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, 2019
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 tests as of September 30.

Our annual goodwill impairment testing was completed during the third quarter of 2019. The estimated fair value for all reporting units exceeds the carrying value of those units as of September 30, 2019. As a result, no goodwill impairment was recorded. Refer to our methodology of fair value estimates as discussed in the "Application of Critical Accounting Policies" section of this Form 10-Q.

During the first nine months of 2019, we completed the acquisition of PayNet in our USIS and International operating segments and completed additional acquisitions in our Workforce Solutions segment.

Changes in the amount of goodwill for the nine months ended September 30, 2019, are as follows:
 
 
U.S.
Information
Solutions
 
International
 
Workforce
Solutions
 
Global Consumer Solutions
 
Total
 
 
(In millions)
Balance, December 31, 2018
 
$
1,128.9

 
$
1,844.7

 
$
970.2

 
$
185.9

 
$
4,129.7

Acquisitions
 
153.7

 
2.1

 
14.3

 
—

 
170.1

Adjustments to initial purchase price allocation
 
(2.2
)
 
3.1

 
0.1

 
—

 
1.0

Foreign currency translation
 
—

 
(72.0
)
 
—

 
(1.5
)
 
(73.5
)
Balance, September 30, 2019
 
$
1,280.4

 
$
1,777.9

 
$
984.6

 
$
184.4

 
$
4,227.3



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. The estimated fair value of our indefinite-lived intangible assets exceeded the carrying value as of September 30, 2019. 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, 2019.
 
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 acquisition date fair value of consumer credit files acquired primarily through the purchase of independent credit reporting agencies in the U.S., Canada and Australia. 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 2018 Form 10-K.

Purchased intangible assets at September 30, 2019 and December 31, 2018 consisted of the following:
 
 
September 30, 2019
 
December 31, 2018
 
 
Gross
 
Accumulated
Amortization
 
Net
 
Gross
 
Accumulated
Amortization
 
Net
Definite-lived intangible assets:
 
(In millions)
Purchased data files
 
$
892.7

 
$
(334.6
)
 
$
558.1

 
$
911.4

 
$
(298.7
)
 
$
612.7

Acquired software and technology
 
107.5

 
(77.6
)
 
29.9

 
130.3

 
(84.1
)
 
46.2

Customer relationships
 
675.2

 
(307.0
)
 
368.2

 
693.1

 
(295.2
)
 
397.9

Reacquired rights
 
—

 
—

 
—

 
73.3

 
(73.3
)
 
—

Proprietary database
 
104.2

 
(19.6
)
 
84.6

 
46.3

 
(12.5
)
 
33.8

Non-compete agreements
 
7.5

 
(3.3
)
 
4.2

 
3.8

 
(2.2
)
 
1.6

Trade names and other intangible assets
 
19.8

 
(12.8
)
 
7.0

 
18.7

 
(11.7
)
 
7.0

Total definite-lived intangible assets
 
$
1,806.9

 
$
(754.9
)
 
$
1,052.0

 
$
1,876.9

 
$
(777.7
)
 
$
1,099.2


 
Amortization expense related to purchased intangible assets was $35.1 million and $36.5 million during the three months ended September 30, 2019 and 2018, respectively. Amortization expense related to purchased intangible assets was $104.9 million and $117.9 million during the nine months ended September 30, 2019 and 2018, respectively.

Estimated future amortization expense related to definite-lived purchased intangible assets at September 30, 2019 is as follows:
Years ending December 31,
 
Amount
 
 
(In millions)
2019
 
$
34.9

2020
 
133.7

2021
 
117.1

2022
 
111.6

2023
 
110.4

Thereafter
 
544.3

 
 
$
1,052.0