Goodwill and Intangible Assets, Net

9 Months Ended

Sep. 30, 2023

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, 2023	$	148,183	$	—	$	148,183
Goodwill acquired	7,200		—		7,200
Measurement period adjustments	(1,509)		—		(1,509)
Foreign currency translation adjustment	(27)		—		(27)
Balance as of September 30, 2023	$	153,847	$	—	$	153,847

On January 18, 2023, we acquired 100% of the issued and outstanding shares of capital stock of EBS and initially recorded $7.2 million of goodwill in the Alarm.com segment. The measurement period adjustments relate to the Noonlight and EBS working capital and tax adjustments during the three and nine months ended September 30, 2023.

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


	Customer Relationships		Developed Technology		Trade Name		Capitalized Software Development Costs		Total
Balance as of January 1, 2023	$	47,522	$	33,553	$	1,383	$	—	$	82,458
Intangible assets acquired	2,395		11,583		537		—		14,515
Capitalized software development costs	—		—		—		397		397
Amortization	(8,141)		(6,168)		(563)		—		(14,872)
Balance as of September 30, 2023	$	41,776	$	38,968	$	1,357	$	397	$	82,498

We recorded $5.6 million and $14.9 million of amortization related to our intangible assets for the three and nine months ended September 30, 2023, respectively, as compared to $4.6 million and $13.7 million for the same periods in the prior year. There were no impairments of long-lived intangible assets during the three and nine months ended September 30, 2023 and 2022. During the nine months ended September 30, 2022, we wrote-off $0.7 million in fully amortized intangible assets in the Alarm.com segment that were acquired in 2014 related to customer relationships, developed technology, trade name and other intangible assets that no longer existed as of January 1, 2022.

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


	September 30, 2023
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Value		Weighted- Average Remaining Life (in years)
Customer relationships	$	128,280	$	(86,504)	$	41,776	6.4
Developed technology	70,061		(31,093)		38,968		5.0
Trade name	4,474		(3,117)		1,357		2.7
Capitalized software development costs	397		—		397		3.0
Total intangible assets	$	203,212	$	(120,714)	$	82,498	5.6


	December 31, 2022
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Value		Weighted- Average Remaining Life (in years)
Customer relationships	$	125,885	$	(78,363)	$	47,522	7.0
Developed technology	58,478		(24,925)		33,553		5.8
Trade name	3,937		(2,554)		1,383		2.4

Total intangible assets	$	188,300	$	(105,842)	$	82,458	6.5