Goodwill and Acquired Intangible Assets, Net

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Acquired Intangible Assets, Net

Note 6: Goodwill and Acquired Intangible Assets, Net

Goodwill

The following table presents goodwill recorded on our consolidated balance sheets (in thousands):

	Total
Balance as of December 31, 2019	$	473,833
Acquired	63,737
Purchase accounting adjustments	(666)
Impairment	(270,625)
Balance as of December 31, 2020	266,279
Balance as of December 31, 2021	266,279
Balance as of December 31, 2022	$	266,279

Beginning in March 2020, the COVID-19 pandemic had a significant negative impact on the U.S. and global economy and caused substantial disruption in the U.S. and global securities markets, and as a result, negatively impacted certain key business drivers, such as client asset levels and interest rates. These macroeconomic and Company-specific factors, in totality, served as a triggering event that resulted in the testing of goodwill for potential impairment. As a result of our quantitative impairment test described in “Note 2—Summary of Significant Accounting Policies,” we recorded a $270.6 million goodwill impairment in the first quarter of 2020. No incremental impairments were recognized as of our annual impairment tests performed on November 30, 2022, 2021, and 2020.

Acquired Intangible Assets, Net

Acquired intangible assets, net, consisted of the following (in thousands):

	December 31, 2022							December 31, 2021
	Weighted average amortization period (years)	Gross carrying amount		Accumulated amortization		Net		Gross carrying amount		Accumulated amortization		Net
Definite-lived intangible assets:
Financial professional relationships	13.2	$	318,700	$	(130,969)	$	187,731	$	318,700	$	(111,916)	$	206,784
Client relationships	12.9	74,532		(10,306)		64,226		65,573		(5,729)		59,844
Sponsor relationships	10.9	17,200		(6,630)		10,570		17,200		(5,655)		11,545
CPA firm relationships	12.5	4,070		(678)		3,392		4,070		(407)		3,663
Trade name	0.5	3,100		(3,017)		83		3,100		(2,379)		721
Technology	0.0	2,980		(2,980)		—		2,980		(2,852)		128
Curriculum	0.0	900		(900)		—		900		(796)		104
Total acquired intangible assets, net		$	421,482	$	(155,480)	$	266,002	$	412,523	$	(129,734)	$	282,789

Expected amortization of definite-lived intangible assets held as of December 31, 2022 was as follows (in thousands):

2023	$	24,845
2024	24,286
2025	23,606
2026	22,985
2027	22,417
Thereafter	147,863
Total	$	266,002