Acquisitions, Goodwill, and Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2019

Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes our allocation of the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition:

	(in millions)
Cash consideration transferred	$	682.1
Cash and cash equivalents	$	8.5
Accounts receivable	28.8
Property, equipment, and capitalized software, net	12.8
Intangible assets, net	284.1
Goodwill	473.3
Operating lease assets	33.3
Other current and non-current assets	5.7
Deferred revenue	(43.2		)
Deferred tax liability, net	(66.6		)
Operating lease liabilities	(35.0		)
Other current and non-current liabilities	(19.6		)
Total fair value of DBRS	$	682.1

Accounts receivable acquired were recorded at gross contractual amounts receivable, which approximates fair value. We expect to collect substantially all of the gross contractual amounts receivable within a reasonable period of time after the acquisition date.

Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination

	(in millions)		Weighted Average Useful Life (years)
Customer-related assets	$	219.1	10
Technology-based assets	29.4		5
Intellectual property (trademarks and trade names)	35.6		7
Total intangible assets	$	284.1

Pro Forma Information

Unaudited Pro Forma Financial Information (in millions)	2019		2018
Revenue	$	1,259.2	$	1,184.5
Operating income	190.3		223.6
Net income	148.2		179.7
Basic net income per share	$	3.47	$	4.22
Diluted net income per share	$	3.43	$	4.18

Schedule of Goodwill

The following table shows the changes in our goodwill balances from January 1, 2018 to December 31, 2019:

 

	(in millions)
Balance as of January 1, 2018	$	564.9
Other, primarily foreign currency translation	(8.2		)
Balance as of December 31, 2018	$	556.7
Acquisition of DBRS	473.3
Other, primarily foreign currency translation	9.1
Balance as of December 31, 2019	$	1,039.1

Schedule of Intangible Assets

The following table summarizes our intangible assets: 

	As of December 31, 2019								As of December 31, 2018
(in millions)	Gross		Accumulated Amortization			Net		Weighted Average Useful  Life (years)	Gross		Accumulated Amortization			Net		Weighted Average Useful  Life (years)
Intellectual property	$	66.7	$	(32.9	)	$	33.8	8	$	30.8	$	(29.2	)	$	1.6	9
Customer-related assets	377.9		(130.3		)	247.6		11	153.0		(111.7		)	41.3		12
Supplier relationships	0.2		(0.1		)	0.1		20	0.2		(0.1		)	0.1		20
Technology-based assets	163.7		(112.0		)	51.7		7	126.9		(96.3		)	30.6		7
Non-competition agreements	2.4		(2.2		)	0.2		5	2.4		(2.1		)	0.3		5
Total intangible assets	$	610.9	$	(277.5	)	$	333.4	10	$	313.3	$	(239.4	)	$	73.9	10

Schedule of Intangible Asset, Amortization Expense

The following table summarizes our amortization expense related to intangible assets:

(in millions)	2019		2018		2017
Amortization expense	$	36.5	$	20.7	$	23.6

Schedule of Expected Amortization Expense

Based on acquisitions and divestitures completed through December 31, 2019, we expect intangible amortization expense for 2020 and subsequent years to be as follows:

	(in millions)
2020	$	53.5
2021	50.2
2022	42.2
2023	40.0
2024	34.0
Thereafter	113.5
Total	$	333.4