Goodwill, net

6 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

The following tables provide a reconciliation of Goodwill, net reported on the Condensed Consolidated Statement of Financial Position and Consolidated Statement of Financial Position as of June 30, 2024 and December 31, 2023, respectively.


(Dollars in Thousands)	Strategic Alternatives As of June 30, 2024		Wealth Management As of June 30, 2024		Total

Beginning Balance
Gross goodwill	$	90,480	$	321,154	$	411,634

Net goodwill:	$	90,480	$	321,154	$	411,634

Goodwill acquired during the period	$	—	$	32,317	$	32,317


Currency translation and other adjustments	(1,454)		(1,500)		(2,954)
	$	(1,454)	$	30,817	$	29,363
Ending Balance
Gross goodwill	$	89,026	$	351,971	$	440,997

Net goodwill	$	89,026	$	351,971	$	440,997


(Dollars in Thousands)	Strategic Alternatives As of December 31, 2023				Wealth Management As of December 31, 2023		Total

Beginning Balance
Gross goodwill	$	232,429	$	—	$	298,118	$	530,547

Net goodwill:	$	232,429			$	298,118	$	530,547

Goodwill acquired during the period	$	—			$	18,972	$	18,972
Impairment charges	(153,859)				—		(153,859)

Currency translation and other adjustments	11,910		—		4,064		15,974
	$	(141,949)			$	23,036	$	(118,913)
Ending Balance
Gross goodwill	$	90,480			$	321,154	$	411,634
Net goodwill	$	90,480			$	321,154	$	411,634

During the three and six months ended June 30, 2024, no triggering events were identified, and no impairment charge was recognized on goodwill from acquisitions.

During the year ended December 31, 2023, the Company evaluated as of September 30, 2023 whether circumstances existed, indicating that the fair value of its reporting units may have declined to an amount lower than the carrying value of goodwill recorded on its Consolidated Statement of Position as of that date. The Company considered a variety of factors, including the impact of prevailing market conditions, persistently high interest rates and uncertainties caused by inflation and certain world events as well as the recent actions taken by the Company to restructure and reposition certain of the businesses within its reporting units. Based on the evaluation of these factors, the Company concluded that triggering events had occurred during the period that required the Company to assess whether the goodwill allocated to its Strategic Alternatives segment was impaired. Accordingly, the Company performed a goodwill impairment test, which compared the estimated fair value of the Strategic Alternatives reporting unit to its carrying value. The Company utilized the discounted cash flow method under the income approach and the Guideline Public Company Method (“GPCM”) under the market approach, in equal weightings, in determining a fair value for the reporting unit. The results of the impairment test performed at September 30, 2023 indicated that the carrying value of the Strategic Alternatives

reporting unit exceeded its estimated fair value by $153.6 million. Consequently, the Company recognized a goodwill impairment charge for this amount.

The assumptions used in the discounted cash flow analyses require significant judgment, including judgment about appropriate growth rates and the amount and timing of expected future cash flows. The Company’s forecasted cash flows were based on its current assessment of the markets and on assumed growth rates expected as of the measurement date. The key assumptions used in the cash flows were revenue growth rates, operating expenses, gross margins, and discount rates that appropriately reflect the risks inherent in the cash flow streams. Under the GPCM approach, the significant assumptions include the consideration of stock price and financial metrics from guideline companies.

The Company believes that its procedures for estimating the fair value of the reporting units are reasonable and consistent with assumptions that would be used by other marketplace participants. However, such assumptions are inherently uncertain, and a change in assumptions could change the estimated fair value of our reporting units. Future impairments of our reporting units could be required, which could be material to the consolidated financial statements.