Goodwill and Acquired Client Relationships

6 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Acquired Client Relationships

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



	Goodwill
Balance, as of December 31, 2019	$	2,651.7
Foreign currency translation	(24.1		)
Balance, as of June 30, 2020	$	2,627.6



	Acquired Client Relationships (Net)
	Definite-lived									Indefinite-lived			Total
	Gross Book Value			Accumulated Amortization			Net Book Value			Net Book Value			Net Book Value
Balance, as of December 31, 2019	$	1,248.8		$	(1,039.0	)	$	209.8		$	972.2		$	1,182.0
Intangible amortization and impairments	—			(55.7		)	(55.7		)	(45.8		)	(101.5		)
Foreign currency translation	(7.3		)	4.7			(2.6		)	(25.6		)	(28.2		)
Balance, as of June 30, 2020	$	1,241.5		$	(1,090.0	)	$	151.5		$	900.8		$	1,052.3

Definite-lived acquired client relationships at the Company’s consolidated Affiliates are amortized over their expected period of economic benefit. The Company recorded amortization expense within Intangible amortization and impairments in the Consolidated Statements of Income for these relationships of $21.2 million and $50.9 million for the three and six months ended June 30, 2019, respectively, and $20.6 million, and $41.2 million for the three and six months ended June 30, 2020, respectively. Based on relationships existing as of June 30, 2020, the Company estimates that its consolidated annual amortization expense will be approximately $60 million in 2020, approximately $30 million in each of 2021, 2022 and 2023, and approximately $20 million in 2024.

In the second quarter of 2020, the Company agreed with a consolidated Affiliate to strategically reposition their business and the Company will sell its equity interest in the Affiliate. The transaction is expected to close in the third quarter of 2020. The Company recorded an expense in Intangible amortization and impairments of $32.8 million attributable to the controlling interest ($60.3 million in aggregate) to reduce the carrying value to zero of the Affiliate’s acquired client relationships.

As of June 30, 2020, the estimated fair values of the Company’s indefinite-lived acquired client relationships exceeded their carrying values. If financial markets worsen as a result of the novel coronavirus global pandemic (“COVID-19”) or other factors, the fair values of these assets could drop below their carrying values resulting in future impairments.