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Note 8 - Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2024

Goodwill and Intangible Assets Disclosure [Text Block]

Note 8 — Goodwill and Intangible Assets

The following tables present movements in our intangible assets and goodwill during years ended December 31, 2024 and 2023 (in millions):

									*Foreign*
	*December 31,*								*currency*			*December 31,*
	*2023*			*Amortization*			*Additions*		*translation*			*2024*
Indefinite-lived intangible assets:
Investment management agreements	$	2,064.8		$	—		$	—	$	(8.3	)	$	2,056.5
Trademarks		360.0			—			—		—			360.0
Definite-lived intangible assets:
Client relationships		68.6			—			20.5		(3.0	)		86.1
Investment management agreements		—			—			28.0		—			28.0
Trademarks		—			—			5.5		—			5.5
Accumulated amortization		(62.1	)		(3.1	)		—		2.4			(62.8	)
Net intangible assets	$	2,431.3		$	(3.1	)	$	54.0	$	(8.9	)	$	2,473.3

Goodwill	$	1,290.3		$	—		$	276.6	$	(16.5	)	$	1,550.4

										Foreign
	*December 31,*									*currency*			*December 31,*
	*2022*			*Amortization*			*Disposal*			*translation*			*2023*
Indefinite-lived intangible assets:
Investment management agreements	$	2,046.5		$	—		$	—		$	18.3		$	2,064.8
Trademarks		360.0			—			—			—			360.0
Definite-lived intangible assets:
Client relationships		68.9			—			(2.6	)		2.3			68.6
Accumulated amortization		(60.7	)		(1.7	)		2.6			(2.3	)		(62.1	)
Net intangible assets	$	2,414.7		$	(1.7	)	$	—		$	18.3		$	2,431.3

Goodwill	$	1,253.1		$	—		$	—		$	37.2		$	1,290.3

Indefinite-lived intangible assets represent certain investment management contracts where we expect both the renewal of the contracts and the cash flows generated by them to continue indefinitely. Indefinite-lived trademarks relate to the Janus brand, which was acquired as a result of the Merger and subsequently rebranded as Janus Henderson.

Definite-lived intangible assets represent client relationships, investment management contracts and trademarks, which are amortized over their estimated lives using the straight-line method. Definite-lived trademarks were acquired as a result of the 2024 acquisition of VPC. The remaining estimated weighted-average useful life of definite-lived client relationships, investment management contracts and trademarks is 6.5 years.

Foreign currency translation movements in the table primarily relate to the translation of the intangible assets and goodwill balances denominated in non-USD currencies to our functional and presentational currency of USD using the closing foreign currency exchange rate at the end of each reporting period.

Impairment Assessment

Goodwill and indefinite-lived intangible assets are reviewed for impairment annually or more frequently if changes in circumstances indicate that the carrying value may be impaired. We perform our annual impairment assessment of goodwill and indefinite-lived intangible assets as of October 1 of each year by performing a qualitative impairment (step 0) test to determine if it is necessary to perform a quantitative impairment test. To assess our goodwill balance, our qualitative impairment test is inclusive of consideration of macroeconomic conditions along with performing a quantitative calculation, to estimate the enterprise value of the reporting unit, under a market value approach, and compared it to the carrying value of the reporting unit. The results of the assessment revealed it is more likely than not that the fair value estimate of the reporting unit was greater than the carrying value. The most significant inputs into the estimated enterprise value were our stock price and an assumed control premium, which required significant judgment.

We also assessed our indefinite-lived intangible assets as part of our annual impairment assessment. We used a qualitative approach to determine the likelihood of impairment, with AUM being the focus of the assessment. The results of the indefinite-lived intangible assessment revealed it is more likely than not that the fair values of our intangible assets exceeded their carrying values; no impairment was recorded.

Our definite-lived intangible assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. There were no events or changes in circumstances that would have a triggered an assessment of the definite-lived intangibles assets.

Future Amortization

Expected future amortization expense related to definite-lived intangible assets is summarized below (in millions):

Future amortization:	*Amount*
2025	$	11.1
2026		11.1
2027		11.1
2028		8.9
2029		2.6
Thereafter		12.0
Total	$	56.8