Toggle SGML Header (+)


Section 1: 10-Q (10-Q)

Document
false--12-31Q320190001675820P5DP10D000P7YP7YP24MP6M40.0010.0012500000002500000001257810001289690001239750001265020000000.5610730.3459680.2481960.3973483020P5YP5YP7Y17000000.0010.001500000050000000000700000P3MP1YP1YP1YP1YP3YP3YP4YP4YP4YP4Y0.250.2518060002467000 0001675820 2019-01-01 2019-09-30 0001675820 2019-10-31 0001675820 2018-12-31 0001675820 2019-09-30 0001675820 2018-01-01 2018-09-30 0001675820 2019-07-01 2019-09-30 0001675820 2018-07-01 2018-09-30 0001675820 rovi:HardwareMember 2018-07-01 2018-09-30 0001675820 rovi:LicensingServicesandSoftwareMember 2019-07-01 2019-09-30 0001675820 rovi:LicensingServicesandSoftwareMember 2019-01-01 2019-09-30 0001675820 rovi:LicensingServicesandSoftwareMember 2018-07-01 2018-09-30 0001675820 rovi:LicensingServicesandSoftwareMember 2018-01-01 2018-09-30 0001675820 rovi:HardwareMember 2019-07-01 2019-09-30 0001675820 rovi:HardwareMember 2019-01-01 2019-09-30 0001675820 rovi:HardwareMember 2018-01-01 2018-09-30 0001675820 us-gaap:AdditionalPaidInCapitalMember 2019-07-01 2019-09-30 0001675820 us-gaap:RetainedEarningsMember 2019-07-01 2019-09-30 0001675820 2019-06-30 0001675820 us-gaap:CommonStockMember 2019-09-30 0001675820 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-09-30 0001675820 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0001675820 us-gaap:CommonStockMember 2019-07-01 2019-09-30 0001675820 us-gaap:TreasuryStockMember 2019-07-01 2019-09-30 0001675820 us-gaap:TreasuryStockMember 2019-06-30 0001675820 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0001675820 us-gaap:RetainedEarningsMember 2019-09-30 0001675820 us-gaap:CommonStockMember 2019-06-30 0001675820 us-gaap:RetainedEarningsMember 2019-06-30 0001675820 us-gaap:TreasuryStockMember 2019-09-30 0001675820 us-gaap:AdditionalPaidInCapitalMember 2019-09-30 0001675820 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-07-01 2019-09-30 0001675820 us-gaap:TreasuryStockMember 2018-07-01 2018-09-30 0001675820 us-gaap:CommonStockMember 2018-09-30 0001675820 2018-06-30 0001675820 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-07-01 2018-09-30 0001675820 us-gaap:TreasuryStockMember 2018-06-30 0001675820 us-gaap:CommonStockMember 2018-07-01 2018-09-30 0001675820 us-gaap:CommonStockMember 2018-06-30 0001675820 us-gaap:RetainedEarningsMember 2018-06-30 0001675820 us-gaap:RetainedEarningsMember 2018-09-30 0001675820 us-gaap:TreasuryStockMember 2018-09-30 0001675820 us-gaap:AdditionalPaidInCapitalMember 2018-09-30 0001675820 2018-09-30 0001675820 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-06-30 0001675820 us-gaap:AdditionalPaidInCapitalMember 2018-07-01 2018-09-30 0001675820 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-09-30 0001675820 us-gaap:RetainedEarningsMember 2018-07-01 2018-09-30 0001675820 us-gaap:AdditionalPaidInCapitalMember 2018-06-30 0001675820 us-gaap:RetainedEarningsMember 2017-12-31 0001675820 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-09-30 0001675820 us-gaap:CommonStockMember 2017-12-31 0001675820 us-gaap:TreasuryStockMember 2018-01-01 2018-09-30 0001675820 us-gaap:CommonStockMember 2018-01-01 2018-09-30 0001675820 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0001675820 us-gaap:TreasuryStockMember 2017-12-31 0001675820 2017-12-31 0001675820 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0001675820 us-gaap:RetainedEarningsMember 2018-01-01 2018-09-30 0001675820 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-09-30 0001675820 us-gaap:TreasuryStockMember 2019-01-01 2019-09-30 0001675820 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-09-30 0001675820 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-09-30 0001675820 us-gaap:TreasuryStockMember 2018-12-31 0001675820 us-gaap:RetainedEarningsMember 2019-01-01 2019-09-30 0001675820 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001675820 us-gaap:RetainedEarningsMember 2018-12-31 0001675820 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0001675820 us-gaap:CommonStockMember 2019-01-01 2019-09-30 0001675820 us-gaap:CommonStockMember 2018-12-31 0001675820 us-gaap:AccountingStandardsUpdate201602Member rovi:OperatingLeaseLiabilityMember 2019-01-01 2019-01-01 0001675820 us-gaap:AccountingStandardsUpdate201602Member rovi:OperatingLeaseRightofuseAssetMember 2019-01-01 2019-01-01 0001675820 us-gaap:FurnitureAndFixturesMember 2019-09-30 0001675820 us-gaap:ComputerEquipmentMember 2019-09-30 0001675820 us-gaap:ComputerEquipmentMember 2018-12-31 0001675820 us-gaap:LeaseholdImprovementsMember 2018-12-31 0001675820 us-gaap:LeaseholdImprovementsMember 2019-09-30 0001675820 us-gaap:FurnitureAndFixturesMember 2018-12-31 0001675820 us-gaap:OtherNoncurrentAssetsMember 2018-12-31 0001675820 us-gaap:AccountsReceivableMember 2019-09-30 0001675820 us-gaap:OtherNoncurrentAssetsMember 2019-09-30 0001675820 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember 2018-12-31 0001675820 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember 2019-09-30 0001675820 us-gaap:AccountsReceivableMember 2018-12-31 0001675820 rovi:RestofWorldMember 2018-07-01 2018-09-30 0001675820 country:US 2018-07-01 2018-09-30 0001675820 rovi:RestofWorldMember 2019-01-01 2019-09-30 0001675820 country:GB 2018-01-01 2018-09-30 0001675820 country:CA 2019-01-01 2019-09-30 0001675820 country:GB 2019-01-01 2019-09-30 0001675820 rovi:RestofWorldMember 2019-07-01 2019-09-30 0001675820 country:GB 2018-07-01 2018-09-30 0001675820 country:US 2019-01-01 2019-09-30 0001675820 country:CA 2018-01-01 2018-09-30 0001675820 country:CA 2018-07-01 2018-09-30 0001675820 country:US 2019-07-01 2019-09-30 0001675820 country:US 2018-01-01 2018-09-30 0001675820 country:GB 2019-07-01 2019-09-30 0001675820 rovi:RestofWorldMember 2018-01-01 2018-09-30 0001675820 country:CA 2019-07-01 2019-09-30 0001675820 rovi:ProductOperatingSegmentMember us-gaap:TransferredAtPointInTimeMember 2019-01-01 2019-09-30 0001675820 rovi:TimingofTransferOutofLicenseSettlementsMember 2019-01-01 2019-09-30 0001675820 us-gaap:TransferredAtPointInTimeMember 2019-01-01 2019-09-30 0001675820 rovi:ProductOperatingSegmentMember us-gaap:TransferredOverTimeMember 2018-01-01 2018-09-30 0001675820 us-gaap:TransferredOverTimeMember 2018-01-01 2018-09-30 0001675820 us-gaap:TransferredAtPointInTimeMember 2018-01-01 2018-09-30 0001675820 rovi:ProductOperatingSegmentMember us-gaap:TransferredOverTimeMember 2019-01-01 2019-09-30 0001675820 rovi:ProductOperatingSegmentMember 2019-01-01 2019-09-30 0001675820 rovi:ProductOperatingSegmentMember rovi:TimingofTransferOutofLicenseSettlementsMember 2018-01-01 2018-09-30 0001675820 rovi:IntellectualPropertyLicensingMember us-gaap:TransferredOverTimeMember 2018-01-01 2018-09-30 0001675820 rovi:IntellectualPropertyLicensingMember us-gaap:TransferredAtPointInTimeMember 2019-01-01 2019-09-30 0001675820 rovi:IntellectualPropertyLicensingMember rovi:TimingofTransferOutofLicenseSettlementsMember 2018-01-01 2018-09-30 0001675820 rovi:IntellectualPropertyLicensingMember us-gaap:TransferredAtPointInTimeMember 2018-01-01 2018-09-30 0001675820 rovi:ProductOperatingSegmentMember 2018-01-01 2018-09-30 0001675820 rovi:IntellectualPropertyLicensingMember rovi:TimingofTransferOutofLicenseSettlementsMember 2019-01-01 2019-09-30 0001675820 rovi:ProductOperatingSegmentMember us-gaap:TransferredAtPointInTimeMember 2018-01-01 2018-09-30 0001675820 rovi:IntellectualPropertyLicensingMember 2019-01-01 2019-09-30 0001675820 rovi:ProductOperatingSegmentMember rovi:TimingofTransferOutofLicenseSettlementsMember 2019-01-01 2019-09-30 0001675820 rovi:TimingofTransferOutofLicenseSettlementsMember 2018-01-01 2018-09-30 0001675820 rovi:IntellectualPropertyLicensingMember 2018-01-01 2018-09-30 0001675820 us-gaap:TransferredOverTimeMember 2019-01-01 2019-09-30 0001675820 rovi:IntellectualPropertyLicensingMember us-gaap:TransferredOverTimeMember 2019-01-01 2019-09-30 0001675820 rovi:ProductOperatingSegmentMember rovi:TimingofTransferOutofLicenseSettlementsMember 2018-07-01 2018-09-30 0001675820 rovi:IntellectualPropertyLicensingMember us-gaap:TransferredOverTimeMember 2019-07-01 2019-09-30 0001675820 rovi:IntellectualPropertyLicensingMember us-gaap:TransferredOverTimeMember 2018-07-01 2018-09-30 0001675820 us-gaap:TransferredAtPointInTimeMember 2019-07-01 2019-09-30 0001675820 rovi:IntellectualPropertyLicensingMember us-gaap:TransferredAtPointInTimeMember 2018-07-01 2018-09-30 0001675820 rovi:IntellectualPropertyLicensingMember 2018-07-01 2018-09-30 0001675820 rovi:TimingofTransferOutofLicenseSettlementsMember 2019-07-01 2019-09-30 0001675820 rovi:IntellectualPropertyLicensingMember 2019-07-01 2019-09-30 0001675820 rovi:TimingofTransferOutofLicenseSettlementsMember 2018-07-01 2018-09-30 0001675820 rovi:ProductOperatingSegmentMember rovi:TimingofTransferOutofLicenseSettlementsMember 2019-07-01 2019-09-30 0001675820 us-gaap:TransferredOverTimeMember 2019-07-01 2019-09-30 0001675820 rovi:IntellectualPropertyLicensingMember rovi:TimingofTransferOutofLicenseSettlementsMember 2019-07-01 2019-09-30 0001675820 rovi:ProductOperatingSegmentMember 2018-07-01 2018-09-30 0001675820 us-gaap:TransferredAtPointInTimeMember 2018-07-01 2018-09-30 0001675820 rovi:IntellectualPropertyLicensingMember us-gaap:TransferredAtPointInTimeMember 2019-07-01 2019-09-30 0001675820 us-gaap:TransferredOverTimeMember 2018-07-01 2018-09-30 0001675820 rovi:IntellectualPropertyLicensingMember rovi:TimingofTransferOutofLicenseSettlementsMember 2018-07-01 2018-09-30 0001675820 rovi:ProductOperatingSegmentMember us-gaap:TransferredOverTimeMember 2018-07-01 2018-09-30 0001675820 rovi:ProductOperatingSegmentMember us-gaap:TransferredAtPointInTimeMember 2018-07-01 2018-09-30 0001675820 rovi:ProductOperatingSegmentMember 2019-07-01 2019-09-30 0001675820 rovi:ProductOperatingSegmentMember us-gaap:TransferredOverTimeMember 2019-07-01 2019-09-30 0001675820 rovi:ProductOperatingSegmentMember us-gaap:TransferredAtPointInTimeMember 2019-07-01 2019-09-30 0001675820 rovi:ATTInc.Member us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2018-01-01 2018-09-30 0001675820 rovi:ATTInc.Member us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2018-07-01 2018-09-30 0001675820 rovi:ATTInc.Member us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2019-01-01 2019-09-30 0001675820 rovi:ATTInc.Member us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2019-07-01 2019-09-30 0001675820 rovi:ATTInc.Member us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember 2019-01-01 2019-09-30 0001675820 2019-10-01 2019-09-30 0001675820 2020-01-01 2019-09-30 0001675820 2023-01-01 2019-09-30 0001675820 2022-01-01 2019-09-30 0001675820 2021-01-01 2019-09-30 0001675820 2024-01-01 2019-09-30 0001675820 rovi:ATTInc.Member us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember 2018-01-01 2018-12-31 0001675820 rovi:MarketableSecuritiesDueinThreeMonthsMember 2019-09-30 0001675820 us-gaap:CorporateDebtSecuritiesMember 2019-09-30 0001675820 rovi:MarketableSecuritiesDueinThreeMonthsMember us-gaap:CorporateDebtSecuritiesMember 2019-09-30 0001675820 us-gaap:CashMember 2019-09-30 0001675820 rovi:MarketableSecuritiesDueinThreeMonthsMember us-gaap:USTreasuryAndGovernmentMember 2019-09-30 0001675820 us-gaap:MoneyMarketFundsMember 2019-09-30 0001675820 rovi:MarketableSecuritiesDueinThreeMonthsMember 2018-12-31 0001675820 rovi:MarketableSecuritiesDueinThreeMonthsMember us-gaap:USTreasuryAndGovernmentMember 2018-12-31 0001675820 us-gaap:MoneyMarketFundsMember 2018-12-31 0001675820 rovi:MarketableSecuritiesDueinThreeMonthsMember us-gaap:CorporateDebtSecuritiesMember 2018-12-31 0001675820 us-gaap:CashMember 2018-12-31 0001675820 us-gaap:FairValueInputsLevel3Member rovi:CubiwareContingentConsiderationMember us-gaap:SellingGeneralAndAdministrativeExpensesMember 2018-07-01 2018-09-30 0001675820 us-gaap:FairValueInputsLevel3Member rovi:CubiwareContingentConsiderationMember us-gaap:InterestExpenseMember 2018-01-01 2018-09-30 0001675820 us-gaap:FairValueInputsLevel3Member rovi:CubiwareContingentConsiderationMember us-gaap:InterestExpenseMember 2018-07-01 2018-09-30 0001675820 us-gaap:FairValueInputsLevel3Member rovi:CubiwareContingentConsiderationMember us-gaap:SellingGeneralAndAdministrativeExpensesMember 2018-01-01 2018-09-30 0001675820 us-gaap:FairValueInputsLevel3Member rovi:CubiwareContingentConsiderationMember 2018-07-01 2018-09-30 0001675820 us-gaap:FairValueMeasurementsNonrecurringMember rovi:ProductandIntellectualPropertyLicensingMember 2019-01-01 2019-09-30 0001675820 us-gaap:FairValueInputsLevel3Member rovi:CubiwareContingentConsiderationMember 2018-01-01 2018-09-30 0001675820 us-gaap:AuctionRateSecuritiesMember us-gaap:FairValueInputsLevel3Member 2018-01-01 2018-09-30 0001675820 us-gaap:FairValueInputsLevel3Member rovi:CubiwareContingentConsiderationMember 2018-09-30 0001675820 us-gaap:AuctionRateSecuritiesMember us-gaap:FairValueInputsLevel3Member 2017-12-31 0001675820 us-gaap:FairValueInputsLevel3Member rovi:CubiwareContingentConsiderationMember 2018-06-30 0001675820 us-gaap:FairValueInputsLevel3Member rovi:CubiwareContingentConsiderationMember 2017-12-31 0001675820 us-gaap:AuctionRateSecuritiesMember us-gaap:FairValueInputsLevel3Member 2018-09-30 0001675820 rovi:CurrentAssetsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember us-gaap:CashEquivalentsMember 2019-09-30 0001675820 rovi:NonCurrentAssetsMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2018-12-31 0001675820 rovi:CurrentAssetsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2018-12-31 0001675820 rovi:CurrentAssetsMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:InterestRateSwapMember 2018-12-31 0001675820 rovi:CurrentAssetsMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2018-12-31 0001675820 rovi:NonCurrentLiabilitiesMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:InterestRateSwapMember 2018-12-31 0001675820 rovi:CurrentAssetsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:InterestRateSwapMember 2018-12-31 0001675820 rovi:CurrentAssetsMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2019-09-30 0001675820 rovi:CurrentAssetsMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2018-12-31 0001675820 rovi:NonCurrentAssetsMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2018-12-31 0001675820 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001675820 rovi:CurrentAssetsMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2019-09-30 0001675820 rovi:CurrentAssetsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember us-gaap:CashEquivalentsMember 2019-09-30 0001675820 rovi:NonCurrentAssetsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2018-12-31 0001675820 rovi:CurrentAssetsMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember us-gaap:CashEquivalentsMember 2018-12-31 0001675820 rovi:CurrentAssetsMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember us-gaap:CashEquivalentsMember 2018-12-31 0001675820 rovi:NonCurrentAssetsMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2019-09-30 0001675820 rovi:CurrentAssetsMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2019-09-30 0001675820 rovi:NonCurrentLiabilitiesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:InterestRateSwapMember 2018-12-31 0001675820 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001675820 rovi:NonCurrentAssetsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2019-09-30 0001675820 rovi:NonCurrentAssetsMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2019-09-30 0001675820 rovi:CurrentAssetsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2019-09-30 0001675820 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001675820 rovi:CurrentAssetsMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:InterestRateSwapMember 2018-12-31 0001675820 rovi:NonCurrentAssetsMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2019-09-30 0001675820 rovi:NonCurrentLiabilitiesMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:InterestRateSwapMember 2019-09-30 0001675820 rovi:CurrentAssetsMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember us-gaap:CashEquivalentsMember 2019-09-30 0001675820 rovi:CurrentAssetsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2018-12-31 0001675820 rovi:NonCurrentLiabilitiesMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:InterestRateSwapMember 2018-12-31 0001675820 us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001675820 rovi:CurrentAssetsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:InterestRateSwapMember 2019-09-30 0001675820 rovi:CurrentAssetsMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2019-09-30 0001675820 rovi:CurrentAssetsMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2018-12-31 0001675820 rovi:NonCurrentAssetsMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2018-12-31 0001675820 rovi:NonCurrentAssetsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2018-12-31 0001675820 rovi:CurrentAssetsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember us-gaap:CashEquivalentsMember 2018-12-31 0001675820 rovi:NonCurrentAssetsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2019-09-30 0001675820 rovi:NonCurrentAssetsMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2018-12-31 0001675820 rovi:NonCurrentLiabilitiesMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:InterestRateSwapMember 2019-09-30 0001675820 us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001675820 rovi:CurrentAssetsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2019-09-30 0001675820 rovi:NonCurrentAssetsMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2019-09-30 0001675820 rovi:NonCurrentLiabilitiesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:InterestRateSwapMember 2019-09-30 0001675820 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001675820 rovi:CurrentAssetsMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember 2018-12-31 0001675820 rovi:CurrentAssetsMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember us-gaap:CashEquivalentsMember 2019-09-30 0001675820 rovi:CurrentAssetsMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateDebtSecuritiesMember us-gaap:CashEquivalentsMember 2019-09-30 0001675820 rovi:CurrentAssetsMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:InterestRateSwapMember 2019-09-30 0001675820 rovi:CurrentAssetsMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:InterestRateSwapMember 2019-09-30 0001675820 rovi:CurrentAssetsMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember us-gaap:CashEquivalentsMember 2019-09-30 0001675820 rovi:TwoThousandAndTwentyOneConvertibleNotesMember us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:ConvertibleDebtMember 2018-12-31 0001675820 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-09-30 0001675820 rovi:TermLoanBFacilityMember us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:LineOfCreditMember 2019-09-30 0001675820 rovi:TwoThousandAndTwentyConvertibleNotesMember us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:ConvertibleDebtMember 2019-09-30 0001675820 rovi:TwoThousandAndTwentyOneConvertibleNotesMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:ConvertibleDebtMember 2018-12-31 0001675820 rovi:TermLoanBFacilityMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:LineOfCreditMember 2018-12-31 0001675820 rovi:TwoThousandAndTwentyConvertibleNotesMember us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:ConvertibleDebtMember 2018-12-31 0001675820 rovi:TermLoanBFacilityMember us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:LineOfCreditMember 2018-12-31 0001675820 rovi:TwoThousandAndTwentyOneConvertibleNotesMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:ConvertibleDebtMember 2019-09-30 0001675820 rovi:TwoThousandAndTwentyConvertibleNotesMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:ConvertibleDebtMember 2018-12-31 0001675820 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2018-12-31 0001675820 rovi:TwoThousandAndTwentyConvertibleNotesMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:ConvertibleDebtMember 2019-09-30 0001675820 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-09-30 0001675820 rovi:TwoThousandAndTwentyOneConvertibleNotesMember us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:ConvertibleDebtMember 2019-09-30 0001675820 rovi:TermLoanBFacilityMember us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:LineOfCreditMember 2019-09-30 0001675820 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-12-31 0001675820 rovi:TwoThousandAndTwentyConvertibleNotesMember us-gaap:ConvertibleDebtMember 2019-01-01 2019-09-30 0001675820 us-gaap:TrademarksAndTradeNamesMember 2019-09-30 0001675820 rovi:TiVoInc.Member rovi:TiVoTradenameMember 2019-09-30 0001675820 rovi:DevelopedTechnologyAndPatentsMember 2019-09-30 0001675820 rovi:ExistingContractsAndCustomerRelationshipsMember 2019-09-30 0001675820 us-gaap:DatabasesMember 2019-09-30 0001675820 rovi:DevelopedTechnologyAndPatentsMember 2018-12-31 0001675820 us-gaap:DatabasesMember 2018-12-31 0001675820 us-gaap:TrademarksAndTradeNamesMember 2018-12-31 0001675820 rovi:ExistingContractsAndCustomerRelationshipsMember 2018-12-31 0001675820 rovi:TiVoInc.Member rovi:TiVoTradenameMember 2018-12-31 0001675820 rovi:IntellectualPropertyLicensingMember 2018-12-31 0001675820 rovi:IntellectualPropertyLicensingMember 2019-09-30 0001675820 rovi:ProductOperatingSegmentMember 2019-09-30 0001675820 rovi:ProductOperatingSegmentMember 2018-12-31 0001675820 rovi:TwoThousandNineteenTransformationPlanMember 2019-07-01 2019-09-30 0001675820 rovi:TwoThousandNineteenTransformationPlanMember 2019-01-01 2019-09-30 0001675820 us-gaap:FacilityClosingMember rovi:TivoIntegrationRestructuringPlanMember 2018-01-01 2018-09-30 0001675820 us-gaap:EmployeeSeveranceMember rovi:ProfitImprovementPlanMember 2018-01-01 2018-09-30 0001675820 us-gaap:FacilityClosingMember 2018-12-31 0001675820 us-gaap:FacilityClosingMember 2019-09-30 0001675820 us-gaap:EmployeeSeveranceMember 2019-09-30 0001675820 us-gaap:EmployeeSeveranceMember 2018-12-31 0001675820 us-gaap:EmployeeSeveranceMember rovi:ProfitImprovementPlanMember 2019-01-01 2019-09-30 0001675820 us-gaap:FacilityClosingMember rovi:ProfitImprovementPlanMember 2019-01-01 2019-09-30 0001675820 rovi:ProfitImprovementPlanMember 2019-01-01 2019-09-30 0001675820 rovi:AssetImpairmentsMember rovi:ProfitImprovementPlanMember 2019-01-01 2019-09-30 0001675820 rovi:AssetImpairmentsMember rovi:ProfitImprovementPlanMember 2019-09-30 0001675820 us-gaap:EmployeeSeveranceMember rovi:ProfitImprovementPlanMember 2018-12-31 0001675820 rovi:ProfitImprovementPlanMember 2019-09-30 0001675820 rovi:ProfitImprovementPlanMember 2018-12-31 0001675820 rovi:AssetImpairmentsMember rovi:ProfitImprovementPlanMember 2018-12-31 0001675820 us-gaap:FacilityClosingMember rovi:ProfitImprovementPlanMember 2019-09-30 0001675820 us-gaap:FacilityClosingMember rovi:ProfitImprovementPlanMember 2018-12-31 0001675820 us-gaap:EmployeeSeveranceMember rovi:ProfitImprovementPlanMember 2019-09-30 0001675820 rovi:TwoThousandAndTwentyOneConvertibleNotesMember us-gaap:ConvertibleDebtMember 2019-09-30 0001675820 rovi:TermLoanBFacilityMember us-gaap:LineOfCreditMember 2019-09-30 0001675820 rovi:TwoThousandAndTwentyConvertibleNotesMember us-gaap:ConvertibleDebtMember 2019-09-30 0001675820 rovi:TermLoanBFacilityMember us-gaap:LineOfCreditMember 2018-12-31 0001675820 rovi:TwoThousandAndTwentyConvertibleNotesMember us-gaap:ConvertibleDebtMember 2018-12-31 0001675820 rovi:TwoThousandAndTwentyOneConvertibleNotesMember us-gaap:ConvertibleDebtMember 2018-12-31 0001675820 rovi:TermLoanBFacilityMember 2014-07-02 0001675820 rovi:TermLoanBFacilityMember us-gaap:LondonInterbankOfferedRateLIBORMember 2014-07-02 2014-07-02 0001675820 rovi:TiVoInc.Member rovi:TwoThousandAndTwentyOneConvertibleNotesMember us-gaap:ConvertibleDebtMember 2014-09-22 0001675820 rovi:TwoThousandAndTwentyOneConvertibleNotesMember us-gaap:ConvertibleDebtMember 2014-09-22 0001675820 srt:MinimumMember rovi:RefinancingAgreementNumberOneMember us-gaap:LineOfCreditMember us-gaap:LondonInterbankOfferedRateLIBORMember 2017-01-26 2017-01-26 0001675820 rovi:TwoThousandAndTwentyConvertibleNotesMember us-gaap:StockOptionMember us-gaap:ConvertibleDebtMember 2016-12-31 0001675820 rovi:WarrantstoPurchaseCommonStockMember rovi:TwoThousandAndTwentyConvertibleNotesMember us-gaap:ConvertibleDebtMember 2019-09-30 0001675820 rovi:TwoThousandAndTwentyConvertibleNotesMember us-gaap:ConvertibleDebtMember 2019-06-01 2019-06-30 0001675820 rovi:TermLoanBFacilityMember 2019-02-01 2019-02-28 0001675820 rovi:RefinancingAgreementNumberOneMember us-gaap:LineOfCreditMember us-gaap:PrimeRateMember 2017-01-26 2017-01-26 0001675820 rovi:TermLoanAFacilityMember 2014-07-02 0001675820 rovi:TwoThousandAndTwentyConvertibleNotesMember us-gaap:ConvertibleDebtMember 2015-03-04 0001675820 rovi:TwoThousandAndTwentyConvertibleNotesMember us-gaap:ConvertibleDebtMember 2019-06-30 0001675820 rovi:WarrantstoPurchaseCommonStockMember rovi:TwoThousandAndTwentyConvertibleNotesMember us-gaap:ConvertibleDebtMember 2016-12-31 0001675820 rovi:RefinancingAgreementNumberOneMember us-gaap:LineOfCreditMember us-gaap:LondonInterbankOfferedRateLIBORMember 2017-01-26 2017-01-26 0001675820 rovi:TwoThousandAndTwentyConvertibleNotesMember us-gaap:ConvertibleDebtMember 2019-04-01 2019-06-30 0001675820 rovi:TiVoCorporationMember rovi:TwoThousandAndTwentyOneConvertibleNotesMember us-gaap:ConvertibleDebtMember 2019-09-30 0001675820 us-gaap:LongTermDebtMember rovi:TwoThousandAndTwentyConvertibleNotesMember us-gaap:ConvertibleDebtMember 2015-03-04 0001675820 rovi:TwoThousandAndTwentyConvertibleNotesMember us-gaap:StockOptionMember us-gaap:ConvertibleDebtMember 2019-09-30 0001675820 rovi:TermLoanBFacilityMember 2019-07-01 2019-09-30 0001675820 rovi:TermLoanBFacilityMember us-gaap:PrimeRateMember 2014-07-02 2014-07-02 0001675820 2014-07-02 0001675820 us-gaap:RevolvingCreditFacilityMember 2014-07-02 0001675820 rovi:TwoThousandAndTwentyOneConvertibleNotesMember us-gaap:ConvertibleDebtMember 2016-10-12 2016-10-12 0001675820 rovi:TwoThousandAndTwentyConvertibleNotesMember us-gaap:ConvertibleDebtMember 2018-07-01 2018-09-30 0001675820 rovi:TwoThousandAndTwentyConvertibleNotesMember us-gaap:ConvertibleDebtMember 2018-01-01 2018-09-30 0001675820 rovi:TwoThousandAndTwentyConvertibleNotesMember us-gaap:ConvertibleDebtMember 2019-07-01 2019-09-30 0001675820 rovi:OneHundredTwentyFiveMillionSeptemberTwentyFourteenSwapsMember us-gaap:NondesignatedMember us-gaap:LineOfCreditMember 2019-09-30 0001675820 rovi:TwoHundredFiftyMillionJuneTwoThousandThirteenSwapsMember us-gaap:NondesignatedMember us-gaap:LineOfCreditMember 2018-12-31 0001675820 rovi:TwoHundredMillionSeptemberTwentyFourteenSwapsMember us-gaap:NondesignatedMember us-gaap:LineOfCreditMember 2019-09-30 0001675820 rovi:TwoHundredMillionSeptemberTwentyFourteenSwapsMember us-gaap:NondesignatedMember us-gaap:LineOfCreditMember 2018-12-31 0001675820 rovi:TwoHundredFiftyMillionJuneTwoThousandThirteenSwapsMember us-gaap:NondesignatedMember us-gaap:LineOfCreditMember 2019-09-30 0001675820 rovi:OneHundredTwentyFiveMillionSeptemberTwentyFourteenSwapsMember us-gaap:NondesignatedMember us-gaap:LineOfCreditMember 2018-12-31 0001675820 rovi:TiVoInc.Member rovi:TwoThousandAndTwentyOneConvertibleNotesMember us-gaap:ConvertibleDebtMember 2014-09-22 2014-09-22 0001675820 rovi:TwoThousandAndTwentyConvertibleNotesMember us-gaap:ConvertibleDebtMember 2015-03-04 2015-03-04 0001675820 rovi:TermLoanBFacilityMember 2014-07-02 2014-07-02 0001675820 rovi:TermLoanAFacilityMember 2014-07-02 2014-07-02 0001675820 rovi:TwoThousandAndTwentyConvertibleNotesMember us-gaap:ConvertibleDebtMember 2018-09-30 2018-09-30 0001675820 rovi:TiVoCorporationMember rovi:TwoThousandAndTwentyOneConvertibleNotesMember us-gaap:ConvertibleDebtMember 2018-09-30 2018-09-30 0001675820 us-gaap:RevolvingCreditFacilityMember 2014-07-02 2014-07-02 0001675820 rovi:CorporateOfficesDataCentersandCertainEquipmentMember 2019-01-01 2019-09-30 0001675820 rovi:CorporateOfficesDataCentersandCertainEquipmentMember 2019-09-30 0001675820 srt:MinimumMember rovi:CorporateOfficesDataCentersandCertainEquipmentMember 2019-09-30 0001675820 srt:MaximumMember rovi:CorporateOfficesDataCentersandCertainEquipmentMember 2019-09-30 0001675820 us-gaap:ConvertibleNotesPayableMember rovi:TwoThousandAndTwentyOneConvertibleNotesMember 2019-01-01 2019-09-30 0001675820 us-gaap:WarrantMember 2019-01-01 2019-09-30 0001675820 us-gaap:WarrantMember 2018-01-01 2018-09-30 0001675820 us-gaap:WarrantMember 2018-07-01 2018-09-30 0001675820 us-gaap:RestrictedStockMember 2019-01-01 2019-09-30 0001675820 us-gaap:ConvertibleNotesPayableMember rovi:TwoThousandAndTwentyConvertibleNotesMember 2019-07-01 2019-09-30 0001675820 us-gaap:WarrantMember 2019-07-01 2019-09-30 0001675820 us-gaap:ConvertibleNotesPayableMember rovi:TwoThousandAndTwentyConvertibleNotesMember 2019-01-01 2019-09-30 0001675820 us-gaap:EmployeeStockOptionMember 2019-01-01 2019-09-30 0001675820 us-gaap:EmployeeStockOptionMember 2019-07-01 2019-09-30 0001675820 us-gaap:ConvertibleNotesPayableMember rovi:TwoThousandAndTwentyOneConvertibleNotesMember 2018-01-01 2018-09-30 0001675820 us-gaap:EmployeeStockOptionMember 2018-07-01 2018-09-30 0001675820 us-gaap:RestrictedStockMember 2018-01-01 2018-09-30 0001675820 us-gaap:RestrictedStockMember 2018-07-01 2018-09-30 0001675820 us-gaap:ConvertibleNotesPayableMember rovi:TwoThousandAndTwentyOneConvertibleNotesMember 2018-07-01 2018-09-30 0001675820 us-gaap:RestrictedStockMember 2019-07-01 2019-09-30 0001675820 us-gaap:ConvertibleNotesPayableMember rovi:TwoThousandAndTwentyConvertibleNotesMember 2018-07-01 2018-09-30 0001675820 us-gaap:EmployeeStockOptionMember 2018-01-01 2018-09-30 0001675820 us-gaap:ConvertibleNotesPayableMember rovi:TwoThousandAndTwentyOneConvertibleNotesMember 2019-07-01 2019-09-30 0001675820 us-gaap:ConvertibleNotesPayableMember rovi:TwoThousandAndTwentyConvertibleNotesMember 2018-01-01 2018-09-30 0001675820 us-gaap:CommonStockMember 2019-01-01 2019-09-30 0001675820 us-gaap:CommonStockMember 2018-07-01 2018-09-30 0001675820 rovi:PerformancebasedRestrictedStockUnitsMember 2019-07-01 2019-09-30 0001675820 us-gaap:CommonStockMember 2018-01-01 2018-09-30 0001675820 rovi:PerformancebasedRestrictedStockUnitsMember 2018-01-01 2018-09-30 0001675820 us-gaap:CommonStockMember 2019-07-01 2019-09-30 0001675820 2017-02-14 0001675820 rovi:PerformancebasedRestrictedStockUnitsMember 2018-07-01 2018-09-30 0001675820 rovi:PerformancebasedRestrictedStockUnitsMember 2019-01-01 2019-09-30 0001675820 us-gaap:RestrictedStockMember 2018-07-01 2018-09-30 0001675820 rovi:PerformancebasedRestrictedStockUnitsMember 2019-09-30 0001675820 us-gaap:RestrictedStockMember 2018-01-01 2018-09-30 0001675820 rovi:Rovi2008EquityIncentivePlanMember 2019-09-30 0001675820 us-gaap:RestrictedStockMember 2019-07-01 2019-09-30 0001675820 us-gaap:RestrictedStockMember 2019-01-01 2019-09-30 0001675820 rovi:TiVoInc.AmendedandRestated2008EquityIncentiveAwardPlanMember 2019-09-30 0001675820 rovi:PerformancebasedRestrictedStockUnitsMember 2019-06-01 2019-06-30 0001675820 rovi:PerformanceBasedRestrictedStockAwardsMember 2019-09-30 0001675820 us-gaap:EmployeeStockMember 2019-09-30 0001675820 us-gaap:EmployeeStockMember 2019-01-01 2019-09-30 0001675820 rovi:PerformancebasedRestrictedStockUnitsMember 2019-01-01 2019-09-30 0001675820 rovi:PerformancebasedRestrictedStockUnitsMember 2019-07-01 2019-09-30 0001675820 rovi:PerformancebasedRestrictedStockUnitsMember 2018-07-01 2018-09-30 0001675820 us-gaap:EmployeeStockMember 2018-01-01 2018-09-30 0001675820 us-gaap:EmployeeStockMember 2018-07-01 2018-09-30 0001675820 us-gaap:EmployeeStockMember 2019-07-01 2019-09-30 0001675820 rovi:PerformancebasedRestrictedStockUnitsMember 2018-01-01 2018-09-30 0001675820 rovi:RestrictedStockAwardorRestrictedStockUnitMember 2018-12-31 0001675820 rovi:RestrictedStockAwardorRestrictedStockUnitMember 2019-01-01 2019-09-30 0001675820 rovi:RestrictedStockAwardorRestrictedStockUnitMember 2019-09-30 0001675820 rovi:RestrictedAwardsMember rovi:Rovi2008EquityIncentivePlanMember 2019-01-01 2019-09-30 0001675820 us-gaap:EmployeeStockOptionMember rovi:Rovi2008EquityIncentivePlanMember 2019-01-01 2019-09-30 0001675820 us-gaap:EmployeeStockOptionMember rovi:TiVoInc.Member rovi:TiVoInc.AmendedandRestated2008EquityIncentiveAwardPlanMember 2019-01-01 2019-09-30 0001675820 rovi:RestrictedAwardsMember rovi:TiVoInc.AmendedandRestated2008EquityIncentiveAwardPlanMember 2019-01-01 2019-09-30 0001675820 rovi:PerformanceBasedRestrictedStockAwardsMember 2019-01-01 2019-09-30 0001675820 rovi:RestrictedAwardsMember rovi:TiVoInc.Member rovi:TiVoInc.AmendedandRestated2008EquityIncentiveAwardPlanMember 2019-01-01 2019-09-30 0001675820 us-gaap:OperatingSegmentsMember rovi:ProductOperatingSegmentMember 2019-01-01 2019-09-30 0001675820 us-gaap:OperatingSegmentsMember rovi:ProductOperatingSegmentMember rovi:PlatformSolutionsMember 2018-01-01 2018-09-30 0001675820 us-gaap:OperatingSegmentsMember rovi:ProductOperatingSegmentMember rovi:SoftwareandServicesMember 2019-01-01 2019-09-30 0001675820 us-gaap:OperatingSegmentsMember rovi:ProductOperatingSegmentMember rovi:PlatformSolutionsMember 2019-01-01 2019-09-30 0001675820 us-gaap:OperatingSegmentsMember rovi:ProductOperatingSegmentMember 2018-01-01 2018-09-30 0001675820 us-gaap:CorporateNonSegmentMember 2018-07-01 2018-09-30 0001675820 us-gaap:OperatingSegmentsMember rovi:IntellectualPropertyLicensingMember rovi:ConsumerElectronicsManufacturersMember 2019-07-01 2019-09-30 0001675820 us-gaap:OperatingSegmentsMember rovi:IntellectualPropertyLicensingMember 2018-07-01 2018-09-30 0001675820 us-gaap:OperatingSegmentsMember rovi:IntellectualPropertyLicensingMember rovi:USPayTVProvidersMember 2018-07-01 2018-09-30 0001675820 us-gaap:OperatingSegmentsMember rovi:IntellectualPropertyLicensingMember 2018-01-01 2018-09-30 0001675820 us-gaap:OperatingSegmentsMember rovi:ProductOperatingSegmentMember 2018-07-01 2018-09-30 0001675820 us-gaap:OperatingSegmentsMember rovi:IntellectualPropertyLicensingMember 2019-07-01 2019-09-30 0001675820 us-gaap:OperatingSegmentsMember rovi:IntellectualPropertyLicensingMember rovi:USPayTVProvidersMember 2018-01-01 2018-09-30 0001675820 us-gaap:OperatingSegmentsMember rovi:ProductOperatingSegmentMember rovi:OtherSubsegmentMember 2018-01-01 2018-09-30 0001675820 us-gaap:OperatingSegmentsMember rovi:IntellectualPropertyLicensingMember rovi:USPayTVProvidersMember 2019-07-01 2019-09-30 0001675820 us-gaap:CorporateNonSegmentMember 2019-01-01 2019-09-30 0001675820 us-gaap:OperatingSegmentsMember rovi:ProductOperatingSegmentMember rovi:SoftwareandServicesMember 2018-07-01 2018-09-30 0001675820 us-gaap:CorporateNonSegmentMember 2019-07-01 2019-09-30 0001675820 us-gaap:OperatingSegmentsMember rovi:IntellectualPropertyLicensingMember rovi:USPayTVProvidersMember 2019-01-01 2019-09-30 0001675820 us-gaap:OperatingSegmentsMember rovi:IntellectualPropertyLicensingMember rovi:NewMediaInternationalPayTVProvidersandOtherMember 2018-01-01 2018-09-30 0001675820 us-gaap:OperatingSegmentsMember rovi:IntellectualPropertyLicensingMember rovi:NewMediaInternationalPayTVProvidersandOtherMember 2018-07-01 2018-09-30 0001675820 us-gaap:OperatingSegmentsMember rovi:ProductOperatingSegmentMember 2019-07-01 2019-09-30 0001675820 us-gaap:OperatingSegmentsMember rovi:IntellectualPropertyLicensingMember 2019-01-01 2019-09-30 0001675820 us-gaap:OperatingSegmentsMember rovi:ProductOperatingSegmentMember rovi:SoftwareandServicesMember 2018-01-01 2018-09-30 0001675820 us-gaap:OperatingSegmentsMember rovi:IntellectualPropertyLicensingMember rovi:ConsumerElectronicsManufacturersMember 2018-07-01 2018-09-30 0001675820 us-gaap:OperatingSegmentsMember rovi:IntellectualPropertyLicensingMember rovi:NewMediaInternationalPayTVProvidersandOtherMember 2019-07-01 2019-09-30 0001675820 us-gaap:OperatingSegmentsMember rovi:IntellectualPropertyLicensingMember rovi:ConsumerElectronicsManufacturersMember 2018-01-01 2018-09-30 0001675820 us-gaap:OperatingSegmentsMember rovi:ProductOperatingSegmentMember rovi:OtherSubsegmentMember 2019-01-01 2019-09-30 0001675820 us-gaap:CorporateNonSegmentMember 2018-01-01 2018-09-30 0001675820 us-gaap:OperatingSegmentsMember rovi:ProductOperatingSegmentMember rovi:SoftwareandServicesMember 2019-07-01 2019-09-30 0001675820 us-gaap:OperatingSegmentsMember rovi:ProductOperatingSegmentMember rovi:PlatformSolutionsMember 2018-07-01 2018-09-30 0001675820 us-gaap:OperatingSegmentsMember rovi:ProductOperatingSegmentMember rovi:PlatformSolutionsMember 2019-07-01 2019-09-30 0001675820 us-gaap:OperatingSegmentsMember rovi:ProductOperatingSegmentMember rovi:OtherSubsegmentMember 2019-07-01 2019-09-30 0001675820 us-gaap:OperatingSegmentsMember rovi:IntellectualPropertyLicensingMember rovi:NewMediaInternationalPayTVProvidersandOtherMember 2019-01-01 2019-09-30 0001675820 us-gaap:OperatingSegmentsMember rovi:IntellectualPropertyLicensingMember rovi:ConsumerElectronicsManufacturersMember 2019-01-01 2019-09-30 0001675820 us-gaap:OperatingSegmentsMember rovi:ProductOperatingSegmentMember rovi:OtherSubsegmentMember 2018-07-01 2018-09-30 iso4217:USD iso4217:USD xbrli:shares xbrli:shares xbrli:pure iso4217:USD rovi:per_unit rovi:purchase_period rovi:segment rovi:trading_day rovi:subsidiary
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________________________________________________ 
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2019
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from             to             
Commission file number: 001-37870
TiVo Corporation
(Exact name of registrant as specified in its charter)
Delaware
 
 
 
 
61-1793262
(State or other jurisdiction of
incorporation or organization)
 
 
 
 
(I.R.S. Employer
Identification No.)
2160 Gold Street
,
San Jose
,
California
95002
(Address of principal executive offices, including zip code)
(408) 519-9100
(Registrant's telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class
 
Trading Symbol(s)
 
Name of Each Exchange on Which Registered
Common Stock, par value $0.001 per share
 
TIVO
 
The Nasdaq Stock Market LLC
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act:
Large accelerated filer
 
Accelerated filer
 
Non-accelerated filer
Smaller reporting company
 
Emerging growth company
 
 
 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.
(in thousands)
Outstanding as of
Class
October 31, 2019
Common Stock
126,643


Table of Contents


TIVO CORPORATION AND SUBSIDIARIES
TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION
ITEM 1.
 
 
 
 
 
 
ITEM 2.
ITEM 3.
ITEM 4.
 
PART II. OTHER INFORMATION
ITEM 1.
ITEM 1A.
ITEM 2.
ITEM 3.
ITEM 4.
ITEM 5.
ITEM 6.
 



1

Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

TIVO CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)

September 30, 2019
 
December 31, 2018
ASSETS
(unaudited)


Current assets:



Cash and cash equivalents
$
144,451


$
161,955

Short-term marketable securities
132,208


158,956

Accounts receivable, net
183,827


152,866

Inventory
3,056

 
7,449

Prepaid expenses and other current assets
30,842


30,806

Total current assets
494,384

 
512,032

Long-term marketable securities
4,986


73,207

Property and equipment, net
50,361


53,586

Intangible assets, net
442,857


513,770

Goodwill
1,406,987


1,544,343

Right-of-use assets
63,064

 

Other long-term assets
59,953


63,365

Total assets
$
2,522,592

 
$
2,760,303





LIABILITIES AND STOCKHOLDERS’ EQUITY



Current liabilities:



Accounts payable and accrued expenses
$
107,815


$
104,981

Unearned revenue
49,579


46,072

Current portion of long-term debt
289,284


373,361

Total current liabilities
446,678

 
524,414

Unearned revenue, less current portion
46,511


54,495

Long-term debt, less current portion
619,947


618,776

Deferred tax liabilities, net
39,921


45,030

Long-term lease liabilities
65,650

 

Other long-term liabilities
13,618


24,647

Total liabilities
1,232,325

 
1,267,362

Contingencies (Note 11)





Stockholders' equity:



Preferred stock, $0.001 par value, 5,000 shares authorized; no shares issued or outstanding



Common stock, $0.001 par value, 250,000 shares authorized; 128,969 shares issued and 126,502 shares outstanding as of September 30, 2019; and 125,781 shares issued and 123,975 shares outstanding as of December 31, 2018
129


126

Treasury stock, 2,467 shares and 1,806 shares as of September 30, 2019 and December 31, 2018, respectively, at cost
(37,516
)

(32,124
)
Additional paid-in capital
3,229,334


3,239,395

Accumulated other comprehensive loss
(3,520
)

(3,869
)
Accumulated deficit
(1,898,160
)

(1,710,587
)
Total stockholders’ equity
1,290,267

 
1,492,941

Total liabilities and stockholders’ equity
$
2,522,592

 
$
2,760,303


The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

2

Table of Contents


TIVO CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Revenues, net:
 
 
 
 
 
 
 
Licensing, services and software
$
155,918

 
$
160,783

 
$
486,575

 
$
516,495

Hardware
2,606

 
3,926

 
6,356

 
10,911

Total Revenues, net
158,524

 
164,709

 
492,931

 
527,406

Costs and expenses:
 
 
 
 
 
 
 
Cost of licensing, services and software revenues, excluding depreciation and amortization of intangible assets
39,263

 
40,749

 
114,482

 
126,547

Cost of hardware revenues, excluding depreciation and amortization of intangible assets
4,289

 
4,220

 
14,150

 
14,260

Research and development
34,038

 
42,053

 
113,621

 
133,894

Selling, general and administrative
45,677

 
39,867

 
139,270

 
133,906

Depreciation
5,314

 
5,338

 
16,005

 
16,252

Amortization of intangible assets
28,212

 
37,242

 
84,574

 
119,463

Restructuring and asset impairment charges
1,995

 
2,921

 
6,484

 
8,568

Goodwill impairment
137,453

 

 
137,453

 

Total costs and expenses
296,241

 
172,390

 
626,039

 
552,890

Operating loss
(137,717
)
 
(7,681
)
 
(133,108
)
 
(25,484
)
Interest expense
(11,844
)
 
(12,436
)
 
(36,480
)
 
(36,241
)
Interest income and other, net
860

 
861

 
4,150

 
2,971

(Loss) gain on interest rate swaps
(390
)
 
1,033

 
(5,475
)
 
7,185

Loss on debt extinguishment

 

 
(300
)
 

Loss from continuing operations before income taxes
(149,091
)
 
(18,223
)
 
(171,213
)
 
(51,569
)
Income tax expense
1,919

 
4,769

 
15,981

 
13,305

Loss from continuing operations, net of tax
(151,010
)
 
(22,992
)
 
(187,194
)
 
(64,874
)
(Loss) Income from discontinued operations, net of tax
(379
)
 
143

 
(379
)
 
3,738

Net loss
$
(151,389
)
 
$
(22,849
)
 
$
(187,573
)
 
$
(61,136
)
 
 
 
 
 
 
 
 
Basic loss per share:
 
 
 
 
 
 
 
Continuing operations
$
(1.20
)
 
$
(0.19
)
 
$
(1.50
)
 
$
(0.53
)
Discontinued operations

 

 

 
0.03

Basic loss per share
$
(1.20
)
 
$
(0.19
)
 
$
(1.50
)
 
$
(0.50
)
Weighted average shares used in computing basic per share amounts
126,081

 
123,459

 
125,160

 
122,756

 
 
 
 
 
 
 
 
Diluted loss per share:
 
 
 
 
 
 
 
Continuing operations
$
(1.20
)
 
$
(0.19
)
 
$
(1.50
)
 
$
(0.53
)
Discontinued operations

 

 

 
0.03

Diluted loss per share
$
(1.20
)
 
$
(0.19
)
 
$
(1.50
)
 
$
(0.50
)
Weighted average shares used in computing diluted per share amounts
126,081

 
123,459

 
125,160

 
122,756

 
 
 
 
 
 
 
 
Dividends declared per share
$
0.08

 
$
0.18

 
$
0.34

 
$
0.54


The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

3

Table of Contents

TIVO CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(In thousands)
(Unaudited)
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Net loss
$
(151,389
)
 
$
(22,849
)
 
$
(187,573
)
 
$
(61,136
)
Other comprehensive (loss) income, net of tax:
 
 
 
 
 
 
 
Change in foreign currency translation adjustment
(936
)
 
(286
)
 
(532
)
 
(1,889
)
Unrealized (losses) gains on marketable securities
 
 
 
 
 
 
 
Change in unrealized (loss) gains on marketable securities
(11
)
 
222

 
881

 
114

Less: Reclassification adjustment on sale

 

 

 
216

Other comprehensive (loss) income, net of tax
(947
)
 
(64
)
 
349

 
(1,559
)
Comprehensive loss
$
(152,336
)
 
$
(22,913
)
 
$
(187,224
)
 
$
(62,695
)

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.


4

Table of Contents

TIVO CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(In thousands)
(Unaudited)

 
Common stock
Treasury stock
Additional paid-in capital
Accumulated other comprehensive loss
Accumulated deficit
Total stockholders’ equity
 
Shares
Amount
Shares
Amount
Balance as of June 30, 2018
124,528

$
125

(1,557
)
$
(28,925
)
$
3,257,093

$
(4,233
)
$
(1,399,526
)
$
1,824,534

Net loss
 
 
 
 
 
 
(22,849
)
(22,849
)
Other comprehensive loss, net of tax
 
 
 
 
 
(64
)
 
(64
)
Issuance of common stock under employee stock purchase plan
511


 
 
5,278

 
 
5,278

Issuance of restricted stock, net
590

1

 
 

 
 
1

Equity-based compensation
 
 
 
 
9,526

 
 
9,526

Dividends
 
 
 
 
(22,282
)
 
 
(22,282
)
Withholding taxes related to net share settlement of restricted awards
 
 
(197
)
(2,570
)
 
 
 
(2,570
)
Balance as of September 30, 2018
125,629

$
126

(1,754
)
$
(31,495
)
$
3,249,615

$
(4,297
)
$
(1,422,375
)
$
1,791,574

 
Common stock
Treasury stock
Additional paid-in capital
Accumulated other comprehensive loss
Accumulated deficit
Total stockholders’ equity
 
Shares
Amount
Shares
Amount
Balance as of June 30, 2019
127,313

$
127

(2,157
)
$
(35,219
)
$
3,230,303

$
(2,573
)
$
(1,746,771
)
$
1,445,867

Net loss
 
 
 
 
 
 
(151,389
)
(151,389
)
Other comprehensive loss, net of tax
 
 
 
 
 
(947
)
 
(947
)
Issuance of common stock under employee stock purchase plan
608

1

 
 
3,920

 
 
3,921

Issuance of restricted stock, net
1,048

1

 
 

 
 
1

Equity-based compensation
 
 
 
 
5,217

 
 
5,217

Dividends
 
 
 
 
(10,106
)
 
 
(10,106
)
Withholding taxes related to net share settlement of restricted awards
 
 
(310
)
(2,297
)
 
 
 
(2,297
)
Balance as of September 30, 2019
128,969

$
129

(2,467
)
$
(37,516
)
$
3,229,334

$
(3,520
)
$
(1,898,160
)
$
1,290,267



5

Table of Contents

 
Common stock
Treasury stock
Additional paid-in capital
Accumulated other comprehensive loss
Accumulated deficit
Total stockholders’ equity
 
Shares
Amount
Shares
Amount
Balance as of December 31, 2017
123,385

$
123

(1,269
)
$
(24,740
)
$
3,273,022

$
(2,738
)
$
(1,392,651
)
$
1,853,016

Cumulative effect adjustment
 
 
 
 
 
 
31,412

31,412

Net loss
 
 
 
 
 
 
(61,136
)
(61,136
)
Other comprehensive loss, net of tax
 
 
 
 
 
(1,559
)
 
(1,559
)
Issuance of common stock under employee stock purchase plan
1,150

2

 
 
12,852

 
 
12,854

Issuance of restricted stock, net
1,094

1

 
 

 
 
1

Equity-based compensation
 
 
 
 
30,252

 
 
30,252

Dividends
 
 
 
 
(66,511
)
 
 
(66,511
)
Withholding taxes related to net share settlement of restricted awards
 
 
(485
)
(6,755
)
 
 
 
(6,755
)
Balance as of September 30, 2018
125,629

$
126

(1,754
)
$
(31,495
)
$
3,249,615

$
(4,297
)
$
(1,422,375
)
$
1,791,574


 
Common stock
Treasury stock
Additional paid-in capital
Accumulated other comprehensive loss
Accumulated deficit
Total stockholders’ equity
 
Shares
Amount
Shares
Amount
Balance as of December 31, 2018
125,781

$
126

(1,806
)
$
(32,124
)
$
3,239,395

$
(3,869
)
$
(1,710,587
)
$
1,492,941

Net loss
 
 
 
 
 
 
(187,573
)
(187,573
)
Other comprehensive income, net of tax
 
 
 
 
 
349

 
349

Issuance of common stock under employee stock purchase plan
1,343

1

 
 
10,871

 
 
10,872

Issuance of restricted stock, net
1,845

2

 
 

 
 
2

Equity-based compensation
 
 
 
 
22,637

 
 
22,637

Dividends
 
 
 
 
(42,573
)
 
 
(42,573
)
Equity component related to repurchase of 2020 Convertible Notes
 
 
 
 
(996
)
 
 
(996
)
Withholding taxes related to net share settlement of restricted awards
 
 
(661
)
(5,392
)
 
 
 
(5,392
)
Balance as of September 30, 2019
128,969

$
129

(2,467
)
$
(37,516
)
$
3,229,334

$
(3,520
)
$
(1,898,160
)
$
1,290,267


The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
 

6

Table of Contents

TIVO CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
 
Nine Months Ended September 30,
 
2019
 
2018
Operating activities:
 
 
 
Net loss
$
(187,573
)
 
$
(61,136
)
Adjustments to reconcile net loss to net cash provided by operating activities:
 
 
 
Loss (Income) from discontinued operations, net of tax
379

 
(3,738
)
Depreciation
16,005

 
16,252

Amortization of intangible assets
84,574

 
119,463

Amortization of convertible note discount and note issuance costs
11,531

 
11,586

Restructuring and asset impairment charges
6,484

 
8,568

Goodwill impairment
137,453

 

Equity-based compensation
22,459

 
28,226

Change in fair value of interest rate swaps
4,613

 
(10,245
)
Loss on debt extinguishment
300

 

Deferred income taxes
(5,418
)
 
(447
)
Other operating, net
5,507

 
1,819

Changes in operating assets and liabilities:
 
 
 
Accounts receivable
(31,803
)
 
30,548

Inventory
2,001

 
3,618

Prepaid expenses and other current assets and other long-term assets
(716
)
 
7,377

Right-of-use assets, net of lease liabilities
14,919

 

Accounts payable and accrued expenses and other long-term liabilities
(26,003
)
 
(35,237
)
Taxes payable
(1,504
)
 
(474
)
Unearned revenue
(11,563
)
 
(2,445
)
Net cash provided by operating activities - Continuing operations
41,645

 
113,735

Net cash used in operating activities - Discontinued operations
(25
)
 

Net cash provided by operating activities
41,620

 
113,735

Investing activities:
 
 
 
Payments for purchase of short- and long-term marketable securities
(69,220
)
 
(150,583
)
Proceeds from sales or maturities of short- and long-term marketable securities
165,799

 
142,753

Payments for purchase of property and equipment
(15,743
)
 
(17,053
)
Payments for acquisition of patents
(6,850
)
 

Other investing, net

 
15

Net cash provided by (used in) investing activities
73,986

 
(24,868
)
Financing activities:
 
 
 
Principal payments on long-term debt
(95,963
)
 
(5,250
)
Payments for dividends
(42,493
)
 
(66,687
)
Payments for contingent consideration and deferred holdback

 
(1,874
)
Payments for withholding taxes related to net settlement of restricted awards
(5,392
)
 
(6,755
)
Proceeds from employee stock purchase plan
10,872

 
12,854

Net cash used in financing activities
(132,976
)
 
(67,712
)
Effect of exchange rate changes on cash and cash equivalents
(134
)
 
(465
)
Net (decrease) increase in cash and cash equivalents
(17,504
)
 
20,690

Cash and cash equivalents at beginning of period
161,955

 
128,965

Cash and cash equivalents at end of period
$
144,451

 
$
149,655


The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

7

Table of Contents

TIVO CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(1) Basis of Presentation and Summary of Significant Accounting Policies

Description of Business

On April 28, 2016, Rovi Corporation ("Rovi") and TiVo Inc. (renamed TiVo Solutions Inc. ("TiVo Solutions")) entered into an Agreement and Plan of Merger (the “Merger Agreement”) for Rovi to acquire TiVo Solutions in a cash and stock transaction (the "TiVo Acquisition"). Following consummation of the TiVo Acquisition on September 7, 2016 (the "TiVo Acquisition Date"), TiVo Corporation (the "Company"), a Delaware corporation founded in April 2016 as Titan Technologies Corporation and then a wholly-owned subsidiary of Rovi, owns both Rovi and TiVo Solutions.

TiVo Corporation provides an intellectual property portfolio and products to help consumers enjoy watching their favorite entertainment. Our technologies enable an integrated entertainment experience, making entertainment content easy to find, watch and enjoy. Our product business serves up the best movies, video and shows from across live TV, on demand, streaming services and countless apps, helping people discover what to watch as they wish. For content creators and advertisers, our machine learning for personalized content recommendations, conversational voice solution and targeted advertising methodologies help deliver a passionate group of watchers to increase viewership and engagement across online video, TV and other entertainment viewing platforms. Our intellectual property business provides a global portfolio of thousands of patents that underlie this entertainment platform as well as across the broader video landscape.

On May 9, 2019, the Company announced that its Board of Directors unanimously approved a plan to separate the Product and Intellectual Property Licensing businesses into separately traded public companies (the “Separation”). The Separation is expected to be completed through a dividend of newly issued shares of the common stock of a Company subsidiary that will hold the Product business (“ProductCo”). The Company intends that the Separation will be completed in a manner generally intended to qualify as tax-deferred to TiVo Corporation’s stockholders for U.S. federal income tax purposes. The Separation, targeted for completion by April 2020, is subject to certain conditions, including, among others, obtaining final approval from TiVo Corporation's Board of Directors, receipt of a favorable opinion and/or rulings with respect to the tax-deferred nature of the transaction for U.S. federal income tax purposes and the U.S. Securities and Exchange Commission declaring ProductCo's Registration Statement effective.
    
Basis of Presentation and Principles of Consolidation

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission. Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") have been condensed or omitted in accordance with such rules and regulations. However, the Company believes the disclosures made are adequate to make the information not misleading. In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements reflect all adjustments, consisting only of normal recurring adjustments, which in the opinion of management, are considered necessary to present fairly the results for the periods presented.

The information contained in this Quarterly Report on Form 10-Q should be read in conjunction with the audited financial statements and notes thereto and other disclosures contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. The Condensed Consolidated Statements of Operations, Condensed Consolidated Statements of Comprehensive Loss, Condensed Consolidated Statements of Stockholders' Equity and the Condensed Consolidated Statements of Cash Flows for the interim periods presented are not necessarily indicative of the results to be expected for the year ended December 31, 2019, for any future year, or for any other future interim period.

The accompanying Condensed Consolidated Financial Statements include the accounts of TiVo Corporation and subsidiaries and affiliates in which the Company has a controlling financial interest after the elimination of intercompany accounts and transactions.

Certain prior year amounts have been reclassified to conform to the current year presentation.

Use of Estimates

The preparation of the Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires

8

Table of Contents

management to make estimates, assumptions and judgments that affect the reported amounts of assets and liabilities and related disclosures as of the date of the financial statements and the results of operations for the reporting period. On an ongoing basis, management evaluates its estimates, including those related to revenue recognition, long-lived asset impairment, including goodwill and intangible assets, equity-based compensation and income taxes. Actual results may differ from those estimates.

Goodwill

Goodwill represents the excess of cost over fair value of the net assets of an acquired business. The recoverability of goodwill is assessed at the reporting unit level, which is either the operating segment or one level below. Goodwill is evaluated for potential impairment annually, as of the beginning of the fourth quarter, and whenever events or changes in circumstances indicate their carrying amount may not be recoverable.

Qualitative factors are first assessed to determine whether events or changes in circumstances indicate it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount. If, based on the qualitative assessment, it is considered more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, then a quantitative impairment test is performed.

In the quantitative impairment test for goodwill, the fair value of the reporting unit is compared to its carrying amount. The fair value of the Product reporting unit and the Intellectual Property Licensing reporting unit is estimated using an income approach. Under the income approach, the fair value of a reporting unit is estimated based on the present value of estimated future cash flows and considers projected revenue growth rates, future operating margins and risk-adjusted discount rates. The carrying amount of a reporting unit is determined by assigning the assets and liabilities, including goodwill and intangible assets, to the reporting unit. If the fair value of a reporting unit exceeds its carrying amount, goodwill is not impaired. If the fair value of a reporting unit is less than its carrying amount, an impairment loss equal to the difference is recognized.

Right-of-Use Assets and Lease Liabilities

At inception of an agreement, the agreement is reviewed to determine if it is or contains a lease. If an agreement is or contains a lease, the Company recognizes a Right-of-use asset, representing the right to use an underlying asset for the lease term, and a Lease liability, representing the obligation to make lease payments arising from a lease.

Right-of-use assets and Lease liabilities are measured based on the present value of the lease payments over the lease term. The lease term includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The present value of future lease payments is calculated utilizing the discount rate implicit in the lease. If the discount rate implicit in the lease is not readily determinable, the present value of future lease payments is calculated utilizing the Company’s incremental borrowing rate. Right-of-use assets and Lease liabilities are subject to adjustment in the event of modifications to lease terms, changes in the probability that an option to extend or terminate a lease would be exercised and other factors. In addition, Right-of-use assets are periodically reviewed for impairment.

Certain of the Company’s lease agreements require variable payments, such as inflation-indexed measures. When a lease requires an indexed payment, Right-of-use assets and Lease liabilities are measured based on the variable rate in effect at the measurement date. All other variable fees, such as increases in lessor operating costs and usage-based fees, are excluded from the calculation of the Right-of-use assets and Lease liabilities and are expensed as incurred.

The Company has lease agreements that contain both lease components (e.g., fixed payments including rent, real estate taxes and insurance costs) and non-lease components (e.g., common-area maintenance costs). The Company applies a practical expedient to combine lease components and non-lease components into a single lease component for recognition and measurement purposes.

Lease expense includes amortization of the Right-of-use assets and accretion of the Lease liabilities. Amortization of the Right-of-use assets is calculated as the periodic lease cost less accretion of the lease liability. The amortization period for Right-of-use assets is limited to the expected lease term. For operating leases, lease expense is recognized in the Condensed Consolidated Statements of Operations as an operating expense over the lease term on a straight-line basis. For financing leases, amortization of the Right-of-use asset is recognized as an operating expense in the Condensed Consolidated Statements of Operations over the lease term separately from accretion of the Lease liability.
    
The Company applies a practical expedient to not measure or recognize Right-of-use assets or Lease liabilities for leases with a lease term of 12 months or less and lease expense for these leases is recognized as incurred.


9

Table of Contents

Recent Accounting Pronouncements

Standards Recently Adopted

In February 2016, the Financial Accounting Standards Board ("FASB") issued a new accounting standard for leases. The new lease accounting standard generally requires the recognition of operating and financing lease liabilities and corresponding right-of-use assets on the statement of financial position. The Company adopted the provisions of the new lease accounting standard on January 1, 2019 using the modified retrospective transition approach and certain practical expedients as described in Note 10. On adoption, the Company recognized the present value of its existing minimum lease payments as a $66.7 million Right-of-use asset and an $81.9 million Lease liability. The difference between the Right-of-use asset and the Lease liability on adoption primarily arises from previously recorded deferred rent, which was effectively reclassified to the Right-of-use asset on adoption. As a result, there was no impact on Accumulated deficit. Results for periods beginning after December 31, 2018 are presented in accordance with the new lease accounting standard, while prior period amounts were not restated and continue to be reported in accordance with the Company's previous lease accounting policies.
    
In March 2017, the FASB shortened the amortization period for certain investments in callable debt securities held at a premium to the earliest call date. Application of the shortened amortization period was effective for the Company beginning on January 1, 2019 on a modified retrospective basis. The application of the shortened amortization period did not have an effect on the Company's Condensed Consolidated Financial Statements

In February 2018, the FASB issued guidance on the reclassification of certain income tax effects from accumulated other comprehensive income resulting from the Tax Cuts and Jobs Act of 2017 (the "Tax Act of 2017"). Application of the reclassification guidance was effective for the Company beginning on January 1, 2019. On adoption, the Company made an accounting policy election to use the specific identification method to release income tax effects from Accumulated other comprehensive loss. The Company also made an accounting policy election not to reclassify the stranded tax effects of the Tax Act of 2017 from Accumulated other comprehensive loss to Accumulated deficit. The application of the reclassification guidance did not have a material effect on the Company's Condensed Consolidated Financial Statements

Standards Pending Adoption

In August 2018, the FASB modified 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 modified guidance is effective for the Company beginning on January 1, 2020, with early adoption permitted. The guidance can be applied prospectively to all arrangements entered into or materially modified after the effective date or using a retrospective transition approach. The Company does not expect application of the modified requirements for capitalizing costs incurred to implement a hosting arrangement to have a material effect on its Condensed Consolidated Financial Statements.

In June 2016, the FASB issued updated guidance that requires entities to use a current expected credit loss model to measure credit-related impairments for financial instruments held at amortized cost. 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. The updated guidance is effective for the Company beginning on January 1, 2020 and is effective 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. Early application is permitted. The Company is evaluating the effect of application on its Condensed Consolidated Financial Statements.

(2) Discontinued Operations

In the three and nine months ended September 30, 2019, the Company recognized a Loss from discontinued operations, net of tax, of $0.4 million and $0.4 million, respectively, as a result of costs incurred pursuant to certain indemnification obligations associated with previous business disposals. In the three and nine months ended September 30, 2018, the Company recognized Income from discontinued operations, net of tax, of $0.1 million and $3.7 million, respectively,

10

Table of Contents

as a result of the expiration of certain indemnification obligations and the execution of settlement agreements during the period associated with previous business disposals.

(3) Financial Statement Details

Inventory

Components of Inventory were as follows (in thousands):
 
September 30, 2019
 
December 31, 2018
Raw materials
$
411

 
$
864

Finished goods
2,645

 
6,585

Inventory
$
3,056

 
$
7,449



Property and equipment, net

Components of Property and equipment, net were as follows (in thousands):
 
September 30, 2019
 
December 31, 2018
Computer software and equipment
$
155,634

 
$
148,935

Leasehold improvements
52,389

 
47,431

Furniture and fixtures
10,317

 
9,494

Property and equipment, gross
218,340

 
205,860

Less: Accumulated depreciation and amortization
(167,979
)
 
(152,274
)
Property and equipment, net
$
50,361

 
$
53,586


    
Accounts payable and accrued expenses

Components of Accounts payable and accrued expenses were as follows (in thousands):
 
September 30, 2019
 
December 31, 2018
Accounts payable
$
13,686

 
$
2,180

Accrued compensation and benefits
34,896

 
46,466

Other accrued liabilities
59,233

 
56,335

Accounts payable and accrued expenses
$
107,815

 
$
104,981


Supplemental cash flow information (in thousands):
 
Nine Months Ended September 30,
 
2019
 
2018
Significant noncash transactions
 
 
 
Patents acquired as part of a licensing agreement
$
7,086

 
$




11

Table of Contents

(4) Revenues

Revenue Details

The following information depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors by disaggregating revenue by significant customer, contract-type, geographic area and product offering (presented in Note 15). This information includes revenue recognized from contracts with customers and revenue from other sources, including out-of-license settlements.
    
Customers representing 10% or more of Total Revenues, net were as follows:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
AT&T Inc. ("AT&T")
11
%
 
11
%
 
11
%
 
10
%


Substantially all revenue from AT&T is reported in the Intellectual Property Licensing segment.

By segment, the pattern of revenue recognition was as follows (in thousands):
 
Three Months Ended September 30, 2019
 
Three Months Ended September 30, 2018
 
Product
 
Intellectual Property Licensing
 
Total Revenues, net
 
Product
 
Intellectual Property Licensing
 
Total Revenues, net
Goods and services transferred at a point in time
$
17,616

 
$
31,062

 
$
48,678

 
$
22,093

 
$
26,528

 
$
48,621

Goods and services transferred over time
65,172

 
36,743

 
101,915

 
72,519

 
39,768

 
112,287

Out-of-license settlements

 
7,931

 
7,931

 

 
3,801

 
3,801

Total Revenues, net
$
82,788

 
$
75,736

 
$
158,524

 
$
94,612

 
$
70,097

 
$
164,709

 
Nine Months Ended September 30, 2019
 
Nine Months Ended September 30, 2018
 
Product
 
Intellectual Property Licensing
 
Total Revenues, net
 
Product
 
Intellectual Property Licensing
 
Total Revenues, net
Goods and services transferred at a point in time
$
55,963

 
$
89,493

 
$
145,456

 
$
79,569

 
$
81,977

 
$
161,546

Goods and services transferred over time
203,334

 
109,623

 
312,957

 
224,682

 
125,212

 
349,894

Out-of-license settlements

 
34,518

 
34,518

 

 
15,966

 
15,966

Total Revenues, net
$
259,297