities (6.8) (3.6)
Net deferred tax assets $ 49.6 $ 51.2
v3.24.0.1
Income Taxes - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
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 5.5 $ 1.1  
Liabilities for unrecognized tax benefits inclusive of penalties 8.4    
Unrecognized tax benefits that would affect the effective tax rate if recognized 7.6 6.3  
Interest and penalties expense related to unrecognized tax benefits (0.1) (0.2) $ 0.1
Accrued interest and penalties related to unrecognized tax benefits 0.2 1.1  
Provision for income taxes $ 9.9 $ 7.0 $ 13.1
Effective tax rate (percent) 26.00%    
State and foreign net operating losses and research and development credit carryforwards      
Operating Loss Carryforwards [Line Items]      
Deferred tax assets, valuation allowance $ 5.2    
Federal      
Operating Loss Carryforwards [Line Items]      
Net operating loss carryforwards 2.6    
State      
Operating Loss Carryforwards [Line Items]      
Net operating loss carryforwards 90.8    
California      
Operating Loss Carryforwards [Line Items]      
Net operating loss carryforwards $ 0.9    
v3.24.0.1
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Tax Disclosure [Abstract]      
Income tax provision at statutory rate $ 8.0 $ 1.4 $ (5.5)
State income taxes (net of federal benefit) 2.6 2.2 2.5
Permanent tax differences 5.9 3.6 17.8
Tax differential on foreign earnings 0.0 0.1 0.1
Change in valuation allowance 5.6 0.0 0.0
Tax credits (9.3) (1.2) (6.9)
Tax contingencies 2.2 0.3 4.6
Prior year adjustments (5.1) 0.6 0.3
Other 0.0 0.0 0.2
Total provision for income taxes $ 9.9 $ 7.0 $ 13.1
v3.24.0.1
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Unrecognized Tax Benefits    
Unrecognized tax benefit at January 1 $ 6.7 $ 7.0
Gross increases/(decreases) – tax position in prior period (0.2)  
Gross increases/(decreases) – tax position in prior period   0.0
Gross increases/(decreases) – tax position in current period 3.2 0.4
Settlement (1.2) (0.7)
Lapse of statute of limitations (0.7) 0.0
Unrecognized tax benefit at December 31 $ 7.8 $ 6.7
v3.24.0.1
Net Income (Loss) Per Share (Details)
$ / shares in Units, shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2023
USD ($)
$ / shares
shares
Dec. 31, 2022
USD ($)
$ / shares
shares
Dec. 31, 2021
USD ($)
$ / shares
shares
Denominator      
Weighted-average common shares outstanding (in shares) 196.3 193.1 175.5
Weighted-average effect of dilutive securities:      
Weighted average common shares outstanding - diluted (in shares) 200.4 193.1 175.5
Net income (loss) per share attributable to common stockholders      
Basic net income (loss) per share attributable to common stockholders (in dollars per share) | $ / shares $ 0.14 $ (0.00) $ (0.22)
Diluted net income (loss) per share attributable to common stockholders (in dollars per share) | $ / shares $ 0.14 $ (0.00) $ (0.22)
Share-based payment arrangement by share-based payment award, expected achievement, percentage 0.37    
Class A      
Numerator      
Net income (loss) attributable to common stockholders - basic | $ $ 17.2 $ (0.2) $ (24.3)
Net income (loss) attributable to common stockholders - diluted | $ $ 17.2 $ (0.2) $ (24.3)
Denominator      
Weighted-average common shares outstanding (in shares) 119.8 116.3 108.1
Weighted-average effect of dilutive securities:      
Employee stock options and RSUs (in shares) 4.1 0.0 0.0
Weighted average common shares outstanding - diluted (in shares) 123.9 116.3 108.1
Net income (loss) per share attributable to common stockholders      
Basic net income (loss) per share attributable to common stockholders (in dollars per share) | $ / shares $ 0.14 $ (0.00) $ (0.22)
Diluted net income (loss) per share attributable to common stockholders (in dollars per share) | $ / shares $ 0.14 $ (0.00) $ (0.22)
Anti-dilutive equity awards under share-based award plans excluded from the determination of diluted EPS (in shares) 13.6 20.8 17.1
Class B      
Numerator      
Net income (loss) attributable to common stockholders - basic | $ $ 11.0 $ (0.2) $ (15.1)
Net income (loss) attributable to common stockholders - diluted | $ $ 11.0 $ (0.2) $ (15.1)
Denominator      
Weighted-average common shares outstanding (in shares) 76.5 76.8 67.4
Weighted-average effect of dilutive securities:      
Employee stock options and RSUs (in shares) 0.0 0.0 0.0
Weighted average common shares outstanding - diluted (in shares) 76.5 76.8 67.4
Net income (loss) per share attributable to common stockholders      
Basic net income (loss) per share attributable to common stockholders (in dollars per share) | $ / shares $ 0.14 $ (0.00) $ (0.22)
Diluted net income (loss) per share attributable to common stockholders (in dollars per share) | $ / shares $ 0.14 $ (0.00) $ (0.22)
Anti-dilutive equity awards under share-based award plans excluded from the determination of diluted EPS (in shares) 0.0 0.0 0.0
v3.24.0.1
Defined Contribution Retirement Plan (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Retirement Benefits [Abstract]      
Discretionary matching contributions $ 4.5 $ 2.6 $ 1.8
v3.24.0.1
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  
v3.24.0.1
Subsequent Events (Details) - Walmart Inc., Delaware Corporation - Subsequent Event
$ / shares in Units, $ in Millions
Feb. 19, 2024
USD ($)
$ / shares
Agreement Plan Of Merger (Merger Agreement)  
Subsequent Event [Line Items]  
Debt instrument, converted into the right to receive cash | $ / shares $ 11.50
Debt instrument, percentage of voting power percentage 0.89
Walmart Merger Agreement  
Subsequent Event [Line Items]  
Debt instrument, termination fee payable | $ $ 78.0