Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLES

Goodwill by business segment is as follows:


	Americas		Asia Pacific		Europe, Middle East & Africa		Total
Balance, December 31, 2019	$	371.5	$	50.3	$	184.0	$	605.8
Foreign currency translation	(1.8)		(1.8)		(5.9)		(9.5)
Balance, March 31, 2020	$	369.7	$	48.5	$	178.1	$	596.3

The gross carrying amount and accumulated amortization of identifiable intangible assets by major class follow:


As of March 31, 2020	Gross		Accumulated Amortization		Net
Customer relationships	$	1,078.3	$	(285.1)	$	793.2
Developed technology	324.8		(113.0)		211.8
Capitalized software	104.3		(39.6)		64.7
Trademarks	38.6		(13.6)		25.0
Total finite-lived identifiable intangible assets	$	1,546.0	$	(451.3)	$	1,094.7
Indefinite-lived trademarks	290.6		—		290.6
Total intangible assets	$	1,836.6	$	(451.3)	$	1,385.3
As of December 31, 2019	Gross		Accumulated Amortization		Net
Customer relationships	$	1,099.2	$	(268.2)	$	831.0
Developed technology	328.2		(105.4)		222.8
Capitalized software	103.3		(35.8)		67.5
Trademarks	38.6		(12.4)		26.2
Favorable operating leases	2.1		(2.1)		—
Total finite-lived identifiable intangible assets	$	1,571.4	$	(423.9)	$	1,147.5
Indefinite-lived trademarks	294.1		—		294.1
Total intangible assets	$	1,865.5	$	(423.9)	$	1,441.6

Total intangible asset amortization expense for the three months ended March 31, 2020 and 2019 was $36.3 and $35.4, respectively.

The Company considered the overall macroeconomic conditions as a result of the COVID-19 pandemic and the uncertainty surrounding the global economy and concluded that it was not more likely than not the fair value of its three reporting units declined below their carrying value and therefore an interim quantitative impairment test was not required at March 31, 2020. The present uncertainty surrounding the global economy due to the COVID-19 pandemic increases the likelihood that adverse changes in key assumptions used to determine the fair value of reporting units like sales estimates, cost factors, discount rates and stock price could result in interim quantitative goodwill impairment tests and non-cash goodwill impairments in future periods.

In view of the COVID-19 pandemic the Company also reviewed its indefinite-lived tradename intangible assets and concluded that it was not more likely than not the fair value of such tradename assets were below its carrying value. However, uncertainty surrounding the impact of the COVID-19 pandemic increases the likelihood that adverse changes in key assumptions used to determine the fair value of indefinite-lived intangibles like sales estimates or discount rates could result in interim quantitative tradename impairments tests and non-cash tradename impairments in future periods. Additionally, uncertainty around the current macroeconomic environment could result in changes to the Company’s marketing and branding strategy which also could impact the carrying value or estimated useful lives of the Company’s tradenames.

Subsequent to the quarter ended March 31, 2020, management of the Company made a decision to change strategy on the ERP platform that was being implemented in the Americas segment. As a result, we expect that we could recognize a write-off of approximately $15.0 of capitalized software costs during the second quarter ending June 30, 2020.