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Condensed Financial Information of Registrant
 12 Months Ended
Dec. 31, 2023
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,
20232022
Assets
Current assets:
Cash and cash equivalents$1,118 $14,639 
Total current assets1,118 14,639 
Investment in subsidiaries and other assets4,463,543 4,036,420 
Total assets$4,464,661 $4,051,059 
Liabilities and stockholders' equity
Current liabilities:
Dividends payable and other current liabilities$33,047 $34,424 
Total current liabilities33,047 34,424 
Long-term debt545,557 536,495 
Other liabilities97,411 86,992 
Total liabilities676,015 657,911 
Total stockholders' equity3,788,646 3,393,148 
Total liabilities and stockholders' equity $4,464,661 $4,051,059 
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,
202320222021
Selling, general, and administrative expenses$520 $2,583 $117 
Merger, restructuring, integration, and other(1,993)(6,011)(1,444)
Operating income (loss)1,473 3,428 1,327 
Interest expense, net(8,984)(8,086)(8,743)
Other income (expense)— (63,394)— 
Equity in net income (loss) of subsidiaries470,520 200,715 (333,404)
Net income (loss)463,009 132,663 (340,820)
Other comprehensive income (loss), net of tax31,038 21,773 49,642 
Comprehensive income (loss)$494,047 $154,436 $(291,178)
Net income (loss) per share - basic:
Common stock$0.51 $0.15 $(0.41)
Class B common stock$0.51 $0.15 $(0.41)
Weighted-average shares outstanding - basic:
Common stock856,843 848,465 770,620 
Class B common stock54,745 54,745 54,745 
Net income (loss) per share - diluted:
Common stock$0.51 $0.15 $(0.41)
Class B common stock$0.51 $0.15 $(0.41)
Weighted-average shares outstanding - diluted:
Common stock856,843 848,465 770,620 
Class B common stock54,745 54,745 54,745 
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,
202320222021
Cash flows from operating activities:
Net income (loss)$463,009 $132,663 $(340,820)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Equity in net (income) loss of subsidiaries(470,520)(200,715)333,404 
Change in fair value of other financial instruments— 63,396 — 
Other, net28,757 49,470 24,391 
Net cash provided by (used in) operating activities21,246 44,814 16,975 
Cash flows from investing activities:
Contributions to subsidiaries— — (40,000)
Distributions from subsidiaries108,783 118,200 8,700 
Net cash provided by (used in) investing activities108,783 118,200 (31,300)
Cash flows from financing activities:
Proceeds from issuance of common stock, net of expenses— 1,180,000 — 
Dividends on common stock(128,587)(127,125)(116,348)
Repurchases of common stock— (1,200,000)— 
Other financing, net(14,963)(3,197)(6,472)
Net cash provided by (used in) financing activities(143,550)(150,322)(122,820)
Cash and cash equivalents and restricted cash and restricted cash equivalents:
Net increase (decrease) during the period(13,521)12,692 (137,145)
Beginning balance14,639 1,947 139,092 
Ending balance$1,118 $14,639 $1,947 
Supplementary cash flow information:
Issuance of shares for acquisition of business$— $55,485 $528,503 
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 the other notes to the consolidated financial statements 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 2023 and 2022, ADT Inc. made non-cash contributions to subsidiaries of approximately $51 million and $82 million, respectively, primarily related to the transfer of net assets of certain subsidiaries for share-based compensation (including amounts related to discontinued operations).
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 ADT Solar, including $529 million in the issuance of shares, as well as share-based compensation.