Subsequent Events

9 Months Ended

Sep. 30, 2024

Subsequent Events [Abstract]

Subsequent Events

Subsequent Event

In October 2024, we acquired the remaining outstanding stock of Dedrone Holdings, Inc. ("Dedrone"), a global leader in air space security, for approximately $400 million, subject to customary purchase price adjustments. This acquisition will be recorded to our Software and Sensors segment, and it represents alignment to our mission and positions us to accelerate the next generation of drone and air space solutions. Prior to this transaction, we had an approximately 20% ownership interest in Dedrone. This transaction is considered a “step acquisition” under GAAP whereby our ownership interest in Dedrone held

before the acquisition is required to be remeasured to fair value at the date of the acquisition. We expect to recognize a gain on our previously held strategic equity investment as a result of this transaction in the fourth quarter of 2024.

Due to the proximity of the closing date of the acquisition of the remaining interest in Dedrone to the date of this filing, the initial accounting for the acquisition is not yet complete. Transaction costs related to the acquisition were approximately $7.5 million for the nine months ended September 30, 2024. These transaction costs were expensed as incurred in SG&A in our condensed consolidated statements of operations.