XML 39 R20.htm IDEA: XBRL DOCUMENT v3.6.0.2
Goodwill and Acquired Client Relationships
 12 Months Ended
Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Acquired Client Relationships
Goodwill and Acquired Client Relationships
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, 2014
 
$
1,159.1

 
$
1,125.3

 
$
368.4

 
$
2,652.8

Goodwill acquired
 
9.2

 
—

 
55.1

 
64.3

Foreign currency translation
 
(27.0
)
 
(5.8
)
 
(15.9
)
 
(48.7
)
Balance, as of December 31, 2015
 
$
1,141.3

 
$
1,119.5

 
$
407.6

 
$
2,668.4

Goodwill acquired
 
—

 
—

 
—

 
—

Foreign currency translation
 
(5.1
)
 
(37.0
)
 
1.8

 
(40.3
)
Balance, as of December 31, 2016
 
$
1,136.2

 
$
1,082.5

 
$
409.4

 
$
2,628.1



During 2015 and 2016, the Company completed impairment assessments on its goodwill and no impairments were indicated.  Only a substantial decline in the fair value of its reporting units would result in an indication of impairment.

 
 
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, 2014
 
$
1,255.1

 
$
(565.0
)
 
$
690.1

 
$
1,088.3

 
$
1,778.4

New Investments
 
52.5

 
—

 
52.5

 
—

 
52.5

Intangible amortization and impairments
 
—

 
(115.4
)
 
(115.4
)
 
—

 
(115.4
)
Foreign currency translation
 
(5.8
)
 
—

 
(5.8
)
 
(23.3
)
 
(29.1
)
Balance, as of December 31, 2015
 
$
1,301.8

 
$
(680.4
)
 
$
621.4

 
$
1,065.0

 
$
1,686.4

New Investments
 
—

 
—

 
—

 
—

 
—

Intangible amortization and impairments
 
—

 
(107.7
)
 
(107.7
)
 
(2.5
)
 
(110.2
)
Foreign currency translation
 
(11.8
)
 
—

 
(11.8
)
 
(67.0
)
 
(78.8
)
Balance, as of December 31, 2016
 
$
1,290.0

 
$
(788.1
)
 
$
501.9

 
$
995.5

 
$
1,497.4


Definite-lived acquired client relationships are amortized over their expected useful lives. As of December 31, 2016, these relationships were being amortized over a weighted average life of approximately ten years. The Company recorded amortization expense for these relationships of $115.4 million for the year ended December 31, 2015, as compared to $107.7 million for the year ended December 31, 2016, in Intangible amortization and impairments. Based on relationships existing as of December 31, 2016, the Company estimates that its consolidated annual amortization expense will be approximately $100 million for each of the next five years.
During 2015 and 2016, the Company completed impairment assessments on its definite-lived and indefinite-lived acquired client relationships and no impairments were indicated.
As of December 31, 2016, the fair values of the indefinite-lived intangible assets at two of the Company’s Affiliates, both managers of global equity funds, have recently experienced declines, and further declines in the fair values of these assets could result in future impairments.