Envestnet, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets

Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2016

Goodwill and Intangible Assets

Goodwill and Intangible Assets

6.Goodwill and Intangible Assets

Changes in the carrying amount of goodwill by segment were as follows:


	Envestnet		Envestnet \| Yodlee		Total
Balance at December 31, 2015	$	135,224	$	286,049	$	421,273
FinaConnect acquisition		3,617		—		3,617
Purchase accounting adjustments - FinaConnect		(230)		—		(230)
Purchase accounting adjustments - Yodlee		—		(1,322)		(1,322)
Purchase accounting adjustments - Castle Rock		112		—		112
Balance at June 30, 2016	$	138,723	$	284,727	$	423,450

Intangible assets consist of the following:


					June 30, 2016						December 31, 2015
					Gross				Net		Gross				Net
					Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
	Useful Life				Amount		Amortization		Amount		Amount		Amortization		Amount
Customer lists	4	-	12	years	$	261,710	$	(48,147)	$	213,563	$	257,410	$	(33,668)	$	223,742
Backlog			4	years		11,000		(3,580)		7,420		11,000		(703)		10,297
Proprietary technologies	2.5	-	8	years		54,728		(15,006)		39,722		53,928		(9,833)		44,095
Trade names	2	-	6	years		17,015		(3,741)		13,274		16,690		(2,149)		14,541
Total intangible assets					$	344,453	$	(70,474)	$	273,979	$	339,028	$	(46,353)	$	292,675

Amortization expense was as follows:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Amortization expense	$	12,195	$	3,560	$	24,121	$	6,693

Future amortization expense of the intangible assets as of June 30, 2016, is expected to be as follows:


Years ending December 31:
Remainder of 2016	$	23,574
2017		43,059
2018		36,936
2019		33,201
2020		29,239
Thereafter		107,970
	$	273,979

- 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.

+ References + Details