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Condensed Financial Information of Registrant
 12 Months Ended
Dec. 31, 2021
Condensed Financial Information Disclosure [Abstract]  
Condensed Financial Information of Registrant Condensed Financial Information of Registrant
ADT INC.
(PARENT COMPANY ONLY)
CONDENSED BALANCE SHEETS
(in thousands)
December 31,
2021		December 31,
2020
Assets
Current assets:
Cash and cash equivalents$1,947 $139,092 
Total current assets1,947 139,092 
Investment in subsidiaries and other assets3,850,198 3,472,397 
Total assets$3,852,145 $3,611,489 
Liabilities and stockholders' equity
Current liabilities:
Dividends payable and other current liabilities$47,482 $34,084 
Total current liabilities47,482 34,084 
Long-term debt527,098 518,335 
Other liabilities28,846 19,734 
Total liabilities603,426 572,153 
Total stockholders' equity3,248,719 3,039,336 
Total liabilities and stockholders' equity $3,852,145 $3,611,489 
The accompanying notes are an integral part of these condensed financial statements
ADT INC.
(PARENT COMPANY ONLY)
CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(in thousands, except per share data)
Years Ended December 31,
202120202019
Selling, general, and administrative expenses$117 $807 $477 
Merger, restructuring, integration, and other(1,444)4,532 130 
Operating income (loss)(1,327)5,339 607 
Interest expense, net(8,743)(8,342)(211)
Equity in net loss of subsidiaries(333,404)(618,512)(423,332)
Net income (loss)(340,820)(632,193)(424,150)
Other comprehensive income (loss), net of tax49,642 (60,239)13,403 
Comprehensive income (loss)$(291,178)$(692,432)$(410,747)
Net income (loss) per share - basic:
Common stock$(0.41)$(0.82)$(0.57)
Class B common stock$(0.41)$(0.72)$— 
Weighted-average shares outstanding - basic:
Common stock770,620 760,483 747,238 
Class B common stock54,745 15,855 — 
Net income (loss) per share - diluted:
Common stock$(0.41)$(0.82)$(0.57)
Class B common stock$(0.41)$(0.74)$— 
Weighted-average shares outstanding - diluted:
Common stock770,620 760,483 747,238 
Class B common stock54,745 17,944 — 
The accompanying notes are an integral part of these condensed financial statements
ADT INC.
(PARENT COMPANY ONLY)
CONDENSED STATEMENTS OF CASH FLOWS
(in thousands)
Years Ended December 31,
202120202019
Cash flows from operating activities:
Net income (loss)$(340,820)$(632,193)$(424,150)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Equity in net loss of subsidiaries333,404 618,512 423,332 
Other, net24,391 30,687 39,910 
Net cash provided by (used in) operating activities16,975 17,006 39,092 
Cash flows from investing activities:
Contributions to subsidiaries(40,000)(275,000)— 
Distributions from subsidiaries8,700 260,852 167,203 
Acquisition of businesses— (201,453)— 
Other investing, net— 750 (750)
Net cash provided by (used in) investing activities(31,300)(214,851)166,453 
Cash flows from financing activities:
Proceeds from issuance of common stock, net of related expenses— 447,811 — 
Proceeds from long-term borrowings— — 509,460 
Dividends on common stock(116,348)(109,328)(564,767)
Repurchases of common stock— (4)(149,868)
Other financing, net(6,472)(1,896)(24)
Net cash provided by (used in) financing activities(122,820)336,583 (205,199)
Cash and cash equivalents and restricted cash and restricted cash equivalents:
Net increase (decrease) during the period(137,145)138,738 346 
Beginning balance139,092 354 8 
Ending balance$1,947 $139,092 $354 
Supplementary cash flow information:
Issuance of shares in lieu of cash dividends$4 $15 $67,767 
Issuance of shares for acquisition of business$528,503 $113,841 $— 
The accompanying notes are an integral part of these condensed financial statements
Notes to Condensed Financial Statements (Parent Company Only)
1. Basis of Presentation
The condensed financial statements of ADT Inc. have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X, as the restricted net assets of the subsidiaries of ADT Inc. (as defined in Rule 4-08(e)(3) of Regulation S-X) exceed 25% of the consolidated net assets of the Company. The ability of ADT Inc.’s operating subsidiaries to pay dividends may be restricted due to the terms of the subsidiaries’ First Lien Credit Agreement and the indentures governing other borrowings.
The condensed financial statements of ADT Inc. have been prepared using the same accounting principles and policies described in Note 1 “Description of Business and Summary of Significant Accounting Policies” with the only exception being that the parent company accounts for its subsidiaries using the equity method of accounting. These condensed financial statements should be read in conjunction with the Company’s consolidated financial statements and related notes thereto.
2. Transactions with Subsidiaries
The majority of ADT Inc.’s transactions with its subsidiaries are related to (i) the receipt of distributions from subsidiaries in order to fund equity transactions, such as the payment of dividends and the repurchase of Common Stock, (ii) the contribution to subsidiaries of proceeds received from equity transactions, or (iii) the integration of business acquisitions into the Company’s organizational structure.
During 2021, ADT Inc. made non-cash contributions to subsidiaries of approximately $630 million related to the transfer of net assets of certain subsidiaries for the acquisition of Sunpro Solar, including $529 million in the issuance of shares, as well as, share-based compensation.
During 2020, ADT Inc. acquired Defenders and Cell Bounce. In addition, ADT Inc. received a non-cash distribution of $43 million related to intangible assets from a subsidiary and made non-cash contributions to subsidiaries of approximately $434 million related to the transfer of net assets of certain subsidiaries and share-based compensation.
During 2019, ADT Inc. entered into an intercompany loan with a subsidiary in connection with the sale of ADT Canada. ADT Inc. also received non-cash distributions from subsidiaries of $891 million primarily related to the distribution of net assets and intercompany loans in connection with the sale of ADT Canada. In addition, ADT Inc. made non-cash contributions to subsidiaries of approximately $146 million primarily related to share-based compensation and intercompany loans in connection with the sale of ADT Canada.