0001564590-20-052515 | 10-Q | XBRL Viewer

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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2020	Oct. 30, 2020
Cover [Abstract]
Entity Registrant Name	XPERI HOLDING CORPORATION
Trading Symbol	XPER
Entity Central Index Key	0001803696
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Document Type	10-Q
Document Period End Date	Sep. 30, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		105,707,630
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity File Number	001-39304
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	84-4734590
Entity Address, Address Line One	3025 Orchard Parkway
Entity Address, City or Town	San Jose
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95134
City Area Code	408
Local Phone Number	321-6000
Document Quarterly Report	true
Document Transition Report	false
Security12b Title	Common Stock (par value $0.001 per share)
Security Exchange Name	NASDAQ

Condensed Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenue:
Total revenue	$ 202,797	$ 57,867	$ 458,093	$ 189,549
Operating expenses:
Research, development and other related costs	57,731	25,998	124,565	78,004
Selling, general and administrative	63,785	27,588	168,586	84,120
Depreciation expense	6,753	1,629	11,815	5,056
Amortization expense	50,894	25,146	105,447	75,919
Litigation expense	8,527	1,527	14,501	4,049
Total operating expenses	221,760	83,394	470,248	253,389
Operating loss	(18,963)	(25,527)	(12,155)	(63,840)
Interest expense	(13,393)	(5,506)	(24,602)	(18,390)
Other income and expense, net	2,305	429	3,448	7,537
Loss on debt extinguishment			(8,300)	0
Loss before taxes	(30,051)	(30,604)	(41,609)	(74,693)
Provision for (benefit from) income taxes	482	(14,583)	(6,761)	(27,080)
Net loss	(30,533)	(16,021)	(34,848)	(47,613)
Less: net loss attributable to noncontrolling interest	(781)	(407)	(1,819)	(1,095)
Net loss attributable to the Company	$ (29,752)	$ (15,614)	$ (33,029)	$ (46,518)
Loss per share attributable to the Company:
Basic	$ (0.28)	$ (0.32)	$ (0.44)	$ (0.95)
Diluted	$ (0.28)	$ (0.32)	$ (0.44)	$ (0.95)
Weighted average number of shares used in per share calculations-basic	107,499	49,459	75,441	49,036
Weighted average number of shares used in per share calculations-diluted	107,499	49,459	75,441	49,036
Licensing, Services and Software
Revenue:
Total revenue	$ 195,319	$ 57,750	$ 448,802	$ 189,093
Operating expenses:
Cost of revenue, excluding depreciation and amortization of intangible assets	21,854	1,462	31,646	5,970
Hardware
Revenue:
Total revenue	7,478	117	9,291	456
Operating expenses:
Cost of revenue, excluding depreciation and amortization of intangible assets	$ 12,216	$ 44	$ 13,688	$ 271

Condensed Consolidated Statements Of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (30,533)	$ (16,021)	$ (34,848)	$ (47,613)
Other comprehensive income, net of tax:
Change in foreign currency translation adjustment	740		895
Net unrealized gain (loss) on available-for-sale debt securities	(91)	53	(23)	321
Other comprehensive income, net of tax	649	53	872	321
Comprehensive loss	(29,884)	(15,968)	(33,976)	(47,292)
Less: comprehensive loss attributable to noncontrolling interest	(781)	(407)	(1,819)	(1,095)
Comprehensive loss attributable to the Company	$ (29,103)	$ (15,561)	$ (32,157)	$ (46,197)

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income (loss) and other comprehensive income (loss), attributable to noncontrolling interests. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

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+ Details

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 115,725	$ 74,551
Available-for-sale debt securities, at fair value (amortized cost and allowance for credit losses of $87,262 and $0, respectively, at September 30, 2020)	87,258	45,802
Equity securities	4,771	3,725
Accounts receivable, net of allowance for credit losses of $3,624 and $566, respectively	111,915	24,177
Unbilled contracts receivable	164,138	121,826
Other current assets	36,084	13,735
Total current assets	515,120	281,215
Long-term unbilled contracts receivable	15,083	26,672
Property and equipment, net	65,432	32,877
Operating lease right-of-use assets	84,230	17,786
Intangible assets, net	1,005,522	232,275
Goodwill	846,913	385,784
Other long-term assets	136,395	71,336
Total assets	2,668,695	1,047,945
Current liabilities:
Accounts payable	18,829	4,650
Accrued legal fees	9,607	1,316
Accrued liabilities	98,762	41,433
Deferred revenue	37,045	720
Current portion of long-term debt, net	43,704	0
Total current liabilities	207,947	48,119
Deferred revenue, less current portion	23,400	0
Long-term deferred tax liabilities	29,751	29,735
Long-term debt, net	956,530	334,679
Noncurrent operating lease liabilities	69,463	13,414
Other long-term liabilities	95,637	76,898
Total liabilities	1,382,728	502,845
Commitments and contingencies (Note 15)
Company stockholders’ equity:
Preferred stock: $0.001 par value; authorized (2020: 15,000 shares; 2019: 10,000 shares) and no shares issued and outstanding
Common stock: $0.001 par value; (2020: authorized 350,000 shares, issued 110,020 shares, outstanding 105,692 shares; 2019: authorized 150,000 shares, issued 63,622, outstanding 49,620 shares)	110	64
Additional paid-in capital	1,255,856	768,284
Treasury stock at cost (2020: 4,328 shares; 2019: 14,002 shares)	(55,920)	(368,701)
Accumulated other comprehensive income (loss)	819	(53)
Retained earnings	89,709	148,317
Total Company stockholders’ equity	1,290,574	547,911
Noncontrolling interest	(4,607)	(2,811)
Total equity	1,285,967	545,100
Total liabilities and equity	$ 2,668,695	1,047,945
Equity securities
Current assets:
Equity securities		$ 1,124

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Statement Of Financial Position [Abstract]
Available-for-sale debt securities, amortized cost	$ 87,262,000
Available-for-sale debt securities, allowance for credit losses	0
Allowance for credit losses	$ 3,624,000	$ 566,000
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	15,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	350,000,000	150,000,000
Common stock, shares issued (in shares)	110,020,000	63,622,000
Common stock, shares outstanding (in shares)	105,692,000	49,620,000
Treasury stock, shares (in shares)	4,328,000	14,002,000

Condensed Consolidated Statements Of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Cash flows from operating activities:
Net loss	$ (30,533)	$ (16,021)	$ (34,848)	$ (47,613)
Adjustments to reconcile net loss to net cash from operating activities:
Depreciation of property and equipment	6,753	1,629	11,815	5,056
Amortization of intangible assets	50,894	25,146	105,447	75,919
Stock-based compensation expense			26,614	22,832
Deferred income taxes			(28,158)	(43,101)
Loss on debt extinguishment			8,300	0
Other			8,635	1,484
Changes in operating assets and liabilities:
Accounts receivable			14,982	9,202
Unbilled contracts receivable			37,874	96,905
Other assets			(21,793)	2,726
Accounts payable			921	626
Accrued and other liabilities			(6,471)	(17,402)
Deferred revenue			6,115	(2,420)
Net cash from operating activities			129,433	104,214
Cash flows from investing activities:
Purchases of property and equipment			(2,975)	(7,956)
Proceeds from sale of property and equipment				55
Cash acquired in merger transaction			117,424	0
Purchases of intangible assets			(692)	0
Purchases of short-term investments			(68,093)	(34,475)
Proceeds from sales of investments			7,189	6,833
Proceeds from maturities of investments			19,683	22,490
Net cash from investing activities			72,536	(13,053)
Cash flows from financing activities:
Dividend paid			(25,579)	(29,588)
Proceeds from debt, net			1,010,286
Repayment of debt			(357,125)	(100,000)
Repayment of assumed debt from merger transaction			(734,609)	0
Contingent consideration payments after acquisition			0	(1,200)
Proceeds from exercise of stock options			2	672
Proceeds from employee stock purchase program			4,763	5,329
Repurchase of common stock			(59,291)	(4,282)
Net cash from financing activities			(161,553)	(129,069)
Effect of exchange rate changes on cash and cash equivalents			758	0
Net increase (decrease) in cash and cash equivalents			41,174	(37,908)
Cash and cash equivalents at beginning of period			74,551	113,625	$ 113,625
Cash and cash equivalents at end of period	$ 115,725	$ 75,717	115,725	75,717	$ 74,551
Supplemental disclosure of cash flow information:
Interest paid			20,372	16,517
Income taxes paid, net of refunds			30,647	12,374
Stock issued in merger transaction			$ 828,334	$ 0

Condensed Consolidated Statements of Equity - USD ($)
shares in Thousands, $ in Thousands

Total

Cumulative Effect, Period of Adoption, Adjustment

Common Stock

Additional Paid-In Capital

Treasury Stock

Accumulated Other Comprehensive Income (Loss)

Retained Earnings

Cumulative Effect, Period of Adoption, Adjustment

Noncontrolling Interest

Beginning balance at Dec. 31, 2018

$ 618,147

$ 62

$ 730,695

$ (364,195)

$ (328)

$ 253,208

$ (1,295)

Beginning balance (in shares) at Dec. 31, 2018

48,408

13,804

Other at Dec. 31, 2018

^[1]

$ (2,859)

Accounting Standards Update [Extensible List]

us-gaap:AccountingStandardsUpdate201409Member

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Issuance of subsidiary shares to noncontrolling interest

(14)

Net loss

$ (47,613)

(46,518)

(1,095)

Other comprehensive income

321

Cash dividends paid on common stock

(29,588)

Issuance of common stock in connection with exercise of stock options

671

Issuance of common stock in connection with exercise of stock options (in shares)

Issuance of common stock in connection with employee stock purchase plan

5,329

Issuance of common stock in connection with employee common stock purchase plan (in shares)

386

Issuance of restricted stock, net of shares canceled

$ 1

Issuance of restricted stock, net of shares canceled (in shares)

889

Repurchases of common stock, shares exchanged

(4,282)

$ (4,282)

Repurchases of common stock, shares exchanged (in shares)

(187)

187

Stock-based compensation expense

22,832

Ending balance at Sep. 30, 2019

562,959

$ 63

759,541

$ (368,477)

(7)

174,243

(2,404)

Ending balance (in shares) at Sep. 30, 2019

49,536

13,991

Beginning balance at Jun. 30, 2019

578,489

$ 63

749,187

$ (368,459)

(60)

199,759

(2,001)

Beginning balance (in shares) at Jun. 30, 2019

49,338

13,990

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Issuance of subsidiary shares to noncontrolling interest

(4)

Net loss

(16,021)

(15,614)

(407)

Other comprehensive income

Cash dividends paid on common stock

(9,902)

Issuance of common stock in connection with exercise of stock options

152

Issuance of common stock in connection with exercise of stock options (in shares)

Issuance of common stock in connection with employee stock purchase plan

2,218

Issuance of common stock in connection with employee common stock purchase plan (in shares)

158

Issuance of restricted stock, net of shares canceled (in shares)

Repurchases of common stock, shares exchanged

(18)

$ (18)

Repurchases of common stock, shares exchanged (in shares)

(1)

Stock-based compensation expense

7,988

Ending balance at Sep. 30, 2019

562,959

$ 63

759,541

$ (368,477)

(7)

174,243

(2,404)

Ending balance (in shares) at Sep. 30, 2019

49,536

13,991

Beginning balance at Dec. 31, 2019

545,100

$ 64

768,284

$ (368,701)

(53)

148,317

(2,811)

Beginning balance (in shares) at Dec. 31, 2019

49,620

14,002

Other at Dec. 31, 2019

$ 148,317

Accounting Standards Update [Extensible List]

us-gaap:AccountingStandardsUpdate201409Member

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Issuance of subsidiary shares to noncontrolling interest

(23)

Net loss

$ (34,848)

(33,029)

(1,819)

Other comprehensive income

872

Cash dividends paid on common stock

(25,579)

Issuance of common stock in connection with employee stock purchase plan

4,763

Issuance of common stock in connection with employee common stock purchase plan (in shares)

355

Issuance of restricted stock, net of shares canceled

$ 2

Issuance of restricted stock, net of shares canceled (in shares)

1,929

Repurchases of common stock, shares exchanged

(9,206)

$ (9,206)

Repurchases of common stock, shares exchanged (in shares)

(602)

602

Repurchases of common stock

(50,085)

$ (50,085)

Repurchases of common stock, (in shares)

(3,910)

3,910

Common stock issued in merger transaction

828,334

$ 58

828,276

Common stock issued in merger transaction (in shares)

58,300

Retirement of treasury stock

$ (14)

(372,058)

$ 372,072

Retirement of treasury stock (in shares)

(14,186)

Stock-based compensation expense

26,614

Other at Sep. 30, 2020

89,709

Ending balance at Sep. 30, 2020

1,285,967

$ 110

1,255,856

$ (55,920)

819

89,709

(4,607)

Ending balance (in shares) at Sep. 30, 2020

105,692

4,328

Beginning balance at Jun. 30, 2020

1,349,467

$ 109

1,245,717

$ (17,572)

170

124,887

(3,844)

Beginning balance (in shares) at Jun. 30, 2020

108,148

1,277

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Issuance of subsidiary shares to noncontrolling interest

(18)

Net loss

(30,533)

(29,752)

(781)

Other comprehensive income

649

Cash dividends paid on common stock

(5,426)

Issuance of restricted stock, net of shares canceled

$ 1

Issuance of restricted stock, net of shares canceled (in shares)

595

Repurchases of common stock, shares exchanged

(3,262)

$ (3,262)

Repurchases of common stock, shares exchanged (in shares)

(219)

219

Repurchases of common stock

(35,086)

$ (35,086)

Repurchases of common stock, (in shares)

(2,832)

2,832

Stock-based compensation expense

10,157

Other at Sep. 30, 2020

89,709

Ending balance at Sep. 30, 2020

$ 1,285,967

$ 110

$ 1,255,856

$ (55,920)

$ 819

$ 89,709

$ (4,607)

Ending balance (in shares) at Sep. 30, 2020

105,692

4,328

[1]	Refer to “Note 1 – The Company and Basis of Presentation.”

Condensed Consolidated Statements of Equity (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Statement Of Stockholders Equity [Abstract]
Cash dividends paid on common stock, price per share	$ 0.05	$ 0.20	$ 0.45	$ 0.60

The Company and Basis of Presentation

9 Months Ended

Sep. 30, 2020

Organization Consolidation And Presentation Of Financial Statements [Abstract]

The Company and Basis of Presentation

NOTE 1 – THE COMPANY AND BASIS OF PRESENTATION

On December 18, 2019, Xperi Corporation (“Xperi”) entered into an Agreement and Plan of Merger and Reorganization with TiVo Corporation (“TiVo”) to combine in an all-stock merger of equals transaction (the “Mergers”). Immediately following the consummation of the Mergers on June 1, 2020, (the “Merger Date”), Xperi Holding Corporation (the “Company”), a Delaware corporation founded in December 2019 under the name “XRAY-TWOLF HoldCo Corporation,” became the parent company of both Xperi and TiVo. The common stock of Xperi and TiVo were de-registered after completion of the Mergers. On June 2, 2020, Xperi Holding Corporation’s common stock, par value $0.001 per share, commenced trading on the Nasdaq Global Select Market (“Nasdaq”) under the ticker symbol “XPER.” See “Note 7 – Business Combination” for a more detailed description of the Mergers.

Xperi was determined to be the accounting acquirer in the Mergers. As a result, the historical financial statements of Xperi for periods prior to the Mergers are considered to be the historical financial statements of Xperi Holding Corporation. As used herein, the “Company” refers to Xperi when referring to periods prior to June 1, 2020 and to Xperi Holding Corporation when referring to periods subsequent to June 1, 2020. The Company’s results of operations include the operations of TiVo after June 1, 2020, and TiVo’s assets and liabilities were recorded at their estimated fair values in the Company’s Condensed Consolidated Balance Sheets as of June 1, 2020. See “Note 7 – Business Combination” for additional information on the Mergers.

Xperi Holding Corporation is a leading consumer and entertainment technology licensing company and one of the industry’s largest intellectual property (IP) licensing platforms, with a diverse portfolio of media and semiconductor intellectual property and more than 11,000 patents and applications. The Company invents, develops, and delivers technologies that enable extraordinary experiences. The Company’s technologies, delivered via its brands (DTS, HD Radio, IMAX Enhanced, Invensas, and TiVo) and by its subsidiary Perceive Corporation, make entertainment more entertaining, and smart devices smarter. The Company’s technologies are integrated into billions of consumer devices, media platforms, and semiconductors worldwide, driving increased value for customers, partners and consumers. The Company shapes how millions of consumers access and experience entertainment content, and the Company’s innovations are found in billions of devices and hundreds of millions of interfaces around the globe.

The Company has two principal businesses, a product business and an IP licensing business. The product business consists primarily of licensing Company-developed audio, digital radio, imaging, edge-based machine learning and multi-channel video user experience (“UX”) solutions. Edge based machine learning, audio, digital radio, and imaging solutions 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, Personalized Content Discovery, enriched Metadata, viewership data and advertising.

The IP licensing business consists primarily of licensing of 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 industry-leading technologies and proven know-how. In the media industry, the Company’s licensees include pay television (“Pay-TV”) providers, both in the United States and internationally, consumer electronics manufacturers, and other providers of video experiences across various platforms, including over-the-top (OTT) video. In the semiconductor industry, the Company’s licensees include semiconductor manufacturers, fabless companies, foundries, and packaging companies.

The accompanying interim unaudited condensed consolidated financial statements as of September 30, 2020 and 2019, and for the three and nine months then ended, have been prepared by the Company in accordance with generally accepted accounting principles (“GAAP”) in the United States (“U.S.”) for interim financial information. The amounts as of December 31, 2019 have been derived from the Company’s annual audited financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted in accordance with such rules and regulations. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments necessary (consisting of normal recurring adjustments) to state fairly the financial position of the Company and its results of operations and cash flows as of and for the periods presented. These financial statements should be read in conjunction with the annual audited financial statements and notes thereto as of and for the year ended December 31, 2019, included in Xperi’s Annual Report on Form 10-K for the year ended December 31, 2019

and TiVo’s Annual Report on Form 10-K for the year ended December 31, 2019, both of which were filed on February 18, 2020.

The results of operations for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2020 or any future period and the Company makes no representations related thereto.

In the fourth quarter of 2018, the Company funded a new subsidiary, Perceive Corporation (“Perceive”), which was created to focus on delivering edge inference solutions. As a result of issuing new shares in Perceive to noncontrolling interests, the Company’s ownership interest in Perceive was approximately 81% as of September 30, 2020. The operating results of Perceive have been consolidated in the Company’s condensed consolidated financial statements for all periods presented.

In the first quarter of 2019, the Company recorded an out-of-period adjustment to decrease current unbilled receivables and decrease retained earnings by $2.9 million to correct an error that originated in the first quarter of 2018 in connection with its adoption of Accounting Standards Update (“ASU”) No. 2014-09 (Topic 606) “Revenue from Contracts with Customers.” The adjustment relates to an error in the Company’s interpretation of the payment terms of a contract entered into in a prior year. The Company determined that the error was not material to any of its prior annual and interim period financial statements, and the impact of such correction was not considered to be material to the financial statements for the three and nine months ended September 30, 2019.

Reclassification

As a result of the Mergers, certain reclassifications of prior period amounts have been made to improve comparability and conform to the current period presentation. Presentation changes were made to the Condensed Consolidated Statements of Operations. In addition, certain reclassifications of prior period data have been made in the Notes to Condensed Consolidated Financial Statements to conform to the current period presentation.

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Company’s significant accounting policies are detailed in “Note 2 – Summary of Significant Accounting Policies” in its Form 10-K for the year ended December 31, 2019. Certain updates to its revenue recognition policy as a result of the Mergers are provided in “Note 3 – Revenue.”

Use of Estimates

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

The COVID-19 pandemic has resulted in a global slowdown of economic activity which is likely to reduce the future demand for a broad variety of goods and services, while also disrupting sales channels, marketing activities and supply chains for an unknown period of time until the virus is fully contained. The Company’s business operations have been negatively impacted by the COVID-19 pandemic and related events and the Company expects this disruption to continue to have a negative impact on its revenue and results of operations, the size and duration of which is currently difficult to predict. The impact to date has included a decline in demand in various markets and industries, particularly the automotive market. For example, the Company anticipates approximately 20% decline in its royalty revenue in 2020 from the products sold to the automotive market, such as HD Radio, as compared to the prior year. Although the Company is unable to predict the full impact and duration of COVID-19 on its business, the Company is actively managing its financial expenditures in response to the current uncertainty.

The impact of the COVID-19 pandemic and related events, including actions taken by various government authorities in response, have increased market volatility and make the estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes more difficult. As of the date of issuance of the financial statements, the Company is not aware of any specific event or circumstance that would require it to update its estimates, judgments or revise

the carrying value of its assets or liabilities. These estimates may change, as new events occur and additional information is obtained, and are recognized in the consolidated financial statements as soon as they become known.

Recently Adopted Accounting Pronouncements

In September 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. The current expected credit loss model is based on relevant information about past events, including historical experience, current conditions and reasonable and supportable forecasts that affect collectability. Current expected credit losses, and subsequent adjustments, represent an estimate of lifetime expected credit losses that are recorded as an allowance deducted from the amortized cost of the financial instrument. The updated guidance also amends the other-than-temporary impairment model for available-for-sale debt securities by requiring the recognition of impairments for credit-related losses through an allowance and eliminating the length of time a security has been in an unrealized loss position as a consideration in the determination of whether a credit loss exists. On January 1, 2020, the Company adopted the new standard using a modified retrospective transition approach for the provisions related to application of the current expected credit loss model to financial instruments and using a prospective transition approach for the provisions related to credit losses on available-for-sale debt securities. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. For additional detail, refer to “Note 3 – Revenue.”

In August 2018, the FASB issued ASU 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract” (“ASU 2018-15”) modifying the requirements for capitalizing costs incurred to implement a hosting arrangement that is a service contract. The modified requirements were intended to align the cost capitalization requirements for hosting arrangements with the cost capitalization requirements for internal-use software. The Company adopted the standard on January 1, 2020 and applied the modified requirements prospectively to all implementation costs incurred after the date of adoption. The adoption did not have a material impact on the Company’s consolidated financial statements.

Recent Accounting Pronouncements

In December 2019, the FASB released ASU 2019-12, “Simplifying the Accounting for Income Taxes” (“ASU 2019-12”). The purpose of the update is to reduce the complexity pertaining to certain areas in accounting for income taxes. Key amendments from ASU 2019-12 include, but are not limited to, the accounting for hybrid tax regimes, step-up in tax basis for goodwill in non-business combination transactions, intraperiod tax allocation exception to the incremental approach, and interim period accounting for enacted changes in tax law. ASU 2019-12 is effective for the Company in the first quarter of the year ending December 31, 2021. The Company is in the process of evaluating the impact of the adoption of this new standard on its consolidated financial statements and does not currently anticipate a material impact.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in ASU 2020-04 apply only to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. ASU 2020-04 is effective beginning on March 12, 2020 and may be applied prospectively through December 31, 2022. The Company is currently assessing the potential impact of the standard on its consolidated financial statements.

Revenue

9 Months Ended

Sep. 30, 2020

Revenue From Contract With Customer [Abstract]

Revenue

NOTE 3 – REVENUE

Revenue Recognition

General

Revenue is recognized when control of the promised goods or services is transferred to a customer in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services, which may include various combinations of goods and services which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of sales taxes collected from customers which are subsequently remitted to governmental authorities. In situations where foreign withholding taxes are withheld by the Company’s licensee, revenue is recognized gross of withholding taxes that are remitted directly by the licensee to a local tax authority.

Arrangements with Multiple Performance Obligations

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

Contract Modifications

Contracts may be modified due to changes in contract specifications or customer requirements. Contract modifications occur when the change in terms either creates new enforceable rights and obligations or changes existing enforceable rights and obligations. The effect of a contract modification for goods and services that are not distinct in the context of the contract on the transaction price is recognized as an adjustment to revenue on a cumulative catch-up basis. Contract modifications that result in goods or services that are distinct from the existing goods or services are accounted for as separate contracts if they are sold at their stand-alone selling price, or otherwise prospectively.

Variable Consideration

When a contract with a customer includes a variable transaction price, an estimate of the consideration which the Company expects to be entitled to for transferring the promised goods or services is made at contract inception. Depending on the terms of the contract, variable consideration is estimated using either the expected value approach or the most likely value approach. Under either approach to estimating variable consideration, the estimate considers all information (historical, current and forecast) that is reasonably available at contract inception. The amount of variable consideration is estimated at contract inception and updated as additional information becomes available. The estimate of variable consideration is included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Subsequent changes in the transaction price resulting from changes in the estimate of variable consideration are allocated to the performance obligations in the contract on the same basis as at contract inception. Certain payments to licensees, retailers and distributors, such as market development funds and revenue shares, are treated as a reduction of the transaction price, and therefore a reduction to revenue, unless the payment is in exchange for a distinct good or service that the licensee, retailer or distributor transfers to the Company.

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

Nature of Goods and Services

The following is a discussion of the principal activities from which the Company generates its revenue.

License Agreements

The Company operates in two business segments. In its Product segment, the Company licenses its audio, imaging, edge-based machine learning and multi-channel video user experience (“UX”) solutions. In its IP Licensing segment, the Company licenses its media patent portfolios (“IP Media licensing”) to Pay-TV, CE manufacturers and other providers of video experiences across various platforms. In addition, the Company licenses its semiconductor technologies and associated patent portfolios (“IP Semiconductor licensing”) to semiconductor manufacturers, fabless companies, foundries and packaging companies. The Company licenses its technologies and portfolios under three revenue models: (i) fixed-fee IP Media licensing, (ii) fixed-fee or minimum guarantee Product or IP Semiconductor licensing, and (iii) per-unit or per-subscriber royalty licenses.

Fixed-fee IP Media licensing

The Company's long-term fixed-fee IP Media licensing agreements provide its customers with rights to future patented technologies over the term of the agreement that are highly interdependent or highly interrelated to the patented technologies provided at the inception of the agreement. The Company treats these rights as a single performance obligation with revenue recognized on a straight-line basis over the term of the fixed-fee license agreement.

At times, the Company enters into license agreements in which a licensee is released from past patent infringement claims or is granted a license to ship an unlimited number of units or for an unlimited number of subscribers over a future period for a fixed fee. In these arrangements, the Company allocates the transaction price between the release for past patent infringement claims and the future license. In determining the stand-alone selling price of the release for past patent infringement claims and the future license, the Company considers such factors as the number of units shipped in the past or the number of past subscribers and the relevant geographies of the shipped units or subscribers, the future number of subscribers or units, as well as the licensing rate the Company generally receives for per subscriber or units shipped in the same geographies. As the release from past patent infringement claims is generally satisfied at execution of the agreement, the transaction price allocated to the release from past patent infringement claims is generally recognized in the period the agreement is executed and the amount of transaction price allocated to the future license is recognized ratably over the future license term.

Fixed-fee or minimum guarantee IP Semiconductor or Product licensing

The Company enters into IP Semiconductor or Product licenses that have fixed fee or minimum guarantee arrangements, whereby licensees pay a fixed fee for the right to incorporate the Company’s technology in the licensee's products over the license term. In arrangements with a minimum guarantee, the fixed fee component corresponds to a minimum number of units or dollars that the customer must produce or pay, with additional per-unit fees for any units or dollars exceeding the minimum. In most cases, the customer pays the fixed license fee in specified installments over the license term. For both fixed fee and minimum guarantee agreements for IP Semiconductor or Product licensing, the Company recognizes the full fixed fee as revenue at the beginning of the license term, when the licensee has the right to use the IP and begins to benefit from the license.

If the contract term of a fixed fee or minimum guarantee arrangement is longer than one year, the Company also considers the scheduled payment arrangements to determine whether a significant financing component exists. In general, if the payment arrangements extend beyond the initial twelve months of the contract, the Company treats a portion of the payments as a significant financing component. The discount rate used for each arrangement reflects the rate that would be used in a separate financing transaction between the Company and the licensee at contract inception and takes into account the credit characteristics of the licensee and market interest rates as of the date of the agreement. As such, the amount of fixed fee revenue recognized at the beginning of the license term will be reduced by the calculated financing component. As payments are received from the licensee, the Company recognizes a portion of the financing component as interest income, reported as other income and expense in the Consolidated Statements of Operations.

Per-unit or per-subscriber royalty licenses

The Company recognizes revenue from per-unit or per-subscriber royalty licenses in the period in which the licensee's sales or production are estimated to have occurred, which results in an adjustment to revenue when actual sales or production are subsequently reported by the licensee, which is generally in the month or quarter following usage or shipment. The Company generally recognizes revenue from royalty licenses on a per-subscriber per-month model for licenses with service providers and a per-unit shipped or manufactured model for licenses with CE manufacturers.

Compliance Audits

The Company actively monitors and enforces its IP, including seeking appropriate compensation from customers that have under-reported royalties owed under a license agreement and from third parties that utilize the Company’s intellectual property without a license. As a result of these activities, the Company may, from time to time, recognize revenue from payments resulting from periodic compliance audits of licensees for underreporting royalties incurred in prior periods, as part of a settlement of a patent infringement dispute, or from legal judgments in a license dispute. These recoveries and settlements may cause revenue to be higher than expected during a particular reporting period and such recoveries may not occur in subsequent periods. The Company recognizes revenue from recoveries when a binding agreement has been executed and the Company concludes collection under that agreement is likely.

Arrangements with Multiple System Operators for the TiVo Service

The Company's arrangements with multiple system operators ("MSOs") typically include software customization and set-up services, associated maintenance and support, limited training, post-contract support, TiVo-enabled DVRs, non-DVR Set-Top Boxes (“STBs”), and the TiVo service.

The Company has two types of arrangements with MSOs that include technology deployment and engineering services. In instances where the Company hosts the TiVo service, non-refundable payments received for customization and set-up services are deferred and recognized as revenue ratably over the hosting term. The related cost of such services is capitalized to the extent it is deemed recoverable and amortized to cost of revenue over the same period as the related TiVo service revenue is

recognized. The Company estimates the stand-alone selling prices for training, DVRs, non-DVR STBs and maintenance and support based on the price charged in stand-alone sales of the promised good or service. The stand-alone selling price for the TiVo service is determined by considering the size of the MSO and expected volume of deployment, market conditions, competitive landscape, internal costs and total gross margin objectives. For a term license to the TiVo service, the Company receives license fees for the hosted TiVo service on either a per-subscriber per-month basis or a fixed fee. The Company recognizes revenue from per-subscriber per-month licenses during the month the TiVo service is provided to the customer and recognizes revenue from fixed fee licenses ratably over the license period.

In arrangements where the Company does not host the TiVo service, which includes engineering services that are essential to the functionality of the licensed technology or involve significant customization or modification of the software, the Company recognizes revenue as progress toward completion is made using an input method based on the ratio of costs incurred to date to total estimated costs of the project. Project costs are primarily labor related to specific activities required for the project. Costs related to general infrastructure or uncommitted platform development are not included in the project cost estimates and are expensed as incurred. Estimating project costs requires forecasting costs, tracking progress toward completion and projecting the remaining effort to complete the project. These estimates are reassessed throughout the term of the arrangement, and revisions to estimates are recognized on a cumulative catch-up basis when the changed conditions become known. Provisions for losses are recorded when estimates indicate it is probable that a loss will be incurred for the contract. The Company generally recognizes revenue from license fees for the TiVo service that the Company does not host on a per-subscriber per-month basis due to the recognition constraint on intellectual property usage-based royalties.

Subscription Services

Subscription services revenue primarily consists of fees to provide customers with access to one or more of the Company's hosted products such as its iGuide interactive program guide (“IPG”), advanced search and recommendations, metadata and analytics products, including routine customer support. The Company generally receives per-subscriber per-month fees for its iGuide IPG and search and recommendations service and revenue is recorded in the month the customer uses the service. The Company generally receives a monthly or quarterly fee from its metadata or analytics licenses for the right to use the metadata or access its analytics platform and to receive regular updates. Revenue from the Company's metadata and analytics service is recognized ratably over the subscription period.

TiVo-enabled DVRs and TiVo Service

The Company sells TiVo-enabled DVRs and the related service directly to customers through sales programs via the TiVo.com website and licenses the sale of TiVo-enabled DVRs through a limited number of retailers. All customers have the right to cancel their subscription to the TiVo service within 30 days of subscription activation for a full refund. After the initial subscription period, all customers have various pricing options when they renew their subscription.

The transaction price allocated to the DVR is recognized as revenue upon shipment to the customer and the transaction price allocated to the TiVo service is recognized as revenue ratably over the service period. Subscription revenue from lifetime subscriptions are recognized ratably over the estimated useful life of the DVR associated with the subscription. The estimated useful life for a DVR depends on a number of assumptions, including, but not limited to, customer retention rates, the timing of new product introductions and historical experience. The Company periodically reassesses the estimated useful life of a DVR. When the actual useful life of the DVR materially differs from the Company's estimate, the estimated useful life of the DVR is adjusted, which could result in the recognition of revenue over a longer or shorter period of time.

Significant Judgments

Determining whether promises to transfer multiple goods and services in contracts with customers are considered distinct performance obligations that should be accounted for separately requires significant judgment, including related to the level of integration and interdependency between the performance obligations. In addition, judgment is necessary to allocate the transaction price to the distinct performance obligations, including whether there is a discount or significant financing component to be allocated based on the relative stand-alone selling price of the various performance obligations.

Significant judgment is required to determine the stand-alone selling price for each distinct performance obligation when an observable price is not available. In instances where stand-alone selling price is not directly observable, such as when the Company does not sell the good or service separately, the stand-alone selling price is determined using a range of inputs that includes market conditions and other observable inputs. More than one stand-alone selling price may exist for individual goods and services due to the stratification of those goods and services, considering attributes such as the size of the customer and geographic region.

Due to the nature of the work required to be performed on some performance obligations, significant judgment may be required to determine the transaction price. It is common for the Company's license agreements to contain provisions that can either increase or decrease the transaction price. These variable amounts are generally estimated based on usage. In addition to estimating variable consideration, significant judgment is necessary to identify forms of variable consideration, determine whether the variable consideration relates to a sales-based or usage-based royalty of intellectual property and determine whether, and when to include estimates of variable consideration in the transaction price.

For certain licensees, royalty revenue is generated based on a licensee’s production or shipment of licensed products incorporating the Company’s intellectual property, technologies or software. Licensees with a per-unit or per-subscriber arrangement pay a per-unit royalty for each product manufactured or sold, or for each subscriber, as set forth in its license agreement. Licensees generally report manufacturing, sales or subscriber information in the month or quarter subsequent to when the production, shipment or subscription activity takes place. The Company estimates the royalties earned each quarter based on its forecast of manufacturing and sales activity by its licensees in that quarter. Any differences between actual royalties owed by a licensee and the Company’s estimate are recognized when the licensee’s royalty report is received. Estimating licensees’ quarterly royalties prior to receiving the royalty reports requires the Company to make significant assumptions and judgments related to forecasted trends and growth rates used to estimate quantities manufactured, shipped or subscribed by licensees, which could have a material impact on the amount of revenue recognized.

Some hardware products are sold with a right of return and, in certain circumstances, credits or incentives may be provided to customers or resellers at the time of sale. Such credits and incentives are accounted for as variable consideration and recognized as a reduction to revenue. Estimates of returns, credits and incentives are made at contract inception and updated each reporting period.

In contracts where the Company does not host the TiVo service and that include engineering services that are essential to the functionality of the licensed technology or involve significant customization or modification of software, or where the Company provides non-recurring engineering (“NRE”) services, the Company recognizes revenue as progress toward completion occurs using an input method based on the ratio of costs incurred to date to total estimated costs of the project. Significant judgment is required to estimate the remaining effort to complete the project. These estimates are reassessed throughout the term of the arrangement.

Management evaluates its estimates, inputs and assumptions related to revenue recognition on an ongoing basis. The use of different estimates, inputs or assumptions may materially affect the reported amounts of assets and liabilities as of the date of the financial statements and the results of operations for the reporting period.

Practical Expedients and Exemptions

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

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

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

For additional detail on the Company's revenue disaggregated by geographic location, refer to “Note 16 – Segment and Geographic Information.”

Contract Balances

Contracts Assets

Contract assets primarily consist of unbilled contracts receivable that are expected to be received from customers in future periods, where the revenue recognized to date (or cumulative adjustments to retained earnings in the initial period of adopting Topic 606) exceeds the amount billed. The amount of unbilled contracts receivable may not exceed their net realizable value and are classified as long-term assets if the payments are expected to be received more than one year from the reporting date.

Contract assets also include the incremental costs of obtaining a contract with a customer, principally sales commissions when the renewal commission is not commensurate with the initial commission, and deferred engineering costs for significant software customization or modification and set-up services to the extent deemed recoverable. Contract assets were recorded in the Condensed Consolidated Balance Sheets as follows (in thousands):

	September 30, 2020		December 31, 2019
Unbilled contracts receivable	$	164,138	$	121,826
Other current assets		566		—
Long-term unbilled contracts receivable		15,083		26,672
Other long-term assets		1,360		—
Total contract assets	$	181,147	$	148,498

Contract Liabilities

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

Allowance for Credit Losses

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

The Company’s long-term unbilled contracts receivable is derived from fixed-fee or minimum-guarantee arrangements, primarily with large well-capitalized companies. It is considered to be of high credit quality due to past collection history and the nature of the customers.

The following table presents the activity in the allowance for credit losses for the three and nine months ended September 30, 2020 (in thousands):

	Three Months Ended September 30, 2020							Nine Months Ended September 30, 2020
	Accounts Receivable					Unbilled Contracts Receivable		Accounts Receivable				Unbilled Contracts Receivable
Beginning balance	$	2,469				$	357	$	566			$	—
Provision for credit losses		1,163		(1	)		232		3,391		(1)		589
Recoveries/charged-off		(8	)				1		(333	)			1
Balance at end of period	$	3,624				$	590	$	3,624			$	590

(1) The increase in provision for credit losses was due to late payments and collection issues with certain of the Company’s customers in the third quarter of 2020.

(2)The increase in provision for credit losses was based on assessment of current conditions including the COVID-19 pandemic and anticipation of delayed or delinquent payments on existing accounts receivable as a result of the declining financial health and liquidity positions of certain of the Company’s customers during the first quarter, as well as late payments and collection issues in the third quarter of 2020.

Additional Disclosures Under Topic 606

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Revenue recognized in the period from:
Amounts included in deferred revenue at the beginning of the period	$	12,364	$	175	$	50	$	3,130
Performance obligations satisfied in previous periods (true ups, licensee reporting adjustments and settlements)*	$	12,232	$	1,349	$	66,454	$	2,941

*True ups represent the differences between the Company’s quarterly estimates of per unit royalty revenue and actual production/sales-based royalties reported by licensees in the following period. Licensee reporting adjustments represent corrections or revisions to previously reported per unit royalties by licensees, generally resulting from the Company’s inquiries or compliance audits. Settlements represent resolutions of litigation during the period for past royalties owed pursuant to expired or terminated IP license agreements.

Remaining revenue under contracts with performance obligations represents the aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied (or partially unsatisfied) under the Company’s fixed-fee IP, software-as-a-service agreements and engineering services contracts. The Company's remaining revenue under contracts with performance obligations was as follows (in thousands):

	As of
	September 30, 2020		December 31, 2019
Revenue from contracts with performance obligations expected to be satisfied in:
2020 (remaining 3 months)	$	48,032	$	5,337
2021		145,813		990
2022		99,594		345
2023		89,523		—
2024		75,883		—
Thereafter		74,079		—
Total	$	532,924	$	6,672

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Composition of Certain Financial Statement Captions

9 Months Ended

Sep. 30, 2020

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Composition of Certain Financial Statement Captions

NOTE 4 – COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS

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

	September 30, 2020		December 31, 2019
Prepaid income taxes	$	3,895	$	2,364
Prepaid expenses		21,707		8,802
Inventory		6,154		79
Other		4,328		2,490
	$	36,084	$	13,735

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

	September 30, 2020			December 31, 2019
Equipment, furniture and other	$	58,366		$	32,504
Building and improvements		18,309			18,258
Land		5,300			5,300
Leasehold improvements		26,149			8,103
		108,124			64,165
Less: accumulated depreciation and amortization		(42,692	)		(31,288	)
	$	65,432		$	32,877

Other long-term assets consisted of the following (in thousands):

	September 30, 2020		December 31, 2019
Non-current income tax receivable	$	109,745	$	64,570
Long-term deferred tax assets		5,735		3,660
Other assets		20,915		3,106
	$	136,395	$	71,336

Accrued liabilities consisted of the following (in thousands):

	September 30, 2020		December 31, 2019
Employee compensation and benefits	$	35,819	$	18,404
Accrued expenses		22,367		7,930
Current portion of operating lease liabilities		17,577		5,845
Accrued severance		6,695		—
Third-party royalties		3,775		6,165
Other		12,529		3,089
	$	98,762	$	41,433

Other long-term liabilities consisted of the following (in thousands):

	September 30, 2020		December 31, 2019
Long-term income tax payable	$	91,676	$	76,767
Other		3,961		131
	$	95,637	$	76,898

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

	September 30, 2020			December 31, 2019
Foreign currency translation adjustment, net of tax	$	895		$	—
Unrealized loss on available-for-sale debt securities, net of tax		(76	)		(53	)
	$	819		$	(53	)

Other income and expense, net, consisted of the following (in thousands):

	Three Months Ended,					Nine Months Ended,
	September 30, 2020		September 30, 2019			September 30, 2020			September 30, 2019
Interest income from significant financing components under Topic 606	$	547	$	906		$	2,243		$	4,626
Interest income from investments		456		420			1,248			1,702
Unrealized/realized gain (loss) on marketable equity securities		—		(1,060	)		(707	)		563
Other income/(expense), net		1,302		163			664			646
	$	2,305	$	429		$	3,448		$	7,537

Financial Instruments

9 Months Ended

Sep. 30, 2020

Investments Debt And Equity Securities [Abstract]

Financial Instruments

NOTE 5 – FINANCIAL INSTRUMENTS

The Company has investments in debt securities which include corporate bonds and notes, treasury and agency notes and bills, commercial paper, certificates of deposit, and in equity securities consisting of money market funds. The Company classifies its debt securities as available-for-sale (“AFS”), which are accounted for at fair value with credit related losses recognized as a provision for credit loss expense in its Condensed Consolidated Statements of Operations and all non-credit related unrealized gains and losses recognized in accumulated other comprehensive income or loss on the Condensed Consolidated Balance Sheets. Under ASU 2016-01 (Topic 321), equity securities are measured at fair value with unrealized gains and losses recognized in other income and expense, net, on the Condensed Consolidated Statements of Operations.

The following is a summary of marketable securities at September 30, 2020 and December 31, 2019 (in thousands):

	September 30, 2020
	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Allowance for Credit Losses		Estimated Fair Values
Marketable securities
Corporate bonds and notes	$	72,273	$	61	$	(62	)	$	—	$	72,272
Treasury and agency notes and bills		4,999		—		(1	)		—		4,998
Commercial paper		9,990		—		(2	)		—		9,988
Total debt securities		87,262		61		(65	)		—		87,258
Money market funds		4,771		—		—			—		4,771
Total equity securities		4,771		—		—			—		4,771
Total marketable securities	$	92,033	$	61	$	(65	)	$	—	$	92,029
Reported in:
Cash and cash equivalents										$	4,771
Available-for-sale debt securities											87,258
Total marketable securities										$	92,029

	December 31, 2019
	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Values
Marketable securities
Corporate bonds and notes	$	41,730	$	29	$	(13	)	$	41,746
Commercial paper		4,052		4		—			4,056
Total debt securities		45,782		33		(13	)		45,802
Money market funds		2,601		—		—			2,601
Marketable equity securities		3,405		—		(2,281	)		1,124
Total equity securities		6,006		—		(2,281	)		3,725
Total marketable securities	$	51,788	$	33	$	(2,294	)	$	49,527
Reported in:
Cash and cash equivalents								$	2,601
Available-for-sale debt securities									45,802
Equity securities									1,124
Total marketable securities								$	49,527

At September 30, 2020 and December 31, 2019, the Company had $203.0 million and $121.5 million, respectively, in cash, cash equivalents and short-term investments. These balances include $111.0 million and $72.0 million in cash held in operating accounts not included in the tables above at September 30, 2020 and December 31, 2019, respectively.

Debt Securities

The gross realized gains and losses on sales of marketable debt securities were not significant during the three and nine months ended September 30, 2020 and 2019, respectively.

Unrealized losses on AFS debt securities were $0.1 million and $0.1 million, net of tax, as of September 30, 2020 and December 31, 2019, respectively. The Company evaluated whether the decline in fair value has resulted from credit losses or other factors and concluded these amounts were related to temporary fluctuations in value of AFS securities and were due primarily to changes in interest rates and market conditions of the underlying securities. In addition, the contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. The Company does not intend to sell the debt securities and it is more-likely-than-not that it will not be required to sell the investments before recovery of their amortized cost bases. The Company did not recognize a provision for credit loss expense related to its AFS debt securities for the three and nine months ended September 30, 2020, respectively. No impairment charges were recorded on the AFS debt securities for the three and nine months ended September 30, 2019, respectively.

The following table summarizes the fair value and gross unrealized losses related to individual AFS debt securities at September 30, 2020 and December 31, 2019, which have been in a continuous unrealized loss position, aggregated by investment category and length of time (in thousands):

	Less Than 12 Months					12 Months or More				Total
September 30, 2020	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Corporate bonds and notes	$	52,933	$	(62	)	$	—	$	—	$	52,933	$	(62	)
Treasury and agency notes and bills		4,998		(1	)		—		—		4,998		(1	)
Commercial paper		9,988		(2	)		—		—		9,988		(2	)
Total	$	67,919	$	(65	)	$	—	$	—	$	67,919	$	(65	)

	Less Than 12 Months					12 Months or More					Total
December 31, 2019	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Corporate bonds and notes	$	20,031	$	(10	)	$	8,753	$	(3	)	$	28,784	$	(13	)
Total	$	20,031	$	(10	)	$	8,753	$	(3	)	$	28,784	$	(13	)

The estimated fair value of marketable debt securities by contractual maturity at September 30, 2020 is shown below (in thousands). Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without penalties.

	Estimated Fair Value
Due in one year or less	$	47,005
Due in one to two years		40,253
Total	$	87,258

Equity Securities

On September 19, 2018, the Company purchased 7.0 million common shares of Onkyo Corporation (“Onkyo”), a publicly traded Japanese company and a long-standing customer of the Company, pursuant to the Capital Alliance Agreement entered into between the two parties on September 3, 2018. Upon making the investment, the Company held a 6.3% ownership interest in Onkyo. Due to changes in business expectations, the Company determined not to continue discussions on the business alliance. In July 2019, the Company sold approximately 2.8 million shares of Onkyo stock and realized a gain of $0.9 million. In June 2020, the Company sold the remaining 4.2 million shares of Onkyo stock. For the nine months ended September 30, 2020, total realized loss on the Onkyo investment was approximately $0.7 million.

Non-marketable Equity Securities

Investments in non-marketable equity securities are accounted for using either the equity method or the cost method. Investments in entities over which the Company has the ability to exercise significant influence, but does not hold a controlling interest, are accounted for using the equity method. Under the equity method, the Company records its proportionate share of income or loss in other income and expense, net, in the Condensed Consolidated Statements of Operations. Investments in entities over which the Company does not have the ability to exercise significant influence are accounted for using the cost method. The Company monitors its non-marketable securities portfolio for potential impairment. When the carrying amount of an investment in a non-marketable security exceeds its fair value and the decline in fair value is determined to be other-than-temporary, the loss is recorded in other income and expense, net, in the Condensed Consolidated Statements of Operations.

Upon merging with TiVo on June 1, 2020, the Company assumed certain investments in non-marketable equity. As of September 30, 2020, other long-term assets included equity securities accounted for under the equity method with a carrying amount of $4.1 million and equity securities without a readily determinable fair value with a carrying amount of $0.1 million, respectively. No impairments or adjustments to the carrying amount of the Company's equity securities without a readily determinable fair value were recognized in the three and nine months ended September 30, 2020, respectively. The Company had no investments in non-marketable equity securities prior to June 1, 2020.

Fair Value

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Fair Value

NOTE 6 – FAIR VALUE

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


Level 1	Quoted prices in active markets for identical assets.

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

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

When applying fair value principles in the valuation of assets, the Company is required to maximize the use of quoted market prices and minimize the use of unobservable inputs. The Company calculates the fair value of its Level 1 and Level 2 instruments based on the exchange traded price of similar or identical instruments, where available, or based on other observable inputs. There were no significant transfers into or out of Level 1 or Level 2 that occurred between December 31, 2019 and September 30, 2020.

The following sets forth the fair value, and classification within the hierarchy, of the Company’s assets required to be measured at fair value on a recurring basis as of September 30, 2020 (in thousands):

	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Marketable securities
Money market funds - equity securities (1)	$	4,771	$	4,771	$	—	$	—
Treasury and agency notes and bills (2)		4,998		—		4,998		—
Commercial paper (2)		9,988		—		9,988		—
Corporate bonds and notes - debt securities (2)		72,272		—		72,272		—
Total Assets	$	92,029	$	4,771	$	87,258	$	—

(1)

Reported as cash and cash equivalents in the Condensed Consolidated Balance Sheet.

(2)

Reported as AFS debt securities in the Condensed Consolidated Balance Sheet.

The following sets forth the fair value, and classification within the hierarchy, of the Company’s assets required to be measured at fair value on a recurring basis as of December 31, 2019 (in thousands):

	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Marketable securities
Money market funds - equity securities (1)	$	2,601	$	2,601	$	—	$	—
Marketable equity securities (2)		1,124		1,124		—		—
Commercial paper - debt securities (3)		4,056		—		4,056		—
Corporate bonds and notes - debt securities (3)		41,746		—		41,746		—
Total Assets	$	49,527	$	3,725	$	45,802	$	—

(1)

Reported as cash and cash equivalents in the Condensed Consolidated Balance Sheet.

(2)

Reported as equity securities in the Condensed Consolidated Balance Sheet.

(3)

Reported as AFS debt securities in the Condensed Consolidated Balance Sheet.

Financial Instruments Not Recorded at Fair Value

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

	September 30, 2020				December 31, 2019
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
2020 Term B Loan Facility ⁽¹⁾	$	1,000,186	$	978,152	$	—	$	—
2021 Convertible Notes		48		48		—		—
2018 Amended Term B Loan ⁽¹⁾		—		—		334,679		335,642
Total long-term debt, net	$	1,000,234	$	978,200	$	334,679	$	335,642

(1)	Carrying amounts of long-term debt are net of unamortized debt issuance costs of $36.7 million and $9.3 million as of September 30, 2020 and December 31, 2019, respectively. See “Note 9 – Debt” for additional information.

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

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Business Combination

9 Months Ended

Sep. 30, 2020

Business Combinations [Abstract]

Business Combination

NOTE 7 – BUSINESS COMBINATION

Effective June 1, 2020, Xperi and TiVo completed the previously announced merger of equals transaction (the “Merger”) contemplated by the Agreement and Plan of Merger and Reorganization, dated as of December 18, 2019, as amended on January 31, 2020, (the “Merger Agreement”), by and among Xperi, TiVo, XRAY-TWOLF HoldCo Corporation (“Xperi Holding”), XRAY Merger Sub Corporation (“Xperi Merger Sub”) and TWOLF Merger Sub Corporation (“TiVo Merger Sub”). Immediately prior to the consummation of the Merger, Xperi Holding changed its name to “Xperi Holding Corporation” (the “Company”). Pursuant to the Merger Agreement, (i) Xperi Merger Sub was merged with and into Xperi, with Xperi surviving the merger as a subsidiary of Xperi Holding Corporation (the “Xperi Merger”) and (ii) TiVo Merger Sub was merged with and into TiVo, with TiVo surviving the merger as a subsidiary of Xperi Holding Corporation (the “TiVo Merger” and together with the Xperi Merger, the “Mergers”). Immediately following the consummation of the Mergers, each of Xperi and TiVo became wholly-owned subsidiaries of the Company.

Upon completion of the Xperi Merger, each share of common stock, par value $0.001 per share, of Xperi (the “Xperi Common Stock”) (excluding any shares of Xperi Common Stock that were held in treasury immediately prior to the effective time of the Xperi Merger, which were automatically canceled and retired for no consideration) was converted into the right to receive one fully paid and non-assessable share of common stock, par value $0.001 per share, of the Company (“Company Common Stock”). Upon completion of the TiVo Merger, (i) each share of common stock, par value $0.001 per share, of TiVo (the “TiVo Common Stock”) (excluding any shares of TiVo Common Stock that were held in treasury immediately prior to the effective time of the TiVo Merger, which were automatically canceled and retired for no consideration) was converted into the right to receive 0.455 fully paid and non-assessable shares of common stock of the Company (the “Exchange Ratio”), in addition to cash in lieu of any fractional shares of the Company Common Stock.

As provided in the Merger Agreement, at the effective time of the Mergers, (i) all options, restricted shares, restricted stock unit awards and other equity awards relating to shares of Xperi Common Stock outstanding immediately prior to the effective time of the Mergers were generally automatically converted into options, restricted shares, restricted stock unit awards and other equity awards, respectively, relating to shares of Company Common Stock after giving effect to appropriate adjustments to reflect the Mergers and otherwise generally on the same terms and conditions as applied under the applicable plans and award agreements immediately prior to the effective time of the Mergers, and (ii) all options, restricted shares, restricted stock unit awards and other equity awards relating to shares of TiVo Common Stock that were outstanding immediately prior to the effective time of the Mergers (including Exchange Ratio) were generally automatically converted into options, restricted stock unit awards, restricted shares and other equity awards, respectively, relating to shares of Company Common Stock after giving effect to appropriate adjustments to reflect the Mergers and otherwise generally on the same terms and conditions as applied under the applicable plans and award agreements immediately prior to the effective time of the Mergers.

Following the Mergers, Xperi Common Stock and TiVo Common Stock were delisted from the Nasdaq Global Select Market (“Nasdaq”) and deregistered under the Securities Exchange Act of 1934, as amended. Since June 2, 2020, the shares of the Company’s common stock have been listed for trading on Nasdaq under the ticker symbol “XPER.”

The Mergers created a leading consumer and entertainment technology and IP licensing company. The Company’s IP business includes one of the industry’s largest and most successful IP portfolios licensed to a diverse base of customers. On the product side, the Company offers a seamless end-to-end entertainment experience from creation to consumption; with greater scale, technology depth and breadth, and a platform relevant to one of the biggest challenges consumers of entertainment face today – how to quickly and easily find, watch and enjoy entertainment.

The Company is currently contemplating and may pursue, subject to the receipt of approval by the Company’s board and any required regulatory approvals, a separation of the Company’s product business and IP licensing business through a tax-efficient transaction, resulting in two independent, publicly traded companies. The Company is currently evaluating the optimal timing of the contemplated business separation.

Merger Consideration

The merger consideration of $828.3 million was calculated as follows (amounts in thousands except exchange ratio and share price):

TiVo common shares outstanding as of June 1, 2020		128,132
TiVo exchange ratio		0.455
Xperi Holding Corporation common stock issued in exchange		58,300
Xperi Common Stock closing share price on June 1, 2020	$	14.00
			$	816,201
Fair value of replaced TiVo equity awards relating to pre-acquisition vesting of the equity award holders’ requisite service periods				12,133
Total merger consideration			$	828,334

Assumed TiVo Equity Awards

In connection with the Mergers, the Company assumed unvested TiVo equity incentive awards with a fair value of $34.1 million, of which $12.1 million related to pre-acquisition services and was included in the purchase price, and $22.0 million related to post-acquisition services. The Company valued the restricted stock units at the Company’s closing stock price and stock options using a Black-Scholes pricing model as of the date of acquisition. The fair value relating to post-acquisition services will be amortized as stock-based compensation expense over an estimated weighted average remaining service period of 2.5 years.

Preliminary Purchase Price Allocation

Based on an evaluation of the provisions of ASC 805, “Business Combinations,” Xperi was determined to be the accounting acquirer in the Mergers. The Company has applied the acquisition method of accounting that requires, among other things, that identifiable assets acquired and liabilities assumed generally be recognized on the balance sheet at fair value as of the acquisition date. In determining the fair value, the Company utilized various forms of the income, cost and market approaches depending on the asset or liability being fair valued. The estimation of fair value required significant judgment related to future net cash flows (including revenue, operating expenses, and working capital), discount rates reflecting the risk inherent in each cash flow stream, competitive trends, market comparables and other factors. Inputs were generally determined by taking into account historical data (supplemented by current and anticipated market conditions) and growth rates.

The table below presents the preliminary fair value that was allocated to TiVo's assets and liabilities based upon fair values as determined by the Company. The initial allocation of the purchase price was based on preliminary valuations and assumptions and is subject to change within the measurement period, including current indirect taxes payable, current and non-current income taxes payable and deferred taxes as additional information is received and tax returns are finalized. The Company expects to finalize the allocation of the purchase price within the measurement period. Final determination of the fair values may result in further adjustments to the values presented in the following table ($ in thousands):

	Estimated Useful Life (years)		Estimated Fair Value
Cash and cash equivalents			$	117,424
Accounts receivable				105,778
Unbilled contracts receivable				69,058
Other current assets				21,690
Long-term unbilled contracts receivable				129
Property and equipment				41,307
Operating lease right-of-use assets				71,444
Identifiable intangible assets:
Patents	10	457,400
Customer contracts and related relationships	4-9	358,200
Developed technology	5	34,800
Content database	9	6,200
Trademarks and tradenames	N/A	21,400
Total identifiable intangible assets				878,000
Goodwill				461,129
Other long-term assets				43,700
Accounts payable				(13,258	)
Accrued legal fees				(5,619	)
Accrued liabilities				(79,071	)
Current portion of deferred revenue				(29,291	)
Current portion of long-term debt				(734,609	)
Deferred revenue, less current portion				(24,319	)
Long-term deferred tax liabilities				(27,949	)
Long-term debt				(48	)
Noncurrent operating lease liabilities				(59,291	)
Other long-term liabilities				(7,870	)
Total purchase price			$	828,334

The following is a description of the methods used to determine the fair values of significant assets and liabilities.

Identifiable Intangible Assets

Identifiable intangible assets primarily consist of patents, developed technology, customer relationships, trademarks and tradenames, and content database. The fair value of intangibles was based on valuations using assumptions developed by management and other information compiled by management including, but not limited to, discounted future expected cash flows. The fair value of certain customer relationships was calculated by comparing the estimated value with customer relationships in place against the value without those customer relationships in place. The fair value of intangibles relies heavily on projected future net cash flows including, but not limited to, key assumptions for revenue, operating expenses and working capital. The discount rates used for intangible assets are based on current market rates and reflect the risk inherent in each cash flow stream. The estimated useful life reflects the time period in which the Company expects to receive the benefits of the related cash flows. Discounted future expected cash flows and other management estimates are based on significant unobservable inputs and, as a result, the intangible assets acquired would be presented in Level 3 of the fair value hierarchy.

Long-term Debt

On the Merger date, TiVo had outstanding debt under the 2019 Term Loan Facility Agreement (“TiVo 2019 Term Loan”), pursuant to which TiVo was required to pay a 3.0% prepayment premium if the loan was prepaid on or prior to November 22, 2020. Under the 2019 Term Loan Facility Agreement, the Mergers triggered certain change of control conditions that constitute an event of default, thus requiring the debt to be paid immediately following the consummation of the Mergers. In connection with the consummation of the Mergers, the Company, on June 1, 2020, paid the full amount of the outstanding loan balance, including the 3.0% prepayment penalty. See “Note 9 – Debt” for additional information.

Fair value of the TiVo 2019 Term Loan was measured based on the par value of principal outstanding plus prepayment premium, which is equal to the amount that was paid by Xperi immediately following the consummation of the Mergers. The fair value of the TiVo 2019 Term Loan would be classified in Level 2 of the fair value hierarchy.

Goodwill

The excess of the consideration transferred over the fair value of assets acquired and liabilities assumed was recognized as goodwill. The goodwill is generated from operational synergies and cost savings the Company expects to achieve from the combined operations, as well as the expected benefits from future technologies that do not meet the definition of an identifiable intangible asset and TiVo’s knowledgeable and experienced workforce. See Note 8 for the allocation of goodwill to the reportable segments. Of the total goodwill acquired, $16.4 million is expected to be deductible for tax purposes; the remainder of the goodwill is not expected to be deductible for tax purposes.

TiVo Results of Operations

TiVo’s results of operations and cash flows have been included in the Company’s condensed consolidated financial statements for periods subsequent to June 1, 2020, and TiVo’s assets and liabilities were recorded at their estimated fair values in the Company’s Condensed Consolidated Balance Sheets as of June 1, 2020. For the three and nine months ended September 30, 2020, TiVo contributed $159.0 million and $211.8 million in revenue, respectively, and $28.9 million and $20.9 million in operating income, respectively, to the operating results of the Company.

Transaction and Severance Costs

In connection with the Mergers, the Company incurred significant one-time expenses in the first three quarters of 2020 such as transaction related costs (e.g. bankers fees, legal fees, consultant fees, etc.), lease impairment charges due to facilities consolidation, severance and retention costs (including stock-based compensation expense resulting from the contractually-required acceleration of equity instruments for departing executives). Total transaction related costs amounted to $1.2 million and $29.1 million for the three and nine months ended September 30, 2020, respectively. Lease impairment charges were $0.7 million and $0.7 million for the three and nine months ended September 30, 2020, respectively. In addition, post-merger severance and retention costs (including related stock-based compensation expense) were $3.6 million and $12.1 million for the three and nine months ended September 30, 2020, respectively. The Company may incur additional expenses for integration, severance and retention, and the impairment of right-of-use assets due to facilities consolidation in future quarters.

Supplemental Pro Forma Information

The following unaudited pro forma financial information assumes the companies were combined as of January 1, 2019. The unaudited pro forma financial information as presented below is for informational purposes only and is based on estimates and assumptions that have been made solely for purposes of developing such pro forma information. This is not necessarily indicative of the results of operations that would have been achieved if the Mergers had taken place on January 1, 2019, nor is it necessarily indicative of future results. Consequently, actual results could differ materially from the unaudited pro forma financial information presented below. The following table presents the pro forma operating results as if TiVo had been included in the Company's Condensed Consolidated Statements of Operations as of January 1, 2019 (unaudited, in thousands):

	Three Months Ended						Nine Months Ended
	September 30, 2020			September 30, 2019			September 30, 2020			September 30, 2019
Revenue	$	202,797		$	214,610		$	708,675		$	676,888
Net income (loss) attributable to Xperi Holding Corporation	$	(23,085	)	$	(193,898	)	$	(145,649	)	$	(337,906	)

The unaudited supplemental pro forma information above includes the estimated impact of purchase accounting and other material, nonrecurring adjustments directly attributable to the Mergers. These pro forma adjustments primarily include the following (in thousands):

	Three Months Ended					Nine Months Ended
	September 30, 2020		September 30, 2019			September 30, 2020			September 30, 2019
Estimated increase (decrease) to earnings due to revenue adjustments resulting from purchase accounting	$	—	$	(1,781	)	$	(4,823	)	$	(5,592	)
Estimated increase (decrease) to earnings to adjust for transaction related costs incurred in connection with the Mergers	$	1,187	$	—		$	31,835		$	(21,918	)
Estimated increase (decrease) to earnings to adjust for stock-based compensation expense for TiVo equity awards	$	—	$	524		$	3,436		$	(1,260	)
Estimated increase (decrease) to earnings to adjust for severance and retention costs incurred in connection with the Mergers	$	3,591	$	(1,710	)	$	10,254		$	(13,696	)
Estimated increase (decrease) to earnings to reflect payoff of historical debt and new debt financing in connection with the Mergers	$	1,116	$	(3,693	)	$	21,867		$	(20,401	)
Estimated increase (decrease) to earnings due to pro forma adjustments for income taxes (1)(2)	$	117	$	(19,884	)	$	16,374		$	(39,161	)

(1)

For the three and nine months ended September 30, 2020, the pro forma tax adjustments relate primarily to the alignment of TiVo’s methodology for interim period accounting for income taxes to Xperi's methodology, as well as the recognition by TiVo of a refund request of South Korean withholding taxes prior to the Mergers in the quarter ended June 30, 2020.

(2)

For the three and nine months ended September 30, 2019, the adjustment relates primarily to the alignment of TiVo's methodology for interim period accounting for income taxes to Xperi's methodology, as well as the assumption that the combined company placed a valuation allowance on its Federal and state DTAs prior to 2019.

The unaudited supplemental pro forma information above does not include any cost saving synergies from operating efficiencies.

Goodwill and Identified Intangible Assets

9 Months Ended

Sep. 30, 2020

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Identified Intangible Assets

NOTE 8 – GOODWILL AND IDENTIFIED INTANGIBLE ASSETS

Goodwill allocated to the reportable segments and changes in the carrying amount of goodwill by reportable segment were as follows (in thousands):

	Product		IP Licensing		Total
December 31, 2019	$	378,084	$	7,700	$	385,784
Goodwill acquired through the Mergers (1)		146,061		315,068		461,129
September 30, 2020	$	524,145	$	322,768	$	846,913

(1)

In connection with the TiVo Merger, the Company recorded $461.1 million of goodwill, representing the preliminary fair value as of the effective date of the Mergers. See “Note 7 – Business Combination” for additional details.

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

During the third quarter of 2020, the COVID-19 pandemic continued to have a significant and negative impact on business and economic activities in the U.S and around the world. The resulting global economic downturn has negatively impacted, and is expected to continue to negatively impact, the Company’s consolidated financial results for the remainder of 2020 and into 2021. Due to continued reduction in demand in certain markets and industries, including the automotive market, as well as declines in the Company’s share price, the Company’s management concluded there were indicators of potential goodwill impairment. The Company proceeded with a quantitative interim goodwill impairment test as of September 30, 2020. Based on the quantitative assessment, the Company concluded that the fair value of the reporting units exceeded the carrying amount for both the Product and IP Licensing reporting units. As a result, no goodwill impairment charges were recognized in the three months ended September 30, 2020.

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

	Average	September 30, 2020							December 31, 2019
	Life (Years)	Gross Assets		Accumulated Amortization			Net		Gross Assets		Accumulated Amortization			Net
Finite-lived intangible assets
Acquired patents / core technology (1)	3-15	$	609,085	$	(154,418	)	$	454,667	$	151,184	$	(135,952	)	$	15,232
Existing technology / content database (2) (3)	5-10		247,959		(159,430	)		88,529		206,878		(130,890	)		75,988
Customer contracts and related relationships (4)	3-9		650,079		(229,450	)		420,629		291,769		(174,741	)		117,028
Trademarks/trade name	4-10		40,083		(19,786	)		20,297		40,083		(16,056	)		24,027
Non-competition agreements	1		2,231		(2,231	)		—		2,231		(2,231	)		—
Total finite-lived intangible assets			1,549,437		(565,315	)		984,122		692,145		(459,870	)		232,275
Indefinite-lived intangible assets
TiVo Tradename/trademarks (5)	N/A		21,400		—			21,400		—		—			—
Total intangible assets		$	1,570,837	$	(565,315	)	$	1,005,522	$	692,145	$	(459,870	)	$	232,275

(1)

In June 2020, $457.4 million of patents was acquired through the Mergers. See “Note 7 – Business Combination.”

(2)

In June 2020, $34.8 million of existing (developed) technology was acquired through the Mergers. See “Note 7 – Business Combination.”

(3)

In June 2020, $6.2 million of content database was acquired through the Mergers. See “Note 7 – Business Combination.”

(4)

In June 2020, $358.2 million of customer contracts and related relationships was acquired through the Mergers. See “Note 7 – Business Combination.”

(5)

In June 2020, $21.4 million of TiVo Tradename/trademarks was acquired through the Mergers. See “Note 7 – Business Combination.”

As of September 30, 2020, the estimated future amortization expense of total finite-lived intangible assets was as follows (in thousands):

2020 (remaining 3 months)	$	50,257
2021		195,771
2022		147,332
2023		136,452
2024		97,647
Thereafter		356,663
	$	984,122

Debt

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Debt

NOTE 9 – DEBT

The outstanding amounts of debt were as follows (in thousands):

	September 30, 2020			December 31, 2019
2020 Term B Loan Facility	$	1,036,875		$	—
2021 Convertible Notes		48			—
2018 Amended Term B Loan		—			344,000
Unamortized debt issuance costs		(36,689	)		(9,321	)
		1,000,234			334,679
Less: current portion, net of debt issuance costs		(43,704	)		—
Total long-term debt, net of current portion	$	956,530		$	334,679

2020 Term B Loan Facility

On June 1, 2020, in connection with the consummation of the Mergers with TiVo, the Company entered into a Credit Agreement (the “2020 Credit Agreement”) by and among the Company, the lenders party thereto and Bank of America, N.A.,

as administrative agent and collateral agent. The 2020 Credit Agreement provides for a five-year senior secured term loan B facility in an aggregate principal amount of $1,050 million (the “2020 Term B Loan Facility”). The interest rate applicable to loans outstanding under the 2020 Term B Loan Facility is equal to, at the Company’s option, either (i) a base rate plus a margin of 3.00% per annum or (ii) LIBOR plus a margin of 4.00% per annum. Commencing on September 30, 2020, the 2020 Term B Loan Facility will amortize in equal quarterly installments in aggregate quarterly amounts equal to (i) with respect to repayments occurring on or prior to June 1, 2023, 1.25% of the original principal amount of the 2020 Term B Loan Facility and (ii) with respect to repayments occurring after June 1, 2023 and prior to June 1, 2025, 1.875% of the original principal amount of the 2020 Term B Loan Facility, with the balance payable on the maturity date of the 2020 Term B Loan Facility (in each case subject to adjustment for prepayments). The 2020 Term B Loan Facility will mature on June 1, 2025. Upon the closing of the 2020 Credit Agreement, the Company borrowed $1,050 million under the 2020 Term B Loan Facility. Net proceeds were used on June 1, 2020, together with cash and cash equivalents, to refinance the existing indebtedness of the combined Company (the “Debt Financing”), including paydown of the TiVo 2019 Term Loan of $734.6 million. See “Note 7 – Business Combination” for additional information relating to the Mergers. Additionally, debt issuance costs of approximately $39.7 million were incurred and capitalized in connection with the 2020 Term B Loan Facility in June 2020.

The obligations under the 2020 Credit Agreement are guaranteed by Xperi, TiVo and certain other of the Company’s wholly-owned material domestic subsidiaries (collectively, the “Guarantors”) pursuant to the Guaranty, dated as of June 1, 2020 (the “Guaranty”), among Xperi, TiVo, the other Guarantors party thereto and Bank of America, N.A., as administrative agent. The obligations under the 2020 Credit Agreement are secured by a lien on substantially all of the assets of the Company and the Guarantors pursuant to the Security Agreement, dated as of June 1, 2020 (the “Security Agreement”), among the Company, Xperi, TiVo, the other pledgors party thereto and Bank of America, N.A., as collateral agent.

The 2020 Credit Agreement contains customary events of default, upon the occurrence of which, after any applicable grace period, the lenders will have the ability to accelerate all outstanding loans thereunder. The 2020 Credit Agreement also contains customary representations and warranties and affirmative and negative covenants that, among other things, restrict the ability of the Company and its subsidiaries to create or incur certain liens, incur or guarantee additional indebtedness, merge or consolidate with other companies, transfer or sell assets and make restricted payments. These covenants are subject to a number of limitations and exceptions set forth in the Credit Agreement. The Company was in compliance with all requirements as of September 30, 2020.

2018 Amended Term B Loan

On December 1, 2016, in connection with the consummation of the acquisition of DTS, the Company entered into a Credit Agreement (the “Credit Agreement”) by and among the Company, Royal Bank of Canada, as administrative agent and collateral agent, and the lenders party thereto. The Credit Agreement provided for a $600.0 million seven-year term B loan facility (the “Term B Loan Facility”) which matures on November 30, 2023. Upon the closing of the Credit Agreement, the Company borrowed $600.0 million under the Term B Loan facility. Net proceeds were used on December 1, 2016, together with cash and cash equivalents, to finance the acquisition of DTS.

On January 23, 2018, the Company and the loan parties entered into an amendment to the Credit Agreement (the “Amendment”). In connection with the Amendment, the Company made a voluntary prepayment of $100.0 million of the term loan outstanding under the Credit Agreement using cash on hand. The Amendment provided for, among other things, (i) a replacement of the outstanding initial term loan with the new tranche term B-1 loan (the “2018 Amended Term B Loan”) in a principal amount of $494.0 million, (ii) a reduction of the interest rate margin applicable to such loan to (x) in the case of Eurodollar loans, 2.50% per annum and (y) in the case of base rate loans, 1.50% per annum, (iii) a prepayment premium of 1.00% in connection with any repricing transaction with respect to the 2018 Amended Term B Loan within six months of the closing date of the Amendment, and (iv) certain amendments to provide the Company with additional flexibility under the covenant governing restricted payments. Using cash on hand, the Company made three voluntary prepayments totaling $150.0 million during 2019. On June 1, 2020, the entire remaining balance of $344.0 million was paid off by using the proceeds from the 2020 Term B Loan Facility in connection with the Mergers. As a result of the refinancing transaction, the Company recorded a loss on early extinguishment of debt of $8.3 million, which consisted of unamortized debt issuance costs, in its Condensed Consolidated Statements of Operations during the second quarter of 2020.

2019 Term Loan Facility

In connection with the Mergers, the Company paid off the outstanding balance under the TiVo’s 2019 Term Loan. The 2019 Term Loan Facility Agreement was entered into on November 22, 2019 between TiVo, as borrower, and the lenders party thereto and HPS Investment Partners, LLC as administrative agent and collateral agent. Under the 2019 Term Loan, TiVo borrowed $715.0 million, which was scheduled to mature on November 22, 2024.

Under the 2019 Term Loan Facility Agreement, TiVo was required to pay a 3.0% prepayment premium if the loan was prepaid on or prior to November 22, 2020. Further, under the same Loan Facility Agreement, the Mergers triggered certain change of control conditions that constituted an event of default, thus requiring the debt to be repaid immediately following the consummation of the Mergers. Using the proceeds from the aforementioned 2020 Term B Loan Facility, the Company, on June 1, 2020, made a full repayment of the 2019 Term Loan along with the prepayment penalty for a total payoff amount of $734.6 million.

2021 Convertible Notes

Upon consummation of the TiVo Merger on June 1, 2020, the Company assumed $48.0 thousand of Convertible Senior Notes that were issued by TiVo Solutions Inc. (“TiVo Solutions”) in September 2014 and mature October 1, 2021 (the “2021 Convertible Notes”). The 2021 Convertible Notes bear interest at an annual rate of 2.0%, payable semi-annually in arrears on April 1 and October 1 of each year.

Interest Expense and Expected Principal Payments

At September 30, 2020, $1,036.9 million in total debt was outstanding with an interest rate, including the amortization of debt issuance costs, of 5.1%. Interest is payable monthly. Interest expense was $13.4 million and $24.6 million for the three and nine months ended September 30, 2020, respectively. Interest expense was $5.5 million and $18.4 million for the three and nine months ended September 30, 2019, respectively. Amortized debt issuance costs, which were included in interest expense, amounted to $2.3 million and $4.0 million for the three and nine months ended September 30, 2020, respectively, and $0.6 million and $1.9 million for the three and nine months ended September 30, 2019, respectively.

As of September 30, 2020, future minimum principal payments for long-term debt are summarized as follows (in thousands):

2020 (remaining 3 months)	$	13,125
2021		52,548
2022		52,500
2023		72,188
2024		78,750
Thereafter		767,812
Total	$	1,036,923

Additional cash payments, as outlined in the 2020 Credit Agreement, must be made on an annual basis beginning March 31, 2022 based on certain leverage ratios and excess cash flow generated for the immediately preceding fiscal year.

Net Loss Per Share

9 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

Net Loss Per Share

NOTE 10 – NET LOSS PER SHARE

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

	Three Months Ended				Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Denominator:
Weighted average shares of common stock outstanding		107,499		49,459		75,441		49,036
Less: shares of restricted stock subject to repurchase		—		—		—		—
Total common shares-basic		107,499		49,459		75,441		49,036
Effect of dilutive securities:
Options		—		—		—		—
Restricted stock awards and units		—		—		—		—
Total common shares-diluted		107,499		49,459		75,441		49,036

Basic net income (loss) per share is computed using the weighted average number of shares of common stock outstanding during the period, excluding any unvested restricted stock awards that are subject to repurchase. Diluted net income (loss) per share is computed using the treasury stock method to calculate the weighted average number of shares of common stock and, if dilutive, potential common shares outstanding during the period. Potentially dilutive common shares include unvested restricted stock awards and units and incremental common shares issuable upon the exercise of stock options, less shares

repurchased from assumed proceeds. The assumed proceeds calculation includes actual proceeds to be received from the employee upon exercise and the average unrecognized stock compensation cost during the period.

For the three and nine months ended September 30, 2020, there was no difference in the weighted average number of shares of common stock used for the calculation of basic and diluted loss per share as the effect of all potentially dilutive shares outstanding was anti-dilutive. A total of 5.6 million and 4.0 million shares, subject to stock options and restricted stock awards and units, were excluded from the computation of diluted net loss per share for the three and nine months ended September 30, 2020, respectively, because including them would have been anti-dilutive.

For the three and nine months ended September 30, 2019, there was no difference in the weighted average number of shares of common stock used for the calculation of basic and diluted loss per share as the effect of all potentially dilutive shares outstanding was anti-dilutive. A total of 2.5 million and 1.5 million shares, subject to stock options and restricted stock awards and units, were excluded from the computation of diluted net loss per share for the three and nine months ended September 30, 2019, respectively, because including them would have been anti-dilutive.

Stockholders' Equity

9 Months Ended

Sep. 30, 2020

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stockholders' Equity

NOTE 11 – STOCKHOLDERS’ EQUITY

As more fully described in Note 7, Xperi and TiVo completed the Mergers on June 1, 2020 to form Xperi Holding Corporation. Upon completion of the Mergers, each share of common stock of Xperi was converted into the right to receive one fully paid and non-assessable share of Company Common Stock. Further upon completion of the Mergers, each share of TiVo Common Stock was converted into the right to receive 0.455 fully paid and non-assessable shares of the Company Common Stock (the “Exchange Ratio”), in addition to cash in lieu of any fractional shares of the Company Common Stock. Following the Mergers, Xperi Common Stock and TiVo Common Stock were delisted from Nasdaq. Since June 2, 2020, the shares of Company Common Stock have been listed for trading on Nasdaq under ticker symbol “XPER.”

As provided in the Merger Agreement, at the effective time of the Mergers, (i) all options and restricted stock unit awards relating to shares of Xperi Common Stock outstanding immediately prior to the effective time of the Mergers were generally automatically converted into options and restricted stock unit awards respectively, relating to shares of the Company Common Stock on a one-for-one basis and otherwise generally on the same terms and conditions (including vesting exercisability and/or settlement requirements) as applied to such options and awards under the applicable plans and award agreements immediately prior to the effective time of the Mergers, and (ii) all options and restricted stock unit awards relating to shares of TiVo Common Stock that were outstanding immediately prior to the effective time of the Mergers were generally automatically converted into options and restricted stock unit awards, respectively, relating to shares of the Company Common Stock after giving effect to appropriate adjustments to reflect the Mergers (including the Exchange Ratio) and otherwise generally on the same terms and conditions (including vesting exercisability and/or settlement requirements) as applied to such options and awards under the applicable plans and award agreements immediately prior to the effective time of the Mergers.

Equity Incentive Plans

Prior to the Merger Date, the Company had implemented and granted equity awards under the Xperi Corporation Seventh Amended and Restated 2003 Equity Incentive Plan. As of the effective date of the Mergers, no future grants will be made under the plan.

The 2020 EIP

In connection with the Mergers and immediately prior to June 1, 2020, the Company adopted the Xperi Holding Corporation 2020 Equity Incentive Plan (the “2020 EIP”).

Under the 2020 EIP, the Company may grant equity-based awards to employees, non-employee directors, and consultants for services rendered to the Company (or any parent or subsidiary) in the form of stock options, stock awards, restricted stock awards, restricted stock units, stock appreciation rights, dividend equivalents and performance awards (or any combination thereof). A total of 8,000,000 shares have been reserved for issuance under the 2020 EIP provided that each share issued pursuant to “full value” awards (i.e., stock awards, restricted stock awards, restricted stock units, performance awards and dividend equivalents) are counted against shares available for issuance under the 2020 EIP on a 1.5 to 1 ratio.

The 2020 EIP provides for option grants designed as either incentive stock options or nonstatutory options. Options generally are granted with an exercise price not less than the value of the common stock on the grant date and have a term of ten years from the date of grant and vest over a four-year period. The vesting criteria for restricted stock awards and restricted stock units is generally the passage of time or meeting certain performance-based objectives, and continued employment through the

vesting period generally over four years for time-based awards. As of September 30, 2020, there were 3.2 million shares reserved for future grant under the 2020 EIP.

Assumed Plans

On June 1, 2020, the Company assumed all then-outstanding stock options, awards, and shares available and reserved for issuance under all legacy Equity Incentive Plans of TiVo (collectively, the “Assumed Plans”). Stock options assumed from the Assumed Plans generally have vesting periods of four years and a contractual term of seven years. Awards of restricted stock and restricted stock units assumed from the Assumed Plans are generally subject to a four year vesting period. The number of shares subject to stock options and restricted stock unit awards outstanding under these plans are included in the tables below. Shares reserved under the Assumed Plans will be available for future grants. As of September 30, 2020, there were 7.4 million shares reserved for future grants under the Assumed Plans.

A summary of the stock option activity is presented below (in thousands, except per share amounts):

	Options Outstanding
	Number of Shares Subject to Options			Weighted Average Exercise Price Per Share
Balance at December 31, 2019		605		$	26.68
Options granted		—			—
Options assumed		175		$	49.24
Options exercised		—			—
Options canceled / forfeited / expired		(59	)	$	40.91
Balance at September 30, 2020		721		$	31.34

Restricted Stock Awards and Units

Information with respect to outstanding restricted stock awards and units as of September 30, 2020 is as follows (in thousands, except per share amounts):

	Restricted Stock and Restricted Stock Units
	Number of Shares Subject to Time- based Vesting			Number of Shares Subject to Performance- based Vesting			Total Number of Shares			Weighted Average Grant Date Fair Value Per Share
Balance at December 31, 2019		2,371			554			2,925		$	25.99
Awards and units granted		3,222			994			4,216		$	13.77
Awards and units assumed		2,185			253			2,438		$	13.99
Awards converted		107			(107	)		—		$	29.79
Awards and units vested / earned		(1,618	)		(390	)		(2,008	)	$	20.78
Awards and units canceled / forfeited		(414	)		(243	)		(657	)	$	21.15
Balance at September 30, 2020		5,853			1,061			6,914		$	16.28

Performance Awards and Units

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

Employee Stock Purchase Plans

Prior to the Mergers, the Company had implemented the Xperi Corporation 2003 Employee Stock Purchase Plan and the International Employee Stock Purchase Plan, both of which were terminated immediately prior to the effective time of the Mergers.

In connection with the Mergers and immediately prior to June 1, 2020, the Company adopted the Xperi Holding Corporation 2020 Employee Stock Purchase Plan (the “2020 ESPP”). The 2020 ESPP is implemented through consecutive overlapping 24-month offering periods, each of which is comprised of four six-month purchase periods. The first offering period commenced on September 1, 2020 and will end on August 31, 2022. Each subsequent offering period under the 2020 ESPP will be twenty-four (24) months long and will commence on each September 1 and March 1 during the term of the plan. Participants may contribute up to 100% of their base earnings and commissions through payroll deductions, and the accumulated deductions will be applied to the purchase of shares on each semi-annual purchase date. The purchase price per share will equal 85% of the fair market value per share on the start date of the offering period or, if lower, 85% of the fair market value per share on the semi-annual purchase date.

An eligible employee’s right to buy the Company’s common stock under the 2020 ESPP may not accrue at a rate in excess of $25,000 of the fair market value of such shares per calendar year for each calendar year of an offering period. If the fair market value per share of the Company’s common stock on any purchase date during an offering period is less than the fair market value per share on the start date of the 24-month offering period, then that offering period will automatically terminate and a new 24-month offering period will begin on the next business day. All participants in the terminated offering will be transferred to the new offering period.

As of September 30, 2020, there were 2.0 million shares reserved for grant under the Company’s 2020 ESPP.

Stock Repurchase Programs

Following the termination of Xperi’s prior stock repurchase program after the closing of the Mergers, on June 12, 2020 the Board of Directors (the “Board”) of the Company authorized a new stock repurchase program providing for the repurchase of up to $150.0 million of the Company's Common Stock dependent on market conditions, share prices and other factors. As of September 30, 2020, the Company has repurchased a total of approximately 3.9 million shares of common stock, since inception of the plan, at an average price of $12.81 per share for a total cost of $50.1 million. The shares repurchased are recorded as treasury stock and are accounted for under the cost method. No expiration date has been specified for this plan. As of September 30, 2020, the total remaining amount available for repurchase was $99.9 million. The Company plans to continue to execute authorized repurchases from time to time under the plan.

In connection with the Mergers, all shares repurchased by the Company as of June 1, 2020 and recorded as treasury stock were canceled and retired. The Company accounts for stock repurchases using the cost method and records retirement of treasury stock as a reduction of the cumulative treasury stock paid-in capital balance. Once the cumulative balance is reduced to zero, any remaining difference resulting from the retirement of treasury stock is recorded as a reduction of retained earnings.

The Company issues restricted stock units as part of the equity incentive plans described above. For the majority of restricted awards, shares are withheld to satisfy required withholding taxes at the vesting date. Shares withheld to satisfy required withholding taxes in connection with the vesting of restricted awards are treated as common stock repurchases in the condensed consolidated financial statements because they reduce the number of shares that would have been issued on vesting. However, these withheld shares are not included in common stock repurchases under the Company's authorized share repurchase plan. During the three months ended September 30, 2020 and 2019, the Company withheld 0.2 million and 0.1 million shares of common stock to satisfy $3.3 million and $0.1 million of required withholding taxes, respectively. During the nine months ended September 30, 2020 and 2019, the Company withheld 0.6 million and 0.2 million shares of common stock to satisfy $9.2 million and $4.3 million of required withholding taxes, respectively.

Stock-Based Compensation Expense

9 Months Ended

Sep. 30, 2020

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation Expense

NOTE 12 – STOCK-BASED COMPENSATION EXPENSE

The effect of recording stock-based compensation (“SBC”) expense for the three and nine months ended September 30, 2020 and 2019 is as follows (in thousands):

	Three Months Ended						Nine Months Ended
	September 30, 2020			September 30, 2019			September 30, 2020			September 30, 2019
Cost of licensing, services and software revenue	$	258		$	—		$	332		$	—
Research, development and other related costs		3,580			3,544			9,454			10,293
Selling, general and administrative		6,319			4,444			16,828			12,539
Total stock-based compensation expense		10,157			7,988			26,614			22,832
Tax effect on stock-based compensation expense		(55	)		(1,269	)		(1,550	)		(3,654	)
Net effect on net loss	$	10,102		$	6,719		$	25,064		$	19,178

In connection with the Mergers, the Company assumed unvested TiVo equity awards with a fair value of $34.1 million, of which $22.0 million related to post-acquisition services. For the three and nine months ended September 30, 2020, the Company recognized $1.9 million and $4.1 million of SBC expense, respectively, associated with the unvested TiVo equity awards assumed. See “Note 7 – Business Combination” for additional detail.

Stock-based compensation expense categorized by various equity components for the three and nine months ended September 30, 2020 and 2019 is summarized in the table below (in thousands):

	Three Months Ended				Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Restricted stock awards and units	$	9,734	$	7,362	$	25,175	$	21,013
Employee stock purchase plan		401		577		1,387		1,638
Employee stock options		22		49		52		181
Total stock-based compensation expense	$	10,157	$	7,988	$	26,614	$	22,832

There were no options granted in the three and nine months ended September 30, 2020 and 2019.

The following assumptions were used to value the restricted stock units subject to market conditions granted in the three months ended September 30, 2020:

	July 2020
Expected life (years)		3.0
Risk-free interest rate		0.16	%
Dividend yield		1.4	%
Expected volatility		51.3	%

Previous ESPP grants occurred in February 2020 and August 2019. Pursuant to the Merger Agreement, on May 22, 2020, the Company granted its final ESPP purchases to the eligible employees under the legacy ESPP program before terminating the plan prior to the consummation of the Mergers. As stated in Note 11, the first offering period of the 2020 ESPP commenced on September 1, 2020.

The following assumptions were used to value the ESPP shares for these grants:

	September 2020			February 2020			August 2019			February 2019
Expected life (years)		2.0			2.0			2.0			2.0
Risk-free interest rate		0.13	%		1.4	%		1.7	%		2.5	%
Dividend yield		1.4	%		4.0	%		3.5	%		5.4	%
Expected volatility		57.5	%		45.8	%		51.7	%		53.4	%

Income Taxes

9 Months Ended

Sep. 30, 2020

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 13 – INCOME TAXES

For the three months ended September 30, 2020, the Company recorded an income tax expense of $0.5 million on a pretax loss of $30.1 million and for the nine months ended September 30, 2020, the Company recorded an income tax benefit of $6.8 million on a pretax loss of $41.6 million, which resulted in an effective tax rate of 16.3% for the nine months ended September 30, 2020. The tax benefit of $6.8 million is comprised of a $12.2 million tax benefit related to the five month pre-merger period and a tax expense of $5.4 million related to the four month post-merger period. The five month pre-merger income tax benefit of $12.2 million was primarily related to a net decrease in valuation allowance as a result of the Mergers, deduction from foreign-derived intangible income, releases of unrecognized tax benefits due to the lapse of applicable statutes of limitation, and deduction from transaction expenses, offset by tax expense from operating income, shortfalls from stock-based compensation, certain non-deductible expenses, and unrealized foreign exchange losses from the prior period South Korea refund claim. The four month post-merger income tax expense of $5.4 million was primarily related to income tax expense from foreign operations, foreign withholding taxes and U.S. federal minimum tax offset by unrealized foreign exchange gains from the current period South Korea refund claim.

For the three months ended September 30, 2019, the Company recorded an income tax benefit of $14.6 million on a pretax loss of $30.6 million and for the nine months ended September 30, 2019, the Company recorded an income tax benefit of $27.1 million on a pretax loss of $74.7 million, which resulted in an effective tax rate of 36.3%. The income tax benefit for the three and nine months ended September 30, 2019 was primarily related to tax benefit from operating losses and the realization of certain tax credits, offset by foreign withholding taxes, certain non-deductible expenses, and shortfalls from stock-based compensation.

The Company's provision for income taxes is based on its worldwide estimated annualized effective tax rate, except for jurisdictions for which a loss is expected for the year and no benefit can be realized for those losses, and the tax effect of discrete items occurring during the period. The Company has applied separate effective tax rates to its pre- and post-merger activities; the Company’s post-merger effective tax rate is based on its worldwide estimated tax rate for the seven-month period ended December 31, 2020. The tax for jurisdictions for which a loss is expected and no benefit can be realized for the year is computed using a separate effective tax rate. The decrease in income tax benefit for the nine months ended September 30, 2020 as compared to the prior year is largely attributable to a decrease in operating losses, increase in valuation allowance in the post-merger period, foreign withholding taxes, and U.S. federal minimum taxes, partially offset by tax benefits from the release of unrecognized tax benefits due to the lapse of applicable statute of limitation and a decrease in valuation allowance as a result of the Mergers.

During the fourth quarter of 2019, the Company filed a refund claim for foreign taxes previously withheld from licensees in South Korea based on recent court rulings in South Korea and other business factors. These previously withheld foreign taxes were claimed as a foreign tax credit in the U.S. As a result of the Company’s refund claim, the Company recorded a non-current income tax receivable of $65.2 million in income tax receivable, an unrecognized tax benefit of $48.2 million in other long-term liabilities, and a reduction in deferred tax assets of $17.0 million. The Company anticipates filing a refund claim for the 2020 year-to-date South Korean withholding taxes.

During the first nine months of 2020, an additional non-current income tax receivable of $13.7 million, an unrecognized tax benefit of $8.4 million in other long-term liabilities, and a reduction in deferred tax assets of $5.0 million with an offset to valuation allowance were recorded in connection with the South Korea refund claim matter. As part of the Company’s acquisition of TiVo, the Company recorded a year-to-date non-current income tax receivable of $31.9 million and a reduction in deferred tax assets of $15.5 million with a corresponding offset to valuation allowance, with the residual recorded to goodwill. At September 30, 2020, the Company had recorded a cumulative unrealized foreign exchange loss of approximately $1.2 million as a reduction in non-current income tax receivable.

The impact on the Company’s pre-merger deferred tax assets and liabilities caused by the Mergers is recorded in the Company’s financial statements outside of acquisition accounting. Such impact is not a part of the fair value of the assets acquired and liabilities assumed. The Company released its valuation allowance which was previously applied to certain deferred tax assets. As a result, the Company recorded an income tax benefit of $19.8 million for the pre-merger period. Due to the composition of TiVo’s Federal deferred tax assets net of valuation allowance and deferred tax liabilities, the combined Company’s Federal deferred tax assets net of deferred tax liabilities are fully offset by a valuation allowance. The Company has adopted the policy of using a tax-law ordering approach when determining the extent to which the Company’s, or the acquired company’s deferred tax liabilities are able to be used as sources of income used to recognize the Company’s, or the acquired company’s deferred tax assets.

As of September 30, 2020, gross unrecognized tax benefits were $181.7 million, of which $97.3 million would affect the effective tax rate if recognized. As of September 30, 2019, unrecognized tax benefits were $34.1 million (which was included in long-term deferred tax and other long-term liabilities on the Condensed Consolidated Balance Sheets), of which $21.3

million would affect the effective tax rate if recognized. The Company is unable to reasonably estimate the timing of the long-term payments or the amount by which the liability will increase or decrease.

It is the Company's policy to classify accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes. For the three and nine months ended September 30, 2020 and 2019, the Company recognized an insignificant amount of interest and penalties related to unrecognized tax benefits. Accrued interest and penalties were $2.2 million and $1.2 million as of September 30, 2020 and December 31, 2019, respectively. It is the Company’s policy not to consider nonrecognized subsequent events in the calculation of its worldwide estimated annualized effective tax rate nor in its assessment of the recoverability of deferred tax assets. The Company has therefore not considered the event discussed in “Note 17 – Subsequent Events” when determining its worldwide estimated annualized effective tax rate nor in its assessment of the recoverability of deferred tax assets as of September 30, 2020.

At September 30, 2020, the Company’s 2015 through 2018 tax years were generally open and subject to potential examination in various jurisdictions. Earlier tax years for the Company and its subsidiaries are also open in certain jurisdictions which are currently subject to examination. In addition, in the U.S., any net operating losses or credits that were generated in prior years but not yet fully utilized in a year that is closed under the statute of limitations may also be subject to examination. The Company has submitted a withholding tax refund claim with the South Korean authorities and the final outcome is not anticipated to be settled within the next twelve months.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Leases

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Leases

NOTE 14 – LEASES

The Company leases office and research facilities, data centers and office equipment under operating leases which expire through 2029. The Company’s leases have remaining lease terms of one year to nine years, some of which may include options to extend the leases for five years or longer, and some of which may include options to terminate the leases within the next 6 years or less. Leases with an initial term of 12 months or less are not recorded on the balance sheets; expense for these leases is recognized on a straight-line basis over the lease term. Variable lease payments are expensed as incurred and are not included within the lease liability and right-of-use assets calculation. As a practical expedient, the Company elected, for all office and facility leases, not to separate nonlease components (e.g., common-area maintenance costs) from lease components (e.g., fixed payments including rent) and instead to account for each separate lease component and its associated non-lease components as a single lease component. As most of the leases do not provide an implicit rate, the Company generally, for purposes of discounting lease payments, uses its incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date.

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

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

	Three Months Ended					Nine Months Ended
	September 30, 2020			September 30, 2019		September 30, 2020			September 30, 2019
Fixed lease cost ⁽¹⁾	$	6,184		$	1,713	$	11,340		$	5,138
Variable lease cost		1,374			278		2,315			859
Less: sublease income		(2,452	)		—		(3,295	)		—
Total operating lease cost	$	5,106		$	1,991	$	10,360		$	5,997

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

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

	Three Months Ended,				Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	6,041	$	1,482	$	10,767	$	4,498
ROU assets obtained in exchange for new lease liabilities:
Operating leases	$	461	$	361	$	4,312	$	5,136

	September 30, 2020			December 31, 2019
Weighted-average remaining lease term (years):
Operating leases		5.4			4.6
Weighted-average discount rate:
Operating leases		5.2	%		5.7	%

Future minimum lease payments and related lease liabilities as of September 30, 2020 were as follows (in thousands):

	Operating Lease Payments (1)			Sublease Income			Net Operating Lease Payments
2020 (remaining 3 months)	$	4,774		$	(1,647	)	$	3,127
2021		22,184			(6,257	)		15,927
2022		18,105			(6,117	)		11,988
2023		16,169			(6,231	)		9,938
2024		15,405			(6,293	)		9,112
Thereafter		23,451			(7,214	)		16,237
Total lease payments		100,088			(33,759	)		66,329
Less: imputed interest		(13,048	)		—			(13,048	)
Present value of lease liabilities:	$	87,040		$	(33,759	)	$	53,281

Less: current obligations under leases (accrued liabilities)		17,577
Noncurrent operating lease liabilities	$	69,463

(1) Future minimum lease payments exclude short-term leases as well as payments to landlords for variable common area maintenance, insurance and real estate taxes.

As of December 31, 2019, future minimum lease payments were as follows (in thousands):

	Operating Leases
2020	$	6,387
2021		4,558
2022		3,259
2023		3,235
2024		2,619
Thereafter		1,977
Total lease payments		22,035
Less: imputed interest		(2,776	)
Present value of lease liabilities:	$	19,259

Less: current obligations under leases (accrued liabilities)		5,845
Noncurrent operating lease liabilities	$	13,414

Commitments and Contingencies

9 Months Ended

Sep. 30, 2020

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

NOTE 15 – COMMITMENTS AND CONTINGENCIES

Inventory Purchase Commitment

The Company uses contract manufacturers to provide manufacturing services for its products. During the normal course of business, in order to manage manufacturing lead times and help ensure adequate supply, the Company enters into agreements with its contract manufacturer that either allow them to procure inventory based on criteria as defined by the Company or that establish the parameters defining the Company’s requirements. A significant portion of the Company’s purchase commitments arising from these agreements consist of firm, non-cancelable and unconditional purchase commitments. In certain instances, these agreements allow the Company the option to cancel, reschedule or adjust the Company’s requirements based on its business needs prior to firm orders being placed. As of September 30, 2020, the Company had total purchase commitments for inventory of $6.8 million, of which $1.4 million was accrued in the Condensed Consolidated Balance Sheet.

Other Purchase Obligations

On December 31, 2019, TiVo entered into a contract requiring the Company to generate a minimum number of Qualified Referred Subscribers (as defined in the contract) over a 30 month period. In the event that the aggregate number of Qualified Referred Subscribers generated by the Company within the specified time period is less than the minimum guaranteed subscribers, the Company is required to pay an amount equal to the shortfall between the number of Qualified Referred Subscribers generated by the Company and the required minimum multiplied by a per Qualified Referred Subscribers fee, up to a maximum of $5.0 million. As of September 30, 2020, $0.1 million was accrued in the Condensed Consolidated Balance Sheets related to this contract.

Under certain other contractual arrangements, the Company may be obligated to pay up to approximately $49.6 million, which is mostly related to unconditional purchase obligations to service providers and certain contingent payments to partners. The majority of these commitments and contingent payments are due within four years.

Indemnifications

In the normal course of business, the Company provides indemnifications of varying scopes and amounts to certain of its licensees, customers, and business partners against claims made by third parties arising from the use of the Company's products, intellectual property, services or technologies. The Company cannot reasonably estimate the possible range of losses that may be incurred pursuant to its indemnification obligations, if any. Variables affecting any such assessment include, but are not limited to: the nature of the claim asserted; the relative merits of the claim; the financial ability of the party suing the indemnified party to engage in protracted litigation; the number of parties seeking indemnification; the nature and amount of damages claimed by the party suing the indemnified party; and the willingness of such party to engage in settlement negotiations. To date, no such claims have been filed against the Company and no liability has been recorded in the Company’s financial statements.

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

Contingencies

At each reporting period, the Company evaluates whether or not a potential loss amount or a potential range of losses is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. The Company is currently unable to predict the final outcome of lawsuits to which it is a party and therefore cannot determine the likelihood of loss nor estimate a range of possible losses. An adverse decision in any of these proceedings could significantly harm the Company’s business and consolidated financial position, results of operations or cash flows.

The Company and its subsidiaries are involved in litigation matters and claims in the normal course of business. In the past, the Company and its subsidiaries have litigated to enforce their respective patents and other intellectual property rights, to enforce the terms of license agreements, to protect trade secrets, to determine the validity and scope of the proprietary rights of others and to defend itself or its customers against claims of infringement or invalidity. The Company expects it or its subsidiaries will

be involved in similar legal proceedings in the future, including proceedings regarding infringement of its patents, and proceedings to ensure proper and full payment of royalties by licensees under the terms of its license agreements.

The existing and any future legal actions may harm the Company’s business. For example, legal actions could cause an existing licensee or strategic partner to cease making royalty or other payments to the Company, or to challenge the validity and enforceability of patents owned by the Company’s subsidiaries or the scope of license agreements with the Company’s subsidiaries, or could significantly damage the Company’s relationship with such licensee or strategic partner and, as a result, prevent the adoption of the Company’s other technologies by such licensee or strategic partner. Litigation could also severely disrupt or shut down the business operations of licensees or strategic partners of the Company’s subsidiaries, which in turn would significantly harm ongoing relations with them and cause the Company to lose royalty revenue.

The costs associated with legal proceedings are typically high, relatively unpredictable, and not completely within the Company’s control. These costs may be materially higher than expected, which could adversely affect the Company’s operating results and lead to volatility in the price of its common stock. Whether or not determined in the Company’s favor or ultimately settled, litigation diverts managerial, technical, legal, and financial resources from the Company’s business operations. Furthermore, an adverse decision in any of these legal actions could result in a loss of the Company’s proprietary rights, subject the Company to significant liabilities, require the Company to seek licenses from others, limit the value of the Company’s licensed technology or otherwise negatively impact the Company’s stock price or its business and consolidated financial results.

Segment and Geographic Information

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segment and Geographic Information

NOTE 16 – 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. Edge based machine learning, audio, digital radio, and imaging solutions 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, 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 more of the Company’s foundational patent portfolios and may also include access to some of the Company’s industry-leading technologies and proven know-how. In the media industry, the Company’s licensees include pay television (“Pay-TV”) providers, both in the United States and internationally, consumer electronics manufacturers and other providers of video experiences across various platforms, including over-the-top (“OTT”) video. In the semiconductor industry, the Company’s licensees include semiconductor manufacturers, fabless companies, foundries and packaging 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 three and nine months ended September 30, 2020 and 2019 (in thousands):

	Three Months Ended							Nine Months Ended
	September 30, 2020				September 30, 2019			September 30, 2020				September 30, 2019
Revenue:
Product segment	$	122,552			$	46,028		$	242,618			$	152,026
IP Licensing segment		80,245				11,839			215,475				37,523
Total revenue		202,797				57,867			458,093				189,549
Operating expenses:
Product segment		116,149				45,693			228,941				139,409
IP Licensing segment		40,020				10,113			70,765				29,859
Unallocated operating expenses (1)		65,591		(2)		27,588			170,542		(3)		84,121
Total operating expenses		221,760				83,394			470,248				253,389
Operating income (loss):
Product segment		6,403				335			13,677				12,617
IP Licensing segment		40,225				1,726			144,710				7,664
Unallocated operating expenses (1)		(65,591	)			(27,588	)		(170,542	)			(84,121	)
Total operating loss	$	(18,963	)		$	(25,527	)	$	(12,155	)		$	(63,840	)

(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 $1.2 million in one-time transaction costs related to the Mergers and $3.6 million in post-merger severance and retention costs.

(3)

Includes approximately $29.1 million in one-time transaction costs related to the Mergers and $12.1 million in post-merger severance and retention costs.

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 revenue in future periods. The table below lists the geographic revenue for the periods indicated (in thousands):

	Three Months Ended								Nine Months Ended
	September 30, 2020				September 30, 2019				September 30, 2020				September 30, 2019
U.S.	$	125,753	62	%	$	9,733	17	%	$	191,847	42	%	$	33,740	18	%
Japan		19,107	10			18,368	32			84,461	18			69,427	37
South Korea		14,402	7			19,086	33			102,959	23			53,002	28
Canada		12,536	6			166	—			17,133	4			441	—
Europe and Middle East		10,606	5			4,780	8			22,035	5			15,243	8
Other		20,393	10			5,734	10			39,658	8			17,696	9
	$	202,797	100	%	$	57,867	100	%	$	458,093	100	%	$	189,549	100	%

For the three months ended September 30, 2020 and 2019, there were no customers and one customer, respectively, that accounted for 10% or more of total revenue. For the nine months ended September 30, 2020 and 2019, there were one customer and two customers, respectively, that accounted for 10% or more of total revenue. As of September 30, 2020 and December 31, 2019, there were three customers and three customers, respectively, that each accounted for 10% or more of total accounts receivable.

- 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
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+ Details

Subsequent Events

9 Months Ended

Sep. 30, 2020

Subsequent Events [Abstract]

Subsequent Events

NOTE 17 - SUBSEQUENT EVENTS

On October 28, 2020, the Board declared a cash dividend of $0.05 per share of common stock, payable on December 21, 2020 to the stockholders of record at the close of business on November 30, 2020.

On November 9, 2020, the Company and certain of its affiliates, entered into a patent license agreement (the “Agreement”) with Comcast Corporation and certain of its affiliates (“Comcast”). In connection with the Agreement, the parties resolved all

of the outstanding litigation between the companies. The Agreement is effective as of the expiration of Comcast’s prior agreement in 2016 and its term continues into 2031. The Agreement also provides for an initial payment by Comcast upon execution and ongoing payments through the remainder of the Agreement. As the Agreement was entered into after September 30, 2020, the Company expects to record revenue from the out-of-license settlement in the fourth quarter of 2020 and revenue from the prospective license into 2031. In addition, the Company expects to make a substantial principal payment towards the 2020 Term B Loan Facility based on the leverage ratios and excess cash flow metrics as defined in the 2020 Credit Agreement. Refer to “Note 9 – Debt” for additional information.

Summary of Significant Accounting Policies (Policies)	9 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2020
Accounting Policies [Abstract]
Basis of Accounting	The accompanying interim unaudited condensed consolidated financial statements as of September 30, 2020 and 2019, and for the three and nine months then ended, have been prepared by the Company in accordance with generally accepted accounting principles (“GAAP”) in the United States (“U.S.”) for interim financial information. The amounts as of December 31, 2019 have been derived from the Company’s annual audited financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted in accordance with such rules and regulations. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments necessary (consisting of normal recurring adjustments) to state fairly the financial position of the Company and its results of operations and cash flows as of and for the periods presented. These financial statements should be read in conjunction with the annual audited financial statements and notes thereto as of and for the year ended December 31, 2019, included in Xperi’s Annual Report on Form 10-K for the year ended December 31, 2019 and TiVo’s Annual Report on Form 10-K for the year ended December 31, 2019, both of which were filed on February 18, 2020.
Reclassification	Reclassification As a result of the Mergers, certain reclassifications of prior period amounts have been made to improve comparability and conform to the current period presentation. Presentation changes were made to the Condensed Consolidated Statements of Operations. In addition, certain reclassifications of prior period data have been made in the Notes to Condensed Consolidated Financial Statements to conform to the current period presentation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The accounting estimates and assumptions that require management’s most significant, challenging, and subjective judgment include the estimation of licensees’ quarterly royalties prior to receiving the royalty reports, the determination of stand-alone selling price and the transaction price in an arrangement with multiple performance obligations, the estimation of variable consideration, judgment used to estimate the progress toward completion in the Company’s engineering services, the collectability of accounts receivable, other intangible assets and investments, the assessment of the recoverability of goodwill, the assessment of useful lives and recoverability of other intangible assets and long-lived assets, recognition and measurement of current and deferred income tax assets and liabilities, the assessment of unrecognized tax benefits, and purchase accounting resulting from business combinations, among others. Actual results experienced by the Company may differ from management’s estimates. The COVID-19 pandemic has resulted in a global slowdown of economic activity which is likely to reduce the future demand for a broad variety of goods and services, while also disrupting sales channels, marketing activities and supply chains for an unknown period of time until the virus is fully contained. The Company’s business operations have been negatively impacted by the COVID-19 pandemic and related events and the Company expects this disruption to continue to have a negative impact on its revenue and results of operations, the size and duration of which is currently difficult to predict. The impact to date has included a decline in demand in various markets and industries, particularly the automotive market. For example, the Company anticipates approximately 20% decline in its royalty revenue in 2020 from the products sold to the automotive market, such as HD Radio, as compared to the prior year. Although the Company is unable to predict the full impact and duration of COVID-19 on its business, the Company is actively managing its financial expenditures in response to the current uncertainty. The impact of the COVID-19 pandemic and related events, including actions taken by various government authorities in response, have increased market volatility and make the estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes more difficult. As of the date of issuance of the financial statements, the Company is not aware of any specific event or circumstance that would require it to update its estimates, judgments or revise the carrying value of its assets or liabilities. These estimates may change, as new events occur and additional information is obtained, and are recognized in the consolidated financial statements as soon as they become known.
Recent Accounting Pronouncements	Recently Adopted Accounting Pronouncements In September 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. The current expected credit loss model is based on relevant information about past events, including historical experience, current conditions and reasonable and supportable forecasts that affect collectability. Current expected credit losses, and subsequent adjustments, represent an estimate of lifetime expected credit losses that are recorded as an allowance deducted from the amortized cost of the financial instrument. The updated guidance also amends the other-than-temporary impairment model for available-for-sale debt securities by requiring the recognition of impairments for credit-related losses through an allowance and eliminating the length of time a security has been in an unrealized loss position as a consideration in the determination of whether a credit loss exists. On January 1, 2020, the Company adopted the new standard using a modified retrospective transition approach for the provisions related to application of the current expected credit loss model to financial instruments and using a prospective transition approach for the provisions related to credit losses on available-for-sale debt securities. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. For additional detail, refer to “Note 3 – Revenue.” In August 2018, the FASB issued ASU 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract” (“ASU 2018-15”) modifying the requirements for capitalizing costs incurred to implement a hosting arrangement that is a service contract. The modified requirements were intended to align the cost capitalization requirements for hosting arrangements with the cost capitalization requirements for internal-use software. The Company adopted the standard on January 1, 2020 and applied the modified requirements prospectively to all implementation costs incurred after the date of adoption. The adoption did not have a material impact on the Company’s consolidated financial statements. Recent Accounting Pronouncements In December 2019, the FASB released ASU 2019-12, “Simplifying the Accounting for Income Taxes” (“ASU 2019-12”). The purpose of the update is to reduce the complexity pertaining to certain areas in accounting for income taxes. Key amendments from ASU 2019-12 include, but are not limited to, the accounting for hybrid tax regimes, step-up in tax basis for goodwill in non-business combination transactions, intraperiod tax allocation exception to the incremental approach, and interim period accounting for enacted changes in tax law. ASU 2019-12 is effective for the Company in the first quarter of the year ending December 31, 2021. The Company is in the process of evaluating the impact of the adoption of this new standard on its consolidated financial statements and does not currently anticipate a material impact. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in ASU 2020-04 apply only to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. ASU 2020-04 is effective beginning on March 12, 2020 and may be applied prospectively through December 31, 2022. The Company is currently assessing the potential impact of the standard on its consolidated financial statements.
Revenue Recognition	Revenue Recognition General Revenue is recognized when control of the promised goods or services is transferred to a customer in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services, which may include various combinations of goods and services which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of sales taxes collected from customers which are subsequently remitted to governmental authorities. In situations where foreign withholding taxes are withheld by the Company’s licensee, revenue is recognized gross of withholding taxes that are remitted directly by the licensee to a local tax authority. Arrangements with Multiple Performance Obligations Some of the Company’s contracts with customers contain multiple performance obligations. For these contracts, the individual performance obligations are separately accounted for if they are distinct. In an arrangement with multiple performance obligations, the transaction price is allocated among the separate performance obligations on a relative stand-alone selling price basis. The determination of stand-alone selling price considers market conditions, the size and scope of the contract, customer and geographic information, and other factors. When observable prices are not available, stand-alone selling price for separate performance obligations is based on the cost-plus-margin approach, considering overall pricing objectives. The allocation of transaction price among performance obligations in a contract may impact the amount and timing of revenue recognized in the Consolidated Statements of Operations during a given period. Contract Modifications Contracts may be modified due to changes in contract specifications or customer requirements. Contract modifications occur when the change in terms either creates new enforceable rights and obligations or changes existing enforceable rights and obligations. The effect of a contract modification for goods and services that are not distinct in the context of the contract on the transaction price is recognized as an adjustment to revenue on a cumulative catch-up basis. Contract modifications that result in goods or services that are distinct from the existing goods or services are accounted for as separate contracts if they are sold at their stand-alone selling price, or otherwise prospectively. Variable Consideration When a contract with a customer includes a variable transaction price, an estimate of the consideration which the Company expects to be entitled to for transferring the promised goods or services is made at contract inception. Depending on the terms of the contract, variable consideration is estimated using either the expected value approach or the most likely value approach. Under either approach to estimating variable consideration, the estimate considers all information (historical, current and forecast) that is reasonably available at contract inception. The amount of variable consideration is estimated at contract inception and updated as additional information becomes available. The estimate of variable consideration is included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Subsequent changes in the transaction price resulting from changes in the estimate of variable consideration are allocated to the performance obligations in the contract on the same basis as at contract inception. Certain payments to licensees, retailers and distributors, such as market development funds and revenue shares, are treated as a reduction of the transaction price, and therefore a reduction to revenue, unless the payment is in exchange for a distinct good or service that the licensee, retailer or distributor transfers to the Company. When variable consideration is in the form of a sales-based or usage-based royalty in exchange for a license of IP, or when a license of IP is the predominant item to which the variable consideration relates, revenue is recognized at the later of when the subsequent sale or usage occurs or the performance obligation to which some or all of the sales-based or usage-based royalty has been allocated has been satisfied or partially satisfied. Nature of Goods and Services The following is a discussion of the principal activities from which the Company generates its revenue. License Agreements The Company operates in two business segments. In its Product segment, the Company licenses its audio, imaging, edge-based machine learning and multi-channel video user experience (“UX”) solutions. In its IP Licensing segment, the Company licenses its media patent portfolios (“IP Media licensing”) to Pay-TV, CE manufacturers and other providers of video experiences across various platforms. In addition, the Company licenses its semiconductor technologies and associated patent portfolios (“IP Semiconductor licensing”) to semiconductor manufacturers, fabless companies, foundries and packaging companies. The Company licenses its technologies and portfolios under three revenue models: (i) fixed-fee IP Media licensing, (ii) fixed-fee or minimum guarantee Product or IP Semiconductor licensing, and (iii) per-unit or per-subscriber royalty licenses. Fixed-fee IP Media licensing The Company's long-term fixed-fee IP Media licensing agreements provide its customers with rights to future patented technologies over the term of the agreement that are highly interdependent or highly interrelated to the patented technologies provided at the inception of the agreement. The Company treats these rights as a single performance obligation with revenue recognized on a straight-line basis over the term of the fixed-fee license agreement. At times, the Company enters into license agreements in which a licensee is released from past patent infringement claims or is granted a license to ship an unlimited number of units or for an unlimited number of subscribers over a future period for a fixed fee. In these arrangements, the Company allocates the transaction price between the release for past patent infringement claims and the future license. In determining the stand-alone selling price of the release for past patent infringement claims and the future license, the Company considers such factors as the number of units shipped in the past or the number of past subscribers and the relevant geographies of the shipped units or subscribers, the future number of subscribers or units, as well as the licensing rate the Company generally receives for per subscriber or units shipped in the same geographies. As the release from past patent infringement claims is generally satisfied at execution of the agreement, the transaction price allocated to the release from past patent infringement claims is generally recognized in the period the agreement is executed and the amount of transaction price allocated to the future license is recognized ratably over the future license term. Fixed-fee or minimum guarantee IP Semiconductor or Product licensing The Company enters into IP Semiconductor or Product licenses that have fixed fee or minimum guarantee arrangements, whereby licensees pay a fixed fee for the right to incorporate the Company’s technology in the licensee's products over the license term. In arrangements with a minimum guarantee, the fixed fee component corresponds to a minimum number of units or dollars that the customer must produce or pay, with additional per-unit fees for any units or dollars exceeding the minimum. In most cases, the customer pays the fixed license fee in specified installments over the license term. For both fixed fee and minimum guarantee agreements for IP Semiconductor or Product licensing, the Company recognizes the full fixed fee as revenue at the beginning of the license term, when the licensee has the right to use the IP and begins to benefit from the license. If the contract term of a fixed fee or minimum guarantee arrangement is longer than one year, the Company also considers the scheduled payment arrangements to determine whether a significant financing component exists. In general, if the payment arrangements extend beyond the initial twelve months of the contract, the Company treats a portion of the payments as a significant financing component. The discount rate used for each arrangement reflects the rate that would be used in a separate financing transaction between the Company and the licensee at contract inception and takes into account the credit characteristics of the licensee and market interest rates as of the date of the agreement. As such, the amount of fixed fee revenue recognized at the beginning of the license term will be reduced by the calculated financing component. As payments are received from the licensee, the Company recognizes a portion of the financing component as interest income, reported as other income and expense in the Consolidated Statements of Operations. Per-unit or per-subscriber royalty licenses The Company recognizes revenue from per-unit or per-subscriber royalty licenses in the period in which the licensee's sales or production are estimated to have occurred, which results in an adjustment to revenue when actual sales or production are subsequently reported by the licensee, which is generally in the month or quarter following usage or shipment. The Company generally recognizes revenue from royalty licenses on a per-subscriber per-month model for licenses with service providers and a per-unit shipped or manufactured model for licenses with CE manufacturers. Compliance Audits The Company actively monitors and enforces its IP, including seeking appropriate compensation from customers that have under-reported royalties owed under a license agreement and from third parties that utilize the Company’s intellectual property without a license. As a result of these activities, the Company may, from time to time, recognize revenue from payments resulting from periodic compliance audits of licensees for underreporting royalties incurred in prior periods, as part of a settlement of a patent infringement dispute, or from legal judgments in a license dispute. These recoveries and settlements may cause revenue to be higher than expected during a particular reporting period and such recoveries may not occur in subsequent periods. The Company recognizes revenue from recoveries when a binding agreement has been executed and the Company concludes collection under that agreement is likely. Arrangements with Multiple System Operators for the TiVo Service The Company's arrangements with multiple system operators ("MSOs") typically include software customization and set-up services, associated maintenance and support, limited training, post-contract support, TiVo-enabled DVRs, non-DVR Set-Top Boxes (“STBs”), and the TiVo service. The Company has two types of arrangements with MSOs that include technology deployment and engineering services. In instances where the Company hosts the TiVo service, non-refundable payments received for customization and set-up services are deferred and recognized as revenue ratably over the hosting term. The related cost of such services is capitalized to the extent it is deemed recoverable and amortized to cost of revenue over the same period as the related TiVo service revenue is recognized. The Company estimates the stand-alone selling prices for training, DVRs, non-DVR STBs and maintenance and support based on the price charged in stand-alone sales of the promised good or service. The stand-alone selling price for the TiVo service is determined by considering the size of the MSO and expected volume of deployment, market conditions, competitive landscape, internal costs and total gross margin objectives. For a term license to the TiVo service, the Company receives license fees for the hosted TiVo service on either a per-subscriber per-month basis or a fixed fee. The Company recognizes revenue from per-subscriber per-month licenses during the month the TiVo service is provided to the customer and recognizes revenue from fixed fee licenses ratably over the license period. In arrangements where the Company does not host the TiVo service, which includes engineering services that are essential to the functionality of the licensed technology or involve significant customization or modification of the software, the Company recognizes revenue as progress toward completion is made using an input method based on the ratio of costs incurred to date to total estimated costs of the project. Project costs are primarily labor related to specific activities required for the project. Costs related to general infrastructure or uncommitted platform development are not included in the project cost estimates and are expensed as incurred. Estimating project costs requires forecasting costs, tracking progress toward completion and projecting the remaining effort to complete the project. These estimates are reassessed throughout the term of the arrangement, and revisions to estimates are recognized on a cumulative catch-up basis when the changed conditions become known. Provisions for losses are recorded when estimates indicate it is probable that a loss will be incurred for the contract. The Company generally recognizes revenue from license fees for the TiVo service that the Company does not host on a per-subscriber per-month basis due to the recognition constraint on intellectual property usage-based royalties. Subscription Services Subscription services revenue primarily consists of fees to provide customers with access to one or more of the Company's hosted products such as its iGuide interactive program guide (“IPG”), advanced search and recommendations, metadata and analytics products, including routine customer support. The Company generally receives per-subscriber per-month fees for its iGuide IPG and search and recommendations service and revenue is recorded in the month the customer uses the service. The Company generally receives a monthly or quarterly fee from its metadata or analytics licenses for the right to use the metadata or access its analytics platform and to receive regular updates. Revenue from the Company's metadata and analytics service is recognized ratably over the subscription period. TiVo-enabled DVRs and TiVo Service The Company sells TiVo-enabled DVRs and the related service directly to customers through sales programs via the TiVo.com website and licenses the sale of TiVo-enabled DVRs through a limited number of retailers. All customers have the right to cancel their subscription to the TiVo service within 30 days of subscription activation for a full refund. After the initial subscription period, all customers have various pricing options when they renew their subscription. The transaction price allocated to the DVR is recognized as revenue upon shipment to the customer and the transaction price allocated to the TiVo service is recognized as revenue ratably over the service period. Subscription revenue from lifetime subscriptions are recognized ratably over the estimated useful life of the DVR associated with the subscription. The estimated useful life for a DVR depends on a number of assumptions, including, but not limited to, customer retention rates, the timing of new product introductions and historical experience. The Company periodically reassesses the estimated useful life of a DVR. When the actual useful life of the DVR materially differs from the Company's estimate, the estimated useful life of the DVR is adjusted, which could result in the recognition of revenue over a longer or shorter period of time. Significant Judgments Determining whether promises to transfer multiple goods and services in contracts with customers are considered distinct performance obligations that should be accounted for separately requires significant judgment, including related to the level of integration and interdependency between the performance obligations. In addition, judgment is necessary to allocate the transaction price to the distinct performance obligations, including whether there is a discount or significant financing component to be allocated based on the relative stand-alone selling price of the various performance obligations. Significant judgment is required to determine the stand-alone selling price for each distinct performance obligation when an observable price is not available. In instances where stand-alone selling price is not directly observable, such as when the Company does not sell the good or service separately, the stand-alone selling price is determined using a range of inputs that includes market conditions and other observable inputs. More than one stand-alone selling price may exist for individual goods and services due to the stratification of those goods and services, considering attributes such as the size of the customer and geographic region. Due to the nature of the work required to be performed on some performance obligations, significant judgment may be required to determine the transaction price. It is common for the Company's license agreements to contain provisions that can either increase or decrease the transaction price. These variable amounts are generally estimated based on usage. In addition to estimating variable consideration, significant judgment is necessary to identify forms of variable consideration, determine whether the variable consideration relates to a sales-based or usage-based royalty of intellectual property and determine whether, and when to include estimates of variable consideration in the transaction price. For certain licensees, royalty revenue is generated based on a licensee’s production or shipment of licensed products incorporating the Company’s intellectual property, technologies or software. Licensees with a per-unit or per-subscriber arrangement pay a per-unit royalty for each product manufactured or sold, or for each subscriber, as set forth in its license agreement. Licensees generally report manufacturing, sales or subscriber information in the month or quarter subsequent to when the production, shipment or subscription activity takes place. The Company estimates the royalties earned each quarter based on its forecast of manufacturing and sales activity by its licensees in that quarter. Any differences between actual royalties owed by a licensee and the Company’s estimate are recognized when the licensee’s royalty report is received. Estimating licensees’ quarterly royalties prior to receiving the royalty reports requires the Company to make significant assumptions and judgments related to forecasted trends and growth rates used to estimate quantities manufactured, shipped or subscribed by licensees, which could have a material impact on the amount of revenue recognized. Some hardware products are sold with a right of return and, in certain circumstances, credits or incentives may be provided to customers or resellers at the time of sale. Such credits and incentives are accounted for as variable consideration and recognized as a reduction to revenue. Estimates of returns, credits and incentives are made at contract inception and updated each reporting period. In contracts where the Company does not host the TiVo service and that include engineering services that are essential to the functionality of the licensed technology or involve significant customization or modification of software, or where the Company provides non-recurring engineering (“NRE”) services, the Company recognizes revenue as progress toward completion occurs using an input method based on the ratio of costs incurred to date to total estimated costs of the project. Significant judgment is required to estimate the remaining effort to complete the project. These estimates are reassessed throughout the term of the arrangement. Management evaluates its estimates, inputs and assumptions related to revenue recognition on an ongoing basis. The use of different estimates, inputs or assumptions may materially affect the reported amounts of assets and liabilities as of the date of the financial statements and the results of operations for the reporting period. Practical Expedients and Exemptions The Company applies a practical expedient to not perform an evaluation of whether a contract includes a significant financing component when the timing of revenue recognition differs from the timing of cash collection by one year or less. The Company applies a practical expedient to expense costs to obtain a contract with a customer as incurred as a component of selling, general and administrative expenses when the amortization period would have been one year or less. The Company applies a practical expedient when disclosing revenue expected to be recognized from unsatisfied performance obligations to exclude contracts with customers with an original duration of less than one year; contracts for which revenue is recognized based on the amount which the Company has the right to invoice for services performed and amounts attributable to variable consideration arising from (i) a sales-based or usage-based royalty of an intellectual property license or (ii) when variable consideration is allocated entirely to a wholly unsatisfied performance obligation; or to a wholly unsatisfied promise to transfer a distinct good or service that forms part of a single performance obligation.

- Definition

Disclosure of accounting policy for revenue from contract with customer.

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+ Details

Revenue (Tables)

9 Months Ended

Sep. 30, 2020

Revenue From Contract With Customer [Abstract]

Schedule of Contract Assets

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

	September 30, 2020		December 31, 2019
Unbilled contracts receivable	$	164,138	$	121,826
Other current assets		566		—
Long-term unbilled contracts receivable		15,083		26,672
Other long-term assets		1,360		—
Total contract assets	$	181,147	$	148,498

Schedule of Allowance for Credit Losses

The following table presents the activity in the allowance for credit losses for the three and nine months ended September 30, 2020 (in thousands):

	Three Months Ended September 30, 2020							Nine Months Ended September 30, 2020
	Accounts Receivable					Unbilled Contracts Receivable		Accounts Receivable				Unbilled Contracts Receivable
Beginning balance	$	2,469				$	357	$	566			$	—
Provision for credit losses		1,163		(1	)		232		3,391		(1)		589
Recoveries/charged-off		(8	)				1		(333	)			1
Balance at end of period	$	3,624				$	590	$	3,624			$	590

(1) The increase in provision for credit losses was due to late payments and collection issues with certain of the Company’s customers in the third quarter of 2020.

Schedule of Revenue Recognized in Period

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Revenue recognized in the period from:
Amounts included in deferred revenue at the beginning of the period	$	12,364	$	175	$	50	$	3,130
Performance obligations satisfied in previous periods (true ups, licensee reporting adjustments and settlements)*	$	12,232	$	1,349	$	66,454	$	2,941

Schedule of Remaining Performance Obligations

The Company's remaining revenue under contracts with performance obligations was as follows (in thousands):

	As of
	September 30, 2020		December 31, 2019
Revenue from contracts with performance obligations expected to be satisfied in:
2020 (remaining 3 months)	$	48,032	$	5,337
2021		145,813		990
2022		99,594		345
2023		89,523		—
2024		75,883		—
Thereafter		74,079		—
Total	$	532,924	$	6,672

Composition Of Certain Financial Statement Captions (Tables)

9 Months Ended

Sep. 30, 2020

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Schedule of Other Current Assets

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

	September 30, 2020		December 31, 2019
Prepaid income taxes	$	3,895	$	2,364
Prepaid expenses		21,707		8,802
Inventory		6,154		79
Other		4,328		2,490
	$	36,084	$	13,735

Schedule of Property and Equipment, Net

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

	September 30, 2020			December 31, 2019
Equipment, furniture and other	$	58,366		$	32,504
Building and improvements		18,309			18,258
Land		5,300			5,300
Leasehold improvements		26,149			8,103
		108,124			64,165
Less: accumulated depreciation and amortization		(42,692	)		(31,288	)
	$	65,432		$	32,877

Schedule of Other Long Term Assets

Other long-term assets consisted of the following (in thousands):

	September 30, 2020		December 31, 2019
Non-current income tax receivable	$	109,745	$	64,570
Long-term deferred tax assets		5,735		3,660
Other assets		20,915		3,106
	$	136,395	$	71,336

Schedule of Accrued Liabilities

Accrued liabilities consisted of the following (in thousands):

	September 30, 2020		December 31, 2019
Employee compensation and benefits	$	35,819	$	18,404
Accrued expenses		22,367		7,930
Current portion of operating lease liabilities		17,577		5,845
Accrued severance		6,695		—
Third-party royalties		3,775		6,165
Other		12,529		3,089
	$	98,762	$	41,433

Schedule of Other Long-Term Liabilities

Other long-term liabilities consisted of the following (in thousands):

	September 30, 2020		December 31, 2019
Long-term income tax payable	$	91,676	$	76,767
Other		3,961		131
	$	95,637	$	76,898

Schedule of Accumulated Other Comprehensive Income (Loss)

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

	September 30, 2020			December 31, 2019
Foreign currency translation adjustment, net of tax	$	895		$	—
Unrealized loss on available-for-sale debt securities, net of tax		(76	)		(53	)
	$	819		$	(53	)

Schedule of Other Income and Expense, Net

Other income and expense, net, consisted of the following (in thousands):

	Three Months Ended,					Nine Months Ended,
	September 30, 2020		September 30, 2019			September 30, 2020			September 30, 2019
Interest income from significant financing components under Topic 606	$	547	$	906		$	2,243		$	4,626
Interest income from investments		456		420			1,248			1,702
Unrealized/realized gain (loss) on marketable equity securities		—		(1,060	)		(707	)		563
Other income/(expense), net		1,302		163			664			646
	$	2,305	$	429		$	3,448		$	7,537

Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2020

Investments Debt And Equity Securities [Abstract]

Summary of Marketable Securities

The following is a summary of marketable securities at September 30, 2020 and December 31, 2019 (in thousands):

	September 30, 2020
	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Allowance for Credit Losses		Estimated Fair Values
Marketable securities
Corporate bonds and notes	$	72,273	$	61	$	(62	)	$	—	$	72,272
Treasury and agency notes and bills		4,999		—		(1	)		—		4,998
Commercial paper		9,990		—		(2	)		—		9,988
Total debt securities		87,262		61		(65	)		—		87,258
Money market funds		4,771		—		—			—		4,771
Total equity securities		4,771		—		—			—		4,771
Total marketable securities	$	92,033	$	61	$	(65	)	$	—	$	92,029
Reported in:
Cash and cash equivalents										$	4,771
Available-for-sale debt securities											87,258
Total marketable securities										$	92,029

	December 31, 2019
	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Values
Marketable securities
Corporate bonds and notes	$	41,730	$	29	$	(13	)	$	41,746
Commercial paper		4,052		4		—			4,056
Total debt securities		45,782		33		(13	)		45,802
Money market funds		2,601		—		—			2,601
Marketable equity securities		3,405		—		(2,281	)		1,124
Total equity securities		6,006		—		(2,281	)		3,725
Total marketable securities	$	51,788	$	33	$	(2,294	)	$	49,527
Reported in:
Cash and cash equivalents								$	2,601
Available-for-sale debt securities									45,802
Equity securities									1,124
Total marketable securities								$	49,527

Fair Value and Gross Unrealized Losses Related to Individual Available-for-Sale Debt Securities

	Less Than 12 Months					12 Months or More				Total
September 30, 2020	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Corporate bonds and notes	$	52,933	$	(62	)	$	—	$	—	$	52,933	$	(62	)
Treasury and agency notes and bills		4,998		(1	)		—		—		4,998		(1	)
Commercial paper		9,988		(2	)		—		—		9,988		(2	)
Total	$	67,919	$	(65	)	$	—	$	—	$	67,919	$	(65	)

	Less Than 12 Months					12 Months or More					Total
December 31, 2019	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Corporate bonds and notes	$	20,031	$	(10	)	$	8,753	$	(3	)	$	28,784	$	(13	)
Total	$	20,031	$	(10	)	$	8,753	$	(3	)	$	28,784	$	(13	)

Estimated Fair Value of Marketable Debt Securities by Contractual Maturity

	Estimated Fair Value
Due in one year or less	$	47,005
Due in one to two years		40,253
Total	$	87,258

Fair Value (Tables)

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Schedule of Fair Value Assets Measured on Recurring Basis

	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Marketable securities
Money market funds - equity securities (1)	$	4,771	$	4,771	$	—	$	—
Treasury and agency notes and bills (2)		4,998		—		4,998		—
Commercial paper (2)		9,988		—		9,988		—
Corporate bonds and notes - debt securities (2)		72,272		—		72,272		—
Total Assets	$	92,029	$	4,771	$	87,258	$	—

(1)

Reported as cash and cash equivalents in the Condensed Consolidated Balance Sheet.

(2)

Reported as AFS debt securities in the Condensed Consolidated Balance Sheet.

	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Marketable securities
Money market funds - equity securities (1)	$	2,601	$	2,601	$	—	$	—
Marketable equity securities (2)		1,124		1,124		—		—
Commercial paper - debt securities (3)		4,056		—		4,056		—
Corporate bonds and notes - debt securities (3)		41,746		—		41,746		—
Total Assets	$	49,527	$	3,725	$	45,802	$	—

(1)

Reported as cash and cash equivalents in the Condensed Consolidated Balance Sheet.

(2)

Reported as equity securities in the Condensed Consolidated Balance Sheet.

(3)

Reported as AFS debt securities in the Condensed Consolidated Balance Sheet.

Schedule of Carrying Amounts and Estimated Fair Values

The carrying amounts and estimated fair values are as follows (in thousands):

	September 30, 2020				December 31, 2019
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
2020 Term B Loan Facility ⁽¹⁾	$	1,000,186	$	978,152	$	—	$	—
2021 Convertible Notes		48		48		—		—
2018 Amended Term B Loan ⁽¹⁾		—		—		334,679		335,642
Total long-term debt, net	$	1,000,234	$	978,200	$	334,679	$	335,642

(1)	Carrying amounts of long-term debt are net of unamortized debt issuance costs of $36.7 million and $9.3 million as of September 30, 2020 and December 31, 2019, respectively. See “Note 9 – Debt” for additional information.

Business Combination (Tables)

9 Months Ended

Sep. 30, 2020

Business Combinations [Abstract]

Schedule of Merger Consideration

The merger consideration of $828.3 million was calculated as follows (amounts in thousands except exchange ratio and share price):

TiVo common shares outstanding as of June 1, 2020		128,132
TiVo exchange ratio		0.455
Xperi Holding Corporation common stock issued in exchange		58,300
Xperi Common Stock closing share price on June 1, 2020	$	14.00
			$	816,201
Fair value of replaced TiVo equity awards relating to pre-acquisition vesting of the equity award holders’ requisite service periods				12,133
Total merger consideration			$	828,334

Schedule of Preliminary Fair Value that Allocated to Assets and Liabilities

	Estimated Useful Life (years)		Estimated Fair Value
Cash and cash equivalents			$	117,424
Accounts receivable				105,778
Unbilled contracts receivable				69,058
Other current assets				21,690
Long-term unbilled contracts receivable				129
Property and equipment				41,307
Operating lease right-of-use assets				71,444
Identifiable intangible assets:
Patents	10	457,400
Customer contracts and related relationships	4-9	358,200
Developed technology	5	34,800
Content database	9	6,200
Trademarks and tradenames	N/A	21,400
Total identifiable intangible assets				878,000
Goodwill				461,129
Other long-term assets				43,700
Accounts payable				(13,258	)
Accrued legal fees				(5,619	)
Accrued liabilities				(79,071	)
Current portion of deferred revenue				(29,291	)
Current portion of long-term debt				(734,609	)
Deferred revenue, less current portion				(24,319	)
Long-term deferred tax liabilities				(27,949	)
Long-term debt				(48	)
Noncurrent operating lease liabilities				(59,291	)
Other long-term liabilities				(7,870	)
Total purchase price			$	828,334

Schedule of Unaudited Pro Forma Financial Information

	Three Months Ended						Nine Months Ended
	September 30, 2020			September 30, 2019			September 30, 2020			September 30, 2019
Revenue	$	202,797		$	214,610		$	708,675		$	676,888
Net income (loss) attributable to Xperi Holding Corporation	$	(23,085	)	$	(193,898	)	$	(145,649	)	$	(337,906	)

Schedule of Unaudited Supplemental Pro Forma Information and Adjustments of Mergers

	Three Months Ended					Nine Months Ended
	September 30, 2020		September 30, 2019			September 30, 2020			September 30, 2019
Estimated increase (decrease) to earnings due to revenue adjustments resulting from purchase accounting	$	—	$	(1,781	)	$	(4,823	)	$	(5,592	)
Estimated increase (decrease) to earnings to adjust for transaction related costs incurred in connection with the Mergers	$	1,187	$	—		$	31,835		$	(21,918	)
Estimated increase (decrease) to earnings to adjust for stock-based compensation expense for TiVo equity awards	$	—	$	524		$	3,436		$	(1,260	)
Estimated increase (decrease) to earnings to adjust for severance and retention costs incurred in connection with the Mergers	$	3,591	$	(1,710	)	$	10,254		$	(13,696	)
Estimated increase (decrease) to earnings to reflect payoff of historical debt and new debt financing in connection with the Mergers	$	1,116	$	(3,693	)	$	21,867		$	(20,401	)
Estimated increase (decrease) to earnings due to pro forma adjustments for income taxes (1)(2)	$	117	$	(19,884	)	$	16,374		$	(39,161	)

(1)

(2)

Goodwill and Identified Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2020

Goodwill And Intangible Assets Disclosure [Abstract]

Summary of Changes to Carrying Value of Goodwill

Goodwill allocated to the reportable segments and changes in the carrying amount of goodwill by reportable segment were as follows (in thousands):

	Product		IP Licensing		Total
December 31, 2019	$	378,084	$	7,700	$	385,784
Goodwill acquired through the Mergers (1)		146,061		315,068		461,129
September 30, 2020	$	524,145	$	322,768	$	846,913

(1)

Identified Intangible Assets

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

	Average	September 30, 2020							December 31, 2019
	Life (Years)	Gross Assets		Accumulated Amortization			Net		Gross Assets		Accumulated Amortization			Net
Finite-lived intangible assets
Acquired patents / core technology (1)	3-15	$	609,085	$	(154,418	)	$	454,667	$	151,184	$	(135,952	)	$	15,232
Existing technology / content database (2) (3)	5-10		247,959		(159,430	)		88,529		206,878		(130,890	)		75,988
Customer contracts and related relationships (4)	3-9		650,079		(229,450	)		420,629		291,769		(174,741	)		117,028
Trademarks/trade name	4-10		40,083		(19,786	)		20,297		40,083		(16,056	)		24,027
Non-competition agreements	1		2,231		(2,231	)		—		2,231		(2,231	)		—
Total finite-lived intangible assets			1,549,437		(565,315	)		984,122		692,145		(459,870	)		232,275
Indefinite-lived intangible assets
TiVo Tradename/trademarks (5)	N/A		21,400		—			21,400		—		—			—
Total intangible assets		$	1,570,837	$	(565,315	)	$	1,005,522	$	692,145	$	(459,870	)	$	232,275

(1)

In June 2020, $457.4 million of patents was acquired through the Mergers. See “Note 7 – Business Combination.”

(2)

In June 2020, $34.8 million of existing (developed) technology was acquired through the Mergers. See “Note 7 – Business Combination.”

(3)

In June 2020, $6.2 million of content database was acquired through the Mergers. See “Note 7 – Business Combination.”

(4)

In June 2020, $358.2 million of customer contracts and related relationships was acquired through the Mergers. See “Note 7 – Business Combination.”

(5)

In June 2020, $21.4 million of TiVo Tradename/trademarks was acquired through the Mergers. See “Note 7 – Business Combination.”

Estimated Future Amortization Expense

As of September 30, 2020, the estimated future amortization expense of total finite-lived intangible assets was as follows (in thousands):

2020 (remaining 3 months)	$	50,257
2021		195,771
2022		147,332
2023		136,452
2024		97,647
Thereafter		356,663
	$	984,122

Debt (Tables)

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Schedule of Outstanding Amounts of Debt

The outstanding amounts of debt were as follows (in thousands):

	September 30, 2020			December 31, 2019
2020 Term B Loan Facility	$	1,036,875		$	—
2021 Convertible Notes		48			—
2018 Amended Term B Loan		—			344,000
Unamortized debt issuance costs		(36,689	)		(9,321	)
		1,000,234			334,679
Less: current portion, net of debt issuance costs		(43,704	)		—
Total long-term debt, net of current portion	$	956,530		$	334,679

Summarize of Future Minimum Principal Payments for Long-term Debt

As of September 30, 2020, future minimum principal payments for long-term debt are summarized as follows (in thousands):

2020 (remaining 3 months)	$	13,125
2021		52,548
2022		52,500
2023		72,188
2024		78,750
Thereafter		767,812
Total	$	1,036,923

Net Loss Per Share (Tables)

9 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

Computation of Basic and Diluted Net Loss Per Share

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

	Three Months Ended				Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Denominator:
Weighted average shares of common stock outstanding		107,499		49,459		75,441		49,036
Less: shares of restricted stock subject to repurchase		—		—		—		—
Total common shares-basic		107,499		49,459		75,441		49,036
Effect of dilutive securities:
Options		—		—		—		—
Restricted stock awards and units		—		—		—		—
Total common shares-diluted		107,499		49,459		75,441		49,036

Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2020

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of Stock Option Activity

A summary of the stock option activity is presented below (in thousands, except per share amounts):

	Options Outstanding
	Number of Shares Subject to Options			Weighted Average Exercise Price Per Share
Balance at December 31, 2019		605		$	26.68
Options granted		—			—
Options assumed		175		$	49.24
Options exercised		—			—
Options canceled / forfeited / expired		(59	)	$	40.91
Balance at September 30, 2020		721		$	31.34

Summary of Restricted Stock Awards and Units

Information with respect to outstanding restricted stock awards and units as of September 30, 2020 is as follows (in thousands, except per share amounts):

	Restricted Stock and Restricted Stock Units
	Number of Shares Subject to Time- based Vesting			Number of Shares Subject to Performance- based Vesting			Total Number of Shares			Weighted Average Grant Date Fair Value Per Share
Balance at December 31, 2019		2,371			554			2,925		$	25.99
Awards and units granted		3,222			994			4,216		$	13.77
Awards and units assumed		2,185			253			2,438		$	13.99
Awards converted		107			(107	)		—		$	29.79
Awards and units vested / earned		(1,618	)		(390	)		(2,008	)	$	20.78
Awards and units canceled / forfeited		(414	)		(243	)		(657	)	$	21.15
Balance at September 30, 2020		5,853			1,061			6,914		$	16.28

Stock-Based Compensation Expense (Tables)

9 Months Ended

Sep. 30, 2020

Effect of Recording Stock-Based Compensation Expense

The effect of recording stock-based compensation (“SBC”) expense for the three and nine months ended September 30, 2020 and 2019 is as follows (in thousands):

	Three Months Ended						Nine Months Ended
	September 30, 2020			September 30, 2019			September 30, 2020			September 30, 2019
Cost of licensing, services and software revenue	$	258		$	—		$	332		$	—
Research, development and other related costs		3,580			3,544			9,454			10,293
Selling, general and administrative		6,319			4,444			16,828			12,539
Total stock-based compensation expense		10,157			7,988			26,614			22,832
Tax effect on stock-based compensation expense		(55	)		(1,269	)		(1,550	)		(3,654	)
Net effect on net loss	$	10,102		$	6,719		$	25,064		$	19,178

Stock-Based Compensation Expense Categorized by Equity Components

Stock-based compensation expense categorized by various equity components for the three and nine months ended September 30, 2020 and 2019 is summarized in the table below (in thousands):

	Three Months Ended				Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Restricted stock awards and units	$	9,734	$	7,362	$	25,175	$	21,013
Employee stock purchase plan		401		577		1,387		1,638
Employee stock options		22		49		52		181
Total stock-based compensation expense	$	10,157	$	7,988	$	26,614	$	22,832

Employee Stock Purchase Plan

Schedule of Assumptions Used to Value Options Granted

The following assumptions were used to value the ESPP shares for these grants:

	September 2020			February 2020			August 2019			February 2019
Expected life (years)		2.0			2.0			2.0			2.0
Risk-free interest rate		0.13	%		1.4	%		1.7	%		2.5	%
Dividend yield		1.4	%		4.0	%		3.5	%		5.4	%
Expected volatility		57.5	%		45.8	%		51.7	%		53.4	%

Restricted Stock Units

Schedule of Assumptions Used to Value Options Granted

The following assumptions were used to value the restricted stock units subject to market conditions granted in the three months ended September 30, 2020:

	July 2020
Expected life (years)		3.0
Risk-free interest rate		0.16	%
Dividend yield		1.4	%
Expected volatility		51.3	%

Leases (Tables)

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Schedule of Operating Lease Costs

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

	Three Months Ended					Nine Months Ended
	September 30, 2020			September 30, 2019		September 30, 2020			September 30, 2019
Fixed lease cost ⁽¹⁾	$	6,184		$	1,713	$	11,340		$	5,138
Variable lease cost		1,374			278		2,315			859
Less: sublease income		(2,452	)		—		(3,295	)		—
Total operating lease cost	$	5,106		$	1,991	$	10,360		$	5,997

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

Schedule of Other Information Related to Leases

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

	Three Months Ended,				Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	6,041	$	1,482	$	10,767	$	4,498
ROU assets obtained in exchange for new lease liabilities:
Operating leases	$	461	$	361	$	4,312	$	5,136

	September 30, 2020			December 31, 2019
Weighted-average remaining lease term (years):
Operating leases		5.4			4.6
Weighted-average discount rate:
Operating leases		5.2	%		5.7	%

Schedule of Future Minimum Lease Payments and Related Lease Liabilities

Future minimum lease payments and related lease liabilities as of September 30, 2020 were as follows (in thousands):

	Operating Lease Payments (1)			Sublease Income			Net Operating Lease Payments
2020 (remaining 3 months)	$	4,774		$	(1,647	)	$	3,127
2021		22,184			(6,257	)		15,927
2022		18,105			(6,117	)		11,988
2023		16,169			(6,231	)		9,938
2024		15,405			(6,293	)		9,112
Thereafter		23,451			(7,214	)		16,237
Total lease payments		100,088			(33,759	)		66,329
Less: imputed interest		(13,048	)		—			(13,048	)
Present value of lease liabilities:	$	87,040		$	(33,759	)	$	53,281

Less: current obligations under leases (accrued liabilities)		17,577
Noncurrent operating lease liabilities	$	69,463

(1) Future minimum lease payments exclude short-term leases as well as payments to landlords for variable common area maintenance, insurance and real estate taxes.

As of December 31, 2019, future minimum lease payments were as follows (in thousands):

	Operating Leases
2020	$	6,387
2021		4,558
2022		3,259
2023		3,235
2024		2,619
Thereafter		1,977
Total lease payments		22,035
Less: imputed interest		(2,776	)
Present value of lease liabilities:	$	19,259

Less: current obligations under leases (accrued liabilities)		5,845
Noncurrent operating lease liabilities	$	13,414

Segment and Geographic Information (Tables)

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Schedule of Segment Reporting Information by Segment

The following table sets forth the Company’s segment revenue, operating expenses and operating income (loss) for the three and nine months ended September 30, 2020 and 2019 (in thousands):

	Three Months Ended							Nine Months Ended
	September 30, 2020				September 30, 2019			September 30, 2020				September 30, 2019
Revenue:
Product segment	$	122,552			$	46,028		$	242,618			$	152,026
IP Licensing segment		80,245				11,839			215,475				37,523
Total revenue		202,797				57,867			458,093				189,549
Operating expenses:
Product segment		116,149				45,693			228,941				139,409
IP Licensing segment		40,020				10,113			70,765				29,859
Unallocated operating expenses (1)		65,591		(2)		27,588			170,542		(3)		84,121
Total operating expenses		221,760				83,394			470,248				253,389
Operating income (loss):
Product segment		6,403				335			13,677				12,617
IP Licensing segment		40,225				1,726			144,710				7,664
Unallocated operating expenses (1)		(65,591	)			(27,588	)		(170,542	)			(84,121	)
Total operating loss	$	(18,963	)		$	(25,527	)	$	(12,155	)		$	(63,840	)

(1)

(2)

Includes approximately $1.2 million in one-time transaction costs related to the Mergers and $3.6 million in post-merger severance and retention costs.

(3)

Includes approximately $29.1 million in one-time transaction costs related to the Mergers and $12.1 million in post-merger severance and retention costs.

Schedule of Geographic Revenue Information

The table below lists the geographic revenue for the periods indicated (in thousands):

	Three Months Ended								Nine Months Ended
	September 30, 2020				September 30, 2019				September 30, 2020				September 30, 2019
U.S.	$	125,753	62	%	$	9,733	17	%	$	191,847	42	%	$	33,740	18	%
Japan		19,107	10			18,368	32			84,461	18			69,427	37
South Korea		14,402	7			19,086	33			102,959	23			53,002	28
Canada		12,536	6			166	—			17,133	4			441	—
Europe and Middle East		10,606	5			4,780	8			22,035	5			15,243	8
Other		20,393	10			5,734	10			39,658	8			17,696	9
	$	202,797	100	%	$	57,867	100	%	$	458,093	100	%	$	189,549	100	%

The Company and Basis of Presentation - Narrative (Details) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2020 USD ($) Patent business segment $ / shares	Jun. 02, 2020 $ / shares	Dec. 31, 2019 USD ($) $ / shares	Mar. 31, 2019 USD ($)
Organization Consolidation And Presentation [Line Items]
Effective date of merger	Jun. 01, 2020
Common stock, par value (in dollars per share) \| $ / shares	$ 0.001	$ 0.001	$ 0.001
Number of principal businesses segment \| segment	2
Retained earnings	$ 89,709		$ 148,317
Current unbilled receivable	$ 164,138		$ 121,826
Out-of-Period Adjustment \| Accounting Standards Update 2014-09
Organization Consolidation And Presentation [Line Items]
Retained earnings				$ (2,900)
Current unbilled receivable				$ (2,900)
Perceive Corporation
Organization Consolidation And Presentation [Line Items]
Ownership interest, percentage	81.00%
Product Business And Intellectual Property Licensing Business
Organization Consolidation And Presentation [Line Items]
Number of principal businesses segment \| business	2
Minimum
Organization Consolidation And Presentation [Line Items]
Number of patents and applications \| Patent	11,000

Summary of Significant Accounting Policies - Additional Information (Details)	9 Months Ended
	Sep. 30, 2020
Summary of Significant Accounting Policies [Line Items]
Decline of royalty revenue in 2020	20.00%
Accounting Standards Update 2016-13
Summary of Significant Accounting Policies [Line Items]
Change in accounting principle, accounting standards update, adopted [true false]	true
Change in accounting principle accounting standards update adoption date	Jan. 01, 2020
Change in accounting principle, accounting standards update, immaterial effect [true false]	true
Accounting Standards Update 2018-15
Summary of Significant Accounting Policies [Line Items]
Change in accounting principle, accounting standards update, adopted [true false]	true
Change in accounting principle accounting standards update adoption date	Jan. 01, 2020
Change in accounting principle, accounting standards update, immaterial effect [true false]	true

- Definition

Indicates (true false) whether accounting standards update was adopted.

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- Definition

Date accounting standards update was adopted, in CCYY-MM-DD format.

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+ Details

Revenue - Narrative (Details)	9 Months Ended
Revenue - Narrative (Details)	Sep. 30, 2020 segment
Revenue Recognition [Line Items]
Number of operating segments	2
Right to cancel subscription, period	30 days
Maximum [Member]
Revenue Recognition [Line Items]
Practical expedient, timing of revenue recognition differs from the timing of cash collection, period	1 year
Revenue recognition practical expedient amortization period	1 year
Practical expedient revenue expected to be recognized from unsatisfied performance obligations, duration	1 year

Revenue - Schedule of Contract Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Revenue From Contract With Customer [Abstract]
Unbilled contracts receivable	$ 164,138	$ 121,826
Other current assets	566
Long-term unbilled contracts receivable	15,083	26,672
Other long-term assets	1,360
Total contract assets	$ 181,147	$ 148,498

Revenue - Schedule of Allowance for Credit Losses (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2020

Jun. 30, 2020

Dec. 31, 2019

Accounts Notes And Loans Receivable [Line Items]

Beginning balance

$ 3,624

$ 566

Balance at end of period

3,624

Accounts Receivable

Accounts Notes And Loans Receivable [Line Items]

Beginning balance

3,624

$ 2,469

$ 566

Provision for credit losses

^[1]

1,163

3,391

Recoveries/charged-off

(8)

(333)

Balance at end of period

3,624

Unbilled Contracts Receivable

Accounts Notes And Loans Receivable [Line Items]

Beginning balance

590

$ 357

Provision for credit losses

232

589

Recoveries/charged-off

Balance at end of period

$ 590

[1]	The increase in provision for credit losses was due to late payments and collection issues with certain of the Company’s customers in the third quarter of 2020.

Revenue - Schedule of Revenue Recognized in Period (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenue From Contract With Customer [Abstract]
Amounts included in deferred revenue at the beginning of the period	$ 12,364	$ 175	$ 50	$ 3,130
Performance obligations satisfied in previous periods (true ups, licensee reporting adjustments and settlements)	$ 12,232	$ 1,349	$ 66,454	$ 2,941

Revenue - Schedule of Remaining Performance Obligations (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Remaining performance obligations	$ 532,924	$ 6,672
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Remaining performance obligations		$ 5,337
Performance obligations expected to be satisfied, expected timing		1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-10-01
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Remaining performance obligations	$ 48,032
Performance obligations expected to be satisfied, expected timing	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Remaining performance obligations		$ 990
Performance obligations expected to be satisfied, expected timing		1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-10-01
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Remaining performance obligations	$ 145,813
Performance obligations expected to be satisfied, expected timing	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Remaining performance obligations		$ 345
Performance obligations expected to be satisfied, expected timing		1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-10-01
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Remaining performance obligations	$ 99,594
Performance obligations expected to be satisfied, expected timing	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-10-01
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Remaining performance obligations	$ 89,523
Performance obligations expected to be satisfied, expected timing	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-10-01
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Remaining performance obligations	$ 75,883
Performance obligations expected to be satisfied, expected timing	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-10-01
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Remaining performance obligations	$ 74,079
Performance obligations expected to be satisfied, expected timing

Revenue - Schedule of Remaining Performance Obligations (Details 1) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Revenue From Contract With Customer [Abstract]
Remaining performance obligations	$ 532,924	$ 6,672

Composition Of Certain Financial Statement Captions - Schedule of Other Current Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Prepaid income taxes	$ 3,895	$ 2,364
Prepaid expenses	21,707	8,802
Inventory	6,154	79
Other	4,328	2,490
Other current assets, total	$ 36,084	$ 13,735

Composition Of Certain Financial Statement Captions - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 108,124	$ 64,165
Less: accumulated depreciation and amortization	(42,692)	(31,288)
Property and equipment, net	65,432	32,877
Equipment, furniture and other
Property, Plant and Equipment [Line Items]
Property and equipment, gross	58,366	32,504
Building and improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	18,309	18,258
Land
Property, Plant and Equipment [Line Items]
Property and equipment, gross	5,300	5,300
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 26,149	$ 8,103

Composition Of Certain Financial Statement Captions - Schedule of Other Long Term Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Non-current income tax receivable	$ 109,745	$ 64,570
Long-term deferred tax assets	5,735	3,660
Other assets	20,915	3,106
Other long-term assets, total	$ 136,395	$ 71,336

Composition Of Certain Financial Statement Captions -Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Employee compensation and benefits	$ 35,819	$ 18,404
Accrued expenses	22,367	7,930
Current portion of operating lease liabilities	17,577	5,845
Accrued severance	6,695
Third-party royalties	3,775	6,165
Other	12,529	3,089
Accrued liabilities, total	$ 98,762	$ 41,433

Composition of Certain Financial Statement Captions - Schedule of Other Long-Term Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Long-term income tax payable	$ 91,676	$ 76,767
Other	3,961	131
Other long-term liabilities, total	$ 95,637	$ 76,898

Composition Of Certain Financial Statement Captions - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Foreign currency translation adjustment, net of tax	$ 895
Unrealized loss on available-for-sale debt securities, net of tax	(76)	$ (53)
Accumulated other comprehensive income (loss)	$ 819	$ (53)

- Definition

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.

+ References + Details

Composition Of Certain Financial Statement Captions - Schedule of Other Income and Expense, Net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Disaggregation of Revenue [Line Items]
Interest income from significant financing components under Topic 606	$ 202,797	$ 57,867	$ 458,093	$ 189,549
Interest income from investments	456	420	1,248	1,702
Unrealized/realized gain (loss) on marketable equity securities		(1,060)	(707)	563
Other income/(expense), net	1,302	163	664	646
Other income and expense, net	2,305	429	3,448	7,537
Financing
Disaggregation of Revenue [Line Items]
Interest income from significant financing components under Topic 606	$ 547	$ 906	$ 2,243	$ 4,626

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

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-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 9: 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 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Financial Instruments - Summary of Marketable Securities (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Marketable Securities [Line Items]
Debt securities, Cost	$ 87,262,000	$ 45,782,000
Debt securities, Gross Unrealized Gains	61,000	33,000
Debt securities, Gross Unrealized Losses	(65,000)	(13,000)
Debt securities, Allowance for Credit Losses	0
Debt securities, Estimated Fair Values	87,258,000	45,802,000
Equity securities, Cost	4,771,000	6,006,000
Equity securities, Gross Unrealized Gains	0	0
Equity securities, Gross Unrealized Losses	0	(2,281,000)
Equity securities, Allowance for Credit Losses	0
Equity securities, Estimated Fair Values	4,771,000	3,725,000
Marketable securities, Cost	92,033,000	51,788,000
Marketable securities, Gross Unrealized Gains	61,000	33,000
Marketable securities, Gross Unrealized Losses	(65,000)	(2,294,000)
Marketable securities, Allowance for Credit Losses	0
Marketable securities, Estimated Fair Values	92,029,000	49,527,000
Corporate bonds and notes
Marketable Securities [Line Items]
Debt securities, Cost	72,273,000	41,730,000
Debt securities, Gross Unrealized Gains	61,000	29,000
Debt securities, Gross Unrealized Losses	(62,000)	(13,000)
Debt securities, Allowance for Credit Losses	0
Debt securities, Estimated Fair Values	72,272,000	41,746,000
Treasury and agency notes and bills
Marketable Securities [Line Items]
Debt securities, Cost	4,999,000
Debt securities, Gross Unrealized Gains	0
Debt securities, Gross Unrealized Losses	(1,000)
Debt securities, Allowance for Credit Losses	0
Debt securities, Estimated Fair Values	4,998,000
Commercial paper
Marketable Securities [Line Items]
Debt securities, Cost	9,990,000	4,052,000
Debt securities, Gross Unrealized Gains	0	4,000
Debt securities, Gross Unrealized Losses	(2,000)	0
Debt securities, Allowance for Credit Losses	0
Debt securities, Estimated Fair Values	9,988,000	4,056,000
Marketable equity securities
Marketable Securities [Line Items]
Equity securities, Cost		3,405,000
Equity securities, Gross Unrealized Gains		0
Equity securities, Gross Unrealized Losses		(2,281,000)
Equity securities, Estimated Fair Values		1,124,000
Money market funds
Marketable Securities [Line Items]
Equity securities, Cost	4,771,000	2,601,000
Equity securities, Gross Unrealized Gains	0	0
Equity securities, Gross Unrealized Losses	0	0
Equity securities, Allowance for Credit Losses	0
Equity securities, Estimated Fair Values	4,771,000	2,601,000
Cash and cash equivalents
Marketable Securities [Line Items]
Marketable securities, Estimated Fair Values	4,771,000	2,601,000
Available-for-sale debt securities
Marketable Securities [Line Items]
Marketable securities, Estimated Fair Values	$ 87,258,000	45,802,000
Equity Securities
Marketable Securities [Line Items]
Marketable securities, Estimated Fair Values		$ 1,124,000

Financial Instruments - Additional Information (Details) - USD ($)		1 Months Ended		3 Months Ended		9 Months Ended
	Sep. 19, 2018	Jun. 30, 2020	Jul. 31, 2019	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Schedule Of Investments [Line Items]
Cash, cash equivalents and short -term investments				$ 203,000,000.0		$ 203,000,000.0		$ 121,500,000
Gross realized gains and losses on sales of marketable securities				0	$ 0	0	$ 0
Unrealized losses net of tax on available-for-sale debt securities				100,000		100,000		100,000
Impairment charges related to marketable debt securities					$ 0		$ 0
Provision for credit loss expense related available for sale debt securities				0		0
Non-marketable Equity Securities \| TiVo Merger
Schedule Of Investments [Line Items]
Equity securities accounted for under equity method				4,100,000		4,100,000
Equity securities without a readily determinable fair value				100,000		100,000
Non-marketable equity securities, without a readily determinable fair value, impairments or adjustments				0		0
Onkyo Corporation
Schedule Of Investments [Line Items]
Number of common shares purchased	7,000,000.0
Ownership interest, percentage	6.30%
Number of investment shares sold		4,200,000	2,800,000
Equity securities, realized gains (loss) on sales			$ 900,000			(700,000)
Operating Accounts
Schedule Of Investments [Line Items]
Cash, cash equivalents and short -term investments				$ 111,000,000.0		$ 111,000,000.0		$ 72,000,000.0

Financial Instruments - Fair Value and Gross Unrealized Losses Related to Individual Available-for-Sale Debt Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value	$ 67,919	$ 20,031
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Gross Unrealized Losses	(65)	(10)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 months or more, Fair Value	0	8,753
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 months or more, Gross Unrealized Losses	0	(3)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	67,919	28,784
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses	(65)	(13)
Corporate bonds and notes
Debt Securities, Available-for-sale [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value	52,933	20,031
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Gross Unrealized Losses	(62)	(10)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 months or more, Fair Value	0	8,753
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 months or more, Gross Unrealized Losses	0	(3)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	52,933	28,784
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses	(62)	$ (13)
Treasury and agency notes and bills
Debt Securities, Available-for-sale [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value	4,998
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Gross Unrealized Losses	(1)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 months or more, Fair Value	0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 months or more, Gross Unrealized Losses	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	4,998
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses	(1)
Commercial paper
Debt Securities, Available-for-sale [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value	9,988
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Gross Unrealized Losses	(2)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 months or more, Fair Value	0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 months or more, Gross Unrealized Losses	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	9,988
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses	$ (2)

Financial Instruments - Estimated Fair Value of Marketable Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Investments Debt And Equity Securities [Abstract]
Due in one year or less	$ 47,005
Due in one to two years	40,253
Total	$ 87,258	$ 45,802

Fair Value - Schedule of Carrying Amounts and Estimated Fair Values (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Dec. 01, 2016
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total long-term debt, net - Carrying Amount	$ 1,000,234	$ 334,679
2021 Convertible Notes
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total long-term debt, net - Carrying Amount	1,036,900
2018 Amended Term B Loan
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total long-term debt, net - Carrying Amount			$ 600,000
Recurring
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total long-term debt, net - Carrying Amount	1,000,234	334,679
Total long-term debt, net - Estimated Fair Value	978,200	335,642
Recurring \| 2020 Term B Loan Facility
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total long-term debt, net - Carrying Amount	1,000,186	0
Total long-term debt, net - Estimated Fair Value	978,152	0
Recurring \| 2021 Convertible Notes
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total long-term debt, net - Carrying Amount	48	0
Total long-term debt, net - Estimated Fair Value	48	0
Recurring \| 2018 Amended Term B Loan
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total long-term debt, net - Carrying Amount	0	334,679
Total long-term debt, net - Estimated Fair Value	$ 0	$ 335,642

Fair Value - Schedule of Carrying Amounts and Estimated Fair Values (Parenthetical) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Unamortized debt issuance costs	$ 36,689	$ 9,321
Term B Loan Facility
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Unamortized debt issuance costs	$ 36,700	$ 9,300

Business Combination - Additional Information (Details) $ / shares in Units, $ in Thousands		3 Months Ended		9 Months Ended
	Jun. 01, 2020 USD ($) $ / shares	Sep. 30, 2020 USD ($) $ / shares	Sep. 30, 2019 USD ($)	Sep. 30, 2020 USD ($) $ / shares	Sep. 30, 2019 USD ($)	Jun. 02, 2020 $ / shares	Dec. 31, 2019 $ / shares
Business Acquisition [Line Items]
Common stock, par value \| $ / shares		$ 0.001		$ 0.001		$ 0.001	$ 0.001
Total revenue		$ 202,797	$ 57,867	$ 458,093	$ 189,549
Operating income		(18,963)	$ (25,527)	(12,155)	$ (63,840)
Post-merger severance cost		3,600		$ 12,100
Xperi
Business Acquisition [Line Items]
Common stock, conversion ratio	1
TiVo
Business Acquisition [Line Items]
Common stock, conversion ratio	0.455
TiVo Merger
Business Acquisition [Line Items]
Merger effective date				Jun. 01, 2020
Merger agreement date				Dec. 18, 2019
Merger agreement amended date				Jan. 31, 2020
Common stock, par value \| $ / shares	$ 0.001
Common stock, conversion ratio	1
Merger consideration	$ 828,334
Unvested equity incentive awards assumed, fair value	34,100
Unvested equity incentive awards assumed, pre-acquisition services	12,100
Unvested equity incentive awards assumed, post-acquisition services	$ 22,000
Estimated weighted average remaining service period	2 years 6 months
Goodwill expected to be deductible for tax purposes	$ 16,400
Total revenue		159,000		$ 211,800
Operating income		28,900		20,900
Transaction related costs		1,200		29,100
Lease impairment charges		700		700
Post-merger severance cost		$ 3,600		$ 12,100
TiVo Merger \| 2019 Term Loan
Business Acquisition [Line Items]
Percentage of prepayment premium				3.00%
Percentage of prepayment penalty				3.00%
TiVo Merger \| Xperi
Business Acquisition [Line Items]
Common stock, par value \| $ / shares	$ 0.001
TiVo Merger \| TiVo
Business Acquisition [Line Items]
Common stock, par value \| $ / shares	$ 0.001
Common stock, conversion ratio	0.455

Business Combination - Schedule of Merger Consideration (Details) $ / shares in Units, $ in Thousands	Jun. 01, 2020 USD ($) $ / shares shares	Sep. 30, 2020 shares	Dec. 31, 2019 shares
Business Acquisition [Line Items]
TiVo common shares outstanding as of June 1, 2020 \| shares		105,692,000	49,620,000
TiVo Merger
Business Acquisition [Line Items]
TiVo exchange ratio	1
Equity interests issued and issuable \| $	$ 816,201
Fair value of replaced TiVo equity awards relating to pre-acquisition vesting of the equity award holders’ requisite service periods \| $	12,133
Total merger consideration \| $	$ 828,334
TiVo
Business Acquisition [Line Items]
TiVo exchange ratio	0.455
TiVo \| TiVo Merger
Business Acquisition [Line Items]
TiVo common shares outstanding as of June 1, 2020 \| shares	128,132,000
TiVo exchange ratio	0.455
Xperi
Business Acquisition [Line Items]
TiVo exchange ratio	1
Xperi \| TiVo Merger
Business Acquisition [Line Items]
Xperi Holding Corporation common stock issued in exchange \| shares	58,300,000
Xperi Common Stock closing share price on June 1, 2020 \| $ / shares	$ 14.00

Business Combination - Schedule of Preliminary Fair Value that Allocated to Assets and Liabilities (Details) - USD ($) $ in Thousands		9 Months Ended
	Jun. 01, 2020	Sep. 30, 2020	Dec. 31, 2019
Identifiable intangible assets:
Goodwill		$ 846,913	$ 385,784
Trademarks and tradenames \| Minimum
Business Acquisition [Line Items]
Estimated Useful Life (years)		4 years
Trademarks and tradenames \| Maximum [Member]
Business Acquisition [Line Items]
Estimated Useful Life (years)		10 years
TiVo Merger
Business Acquisition [Line Items]
Cash and cash equivalents	$ 117,424
Accounts receivable	105,778
Unbilled contracts receivable	69,058
Other current assets	21,690
Long-term unbilled contracts receivable	129
Property and equipment	41,307
Operating lease right-of-use assets	71,444
Identifiable intangible assets:
Total identifiable intangible assets	878,000
Goodwill	461,129
Other long-term assets	43,700
Accounts payable	(13,258)
Accrued legal fees	(5,619)
Accrued liabilities	(79,071)
Current portion of deferred revenue	(29,291)
Current portion of long-term debt	(734,609)
Deferred revenue, less current portion	(24,319)
Long-term deferred tax liabilities	(27,949)
Long-term debt	(48)
Noncurrent operating lease liabilities	(59,291)
Other long-term liabilities	(7,870)
Total purchase price	$ 828,334
TiVo Merger \| Patents
Business Acquisition [Line Items]
Estimated Useful Life (years)	10 years
Identifiable intangible assets:
Total identifiable intangible assets	$ 457,400
TiVo Merger \| Customer contracts and related relationships
Identifiable intangible assets:
Total identifiable intangible assets	$ 358,200
TiVo Merger \| Customer contracts and related relationships \| Minimum
Business Acquisition [Line Items]
Estimated Useful Life (years)	4 years
TiVo Merger \| Customer contracts and related relationships \| Maximum [Member]
Business Acquisition [Line Items]
Estimated Useful Life (years)	9 years
TiVo Merger \| Developed technology
Business Acquisition [Line Items]
Estimated Useful Life (years)	5 years
Identifiable intangible assets:
Total identifiable intangible assets	$ 34,800
TiVo Merger \| Content database
Business Acquisition [Line Items]
Estimated Useful Life (years)	9 years
Identifiable intangible assets:
Total identifiable intangible assets	$ 6,200
TiVo Merger \| Trademarks and tradenames
Identifiable intangible assets:
Total identifiable intangible assets	$ 21,400

Business Combination - Schedule of Unaudited Pro Forma Financial Information (Details) - TiVo Merger - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Business Acquisition [Line Items]
Revenue	$ 202,797	$ 214,610	$ 708,675	$ 676,888
Net income (loss) attributable to Xperi Holding Corporation	$ (23,085)	$ (193,898)	$ (145,649)	$ (337,906)

Business Combination - Schedule of Unaudited Supplemental Pro Forma Information and Adjustments of Mergers (Details) - TiVo Merger - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Adjustments Resulting From Purchase Accounting
Business Acquisition Pro Forma Information Nonrecurring Adjustment [Line Items]
Estimated increase (decrease) to earnings		$ (1,781)	$ (4,823)	$ (5,592)
Adjustments For Transaction Related Costs
Business Acquisition Pro Forma Information Nonrecurring Adjustment [Line Items]
Estimated increase (decrease) to earnings	$ 1,187		31,835	(21,918)
Adjustments For Stock-based Compensation Expense
Business Acquisition Pro Forma Information Nonrecurring Adjustment [Line Items]
Estimated increase (decrease) to earnings		524	3,436	(1,260)
Adjustments for Severance and Retention Costs
Business Acquisition Pro Forma Information Nonrecurring Adjustment [Line Items]
Estimated increase (decrease) to earnings	3,591	(1,710)	10,254	(13,696)
Payoff of Historical Debt and New Debt Financing
Business Acquisition Pro Forma Information Nonrecurring Adjustment [Line Items]
Estimated increase (decrease) to earnings	1,116	(3,693)	21,867	(20,401)
Adjustments For Income Taxes
Business Acquisition Pro Forma Information Nonrecurring Adjustment [Line Items]
Estimated increase (decrease) to earnings	$ 117	$ (19,884)	$ 16,374	$ (39,161)

Goodwill and Identified Intangible Assets - Summary of Changes to Carrying Value of Goodwill (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2020 USD ($)
Goodwill [Line Items]
December 31, 2019	$ 385,784
Goodwill acquired through the Mergers	461,129
September 30, 2020	846,913
Product
Goodwill [Line Items]
December 31, 2019	378,084
Goodwill acquired through the Mergers	146,061
September 30, 2020	524,145
IP Licensing
Goodwill [Line Items]
December 31, 2019	7,700
Goodwill acquired through the Mergers	315,068
September 30, 2020	$ 322,768

Goodwill and Identified Intangible Assets - Summary of Changes to Carrying Value of Goodwill (Parenthetical) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 01, 2020	Dec. 31, 2019
Goodwill [Line Items]
Goodwill	$ 846,913		$ 385,784
TiVo Merger
Goodwill [Line Items]
Goodwill		$ 461,129

Goodwill and Identified Intangible Assets - Additional Information (Details)	3 Months Ended
	Sep. 30, 2020 USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill impairment charges	$ 0

Goodwill and Identified Intangible Assets - Identified Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 1,570,837	$ 692,145
Finite-lived intangible assets, Gross Assets	1,549,437	692,145
Finite-lived intangible assets, Accumulated Amortization	(565,315)	(459,870)
Intangible assets, net	1,005,522	232,275
Finite-lived intangible assets, Net	984,122	232,275
TiVo Tradename/trademarks
Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets, Gross Assets	21,400
Indefinite-lived intangible assets, Net	21,400
Acquired patents / core technology
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, Gross Assets	609,085	151,184
Finite-lived intangible assets, Accumulated Amortization	(154,418)	(135,952)
Finite-lived intangible assets, Net	$ 454,667	15,232
Acquired patents / core technology \| Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life (years)	3 years
Acquired patents / core technology \| Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life (years)	15 years
Existing technology / content database
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, Gross Assets	$ 247,959	206,878
Finite-lived intangible assets, Accumulated Amortization	(159,430)	(130,890)
Finite-lived intangible assets, Net	$ 88,529	75,988
Existing technology / content database \| Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life (years)	5 years
Existing technology / content database \| Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life (years)	10 years
Customer contracts and related relationships
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, Gross Assets	$ 650,079	291,769
Finite-lived intangible assets, Accumulated Amortization	(229,450)	(174,741)
Finite-lived intangible assets, Net	$ 420,629	117,028
Customer contracts and related relationships \| Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life (years)	3 years
Customer contracts and related relationships \| Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life (years)	9 years
Trademarks/trade name
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, Gross Assets	$ 40,083	40,083
Finite-lived intangible assets, Accumulated Amortization	(19,786)	(16,056)
Finite-lived intangible assets, Net	$ 20,297	24,027
Trademarks/trade name \| Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life (years)	4 years
Trademarks/trade name \| Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life (years)	10 years
Non-competition agreements
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, Gross Assets	$ 2,231	2,231
Finite-lived intangible assets, Accumulated Amortization	$ (2,231)	(2,231)
Estimated Useful Life (years)	1 year
Finite-lived intangible assets, Net		$ 0

Goodwill and Identified Intangible Assets - Identified Intangible Assets (Parenthetical) (Details) - TiVo Merger $ in Millions	6 Months Ended
	Jun. 30, 2020 USD ($)
TiVo Tradename/trademarks
Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets acquired	$ 21.4
Patents
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets acquired	457.4
Developed technology
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets acquired	34.8
Content database
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets acquired	6.2
Customer contracts and related relationships
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets acquired	$ 358.2

Goodwill and Identified Intangible Assets - Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
2020 (remaining 3 months)	$ 50,257
2021	195,771
2022	147,332
2023	136,452
2024	97,647
Thereafter	356,663
Finite-lived intangible assets, Net	$ 984,122	$ 232,275

Debt - Schedule of Outstanding Amounts of Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 01, 2020	Dec. 31, 2019	Dec. 01, 2016
Line Of Credit Facility [Line Items]
Long-term debt, Gross	$ 1,036,923
Unamortized debt issuance costs	(36,689)		$ (9,321)
Long-term debt	1,000,234		334,679
Less: current portion, net of debt issuance costs	(43,704)		0
Long-term debt, net	956,530		334,679
2020 Term B Loan Facility
Line Of Credit Facility [Line Items]
Long-term debt, Gross	1,036,875
Unamortized debt issuance costs		$ (39,700)
2021 Convertible Notes
Line Of Credit Facility [Line Items]
Long-term debt, Gross	48
Long-term debt	$ 1,036,900
2018 Amended Term B Loan
Line Of Credit Facility [Line Items]
Long-term debt, Gross			$ 344,000
Long-term debt				$ 600,000

Debt - Narrative (Details) - USD ($)				3 Months Ended			9 Months Ended		12 Months Ended
Debt - Narrative (Details) - USD ($)	Jun. 01, 2020	Jan. 23, 2018	Dec. 01, 2016	Sep. 30, 2020	Jun. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Line Of Credit Facility [Line Items]
Repayment of assumed debt from merger transaction							$ 734,609,000	$ 0
Unamortized debt issuance costs				$ 36,689,000			36,689,000		$ 9,321,000
Borrowings				1,000,234,000			1,000,234,000		334,679,000
Voluntary prepayment against the term loan							357,125,000	100,000,000
Loss on debt extinguishment							8,300,000	0
Unamortized debt issuance costs				36,689,000			36,689,000		9,321,000
Interest expense				13,393,000		$ 5,506,000	24,602,000	18,390,000
TiVo Merger
Line Of Credit Facility [Line Items]
Debt assumed	$ 48,000
2020 Term B Loan Facility
Line Of Credit Facility [Line Items]
Loan facility, term	5 years
Borrowing capacity	$ 1,050,000,000
Debt instrument, maturity date	Jun. 01, 2025
Repayment of assumed debt from merger transaction	$ 734,600,000
Unamortized debt issuance costs	39,700,000
Repayments of Long-term Debt	344,000,000.0
Loss on debt extinguishment					$ 8,300,000
Unamortized debt issuance costs	$ 39,700,000
2020 Term B Loan Facility \| Repayments Prior to June 1, 2023
Line Of Credit Facility [Line Items]
Interest rate on original principal amount	1.25%
2020 Term B Loan Facility \| Repayments After June 1, 2023 and Prior to June 1, 2025
Line Of Credit Facility [Line Items]
Interest rate on original principal amount	1.875%
2020 Term B Loan Facility \| Base Rate
Line Of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	3.00%
2020 Term B Loan Facility \| London Interbank Offered Rate (LIBOR)
Line Of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	4.00%
2018 Amended Term B Loan
Line Of Credit Facility [Line Items]
Borrowing capacity		$ 494,000,000.0	$ 600,000,000.0
Debt instrument, maturity date			Nov. 30, 2023
Borrowings			$ 600,000,000.0
Voluntary prepayment against the term loan		$ 100,000,000.0							$ 150,000,000.0
Debt instrument, prepayment premium		1.00%
2018 Amended Term B Loan \| Royal Bank of Canada
Line Of Credit Facility [Line Items]
Loan facility, term			7 years
Borrowing capacity			$ 600,000,000.0
2018 Amended Term B Loan \| Base Rate
Line Of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate		1.50%
2018 Amended Term B Loan \| Eurodollar
Line Of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate		2.50%
2019 Term Loan \| TiVo Merger
Line Of Credit Facility [Line Items]
Debt instrument, maturity date	Nov. 22, 2024
Debt instrument, prepayment premium	3.00%
Outstanding borrowings	$ 715,000,000.0
Repayment of debt and prepayment penalty	$ 734,600,000
2021 Convertible Notes
Line Of Credit Facility [Line Items]
Borrowings				$ 1,036,900,000			$ 1,036,900,000
Interest rate				5.10%			5.10%
Interest expense				$ 13,400,000		5,500,000	$ 24,600,000	18,400,000
Amortization of debt issuance costs				$ 2,300,000		$ 600,000	$ 4,000,000.0	$ 1,900,000
2021 Convertible Notes \| TiVo Merger
Line Of Credit Facility [Line Items]
Interest rate	2.00%
Debt assumed	$ 48,000.0

Debt - Summarize of Future Minimum Principal Payments for Long-term Debt (Details) $ in Thousands	Sep. 30, 2020 USD ($)
Debt Disclosure [Abstract]
2020 (remaining 3 months)	$ 13,125
2021	52,548
2022	52,500
2023	72,188
2024	78,750
Thereafter	767,812
Total	$ 1,036,923

Net Loss Per Share - Computation of Basic and Diluted Net Loss Per Share (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Denominator:
Weighted average shares of common stock outstanding	107,499	49,459	75,441	49,036
Less: shares of restricted stock subject to repurchase (in shares)	0	0	0	0
Total common shares-basic (in shares)	107,499	49,459	75,441	49,036
Effect of dilutive securities:
Options (in shares)	0	0	0	0
Restricted stock awards and units (in shares)	0	0	0	0
Total common shares-diluted (in shares)	107,499	49,459	75,441	49,036

Net Loss Per Share - Additional Information (Details) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Earnings Per Share [Abstract]
Shares of common stock excluded from the computation of net income (loss) per share	5.6	2.5	4.0	1.5

Stockholders' Equity - Additional Information (Details)		3 Months Ended		9 Months Ended
Stockholders' Equity - Additional Information (Details)	Jun. 01, 2020 shares	Sep. 30, 2020 USD ($) shares	Sep. 30, 2019 USD ($) shares	Sep. 30, 2020 USD ($) $ / shares shares	Sep. 30, 2019 USD ($) shares	Jun. 12, 2020 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock conversion terms				Upon completion of the Mergers, each share of common stock of Xperi was converted into the right to receive one fully paid and non-assessable share of Company Common Stock. Further upon completion of the Mergers, each share of TiVo Common Stock was converted into the right to receive 0.455 fully paid and non-assessable shares of the Company Common Stock (the “Exchange Ratio”), in addition to cash in lieu of any fractional shares of the Company Common Stock.
Stock repurchase program, authorized amount \| $						$ 150,000,000.0
Treasury stock, total repurchase during period (in shares)				3,900,000
Treasury stock, average price of share repurchased (in dollars per share) \| $ / shares				$ 12.81
Treasury stock, total cost of repurchased stock \| $		$ 35,086,000		$ 50,085,000
Stock repurchase program, remaining amount available for repurchase \| $		$ 99,900,000		$ 99,900,000
Tax withholding on restricted stock units (in shares)		200,000	100,000	600,000	200,000
Tax withholding on restricted stock units \| $		$ 3,300,000	$ 100,000	$ 9,200,000	$ 4,300,000
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for grant (in shares)		2,000,000.0		2,000,000.0
Expiration period				24 months
Rolling expiration period				24 months
Maximum employee subscription rate		100.00%		100.00%
Purchase price of common stock, percent				85.00%
Maximum employee subscription amount \| $		$ 25,000		$ 25,000
Performance Shares \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance awards, percentage of grant available to vest				0.00%
Performance Shares \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance awards, percentage of grant available to vest				200.00%
Xperi Corporation Seventh Amended and Restated 2003 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for grant (in shares)	0
2020 EIP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period				10 years
Vesting period				4 years
Share based compensation full value awards counted against shares available for issuance ratio				1.5
Number of shares reserved for issuance		8,000,000		8,000,000
2020 EIP \| Time-based Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				4 years
2020 EIP \| Employee Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for grant (in shares)		3,200,000		3,200,000
Assumed Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for grant (in shares)		7,400,000		7,400,000
Expiration period	7 years
Vesting period	4 years
Assumed Plans \| Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Xperi
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, conversion ratio	1
TiVo
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, conversion ratio	0.455

Stockholders' Equity - Summary of Stock Option Activity (Details) shares in Thousands	9 Months Ended
	Sep. 30, 2020 $ / shares shares
Number of Shares Subject to Options
Number of Shares, Beginning balance (shares) \| shares	605
Number of Shares, Options granted (shares) \| shares	0
Number of Shares, Options assumed (shares) \| shares	175
Number of Shares, Options exercised (shares) \| shares	0
Number of Shares, Options canceled / forfeited / expired (shares) \| shares	(59)
Number of Shares, Ending balance (shares) \| shares	721
Weighted Average Exercise Price Per Share
Weighted Average Exercise Price Per Share, Beginning balance (USD per share) \| $ / shares	$ 26.68
Weighted Average Exercise Price Per Share, Options granted (USD per share) \| $ / shares	0
Weighted Average Exercise Price Per Share, Options assumed (USD per share) \| $ / shares	49.24
Weighted Average Exercise Price Per Share, Options exercised (USD per share) \| $ / shares	0
Weighted Average Exercise Price Per Share, Options canceled / forfeited / expired (USD per share) \| $ / shares	40.91
Weighted Average Exercise Price Per Share, Ending balance (USD per share) \| $ / shares	$ 31.34

Stockholders' Equity - Summary of Restricted Stock Awards and Units (Details)	9 Months Ended
	Sep. 30, 2020 $ / shares shares
Time-Based Restricted Stock Award and Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Restricted stock awards and units, beginning balance (shares)	2,371,000
Restricted stock awards and units, granted (shares)	3,222,000
Restricted stock awards and units, assumed (shares)	2,185,000
Restricted stock awards, converted	107,000
Restricted stock awards and units, vested / earned (shares)	(1,618,000)
Restricted stock awards and units, canceled / forfeited (shares)	(414,000)
Restricted stock awards and units, ending balance (shares)	5,853,000
Performance-Based Restricted Stock Award and Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Restricted stock awards and units, beginning balance (shares)	554,000
Restricted stock awards and units, granted (shares)	994,000
Restricted stock awards and units, assumed (shares)	253,000
Restricted stock awards, converted	(107,000)
Restricted stock awards and units, vested / earned (shares)	(390,000)
Restricted stock awards and units, canceled / forfeited (shares)	(243,000)
Restricted stock awards and units, ending balance (shares)	1,061,000
Restricted Stock and Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Restricted stock awards and units, beginning balance (shares)	2,925,000
Restricted stock awards and units, granted (shares)	4,216,000
Restricted stock awards and units, assumed (shares)	2,438,000
Restricted stock awards, converted	0
Restricted stock awards and units, vested / earned (shares)	(2,008,000)
Restricted stock awards and units, canceled / forfeited (shares)	(657,000)
Restricted stock awards and units, ending balance (shares)	6,914,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Weighted average grant date fair value per share of restricted stock and units, beginning balance (USD per share) \| $ / shares	$ 25.99
Weighted average grant date fair value per share of restricted stock and units, granted (USD per share) \| $ / shares	$ 13.77
Weighted average grant date fair value per share of restricted stock and units, assumed (USD per share)	13.99
Weighted average grant date fair value per share of restricted stock and units, converted(USD per share) \| $ / shares	$ 29.79
Weighted average grant date fair value per share of restricted stock and units, vested / earned (USD per share) \| $ / shares	20.78
Weighted average grant date fair value of restricted stock and units, canceled / forfeited (USD per share) \| $ / shares	21.15
Weighted average grant date fair value per share of restricted stock and units, ending balance (USD per share) \| $ / shares	$ 16.28

Stock-Based Compensation Expense - Effect of Recording Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 10,157	$ 7,988	$ 26,614	$ 22,832
Tax effect on stock-based compensation expense	(55)	(1,269)	(1,550)	(3,654)
Net effect on net loss	10,102	6,719	25,064	19,178
Cost of licensing, services and software revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	258		332
Research, development and other related costs
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	3,580	3,544	9,454	10,293
Selling, general and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 6,319	$ 4,444	$ 16,828	$ 12,539

Stock-Based Compensation Expense - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Jun. 01, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of unvested equity awards assumed					$ 34.1
Number of shares, options granted	0	0	0	0
TiVo Merger
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of unvested equity awards assumed					$ 22.0
Recognized stock based compensation expense of unvested equity awards assumed	$ 1.9		$ 4.1

Stock-Based Compensation Expense - Stock-Based Compensation Expense Categorized by Equity Components (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 10,157	$ 7,988	$ 26,614	$ 22,832
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	401	577	1,387	1,638
Employee stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	22	49	52	181
Restricted stock awards and units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 9,734	$ 7,362	$ 25,175	$ 21,013

Stock-Based Compensation Expense - Schedule of Assumptions Used to Value Options Granted (Details)	1 Months Ended
	Sep. 30, 2020	Jul. 31, 2020	Feb. 29, 2020	Aug. 31, 2019	Feb. 28, 2019
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected life (in years)	2 years		2 years	2 years	2 years
Risk-free interest rate	0.13%		1.40%	1.70%	2.50%
Dividend yield	1.40%		4.00%	3.50%	5.40%
Expected volatility	57.50%		45.80%	51.70%	53.40%
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected life (in years)		3 years
Risk-free interest rate		0.16%
Dividend yield		1.40%
Expected volatility		51.30%

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended			4 Months Ended	5 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Sep. 30, 2020	May 31, 2020	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Income Tax Contingency [Line Items]
Provision for (benefit from) income taxes	$ 482		$ (14,583)	$ 5,400	$ (12,200)	$ (6,761)	$ (27,080)
Effective tax rate (percent)						16.30%	36.30%
Loss before taxes	(30,100)		(30,600)			$ (41,600)	$ (74,700)
Income tax receivable, noncurrent	109,745	$ 64,570		109,745		109,745		$ 64,570
Gross unrecognized tax benefits	181,700		34,100	181,700		181,700	34,100
Unrecognized tax benefits that would impact the effective income tax rate	97,300		$ 21,300	97,300		97,300	$ 21,300
Interest and tax penalties related to unrecognized tax benefits						2,200		1,200
South Korea and Other Business Factors
Income Tax Contingency [Line Items]
Income tax receivable, noncurrent	13,700	65,200		13,700		13,700		65,200
Valuation allowance change in amount		(17,000)				(5,000)
Unrealized foreign exchange loss						1,200
South Korea and Other Business Factors \| TiVo Merger
Income Tax Contingency [Line Items]
Provision for (benefit from) income taxes	(19,800)
Income tax receivable, noncurrent	31,900			31,900		31,900
Valuation allowance change in amount						(15,500)
Other Long-Term Liabilities \| South Korea and Other Business Factors
Income Tax Contingency [Line Items]
Unrecognized tax benefit, non-current	$ 8,400	$ 48,200		$ 8,400		$ 8,400		$ 48,200

Leases - Additional Information (Details)	9 Months Ended
Leases - Additional Information (Details)	Sep. 30, 2020
Lessee Lease Description [Line Items]
Operating lease existence of option to extend	true
Operating lease description	The Company’s leases have remaining lease terms of one year to nine years, some of which may include options to extend the leases for five years or longer, and some of which may include options to terminate the leases within the next 6 years or less. Leases with an initial term of 12 months or less are not recorded on the balance sheets
Minimum
Lessee Lease Description [Line Items]
Remaining lease term	1 year
Lessee term of period to extend	5 years
Maximum
Lessee Lease Description [Line Items]
Remaining lease term	9 years

Leases - Schedule of Operating Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Leases [Abstract]
Fixed lease cost	$ 6,184	$ 1,713	$ 11,340	$ 5,138
Variable lease cost	1,374	278	2,315	859
Less: sublease income	(2,452)		(3,295)
Total operating lease cost	$ 5,106	$ 1,991	$ 10,360	$ 5,997

Leases - Schedule of Other Information Related to Leases (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Leases [Abstract]
Operating cash flows from operating leases	$ 6,041	$ 1,482	$ 10,767	$ 4,498
Operating lease, ROU assets obtained in exchange for new lease liabilities	$ 461	$ 361	$ 4,312	$ 5,136
Operating leases, weighted average remaining lease term (years)	5 years 6 months		5 years 6 months		4 years 7 months 6 days
Operating leases, weighted average discount rate	5.20%		5.20%		5.70%

Leases - Schedule of Future Minimum Lease Payments and Related Lease Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Operating Lease Payments
2020 (remaining 3 months)	$ 4,774
2021	22,184	$ 6,387
2022	18,105	4,558
2023	16,169	3,259
2024	15,405	3,235
Thereafter	23,451
Total lease payments	100,088	22,035
Less: imputed interest	(13,048)	(2,776)
Present value of lease liabilities:	87,040	19,259
Current portion of operating lease liabilities	17,577	5,845
Noncurrent operating lease liabilities	69,463	$ 13,414
Sublease Income
2020 (remaining 3 months)	(1,647)
2021	(6,257)
2022	(6,117)
2023	(6,231)
2024	(6,293)
Thereafter	(7,214)
Total lease payments	(33,759)
Present value of lease liabilities:	(33,759)
Net Operating Lease Payments
2020 (remaining 3 months)	3,127
2021	15,927
2022	11,988
2023	9,938
2024	9,112
Thereafter	16,237
Total lease payments	66,329
Less: imputed interest	(13,048)
Present value of lease liabilities:	$ 53,281

Leases - Schedule of Future Minimum Lease Payments (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Operating Lease Payments
2020	$ 22,184	$ 6,387
2021	18,105	4,558
2022	16,169	3,259
2023	15,405	3,235
2024		2,619
Thereafter		1,977
Total lease payments	100,088	22,035
Less: imputed interest	(13,048)	(2,776)
Present value of lease liabilities:	87,040	19,259
Current portion of operating lease liabilities	17,577	5,845
Noncurrent operating lease liabilities	$ 69,463	$ 13,414

Commitment and Contingencies - Additional Information (Details) - USD ($)	1 Months Ended	9 Months Ended
	Dec. 31, 2019	Sep. 30, 2020
Commitments And Contingencies Disclosure [Line Items]
Accrued liabilities	$ 41,433,000	$ 98,762,000
Obligation under other contractual arrangements		$ 49,600,000
Obligation under other contractual arrangements, payments term		4 years
Qualified Referred Subscribers
Commitments And Contingencies Disclosure [Line Items]
Accrued liabilities		$ 100,000
Each qualified referred subscribers fee maximum	$ 5,000,000.0
Inventory
Commitments And Contingencies Disclosure [Line Items]
Purchase commitments		6,800,000
Accrued liabilities		$ 1,400,000

Segment and Geographic Information - Additional Information (Details) - segment	3 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Segment Reporting Information [Line Items]
Number of principal businesses segment		2
Total Revenue \| Customer One \| Customer Concentration Risk
Segment Reporting Information [Line Items]
Concentration risk, percentage (or more)	10.00%	10.00%
Total Revenue \| Customer Two \| Customer Concentration Risk
Segment Reporting Information [Line Items]
Concentration risk, percentage (or more)			10.00%
Total Accounts Receivable \| Customer Three \| Customer Concentration Risk
Segment Reporting Information [Line Items]
Concentration risk, percentage (or more)		10.00%		10.00%

Segment and Geographic Information - Schedule of Segment Reporting Information by Segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Segment Reporting Information [Line Items]
Total revenue	$ 202,797	$ 57,867	$ 458,093	$ 189,549
Total operating expenses	221,760	83,394	470,248	253,389
Total operating loss	(18,963)	(25,527)	(12,155)	(63,840)
Operating Segments \| Product Licensing Segment
Segment Reporting Information [Line Items]
Total revenue	122,552	46,028	242,618	152,026
Total operating expenses	116,149	45,693	228,941	139,409
Total operating loss	6,403	335	13,677	12,617
Operating Segments \| IP Licensing Segment
Segment Reporting Information [Line Items]
Total revenue	80,245	11,839	215,475	37,523
Total operating expenses	40,020	10,113	70,765	29,859
Total operating loss	40,225	1,726	144,710	7,664
Unallocated Operating Expenses
Segment Reporting Information [Line Items]
Total operating expenses	65,591	27,588	170,542	84,121
Total operating loss	$ (65,591)	$ (27,588)	$ (170,542)	$ (84,121)

- Definition

Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=75031198&loc=d3e14064-108612

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-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 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 7: 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 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 10: 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 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 235
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-05(b)(2))
-URI http://asc.fasb.org/extlink&oid=120399901&loc=d3e537907-122884

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(1))
-URI http://asc.fasb.org/extlink&oid=120395209&loc=SL114868664-224227

+ Details

Segment and Geographic Information - Schedule of Segment Reporting Information by Segment (Parenthetical) (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2020
Segment Reporting [Abstract]
One-time transaction costs related to the Mergers	$ 1.2	$ 29.1
Post-merger severance and retention costs	$ 3.6	$ 12.1

Segment and Geographic Information - Schedule of Geographic Revenue Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]
Foreign revenues	$ 202,797	$ 57,867	$ 458,093	$ 189,549
Total Revenue \| Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk, percentage (or more)	100.00%	100.00%	100.00%	100.00%
U.S.
Revenues from External Customers and Long-Lived Assets [Line Items]
Foreign revenues	$ 125,753	$ 9,733	$ 191,847	$ 33,740
U.S. \| Total Revenue \| Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk, percentage (or more)	62.00%	17.00%	42.00%	18.00%
Japan
Revenues from External Customers and Long-Lived Assets [Line Items]
Foreign revenues	$ 19,107	$ 18,368	$ 84,461	$ 69,427
Japan \| Total Revenue \| Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk, percentage (or more)	10.00%	32.00%	18.00%	37.00%
South Korea
Revenues from External Customers and Long-Lived Assets [Line Items]
Foreign revenues	$ 14,402	$ 19,086	$ 102,959	$ 53,002
South Korea \| Total Revenue \| Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk, percentage (or more)	7.00%	33.00%	23.00%	28.00%
Canada
Revenues from External Customers and Long-Lived Assets [Line Items]
Foreign revenues	$ 12,536	$ 166	$ 17,133	$ 441
Canada \| Total Revenue \| Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk, percentage (or more)	6.00%		4.00%
Europe and Middle East
Revenues from External Customers and Long-Lived Assets [Line Items]
Foreign revenues	$ 10,606	$ 4,780	$ 22,035	$ 15,243
Europe and Middle East \| Total Revenue \| Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk, percentage (or more)	5.00%	8.00%	5.00%	8.00%
Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Foreign revenues	$ 20,393	$ 5,734	$ 39,658	$ 17,696
Other \| Total Revenue \| Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk, percentage (or more)	10.00%	10.00%	8.00%	9.00%

Subsequent Events - Additional Information (Details) - Subsequent Event	Oct. 28, 2020 $ / shares
Subsequent Event [Line Items]
Cash dividends declared per share (in dollars per share)	$ 0.05
Dividends declaration date	Oct. 28, 2020
Dividends payable date	Dec. 21, 2020
Dividends record date	Nov. 30, 2020

Fair Value - Schedule of Fair Value Assets Measured on Recurring Basis (Details) - Recurring - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 92,029	$ 49,527
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	4,771	3,725
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	87,258	45,802
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	0	0
Money market funds - equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	4,771	2,601
Money market funds - equity securities \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	4,771	2,601
Money market funds - equity securities \| Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	0	0
Money market funds - equity securities \| Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	0	0
Marketable equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	0	1,124
Marketable equity securities \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	0	1,124
Marketable equity securities \| Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	0	0
Marketable equity securities \| Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	0	0
Treasury and agency notes and bills
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	4,998
Treasury and agency notes and bills \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	0
Treasury and agency notes and bills \| Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	4,998
Treasury and agency notes and bills \| Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	0
Corporate bonds and notes - Debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	72,272	41,746
Corporate bonds and notes - Debt securities \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	0	0
Corporate bonds and notes - Debt securities \| Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	72,272	41,746
Corporate bonds and notes - Debt securities \| Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	0	0
Commercial paper - debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	9,988	4,056
Commercial paper - debt securities \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	0	0
Commercial paper - debt securities \| Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	9,988	4,056
Commercial paper - debt securities \| Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 0	$ 0