Envestnet, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Goodwill and Intangible Assets

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets

Goodwill and Intangible Assets

6. Goodwill and Intangible Assets

Changes in the carrying amount of goodwill were as follows:


	Envestnet		Envestnet \| Yodlee		Total
Balance at December 31, 2014	$	104,976	$	—	$	104,976
Upside acquisition		1,507		—		1,507
Finance Logix acquisition		23,492		—		23,492
Castle Rock acquisition		4,969		—		4,969
Yodlee acquisition		—		286,049		286,049
Purchase accounting adjustments - Placemark		280		—		280
Balance at December 31, 2015	$	135,224	$	286,049	$	421,273
FinaConnect acquisition		4,792		—		4,792
Wheelhouse acquisition		—		10,558		10,558
Purchase accounting adjustments - Yodlee		24,613		(28,233)		(3,620)
Purchase accounting adjustments - Castle Rock		(388)		—		(388)
Other		(490)		(189)		(679)
Balance at December 31, 2016	$	163,751	$	268,185	$	431,936

Intangible assets consist of the following:


					At December 31, 2016						At December 31, 2015
					Gross				Net		Gross				Net
	Estimated				Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
	Useful Life				Amount		Amortization		Amount		Amount		Amortization		Amount
Customer lists	4	-	15	years	$	259,490	$	(54,861)	$	204,629	$	257,410	$	(33,668)	$	223,742
Backlog			4	years		11,000		(6,456)		4,544		11,000		(703)		10,297
Proprietary technologies	2	-	8	years		57,770		(20,214)		37,556		53,928		(9,833)		44,095
Trade names	2	-	7	years		25,007		(6,178)		18,829		16,690		(2,149)		14,541
Total intangible assets					$	353,267	$	(87,709)	$	265,558	$	339,028	$	(46,353)	$	292,675

During 2016, the Company wrote off fully amortized intangible assets, specifically customer lists, in the amount of $4,159.

Amortization expense was as follows:


	Year Ended December 31,
	2016		2015		2014
Amortization expense	$	45,515	$	17,636	$	10,642

Future amortization expense of the intangible assets as of December 31, 2016, is expected to be as follows:


Years ending December 31:
2017	$	41,968
2018		35,948
2019		32,361
2020		28,615
2021		20,746
Thereafter		105,920
	$	265,558

- 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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