|
11. Goodwill
Goodwill activity during 2020 and 2019 was as follows:
|
(in millions) |
|
2020 |
|
|
2019 |
|
|
Beginning of year balance |
|
$ |
14,562 |
|
|
$ |
13,526 |
|
|
Acquisition(1) |
|
|
— |
|
|
|
1,044 |
|
|
Goodwill adjustments related to Quellos and other(2) |
|
|
(11 |
) |
|
|
(8 |
) |
|
End of year balance |
|
$ |
14,551 |
|
|
$ |
14,562 |
|
|
(1) |
In 2019, the $1,044 million increase in goodwill resulted from the eFront Transaction. See Note 3, Acquisition, for information on the eFront Transaction. |
|
(2) |
Amounts primarily resulted from a decline related to tax benefits realized from tax-deductible goodwill in excess of book goodwill from the acquisition of the fund-of-funds business of Quellos Group, LLC in October 2007 (the “Quellos Transaction”). Goodwill related to the Quellos Transaction will continue to be reduced in future periods by the amount of tax benefits realized from tax-deductible goodwill in excess of book goodwill from the Quellos Transaction. The balance of the Quellos tax-deductible goodwill in excess of book goodwill was approximately $74 million and $106 million at December 31, 2020 and 2019, respectively. |
BlackRock assessed its goodwill for impairment as of July 31, 2020, 2019 and 2018 and considered such factors as the book value and the market capitalization of the Company. The impairment assessment indicated no impairment charges were required. The Company continues to monitor its book value per share compared with closing prices of its common stock for potential indicators of impairment. At December 31, 2020, the Company’s common stock closed at a market price of $721.54, which exceeded its book value of approximately $231.31 per share.
|