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Other Intangible Assets
3 Months Ended
Mar. 31, 2022
Goodwill And Intangible Assets Disclosure [Abstract]  
Other Intangible Assets

Note 4. Other Intangible Assets

Other Intangible Assets

 

 

 

Gross Amounts

 

 

Accumulated Amortization

 

 

 

March 31,

 

 

December 31,

 

 

March 31,

 

 

December 31,

 

(IN MILLIONS)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Indefinite-lived intangibles:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade names and trademarks

 

$

1,833

 

 

$

1,833

 

 

$

 

 

$

 

Amortized intangibles:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade names and trademarks

 

 

110

 

 

 

110

 

 

 

(97

)

 

 

(96

)

Customer-related intangibles

 

 

2,558

 

 

 

2,558

 

 

 

(1,717

)

 

 

(1,689

)

Covenants-not-to-compete

 

 

26

 

 

 

26

 

 

 

(26

)

 

 

(26

)

Content databases

 

 

168

 

 

 

168

 

 

 

(70

)

 

 

(67

)

Computer software

 

 

1,634

 

 

 

1,572

 

 

 

(1,017

)

 

 

(947

)

Patents and other

 

 

149

 

 

 

148

 

 

 

(130

)

 

 

(128

)

Total

 

$

4,645

 

 

$

4,582

 

 

$

(3,057

)

 

$

(2,953

)

 

 

Other indefinite-lived intangible assets and goodwill are each tested for impairment on an annual basis and whenever events or circumstances indicate that the carrying amount of such asset may not be recoverable.  There were no indicators of impairment during the first quarter of 2022.

During the first quarter of 2021, pursuant to Nielsen’s sale of its Global Connect business (such business, “Global Connect,” and the sale of Global Connect, the “Connect Transaction”) to affiliates of Advent International Corporation (“Advent”) on March 5, 2021,

Nielsen granted Advent a license to brand its products and services with the Nielsen name and other trademarks for 20 years following the closing of the Connect Transaction. There was an indefinite-lived trade name historically recognized within the Global Connect segment. However, as this indefinite-lived trade name was retained by Nielsen as part of the Connect Transaction, the trade name was included within continuing operations. During the first quarter of 2021, Nielsen concluded that there was a triggering event for an interim impairment assessment as a result of the change in unit of account of the indefinite-lived intangibles as a result of the sale of Global Connect. The impairment test for other indefinite-lived intangible assets consists of a comparison of the fair value of the intangible asset with its carrying amount. If the carrying amount of the intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. The estimates of fair value of trade names and trademarks are determined using a “relief from royalty” discounted cash flow valuation methodology. Significant assumptions inherent in this methodology include estimates of royalty rates, estimated future revenue (inclusive of long-term revenue growth rates) and discount rate. Discount rate assumptions are based on an assessment of the risk inherent in the respective intangible assets. The discount rate Nielsen used in its evaluation was 10.1%. Assumptions about royalty rates are based on the rates at which comparable trade names and trademarks are being licensed in the marketplace.  Based on the interim impairment assessment as of March 2021, Nielsen concluded that the estimated fair value exceeded carrying value, thus no impairment was recorded. Nielsen will continue to closely evaluate and report on any indicators of future impairments.

 

        There was no impairment or indicators of impairment noted in 2022 with respect to the Company’s amortizable intangible assets. Nielsen will continue to closely evaluate and report on any indicators of future impairments.

 

Amortization expense associated with the above intangible assets was $105 million and $102 million for the three months ended March 31, 2022 and 2021, respectively. These amounts included amortization expense associated with computer software of $70 million and $65 million for the three months ended March 31, 2022 and 2021, respectively.

At March 31, 2022, the net book value of purchased software and internally developed software was $9 million and $608 million, respectively.