Intangible Assets

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

(a) Indefinite-lived intangible assets

Indefinite-lived intangible assets are recorded in Intangible Assets, net on the Consolidated Balance Sheets and include rights to manage fund assets ($295.6 million and $347.8 million at December 31, 2022 and 2021, respectively) and trade names ($47.6 million and $53.1 million at December 31, 2022 and 2021, respectively). The decrease in indefinite-lived intangible assets at December 31, 2022 as compared to December 31, 2021 is primarily due to a $31.5 million non-cash impairment of an intangible asset and a $27.2 million decrease in the value of intangible assets denominated in a foreign currency as a result of foreign exchange rate fluctuations.

The uncertainty caused by the Pandemic resulted in management determining that an indicator of potential impairment existed beginning in the first quarter 2020 for the FHL right to manage public fund assets acquired in connection with the 2018 FHL acquisition. Management used an income-based approach to valuation, the discounted cash flow method, in valuing the asset. As a result of continued increases in market interest rates and a decrease in near-term projected cash flows, a discounted cash flow analysis was prepared as of December 31, 2022 and resulted in a non-cash impairment charge of $31.5 million driven by changes in projected cash flows and a higher discount rate as compared to the prior quarter. The non-cash impairment was recorded in Operating Expenses - Intangible Asset Related on the Consolidated Statements of Income. After impairment, as of December 31, 2022, the FHL right to manage public fund assets totaled $150.4 million.

(b) Finite-lived intangible assets

Finite-lived intangible assets primarily represent customer relationships and consist of the following at December 31:


(in thousands)	2022		2021
Cost	$	113,571	$	109,904
Accumulated Amortization	(47,650)		(39,618)
Carrying Value	$	65,921	$	70,286

The decrease in finite-lived intangible assets at December 31, 2022 as compared to December 31, 2021 primarily relates to amortization expense ($12.5 million) and foreign exchange translation ($7.2 million) which was partially offset by intangible assets recorded in connection with the CWH Acquisition ($15.4 million).

Amortization expense for finite-lived intangible assets was $12.5 million, $13.8 million and $13.8 million in 2022, 2021 and 2020, respectively, and was recorded in Operating Expenses - Other on the Consolidated Statements of Income.

Expected aggregate annual amortization expense for finite-lived intangible assets in each of the five succeeding years assuming no new acquisitions or impairments is shown in the table below:


(in thousands)
2023	$	13,246
2024	12,399
2025	12,327
2026	8,745
2027	5,557

Goodwill at December 31, 2022 increased $1.5 million from December 31, 2021 primarily as a result of the CWH Acquisition, partially offset by a $14.8 million decrease related to foreign exchange rate fluctuations on goodwill denominated in a foreign currency.