Annual report pursuant to Section 13 and 15(d)

GOODWILL AND OTHER INTANGIBLE ASSETS

v3.24.0.1
GOODWILL AND OTHER INTANGIBLE ASSETS
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND OTHER 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. 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.

During the fourth quarter of 2023, the Company voluntarily changed its goodwill and indefinite-lived intangible asset annual impairment test date from September 30 to December 1. This voluntary change is preferable under the circumstances as it results in better alignment with the Company’s strategic business planning and budgeting process. The voluntary change in accounting principle related to the annual test date did not delay, accelerate or avoid an impairment charge. Retrospective application of this accounting change to prior periods is impracticable as the Company is unable to objectively determine, without the use of hindsight, the significant assumptions and estimates that would be used in those earlier periods. Accordingly, the change will be applied prospectively. We conducted our goodwill and indefinite-lived intangible asset impairment testing as of September 30, 2023 and December 1, 2023 and did not identify any impairment charges.

The fair value estimates for our reporting units were determined using the market approach, when available and appropriate, or a combination of the income and market approaches in accordance with the Company’s methodology. Our annual impairment test as of September 30, 2023 and as of December 1, 2023 resulted in no impairment of goodwill. Our annual impairment tests as of September 30, 2022 and September 30, 2021 resulted in no impairment of goodwill.

Changes in the amount of goodwill for the twelve months ended December 31, 2023 and 2022, are as follows:  
Workforce Solutions U.S.
Information
Solutions		 International Total
(In millions)
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 
Acquisitions —  —  410.4  410.4 
Adjustments to initial purchase price allocation (0.7) 1.4  2.1  2.8 
Foreign currency translation 0.1  —  32.7  32.8 
Balance, December 31, 2023 $ 2,520.2  $ 2,006.2  $ 2,303.5  $ 6,829.9 
Refer to Note 3 for the acquisitions during the periods presented.

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. During the fourth quarter of 2023, the Company voluntarily changed its goodwill and indefinite-lived intangible asset annual impairment test date from September 30 to December 1. We conducted our goodwill and indefinite-lived intangible asset impairment testing as of September 30, 2023 and December 1, 2023 and did not identify any impairment charges.

 As of both December 31, 2023 and 2022, indefinite-lived intangible assets were approximately $94.8 million.

Purchased Intangible Assets.  Purchased intangible assets, net, recorded on our Consolidated Balance Sheets at December 31, 2023 and 2022, consisted of the following:
  December 31, 2023 December 31, 2022
Gross Accumulated
Amortization		 Net Gross Accumulated
Amortization		 Net
Definite-lived intangible assets: (In millions)
Purchased data files $ 1,158.5  $ (604.2) $ 554.3  $ 1,090.0  $ (527.8) $ 562.2 
Proprietary database 705.8  (171.5) 534.3  705.9  (115.0) 590.9 
Customer relationships 1,053.5  (484.2) 569.3  874.6  (407.4) 467.2 
Acquired software and technology 222.5  (75.4) 147.1  225.4  (42.6) 182.8 
Trade names, non-compete agreements and other intangible assets 79.6  (25.8) 53.8  41.2  (25.8) 15.4 
Total definite-lived intangible assets $ 3,219.9  $ (1,361.1) $ 1,858.8  $ 2,937.1  $ (1,118.6) $ 1,818.5 
               
Amortization expense related to purchased intangible assets was $250.7 million, $236.7 million, and $176.4 million during the twelve months ended December 31, 2023, 2022, and 2021, respectively.
 
Estimated future amortization expense related to definite-lived purchased intangible assets at December 31, 2023 is as follows:
Years ending December 31, Amount
  (In millions)
2024 $ 265.9 
2025 257.9 
2026 241.9 
2027 229.2 
2028 173.1 
Thereafter 690.8 
  $ 1,858.8