Goodwill and Other Intangibles

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill. Changes by reporting segment in the carrying amount of goodwill for the years ended December 31, 2019 and 2018, including the effect of foreign exchange rates on non-U.S.-dollar-denominated balances, were as follows:

TABLE 93: GOODWILL



(In Millions)	CORPORATE & INSTITUTIONAL SERVICES			WEALTH MANAGEMENT		TOTAL
Balance at December 31, 2017	$	534.5		$	71.1	$	605.6
Goodwill Acquired	71.4			—		71.4
Foreign Exchange Rates	(7.7		)	—		(7.7		)

Balance at December 31, 2018	$	598.2		$	71.1	$	669.3
Goodwill Acquired	23.5			—		23.5
Foreign Exchange Rates	4.0			—		4.0

Balance at December 31, 2019	$	625.7		$	71.1	$	696.8

The goodwill impairment test is performed at least annually at the reporting-unit level. The Corporation has determined its reporting units for this purpose to be Corporate & Institutional Services and Wealth Management. Goodwill was tested for impairment during the fourth quarter of 2019 using a quantitative assessment in which the estimated fair values of the reporting units are compared to their carrying values. Impairment is deemed to exist if the carrying value of a reporting unit exceeds its estimated fair value. Based upon the quantitative assessments, there were no impairments to goodwill in 2019.

Other Intangible Assets Subject to Amortization. The gross carrying amount and accumulated amortization of other intangible assets subject to amortization as of December 31, 2019 and 2018 were as follows:

TABLE 94: OTHER INTANGIBLE ASSETS



	DECEMBER 31,
(In Millions)	2019		2018
Gross Carrying Amount	$	207.2	$	211.1
Less: Accumulated Amortization	86.6		72.5

Net Book Value	$	120.6	$	138.6

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 was $16.6 million, $17.4 million, and $11.4 million for the years ended December 31, 2019, 2018, and 2017, respectively. Amortization for the years 2020, 2021, 2022, 2023, and 2024 is estimated to be $16.7 million, $14.3 million, $9.7 million, $9.4 million, and $9.3 million respectively.

In the third quarter of 2019, Northern Trust completed its acquisition of Belvedere Advisors LLC, a provider of digital investment advisory and asset management services. The purchase price recorded in connection with the closing of the acquisition, which is subject to certain performance-related adjustments over a five-year period after the acquisition date, totaled $17.6 million inclusive of contingent consideration. Goodwill and developed technology associated with the transaction totaled $9.3 million and $8.3 million, respectively.

In the first quarter of 2019, Northern Trust completed the purchase accounting related to its acquisition of BEx LLC, a provider of foreign exchange software solutions. The purchase price recorded in connection with the closing of the acquisition totaled $37.9 million. Goodwill and developed technology associated with the acquisition totaled $12.5 million and $25.0 million, respectively.

Since its acquisition of Omnium LLC in 2011, Northern Trust has made various investments in Citadel Technology LLC’s Omnium technology platform. In June 2018, Northern Trust completed its acquisition of such platform, along with associated development resources, for a total purchase price of $73.0 million. Goodwill and incremental developed technology associated with the acquisition in 2018 totaled $71.4 million and $1.6 million, respectively.