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Acquisitions, Goodwill and Other Intangible Assets
 3 Months Ended
Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Acquisitions, Goodwill and Other Intangible Assets Acquisitions, Goodwill, and Other Intangible Assets
2020 Acquisitions
On January 31, 2020, we acquired Hueler Analytics' Stable Value Fund Comparative Universe Data and Stable Value Index (Hueler Analytics). We began consolidating the financial results of Hueler Analytics in our consolidated financial statements on January 31, 2020.
2019 Acquisitions
During the first quarter of 2020, we did not record significant adjustments to the purchase price allocation related to our acquisition of DBRS, compared with the preliminary estimates disclosed in the Notes of the Audited Consolidated Financial Statements included in our Annual Report. The values assigned to various assets and liabilities in the preliminary purchase price allocation are subject to change as a result of information that may become available in the future.
As of March 31, 2020, the primary areas of the preliminary purchase price allocation that are not yet finalized include current and deferred tax assets and liabilities.
The following unaudited pro forma information presents a summary of our Condensed Consolidated Statements of Income for the year ended March 31, 2019 as if we had completed the acquisition as of January 1, 2019.
This unaudited pro forma information is presented for illustrative purposes and is not intended to represent or be indicative of the actual results of operations or expected synergies of DBRS Morningstar that would have been achieved had the acquisition occurred at the beginning of the earliest period presented, nor is it intended to represent or be indicative of future results of operations.
In calculating the pro forma information below, we included an estimate of amortization expense related to the intangible assets acquired, depreciation expense due to changes in estimated remaining useful lives of long-lived assets, and reduction in revenue as a result of the fair value adjustments to deferred revenue as well as the related income tax impacts.
Unaudited Pro Forma Financial Information
 
Three months ended
(in millions, except for per share amount)
 
March 31, 2019
Revenue
 
$
297.3

Operating income
 
49.4

Net income
 
28.6

 
 
 
Basic net income per share
 
$
0.67

Diluted net income per share
 
$
0.66


Goodwill
The following table shows the changes in our goodwill balances from December 31, 2019 to March 31, 2020:
 
 
(in millions)
Balance as of December 31, 2019
 
$
1,039.1

Foreign currency translation
 
(25.9
)
Balance as of March 31, 2020
 
$
1,013.2


We did not record any impairment losses in the first three months of 2020 and 2019. We perform our annual impairment reviews in the fourth quarter or when impairment indicators and triggering events are identified.

Intangible Assets
The following table summarizes our intangible assets: 
 
 
As of March 31, 2020
 
As of December 31, 2019
(in millions)
 
Gross
 
Accumulated
Amortization
 
Net
 
Weighted
Average
Useful  Life
(years)
 
Gross
 
Accumulated
Amortization
 
Net
 
Weighted
Average
Useful  Life
(years)
Customer-related assets
 
362.0

 
(134.3
)
 
227.7

 
11
 
377.9

 
(130.3
)
 
247.6

 
11
Technology-based assets
 
164.4

 
(115.6
)
 
48.8

 
7
 
163.7

 
(112.0
)
 
51.7

 
7
Intellectual property & other
 
65.6

 
(35.9
)
 
29.7

 
8
 
69.3

 
(35.2
)
 
34.1

 
8
Total intangible assets
 
$
592.0

 
$
(285.8
)
 
$
306.2

 
9
 
$
610.9

 
$
(277.5
)
 
$
333.4

 
10

 
The following table summarizes our amortization expense related to intangible assets:
 
 
Three months ended March 31,
(in millions)
 
2020
 
2019
Amortization expense
 
$
14.0

 
$
4.9


 
We amortize intangible assets using the straight-line method over their expected economic useful lives.
We expect intangible amortization expense for the remainder of 2020 and subsequent years to be as follows:
 
 
(in millions)
Remainder of 2020 (from April 1 through December 31)
 
$
39.0

2021
 
49.6

2022
 
41.6

2023
 
37.8

2024
 
32.2

Thereafter
 
106.0

Total
 
$
306.2


 
Our estimates of future amortization expense for intangible assets may be affected by additional acquisitions, divestitures, changes in the estimated average useful lives, impairments, and foreign currency translation.