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

Quarterly report pursuant to Section 13 or 15(d)

Goodwill & Intangible Assets, Net

Goodwill & Intangible Assets, Net

9 Months Ended

Sep. 30, 2017

Goodwill & Intangible Assets, Net

Goodwill & Intangible Assets, Net

7.Goodwill & Intangible Assets, Net

Changes in the carrying amount of goodwill were as follows:


	Envestnet		Envestnet \| Yodlee		Total
Balance at December 31, 2016	$	163,751	$	268,185	$	431,936
Purchase accounting adjustments - Wheelhouse		—		457		457
Foreign currency translation		—		353		353
Balance at September 30, 2017	$	163,751	$	268,995	$	432,746

Intangible assets, net consist of the following:


					September 30, 2017						December 31, 2016
					Gross				Net		Gross				Net
	Estimated				Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
	Useful Life				Amount		Amortization		Amount		Amount		Amortization		Amount
Customer lists	4	-	15	years	$	259,350	$	(72,743)	$	186,607	$	259,490	$	(54,861)	$	204,629
Proprietary technologies	2	-	8	years		57,328		(27,979)		29,349		57,770		(20,214)		37,556
Trade names	2	-	7	years		24,889		(8,766)		16,123		25,007		(6,178)		18,829
Backlog			4	years		11,000		(9,554)		1,446		11,000		(6,456)		4,544
Total intangible assets					$	352,567	$	(119,042)	$	233,525	$	353,267	$	(87,709)	$	265,558

Amortization expense was as follows:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
Amortization expense	$	10,377	$	12,035	$	31,333	$	36,156

Future amortization expense of the intangible assets as of September 30, 2017, is expected to be as follows:


Years ending December 31:
Remainder of 2017	$	10,232
2018		35,657
2019		32,038
2020		28,344
2021		20,638
Thereafter		106,616
	$	233,525

- 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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