| Goodwill and Intangible Assets, Net |
Goodwill and Intangible Assets, Net
Changes in the carrying amount of goodwill were as follows:
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| |
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Envestnet
Wealth Solutions |
|
Envestnet
Data & Analytics |
|
Total |
| Balance at December 31, 2018 |
|
$ |
243,809 |
|
|
$ |
275,293 |
|
|
$ |
519,102 |
|
| Private AI company acquisition |
|
— |
|
|
21,507 |
|
|
21,507 |
|
| PortfolioCenter acquisition |
|
15,587 |
|
|
— |
|
|
15,587 |
|
| PIEtech acquisition |
|
323,951 |
|
|
— |
|
|
323,951 |
|
| Foreign currency and other |
|
(100) |
|
|
(197) |
|
|
(297) |
|
| Balance at December 31, 2019 |
|
583,247 |
|
|
296,603 |
|
|
879,850 |
|
| Private Technology company acquisition |
|
— |
|
|
7,019 |
|
|
7,019 |
|
| Private Cloud Technology company acquisition |
|
10,932 |
|
|
— |
|
|
10,932 |
|
| Private Financial Technology Design company acquisition |
|
9,241 |
|
|
— |
|
|
9,241 |
|
| Foreign currency and other |
|
(70) |
|
|
(199) |
|
|
(269) |
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| Balance at December 31, 2020 |
|
$ |
603,350 |
|
|
$ |
303,423 |
|
|
$ |
906,773 |
|
Intangible assets, net consisted of the following:
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| |
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|
December 31, 2020 |
|
December 31, 2019 |
| |
|
|
Gross |
|
|
|
Net |
|
Gross |
|
|
|
Net |
| |
|
|
Carrying |
|
Accumulated |
|
Carrying |
|
Carrying |
|
Accumulated |
|
Carrying |
| |
|
|
Amount |
|
Amortization |
|
Amount |
|
Amount |
|
Amortization |
|
Amount |
| Customer lists |
|
|
$ |
591,520 |
|
|
$ |
(198,555) |
|
|
$ |
392,965 |
|
|
$ |
591,520 |
|
|
$ |
(148,517) |
|
|
$ |
443,003 |
|
| Proprietary technologies |
|
|
54,914 |
|
|
(26,949) |
|
|
27,965 |
|
|
87,714 |
|
|
(44,165) |
|
|
43,549 |
|
| Trade names |
|
|
33,700 |
|
|
(19,589) |
|
|
14,111 |
|
|
33,700 |
|
|
(14,663) |
|
|
19,037 |
|
| Total intangible assets |
|
$ |
680,134 |
|
|
$ |
(245,093) |
|
|
$ |
435,041 |
|
|
$ |
712,934 |
|
|
$ |
(207,345) |
|
|
$ |
505,589 |
|
During 2020 and 2019, the Company retired fully amortized intangible assets for the Envestnet Wealth Solutions segment with a historical cost of $800 and $11,520, respectively, including proprietary technologies and trade names. During 2020 and 2019, the Company retired fully amortized intangible assets for the Envestnet Data & Analytics segment with a historical cost of $35,000 and $11,100, respectively, including proprietary technology, trade names and backlog.
Amortization expense was as follows:
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Year Ended December 31, |
| |
|
2020 |
|
2019 |
|
2018 |
| Amortization expense |
|
$ |
73,559 |
|
|
$ |
68,452 |
|
|
$ |
53,856 |
|
Future amortization expense of the Company's intangible assets as of December 31, 2020, is expected to be as follows:
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|
|
|
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| Years ending December 31: |
|
| 2021 |
$ |
63,645 |
|
| 2022 |
59,900 |
|
| 2023 |
45,551 |
|
| 2024 |
38,751 |
|
| 2025 |
35,485 |
|
| Thereafter |
191,709 |
|
| Total |
$ |
435,041 |
|
|