XML 30 R17.htm IDEA: XBRL DOCUMENT
v3.20.2

Goodwill and Acquired Client Relationships | 9 Months Ended
--- | ---
Sep. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Acquired Client Relationships | 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 |  | (11.0) |
Other |  | (1.9) |
Balance, as of September 30, 2020 |  | $ | 2,638.8 |
As of September 30, 2020, the Company completed its annual impairment assessment on goodwill and no impairment was indicated.
| 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 | — |  |  | (62.7) |  |  | (62.7) |  |  | (70.7) |  |  | (133.4) |
Foreign currency translation | (3.2) |  |  | 1.7 |  |  | (1.5) |  |  | (11.9) |  |  | (13.4) |
Transfers(1) | (85.7) |  |  | 85.7 |  |  | — |  |  | — |  |  | — |
Balance, as of September 30, 2020 | $ | 1,159.9 |  |  | $ | (1,014.3) |  |  | $ | 145.6 |  |  | $ | 889.6 |  |  | $ | 1,035.2 |
(1)Transfers include acquired client relationships at Affiliates that were deconsolidated during the period. 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 $21.1 million and $72.0 million for the three and nine months ended September 30, 2019, respectively, and $7.0 million, and $48.2 million for the three and nine months ended September 30, 2020, respectively. Based on relationships existing as of September 30, 2020, the Company estimates that its consolidated amortization expense will be approximately $10 million for the remainder of 2020, approximately $30 million in each of 2021, 2022 and 2023, approximately $20 million in 2024 and approximately $10 million in 2025. In the second quarter of 2020, the Company agreed with a consolidated Affiliate to strategically reposition their business and to sell its equity interest in the Affiliate. 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 of the Affiliate’s acquired client relationships to zero as of June 30, 2020. In July 2020, the Company sold its interest in the Affiliate and the Company recorded no significant gain or loss on the transaction. In the third quarter of 2020, the Company completed an impairment assessment of the indefinite-lived acquired client relationships at one of its Affiliates, and determined that the fair value of the asset had declined below its carrying value. Accordingly, the Company recorded an expense in Intangible amortization and impairments of $12.5 million attributable to the controlling interest ($14.0 million in aggregate) to reduce the carrying value of the asset to fair value. The decline in the fair value was a result of a projected decline in assets under management that decreased the forecasted revenue associated with the asset. The fair value of the asset was determined using a discounted cash flow analysis, a level 3 fair value measurement that included a projected growth rate of (14)% for assets under management, discount rate of 15% for asset based fees, and a market participant tax rate of 25%. In addition, the Company recorded an expense in Intangible amortization and impairments of $7.4 million attributable to the controlling interest ($10.9 million in aggregate) to reduce the carrying value of an indefinite-lived acquired client relationship to zero due to the closure of one of its Affiliate’s retail investment products. As of September 30, 2020, no other impairments of indefinite-lived acquired client relationships were indicated. 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.

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration