Annual report pursuant to Section 13 and 15(d)

GOODWILL AND OTHER INTANGIBLE ASSETS

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GOODWILL AND OTHER INTANGIBLE ASSETS
 12 Months Ended
Dec. 31, 2018
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, 2018, 2017 and 2016 resulted in no impairment of goodwill.

During 2018, we completed the acquisition of DataX Ltd. whose goodwill was allocated to the USIS operating segment and various other acquisitions for which the acquired goodwill was allocated to the Workforce Solutions and International operating segments.

In the fourth quarter of 2017, we acquired Mercury, for which the acquired goodwill has been allocated to the Asia Pacific reporting unit within the International operating segment. In the third quarter of 2017, we acquired ID Watchdog, Inc., for which the acquired goodwill has been allocated to the Global Consumer Solutions reporting unit and operating segment.

Changes in the amount of goodwill for the twelve months ended December 31, 2018 and 2017, are as follows:  
 
U.S.
Information
Solutions
 
International
 
Workforce Solutions
 
Global Consumer Solutions
 
Total
 
(In millions)
Balance, December 31, 2016
$
1,071.3

 
$
1,814.6

 
$
952.1

 
$
136.3

 
$
3,974.3

Acquisitions
—

 
43.9

 
—

 
48.5

 
92.4

Adjustments to initial purchase price allocation
—

 
1.0

 
—

 
—

 
1.0

Foreign currency translation
—

 
109.9

 
—

 
6.4

 
116.3

Balance, December 31, 2017
1,071.3

 
1,969.4

 
952.1

 
191.2

 
4,184.0

Acquisitions
57.7

 
14.5

 
17.1

 
—

 
89.3

Adjustments to initial purchase price allocation
(0.1
)
 
1.3

 
1.0

 
(1.0
)
 
1.2

Foreign currency translation
—

 
(140.5
)
 
—

 
(4.3
)
 
(144.8
)
Balance, December 31, 2018
$
1,128.9

 
$
1,844.7

 
$
970.2

 
$
185.9

 
$
4,129.7


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 2018 annual impairment test completed during the third quarter of 2018 resulted in no impairment of indefinite-lived intangible assets.
 
Amount
 
(In millions)
Balance, December 31, 2016
$
94.8

Foreign currency translation
0.2

Balance, December 31, 2017
95.0

Foreign currency translation
(0.2
)
Balance, December 31, 2018
$
94.8



Purchased Intangible Assets.  Purchased intangible assets, net, recorded on our Consolidated Balance Sheets at December 31, 2018 and 2017, are as follows:
 
December 31, 2018
 
December 31, 2017
 
Gross
 
Accumulated
Amortization
 
Net
 
Gross
 
Accumulated
Amortization
 
Net
Definite-lived intangible assets:
(In millions)
Purchased data files
$
911.4

 
$
(298.7
)
 
$
612.7

 
$
955.7

 
$
(262.2
)
 
$
693.5

Acquired software and technology
130.3

 
(84.1
)
 
46.2

 
142.3

 
(66.6
)
 
75.7

Customer relationships
693.1

 
(295.2
)
 
397.9

 
772.4

 
(326.7
)
 
445.7

Reacquired rights
73.3

 
(73.3
)
 
—

 
73.3

 
(65.6
)
 
7.7

Proprietary database
46.3

 
(12.5
)
 
33.8

 
22.1

 
(8.7
)
 
13.4

Non-compete agreements
3.8

 
(2.2
)
 
1.6

 
14.1

 
(12.7
)
 
1.4

Trade names and other intangible assets
18.7

 
(11.7
)
 
7.0

 
20.2

 
(10.6
)
 
9.6

Total definite-lived intangible assets
$
1,876.9

 
$
(777.7
)
 
$
1,099.2

 
$
2,000.1

 
$
(753.1
)
 
$
1,247.0


               
Amortization expense related to purchased intangible assets was $152.8 million, $172.2 million, and $176.5 million during the twelve months ended December 31, 2018, 2017, and 2016, respectively.
 
Estimated future amortization expense related to definite-lived purchased intangible assets at December 31, 2018 is as follows:
Years ending December 31,
 
Amount
 
 
(In millions)
2019
 
$
132.0

2020
 
124.6

2021
 
107.4

2022
 
103.0

2023
 
101.8

Thereafter
 
530.4

 
 
$
1,099.2