Quarterly report pursuant to Section 13 or 15(d)

GOODWILL AND INTANGIBLE ASSETS

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GOODWILL AND INTANGIBLE ASSETS
 9 Months Ended
Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS 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 more likely than not reduce the fair value of a reporting unit below its carrying value. We perform our annual goodwill impairment tests as of September 30.

Our annual goodwill impairment testing was completed during the third quarter of 2022. The estimated fair value for all reporting units exceeded the carrying value for those units as of September 30, 2022. As a result, no goodwill impairment was recorded.

Changes in the amount of goodwill for the nine months ended September 30, 2022, are as follows:
Workforce Solutions U.S.
Information
Solutions		 International Total
 
Balance, December 31, 2021 $ 2,365.4  $ 1,900.1  $ 1,992.6  $ 6,258.1 
Acquisitions 145.0  111.8  27.0  283.8 
Adjustments to initial purchase price allocation 1.4  (0.1) (3.9) (2.6)
Foreign currency translation (0.4) —  (210.0) (210.4)
Divestitures —  —  (24.6) (24.6)
Balance, September 30, 2022 $ 2,511.4  $ 2,011.8  $ 1,781.1  $ 6,304.3 

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 nine months ended September 30, 2022.
 
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 information files acquired primarily through various acquisitions primarily in the U.S., Australia and Canada. We expense the cost of modifying and updating credit files in the period such costs are incurred. 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 2021 Form 10-K.

Purchased intangible assets at September 30, 2022 and December 31, 2021 consisted of the following:
  September 30, 2022 December 31, 2021
Gross Accumulated
Amortization		 Net Gross Accumulated
Amortization		 Net
Definite-lived intangible assets: (In millions)
Purchased data files $ 1,073.0  $ (501.9) $ 571.1  $ 1,103.1  $ (466.0) $ 637.1 
Customer relationships 863.0  (382.7) 480.3  805.2  (354.9) 450.3 
Proprietary database 706.5  (101.0) 605.5  710.2  (59.3) 650.9 
Acquired software and technology 221.8  (36.8) 185.0  160.0  (18.9) 141.1 
Trade names and other intangible assets 23.9  (16.5) 7.4  23.9  (12.6) 11.3 
Non-compete agreements 13.5  (5.4) 8.1  11.0  (3.7) 7.3 
Total definite-lived intangible assets $ 2,901.7  $ (1,044.3) $ 1,857.4  $ 2,813.4  $ (915.4) $ 1,898.0 
 
Amortization expense related to purchased intangible assets was $59.1 million and $40.1 million during the three months ended September 30, 2022 and 2021, respectively. Amortization expense related to purchased intangible assets was $174.4 million and $119.6 million during the nine months ended September 30, 2022 and 2021, respectively.

Estimated future amortization expense related to definite-lived purchased intangible assets at September 30, 2022 is as follows:
Years ending December 31, Amount
  (In millions)
2022 $ 59.8 
2023 233.1 
2024 222.7 
2025 217.7 
2026 205.9 
Thereafter 918.2 
  $ 1,857.4