Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and intangible assets were (in millions):


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

Goodwill	$	10,141.6	$	(531.9)	$	9,609.7	$	9,957.5	$	(517.0)	$	9,440.5

Intangible assets:
Purchased and internally developed software	$	377.6	$	(307.0)	$	70.6	$	350.7	$	(288.5)	$	62.2
Customer related and other	738.1		(510.2)		227.9		746.7		(470.7)		276.0
	$	1,115.7	$	(817.2)	$	298.5	$	1,097.4	$	(759.2)	$	338.2

Changes in goodwill were (in millions):


	Year Ended December 31,
	2020		2019
January 1	$	9,440.5	$	9,384.3
Acquisitions	50.8		5.5
Noncontrolling interests in acquired businesses	31.6		17.2
Contingent purchase price obligations of acquired businesses	—		24.7
Dispositions	(18.8)		(19.1)
Foreign currency translation	105.6		27.9
December 31	$	9,609.7	$	9,440.5

The decline in our stock price at the onset of the COVID-19 pandemic in March 2020 was determined to be a trigger event requiring us to perform an impairment review of our goodwill. We concluded our goodwill was not impaired. At June 30, 2020, we updated our first quarter 2020 assessment and performed our annual goodwill impairment test. Our assumptions reflect the economic conditions in light of the impact of the COVID-19 pandemic on our business, including downward adjustment to our revenue and earnings assumptions, reducing our long-term growth rate to 3.0%, compared to 3.5% in the prior year, increasing the weighted average cost of capital, or WACC, for each reporting unit to between 10.6% and 10.8%, compared to between 10.1% and 10.6% in the prior year, and limiting our estimate of our equity value to reflect the decline in our share price that occurred during the first half of 2020. In addition, the assumptions reflect the expected cost reductions from our severance and real estate repositioning actions (see Notes 1 and 13). Based on the results of the impairment test, we concluded that at June 30, 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 June 30, 2020 was not impaired. If economic conditions further deteriorate from June 30, 2020, including further declines in GDP estimates, our share price, increased interest rates or other factors, our goodwill could become impaired, and we could incur a non-cash charge against our earnings. The minimum decline in fair value that one of our reporting units would need to experience in order to fail the goodwill impairment test was approximately 20%.

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 June 30, 2020, our customer related and other intangible assets were not impaired.

There were no events through December 31, 2020 that would change our assumptions and resulting impairment assessments. No goodwill impairment losses were recorded in 2020 or 2019, and there are no accumulated goodwill impairment losses.