Goodwill and Intangible Assets, Net

3 Months Ended

Mar. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

The changes in goodwill by reportable segment are outlined below (in thousands):



	Alarm.com		Other		Total
Balance as of January 1, 2017	$	24,723	$	—	$	24,723
Goodwill acquired	39,379		—		39,379
Balance as of March 31, 2017	$	64,102	$	—	$	64,102

On January 1, 2017, we acquired ObjectVideo Labs and preliminarily recorded $2.7 million of goodwill in the Alarm.com segment. On March 8, 2017, in connection with the Acquisition, we preliminarily recorded $36.7 million of goodwill in the Alarm.com segment. There were no impairments of goodwill during the three months ended March 31, 2017 and 2016.

The following table reflects changes in the net carrying amount of the components of intangible assets (in thousands):



	Customer Relationships			Developed Technology			Trade Name			Total
Balance as of January 1, 2017	$	3,363		$	1,048		$	157		$	4,568
Intangible assets acquired	93,250			8,169			170			101,589
Amortization	(833		)	(646		)	(14		)	(1,493		)
Balance as of March 31, 2017	$	95,780		$	8,571		$	313		$	104,664

We recorded $1.5 million of amortization related to our intangible assets for the three months ended March 31, 2017 as compared to $0.5 million for the same period in the prior year. There were no impairments of long-lived assets during the three months ended March 31, 2017 and 2016.

The following tables reflect the weighted average remaining life and carrying value of finite-lived intangible assets (in thousands):



	March 31, 2017
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Value		Weighted- Average Remaining Life
Customer relationships	$	103,916	$	(8,136	)	$	95,780	11.5
Developed technology	13,559		(4,988		)	8,571		2.7
Trade name	1,084		(771		)	313		3.9
Other	234		(234		)	—		0.0
Total intangible assets	$	118,793	$	(14,129	)	$	104,664



	December 31, 2016
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Value		Weighted- Average Remaining Life
Customer relationships	$	10,666	$	(7,303	)	$	3,363	3.8
Developed technology	5,390		(4,342		)	1,048		4.1
Trade name	914		(757		)	157		4.3
Other	234		(234		)	—		0.0
Total intangible assets	$	17,204	$	(12,636	)	$	4,568

The following table reflects the future estimated amortization expense for intangible assets (in thousands):



Year Ending December 31,	Amortization
Remainder of 2017	$	10,551
2018	14,981
2019	13,692
2020	12,208
2021 and thereafter	53,232
Total future amortization expense	$	104,664

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details