v3.21.2

Goodwill and Intangible Assets, Net | 9 Months Ended
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Sep. 30, 2021
Goodwill And Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets, Net | 6. Goodwill and Intangible assets, net The changes in the net carrying amount of goodwill are as follows (in millions):
|  | Predecessor |
|  | Employer |  |  | Professional |  |  |  |  |  |
|  | Solutions |  |  | Services |  |  | Total |
Balance as of December 31, 2020 |  | $ |  | 1,985 |  |  | $ |  | 260 |  |  | $ |  | 2,245 |
Measurement period adjustments |  |  |  | 2 |  |  |  |  | — |  |  |  |  | 2 |
Foreign currency translation |  |  |  | 2 |  |  |  |  | 1 |  |  |  |  | 3 |
Balance as of June 30, 2021 |  | $ |  | 1,989 |  |  | $ |  | 261 |  |  | $ |  | 2,250 |
The preliminary Successor goodwill at both July 1, 2021 and September 30, 2021 was $3.4 billion and $36 million for Employer Solutions and Professional Services, respectively. Of the preliminary Successor goodwill established during the period, $1.5 billion of the goodwill was tax deductible. The Company did not identify any impairment for the Successor period from July 1, 2021 to September 30, 2021, nor the Predecessor period December 31, 2020 to June 30, 2021. Goodwill is reviewed for impairment utilizing a qualitative assessment or a quantitative goodwill impairment test and the Company determined that it was more likely than not that no impairment of goodwill existed as of the evaluation date. Intangible assets by asset class are as follows (in millions):
|  | Successor |  |  | Predecessor |
|  | September 30, 2021 |  |  | December 31, 2020 |
|  | Gross |  |  |  |  |  |  |  | Net |  |  | Gross |  |  |  |  |  |  |  |  |
|  | Carrying |  |  | Accumulated |  |  | Carrying |  |  | Carrying |  |  | Accumulated |  |  | Net Carrying |
|  | Amount |  |  | Amortization |  |  | Amount |  |  | Amount |  |  | Amortization |  |  | Amount |
Intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer related and contract based intangibles |  | $ |  | 3,456 |  |  | $ |  | 58 |  |  | $ |  | 3,398 |  |  | $ |  | 2,078 |  |  | $ |  | 486 |  |  | $ |  | 1,592 |
Technology related intangibles |  |  |  | 222 |  |  |  |  | 9 |  |  |  |  | 213 |  |  |  |  | 316 |  |  |  |  | 180 |  |  |  |  | 136 |
Trade name (finite life) |  |  |  | 400 |  |  |  |  | 7 |  |  |  |  | 393 |  |  |  |  | 8 |  |  |  |  | 6 |  |  |  |  | 2 |
Trade name (indefinite life) |  |  |  | — |  |  |  |  | — |  |  |  |  | — |  |  |  |  | 3 |  |  |  |  | — |  |  |  |  | 3 |
Total |  | $ |  | 4,078 |  |  | $ |  | 74 |  |  | $ |  | 4,004 |  |  | $ |  | 2,405 |  |  | $ |  | 672 |  |  | $ |  | 1,733 |
The net carrying amount of Intangible assets as of September 30, 2021 includes the preliminary fair values for customer related and contract based identifiable intangible assets, technology related intangible assets and tradename assets based on management’s preliminary estimate of fair value (see Note 4 “Acquisitions” for further information). As a result of the Business Combination, all accumulated amortization previously recorded by the Predecessor was reduced to zero as of July 1, 2021. Amortization expense from finite-lived intangible assets for the Successor three months ended September 30, 2021 and the Predecessor six months ended June 30, 2021 and three and nine months ended September 30, 2020 was $74 million, $100 million, $51 million and $151 million, respectively, which was recorded in Depreciation and intangible amortization in the Condensed Consolidated Statements of Comprehensive Income (Loss). Subsequent to September 30, 2021, the annual amortization expense is expected to be as follows (in millions):
|  | Customer Related |  |  | Technology |  |  | Trade |
|  | and Contract Based |  |  | Related |  |  | Name |
|  | Intangibles |  |  | Intangibles |  |  | Intangible |
Remainder of 2021 (October - December) |  | $ |  | 58 |  |  | $ |  | 10 |  |  | $ |  | 6 |
2022 |  |  |  | 230 |  |  |  |  | 37 |  |  |  |  | 27 |
2023 |  |  |  | 230 |  |  |  |  | 37 |  |  |  |  | 27 |
2024 |  |  |  | 230 |  |  |  |  | 37 |  |  |  |  | 27 |
2025 |  |  |  | 230 |  |  |  |  | 37 |  |  |  |  | 27 |
Thereafter |  |  |  | 2,420 |  |  |  |  | 55 |  |  |  |  | 279 |
Total amortization expense |  | $ |  | 3,398 |  |  | $ |  | 213 |  |  | $ |  | 393 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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