Goodwill and Acquired Client Relationships

12 Months Ended

Dec. 31, 2023

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
	2022		2023
Balance, beginning of period	$	2,689.2	$	2,648.7

Veritable Transaction(1)	—		(136.5)
Foreign currency translation	(40.5)		16.5
Other	—		(5.1)
Balance, end of period	$	2,648.7	$	2,523.6

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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, 2021	$	1,364.2	$	(1,028.1)	$	336.1	$	1,630.3	$	1,966.4
Intangible amortization and impairments	—		(49.1)		(49.1)		(2.5)		(51.6)
Foreign currency translation	(9.1)		7.5		(1.6)		(37.2)		(38.8)

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	—		(48.3)		(48.3)		—		(48.3)
Foreign currency translation	0.8		(0.5)		0.3		16.6		16.9
Transfers(2)	(10.3)		10.3		—		(4.1)		(4.1)
Balance, as of December 31, 2023	$	1,260.5	$	(1,051.2)	$	209.3	$	1,603.1	$	1,812.4

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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 in Intangible amortization and impairments for these relationships of $35.7 million, $49.1 million, and $48.3 million for the years ended December 31, 2021, 2022, and 2023, respectively. Based on relationships existing as of December 31, 2023, the Company estimates that its consolidated amortization expense will be approximately $30 million in 2024 and approximately $25 million in each of 2025, 2026, 2027, and 2028. As of December 31, 2023, no impairments of definite-lived acquired client relationships were indicated.

As of December 31, 2023, no impairments of indefinite-lived acquired client relationships were indicated.

Veritable Transaction

In the third quarter of 2023, the Company completed the sale of its equity interest in Veritable, LP (“Veritable”), one of the Company’s consolidated Affiliates, (the “Veritable Transaction”). Pursuant to the terms of the agreement, under which a third party acquired 100% of the outstanding equity interests in Veritable, the Company received $287.4 million in cash, net of transaction costs. 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 gains in the Consolidated Statements of Income.