Equifax Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

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, 2019, 2018 and 2017 resulted in no impairment of goodwill.

During 2019, we completed the acquisition of PayNet whose goodwill was allocated to the USIS and International operating segments, and various other acquisitions for which the acquired goodwill was allocated to the Workforce Solutions operating segment.

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.

Changes in the amount of goodwill for the twelve months ended December 31, 2019 and 2018, are as follows:


	U.S. Information Solutions		Workforce Solutions		International		Global Consumer Solutions		Total
	(In millions)
Balance, December 31, 2017	$	1,071.3	$	952.1	$	1,969.4	$	191.2	$	4,184.0
Acquisitions	57.7		17.1		14.5		—		89.3
Adjustments to initial purchase price allocation	(0.1)		1.0		1.3		(1.0)		1.2
Foreign currency translation	—		—		(140.5)		(4.3)		(144.8)

Balance, December 31, 2018	1,128.9		970.2		1,844.7		185.9		4,129.7
Acquisitions	153.7		40.1		2.1		—		195.9
Adjustments to initial purchase price allocation	(1.9)		0.1		3.1		—		1.3
Foreign currency translation	—		—		(20.7)		2.1		(18.6)

Balance, December 31, 2019	$	1,280.7	$	1,010.4	$	1,829.2	$	188.0	$	4,308.3

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 2019 annual impairment test completed during the third quarter of 2019 resulted in no impairment of indefinite-lived intangible assets.


	Amount
	(In millions)
Balance, December 31, 2017	$	95.0
Foreign currency translation	(0.2)
Balance, December 31, 2018	$	94.8
Foreign currency translation	0.1
Balance, December 31, 2019	$	94.9

Purchased Intangible Assets. Purchased intangible assets, net, recorded on our Consolidated Balance Sheets at December 31, 2019 and 2018, are as follows:


	December 31, 2019										December 31, 2018
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Definite-lived intangible assets:	(In millions)
Purchased data files	$	904.0	$	(351.8)	$	552.2	$	911.4	$	(298.7)	$	612.7
Acquired software and technology	110.1		(84.0)		26.1		130.3		(84.1)		46.2
Customer relationships	673.0		(305.1)		367.9		693.1		(295.2)		397.9
Reacquired rights	—		—		—		73.3		(73.3)		—
Proprietary database	108.3		(20.9)		87.4		46.3		(12.5)		33.8
Non-compete agreements	7.8		(3.5)		4.3		3.8		(2.2)		1.6
Trade names and other intangible assets	17.3		(10.6)		6.7		18.7		(11.7)		7.0
Total definite-lived intangible assets	$	1,820.5	$	(775.9)	$	1,044.6	$	1,876.9	$	(777.7)	$	1,099.2

Amortization expense related to purchased intangible assets was $140.1 million, $152.8 million, and $172.2 million during the twelve months ended December 31, 2019, 2018, and 2017, respectively.

Estimated future amortization expense related to definite-lived purchased intangible assets at December 31, 2019 is as follows:


Years ending December 31,	Amount
	(In millions)
2020	$	137.7
2021	120.6
2022	99.3
2023	98.0
2024	89.8
Thereafter	499.2
	$	1,044.6