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Segment Information | 12 Months Ended
--- | ---
Dec. 31, 2023
Segment Reporting [Abstract] |
Segment Information | SEGMENT INFORMATION As discussed in Note 1 “Description of Business and Summary of Significant Accounting Policies,” effective in the third quarter of 2023, the Company reports results in two operating and reportable segments: CSB and Solar. Prior to the third quarter of 2023, the Commercial Business was reflected in the Commercial reportable segment. Certain allocated shared costs that were previously included in the Commercial reportable segment that do not qualify to be presented within discontinued operations are now reflected in the CSB reportable segment consistent with other unallocated corporate and other costs as discussed below. The Company organizes its segments based on customer type as follows: •CSB - The CSB segment primarily includes (i) revenue and operating costs from the sale, installation, servicing, and monitoring of integrated security and automation systems, as well as other related offerings; (ii) other operating costs associated with support functions related to these operations; and (iii) general corporate costs and other income and expense items not included in the Solar segment. Customers in the CSB segment are comprised of owners and renters of residential properties, small business operators, and other individual consumers. •Solar - The Solar segment primarily includes (i) revenue and operating costs from the sale and installation of solar and related solutions and services; (ii) other operating costs associated with support functions related to these operations; and (iii) certain dedicated corporate costs and other income and expense items. Customers in the Solar segment are comprised of residential homeowners who purchase solar and energy storage solutions, energy efficiency upgrades, and roofing services. The CODM uses Adjusted EBITDA from continuing operations (“Adjusted EBITDA”), which is the Company’s segment profit measure, to evaluate segment performance. Adjusted EBITDA is defined as income (loss) from continuing operations 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 items such as separation costs; (vii) losses on extinguishment of debt; (viii) radio conversion costs, net; (ix) adjustments related to acquisitions, such as contingent consideration and purchase accounting adjustments, or dispositions; (x) impairment charges; and (xi) other income/gain or expense/loss items such as changes in fair value of certain financial instruments or financing and consent fees. The CODM does not review the Company's assets by segment; therefore, such information is not presented. The accounting policies of the Company’s reportable segments are the same as those of the Company. Reconciliations The following table presents total revenue by segment and a reconciliation to consolidated total revenue:
|  |  |  | Years Ended December 31,
(in thousands) |  |  |  |  |  | 2023 |  | 2022 |  | 2021
CSB |  |  |  |  |  | $ | 4,652,824 |  |  | $ | 4,381,904 |  |  | $ | 4,155,372 |
Solar |  |  |  |  |  | 329,835 |  |  | 786,426 |  |  | 47,351 |
Total Revenue |  |  |  |  |  | $ | 4,982,659 |  |  | $ | 5,168,330 |  |  | $ | 4,202,723 |
The following table presents Adjusted EBITDA by segment and a reconciliation to consolidated income (loss) from continuing operations before income taxes and equity in net earnings (losses) of equity method investee:
|  |  | Years Ended December 31,
(in thousands) |  |  |  |  | 2023 |  | 2022 |  | 2021
Adjusted EBITDA by segment: |  |  |  |  |  |  |  |  |
CSB |  |  |  |  | $ | 2,481,305 |  |  | $ | 2,305,032 |  |  | $ | 2,101,659 |
Solar |  |  |  |  | (116,505) |  |  | 5,155 |  |  | 5,588 |
Total |  |  |  |  | $ | 2,364,800 |  |  | $ | 2,310,187 |  |  | $ | 2,107,247 |
Reconciliation: |  |  |  |  |  |  |  |  |
Total segment Adjusted EBITDA |  |  |  |  | $ | 2,364,800 |  |  | $ | 2,310,187 |  |  | $ | 2,107,247 |
Less: |  |  |  |  |  |  |  |  |
Interest expense, net |  |  |  |  | 572,150 |  |  | 264,265 |  |  | 456,825 |
Depreciation and intangible asset amortization |  |  |  |  | 1,350,980 |  |  | 1,615,830 |  |  | 1,839,658 |
Amortization of deferred subscriber acquisition costs |  |  |  |  | 188,222 |  |  | 154,186 |  |  | 118,162 |
Amortization of deferred subscriber acquisition revenue |  |  |  |  | (301,708) |  |  | (235,190) |  |  | (164,180) |
Share-based compensation expense |  |  |  |  | 39,438 |  |  | 53,497 |  |  | 47,111 |
Merger, restructuring, integration, and other(1) |  |  |  |  | 62,172 |  |  | 17,229 |  |  | 39,159 |
Goodwill impairment(2) |  |  |  |  | 511,176 |  |  | 200,974 |  |  | — |
Loss on extinguishment of debt(3) |  |  |  |  | 16,621 |  |  | — |  |  | 37,113 |
Change in fair value of financial instruments(4) |  |  |  |  | — |  |  | 63,396 |  |  | — |
Radio conversion costs, net(1) |  |  |  |  | (4,696) |  |  | 1,708 |  |  | 201,802 |
Non-cash acquisition related adjustments and other, net(5) |  |  |  |  | (9,600) |  |  | 29,747 |  |  | 7,431 |
Equity in net earnings (losses) of equity method investee |  |  |  |  | 6,572 |  |  | (4,601) |  |  | — |
Income (loss) from continuing operations before income taxes and equity in net earnings (losses) of equity method investee |  |  |  |  | $ | (66,527) |  |  | $ | 149,146 |  |  | $ | (475,834) |
___________________ (1)Refer to Note 1 “Description of Business and Summary of Significant Accounting Policies.” (2)Refer to Note 7 “Goodwill and Other Intangible Assets.” (3)Refer to Note 8 “Debt.” (4)Refer to Note 11 “Equity.” (5)During 2023, primarily represents the gain on sale of a business and other investment partially offset by financing fees and interest rate swaps included in other income (expense). During 2022 and 2021, primarily represents the amortization of the customer backlog intangible asset acquired in the ADT Solar Acquisition, which was fully amortized as of March 2022. Refer to Note 4 “Acquisitions.” During 2022, also includes the gain on sale of a business. Entity-Wide Disclosures Revenue outside of the U.S. is not material. As of December 31, 2023 and 2022, substantially all of the Company’s assets were located in the U.S.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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