Donnelley Financial Solutions, Inc. Goodwill & Intangibles Disclosure
Note 4. Goodwill and Other Intangible Assets, net
Goodwill—The goodwill balances by reportable segment were as follows:
|
Gross book |
|
|
Accumulated |
|
|
Net book |
|
|
Foreign |
|
|
Net book |
|
|||||
Capital Markets - Software Solutions |
$ |
100.1 |
|
|
$ |
— |
|
|
$ |
100.1 |
|
|
$ |
(0.1 |
) |
|
$ |
100.0 |
|
Capital Markets - Compliance and Communications Management |
|
252.7 |
|
|
|
— |
|
|
|
252.7 |
|
|
|
0.1 |
|
|
|
252.8 |
|
Investment Companies - Software Solutions |
|
53.0 |
|
|
|
— |
|
|
|
53.0 |
|
|
|
— |
|
|
|
53.0 |
|
Investment Companies - Compliance and Communications Management |
|
40.6 |
|
|
|
(40.6 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total |
$ |
446.4 |
|
|
$ |
(40.6 |
) |
|
$ |
405.8 |
|
|
$ |
— |
|
|
$ |
405.8 |
|
Other Intangible Assets, net—All customer relationships and trade name intangible assets were included in the eBrevia disposition on December 1, 2023, as further described in Note 3, Acquisition and Dispositions. Prior to the second quarter of 2023, the customer relationships intangible asset was amortized over a useful life of 15 years. During the second quarter of 2023, the Company revised its estimate of the remaining useful life of its customer relationships intangible asset from eleven years to two years. Amortization expense for other intangible assets was $2.8 million, $0.9 million and $1.1 million for the years ended December 31, 2023, 2022 and 2021, respectively.
The components of other intangible assets at December 31, 2022 were as follows:
|
December 31, 2022 |
|
|||||||||
|
Gross |
|
|
Accumulated |
|
|
Net Book |
|
|||
Customer relationships |
$ |
10.4 |
|
|
$ |
(2.8 |
) |
|
$ |
7.6 |
|
Trade name |
|
1.0 |
|
|
|
(0.8 |
) |
|
|
0.2 |
|
Total other intangible assets |
$ |
11.4 |
|
|
$ |
(3.6 |
) |
|
$ |
7.8 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2023 | Feb 20, 2024 | Showing above |
| 2022 | Feb 21, 2023 | |
| 2021 | Feb 22, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 26, 2020 | |
| 2018 | Feb 27, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Feb 28, 2017 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.