Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and intangible assets were (in millions):


	March 31, 2020										December 31, 2019
	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Gross Carrying Value		Accumulated Amortization		Net Carrying Value

Goodwill	$	9,701.7	$	(503.1)	$	9,198.6	$	9,957.5	$	(517.0)	$	9,440.5

Intangible assets:
Purchased and internally developed software	$	353.3	$	(285.1)	$	68.2	$	350.7	$	(288.5)	$	62.2
Customer related and other	711.9		(464.3)		247.6		746.7		(470.7)		276.0
	$	1,065.2	$	(749.4)	$	315.8	$	1,097.4	$	(759.2)	$	338.2

Changes in goodwill were (in millions):


	Three Months Ended March 31,
	2020		2019
January 1	$	9,440.5	$	9,384.3
Acquisitions	1.7		0.5
Noncontrolling interests in acquired businesses	—		0.8
Contingent purchase price obligations of acquired businesses	—		0.2
Dispositions	(0.1)		(19.0)
Foreign currency translation	(243.5)		12.0
March 31	$	9,198.6	$	9,378.8

As a result of the changes in the current economic environment related to the COVID-19 pandemic, the significant decline in our share price constituted a trigger event, requiring us to evaluate our goodwill for impairment. At June 30, 2019, the date of our last annual impairment test, the fair value of each of our reporting units was in excess of their carrying value. In light of current economic conditions, we performed an interim impairment test to update our valuation. We adjusted our June 30, 2019 assumptions to reflect the economic conditions in light of the impact related to the COVID-19 pandemic, including downward adjustment to our revenue and earnings assumptions, reducing our long-term growth rate to 3.0% from 3.5%, increasing the weighted average cost of capital, or WACC, for each reporting unit by 1.2% to 1.5%, to between 11.3% and 11.8%, and limiting our estimate of our equity value to reflect the decline in our share price that occurred during March 2020. Based on the results of the interim impairment test, we concluded that at March 31, 2020 our goodwill was not impaired because the fair value of each of our reporting units was significantly in excess of its respective carrying value, and for our reporting units with negative book value, we concluded that the fair value of their total assets was in excess of book value. We performed a sensitivity analysis of our assumptions, including a 1 percent change to our WACC or long-term growth assumptions. The results of the sensitivity analysis confirmed our conclusion that goodwill at March 31, 2020 was not impaired. We intend to perform our annual impairment test at

June 30, 2020. If economic conditions further deteriorate from March 31, 2020, including further declines in GDP estimates, our share price or other factors, our goodwill could become impaired and we could incur a non-cash charge against our earnings.

In addition, we evaluated our customer related and other intangible assets for impairment. We compared the carrying value of these assets against the undiscounted cash flows expected to be generated from the assets and we concluded that at March 31, 2020 our customer related and other assets were not impaired.