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Goodwill and Other Intangible Assets | 12 Months Ended
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Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS The following table shows an analysis of goodwill and other intangible assets included in goodwill and other intangible assets on the Company’s consolidated balance sheets:
|  | Goodwill and other intangible assets |
|  | Goodwill |  | Other intangible assets |  | Total |
| Balance as of December 31, 2017 |  |  |  |  |  |
| Gross amount | $ | 199,889 |  |  | $ | 96,599 |  |  | $ | 296,488 |  |
| Accumulated impairment losses and amortization | (2,299 | ) |  | (51,044 | ) |  | (53,343 | ) |
|  | 197,590 |  |  | 45,555 |  |  | 243,145 |  |
| Amortization | — |  |  | (5,727 | ) |  | (5,727 | ) |
| Balance as of December 31, 2018 |  |  |  |  |  |
| Gross amount | 199,889 |  |  | 96,599 |  |  | 296,488 |  |
| Accumulated impairment losses and amortization | (2,299 | ) |  | (56,771 | ) |  | (59,070 | ) |
|  | 197,590 |  |  | 39,828 |  |  | 237,418 |  |
| Acquired during the year | 13,094 |  |  | 18,000 |  |  | 31,094 |  |
| Amortization | — |  |  | (6,286 | ) |  | (6,286 | ) |
| Balance as of December 31, 2019 |  |  |  |  |  |
| Gross amount | 212,983 |  |  | 114,599 |  |  | 327,582 |  |
| Accumulated impairment losses and amortization | (2,299 | ) |  | (63,057 | ) |  | (65,356 | ) |
|  | $ | 210,684 |  |  | $ | 51,542 |  |  | $ | 262,226 |  |
During the quarter ended March 31, 2019, the Company recognized goodwill of $13.1 million, based on foreign exchange rates on March 22, 2019, attributable to the excess of the purchase price over the fair value of the net assets acquired in the TMR Stock Purchase. In addition, the Company recognized identifiable finite lived intangible assets of $11.2 million and identifiable indefinite lived intangible assets of $6.8 million associated with TMR. Refer to “Note 3. Acquisition of Tokio Millennium Re” for additional information related to goodwill and other intangible assets associated with the acquisition of TMR. The following table shows an analysis of goodwill and other intangible assets included in investments in other ventures, under equity method on the Company’s consolidated balance sheets:
|  | Goodwill and other intangible assets included in investments in other ventures, under equity method |
|  | Goodwill |  | Other intangible assets |  | Total |
| Balance as of December 31, 2017 |  |  |  |  |  |
| Gross amount | $ | 12,318 |  |  | $ | 51,796 |  |  | $ | 64,114 |  |
| Accumulated impairment losses and amortization | (4,500 | ) |  | (42,880 | ) |  | (47,380 | ) |
|  | 7,818 |  |  | 8,916 |  |  | 16,734 |  |
| Acquired during the year | 2,780 |  |  | 11,108 |  |  | 13,888 |  |
| Amortization | — |  |  | (2,886 | ) |  | (2,886 | ) |
| Balance as of December 31, 2018 |  |  |  |  |  |
| Gross amount | 15,098 |  |  | 62,904 |  |  | 78,002 |  |
| Accumulated impairment losses and amortization | (4,500 | ) |  | (45,766 | ) |  | (50,266 | ) |
|  | 10,598 |  |  | 17,138 |  |  | 27,736 |  |
| Acquired during the year | — |  |  | 4 |  |  | 4 |  |
| Amortization | — |  |  | (2,816 | ) |  | (2,816 | ) |
| Balance as of December 31, 2019 |  |  |  |  |  |
| Gross amount | 15,098 |  |  | 62,908 |  |  | 78,006 |  |
| Accumulated impairment losses and amortization | (4,500 | ) |  | (48,582 | ) |  | (53,082 | ) |
|  | $ | 10,598 |  |  | $ | 14,326 |  |  | $ | 24,924 |  |
On March 23, 2018, the Company made an equity investment in TWFG Holding Company LLC (“TWFG”) and the transaction was accounted under the equity method of accounting. Total consideration paid was allocated to the Company’s proportionate share of the net assets of TWFG, other identifiable intangible assets and goodwill. In connection with the acquisition of TWFG, the Company recognized identifiable finite lived intangible assets of $2.0 million and identifiable indefinite lived intangible assets of $9.1 million. In addition, the Company recognized goodwill of $2.8 million. In accordance with the Company’s established accounting policy, the beginning of the fourth quarter was used as the date for performing the annual impairment test. The Company first assessed qualitative factors to determine whether it was necessary to perform a quantitative impairment test. Based on its qualitative assessment, the Company determined it was not more likely than not that the fair value of the goodwill and other intangible assets in question were less than their respective carrying amounts. The qualitative assessment included the following factors which the Company determined had not significantly deteriorated given specific facts and circumstances: macroeconomic conditions; industry and market conditions; costs factors; and overall financial performance. The Company also performed a quantitative analysis using a discounted cash flow model and concluded that the full amount of the goodwill and other intangible assets were not impaired. Other than the goodwill and other intangible assets acquired during the year as noted above and normal course amortization of intangible assets, in accordance with the Company’s established accounting policy, there were no adjustments to carried goodwill and other intangible assets during the year ended December 31, 2019. The gross carrying value and accumulated amortization by major category of other intangible assets included in goodwill and other intangible assets and investments in other ventures, under equity method on the Company’s consolidated balance sheets is shown below:
|  | Other intangible assets |
| At December 31, 2019 | Gross carrying value |  | Accumulated amortization and impairment losses |  | Total |
| Customer relationships and customer lists | $ | 108,651 |  |  | $ | (69,298 | ) |  | $ | 39,353 |  |
| Value of business acquired | 20,200 |  |  | (20,200 | ) |  | — |  |
| Software | 12,230 |  |  | (12,230 | ) |  | — |  |
| Licenses | 26,186 |  |  | — |  |  | 26,186 |  |
| Patents and intellectual property | 4,500 |  |  | (4,500 | ) |  | — |  |
| Covenants not-to-compete | 4,030 |  |  | (4,030 | ) |  | — |  |
| Trademarks and trade names | 1,710 |  |  | (1,381 | ) |  | 329 |  |
|  | $ | 177,507 |  |  | $ | (111,639 | ) |  | $ | 65,868 |  |
|  | Other intangible assets |
| At December 31, 2018 | Gross carrying value |  | Accumulated amortization and impairment losses |  | Total |
| Customer relationships and customer lists | $ | 97,419 |  |  | $ | (60,221 | ) |  | $ | 37,198 |  |
| Value of business acquired | 20,200 |  |  | (20,200 | ) |  | — |  |
| Software | 12,230 |  |  | (12,230 | ) |  | — |  |
| Licenses | 19,414 |  |  | — |  |  | 19,414 |  |
| Patents and intellectual property | 4,500 |  |  | (4,500 | ) |  | — |  |
| Covenants not-to-compete | 4,030 |  |  | (4,030 | ) |  | — |  |
| Trademarks and trade names | 1,710 |  |  | (1,356 | ) |  | 354 |  |
|  | $ | 159,503 |  |  | $ | (102,537 | ) |  | $ | 56,966 |  |
The remaining useful life of intangible assets with finite lives ranges from 0.5 to 14.2 years, with a weighted-average amortization period of 7.0 years. Expected amortization of the other intangible assets, including other intangible assets recorded in investments in other ventures, under equity method, is shown below:
|  | Other intangibles |  | Other intangible assets included in investments in other ventures, under equity method |  | Total |
| 2020 | $ | 6,317 |  |  | $ | 1,955 |  |  | $ | 8,272 |  |
| 2021 | 5,990 |  |  | 1,095 |  |  | 7,085 |  |
| 2022 | 5,602 |  |  | 1,095 |  |  | 6,697 |  |
| 2023 | 5,173 |  |  | 631 |  |  | 5,804 |  |
| 2024 | 4,716 |  |  | 194 |  |  | 4,910 |  |
| 2024 and thereafter | 6,705 |  |  | 209 |  |  | 6,914 |  |
| Total remaining amortization expense | 34,503 |  |  | 5,179 |  |  | 39,682 |  |
| Indefinite lived | 17,039 |  |  | 9,147 |  |  | 26,186 |  |
| Total | $ | 51,542 |  |  | $ | 14,326 |  |  | $ | 65,868 |  |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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