Quarterly report pursuant to Section 13 or 15(d)

GOODWILL AND INTANGIBLE ASSETS

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GOODWILL AND INTANGIBLE ASSETS
3 Months Ended
Mar. 31, 2014
Goodwill and Intangible Assets[Abstract]  
GOODWILL AND INTANGIBLE ASSETS
4. GOODWILL AND INTANGIBLE ASSETS
 
Goodwill.   Goodwill represents the cost in excess of the fair value of the net assets acquired in a business combination. Goodwill is tested for impairment at the reporting unit level on an annual basis and on an interim basis if an event occurs or circumstances change that would reduce the fair value of a reporting unit below its carrying value. We perform our annual goodwill impairment tests as of September 30.
 
Changes in the amount of goodwill for the three months ended March 31, 2014, are as follows:
 
 
 
U.S. Consumer
 
 
 
 
 
 
 
North America
 
North America
 
 
 
 
 
 
Information
 
 
 
 
Workforce
 
Personal
 
Commercial
 
 
 
 
 
 
Solutions
 
International
 
Solutions
 
Solutions
 
Solutions
 
Total
 
 
 
(In millions)
 
Balance, December 31, 2013
 
$
1,032.5
 
$
401.0
 
$
907.7
 
$
16.7
 
$
37.2
 
$
2,395.1
 
Acquisitions
 
 
-
 
 
230.7
 
 
-
 
 
-
 
 
9.5
 
 
240.2
 
Adjustments to initial purchase price allocation
 
 
-
 
 
(0.2)
 
 
-
 
 
-
 
 
-
 
 
(0.2)
 
Foreign currency translation
 
 
-
 
 
(0.2)
 
 
-
 
 
-
 
 
(0.2)
 
 
(0.4)
 
Tax benefits of stock options exercised
 
 
-
 
 
-
 
 
(0.1)
 
 
-
 
 
-
 
 
(0.1)
 
Balance, March 31, 2014
 
$
1,032.5
 
$
631.3
 
$
907.6
 
$
16.7
 
$
46.5
 
$
2,634.6
 
 
Indefinite-Lived Intangible Assets.   Indefinite-lived intangible assets consist of indefinite-lived reacquired rights representing the value of rights which we had granted to various affiliate credit reporting agencies that were reacquired in the U.S. and Canada. At the time we acquired these agreements, they were considered perpetual in nature under the accounting guidance in place at that time and, therefore, the useful lives are considered indefinite. Indefinite-lived intangible assets are not amortized. We are required to test indefinite-lived intangible assets for impairment annually and whenever events or circumstances indicate that there may be an impairment of the asset value. We perform our annual indefinite-lived intangible asset impairment test as of September 30.  Our indefinite-lived intangible asset carrying amounts did not change materially during the three months ended March 31, 2014.  
 
Purchased Intangible Assets.   Purchased intangible assets represent the estimated acquisition date fair value of acquired intangible assets used in our business. Purchased data files represent the estimated acquisition date fair value of consumer credit files acquired primarily through the purchase of independent credit reporting agencies in the U.S. and Canada. We expense the cost of modifying and updating credit files in the period such costs are incurred. Our reacquired rights represent the value of rights which we had granted to Computer Sciences Corporation that were reacquired in connection with the acquisition of CSC Credit Services in the fourth quarter of 2012 based on accounting guidance in place at that time. These reacquired rights are being amortized over the remaining term of the affiliation agreement on a straight-line basis from December 28, 2012 to August 1, 2018. We amortize all of our purchased intangible assets on a straight-line basis. For additional information about the useful lives related to our purchased intangible assets, see Note 1 of the Notes to Consolidated Financial Statements in our 2013 Form 10-K.
 
 Purchased intangible assets at March 31, 2014 and December 31, 2013 consisted of the following:
 
 
 
March 31, 2014
 
December 31, 2013
 
 
 
 
 
 
Accumulated
 
 
 
 
 
 
 
Accumulated
 
 
 
 
 
 
Gross
 
Amortization
 
Net
 
Gross
 
Amortization
 
Net
 
Definite-lived intangible assets:
 
(In millions)
 
Purchased data files
 
$
702.6
 
$
(192.8)
 
$
509.8
 
$
709.5
 
$
(187.4)
 
$
522.1
 
Acquired software and technology
 
 
60.4
 
 
(23.4)
 
 
37.0
 
 
38.4
 
 
(20.2)
 
 
18.2
 
Customer relationships
 
 
579.5
 
 
(176.3)
 
 
403.2
 
 
506.7
 
 
(166.5)
 
 
340.2
 
Reacquired rights
 
 
73.3
 
 
(16.4)
 
 
56.9
 
 
73.3
 
 
(13.1)
 
 
60.2
 
Proprietary database
 
 
7.4
 
 
(5.1)
 
 
2.3
 
 
7.4
 
 
(5.0)
 
 
2.4
 
Non-compete agreements
 
 
31.7
 
 
(8.7)
 
 
23.0
 
 
20.2
 
 
(7.8)
 
 
12.4
 
Trade names and other intangible assets
 
 
53.4
 
 
(25.6)
 
 
27.8
 
 
41.7
 
 
(24.0)
 
 
17.7
 
Total definite-lived intangible assets
 
$
1,508.3
 
$
(448.3)
 
$
1,060.0
 
$
1,397.2
 
$
(424.0)
 
$
973.2
 
 
Amortization expense from continuing operations related to purchased intangible assets was $32.7 million and $30.2 million during the three months ended March 31, 2014 and 2013, respectively.