Goodwill and Other Intangibles

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill. Changes by reporting segment in the carrying amount of goodwill for the years ended December 31, 2017 and 2016, including the effect of foreign exchange rates on non-U.S.-dollar-denominated balances, were as follows:

TABLE 73: GOODWILL



(In Millions)	CORPORATE & INSTITUTIONAL SERVICES			WEALTH MANAGEMENT			TOTAL
Balance at December 31, 2015	$	455.1		$	71.3		$	526.4
Goodwill Acquired	11.8			—			11.8
Foreign Exchange Rates	(18.5		)	(0.3		)	(18.8		)

Balance at December 31, 2016	$	448.4		$	71.0		$	519.4
Goodwill Acquired	78.3			—			78.3
Measurement Period Adjustments	(1.3		)	—			(1.3		)
Foreign Exchange Rates	9.1			0.1			9.2

Balance at December 31, 2017	$	534.5		$	71.1		$	605.6

Other Intangible Assets Subject to Amortization. The gross carrying amount and accumulated amortization of other intangible assets subject to amortization as of December 31, 2017 and 2016 were as follows:

TABLE 74: OTHER INTANGIBLE ASSETS



	DECEMBER 31,
(In Millions)	2017		2016
Gross Carrying Amount	$	222.7	$	89.0
Less: Accumulated Amortization	61.3		47.2

Net Book Value	$	161.4	$	41.8

Other intangible assets consist primarily of the value of acquired client relationships and are included within other assets in the consolidated balance sheets. Amortization expense related to other intangible assets was $11.4 million, $8.8 million, and $10.9 million for the years ended December 31, 2017, 2016, and 2015, respectively. Amortization for the years 2018, 2019, 2020, 2021, and 2022 is estimated to be $17.5 million, $17.4 million, $17.3 million, $14.8 million, and $10.1 million respectively.

On October 1, 2017, Northern Trust completed its acquisition of UBS Asset Management’s fund administration servicing business in Luxembourg and Switzerland. The purchase price recorded in connection with the closing of the acquisition, which remains subject to adjustment through May 2018, totaled $190.8 million and was comprised of $188.5 million of cash and $2.3 million of contingent consideration. Goodwill and other intangible assets associated with the acquisition totaled $78.3 million and $126.0 million, respectively.

In May 2016, Northern Trust completed its acquisition of Aviate Global LLP (Aviate), an institutional equity brokerage firm offering market research and execution services, with offices in the U.S., Europe, and the Asia-Pacific region. The purchase price, which is subject to certain performance-related adjustments over a three-year period after the acquisition date, totaled $18.8 million inclusive of contingent consideration. Goodwill and other intangible assets associated with the acquisition totaled $10.5 million and $5.8 million, respectively.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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