Annual report pursuant to Section 13 and 15(d)

GOODWILL AND OTHER INTANGIBLE ASSETS

v3.22.4
GOODWILL AND OTHER INTANGIBLE ASSETS
 12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL AND OTHER INTANGIBLE ASSETS
 
Goodwill.  Goodwill represents the cost in excess of the fair value of the net assets acquired in a business combination. As discussed in Note 1, 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 each year. The fair value estimates for our reporting units were determined using a combination of the income and market approaches in accordance with the Company’s methodology. Our annual impairment tests as of September 30, 2022, 2021 and 2020 resulted in no impairment of goodwill.
During 2022, we acquired Efficient Hire and LawLogix within the Workforce Solutions operating segment. We acquired Midigator within the USIS operating segment. We acquired Data Crédito within the International operating segment.

During 2021, we acquired Appriss Insights, HIREtech, i2Verify and Health e(fx) within the Workforce Solutions operating segment. We acquired Kount and Teletrack within the USIS operating segment. We acquired AccountScore, as well as the remaining noncontrolling interest of businesses within our International segment.

During 2020, we acquired the remaining interest in our India joint venture in our International operating segment and completed an additional acquisition in our USIS operating segment.

Changes in the amount of goodwill for the twelve months ended December 31, 2022 and 2021, are as follows:  
Workforce Solutions U.S.
Information
Solutions		 International Total
(In millions)
Balance, December 31, 2020 $ 1,023.3  $ 1,417.9  $ 2,054.6  $ 4,495.8 
Acquisitions 1,342.1  481.5  18.4  1,842.0 
Adjustments to initial purchase price allocation —  0.7  —  0.7 
Foreign currency translation —  —  (79.1) (79.1)
Divestitures —  —  (1.3) (1.3)
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 10.7  (7.1) (3.5) 0.1 
Foreign currency translation (0.3) —  (133.2) (133.5)
Divestitures —  —  (24.6) (24.6)
Balance, December 31, 2022 $ 2,520.8  $ 2,004.8  $ 1,858.3  $ 6,383.9 

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 2022 annual impairment test completed during the third quarter of 2022 resulted in no impairment of indefinite-lived intangible assets. As of December 31, 2022 and 2021, these assets were approximately $94.8 million and $94.9 million, respectively.
Purchased Intangible Assets.  Purchased intangible assets, net, recorded on our Consolidated Balance Sheets at December 31, 2022 and 2021, are as follows:
  December 31, 2022 December 31, 2021
Gross Accumulated
Amortization		 Net Gross Accumulated
Amortization		 Net
Definite-lived intangible assets: (In millions)
Purchased data files $ 1,090.0  $ (527.8) $ 562.2  $ 1,103.1  $ (466.0) $ 637.1 
Proprietary database 705.9  (115.0) 590.9  710.2  (59.3) 650.9 
Customer relationships 874.6  (407.4) 467.2  805.2  (354.9) 450.3 
Acquired software and technology 225.4  (42.6) 182.8  160.0  (18.9) 141.1 
Trade names and other intangible assets 26.7  (19.6) 7.1  23.9  (12.6) 11.3 
Non-compete agreements 14.5  (6.2) 8.3  11.0  (3.7) 7.3 
Total definite-lived intangible assets $ 2,937.1  $ (1,118.6) $ 1,818.5  $ 2,813.4  $ (915.4) $ 1,898.0 
               
Amortization expense related to purchased intangible assets was $236.7 million, $176.4 million, and $141.8 million during the twelve months ended December 31, 2022, 2021, and 2020, respectively.
 
Estimated future amortization expense related to definite-lived purchased intangible assets at December 31, 2022 is as follows:
Years ending December 31, Amount
  (In millions)
2023 $ 240.0 
2024 228.7 
2025 222.8 
2026 210.3 
2027 196.1 
Thereafter 720.6 
  $ 1,818.5