Goodwill and Other Intangibles

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill. Changes by reporting segment in the carrying amount of Goodwill for the years ended December 31, 2023 and 2022, including the effect of foreign exchange rates on non-U.S.-dollar denominated balances, were as follows.

TABLE 83: GOODWILL


(In Millions)	ASSET SERVICING		WEALTH MANAGEMENT		TOTAL
Balance at December 31, 2021	$	625.7	$	80.5	$	706.2
Foreign Exchange Rates	(14.7)		(0.2)		(14.9)
Balance at December 31, 2022	$	611.0	$	80.3	$	691.3

Foreign Exchange Rates	10.9		0.1		11.0
Balance at December 31, 2023	$	621.9	$	80.4	$	702.3

The goodwill impairment test is performed at least annually at the reporting-unit level. The Corporation has determined its reporting units for this purpose to be Asset Servicing and Wealth Management. Goodwill was tested for impairment during the fourth quarter of 2023 using a quantitative assessment in which the estimated fair values of the reporting units are compared to their carrying values. Impairment is deemed to exist if the carrying value of a reporting unit exceeds its estimated fair value. Based upon the quantitative assessments, there were no impairments to goodwill in 2023.

Other Intangible Assets Subject to Amortization. The gross carrying amount and accumulated amortization of other intangible assets subject to amortization as of December 31, 2023 and 2022 were as follows.

TABLE 84: OTHER INTANGIBLE ASSETS


	DECEMBER 31,
(In Millions)	2023		2022
Gross Carrying Amount	$	135.0	$	197.9
Less: Accumulated Amortization	63.4		120.3
Net Book Value	$	71.6	$	77.6

Other intangible assets consist primarily of the value of acquired client relationships and are included in Other Assets on the consolidated balance sheets. Amortization expense related to other intangible assets was $9.3 million, $9.3 million, and $14.8 million for the years ended December 31, 2023, 2022, and 2021, respectively. Amortization for the years 2024, 2025, 2026, 2027, and 2028 is estimated to be $9.5 million, $8.9 million, $8.5 million, $8.3 million, and $7.7 million, respectively.

Capitalized Software. The gross carrying amount and accumulated amortization of capitalized software as of December 31, 2023 and 2022 were as follows.

TABLE 85: CAPITALIZED SOFTWARE


	DECEMBER 31,
(In Millions)	2023		2022
Gross Carrying Amount	$	3,781.7	$	3,479.3
Less: Accumulated Amortization	1,754.2		1,517.4
Net Book Value	$	2,027.5	$	1,961.9

Capitalized software, which is included in Other Assets on the consolidated balance sheets, consists primarily of purchased software, software licenses, and allowable internal costs, including compensation relating to software developed for internal use. Fees paid for the use of software licenses that are not hosted by Northern Trust are expensed as incurred. Amortization expense, which is included in Equipment and Software on the consolidated statements of income, totaled $509.4 million in 2023, $434.2 million in 2022, and $390.1 million in 2021.