Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Goodwill

The changes in goodwill by reportable segment are as follows:

(in millions)	Corporate		Small Business		Public		Other(1)			Consolidated
Balance at December 31, 2016(2)	1,074.1		185.9		929.6		265.4			2,455.0
Foreign currency translation	—		—		—		24.6			24.6
Balances as of December 31, 2017(2)	1,074.1		185.9		929.6		290.0			2,479.6
Foreign currency translation	—		—		—		(16.8		)	(16.8		)
Balances as of December 31, 2018(2)	$	1,074.1	$	185.9	$	929.6	$	273.2		$	2,462.8

(1) Other is comprised of CDW UK and Canada reporting units.

(2) Goodwill is net of accumulated impairment losses of $1,571 million, $354 million and $28 million related to the Corporate, Public and Other segments, respectively.

December 1, 2018 Impairment Analysis

The Company completed its annual impairment analysis as of December 1, 2018. For all reporting units, the Company performed a qualitative analysis. The Company determined that it was more-likely-than-not that the individual fair values of all reporting units exceeded the respective carrying values. As a result of this determination, the quantitative impairment analysis was not performed. There continues to be substantial uncertainty regarding the economic impact of the Referendum on the UK's Membership of the European Union ("EU") advising for the exit of the UK from the EU and the subsequent notice delivered by the UK to the EU of the UK's withdrawal (referred to as "Brexit"). Negotiations to determine the terms of the withdrawal, including the terms of trade between the UK and EU, are ongoing. The Company evaluated these facts when considering its qualitative analysis of the UK reporting unit and concluded it was more-likely-than-not that the fair value of the UK reporting unit exceeds its carrying value.

December 1, 2017 Impairment Analysis

The Company completed its annual impairment analysis as of December 1, 2017. For the Corporate, Small Business and UK reporting units, the Company performed a qualitative analysis. The Company determined that it was more-likely-than-not that the individual fair values of the Corporate, Small Business and UK reporting units exceeded the respective carrying values and therefore a quantitative impairment analysis was deemed unnecessary. The Company performed a quantitative analysis of the Public and Canada reporting units. Based on the results of the quantitative analysis, the Company determined that the fair value of the Public and Canada reporting units exceeded their carrying values by 179% and 153%, respectively, and no impairment existed.

Other Intangible Assets

A summary of intangible assets is as follows:

(in millions)
December 31, 2018	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships and contracts	$	2,071.0	$	(1,625.5	)	$	445.5
Trade name	422.1		(237.3		)	184.8
Internally developed software	205.8		(125.4		)	80.4
Other	3.7		(2.2		)	1.5
Total	$	2,702.6	$	(1,990.4	)	$	712.2
December 31, 2017
Customer relationships and contracts	$	2,106.8	$	(1,490.8	)	$	616.0
Trade name	422.2		(216.3		)	205.9
Internally developed software	162.6		(89.6		)	73.0
Other	2.9		(0.8		)	2.1
Total	$	2,694.5	$	(1,797.5	)	$	897.0

During the years ended December 31, 2018, 2017 and 2016, the Company recorded disposals of $26 million, $24 million and $29 million, respectively, to remove fully amortized intangible assets that were no longer in use.

Amortization expense related to intangible assets for the years ended December 31, 2018, 2017 and 2016 was $223 million, $221 million and $216 million, respectively.

Estimated future amortization expense related to intangible assets is as follows:

(in millions)
Years ending December 31,	Estimated Future Amortization Expense
2019	$	215.9
2020	182.2
2021	85.1
2022	37.4
2023	37.4
Thereafter	154.2
Total future amortization expense	$	712.2