Goodwill and Intangible Assets, Net

12 Months Ended

Dec. 31, 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, 2022	$	112,901	$	—	$	112,901
Goodwill acquired - initial measurement	37,907		—		37,907
Measurement period adjustment	(2,625)		—		(2,625)
Balance as of December 31, 2022	148,183		—		148,183
Goodwill acquired - initial measurement	7,200		—		7,200
Measurement period adjustment	(1,509)		—		(1,509)
Foreign currency translation adjustment	624		—		624
Balance as of December 31, 2023	$	154,498	$	—	$	154,498

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 2023 measurement period adjustments related to the Noonlight and EBS working capital and tax adjustments during the year ended December 31, 2023. On September 23, 2022, we acquired 85% of the issued and outstanding shares of capital stock of Noonlight and initially recorded $37.9 million of goodwill in the Alarm.com segment. Additionally, during 2022, we recorded a measurement period adjustment related to the assessment of the net operating losses acquired, which resulted in us recording a decrease to goodwill of $2.6 million. There were no impairments of goodwill recorded during the years ended December 31, 2023, 2022 or 2021. As of December 31, 2023, the accumulated balance of goodwill impairments was $4.8 million, which is related to our acquisition of EnergyHub in 2013.

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, 2022	$	59,426	$	30,157	$	1,823	$	—	$	91,406
Intangible assets acquired	—		9,335		150		—		9,485

Amortization	(11,904)		(5,939)		(590)		—		(18,433)
Balance as of December 31, 2022	47,522		33,553		1,383		—		82,458
Intangible assets acquired	2,395		11,583		537		—		14,515
Capitalized software development costs	—		—		—		882		882

Amortization	(10,623)		(7,962)		(703)		(3)		(19,291)
Balance as of December 31, 2023	$	39,294	$	37,174	$	1,217	$	879	$	78,564

We recorded $19.3 million, $18.4 million and $17.1 million of amortization related to our intangible assets for the years ended December 31, 2023, 2022 and 2021, respectively. There were no impairments of long-lived intangible assets during the years ended December 31, 2023 and 2022. We determined there was an impairment of $0.1 million for the remaining value of an intangible asset in the Alarm.com segment that was acquired in 2014 related to customer relationships that no longer existed after December 31, 2021, which was included in other income / (expense), net in our consolidated statements of operations for the year ended December 31, 2021. During the year ended December 31, 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):


	December 31, 2023
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Value		Weighted- Average Remaining Life (in years)
Customer relationships	$	128,280	$	(88,986)	$	39,294	6.2
Developed technology	70,061		(32,887)		37,174		4.7
Trade name	4,474		(3,257)		1,217		2.6
Capitalized software development costs	882		(3)		879		3.3
Total intangible assets	$	203,697	$	(125,133)	$	78,564	5.4


	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

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


Year Ended December 31,	Amortization
2024	$	18,370
2025	17,575
2026	16,045
2027	13,787
2028	8,839
2029 and thereafter	3,948
Total future amortization expense	$	78,564