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Intangible Assets and Goodwill | 3 Months Ended
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Mar. 29, 2025
Goodwill and Intangible Assets Disclosure [Abstract] |
Intangible Assets and Goodwill | Intangible Assets and Goodwill On March 6, 2025, the Company acquired Theatro, a maker of AI and voice-powered communication and digital workflow software for frontline workers for $173 million, net of cash acquired. In addition, the Company issued restricted stock at a fair value price of $5 million to certain key employees that will be expensed over a service period of three years. The acquisition enhances the Company's portfolio by integrating Theatro's AI voice assistant in the Company's complementary workflows across our portfolio of enterprise technologies, including body cameras, fixed video, panic buttons and radios. The Company recognized $126 million of goodwill, $54 million o f identifiable intangib le assets, and $7 million of net liabilities. The goodwill is not deductible for tax purposes. The identifiable intangible assets were classified as $1 million of trade names, $24 million of customer relationships and $29 million of developed technology and will be amortized over a period of three, fifteen and twelve year s, respectively. The business is part of the Software and Services 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. On February 21, 2025, the Company acquired RapidDeploy, a provider of cloud-native 911 solutions for public safety for $241 million, net of cash acquired. In addition, the Company issued restricted stock at a fair value of $6 million to certain key employees that will be expensed over a service period of two years. The acquisition complements the Company's Command Center portfolio of 911 solutions. The Company recognized $186 million of goodwill, $77 million of iden tifiable intangible assets, and $22 million of net liabilities. The goodwill is not deductible for tax purposes. The identifiable intangible assets were classified as $6 million of trade names, $32 million of customer relationships and $39 million of developed technology and will be amortized over a period of nine, eighteen and thirteen years, respectively. The business is part of the Software and Services 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. On October 29, 2024, the Company acquired 3tc Software ("3tc"), a provider of control room software solutions for $23 million, net of cash acquired. In addition, the Company issued restricted stock at a fair value of $4 million to certain key employees that will be expensed over a service period of one year. The acquisition expands the Company's critical experience and innovation focused on advancing CAD for the U.K.'s public safety agencies. The Company recognized $13 million of goodwill, $11 million of identifiable intangible assets, and $1 million of net liabilities. The goodwill is not deductible for tax purposes. The identifiable intangible asset was classified as $11 million of developed technology and will be amortized over a period of seven years. The business is part of the Software and Services 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. On July 1, 2024, the Company acquired Noggin, a global provider of CEM software for $91 million, net of cash acquired. In addition, the Company issued restricted stock at a fair value of $19 million to certain key employees that will be expensed over a service period of three years. This acquisition enhances the Company's portfolio by adding operational resilience and CEM capabilities, which help enterprises and critical infrastructure anticipate, prepare for and efficiently respond to incidents. The Company recognized $50 million of goodwill, $53 million o f identifiable intangible assets, and $12 million of net liabilities. The goodwill is not deductible for tax purposes. The identifiable intangible assets were classified as $1 million of trade names, $7 million of customer relationships and $45 million of developed technology and will be amortized over a period of three, fifteen and thirteen years, respectively. The business is part of the Software and Services segment. The purchase accounting is not yet complete and as such, the final allocation among income tax accounts, net liabilities and goodwill may be subject to change. On July 1, 2024, the Company acquired a company that provides vehicle location and management solutions for $132 million, net of cash acquired. In addition, the Company issued restricted stock at a fair value of $3 million to certain key employees that will be expensed over a service period of three years. The Company recognized $62 million of goodwill, $65 million o f identifiable intangible assets and $5 million of net assets. The goodwill is deductible for tax purposes. The identifiable intangible assets were classified as $11 million of trade names, $51 million of customer relationships and $3 million of developed technology and will be amortized over a period of nine, eighteen and six years, respectively. The acquisition expands the Company's video solutions within the Software and Services segment. The purchase accounting is not yet complete and as such, the final allocation among income tax accounts, net assets and goodwill may be subject to change. 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 $16 million of goodwill, $22 million of identifiable intangible assets and $1 million of net liabilities. The goodwill is not deductible for tax purposes. The identifiable intangible assets were classified as $1 million of trade names, $10 million of customer relationships and $11 million of developed technology and will be amortized over a period of two, fourteen and ten years, respectively. The business is a part of the Products and Systems Integration segment. The purchase accounting was completed as of the first quarter of 2025. Intangible Assets Amortized intangible assets were comprised of the following:
| March 29, 2025 |  | December 31, 2024
| Gross Carrying Amount |  | Accumulated Amortization |  | Gross Carrying Amount |  | Accumulated Amortization
Developed technology | $ | 1,302 |  |  | $ | 558 |  |  | $ | 1,226 |  |  | $ | 535 |
Customer-related | 1,690 |  |  | 1,129 |  |  | 1,609 |  |  | 1,093 |
Other intangibles | 127 |  |  | 79 |  |  | 118 |  |  | 76 |
| $ | 3,119 |  |  | $ | 1,766 |  |  | $ | 2,953 |  |  | $ | 1,704 |
Amortization expense on intangible assets was $37 million for the three months ended March 29, 2025. Amortization expense on intangible assets was $39 million for the three months ended March 30, 2024. As of March 29, 2025, annual amortization expense is estimated to be $152 million in 2025, $145 million in 2026, $135 million in 2027, $134 million in 2028, $122 million in 2029 and $120 million in 2030. Amortized intangible assets were comprised of the following by segment:
| March 29, 2025 |  | December 31, 2024
| Gross Carrying Amount |  | Accumulated Amortization |  | Gross Carrying Amount |  | Accumulated Amortization
Products and Systems Integration | $ | 1,017 |  |  | $ | 427 |  |  | $ | 1,017 |  |  | $ | 409 |
Software and Services | 2,102 |  |  | 1,339 |  |  | 1,936 |  |  | 1,295 |
| $ | 3,119 |  |  | $ | 1,766 |  |  | $ | 2,953 |  |  | $ | 1,704 |
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, 2025 to March 29, 2025:
| Products and Systems Integration |  | Software and Services |  | Total
Balance as of January 1, 2025 | $ | 1,573 |  |  | $ | 1,953 |  |  | $ | 3,526 |
Goodwill acquired | — |  |  | 312 |  |  | 312 |
Purchase accounting adjustments | — |  |  | (6) |  |  | (6) |
Foreign currency | 1 |  |  | 8 |  |  | 9 |
Balance as of March 29, 2025 | $ | 1,574 |  |  | $ | 2,267 |  |  | $ | 3,841 |

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