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Goodwill and Intangible Assets
 9 Months Ended
Sep. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
The following table presents the changes in goodwill for the nine months ended September 30, 2020 and 2019 (in millions):
Quant & SolutionsAlternativesLiquid AlphaTotal
Goodwill$22.1 $153.1 $133.3 $308.5 
Accumulated impairment(1.8)(5.0)(27.1)(33.9)
December 31, 2019$20.3 $148.1 $106.2 $274.6 
Additions— — — — 
Impairments— — (16.4)(16.4)
Disposals— — — — 
  Decrease from reclassification to assets held
  for sale(1)
— — (76.1)(76.1)
Goodwill22.1 153.1 57.2 232.4 
Accumulated impairment(1.8)(5.0)(43.5)(50.3)
September 30, 2020$20.3 $148.1 $13.7 $182.1 
(1) In connection with the pending divestiture of Barrow Hanley, the Company assigned $76.1 million of goodwill to “Affiliate Assets held for sale” in the Condensed Consolidated Balance Sheet as of September 30, 2020. See Note 3, Divestitures and Assets and Liabilities Held for Sale, in these Notes for additional information.
Quant & SolutionsAlternativesLiquid AlphaTotal
Goodwill$22.1 $153.1 $133.3 $308.5 
Accumulated impairment(1.8)(5.0)(27.1)(33.9)
December 31, 2018$20.3 $148.1 $106.2 $274.6 
Additions— — — — 
Impairments— — — — 
Disposals— — — — 
Goodwill22.1 153.1 133.3 308.5 
Accumulated impairment(1.8)(5.0)(27.1)(33.9)
September 30, 2019$20.3 $148.1 $106.2 $274.6 
The 2019 annual impairment assessment determined that no impairment existed at the annual assessment date. Due to the decline in the Company’s assets under management for the three months ended March 31, 2020, management determined that an interim impairment assessment was necessary as of March 31, 2020.
In the first quarter of 2020, the Company performed a quantitative impairment test for Copper Rock reporting unit which was included within the Liquid Alpha segment prior to its disposition. The quantitative impairment test concluded that the fair value of the reporting unit did not exceed its carrying value. Accordingly, the Company recognized a goodwill impairment charge of $16.4 million for the three months ended March 31, 2020. No goodwill
impairment charges were recognized for the three months ended September 30, 2020 and the Company recognized a goodwill impairment charge of $16.4 million for the nine months ended September 30, 2020.
The fair value of the reporting unit was estimated using the income approach, which calculates the fair value based on the present value of estimated future cash flows. Cash flow projections are based on management’s estimates of Assets Under Management (“AUM”) growth rates, product mix and effective fee rates, taking into consideration industry and market conditions. The discount rates used are based on the weighted-average cost of capital adjusted for the relevant risk associated with business-specific characteristics. The Company’s quantitative impairment analysis at March 31, 2020 incorporated revised forecasts that took into account the market disruptions during the quarter and its impact on the results in future periods. Given the significant level of uncertainty that currently exists, management also considered alternative scenarios for market and reporting unit performance over the next several years. If the Company’s assets under management are further impacted by the global economic conditions caused by COVID-19, such as adverse and significant declines in the value of global financial markets, additional impairments of goodwill or intangible assets are possible in future periods.
The following table presents the change in definite-lived acquired intangible assets comprised of client relationships for the nine months ended September 30, 2020 and 2019 (in millions):
 Gross
Book Value		Accumulated
Amortization &
Impairment		Net Book
Value
December 31, 2019$108.3 $(44.2)$64.1 
Additions— — — 
Amortization— (5.1)(5.1)
Disposals— — — 
September 30, 2020$108.3 $(49.3)$59.0 
 Gross
Book Value		Accumulated
Amortization &
Impairment		Net Book
Value
December 31, 2018$108.3 $(37.6)$70.7 
Additions— — — 
Amortization— (4.9)(4.9)
Disposals— — — 
September 30, 2019$108.3 $(42.5)$65.8 
The Company’s definite-lived acquired intangibles are amortized over their expected useful lives. As of September 30, 2020, these assets were being amortized over remaining useful lives of three to nine years. The Company recorded amortization expense of $1.6 million and $1.6 million for the three months ended September 30, 2020 and 2019, respectively. The Company recorded amortization expense of $5.1 million and $4.9 million for the nine months ended months ended September 30, 2020 and 2019, respectively.
The Company also acquired a $1.0 million indefinite-lived intangible trade name in the acquisition of Landmark, included in acquired intangibles, net, on the Condensed Consolidated Balance Sheets at September 30, 2020 and 2019.
The 2019 annual impairment assessment of definite and indefinite-lived intangible assets determined that no impairment existed. Due to the decline in the Company’s assets under management in the three months ended March 31, 2020, the Company assessed definite and indefinite-lived intangible assets for possible impairment. For indefinite-lived intangible assets, the Company performed a qualitative assessment and determined that it was more likely than not that the indefinite-lived intangible asset was not impaired. For definite-lived intangible assets, no events or changes in circumstances indicated that the carrying amount of these assets may not be recoverable. As such, no impairment charges were determined for both the definite and indefinite-lived intangible assets. No impairment charges were determined for the definite and indefinite-lived intangible assets for the three months ended September 30, 2020.
The Company estimates that its consolidated annual amortization expense, assuming no useful life changes or additional investments in new or existing Affiliates, for each of the next five fiscal years is as follows (in millions):
Year Ending December 31,
2020 (excluding the nine months ended September 30, 2020)
$1.6 
20216.4 
20226.5 
20236.4 
20246.4 
Thereafter31.7 
Total$59.0