Quarterly report pursuant to Section 13 or 15(d)

Goodwill

v3.23.3
Goodwill
 9 Months Ended
Sep. 30, 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, 2022 $ 679,739  $ 318,675  $ 998,414 
Foreign currency translation —  (33) (33)
Balance as of September 30, 2023 $ 679,739  $ 318,642  $ 998,381 
As part of the annual goodwill impairment analysis, the Company will perform a quantitative goodwill impairment evaluation for each reporting unit as of October 31, 2023. As a result of the segment change described in Note 18—Segment Information and a corresponding adjustment to the composition of reporting units, as well as lower revenue and profits in 2023 compared to prior years in the Envestnet Data & Analytics segment, the Envestnet Data & Analytics reporting unit's goodwill balance may be considered at risk for future impairment. Based on the results of this assessment, if the carrying value of the reporting unit exceeds its fair value, it could result in the recognition of an impairment of goodwill in the fourth quarter of 2023, and such impairment could be material.