Goodwill and Acquired Intangible Assets

Goodwill

The following table presents the changes in goodwill by business segment during the year ended December 31, 2018:



	Market Services			Corporate Services			Information Services			Market Technology			Total
	(in millions)
Balance at December 31, 2017	$	3,546		$	490		$	2,362		$	188		$	6,586
Goodwill acquired	—			—			56			—			56
Measurement period adjustment	—			—			(8		)	—			(8		)
Reclassification of goodwill⁽¹⁾	—			29			—			(29		)	—
Goodwill reclassified to held for sale⁽²⁾	—			(47		)	—			—			(47		)
Foreign currency translation adjustment	(116		)	(17		)	(77		)	(14		)	(224		)
Balance at December 31, 2018	$	3,430		$	455		$	2,333		$	145		$	6,363

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⁽¹⁾ Concurrent with the realignment of our BWise internal audit, regulatory compliance management, and operational risk management software solutions from our Market Technology segment to our Corporate Services segment, goodwill was reassigned to the Corporate Services segment using a relative fair value approach.


⁽²⁾	See Note 5, “Assets and Liabilities Held for Sale,” for further discussion.

The goodwill acquired for Information Services shown above relates to our acquisitions of Quandl and RedQuarry. See “2018 Acquisitions,” of Note 3, “Acquisitions and Divestiture,” for further discussion.

In October 2018, we recorded a measurement period adjustment of $8 million to the estimated fair value of deferred tax assets related to our acquisition of eVestment. See “Acquisition of eVestment,” of Note 3, “Acquisitions and Divestiture,” for further discussion of the adjustment.

As of December 31, 2018, the amount of goodwill that is expected to be deductible for tax purposes in future periods is $807 million.

Goodwill represents the excess of purchase price over the value assigned to the net assets, including identifiable intangible assets, of a business acquired. Goodwill is allocated to our reporting units based on the assignment of the fair values of each reporting unit of the acquired company. We test goodwill for impairment at the reporting unit level annually, or in interim periods if certain events occur indicating that the carrying amount may be impaired, such as changes in the business climate, poor indicators of operating performance or the sale or disposition of a significant portion of a reporting unit. There was no impairment of goodwill for the years ended December 31, 2018, 2017 and 2016; however, events such as extended economic weakness or unexpected significant declines in operating results of a reporting unit may result in goodwill impairment charges in the future.

* * * * * *

Acquired Intangible Assets

The following table presents details of our total acquired intangible assets, both finite- and indefinite-lived:



	December 31, 2018										December 31, 2017
	Gross Amount			Accumulated Amortization			Net Amount			Weighted-Average Useful Life (in Years)	Gross Amount			Accumulated Amortization			Net Amount			Weighted-Average Useful Life (in Years)
	(in millions)										(in millions)
Finite-Lived Intangible Assets
Technology	$	54		$	(15	)	$	39		9	$	65		$	(22	)	$	43		8
Customer relationships⁽¹⁾	1,532			(456		)	1,076			18	1,708			(526		)	1,182			18
Other	17			(2		)	15			8	17			(4		)	13			8
Foreign currency translation adjustment	(149		)	64			(85		)		(111		)	46			(65		)
Total finite-lived intangible assets	$	1,454		$	(409	)	$	1,045			$	1,679		$	(506	)	$	1,173
Indefinite-Lived Intangible Assets
Exchange and clearing registrations	$	1,257		$	—		$	1,257			$	1,257		$	—		$	1,257
Trade names	122			—			122				129			—			129
Licenses	52			—			52				52			—			52
Foreign currency translation adjustment	(176		)	—			(176		)		(143		)	—			(143		)
Total indefinite-lived intangible assets	$	1,255		$	—		$	1,255			$	1,295		$	—		$	1,295
Total intangible assets	$	2,709		$	(409	)	$	2,300			$	2,974		$	(506	)	$	2,468

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⁽¹⁾	The decrease in the gross amount and accumulated amortization for customer relationships as of December 31, 2018 compared with 2017 is primarily due to certain intangible assets that became fully amortized in fourth quarter of 2018.

As a result of our decision to sell BWise, we reclassified certain intangibles assets to held for sale. The following table presents the gross amount, accumulated amortization and net amount of finite-lived and indefinite-lived intangible assets that have been reclassified as assets held for sale as of December 31, 2018. See Note 5, “Assets and Liabilities Held for Sale,” for further discussion.



	Gross Amount		Accumulated Amortization			Net Amount
	(in millions)
Finite-lived intangible assets reclassified as held for sale - customer relationships	$	21	$	(10	)	$	11
Indefinite-lived intangible assets reclassified as held for sale - trade name	$	5	$	—		$	5
Total intangible assets held for sale	$	26	$	(10	)	$	16

In February 2019, we entered into an agreement to sell BWise. See “Agreement to Sell BWise,” of Note 21, “Subsequent Events,” for further discussion.

In addition, in April 2018, in connection with the sale of the Public Relations Solutions and Digital Media Services businesses, we recorded a $2 million pre-tax, non-cash write-off related to an indefinite-lived intangible asset trade name.

Amortization expense for acquired finite-lived intangible assets was $109 million for the year ended December 31, 2018, $92 million for the year ended December 31, 2017, and $82 million for the year ended December 31, 2016. Amortization expense increased in 2018 and 2017 primarily due to additional amortization expense associated with acquired intangible assets in 2017. These amounts are included in depreciation and amortization expense in the Consolidated Statements of Income.

The estimated future amortization expense (excluding the impact of foreign currency translation adjustments of $85 million as of December 31, 2018) of acquired finite-lived intangible assets as of December 31, 2018 is as follows:



	(in millions)
2019	$	100
2020	98
2021	97
2022	94
2023	92
2024 and thereafter	649
Total	$	1,130