Goodwill and Other Assets

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

The Company’s three reportable operating segments are Eurasia Banking, Americas Banking and Retail. The changes in carrying amounts of goodwill within the Company's segments are summarized as follows:


	Eurasia Banking		Americas Banking		Retail		Total
Goodwill	$	598.6	$	437.3	$	233.2	$	1,269.1
Accumulated impairment losses	(291.7)		(122.0)		(57.2)		(470.9)
Balance at January 1, 2019	$	306.9	$	315.3	$	176.0	$	798.2

Divestitures	(12.1)		—		(3.9)		(16.0)
Currency translation adjustment	(7.3)		(6.0)		(4.9)		(18.2)
Goodwill	$	579.2	$	431.3	$	224.4	$	1,234.9

Accumulated impairment losses	(291.7)		(122.0)		(57.2)		(470.9)
Balance at December 31, 2019	$	287.5	$	309.3	$	167.2	$	764.0
Divestitures	(6.4)		(2.4)		(1.2)		(10.0)
Transferred to assets held for sale	(1.4)		—		—		(1.4)
Currency translation adjustment	19.0		15.8		13.0		47.8
Goodwill	$	590.4	$	444.7	$	236.2	$	1,271.3
Accumulated impairment losses	(291.7)		(122.0)		(57.2)		(470.9)
Balance at December 31, 2020	$	298.7	$	322.7	$	179.0	$	800.4

Goodwill. In the fourth quarter of 2020 in connection with the annual goodwill impairment test, the Company estimated the fair value of its reporting units using a combination of the income valuation and market approach methodologies. The determination of the fair value of a reporting unit requires significant estimates and assumptions, including significant unobservable inputs. The key inputs included, but were not limited to, discount rates, terminal growth rates, market multiple data from selected guideline public companies, management’s internal forecasts which include numerous assumptions such as projected net sales, gross profit, sales mix, operating and capital expenditures and earnings before interest and taxes margins, among others. No impairment resulted from the annual goodwill impairment test in any of the Company's reporting units.

The Company identified four reporting units, which are Eurasia Banking, Americas Banking, EMEA Retail and Rest of World Retail. Management determined that the fair value of Eurasia Banking had a cushion of approximately 65 percent and EMEA Retail had a cushion of approximately 15 percent when compared to their carrying amounts. The Americas Banking reporting unit had significant excess fair value or cushion when compared to its carrying amount. Rest of World Retail had no goodwill remaining. Changes in certain assumptions or the Company's failure to execute on the current plan could have a significant impact to the estimated fair value of the reporting units.

Intangible Assets. Intangible assets consists of net capitalized software development costs, patents, trademarks and other intangible assets. Where applicable, intangible assets are stated at cost and, if applicable, are amortized ratably over the relevant contract period or the estimated life of the assets. Fees to renew or extend the term of the Company’s intangible assets are expensed when incurred.

The following summarizes information on intangible assets by major category:


		December 31, 2020						December 31, 2019
	Weighted-average remaining useful lives	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships, net	5.2 years	$	762.0	$	(354.1)	$	407.9	$	698.7	$	(251.0)	$	447.7

Capitalized software development	2.5 years	198.0		(160.0)		38.0		178.2		(132.2)		46.0
Development costs non-software	2.0 years	56.1		(55.8)		0.3		51.5		(47.5)		4.0
Other	6.5 years	69.8		(67.4)		2.4		79.3		(74.7)		4.6
Other intangible assets, net		323.9		(283.2)		40.7		309.0		(254.4)		54.6
Total		$	1,085.9	$	(637.3)	$	448.6	$	1,007.7	$	(505.4)	$	502.3

Costs incurred for the development of external-use software that will be sold, leased or otherwise marketed are capitalized when technological feasibility has been established. These costs are included within other assets and are amortized on a straight-line basis over the estimated useful lives ranging from three to five years, using the method that most closely approximates the sales pattern of the software. Amortization begins when the product is available for general release. Costs capitalized include direct labor and related overhead costs. Costs incurred prior to technological feasibility or after general release are expensed as incurred. The Company performs periodic reviews to ensure that unamortized program costs remain recoverable from future revenue. If future revenue does not support the unamortized program costs, the amount by which the unamortized capitalized cost of a software product exceeds the net realizable value is written off.

The following table identifies the activity relating to total capitalized software development:


	2020		2019		2018
Beginning balance as of January 1	$	46.0	$	70.7	$	93.1
Capitalization	17.2		23.1		29.8
Amortization	(27.2)		(30.6)		(33.7)
Impairment	—		(15.0)		—
Transferred to held for sale	—		—		(14.4)
Currency translation	2.0		(2.2)		(4.1)
Ending balance as of December 31	$	38.0	$	46.0	$	70.7

The Company's total amortization expense, excluding deferred financing costs, was $106.7, $122.1 and $139.7 for the years ended December 31, 2020, 2019 and 2018, respectively. The expected annual amortization expense is as follows:


	Estimated amortization
2021	$	97.3
2022	96.4
2023	86.9
2024	81.7
2025	64.0
	$	426.3