Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2020

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Note 4. Goodwill and Other Intangible Assets

As discussed in Note 1. Overview, Basis of Presentation and Significant Accounting Policies, during the first quarter of 2020, management realigned the Company’s operating segments. DFIN’s four operating segments are the same as its reporting units: CM-SS; CM-CCM; IC-SS; IC-CCM (the “Current Structure”). The Company previously had three reporting units: Capital Markets, Investment Markets and International (the “Previous Structure”), that each had goodwill.

As a result of the new segmentation, a goodwill impairment analysis was completed for the Previous Structure during the first quarter of 2020 before the reallocation of goodwill to the Current Structure. Each of the reporting units under the Previous Structure was reviewed for impairment using a quantitative assessment, where the estimated fair value of each reporting unit was compared to its carrying amount, including goodwill. The Company did not recognize any goodwill impairment as the estimated fair values of all reporting units exceeded their respective carrying amounts. In addition to the impairment analysis under the Previous Structure, a goodwill impairment analysis was completed under the Current Structure during the first quarter of 2020 and no goodwill impairment was recognized as the estimated fair values of all reporting units exceeded their respective carrying amounts. Goodwill was reassigned to the Current Structure using a relative fair value approach.

In the fourth quarter of 2020, the Company completed its annual goodwill impairment analysis and recorded a non-cash impairment charge of $40.6 million to reflect a full impairment of goodwill within the IC-CCM reporting unit; refer to Note 6, Restructuring, Impairment and Other Charges, for further discussion.

The balances of goodwill by segment are presented below:

	Net book value at March 31, 2020		Accumulated impairment charges			Foreign exchange and other adjustments		Net book value at December 31, 2020
Capital Markets - Software Solutions	$	103.6	$	—		$	0.1	$	103.7
Capital Markets - Compliance and Communications Management		252.5		—			0.5		253.0
Investment Companies - Software Solutions		53.0		—			0.2		53.2
Investment Companies - Compliance and Communications Management		40.6		(40.6	)		—		—
Total	$	449.7	$	(40.6	)	$	0.8	$	409.9

The components of other intangible assets at December 31, 2020 and 2019 were as follows:

	December 31, 2020							December 31, 2019
	Gross Carrying Amount (a)		Accumulated Amortization (a)			Net Book Value		Gross Carrying Amount		Accumulated Impairment Charges			Accumulated Amortization			Net Book Value
Customer relationships (useful life of 15 years)	$	10.4	$	(1.4	)	$	9.0	$	149.8	$	(1.0	)	$	(127.7	)	$	21.1
Trade names (useful life of 5 years)		1.0		(0.4	)		0.6		3.9		—			(3.1	)		0.8
Software license (useful life of 3 years)		0.3		(0.1	)		0.2		—		—			—			—
Total other intangible assets	$	11.7	$	(1.9	)	$	9.8	$	153.7	$	(1.0	)	$	(130.8	)	$	21.9

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(a) The Company retired other intangible assets that became fully amortized as of December 31, 2020.

Impairment of Other Intangible Assets—For the year ended December 31, 2019, the Company recognized impairment charges of $1.0 million related to customer relationship intangible assets in the Company’s CM-CCM and IC-SS reporting units.

Other Intangible Assets—Amortization expense for other intangible assets was $12.4 million, $14.3 million and $13.7 million for the years ended December 31, 2020, 2019 and 2018, respectively. The weighted-average remaining useful life for the unamortized intangible assets as of December 31, 2020 is approximately twelve years.

The following table outlines the estimated annual amortization expense related to other intangible assets:

For the year ending December 31,	Amount
2021	$	1.0
2022		1.0
2023		0.9
2024		0.7
2025		0.7
2026 and thereafter		5.5
Total	$	9.8