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Goodwill and Other Intangible Assets | 12 Months Ended
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Dec. 31, 2017
Goodwill And Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets |
9. | Goodwill and Other Intangible Assets
The following table summarizes the changes in the carrying amount of goodwill for the years ended December 31, 2017 and 2016 (dollars in thousands):
|  |  |  |  |  |  |  |  |  |  |  |  |  | Global |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  | Asia |  |  | Investment |  |  | Development |  |  |  |  |
|  | Americas |  |  | EMEA |  |  | Pacific |  |  | Management |  |  | Services |  |  | Total |
Balance as of December 31, 2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  | $ | 2,260,076 |  |  | $ | 1,172,150 |  |  | $ | 155,875 |  |  | $ | 479,739 |  |  | $ | 86,663 |  |  | $ | 4,154,503 |
Accumulated impairment losses |  |  | (798,290 | ) |  |  | (138,631 | ) |  |  | — |  |  |  | (44,922 | ) |  |  | (86,663 | ) |  |  | (1,068,506 | )
|  |  | 1,461,786 |  |  |  | 1,033,519 |  |  |  | 155,875 |  |  |  | 434,817 |  |  |  | — |  |  |  | 3,085,997 |
Purchase accounting entries related to acquisitions |  |  | 42,080 |  |  |  | 36,929 |  |  |  | (3,922 | ) |  |  | 350 |  |  |  | — |  |  |  | 75,437 |
Foreign exchange movement |  |  | 773 |  |  |  | (161,784 | ) |  |  | (1,247 | ) |  |  | (17,784 | ) |  |  | — |  |  |  | (180,042 | )
Balance as of December 31, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  |  | 2,302,929 |  |  |  | 1,047,295 |  |  |  | 150,706 |  |  |  | 462,305 |  |  |  | 86,663 |  |  |  | 4,049,898 |
Accumulated impairment losses |  |  | (798,290 | ) |  |  | (138,631 | ) |  |  | — |  |  |  | (44,922 | ) |  |  | (86,663 | ) |  |  | (1,068,506 | )
|  |  | 1,504,639 |  |  |  | 908,664 |  |  |  | 150,706 |  |  |  | 417,383 |  |  |  | — |  |  |  | 2,981,392 |
Purchase accounting entries related to acquisitions |  |  | 104,654 |  |  |  | 17,402 |  |  |  | 4,198 |  |  |  | 17,568 |  |  |  | — |  |  |  | 143,822 |
Foreign exchange movement |  |  | 993 |  |  |  | 91,761 |  |  |  | 11,204 |  |  |  | 25,568 |  |  |  | — |  |  |  | 129,526 |
Balance as of December 31, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  |  | 2,408,576 |  |  |  | 1,156,458 |  |  |  | 166,108 |  |  |  | 505,441 |  |  |  | 86,663 |  |  |  | 4,323,246 |
Accumulated impairment losses |  |  | (798,290 | ) |  |  | (138,631 | ) |  |  | — |  |  |  | (44,922 | ) |  |  | (86,663 | ) |  |  | (1,068,506 | )
|  | $ | 1,610,286 |  |  | $ | 1,017,827 |  |  | $ | 166,108 |  |  | $ | 460,519 |  |  | $ | — |  |  | $ | 3,254,740 |
During 2017, we completed 11 in-fill acquisitions, including two leading Software as a Service (SaaS) platforms – one that produces scalable interactive visualization technologies for commercial real estate and one that provides technology solutions for facilities management operations, a healthcare-focused project manager in Australia, a full-service brokerage and management boutique in South Florida, a technology-enabled national boutique commercial real estate finance and consulting firm in the United States, a retail consultancy in France, a majority interest in a Toronto-based investment management business specializing in private infrastructure and private equity investments, a San Francisco-based technology-focused boutique real estate brokerage firm, a project management and design engineering firm operating across the United States, a Washington, D.C.-based retail brokerage operation and a leading technical engineering services provider in Italy. During 2016, we acquired our independent affiliate in Norway, a London-based retail property advisor specializing in the luxury goods retail sector and a leading provider of retail project management, shopping center development and tenant coordination services in the U.S. Our annual assessment of goodwill and other intangible assets deemed to have indefinite lives has historically been completed as of the beginning of the fourth quarter of each year. We performed the 2017, 2016 and 2015 assessments as of October 1. When we performed our required annual goodwill impairment review as of October 1, 2017, 2016 and 2015, we determined that no impairment existed as the estimated fair value of our reporting units was in excess of their carrying value. Other intangible assets totaled $1.4 billion, net of accumulated amortization of $1.0 billion as of December 31, 2017, and $1.4 billion, net of accumulated amortization of $771.7 million, as of December 31, 2017 and 2016, respectively, and are comprised of the following (dollars in thousands):
|  | December 31, |
|  | 2017 |  |  | 2016 |
|  | Gross |  |  |  |  |  |  | Gross |  |  |  |  |
|  | Carrying |  |  | Accumulated |  |  | Carrying |  |  | Accumulated |
|  | Amount |  |  | Amortization |  |  | Amount |  |  | Amortization |
Unamortizable intangible assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Management contracts |  | $ | 90,503 |  |  |  |  |  |  | $ | 101,355 |  |  |  |  |
Trademarks |  |  | 56,800 |  |  |  |  |  |  |  | 56,800 |  |  |  |  |
Trade names |  |  | 16,250 |  |  |  |  |  |  |  | 18,100 |  |  |  |  |
|  | $ | 163,553 |  |  |  |  |  |  | $ | 176,255 |  |  |  |  |
Amortizable intangible assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer relationships |  | $ | 802,597 |  |  | $ | (355,642 | ) |  | $ | 761,290 |  |  | $ | (270,447 | )
Mortgage servicing rights |  |  | 608,757 |  |  |  | (235,626 | ) |  |  | 501,087 |  |  |  | (180,563 | )
Trademarks/Trade name |  |  | 321,406 |  |  |  | (64,866 | ) |  |  | 306,559 |  |  |  | (46,837 | )
Management contracts |  |  | 203,291 |  |  |  | (122,450 | ) |  |  | 177,014 |  |  |  | (99,733 | )
Covenant not to compete |  |  | 73,750 |  |  |  | (57,358 | ) |  |  | 73,750 |  |  |  | (32,777 | )
Other |  |  | 226,496 |  |  |  | (164,796 | ) |  |  | 186,757 |  |  |  | (141,316 | )
|  | $ | 2,236,297 |  |  | $ | (1,000,738 | ) |  | $ | 2,006,457 |  |  | $ | (771,673 | )
Total intangible assets |  | $ | 2,399,850 |  |  | $ | (1,000,738 | ) |  | $ | 2,182,712 |  |  | $ | (771,673 | )
Unamortizable intangible assets include management contracts identified as a result of the REIM Acquisitions relating to relationships with open-end funds, a trademark separately identified as a result of the 2001 Acquisition and a trade name separately identified in connection with the REIM Acquisitions, which represents the Clarion Partners trade name in the U.S. These intangible assets have indefinite useful lives and accordingly are not being amortized. Customer relationships relate to existing relationships mainly in the brokerage, occupier outsourcing and property management lines of business that were primarily identified in the Trammell Crow Company Acquisition, the Norland Acquisition and the GWS Acquisition. These intangible assets are being amortized over useful lives of up to 20 years. Mortgage servicing rights represent the carrying value of servicing assets in our mortgage brokerage line of business in the U.S. The mortgage servicing rights are being amortized over the estimated period that net servicing income is expected to be received, which is typically up to ten years. In connection with the GWS Acquisition, trademarks of approximately $280 million were separately identified and are being amortized over 20 years. Management contracts consist primarily of asset management contracts relating to relationships with closed-end funds and separate accounts in the U.S., Europe and Asia that were separately identified as a result of the REIM Acquisitions. These management contracts are being amortized over useful lives of up to 13 years. A covenant not to compete of approximately $74 million was separately identified in connection with the GWS Acquisition and is being amortized over three years. Other amortizable intangible assets mainly represent transition costs, which get amortized as a reduction of revenue over the life of the associated contract. Amortization expense related to intangible assets was $238.7 million, $211.7 million and $175.3 million for the years ended December 31, 2017, 2016 and 2015, respectively. The estimated annual amortization expense for each of the years ending December 31, 2018 through December 31, 2022 approximates $216.2 million, $165.0 million, $138.2 million, $117.0 million and $107.1 million, respectively.

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- 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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