XML 35 R23.htm IDEA: XBRL DOCUMENT
v3.24.1.u1

Intangible Assets and Goodwill | 3 Months Ended
--- | ---
Mar. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
Intangible Assets and Goodwill | Intangible Assets and Goodwill On February 13, 2024, the Company acquired Silent Sentinel, a provider of specialized, long-range cameras, for $37 million, net of cash acquired. This acquisition complements the Company's portfolio of fixed video cameras, expanding its footprint with government and critical infrastructure customers, and strengthens the Company's position as a global leader in end-to-end video security solutions. The Company recognized $17 million of goodwill, $19 million of identifiable intangible assets and $1 million of net assets. The goodwill is not deductible for tax purposes. The identifiable intangible assets were classified as $1 million of trade names, $6 million of customer relationships and $12 million of developed technology and will be amortized over a period of two, fifteen and nine years, respectively. The business is a part of the Products and Systems Integration segment. The purchase accounting is not yet complete and as such, the final allocation among income tax accounts, intangible assets, net assets and goodwill may be subject to change. On December 15, 2023, the Company acquired IPVideo Corporation ("IPVideo"), the creator of the HALO Smart Sensor, for $170 million, net of cash acquired. The transaction also includes the potential for the Company to make contingent earn-out payments of up to $15 million based on IPVideo's achievement of certain financial targets from January 1, 2024 through December 31, 2024. As of the acquisition date, the Company estimated the fair value of the contingent earn-out to be $2 million, which is included in the purchase price. In addition, the Company issued restricted stock at a fair value of $5 million to certain key employees that will be expensed over a service period of one year. The HALO Smart Sensor is a multifunctional safety and security device with built-in vape detection and air quality monitoring, gunshot detection, abnormal noise and motion detection and emergency keyword detection. This acquisition adds sensor technology to the Company's physical security portfolio. The Company recognized $106 million of goodwill, $72 million of identifiable intangible assets and $8 million of net liabilities. The goodwill is not deductible for tax purposes. The identifiable intangible assets were classified as $8 million of trade names, $6 million of customer relationships and $58 million of developed technology and will be amortized over a period of eight, twelve and fifteen years, respectively. The business is a part of the Products and Systems Integration segment. The purchase accounting is not yet complete and as such, the final allocation among income tax accounts, intangible assets, net liabilities and goodwill may be subject to change. Intangible Assets Amortized intangible assets were comprised of the following:
| March 30, 2024 |  | December 31, 2023
| Gross Carrying Amount |  | Accumulated Amortization |  | Gross Carrying Amount |  | Accumulated Amortization
Developed technology | $ | 1,167 |  |  | $ | 467 |  |  | $ | 1,156 |  |  | $ | 447 |
Customer-related | 1,556 |  |  | 1,059 |  |  | 1,566 |  |  | 1,055 |
Other intangibles | 107 |  |  | 72 |  |  | 107 |  |  | 72 |
| $ | 2,830 |  |  | $ | 1,598 |  |  | $ | 2,829 |  |  | $ | 1,574 |
Amortization expense on intangible assets was $39 million for the three months ended March 30, 2024. Amortization expense on intangible assets was $55 million for the three months ended April 1, 2023. As of March 30, 2024, annual amortization expense is estimated to be $146 million in 2024, $133 million in 2025, $125 million in 2026, $114 million in 2027, $114 million in 2028 and $102 million in 2029. Amortized intangible assets were comprised of the following by segment:
| March 30, 2024 |  | December 31, 2023
| Gross Carrying Amount |  | Accumulated Amortization |  | Gross Carrying Amount |  | Accumulated Amortization
Products and Systems Integration | $ | 1,004 |  |  | $ | 355 |  |  | $ | 985 |  |  | $ | 337 |
Software and Services | 1,826 |  |  | 1,243 |  |  | 1,844 |  |  | 1,237 |
| $ | 2,830 |  |  | $ | 1,598 |  |  | $ | 2,829 |  |  | $ | 1,574 |
Goodwill The Company performed its annual assessment of goodwill for impairment as of the last day of the third quarter. The following table displays a roll-forward of the carrying amount of goodwill by segment from January 1, 2024 to March 30, 2024:
| Products and Systems Integration |  | Software and Services |  | Total
Balance as of January 1, 2024 | $ | 1,568 |  |  | $ | 1,833 |  |  | $ | 3,401 |
Goodwill acquired | 17 |  |  | — |  |  | 17 |
Purchase accounting adjustments | (3) |  |  | — |  |  | (3) |
Foreign currency | (1) |  |  | (4) |  |  | (5) |
Balance as of March 30, 2024 | $ | 1,581 |  |  | $ | 1,829 |  |  | $ | 3,410 |

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 350 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//350/tableOfContent + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration