Goodwill and Acquired Client Relationships

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Acquired Client Relationships

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


	Goodwill
Balance, as of December 31, 2022	$	2,648.7
Veritable Transaction(1)	(136.5)
Foreign currency translation	1.9
Other	(5.1)

Balance, as of September 30, 2023	$	2,509.0

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(1)Represents Goodwill allocated to Veritable as of the closing date, including $3.5 million attributable to the non-controlling interests.

As of September 30, 2023 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, 2022	$	1,355.1	$	(1,069.7)	$	285.4	$	1,590.6	$	1,876.0
Veritable Transaction(1)	(85.1)		57.0		(28.1)		—		(28.1)
Intangible amortization and impairments	—		(37.5)		(37.5)		—		(37.5)
Foreign currency translation	(0.9)		1.1		0.2		3.0		3.2
Transfers(2)	(10.3)		10.3		—		(4.1)		(4.1)
Balance, as of September 30, 2023	$	1,258.8	$	(1,038.8)	$	220.0	$	1,589.5	$	1,809.5

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(1)Represents acquired client relationships attributable to Veritable as of the closing date, including $6.7 million attributable to the non-controlling interests.

(2)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 $12.2 million and $36.9 million for the three and nine months ended September 30, 2022, respectively, and $12.5 million and $37.5 million for the three and nine months ended September 30, 2023, respectively. Based on relationships existing as of September 30, 2023, the Company estimates that its consolidated amortization expense will be approximately $11 million for the remainder of 2023, approximately $30 million in 2024, and approximately $25 million in each of 2025, 2026, 2027, and 2028.

As of September 30, 2023, no impairments of indefinite-lived acquired client relationships were indicated.

Veritable Transaction

In September 2023, the Company completed its previously announced agreement with a third party and Veritable, LP (“Veritable”), one of the Company’s consolidated Affiliates, under which the third party acquired 100% of the outstanding equity interests in Veritable (the “Veritable Transaction”). Pursuant to the terms of the agreement, the Company received $287.4 million in cash, net of transaction costs of $6.6 million. Veritable is included in the Company’s results through the closing date, and the Company’s gain on the transaction was $133.1 million, which is recorded in Affiliate Transaction gain on the Consolidated Statements of Income. The after-tax net cash proceeds from the transaction were $225.1 million.