XML 122 R12.htm IDEA: XBRL DOCUMENT v3.22.1
GOODWILL AND OTHER INTANGIBLE ASSETS
3 Months Ended
Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill
Changes in the carrying amounts of goodwill by reportable segment were as follows:
(in thousands)CSBCommercialSolarTotal
Balance as of December 31, 2021$4,915,832 $332,845 $694,726 $5,943,403 
Acquisitions(1)
— 180 8,906 9,086 
Reclassification to held for sale— (11,731)— (11,731)
Balance as of March 31, 2022$4,915,832 $321,294 $703,632 $5,940,758 
________________
(1)     Includes the impact of measurement period adjustments. During the three months ended March 31, 2022, measurement period adjustments were not material.
The Company had no accumulated goodwill impairment losses as of March 31, 2022 or December 31, 2021.
Other Intangible Assets
Other intangible assets reflected in the Condensed Consolidated Balance Sheets consisted of the following:
March 31, 2022December 31, 2021
(in thousands)Gross Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Gross Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Definite-lived intangible assets:
Contracts and related customer relationships$8,913,868 $(6,020,281)$2,893,587 $8,719,363 $(5,753,345)$2,966,018 
Dealer relationships1,518,020 (479,156)1,038,864 1,518,020 (459,248)1,058,772 
Other253,783 (233,570)20,213 263,133 (207,572)55,561 
Total definite-lived intangible assets10,685,671 (6,733,007)3,952,664 10,500,516 (6,420,165)4,080,351 
Indefinite-lived intangible assets:
Trade name1,333,000 — 1,333,000 1,333,000 — 1,333,000 
Intangible assets$12,018,671 $(6,733,007)$5,285,664 $11,833,516 $(6,420,165)$5,413,351 
The change in the net carrying amount of contracts and related customer relationships during the period was as follows:
(in thousands)
Balance as of December 31, 2021$2,966,018 
Customer contract additions, net of dealer charge-backs(1)
197,605 
Amortization(268,698)
Other(1,338)
Balance as of March 31, 2022$2,893,587 
________________
(1)     The weighted-average amortization period for customer contract additions was 13 years.
During the three months ended March 31, 2022, the Company paid $185 million related to customer contract additions under the ADT Authorized Dealer Program and from other third parties, which is included in dealer generated customer accounts and bulk account purchases on the Condensed Consolidated Statements of Cash Flows.
In addition, contracts and related customer relationships includes customer accounts purchased from certain other third parties during the three months ended March 31, 2022 for an aggregate contractual purchase price of $68 million, subject to reduction based on customer retention. The Company paid initial cash at the closings in the aggregate amount of $55 million, which is included in the payments for dealer generated customer accounts and bulk account purchases described above.
Definite-lived intangible asset amortization expense reflected in the Condensed Consolidated Statements of Operations was as follows:
Three Months Ended March 31,
(in thousands)20222021
Definite-lived intangible asset amortization expense$291,947 $299,327