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Business Changes and Developments Business Changes and Developments | 12 Months Ended
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Dec. 31, 2019
Business Combinations [Abstract] |
Business Changes and Developments | Business Changes and Developments Business Developments Real Estate Capital Advisory - On April 23, 2018, the Company announced the expansion of its global investment banking platform by establishing a Real Estate Capital Advisory business within its existing Private Capital Advisory L.P. ("PCA") business. This business is focused on primary and secondary transactions for real estate oriented financial sponsors and private equity investors in conjunction with PCA’s existing fund monetization and recapitalization expertise. Certain Real Estate Capital Advisory ("RECA") employees purchased Class R Interests in PCA, at fair value, resulting in an increase to Noncontrolling Interest of $770 on the Company's Consolidated Statement of Financial Condition as of December 31, 2018. See Note 17 for further information. In conjunction with the establishment of the RECA business, the Company hired certain employees and entered into an arrangement with the former employer of these employees, which, among other things, provides for contingent consideration to be paid to the former employer of up to $4,463, based on the completion of certain client engagements. The Company accounted for this transaction as an asset acquisition and has recognized the contingent consideration paid as an expense in Professional Fees on the Company's Consolidated Statements of Operations as the related revenue from the underlying engagements is realized. The Company recognized expenses of $400 and $3,971 pursuant to this arrangement for the years ended December 31, 2019 and 2018, respectively. The contingent consideration was fully paid as of December 31, 2019. The Company is the general partner of PCA. Concurrent with this transaction, the Company performed an assessment under ASC 810, and concluded that PCA remains a VIE following this transaction and determined that the Company is still the primary beneficiary of this VIE. Specifically, the Company's general partner interest provides the Company with the ability to make decisions that significantly impact the economic performance of PCA, while the limited partners do not possess substantive participating rights over PCA. The Company's assessment of the primary beneficiary included assessing which parties have the power to significantly impact the economic performance and the obligation to absorb losses, which could be potentially significant to the entity, or the right to receive benefits from the entity that could be potentially significant. The assets of PCA are not generally available to the Company and the liabilities are generally non-recourse to the Company. Goodwill and Intangible Assets Goodwill associated with the Company's acquisitions is as follows:
| Investment Banking |  | Investment Management |  | Total
Balance at December 31, 2017(1) | $ | 123,308 |  |  | $ | 10,923 |  |  | $ | 134,231 |
Foreign Currency Translation and Other | (2,844 | ) |  | — |  |  | (2,844 | )
Balance at December 31, 2018(1) | 120,464 |  |  | 10,923 |  |  | 131,387 |
Impairment of Goodwill | — |  |  | (2,921 | ) |  | (2,921 | )
Foreign Currency Translation and Other | 2,292 |  |  | — |  |  | 2,292 |
Balance at December 31, 2019(2) | $ | 122,756 |  |  | $ | 8,002 |  |  | $ | 130,758 |
(1) The amount of the Company's goodwill before accumulated impairment losses of $35,607 was $166,994 and $169,838 at December 31, 2018 and 2017, respectively.
(2) | The amount of the Company's goodwill before accumulated impairment losses of $38,528 was $169,286 at December 31, 2019.
Intangible assets associated with the Company's acquisitions are as follows:
| December 31, 2019
| Gross Carrying Amount |  | Accumulated Amortization
| Investment Banking |  | Investment Management |  | Total |  | Investment Banking |  | Investment Management |  | Total
Client Related | $ | — |  |  | $ | 3,830 |  |  | $ | 3,830 |  |  | $ | — |  |  | $ | 2,743 |  |  | $ | 2,743 |
Other | 5,320 |  |  | 445 |  |  | 5,765 |  |  | 4,159 |  |  | 390 |  |  | 4,549 |
Total | $ | 5,320 |  |  | $ | 4,275 |  |  | $ | 9,595 |  |  | $ | 4,159 |  |  | $ | 3,133 |  |  | $ | 7,292 |
| December 31, 2018
| Gross Carrying Amount |  | Accumulated Amortization
| Investment Banking |  | Investment Management |  | Total |  | Investment Banking |  | Investment Management |  | Total
Client Related | $ | 42,000 |  |  | $ | 3,830 |  |  | $ | 45,830 |  |  | $ | 35,356 |  |  | $ | 2,360 |  |  | $ | 37,716 |
Other | 5,320 |  |  | 445 |  |  | 5,765 |  |  | 3,167 |  |  | 334 |  |  | 3,501 |
Total | $ | 47,320 |  |  | $ | 4,275 |  |  | $ | 51,595 |  |  | $ | 38,523 |  |  | $ | 2,694 |  |  | $ | 41,217 |
Expense associated with the amortization of intangible assets was $8,077, $9,199 and $9,793 for the years ended December 31, 2019, 2018 and 2017, respectively. Based on the intangible assets above, as of December 31, 2019, annual amortization of intangibles for each of the next five years is as follows:
2020 | $ | 1,606 |
2021 | $ | 363 |
2022 | $ | 334 |
2023 | $ | — |
2024 | $ | — |
Impairments of Goodwill At November 30, 2019, in accordance with ASC 350, "Intangibles - Goodwill and Other" ("ASC 350"), the Company performed its annual goodwill impairment assessment. The Company concluded that the fair value of its reporting units substantially exceeded their carrying values as of November 30, 2019, with the exception of the Institutional Asset Management reporting unit, which was less than its carrying value. In determining the fair value of this reporting unit, the Company utilized a discounted cash flow methodology based on the adjusted cash flows from operations. The discounted cash flow methodology began with the forecasted cash flows of the reporting unit and applied a discount rate of approximately 17%, which reflected the weighted average cost of capital adjusted for the risks inherent in the future cash flows. The forecast inherent in the valuation assumes a compound annual growth rate in revenues of 3%. As a result of the above analysis, the Company determined that the fair value of the Institutional Asset Management reporting unit was less than its carrying value as of November 30, 2019. The Company recorded a goodwill impairment charge of $833 in the Investment Management segment, which is included within Special Charges on the Consolidated Statement of Operations for the year ended December 31, 2019. This charge resulted in a decrease of $543 to Net Income Attributable to Evercore Inc. (after adjustments for noncontrolling interest and income taxes) for the year ended December 31, 2019. The Company entered into an agreement to sell the trust business of Evercore Casa de Bolsa, S.A. de C.V. ("ECB") (the "ECB Trust Business"), which is a part of its Investment Management segment. Completion of this transaction is expected to occur in 2020. As of December 31, 2019, the ECB Trust Business includes $475 of goodwill, representing an allocation of goodwill based on the relative fair value of the business being sold to the total fair value of the Institutional Asset Management reporting unit. In accordance with ASC 350, the Company performed an impairment assessment of the goodwill remaining in the Institutional Asset Management reporting unit following the classification of the ECB Trust Business as Held for Sale in December 2019. In determining the fair value of this reporting unit, the Company utilized a discounted cash flow methodology based on the adjusted cash flows from operations. The discounted cash flow methodology began with the forecasted cash flows of the reporting unit and applied a discount rate of approximately 17%, which reflected the weighted average cost of capital adjusted for the risks inherent in the future cash flows. The forecast inherent in the valuation assumes a compound annual growth rate in revenues of 3%. As a result of the above analysis, the Company determined that the fair value of the remaining business in the Institutional Asset Management reporting unit was less than its carrying value. Accordingly, the Company recorded a goodwill impairment charge of $2,088 in the Investment Management segment, which is included within Special Charges on the Consolidated Statement of Operations for the year ended December 31, 2019. This charge resulted in a decrease of $1,361 to Net Income Attributable to Evercore Inc. (after adjustments for noncontrolling interest and income taxes) for the year ended December 31, 2019. During the second quarter of 2017, in accordance with ASC 350 the Company performed an impairment assessment of the goodwill remaining in the Institutional Asset Management reporting unit following the classification of the Institutional Trust and Independent Fiduciary business of Evercore Trust Company, N.A. ("ETC") as Held for Sale. In determining the fair value of this reporting unit, the Company utilized both a market multiple approach and a discounted cash flow methodology based on the adjusted cash flows from operations. The market multiple approach included applying the average earnings multiples of comparable public companies, multiplied by the forecasted earnings of the reporting unit, to yield an estimate of fair value. As a result of the above analysis, the Company determined that the fair value of the remaining business in the Institutional Asset Management reporting unit was less than its carrying value. The Company adopted ASU 2017-04 during the second quarter of 2017. Accordingly, the Company recorded a goodwill impairment charge in the Investment Management segment of $7,107, which is included within Special Charges on the Consolidated Statement of Operations for the year ended December 31, 2017. This charge resulted in a decrease of $3,694 to Net Income Attributable to Evercore Inc. (after adjustments for noncontrolling interest and income taxes) for the year ended December 31, 2017.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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