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Goodwill and Other Assets
 9 Months Ended
Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND OTHER ASSETS Goodwill and Other Assets
In the second quarter of 2022, the Company reorganized its reportable segments in connection with the new and simplified operating model implemented by the recently appointed Chief Executive Officer. This organizational change is described in further detail in Note 19, and is consistent with how the Chief Executive Officer, the chief operating decision maker (CODM), makes key operating decisions, allocates resources, and assesses the performance of the business.

Prior to reorganization, the Company had four reporting units: Eurasia Banking, Americas Banking, EMEA Retail, and Rest of World Retail. The Company's new reporting units, determined in accordance with ASC 350, "Intangibles - goodwill and other", are the same as the operating and reportable segments, which are global Banking and global Retail. The Banking reporting unit is the summation of the legacy Eurasia Banking and Americas Banking reporting units and Retail is the summation of the legacy EMEA Retail and Rest of World Retail reporting units.
The new segmentation aligns with the Company's focus on standard and centralized global product and service offerings that support our customer base, which is largely comprised of global financial institutions and retailers. Further the simplified organization does not have regional leaders reporting to the CODM, and operating metrics other than net sales will not be allocated or analyzed on a regional basis largely due to the centralization of our manufacturing and procurement functions.

As of April 30, 2022 and as a result of the reporting unit change, we performed an interim quantitative goodwill impairment test for both our old and new reporting units using a combination of the income valuation and market approach methodology. The determination of the fair value of the 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 quantitative interim goodwill impairment test under either the legacy or new reporting unit structure.

Management determined that the fair value of Eurasia Banking had a cushion of approximately 10 percent when compared to its carrying amounts prior to the change. The other legacy reporting units had significant excess fair value or cushion when compared to its carrying amount. Under the new reporting unit structure, Banking had a cushion of approximately 130 percent and Retail had a cushion of approximately 110 percent.

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.

In addition to the quantitative goodwill impairment test, the Company also performed a reassignment of the goodwill to the new reporting units using a relative fair value allocation approach required by ASC 350. The results of that reassignment are included in the summary below.

Legacy Reporting UnitsNew Reporting Unit
Eurasia BankingAmericas BankingBankingRetailTotal
Goodwill$590.4 $444.7 $— $236.2 $1,271.3 
Accumulated impairment(291.7)(122.0)— (57.2)(470.9)
Balance at January 1, 2021$298.7 $322.7 $— $179.0 $800.4 
Divestitures— — — (3.3)(3.3)
Currency translation adjustment(29.0)(4.6)— (19.9)(53.5)
Goodwill$561.4 $440.1 $— $213.0 $1,214.5 
Accumulated impairment(291.7)(122.0)— (57.2)(470.9)
Balance at December 31, 2021$269.7 $318.1 $— $155.8 $743.6 
Currency translation adjustment(6.3)(1.0)— (4.4)(11.7)
Goodwill$555.1 $439.1 $— $208.6 $1,202.8 
Currency translation adjustment— — (55.4)(26.9)(82.3)
Goodwill reassignment(555.1)(439.1)922.2 72.0 — 
Goodwill$— $— $866.8 $253.7 $1,120.5 
Accumulated impairment reassignment291.7 122.0 (413.7)— — 
Accumulated impairment$— $— $(413.7)$(57.2)$(470.9)
Balance at September 30, 2022$— $— $453.1 $196.5 $649.6 
The following summarizes information on intangible assets by major category:
September 30, 2022December 31, 2021
Weighted-average remaining useful livesGross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Amount		Gross
Carrying Amount		Accumulated
Amortization		Net
Carrying
Amount
Customer relationships, net3.4 years$605.3 $(394.0)$211.3 $703.3 $(401.6)$301.7 
Capitalized Software Development1.9 years227.9 (189.4)38.5 228.1 (184.9)43.2 
Development costs non-software0.8 years46.3 (44.0)2.3 51.8 (51.6)0.2 
Other intangibles5.2 years46.1 (44.0)2.1 50.8 (48.4)2.4 
Other intangible assets, net320.3 (277.4)42.9 330.7 (284.9)45.8 
Total$925.6 $(671.4)$254.2 $1,034.0 $(686.5)$347.5 

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. 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 impaired.

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

20222021
Beginning balance as of January 1$43.2 $38.0 
Capitalization24.0 21.6 
Amortization(19.7)(17.7)
CTA, transferred to held-for-sale, impaired, other(9.0)(0.4)
Ending balance as of September 30$38.5 $41.5 
The Company's total amortization expense, excluding that related to deferred financing costs, was $72.1 and $78.1 for the nine months ended September 30, 2022 and 2021, respectively. The Company's total amortization expense, excluding that related to deferred financing costs, was $23.2 and $26.0 for the three months ended September 30, 2022 and 2021, respectively.