Annual report pursuant to Section 13 and 15(d)

Goodwill

v3.24.0.1
Goodwill
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill Goodwill
 
Changes in the carrying amount of goodwill by reportable segment were as follows:

  Envestnet
Wealth Solutions		 Envestnet
Data & Analytics		 Total
(in thousands)
Balance as of December 31, 2021 $ 636,246  $ 288,908  $ 925,154 
Goodwill recognized from acquisitions 74,080  —  74,080 
Foreign currency translation —  (820) (820)
Balance as of December 31, 2022 710,326  288,088  998,414 
Goodwill impairment —  (191,818) (191,818)
Foreign currency translation —  (33) (33)
Balance as of December 31, 2023 $ 710,326  $ 96,237  $ 806,563 

Goodwill Impairment
Due to lower revenue and profits in the Envestnet Data & Analytics segment in 2023 compared to prior years, the Company performed a quantitative goodwill impairment evaluation as part of the annual goodwill impairment analysis for each reporting unit in the fourth quarter of 2023 utilizing a combination of the discounted cash flow method (income approach) and guideline public company method (market approach). As a result of this impairment test, the carrying value of the Envestnet Data & Analytics reporting unit exceeded its fair value, which resulted in the recognition of a non-cash impairment charge to goodwill of $191.8 million in the consolidated statements of operations for the year ended December 31, 2023.