Goodwill and Intangible Assets, Net

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

The changes in goodwill by reportable segment are outlined below (in thousands):


	Alarm.com		Other		Total
Balance as of January 1, 2023	$	148,183	$	—	$	148,183
Goodwill acquired	7,200		—		7,200
Measurement period adjustment	(187)		—		(187)
Foreign currency translation adjustment	91		—		91
Balance as of March 31, 2023	$	155,287	$	—	$	155,287

On January 18, 2023, we acquired 100% of the issued and outstanding shares of capital stock of EBS and initially recorded $7.2 million of goodwill in the Alarm.com segment. The measurement period adjustment relates to the finalization of the Noonlight working capital adjustment as well as the tax adjustment during the three months ended March 31, 2023.

The following table reflects changes in the net carrying amount of the components of intangible assets (in thousands):


	Customer Relationships		Developed Technology		Trade Name		Capitalized Software Development Costs		Total
Balance as of January 1, 2023	$	47,522	$	33,553	$	1,383	$	—	$	82,458
Intangible assets acquired	2,395		4,516		537		—		7,448
Capitalized software development costs	—		—		—		362		362
Amortization	(2,670)		(1,776)		(177)		—		(4,623)
Balance as of March 31, 2023	$	47,247	$	36,293	$	1,743	$	362	$	85,645

We recorded $4.6 million of amortization related to our intangible assets for each of the three months ended March 31, 2023 and 2022. There were no impairments of long-lived intangible assets during the three months ended March 31, 2023 and 2022. During the three months ended March 31, 2022, we wrote-off $0.7 million in fully amortized intangible assets in the Alarm.com segment that were acquired in 2014 related to customer relationships, developed technology, trade name and other intangible assets that no longer existed as of January 1, 2022.

The following tables reflect the weighted average remaining life and carrying value of finite-lived intangible assets (in thousands, except weighted-average remaining life):


	March 31, 2023
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Value		Weighted- Average Remaining Life (in years)
Customer relationships	$	128,280	$	(81,033)	$	47,247	6.8
Developed technology	62,994		(26,701)		36,293		5.5
Trade name	4,474		(2,731)		1,743		3.0
Capitalized software development costs	362		—		362		5.0
Total intangible assets	$	196,110	$	(110,465)	$	85,645	6.2


	December 31, 2022
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Value		Weighted- Average Remaining Life (in years)
Customer relationships	$	125,885	$	(78,363)	$	47,522	7.0
Developed technology	58,478		(24,925)		33,553		5.8
Trade name	3,937		(2,554)		1,383		2.4

Total intangible assets	$	188,300	$	(105,842)	$	82,458	6.5