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Segment and Geographic Information | 12 Months Ended
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Dec. 31, 2020
Segment Reporting [Abstract] |
Segment and Geographic Information | NOTE 17 – SEGMENT AND GEOGRAPHIC INFORMATION In connection with the Mergers, the Company re-evaluated its reportable segments. The Company concluded that it has two reportable segments for financial reporting purposes: (1) Product and (2) Intellectual Property (“IP”) Licensing. There are certain corporate overhead costs that are not allocated to these reportable segments because these operating amounts are not considered in evaluating the operating performance of the Company’s business segments. Reportable segments are identified based on the Company's organizational structure and information reviewed by the Company’s chief operating decision maker ("CODM") to evaluate performance and allocate resources. The Company’s Chief Executive Officer is also the CODM as defined by the authoritative guidance on segment reporting. The Product segment consists primarily of licensing Company-developed audio, digital radio, imaging, edge-based machine learning and multi-channel video user experience (“UX”) solutions. Audio, digital radio, imaging solutions and edge-based machine learning include the delivery of software and/or hardware-based solutions to the Company’s consumer electronics (“CE”) customers, automotive manufacturers or their supply chain partners. UX products and services revenue is primarily derived from multi-channel video service providers and CE manufacturers, licensing the TiVo service and selling TiVo-enabled devices like the Stream 4K, Personalized Content Discovery, enriched Metadata, viewership data and advertising. The IP Licensing segment consists primarily of licensing the Company’s innovations to leading companies in the media and semiconductor industries. Licensing arrangements include access to one or more of the Company’s foundational patent portfolios and may also include access to some of its industry-leading technologies and proven know-how. In media, the Company’s licensees include multichannel video programming distributors, OTT video service providers, consumer electronics manufacturers, social media, and other new media companies. In semiconductor, the Company’s licensees include memory, sensors, RF component, and foundry companies. The Company does not identify or allocate assets by reportable segment, nor does the CODM evaluate reportable segments using discrete asset information. Reportable segments do not record inter-segment revenue and accordingly there are none to report. The Company does not allocate other income and expense to reportable segments. Although the CODM uses operating income to evaluate reportable segments, operating costs included in one segment may benefit other segments. The following table sets forth the Company’s segment revenue, operating expenses and operating income (loss) for the years ended December 31, 2020, 2019 and 2018 (in thousands):
|  | Years Ended December 31, |
|  | 2020 |  |  | 2019 |  |  | 2018 |
Revenue: |  |  |  |  |  |  |  |  |  |  |  |
Product segment |  | $ | 376,101 |  |  | $ | 198,124 |  |  | $ | 218,349 |
IP Licensing segment |  |  | 515,919 |  |  |  | 81,943 |  |  |  | 187,784 |
Total revenue |  |  | 892,020 |  |  |  | 280,067 |  |  |  | 406,133 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |
Product segment |  |  | 351,913 |  |  |  | 186,562 |  |  |  | 185,370 |
IP Licensing segment |  |  | 113,363 |  |  |  | 44,542 |  |  |  | 74,002 |
Unallocated operating expenses (1) |  |  | 249,117 |  | (2) |  | 117,671 |  |  |  | 122,781 |
Total operating expenses |  |  | 714,393 |  |  |  | 348,775 |  |  |  | 382,153 |
Operating income (loss): |  |  |  |  |  |  |  |  |  |  |  |
Product segment |  |  | 24,188 |  |  |  | 11,562 |  |  |  | 32,979 |
IP Licensing segment |  |  | 402,556 |  |  |  | 37,401 |  |  |  | 113,782 |
Unallocated operating expenses (1) |  |  | (249,117 | ) |  |  | (117,671 | ) |  |  | (122,781 | )
Total operating income (loss) |  | $ | 177,627 |  |  | $ | (68,708 | ) |  | $ | 23,980 |
| (1) | Unallocated operating expenses consist primarily of selling, marketing, general and administrative expenses, such as administration, human resources, finance, information technology, corporate development and procurement. These expenses are not allocated because these amounts are not considered in evaluating the operating performance of the Company’s business segments.
| (2) | Includes approximately $29.4 million in one-time transaction costs related to the Mergers and $14.3 million in post-merger severance and retention costs.
Amortization and depreciation are included in segment operating income as shown below (in thousands):
|  | Years Ended December 31, |
|  | 2020 |  |  | 2019 |  |  | 2018 |
Amortization and depreciation: |  |  |  |  |  |  |  |  |  |  |  |
Product segment |  | $ | 111,129 |  |  | $ | 93,402 |  |  | $ | 93,582 |
IP Licensing segment |  |  | 59,881 |  |  |  | 13,264 |  |  |  | 21,544 |
Unallocated |  |  | 3,734 |  |  |  | — |  |  |  | — |
Total amortization and depreciation |  | $ | 174,744 |  |  | $ | 106,666 |  |  | $ | 115,126 |
A significant portion of the Company’s revenue is derived from licensees headquartered outside of the U.S., principally in Asia, and it is expected that this revenue will continue to account for a significant portion of total revenues in future periods. The table below lists the geographic revenue for the periods indicated (in thousands):
|  | Years Ended December 31, |
|  | 2020 |  |  | 2019 |  |  | 2018 |
U.S. |  | $ | 548,857 |  |  |  | 62 | % |  | $ | 74,469 |  |  |  | 26 | % |  | $ | 53,245 |  |  |  | 13 | %
Japan |  |  | 114,195 |  |  |  | 13 |  |  |  | 85,833 |  |  |  | 31 |  |  |  | 88,513 |  |  |  | 22 |
Korea |  |  | 110,782 |  |  |  | 12 |  |  |  | 74,790 |  |  |  | 27 |  |  |  | 209,245 |  |  |  | 51 |
Europe and Middle East |  |  | 38,830 |  |  |  | 4 |  |  |  | 19,638 |  |  |  | 7 |  |  |  | 31,864 |  |  |  | 8 |
Other |  |  | 79,356 |  |  |  | 9 |  |  |  | 25,337 |  |  |  | 9 |  |  |  | 23,266 |  |  |  | 6 |
|  | $ | 892,020 |  |  | 100% |  |  | $ | 280,067 |  |  | 100% |  |  | $ | 406,133 |  |  | 100% |
For the years ended December 31, 2020, 2019 and 2018, one, two, and two customers, respectively, each accounted for 10% or more of total revenue. As of December 31, 2020, 2019 and 2018, property and equipment, net, by geographic area are presented below (in thousands):
|  | December 31, |
|  | 2020 |  |  | 2019 |  |  | 2018 |
U.S. |  | $ | 54,818 |  |  | $ | 28,273 |  |  | $ | 29,123 |
Europe |  |  | 4,842 |  |  |  | 4,391 |  |  |  | 1,533 |
Asia and other |  |  | 3,547 |  |  |  | 213 |  |  |  | 381 |
Total |  | $ | 63,207 |  |  | $ | 32,877 |  |  | $ | 31,037 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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