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, 2023
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 test as of September 30.

Our annual goodwill impairment testing was completed during the third quarter of 2023. The estimated fair value for all reporting units exceeded the carrying value for those units as of September 30, 2023. As a result, no goodwill impairment was recorded.

Changes in the amount of goodwill for the nine months ended September 30, 2023, are as follows:
Workforce Solutions U.S.
Information
Solutions		 International Total
 
Balance, December 31, 2022 $ 2,520.8  $ 2,004.8  $ 1,858.3  $ 6,383.9 
Acquisitions —  —  410.4  410.4 
Adjustments to initial purchase price allocation (0.7) 1.4  0.3  1.0 
Foreign currency translation —  —  (64.5) (64.5)
Balance, September 30, 2023 $ 2,520.1  $ 2,006.2  $ 2,204.5  $ 6,730.8 

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. The estimated fair value of our indefinite-lived intangible assets exceeded the carrying value as of September 30, 2023. As a result, no impairment was recorded. Our indefinite-lived intangible asset carrying amounts did not change materially during the nine months ended September 30, 2023.
 
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 fair value of consumer and commercial data files acquired through our acquisitions of various companies, including a fraud and identity solutions provider and independent credit reporting agencies in the U.S., Australia, Brazil, Dominican Republic 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 2022 Form 10-K.

Purchased intangible assets at September 30, 2023 and December 31, 2022 consisted of the following:
  September 30, 2023 December 31, 2022
Gross Accumulated
Amortization		 Net Gross Accumulated
Amortization		 Net
Definite-lived intangible assets: (In millions)
Purchased data files $ 1,136.5  $ (574.5) $ 562.0  $ 1,090.0  $ (527.8) $ 562.2 
Customer relationships 1,036.7  (455.2) 581.5  874.6  (407.4) 467.2 
Proprietary database 706.3  (157.3) 549.0  705.9  (115.0) 590.9 
Acquired software and technology 222.2  (66.1) 156.1  225.4  (42.6) 182.8 
Trade names, non-compete agreements and other intangible assets 83.3  (28.0) 55.3  41.2  (25.8) 15.4 
Total definite-lived intangible assets $ 3,185.0  $ (1,281.1) $ 1,903.9  $ 2,937.1  $ (1,118.6) $ 1,818.5 
 
Amortization expense related to purchased intangible assets was $64.4 million and $59.1 million during the three months ended September 30, 2023 and 2022, respectively. Amortization expense related to purchased intangible assets was $185.4 million and $174.4 million during the nine months ended September 30, 2023 and 2022, respectively.

Estimated future amortization expense related to definite-lived purchased intangible assets at September 30, 2023 is as follows:
Years ending December 31, Amount
  (In millions)
2023 $ 66.0 
2024 252.2 
2025 247.4 
2026 231.5 
2027 218.7 
Thereafter 888.1 
  $ 1,903.9