Segment Reporting and Business Concentrations

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Segment Reporting and Business Concentrations

Segment Reporting and Business Concentrations

For the years ended December 31, 2022, 2021 and 2020, the Company conducted business through one operating segment, Vivint. The Company primarily operated in two geographic regions: United States and Canada. Revenues by geographic region were as follows (in thousands):

	United States		Canada		Total
Revenue from external customers
Year ended December 31, 2022	$	1,659,617	$	22,873	$	1,682,490
Year ended December 31, 2021	$	1,418,700	$	60,688	$	1,479,388
Year ended December 31, 2020	$	1,186,218	$	66,049	$	1,252,267

Divestiture of Subsidiary

On June 8, 2022, the Company completed the sale of its Canada business to TELUS. The sale was effected through TELUS’ purchase of the common shares of two wholly-owned subsidiaries of Vivint, Inc. for a transaction price of approximately $104.2 million. The Company received cash proceeds of $94.2 million and entered into an escrow agreement for approximately $10.0 million, included in long-term notes receivables and other assets, net on the unaudited condensed consolidated balance sheet, to be delivered 18 months from the date of the sale. In connection with the Canada Sale, the Company entered into a service agreement whereby the Company will provide certain transition services to TELUS, with an initial period of 24 months. As a result of the aforementioned sale, the Company will cease conducting operations in Canada, except for certain obligations pursuant to a transition services agreement entered into with TELUS. The Company’s financial position and results of operations include Vivint Canada, Inc. through June 8, 2022.

The following table summarizes the net gain recognized in connection with this divestiture (in thousands):

Sales price	$	104,236
Vivint Canada net assets (including cash of $2,548 and net intercompany balances)	(23,639)
Accumulated other comprehensive income	(26,019)
Vivint Inc. net intercompany balances	(23,814)
Other	(5,713)
Net gain on divestiture (Included in Other (income) loss, net)	$	25,051