| Goodwill and Intangible Assets |
Goodwill and Intangible Assets
Changes in the carrying amount of goodwill were as follows:
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Envestnet Wealth Solutions |
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Envestnet Data & Analytics |
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Total |
Balance at December 31, 2017 |
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$ |
163,751 |
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|
$ |
269,204 |
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$ |
432,955 |
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FolioDynamix acquisition |
|
79,891 |
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|
— |
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|
79,891 |
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Private technology company acquisition |
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— |
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|
6,885 |
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|
6,885 |
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Foreign currency and other |
|
167 |
|
|
(796 |
) |
|
(629 |
) |
Balance at December 31, 2018 |
|
243,809 |
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|
275,293 |
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|
519,102 |
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Private AI company acquisition |
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— |
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|
21,507 |
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|
21,507 |
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PortfolioCenter acquisition |
|
15,587 |
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— |
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|
15,587 |
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PIEtech acquisition |
|
323,951 |
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— |
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|
323,951 |
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Foreign currency and other |
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(100 |
) |
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(197 |
) |
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(297 |
) |
Balance at December 31, 2019 |
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$ |
583,247 |
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$ |
296,603 |
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$ |
879,850 |
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Intangible assets, net consisted of the following:
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December 31, 2019 |
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December 31, 2018 |
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Gross |
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Net |
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Gross |
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Net |
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Estimated |
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Carrying |
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Accumulated |
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Carrying |
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Carrying |
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Accumulated |
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Carrying |
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Useful Life |
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Amount |
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Amortization |
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Amount |
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Amount |
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Amortization |
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Amount |
Customer lists |
7-20 years |
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$ |
591,520 |
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$ |
(148,517 |
) |
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$ |
443,003 |
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$ |
361,020 |
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$ |
(102,077 |
) |
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$ |
258,943 |
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Proprietary technologies |
4-6 years |
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87,714 |
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(44,165 |
) |
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43,549 |
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66,746 |
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(36,151 |
) |
|
30,595 |
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Trade names |
6-7 years |
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33,700 |
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(14,663 |
) |
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19,037 |
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27,990 |
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(12,352 |
) |
|
15,638 |
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Backlog |
N/A |
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— |
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— |
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— |
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11,000 |
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(10,935 |
) |
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65 |
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Total intangible assets |
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$ |
712,934 |
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$ |
(207,345 |
) |
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$ |
505,589 |
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$ |
466,756 |
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$ |
(161,515 |
) |
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$ |
305,241 |
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During 2019 and 2018, the Company retired fully amortized intangible assets for the Envestnet Wealth Solutions segment with a historical cost of $11,520 and $22,177, including proprietary technologies and trade names. During 2019 and 2018, the Company retired fully amortized intangible assets for the Envestnet Data & Analytics segment with a historical cost of $11,100 and $0, including trade names and backlog.
Amortization expense was as follows:
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Year Ended December 31, |
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2019 |
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2018 |
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2017 |
Amortization expense |
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$ |
68,452 |
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$ |
53,856 |
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$ |
42,127 |
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Future amortization expense of the intangible assets as of December 31, 2019, is expected to be as follows:
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Years ending December 31: |
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2020 |
$ |
72,918 |
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2021 |
62,895 |
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2022 |
59,150 |
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2023 |
44,801 |
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2024 |
38,631 |
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Thereafter |
227,194 |
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Total |
$ |
505,589 |
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