Intangible Assets
Goodwill
Goodwill is the excess purchase price remaining from an acquisition after an allocation of purchase price has been made to identifiable assets acquired and liabilities assumed based on estimated fair values. The changes in the carrying value of goodwill for our segments, IAN and CMG, for the years ended December 31, 2013 and 2012 are listed below.
|
| | | | | | | | | | | | |
| | IAN | | CMG | | Total 1 |
Balance as of December 31, 2011 | | $ | 2,952.9 |
| | $ | 491.4 |
| | $ | 3,444.3 |
|
Current year acquisitions | | 122.0 |
| | 11.7 |
| | 133.7 |
|
Contingent and deferred payments for prior acquisitions | | 2.2 |
| | 0.0 |
| | 2.2 |
|
Other 2 | | (2.5 | ) | | 2.9 |
| | 0.4 |
|
Balance as of December 31, 2012 | | $ | 3,074.6 |
| | $ | 506.0 |
| | $ | 3,580.6 |
|
Current year acquisitions | | 58.8 |
| | 16.5 |
| | 75.3 |
|
Contingent and deferred payments for prior acquisitions | | 0.0 |
| | 0.0 |
| | 0.0 |
|
Other 2 | | (24.1 | ) | | (2.8 | ) | | (26.9 | ) |
Balance as of December 31, 2013 | | $ | 3,109.3 |
| | $ | 519.7 |
| | $ | 3,629.0 |
|
| |
1 | For all periods presented we have not recorded a goodwill impairment charge. |
| |
2 | Primarily includes foreign currency translation adjustments. |
See Note 1 for information regarding our annual impairment methodology.
Other Intangible Assets
Other intangible assets are comprised of assets with indefinite lives not subject to amortization and assets with definite lives subject to amortization. Other intangible assets primarily consist of customer lists and trade names, which have definitive lives and are subject to amortization on a straight-line basis with estimated useful lives generally between 7 and 15 years. Amortization expense for other intangible assets for the years ended December 31, 2013, 2012 and 2011 was $26.8, $23.4 and $20.2, respectively. There were no material impairment charges on other intangibles for the years ended December 31, 2013, 2012 and 2011. During 2013 and 2012, we recorded approximately $21.5 and $67.0 of intangible assets related to acquisitions made in the respective year.
The following table provides a summary of other intangible assets, which are included in other assets on our Consolidated Balance Sheets.
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | December 31, |
| | 2013 | | 2012 |
| | Gross Amount | | Accumulated Amortization | | Net Amount | | Gross Amount | | Accumulated Amortization | | Net Amount |
Customer lists | | $ | 228.1 |
| | $ | (119.8 | ) | | $ | 108.3 |
| | $ | 184.0 |
| | $ | (96.9 | ) | | $ | 87.1 |
|
Trade names | | 64.5 |
| | (19.2 | ) | | 45.3 |
| | 59.7 |
| | (15.5 | ) | | 44.2 |
|
Other | | 14.0 |
| | (3.8 | ) | | 10.2 |
| | 15.1 |
| | (5.7 | ) | | 9.4 |
|
Total | | $ | 306.6 |
| | $ | (142.8 | ) | | $ | 163.8 |
| | $ | 258.8 |
| | $ | (118.1 | ) | | $ | 140.7 |
|
The estimated annual amortization expense for other intangible assets for the next five years as of December 31, 2013 is listed below.
|
| | | | | | | | | | | | | | | | | | | | |
| | 2014 | | 2015 | | 2016 | | 2017 | | 2018 |
Estimated amortization expense | | $ | 34.6 |
| | $ | 34.3 |
| | $ | 26.8 |
| | $ | 10.8 |
| | $ | 9.5 |
|
