XML 33 R21.htm IDEA: XBRL DOCUMENT v3.21.2
Segment Information
 6 Months Ended
Jun. 30, 2021
Segment Reporting [Abstract]  
Segment Information Segment Information
Effective in the first quarter of 2021, the manner in which the Company’s Chief Executive Officer, who is the CODM, evaluates performance and makes decisions about how to allocate resources changed. Therefore, the Company now reports results in two operating and reportable segments, CSB and Commercial, rather than a single operating and reportable segment. Refer to Note 1 “Description of Business and Summary of Significant Accounting Policies,” for a description of the Company’s segments.
Where applicable, prior periods have been retrospectively adjusted to reflect the new operating and reportable segment structure.
The CODM uses Adjusted EBITDA, which is the segment profit measure, to evaluate segment performance.
Adjusted EBITDA is defined as net income or loss adjusted for (i) interest, (ii) taxes, (iii) depreciation and amortization, including depreciation of subscriber system assets and other fixed assets and amortization of dealer and other intangible assets, (iv) amortization of deferred costs and deferred revenue associated with subscriber acquisitions, (v) share-based compensation
expense, (vi) merger, restructuring, integration, and other, (vii) losses on extinguishment of debt, (viii) radio conversion costs, net, (ix) financing and consent fees, (x) acquisition related adjustments, and (xi) other charges and non-cash items.
The CODM does not review the Company's assets by segment; therefore, such information is not presented.
The following table presents total revenue by segment and a reconciliation to consolidated total revenue:
Three Months EndedSix Months Ended
(in thousands)June 30, 2021June 30, 2020June 30, 2021June 30, 2020
CSB$1,022,647 $1,102,186 $2,061,252 $2,213,353 
Commercial281,770 229,201 547,869 487,786 
Total Revenue$1,304,417 $1,331,387 $2,609,121 $2,701,139 
The following table presents Adjusted EBITDA by segment and a reconciliation to consolidated net loss before taxes:
Three Months EndedSix Months Ended
(in thousands)June 30, 2021June 30, 2020June 30, 2021June 30, 2020
Adjusted EBITDA by segment:
CSB$509,897 $550,686 $1,029,375 $1,087,761 
Commercial31,968 12,424 54,621 14,838 
Total$541,865 $563,110 $1,083,996 $1,102,599 
Reconciliation to consolidated net loss before taxes:
Total segment Adjusted EBITDA$541,865 $563,110 $1,083,996 $1,102,599 
Less:
Interest expense, net166,525 187,265 214,249 412,632 
Depreciation and intangible asset amortization474,271 477,869 944,080 966,893 
Amortization of deferred subscriber acquisition costs30,188 22,789 58,830 45,416 
Amortization of deferred subscriber acquisition revenue(40,729)(29,540)(77,888)(59,017)
Share-based compensation expense13,587 24,828 29,606 48,327 
Merger, restructuring, integration, and other4,804 12,038 25,311 120,832 
Loss on extinguishment of debt— — 156 65,843 
Radio conversion costs, net(1)
60,635 5,031 119,364 11,670 
Financing and consent fees(2)
399 10 3,745 5,260 
Other(3)
(944)(2,608)(4,129)(2,428)
Net loss before taxes$(166,871)$(134,572)$(229,328)$(512,829)
___________________
(1)Represents costs, net of any incremental revenue earned, associated with replacing cellular technology used in many of the Company’s security systems pursuant to a replacement program.
(2)Represents fees expensed associated with financing transactions.
(3)Represents other charges and non-cash items.