Business Combinations, Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 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 six months ended June 30, 2024, we completed one strategic acquisition. This strategic acquisition is presented below.


Acquired Company	Quarter of Acquisition	Country	Primary Segment
SKAE Power Solutions (SKAE)	Q2	United States	Work Dynamics

Aggregate terms of our acquisitions included: (i) cash paid at closing of $39.3 million, (ii) guaranteed deferred consideration of $5.8 million and (iii) contingent earn-out consideration of $11.0 million, payable upon satisfaction of certain performance conditions and which we have initially recorded at their respective acquisition date fair value.

A preliminary allocation of purchase consideration resulted in (i) goodwill of $40.4 million, (ii) identifiable intangibles of $14.9 million and (iii) other net assets (acquired assets less assumed liabilities) of $0.8 million. As of June 30, 2024, we have not completed our analysis to assign fair values to all of the identifiable intangible and tangible assets acquired and, therefore, we may further refine the purchase price allocations for this acquisition during the open measurement period.

During the six months ended June 30, 2024 and 2023, we paid $4.9 million and $22.0 million, respectively, for deferred business acquisition and earn-out obligations for acquisitions completed in prior years.

Earn-Out Payments


($ in millions)	June 30, 2024		December 31, 2023
Number of acquisitions with earn-out payments subject to the achievement of certain performance criteria	13		14
Maximum earn-out payments (undiscounted)	$	113.6	100.0
Short-term earn-out liabilities (fair value)(1)	11.4		12.0
Long-term earn-out liabilities (fair value)(1)	42.3		45.5

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

Assuming the achievement of the applicable performance criteria, we anticipate making these earn-out payments over the next four 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 June 30, 2024 consisted of: (i) goodwill of $4,609.2 million, (ii) identifiable intangibles of $695.6 million amortized over their remaining finite useful lives and (iii) $48.3 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	—		—	40.4	—	—	40.4

Impact of exchange rate movements	(7.6)		(8.5)	(2.3)	—	(0.2)	(18.6)
Balance as of June 30, 2024	$	1,751.7	1,977.9	575.8	247.7	56.1	$	4,609.2


(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	—		18.7	—	—	—	18.7

Impact of exchange rate movements	12.5		14.1	3.8	—	0.6	31.0
Balance as of June 30, 2023	$	1,755.4	1,982.0	536.4	247.7	56.2	$	4,577.7

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	34.2		14.9	49.1
Adjustment for fully amortized intangibles	(15.5)		(9.3)	(24.8)

Impact of exchange rate movements	—		(2.5)	(2.5)
Balance as of June 30, 2024	$	820.5	549.3	$	1,369.8

Accumulated Amortization
Balance as of December 31, 2023	$	(309.8)	(253.2)	$	(563.0)
Amortization expense, net(1)	(55.4)		(32.9)	(88.3)
Adjustment for fully amortized intangibles	15.5		9.3	24.8

Impact of exchange rate movements	—		0.6	0.6
Balance as of June 30, 2024	$	(349.7)	(276.2)	$	(625.9)

Net book value as of June 30, 2024	$	470.8	273.1	$	743.9

(1) Included in this amount for MSRs was $4.2 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 Consolidated Statements of Comprehensive Income.



(in millions)	MSRs		Other Intangibles	Consolidated
Gross Carrying Amount
Balance as of December 31, 2022	$	747.3	557.0	$	1,304.3
Additions, net of adjustments	45.5		5.8	51.3
Adjustment for fully amortized intangibles	(20.2)		(17.4)	(37.6)

Impact of exchange rate movements	—		2.1	2.1
Balance as of June 30, 2023	$	772.6	547.5	$	1,320.1

Accumulated Amortization
Balance as of December 31, 2022	$	(242.2)	(203.6)	$	(445.8)
Amortization expense, net(1)	(54.5)		(35.6)	(90.1)
Adjustment for fully amortized intangibles	20.2		17.4	37.6

Impact of exchange rate movements	—		(0.7)	(0.7)
Balance as of June 30, 2023	$	(276.5)	(222.5)	$	(499.0)

Net book value as of June 30, 2023	$	496.1	325.0	$	821.1

(1) Included in this amount for MSRs was $6.8 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 Consolidated Statements of Comprehensive Income.