Goodwill and Other Intangibles

6 Months Ended

Jun. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

The carrying amounts of goodwill and other intangibles assets, reflecting the effect of foreign exchange rates on non-U.S.-dollar-denominated balances, by reporting segment at June 30, 2018, and December 31, 2017, were as follows:

Table 51: Goodwill by Reporting Segment



(In Millions)	June 30, 2018		December 31, 2017
Corporate & Institutional Services	$	602.4	$	534.5
Wealth Management	71.1		71.1
Total Goodwill	$	673.5	$	605.6

The gross carrying amount and accumulated amortization of other intangible assets subject to amortization as of June 30, 2018 and December 31, 2017, were as follows:

Table 52: Other Intangible Assets



(In Millions)	June 30, 2018		December 31, 2017
Gross Carrying Amount	$	213.7	$	222.7
Less: Accumulated Amortization	64.6		61.3
Net Book Value	$	149.1	$	161.4

Other intangible assets consist primarily of the value of acquired client relationships and are included within other assets in the consolidated balance sheets. Amortization expense related to other intangible assets totaled $4.4 million and $8.9 million for the three and six months ended June 30, 2018, respectively, and $2.3 million and $4.7 million for the three and six months ended June 30, 2017, respectively. Amortization for the remainder of 2018 and for the years 2019, 2020, 2021, and 2022 is estimated to be $8.6 million, $17.0 million, $17.0 million, $14.5 million, and $9.9 million, respectively.

In June 2018, Northern Trust completed its acquisition of Citadel Technology LLC’s Omnium technology platform and associated development resources for a total purchase price of $73.0 million. Goodwill and software intangible assets associated with the acquisition totaled $71.4 million and $1.6 million, respectively.

- 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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