Intangible Assets

12 Months Ended

Dec. 31, 2024

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 ($237.4 million and $304.6 million at December 31, 2024 and 2023, respectively) and trade names ($49.2 million and $50.1 million at December 31, 2024 and 2023, respectively). The decrease in indefinite-lived intangible assets at December 31, 2024 as compared to December 31, 2023 is primarily a result of a $66.3 million non-cash impairment of an indefinite-lived intangible asset recognized at June 30, 2024.

Due to actual results trailing projected results, driven by a combination of lower gross sales and higher redemptions for the quarter ended June 30, 2024 management concluded that an indicator of potential impairment existed for the indefinite-lived intangible asset related to the FHL right to manage public fund assets acquired in connection with the 2018 FHL acquisition. Management used an income-based approach, the discounted cash flow method, to value the asset as of June 30, 2024, which resulted in a non-cash impairment charge of $66.3 million. The non-cash impairment was recorded in Operating Expenses – Intangible Asset Related on the Consolidated Statements of Income. There were no other impairments during the year ended December 31, 2024.

The uncertainty caused by the coronavirus 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, to value 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 recorded in Operating Expenses – Intangible Asset Related on the Consolidated Statements of Income. There were no other impairments during the year ended December 31, 2023.

(b) Finite-lived intangible assets

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


(in thousands)	2024		2023
Cost	$	117,054	$	118,905
Accumulated Amortization	(75,787)		(64,112)
Carrying Value	$	41,267	$	54,793

The decrease in finite-lived intangible assets at December 31, 2024 as compared to December 31, 2023 primarily relates to amortization expense ($13.0 million).

Amortization expense for finite-lived intangible assets was $13.0 million, $13.9 million and $12.5 million in 2024, 2023 and 2022, respectively, and was recorded in Operating Expenses – Intangible Asset Related 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)
2025	$	12,716
2026	9,007
2027	5,707
2028	4,841
2029	2,233

Goodwill at December 31, 2024 decreased $2.3 million from December 31, 2023 primarily as a result of foreign exchange rate fluctuations on goodwill denominated in a foreign currency.