Business Combinations, Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2024

BUSINESS COMBINATIONS, GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract]

Business Combinations, Goodwill and Other Intangible Assets

BUSINESS COMBINATIONS, GOODWILL AND OTHER INTANGIBLE ASSETS

2024 Business Combinations Activity

During the three months ended March 31, 2024, there were no strategic acquisitions. We paid $3.1 million for deferred business acquisition and earn-out obligations for acquisitions completed in prior years.

2023 Business Combinations Activity

During the three months ended March 31, 2023, we completed no strategic acquisitions. We paid $13.8 million for deferred business acquisition and earn-out obligations for acquisitions completed in prior years.

Earn-Out Payments


($ in millions)	March 31, 2024		December 31, 2023
Number of acquisitions with earn-out payments subject to the achievement of certain performance criteria	12		14
Maximum earn-out payments (undiscounted)	$	99.7	100.0
Short-term earn-out liabilities (fair value)(1)	6.2		12.0
Long-term earn-out liabilities (fair value)(1)	40.5		45.5

(1) Included in Other current and Other long-term liabilities on the Condensed Consolidated Balance Sheets.

Assuming the achievement of the applicable performance criteria, we anticipate making these earn-out payments over the next five years. Refer to Note 8, Fair Value Measurements, and Note 11, Restructuring and Acquisition Charges, for additional discussion of our earn-out liabilities.

Goodwill and Other Intangible Assets

Goodwill and unamortized intangibles as of March 31, 2024 consisted of: (1) goodwill of $4,569.1 million, (2) identifiable intangibles of $714.0 million amortized over their remaining finite useful lives and (3) $48.6 million of identifiable intangibles with indefinite useful lives that are not amortized. Notable portions of our goodwill and unamortized intangibles are denominated in currencies other than the U.S. dollar, which means a portion of the movements in the reported book value of these balances is attributable to movements in foreign currency exchange rates.

The following table details, by reporting segment, movements in goodwill.


(in millions)	Markets Advisory		Capital Markets	Work Dynamics	JLL Technologies	LaSalle	Consolidated
Balance as of December 31, 2023	$	1,759.3	1,986.4	537.7	247.7	56.3	$	4,587.4
Additions, net of adjustments	—		—	—	—	—	—

Impact of exchange rate movements	(7.5)		(8.3)	(2.3)	—	(0.2)	(18.3)
Balance as of March 31, 2024	$	1,751.8	1,978.1	535.4	247.7	56.1	$	4,569.1


(in millions)	Markets Advisory		Capital Markets	Work Dynamics	JLL Technologies	LaSalle	Consolidated
Balance as of December 31, 2022	$	1,742.9	1,949.2	532.6	247.7	55.6	$	4,528.0
Additions, net of adjustments	—		—	—	—	—	—

Impact of exchange rate movements	6.5		7.2	1.9	—	0.3	15.9
Balance as of March 31, 2023	$	1,749.4	1,956.4	534.5	247.7	55.9	$	4,543.9

The following tables detail, by intangible type, movements in the gross carrying amount and accumulated amortization of our identifiable intangibles.



(in millions)	MSRs		Other Intangibles	Consolidated
Gross Carrying Amount
Balance as of December 31, 2023	$	801.8	546.2	$	1,348.0
Additions, net of adjustments	21.9		—	21.9
Adjustment for fully amortized intangibles	(5.3)		(9.2)	(14.5)

Impact of exchange rate movements	—		(2.2)	(2.2)
Balance as of March 31, 2024	$	818.4	534.8	$	1,353.2

Accumulated Amortization
Balance as of December 31, 2023	$	(309.8)	(253.2)	$	(563.0)
Amortization expense, net(1)	(26.5)		(16.2)	(42.7)
Adjustment for fully amortized intangibles	5.3		9.2	14.5

Impact of exchange rate movements	—		0.6	0.6
Balance as of March 31, 2024	$	(331.0)	(259.6)	$	(590.6)

Net book value as of March 31, 2024	$	487.4	275.2	$	762.6

(1) Included in this amount for MSRs was $1.6 million relating to write-offs due to prepayments of sold warehouse receivables for which we retained the servicing rights. Amortization of MSRs is included in Revenue within the Condensed Consolidated Statements of Comprehensive Income.



(in millions)	MSRs		Other Intangibles	Total
Gross Carrying Amount
Balance as of December 31, 2022	$	747.3	557.0	$	1,304.3
Additions, net of adjustments	17.3		—	17.3
Adjustment for fully amortized intangibles	(9.0)		(0.4)	(9.4)

Impact of exchange rate movements	—		1.3	1.3
Balance as of March 31, 2023	$	755.6	557.9	$	1,313.5

Accumulated Amortization
Balance as of December 31, 2022	$	(242.2)	(203.6)	$	(445.8)
Amortization expense, net(1)	(26.1)		(17.5)	(43.6)
Adjustment for fully amortized intangibles	9.0		0.4	9.4

Impact of exchange rate movements	—		(0.4)	(0.4)
Balance as of March 31, 2023	$	(259.3)	(221.1)	$	(480.4)

Net book value as of March 31, 2023	$	496.3	336.8	$	833.1

(1) Included in this amount for MSRs was $2.9 million relating to write-offs due to prepayments of sold warehouse receivables for which we retained the servicing rights. Amortization of MSRs is included in Revenue within the Condensed Consolidated Statements of Comprehensive Income.