EQUIFAX INC | 2013 | FY | 3

 5.  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. As a result of the merger of our Brazilian business in the second quarter of 2011, we performed an interim impairment test on the Latin America reporting unit excluding our Brazilian business which resulted in no impairment. 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, 2013, 2012 and 2011 resulted in no impairment of goodwill.
 
Changes in the amount of goodwill for the twelve months ended December 31, 2013 and 2012, are as follows:
                                       
 
 
U.S. Consumer
 
 
 
 
 
 
 
North America
 
North America
 
 
 
 
 
 
Information
 
 
 
 
Workforce
 
Personal
 
Commercial
 
 
 
 
(In millions)
 
Solutions
 
International
 
Solutions
 
Solutions
 
Solutions
 
Total
 
Balance, December 31, 2011
 
$
638.4
 
$
348.5
 
$
935.0
 
$
1.8
 
$
37.5
 
$
1,961.2
 
Acquisitions
 
 
309.3
 
 
12.0
 
 
-
 
 
-
 
 
-
 
 
321.3
 
Adjustments to initial purchase price allocation
 
 
-
 
 
-
 
 
(1.0)
 
 
-
 
 
-
 
 
(1.0)
 
Foreign currency translation
 
 
-
 
 
8.8
 
 
-
 
 
-
 
 
0.1
 
 
8.9
 
Balance, December 31, 2012
 
 
947.7
 
 
369.3
 
 
934.0
 
 
1.8
 
 
37.6
 
 
2,290.4
 
Acquisitions
 
 
-
 
 
40.8
 
 
-
 
 
14.5
 
 
-
 
 
55.3
 
Adjustments to initial purchase price allocation
 
 
87.5
 
 
(0.1)
 
 
-
 
 
0.4
 
 
-
 
 
87.8
 
Foreign currency translation
 
 
-
 
 
(7.6)
 
 
-
 
 
-
 
 
(0.4)
 
 
(8.0)
 
Tax benefits of options exercised
 
 
-
 
 
-
 
 
(0.2)
 
 
-
 
 
-
 
 
(0.2)
 
Businesses sold
 
 
(2.7)
 
 
(1.4)
 
 
(26.1)
 
 
-
 
 
-
 
 
(30.2)
 
Balance, December 31, 2013
 
$
1,032.5
 
$
401.0
 
$
907.7
 
$
16.7
 
$
37.2
 
$
2,395.1
 
 
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 2013 annual impairment test completed during the third quarter of 2013 resulted in no impairment of indefinite-lived intangible assets.  
 
 
 
Amount
 
 
 
(In millions)
 
Balance, December 31, 2011
 
$
95.6
 
Acquisitions
 
$
158.8
 
Foreign currency translation
 
 
0.1
 
Balance, December 31, 2012
 
 
254.5
 
Purchase price adjustment
 
 
(158.8)
 
Foreign currency translation
 
 
(0.2)
 
Balance, December 31, 2013
 
$
95.5
 
 
During the third quarter of 2013, we recorded adjustments to the purchased intangible assets and related accumulated amortization previously recorded in connection with our December 28, 2012 acquisition of certain credit services business assets and operations of Computer Sciences Corporation.  This correction resulted in the establishment of $73.3 million of finite-lived reacquired rights which will be amortized over 5.6 years, an increase in goodwill of $85.5 million and a reduction of our indefinite-lived intangible assets of $158.8 million. 
 
Purchased Intangible Assets.   Purchased intangible assets net, recorded on our Consolidated Balance Sheets at December 31, 2013 and 2012, are as follows:
 
 
 
December 31, 2013
 
December 31, 2012
 
 
 
 
 
 
Accumulated
 
 
 
 
 
 
 
Accumulated
 
 
 
 
 
 
Gross
 
Amortization
 
Net
 
Gross
 
Amortization
 
Net
 
Definite-lived intangible assets:
 
(In millions)
 
Purchased data files
 
$
709.5
 
$
(187.4)
 
$
522.1
 
$
795.6
 
$
(229.2)
 
$
566.4
 
Acquired software and technology
 
 
38.4
 
 
(20.2)
 
 
18.2
 
 
34.4
 
 
(13.5)
 
 
20.9
 
Customer relationships
 
 
506.7
 
 
(166.5)
 
 
340.2
 
 
522.1
 
 
(164.5)
 
 
357.6
 
Reacquired rights
 
 
73.3
 
 
(13.1)
 
 
60.2
 
 
-
 
 
-
 
 
-
 
Proprietary database
 
 
7.4
 
 
(5.0)
 
 
2.4
 
 
125.0
 
 
(115.9)
 
 
9.1
 
Non-compete agreements
 
 
20.2
 
 
(7.8)
 
 
12.4
 
 
19.4
 
 
(5.5)
 
 
13.9
 
Trade names and other intangible assets
 
 
41.7
 
 
(24.0)
 
 
17.7
 
 
41.5
 
 
(21.7)
 
 
19.8
 
Total definite-lived intangible assets
 
$
1,397.2
 
$
(424.0)
 
$
973.2
 
$
1,538.0
 
$
(550.3)
 
$
987.7
 
                
Amortization expense related to purchased intangible assets was $118.4 million, $86.1 million, and $87.5 million during the twelve months ended December 31, 2013, 2012, and 2011, respectively.
 
Estimated future amortization expense related to definite-lived purchased intangible assets at December 31, 2013 is as follows:
 
Years ending December 31,
 
Amount
 
 
(In millions)
2014
 
$
111.8
2015
 
 
106.9
2016
 
 
100.3
2017
 
 
90.6
2018
 
 
72.9
Thereafter
 
 
490.7
 
 
$
973.2

us-gaap:GoodwillAndIntangibleAssetsDisclosureTextBlock