Intangible Assets

3 Months Ended

Mar. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Consolidated Affiliates

The following tables present the change in Goodwill and components of Acquired client relationships, net of the Company’s consolidated Affiliates:



	Goodwill
	Institutional		Mutual Fund			High Net Worth		Total
Balance, as of December 31, 2015	$	1,141.3	$	1,119.5		$	407.6	$	2,668.4
Foreign currency translation	5.0		(5.1		)	4.0		3.9
Balance, as of March 31, 2016	$	1,146.3	$	1,114.4		$	411.6	$	2,672.3



	Acquired Client Relationships
	Definite-lived									Indefinite-lived			Total
	Gross Book Value			Accumulated Amortization			Net Book Value			Net Book Value			Net Book Value
Balance, as of December 31, 2015	$	1,301.8		$	(680.4	)	$	621.4		$	1,065.0		$	1,686.4
Intangible amortization and impairments	—			(26.6		)	(26.6		)	—			(26.6		)
Foreign currency translation	(1.8		)	—			(1.8		)	(10.4		)	(12.2		)
Balance, as of March 31, 2016	$	1,300.0		$	(707.0	)	$	593.0		$	1,054.6		$	1,647.6

Definite-lived acquired client relationships are amortized over their expected useful lives. As of March 31, 2016, these relationships were being amortized over a weighted average life of approximately ten years. The Company recognized amortization expense for these relationships of $27.8 million and $26.6 million for the three months ended March 31, 2015 and 2016, respectively. Based on relationships existing as of March 31, 2016, the Company estimates that its consolidated annual amortization expense will be approximately $110 million for each of the next five years.

Equity Method Investments in Affiliates

The Company completed minority investments in Systematica Investments L.P. and Baring Private Equity Asia (“Baring”) on January 4, 2016 for $547.6 million in the aggregate. The Company’s provisional purchase price allocations were measured using a financial model that includes assumptions of expected market performance, net client flows and discount rates. The associated provisional amounts may be revised upon completion of the final valuation. The consideration paid to Baring will be deductible for U.S. tax purposes over a 15-year life.

The intangible assets at the Company’s equity method Affiliates consist of definite-lived and indefinite-lived acquired client relationships and goodwill. As of March 31, 2016, the definite-lived relationships were being amortized over a weighted average life of approximately eleven years. The Company recognized amortization expense for these relationships of $8.8 million and $14.2 million for the three months ended March 31, 2015, and 2016, respectively. Based on relationships existing as of March 31, 2016, the Company estimates the annual amortization expense will be approximately $55 million for each of the next five years.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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