v3.19.3.a.u2
Acquisition (Tables)
12 Months Ended
Dec. 31, 2019
Business Combinations [Abstract]  
Summary of Initial and Revised Fair Values of Assets Acquired and Liabilities Assumed A summary of the initial and revised fair values of the assets acquired and liabilities assumed in this acquisition is as follows(1):

 

 

Initial

 

 

Revised

 

 

 

Estimate of

 

 

Estimate of

 

(in millions)

 

Fair Value

 

 

Fair Value

 

Accounts receivable

 

$

65

 

 

$

61

 

Finite-lived intangible assets:

 

 

 

 

 

 

 

 

Customer relationships(2)

 

 

452

 

 

 

400

 

Technology-related(3)

 

 

205

 

 

 

203

 

Trade name(4)

 

 

21

 

 

 

14

 

Goodwill

 

 

990

 

 

 

1,044

 

Other assets

 

 

31

 

 

 

49

 

Deferred income tax liabilities

 

 

(194

)

 

 

(146

)

Other liabilities assumed

 

 

(64

)

 

 

(125

)

Total consideration, net of cash acquired

 

$

1,506

 

 

$

1,500

 

 

 

 

 

 

 

 

 

 

Summary of consideration, net of cash acquired:

 

 

 

 

 

 

 

 

Cash paid including settlement of outstanding debt of approximately $0.2 billion

 

$

1,555

 

 

$

1,555

 

Cash acquired

 

 

(49

)

 

 

(55

)

Total consideration, net of cash acquired

 

$

1,506

 

 

$

1,500

 

 

 

 

 

 

 

 

 

 

(1)

At this time, the Company does not expect additional material changes to the value of the assets acquired or liabilities assumed in conjunction with the transaction.

(2)

The fair value was determined based on the excess earnings method (a Level 3 input), has a weighted-average estimated useful life of approximately 10 years and is amortized using the accelerated amortization method.

(3)

The fair value was determined based upon a relief from royalty method (a Level 3 input), has a weighted-average estimated useful life of approximately eight years and is amortized using the accelerated amortization method.

(4)

The fair value was determined using a relief from royalty method (a Level 3 input), has an estimated useful life of approximately four years and is amortized using the accelerated amortization method.

Summary of Finite-Lived Intangible Assets Remaining Amortization Expense The finite-lived intangible assets had a weighted-average remaining useful life of approximately nine years with remaining amortization expense as follows:

(in millions)

 

 

 

 

Year

 

Amount

 

2020

 

$

60

 

2021

 

 

64

 

2022

 

 

68

 

2023

 

 

69

 

2024

 

 

71

 

Thereafter

 

 

247

 

Total

 

$

579