Brinks Home Security Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Reportable Business Segments

Reportable Business Segments

12 Months Ended

Dec. 31, 2017

Description of Segments

The Company operates through two reportable business segments according to the nature and economic characteristics of its services as well as the manner in which information is issued internally by the Company's key decision maker, who is the Company's Chief Executive Officer. The Company's business segments are as follows:

MONI

The MONI segment is engaged in the business of providing security alarm monitoring services: monitoring signals arising from burglaries, fires, medical alerts and other events through security systems at subscribers' premises, as well as providing customer service and technical support. MONI primarily outsources the sales, installation and most of its field service functions to its dealers.

LiveWatch

LiveWatch is a do-it-yourself home security provider offering professionally monitored security services through a direct-to-consumer sales channel. LiveWatch offers a differentiated go-to-market strategy through direct response TV, internet and radio advertising. When a customer initiates the process to obtain monitoring services, LiveWatch pre-configures the alarm monitoring system based on customer specifications. LiveWatch then packages and ships the equipment directly to the customer. The customer self-installs the equipment on-site and activates the monitoring service over the phone.

The business segment management reporting and controlling systems are based on the same accounting policies as those described in note 2, Summary of Significant Accounting Policies.

As they arise, transactions between segments are recorded on an arm's length basis using relevant market prices. The following table sets forth selected data from the accompanying consolidated statements of operations for the periods indicated (amounts in thousands):



	MONI			LiveWatch		Consolidated
	Twelve Months Ended December 31, 2017
Net revenue	$	524,810		28,645		553,455
Depreciation and amortization	$	240,955		4,651		245,606
Loss before income taxes	$	(92,787	)	(20,401	)	(113,188	)

	Twelve Months Ended December 31, 2016
Net revenue	$	547,458		22,914		570,372
Depreciation and amortization	$	250,393		4,520		254,913
Loss before income taxes	$	(46,728	)	(22,431	)	(69,159	)

	Twelve Months Ended December 31, 2015
Net revenue	$	548,622		14,734		563,356
Depreciation and amortization	$	264,870		3,864		268,734
Loss before income taxes	$	(47,793	)	(18,365	)	(66,158	)

The following table sets forth selected data from the accompanying consolidated balance sheets for the periods indicated (amounts in thousands):



	MONI		LiveWatch	Eliminations		Consolidated
	Balance at December 31, 2017
Subscriber accounts, net of amortization	$	1,280,813	21,215	—		1,302,028
Goodwill	$	527,502	36,047	—		563,549
Total assets	$	1,996,240	63,233	(118,158	)	1,941,315

	Balance at December 31, 2016
Subscriber accounts, net of amortization	$	1,364,804	21,956	—		1,386,760
Goodwill	$	527,502	36,047	—		563,549
Total assets	$	2,062,838	63,916	(93,037	)	2,033,717